Chapter 2: Estonia

(continued)



2.5 Demand for Environmental Technologies

Demand for Environmental Technologies - Overview

The demand for environmental technologies in Estonia was found to be between moderate and high. Technologies related to wastewater and energy were ranked as the most in demand, followed by water supply, waste management, and air.

Within the air sector the demand for air pollution control technologies was ranked moderate. The highest demand among air technologies was identified for emission abatement/cleaner production equipment. Growing demand is expected for instrumentation and process control/software, air sampling/laboratory analysis and air pollution control/flue gas purification equipment.

In the water sector, demand was generally moderate with the highest demand being indicated for treatment processes. Demand is expected to grow, however, in the area of water recycling and reuse; instrumentation/process control/software and construction of supply networks.

Among the technologies available for wastewater treatment, the highest demand in the field of municipal wastewater was for spill control and containment, physical, chemical and biological treatment processes and inspection and reconditioning of existing supply networks. Demand is also expected to increase for municipal technologies in the area of pollution prevention/waste minimization.

With regard to industrial wastewater technologies, demand is greatest for pollution prevention/waste minimization, physical, chemical and biological treatment processes and advanced treatment processes. Demand is expected to increase in the areas of spill control and general consulting.

Within the waste sector, responses were divided between municipal, industrial, hazardous, and radioactive wastes, although it is possible to draw general conclusions about the general needs for technologies in this sector. By far, the greatest demand was noted for waste collection/transportation and storage, followed by pollution prevention/waste minimization technologies. Demand is expected to rise for sample analysis/waste characterization and recycling/resource recovery.

Finally, the energy sector received high demand for technologies relating to new/efficient energy and heating systems and retrofitting/rehabilitation of existing systems, with increased demand expected for process management and control in the power generation sector. Demand is also expected to rise for heat recovery and energy saving technologies in the future.

Technologies in demand by sector

Tables 2.15-2.19 present a summary of the responses received from the interviewed experts. In some cases, respondents answered the questions within their own field of activity and refused to comment on those questions with which they were not familiar. Some of the questions were answered by a large number of respondents, but still resulted in low results (indicating moderate or low demand). However, given the overall assignment of responses, the answer selected by many respondents may still be regarded as an area in demand.

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.

Figures in cells show the average score while those in brackets represent the number of responses.

Air

TABLE 2.15: DEMAND FOR ENVIRONMENTAL TECHNOLOGIES - AIR
Air sampling/laboratory analysis 2.83 (18)
Continuous-basis monitoring 2.46 (17)
Air pollution control/flue gas purification equipment (e.g. filters, scrubbers) 2.76 (13)
Gas detection/warning devices 1.75 (12)
Emission abatement/cleaner production (e.g. low emission burners) 3.25 (16)
Instrumentation and process control/software 2.86 (15)
Technologies in high demand: #1 emission abatement/cleaner production
Technologies where demand is expected to rise: #2 instrumentation and process control/software; #3 air sampling/laboratory analysis; #4 air pollution control/flue gas purification equipment

Air quality has a significant impact on human health and the state of the environment, and those technologies aimed at reducing gaseous emissions currently have a significant place in the market, particularly since Estonia is cited as one of the top pollutors of air per capita in Europe. Transport is one of the greatest sources of air pollution, followed by power plant emissions. As a result, a number of the National Environmental Strategy (NES) priorities relate to the reduction of air pollution, and this combined with the fact that Estonia is a party to the U.N. Framework Convention on Climate Change means it must therefore decrease its emissions. This indicates that demand for air pollution reduction technologies will at least remain the same or increase in coming years.

Air pollution reduction technologies come in the form of scrubbers, filters, and large sophisticated systems aimed at reducing the emission of solid particles, sulfur dioxide, carbon monoxide etc. The specific demand for environmental technologies related to air in Estonia was moderate. Table 2.15 outlines the demand as indicated by the survey respondents. The highest demand was indicated for emission abatement and cleaner production technologies; however, demand is expected to rise in the areas of instrumentation and process control/software, followed by air sampling and laboratory analysis and air pollution control/flue gas purification equipment.

Water supply

Table 2.16 displays the responses to the anticipated demand for water related technologies. In comparison to other sectors, the number of answers for water supply are relatively high. This indicates the general consensus that water related problems are of high priority in Estonia.

TABLE 2.16: DEMAND FOR ENVIRONMENTAL TECHNOLOGIES - WATER
Monitoring 2.54 (20)
Sampling/laboratory analysis 2.63 (25)
Construction of supply networks 2.80 (21)
Inspection and reconditioning of existing supply networks 2.76 (17)
Treatment processes 3.24 (28)
Advanced (tertiary) treatment processes (e.g. UV/ozonation, activated carbon) 2.47 (21)
Water recycling and reuse 2.99 (23)
Instrumentation/process control/software 2.84 (26)
Facility operation 2.61 (22)
Technologies in high demand: #1 treatment processes
Technologies where demand is expected to rise: #2 water recycling and reuse; #3 instrumentation/process control/software; #4 construction of supply networks

Overall, the demand for water technologies was, however, moderate. The highest demand was indicated for treatment processes. Technologies in increasing demand include water recycling and reuse equipment, followed by instrumentation/process control/software and equipment for the construction of supply networks.

