Chapter 4: Lithuania

(continued)



4.5 Demand For Environmental Technologies

Demand of Environmental Technologies - Overview

Generally speaking, the demand for all kinds of environmental technologies in Lithuania is high. Technologies related to air quality, wastewater, and waste and energy were given to be high in demand while water related technologies were accorded only moderate demand. The supply of environmental technologies in the majority of sectors was deemed to be satisfactory but in some cases was thought to be inadequate.

In the air sector, the greatest demand for environmental technologies was indicated for emission abatement/cleaner production technologies, followed by instrumentation and process control/software equipment. Demand is expected to grow for air sampling/laboratory analysis and air pollution control/flue gas purification equipment.

The demand for water related technologies, specifically for potable water equipment, was moderate. The highest demand was outlined for treatment process technologies, followed by those in the field of inspection and reconditioning of existing supply networks. Demand is expected to rise for monitoring and instrumentation/process control/software and monitoring/sampling/laboratory analysis equipment.

In the wastewater management sector, demand is high. The technologies most in need are pollution prevention/waste minimization, and instrumentation/process control/software, equipment for the inspection and reconditioning of existing collection networks, and physical, chemical, and biological treatment process technologies. Demand is expected to rise in the future for facility operation equipment and sludge treatment and disposal technologies, as well as for quality restoration and decontamination equipment.

Demand for technologies in the waste management sector in Lithuania is high. Technologies for pollution prevention/ waste minimization and waste collection, transportation and storage equipment are highest in demand, followed by site remediation/cleanup of contaminated land and landfill disposal technologies. Radioactive waste management equipment is not a great priority in Lithuania. The technologies expected to increase in demand include recycling/resource recovery and site monitoring equipment.

The energy sector ranked high in terms of overall demand. The technologies needed the most by both the power generation and other industrial sectors include new/efficient energy and heat generation systems; technologies for the retrofitting/rehabilitation of existing systems; and heat recovery and energy savings. Increased demand is anticipated for instrumentation and process management and control equipment.

Technologies in Demand by Sector

The data obtained from the survey is presented in Tables 4.17-4.21. The following scale was used for ranking demand: 5 - very high demand, 4 - high demand, 3 - moderate demand, 2 - low demand, 1 - no demand, blank - no opinion. The figures show the average of the responses, while the numbers in parentheses represent the number of responses.

It is important to note that in many cases results were generalized in order to avoid unilateral interpretation of demand. For example, where municipalities expressed high demand in a majority of issues while industrial respondents expressed interest in specialist areas.

Air

The demand for environmental technologies in the air sector, as illustrated in Table 4.17, reveals emission abatement/cleaner production technologies as those most in demand. This result is obtained both within industrial and municipal sectors and is based on the fact that these technologies are not extensively used in the Lithuanian market in comparison with other sectors. Therefore, demand figures indicate a growth in importance for related technologies.

TABLE 4.17: DEMAND FOR ENVIRONMENTAL TECHNOLOGIES - AIR
Air sampling/laboratory analysis 3.40 (57)
Continuous-basis monitoring 3.07 (53)
Air pollution control/flue gas purification equipment (e.g. filters, scrubbers) 3.32 (56)
Gas detection/warning devices 2.37 (51)
Emission abatement/cleaner production (e.g. low emission burners) 3.77 (58)
Instrumentation and process control/software 3.48 (55)
Technologies in high demand: #1 emission abatement/cleaner production; #2 instrumentation and process control/software; #3 air sampling/laboratory analysis; #4 air pollution control/flue gas purification equipment

Instrumentation and process control/software development equipment is also in demand among industrial companies. This is due to the fact that more than 60 percent of the technologies in use in the industrial market are old-fashioned (i.e. implemented before 1980). The modernization of these technologies will require significant time and financial resources.

Air sampling and laboratory analysis equipment is also in demand, because industrial companies legally have to perform air sampling and analyses several times per year. In many cases companies do not operate in their own laboratories and do not possess the necessary equipment and therefore invite independent authorities to fulfill these tasks. Companies such as the chemical plant Achema or the thermal electric power station in Kaunas require continuous air monitoring and have their own air sampling/laboratory analysis.

Air pollution control/flue gas purification remains a critical problem for industry and is reflected in the demand for filters, scrubbers and other gas purification equipment, especially units for the reduction of solid particle emissions to air.

A comparison of supply and demand for environmental technologies in the air sector shows that in general supply is greater than demand. Technologies relating to air exist but mostly in the form of machinery.

Water

The demand for water related technologies was found to be moderate. Within the potable water technologies sector, treatment processes and equipment for the inspection and reconditioning of existing supply networks were in demand (see Table 4.18). Technologies in increasing demand included instrumentation/process control/software, and monitoring/ sampling/laboratory analysis equipment.

