Conversion of a gas boiler to a biomass boiler

Location: Eastern part of Ternopil
Programme: DemoUkrainaDH
Project status: Implementation
Investment: 770,000 EUR
Payback period: 1.9 years
Reduced gas consumption: 2,210,000 m³/year


4,430 tonnes/year

Ternopil is located 367 km to the southwest from the capital of Ukraine and home to 217,000 people. It is an important administrative and cultural centre with an economy characterized by diversified industry including food, textile, pulp and paper and electronic equipment.

The Municipal Company “TernopilMiskTeploKomunEnergo” provides heat to approximately 85% of the city. This utility operates 40 boiler houses with installed capacity 650 Gcal/h. Almost all the boiler houses use natural gas for the generation of heat.

Ternopil Demonstration Project – overview

The proposed project involves the conversion of an existing gas boiler located in the boiler house at 14a Kupchinskogo street into using biofuels. Furthermore, IHSs are installed in all the buildings connected to this boiler house. These investments make it possible to operate the district heating system as a fully demand-driven and modern system.

The project proposed by the company is interesting from a demonstration point of view as it involves the conversion of an existing gas boiler into a pellets boiler by installing new burners. This is a new technology in Ukraine and if it proves successful it could potentially have a great impact on the future use of biofuels in Ukrainian district heating systems as it introduces a cost-efficient way to convert existing gas boilers.

The introduction of IHSs in the area will increase the quality of heat delivery to the connected buildings by enabling a heat supply in relation to actual heat demand. Besides, in the project area, the installation of IHSs in all the buildings that are currently supplied with domestic hot water will make it possible to convert the existing pipe system and thus reduce heat losses, water losses and maintenance costs for the present domestic hot water pipelines.

Ternopil Demonstration Project – details

The project area is located in the eastern part of the city of Ternopil and includes heating networks supplied from the boiler house at Kupchinskogo street 14а. This boiler house primarily supplies space heating to the connected buildings and also supplies to some consumers in residential buildings with domestic hot water. It supplies space heating, domestic hot water and steam to a total of 47 customers being 10 from residential buildings. The number of residents currently supplied with space heating in these buildings is approximately 2,300 whereof about 2,240 are also supplied with DHW. Apart from the residential buildings an additional 27 budget and commercial customers are supplied with space heating and an additional 7 contracts are related to domestic hot water and 3 contracts refer to supply of steam. It is estimated that annually an additional 3,600 inhabitants will benefit from the improvements in their district heating system.

Figure 1: Map of Ternopil with indication of the Project area

Specifics of the Ternopil Project include:

  1. Conversion of a boiler in boiler house at 14a Kupchinskogo street to biomass (4.5MW).
  2. Individual Heat Substations – Introduction of 25 IHSs.

The proposed investment is EUR 770,000 EUR with a simple payback time of 1.9 years. The proposed financing plan is as follows:

  • Total loan – EUR 355,000 (46%)
  • Total grant – EUR 300,000 (39%)
  • Total Ternopil local contribution – EUR 115,000 (15%)

Once implemented, the project is expected to benefit the local community by:

  • Saving 1,120 MWh heat per year (5% saving from the baseline*)
  • Saving 2,210,000 m³ gas per year (95% saving from the baseline*)
  • Saving 6,240 m³ water per year (80% saving from the baseline*)
  • Saving 4,430 tonnes CO2 per year (99% saving from the baseline*)

*Baseline is estimated for the networks in question only (not the entirety of the district heating in Ternopil) for the case of no-project activity.

Current status

The project is currently in the implementation stage. Please check our procurement page for the announcement of project procurements.


Photo credit: Anton Marchevskyi