Although, the protection of groundwater and surface water bodies is a high priority area under the National Environmental Strategy, many respondents said the current supply of environmental technologies and services meets demand in this sector. Therefore, market opportunities in other sectors such as waste management and energy offer more potential.

Wastewater

Generally speaking, the demand for wastewater technologies in Estonia is high. The demand between municipal and industrial wastewater technologies does not differ greatly, as Table 2.17 illustrates.

TABLE 2.17: DEMAND FOR ENVIRONMENTAL TECHNOLOGIES - WASTEWATER
  Municipal Wastewater Industrial Wastewater

Monitoring 2.30 (13) 2.79 (15)
Sampling/laboratory analysis 2.61 (18) 2.68 (16)
Construction of collection networks 2.76 (15) 2.61 (18)
Inspection and reconditioning of existing collection networks 3.05 (18) 2.93 (17)
Physical, chemical and biological treatment processes 3.03 (24) 3.71 (25)
Advanced treatment processes (e.g. nitrogen and phosphate removal, etc.) 2.44 (20) 3.23 (17)
Sludge treatment and disposal 2.15 (19) 2.99 (22)
Water recycling and reuse 1.79 (15) 2.77 (18)
Facility operation 1.86 (15) 2.39 (15)
Pollution prevention/waste minimization 2.87 (16) 3.77 (18)
Spill control and containment 3.50 (16) 3.17 (17)
Quality restoration and decontamination 2.33 (12) 2.53 (13)
Instrumentation/process control/software 2.67 (19) 3.14 (21)
Technologies in high demand: #1 pollution prevention/waste minimization (industrial wastewater); #2 spill control and containment; #3 physical, chemical, and biological treatment processes; #4 advanced treatment process (industrial wastewater)
Technologies where demand is expected to rise: #5 inspection and reconditioning of existing collection networks; #6 instrumentation/process control/software

Municipalities indicated the greatest demand is for spill control and containment equipment followed by physical, chemical and biological treatment processes. Increased demand for municipal wastewater technologies is expected for the inspection and reconditioning of existing collection networks and pollution prevention/waste minimization.

As for industrial wastewater, the greatest demand was indicated for pollution prevention/waste minimization and physical, chemical and biological treatment processes. Growth for industrial wastewater technologies is expected in advanced treatment processes and spill control and containment. Industrial companies are in a better position to treat their wastewater as the amount received is much less than that of municipalities. In addition, they are often in a better financial situation to direct the necessary resources to ensure proper discharge. Industries also face penalties and fines for improper discharge.

Municipalities, on the other hand, are forced to deal with inadequate wastewater treatment facilities, when they have any at all. Therefore, they must first address the issues of collection and containment before they can begin to concentrate on the actual treatment of wastewater. In the future, it will be the goal of most municipalities to reduce wastewater accumulation and prevent pollution.

Waste Management

Table 2.18 outlines the levels of demand for waste management technologies broken into municipal, industrial, hazardous and radioactive waste sectors. Overall, the demand for waste-related technologies was moderate. Except for radioactive waste, the greatest demand was for waste collection/transportation and storage followed by pollution prevention and waste minimization. This demand ranking illustrates the fact that waste management is still in a nascent phase in Estonia.

TABLE 2.18: DEMAND FOR ENVIRONMENTAL TECHNOLOGIES - WASTE
  Municipal Waste Industrial Waste Hazardous Waste Radioactive Waste

Waste collection/transportation and storage 3.17 (17) 3.52 (17) 3.12 (15) 1.66 (6)
Sample analysis/waste characterization 1.92 (13) 2.50 (12) 2.81 (11) 1.66 (6)
Site monitoring 1.92 (14) 2.28 (14) 2.16 (12) 1.87 (8)
Landfill disposal 1.72 (11) 2.41 (12) 2.08 (12) 1.50 (6)
Incineration 1.66 (12) 2.07 (13) 1.72 (11) -
Composting/biomass conversion 2.49 (16) 1.61 (13) 1.26 (11) -
Pollution prevention/waste minimization 3.00 (14) 3.14 (14) 3.08 (12) 1.66 (6)
Recycling/resource recovery 2.06 (14) 2.53 (13) 2.74 (12) -
Spillage control/decontamination 2.22 (12) 2.26 (11) 2.00 (10) 1.16 (6)
Site remediation/cleanup of contaminated land 2.22 (14) 2.30 (11) 2.50 (12) -
Technologies in high demand: #1 waste collection/transportation and storage; #2 pollution prevention/waste minimization
Technologies where demand is expected to rise: #3 sample analysis/waste characterization (industrial and hazardous waste); #4 recycling and resource recovery

Areas of future demand include sample analysis/waste characterization and recycling/resource recovery. Of interest is the fact that very little demand was indicated for landfill disposal technologies while Estonian environmental experts mentioned that waste management was the second biggest problem in Estonia owing to the lack of modern, environmentally sound landfills.