TABLE 4.18: DEMAND FOR ENVIRONMENTAL TECHNOLOGIES - WATER
Monitoring 3.20 (43)
Sampling/laboratory analysis 3.17 (46)
Construction of supply networks 3.00 (44)
Inspection and reconditioning of existing supply networks 3.33 (45)
Treatment processes 3.45 (50)
Advanced (tertiary) treatment processes (e.g. UV/ozonation, activated carbon) 2.75 (44)
Water recycling and reuse 2.80 (39)
Instrumentation/process control/software 2.81 (27)
Facility operation 3.20 (42)
Technologies in high demand: #1 treatment processes; #2 inspection and reconditioning of existing supply networks
Technologies where demand is expected to rise: #3 instrumentation/process control/software; #4 monitoring/sampling/laboratory analysis

Due to the fact that potable water supply is the responsibility of municipalities, the respective demand for related technologies is expressed mainly by municipalities. However, some industrial companies' operating processes also use potable water (e.g. the food industry); therefore, they also mentioned a demand for certain technologies. Otherwise, companies indicated relatively low demand for potable water technologies, with the exception of treatment processes and equipment for the inspection and reconditioning of existing supply and collection networks.

In terms of equipment supply within the potable water sector, equipment for the construction of supply networks, inspection and reconditioning of existing supply networks, research and development in environmental technologies, instrumentation/process control/software is readily available. Therefore, the demand for expertise driven and consultative services can not met by local providers. The availability of potable water-related technologies is thus concentrated in the construction and instrumentation of treatment facilities.

Wastewater

Demand for wastewater related technologies was ranked as follows: pollution prevention/waste minimization equipment, followed by instrumentation/process control/software, and inspection and reconditioning of existing collection systems, followed by physical, chemical and biological treatment processes technologies (see Table 4.19).

TABLE 4.19: DEMAND FOR ENVIRONMENTAL TECHNOLOGIES - WASTEWATER
Environmental Technology Municipal Wastewater Industrial Wastewater

Monitoring 2.97 (34) 3.20 (47)
Sampling/laboratory analysis 3.00 (39) 3.07 (52)
Construction of collection networks 2.97 (38) 2.65 (49)
Inspection and reconditioning of existing collection networks 3.30 (38) 3.32 (46)
Physical, chemical and biological treatment processes 3.16 (42) 3.44 (50)
Advanced treatment processes (e.g. nitrogen and phosphate removal, etc.) 3.02 (37) 2.87 (47)
Sludge treatment and disposal 3.19 (41) 3.13 (50)
Water recycling and reuse 2.44 (34) 3.17 (51)
Facility operation 3.33 (39) 3.33 (53)
Pollution prevention/waste minimization 3.43 (37) 3.88 (53)
Spill control and containment 2.50 (35) 2.94 (50)
Quality restoration and decontamination 3.00 (28) 3.31 (38)
Instrumentation/process control/software 3.21 (38) 3.85 (50)
Technologies in high demand: #1 pollution prevention/waste minimization; #2 instrumentation/process control/software; #3 inspection and reconditioning of existing collection networks; #4 physical, chemical, and biological treatment processes
Technologies where demand is expected to rise: #5 facility operation; #6 sludge treatment and disposal; #7 quality restoration and decontamination

Poor industrial wastewater management is one of the most critical environmental problems in Lithuania. Companies require technological options for minimizing industrial wastewater volumes and for decontaminating industrial wastewater. It is in the interest of industrial companies to adopt pollution prevention and waste minimization techniques.

Technologies where demand is expected to rise included equipment for facility operation, sludge treatment and disposal and quality restoration and decontamination technologies.

The strongest supply in terms of wastewater technologies includes equipment for pollution prevention/waste minimization and facility operation. Therefore, supply meets most of the facility construction demand but does not provide for monitoring technologies and instrumentation/process control/software equipment.

Waste Management

Generally speaking, waste management technologies are relatively high in demand. The highest demand for waste management equipment exists in the areas of municipal, industrial and hazardous waste management. Radioactive waste management is not a pressing issue in Lithuania at present (see Table 4.20). Site remediation and clean-up of contaminated land is an area seeing growing demand.

TABLE 4.20: DEMAND FOR ENVIRONMENTAL TECHNOLOGIES - WASTE MANAGEMENT
  Municipal Waste Industrial Waste Hazardous Waste Radioactive Waste

Waste collection/transportation and storage 3.28 (38) 3.45 (55) 3.75 (33) 3.00 (9)
Sample analysis/waste characterization 2.33 (33) 2.58 (49) 2.93 (29) 2.66 (6)
Site monitoring 2.40 (32) 2.67 (43) 3.12 (24) 3.40 (5)
Landfill disposal 2.92 (37) 3.10 (51) 3.41 (24) 2.50 (6)
Incineration 2.65 (29) 2.70 (43) 3.15 (19) -
Composting/biomass conversion 3.00 (30) 2.11 (34) 1.80 (10) -
Pollution prevention/waste minimization 3.18 (32) 3.67 (49) 4.00 (26) 3.60 (5)
Recycling/resource recovery 2.84 (32) 3.11 (52) 3.10 (21) -
Spillage control/decontamination 2.75 (24) 3.02 (40) 3.05 (19) 3.00 (5)
Site remediation/clean-up of contaminated land 2.89 (19) 2.88 (36) 3.52 (19) -
Technologies in high demand: #1 pollution prevention/waste minimization; #2 waste collection/transportation and storage; #3 site remediation/clean-up of contaminated land (hazardous waste); #4 landfill disposal (hazardous waste)
Technologies where demand is expected to rise: #5 recycling/resource recovery; #6 site monitoring (hazardous waste)

The municipal waste management sector indicates high demand for waste collection/transportation and storage equipment, and pollution prevention/waste minimization and landfill disposal equipment. Management of old landfills is another problem that needs to be addressed in Lithuania.

Industrial companies have indicated high demand in pollution prevention/waste minimization and waste collection /transportation and storage equipment followed by recycling/resource recovery technologies.

The demand for hazardous waste technologies focuses on the same technology areas as industrial waste, except that there also exists demand for site remediation and for the clean-up of contaminated land.

The Lithuanian Government is expected to issue waste management regulations in 1998 that will determine the main requirements with regard to the above-mentioned problems. However, municipalities are currently facing serious problems in the construction of new landfills due to insufficient financial resources and the lack of government support, a lack of technical knowledge and expertise, and unclear legal requirements.

Medical and organic waste management also results in major problems that were emphasized at various waste management conferences organized by the Ministry of Environmental Protection in Vilnius and Klaipeda during autumn 1997.

Radioactive waste management is improving. The Ignalina nuclear power station is the main source of radioactive waste. Construction of a radioactive waste disposal site is under way and is a cooperative project with the Canadian company AECL.

As waste management is a relatively new issue in Lithuania, a range of technologies are in demand. Hazardous waste, because of its severity, requires both expertise and equipment. Waste therefore is one of the best sectors for investors to concentrate on, especially after the government announces the new waste management regulations.

Energy

Overall, the demand for energy related environmental technologies is high in relation to other sectors. Those technologies most in demand in the power generation sectors and in other industrial sectors are presented in Table 4.21.

TABLE 4.21: DEMAND FOR ENVIRONMENTAL TECHNOLOGIES - ENERGY
  Power Generation Other Industrial Sectors

New/efficient energy and heat generation systems 3.89 (48) 3.75 (37)
Retrofitting/rehabilitation of existing systems 3.63 (41) 3.63 (46)
Process management and control (e.g. boiler tune-ups, fuel efficiency optimization) 3.26 (49) 3.30 (53)
Heat recovery and energy savings (e.g. insulation) 3.37 (45) 3.62 (53)
Alternative/renewable energy systems (e.g. geothermal, biomass, solar) 2.43 (44) 2.40 (45)
Alternative (non-CFC) refrigerants 2.92 (27) 2.54 (29)
Instrumentation 3.47 (42) 3.53 (45)
Technologies in high demand: #1 new/efficient energy and heat generation systems; #2 retrofitting/rehabilitation of existing systems; #3 heat recovery and energy savings
Technologies where demand is expected to rise: #4 instrumentation; #5 process management and control

The greatest demand was outlined for new/efficient energy and heat generation systems (indicated by industrial companies and municipalities) and for the retrofitting/rehabilitation of existing systems (indicated by environmental businesses). This difference could be explained by the fact that industry and municipalities would like to switch to more effective forms of energy generation, while the current limited financial resources do not allow for implementation. The rehabilitation of existing systems is therefore today's alternative, with lower investment required and acceptable results. Environmental businesses and municipalities show high demand for heat recovery and energy saving technologies for use in other industrial sectors. Industrial companies show high demand for new/efficient energy and heat generation systems. Environmental businesses indicated high demand for instrumentation equipment, which indicates the lack of control and measuring devices in use, especially in industry.

The lowest demand in the energy sector is to be found in two groups: alternative (non-CFC) refrigerants and alternative/renewable energy systems. Environmental businesses and industry stated the low interest in these technologies was due to Lithuanian climate and geology. Solar and geothermal energy have no real application in Lithuania, with the exception of a small area (Klaipeda region) near the Baltic Sea, which can use geothermal energy. The low interest in alternative (non CFC) refrigerants is because cooling systems are mainly used by the food industry.