In the researcher's opinion, the demand for waste-related technologies is spread fairly evenly across municipal, industrial and hazardous waste, with excellent opportunities existing in each. Radioactive waste management was hardly regarded as an issue by respondents as it only applies to a select few companies. The greatest demand for radioactive waste technologies is in site monitoring. Although the radioactive waste landfill at Sillamae is described as an issue of international concern, the whole field of radioactive waste does not account for a major portion of the waste management sector.

As fees and fines for collection, transportation and disposal of waste continue to climb and enforcement of legislation tightens, enterprises and municipalities should become more receptive to innovative technologies for waste minimization and pollution prevention.

Energy

Overall, demand for energy-related environmental technologies was moderate to high in Estonia as illustrated in Table 2.19. Demand in the power generation sector was high for new/efficient energy and heat generation systems as well as for the retrofitting/rehabilitation of existing systems. Increased demand is expected in the future for process management and control and heat recovery and energy saving technologies. As for other industrial sectors, they pointed to demand for process management and control technologies followed by the retrofitting/rehabilitation of existing systems. Technologies where demand is expected to grow in other industrial sectors included heat recovery and energy saving technologies. Demand for other technologies was significantly lower.

TABLE 2.19: DEMAND FOR ENVIRONMENTAL TECHNOLOGIES - ENERGY
  Energy and Power Generation Other Industrial Sectors

New/efficient energy and heat generation systems 3.47 (17) 2.09 (10)
Retrofitting/rehabilitation of existing systems 3.23 (17) 2.63 (11)
Process management and control (e.g. boiler tune-ups, fuel efficiency optimization) 3.18 (16) 2.72 (11)
Heat recovery and energy savings (e.g. insulation) 3.12 (15) 2.53 (13)
Alternative/renewable energy systems (e.g. geothermal, biomass, solar) 1.81 (11) 1.00 (9)
Alternative (non-CFC) refrigerants 1.50 (6) 2.09 (11)
Instrumentation 2.49 (14) 2.07 (13)
Technologies in high demand: #1 new/efficient energy and heat generation systems (energy and power generation); #2 retrofitting/rehabilitation of existing systems; #3 process management and control (energy and power generation)
Technologies where demand is expected to rise: #4 heat recovery and energy savings; #5 process management and control (other industrial sectors)

Both end-users and technology providers indicated strong demand in the energy sector, indicating that the current technology supply is inefficient and therefore, with the rehabilitation of old energy systems, demand will rise. Alternative/renewable energy systems are not in high demand, although demand is expected to rise in the future as current systems become more efficient and fees for energy use increase.

Major Environmental Technology End-Users

Table 2.20 presents the main environmental technology end-users as identified by the survey respondents. By and large, the majority of end-users are municipalities. Industrial companies form the second largest group of end-users of environmental technologies. Presented below is an analysis of the major end-users in each environmental sector in Estonia. It is important to note that the ranking of end-users may vary depending on the value of investments or the number of projects considered. Such research was outside of the scope of this project.

TABLE 2.20: ENVIRONMENTAL TECHNOLOGY END-USERS
Category End-users by sector

Air Mining industry, transport, state research institutes, state environmental inspectorates
Water and Wastewater Municipalities, power stations, chemical industry, food industry, agriculture
Waste Municipalities, oil-shale industry, cement manufacturing industry, construction industry
Energy Power generation, manufacturing, heavy industry, pulp and paper industry

The major end-users of technologies for air pollution control are the mining industry, followed by the transportation industry. Mobile sources of pollution from transport continue to increase in Estonia. Of interest is the fact that heat producers and power stations, said to be the greatest polluters, are not even mentioned in the end-user list.

The major end-users in the category of water and wastewater systems are municipalities. This situation should remain unchanged well into the next decade. Other important end-users of water and wastewater technologies are power stations, chemical plants, the food industry and agriculture. Family residences may become significant end-users of "package" wastewater treatment units in the future, especially in more remote areas.

Municipalities are the major end-users of waste-related technologies, especially those for waste separation, storage and incineration. The most frequent end-users of technologies for hazardous waste technologies are the oil-shale, cement and construction industries.

Power generation companies are the largest end-users of energy-related technologies in Estonia. Other significant end-users include manufacturing, heavy industry and the pulp and paper industry. As in other sectors, as energy prices rise, energy efficiency will become increasingly important.

Estonia's EU approximation process and the increased access to EU markets for Estonian producers are the major reasons behind the introduction of environmentally sound and effective technologies that meet EU standards and regulations. Estonian products marketed in European markets should comply with very high quality standards, and thus the modernization of technologies is increasingly becoming an important issue for producers. The environmental aspects of production and marketing have become more transparent in recent years. All these issues indicate the continued expansion and development of the environmental business sector.


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