The general demand for other environmental technologies is higher than average because it has been influenced by the large interest in the energy sector (a critical issue in Lithuania). The levels of interest from municipalities is higher than that from other respondents.

Within the next few years, the energy sector will remain active. Energy saving technology, and therefore the rehabilitation of existing systems, will dominate, particularly as prices for energy continue to rise. Another growth sector for technologies are the new/efficient energy and heat generation systems, although this tends to depend largely on the general financial status of industry.

Major Environmental Technology End-Users

Table 4.22 presents the main end-users of environmental technologies as identified by respondents.

TABLE 4.22: MAJOR END-USERS OF ENVIRONMENTAL TECHNOLOGIES BY SECTOR
Category Major End-users by Group

Air Power plants
Heat generating stations
Industrial companies
Private companies
Mobile vehicles
Water and Wastewater Water supply companies
Water treatment plants
Environmental Protection Department of the City Municipality
Local residents
Industrial companies
Private companies
Agriculture
Hospitals
Waste Municipal service operators
Large waste producers
Municipalities
Cleaning services companies
Landfill operators
Waste processing companies
Energy Power and heat generation plants
Industrial companies
Municipalities
Municipal service operators

Overall, the majority of end-users are municipalities, although industry makes up a significant share of environmental technology purchasers. Presented below is an analysis of the major end-users in each environmental sector, based on respondents' opinions. It is important to note that the ranking of end-users may vary among sectors depending on the value of investments made or the number of projects undertaken. Such research was outside the scope of this project.

Air

Operators of power plants and heat generation stations are the major end-users of air pollution control technologies. This sector is mainly controlled by the state, even in cases where a plant or station is a joint-stock company with some private stockholders and a majority share controlled by the state or by municipalities. It is important to mention that since all regulations and decisions are adopted by the state or by municipal authorities, the demand for environmental air technologies depends almost entirely on the decisionmaking.

The second major group of end-users in this sector are industrial companies, including chemical, textile, pharmaceutical and glass manufacturers. With regard to mobile sources of air pollution (vehicles), demand among end-users tends to depend on the economic changes taking place in Lithuania. There is an increasing tendency to switch from old vehicles manufactured with lower air pollution control requirements to newer vehicles produced according to the European standards. State authorities control air pollution by issuing restrictions for carbon dioxide and lead emissions, and this creates a basis for growing demand of air technologies in the near future.

Water and Wastewater

The major end-users of environmental technologies in the potable water sector are water supply companies, water treatment/purification plants and municipalities. A program has been adopted by the state environmental authorities that focuses on the modernization and construction of water purification plants across Lithuania. The supply of equipment in this sector is mostly controlled by the Scandinavian countries (especially Denmark), who are also the main creditors of this program.

Housing communities and individual residences located in areas without a centralized water supply are a growing category of end-users. Because Lithuania contains geological zones with high concentrations of iron or other nonorganic materials in groundwaters, inhabitants of these areas are also potential buyers of iron-removing and other water filtration/purification technologies.

Industrial companies (food, chemicals and pharmaceuticals) consume potable water as part of their on-site processes, and the decreasing quality of water and the increasing environmental and technological requirements create a growing demand for water purification technologies.

Within the wastewater sector, the major end-users of environmental technologies are water supply companies, water treatment plants and municipal services operators. This category is also covered by the above-mentioned program, with new wastewater treatment plants being built in Klaipeda, Kaunas, Siauliai, Vilnius and other major cities.

Industrial companies are subject to targeted regulations and restrictions and in the majority of cases are modifying their internal wastewater control systems (or implementing new wastewater technologies).

Individual households are not significant end-users of wastewater treatment equipment; however, demand is estimated to grow in the future.

Waste

Municipalities manage approximately 800 landfill sites in Lithuania and are the major end-users of landfill disposal and waste collection/transportation technologies. Waste management maintains the highest priority in Lithuania's environmental strategy, with high levels of investment for improving the management of landfills expected in the near future. Metal finishing companies, tanneries, the chemical industry and the Siauliai region's hazardous waste site could be mentioned as a specific group of end-users for hazardous waste handling and management technologies. Technologies for site remediation and the clean-up of contaminated land are in high demand among companies concerned with oil products (processing, mining, and sales), particularly those in the energy sector.

Energy

Energy related environmental technology suppliers have a wide range of end-users. The list, in order of priority, consists of power and heat generation plants, the chemical industry, the textile and food industries, and other industrial companies. Municipalities are also significant end-users in this sector because they tend to operate power generation facilities (usually for district heating) and energy supply companies.

Because energy prices are rising, interest for environmental technologies in the energy sector will also probably rise.


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