Efficient trading of biomass fuels and analysis of fuel supply chains and business models for market

1
Efficient trading of biomass fuels and analysis
of fuel supply chains and business models for
market actors by networking

• EIE/04/065/S07.38628

Coordinator Eija Alakangas, VTT P.O. Box 1603,
FI-40101 Jyväskylä tel. [phone] E-mail
eija.alakangas_at_vtt.fi
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Work packages and duration

• WP 1 - Current situation and future trends in
  biomass fuel trade in Europe (VTT)
• WP 2 - Business models for biofuel supply chains
  for heat and power production (VTT)
• WP 3 - Implications of the EU legislation for
  biomass markets in different countries (Senter
  Novem)
• WP4 - Dissemination and co-operation (AEBIOM)
• WP5 Management and co-ordination (VTT)
• Duration of the project1.1.2005 31.12.2007

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Project organisation

• VTT, Finland (co-ordinator)
• SLU, Sweden
• SenterNovem, the Netherlands
• DTI, Denmark
• FNR, Germany
• CRES, Greece
• BLT, Austria
• CRAW, Belgium
• Agencia Andaluza de la Energy, Spain
• The University of Manchester, UK
• CBE, Portugal
• SWS, Ireland
• AEBIOM, with 28 national bioenergy associations
• CEPI, forest industry representative
• NKUAS, Finland
• ADEME, France

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WP-1 Biomass resources and use in 2004,20 EU
countries
Annual resources

• Total figure for biomass resources of 20 EU
  countries is around 5 974 PJ/a (143 Mtoe/a)

• Total figure for biomass use in 20 EU countries
  was around 2 740 PJ (65.4 Mtoe)
• According Eurostat data of year 2004 the biomass
  use in EU25 was 2 808 PJ (68,7 Mtoe)
• ? 50 of the potential is in use.

Use 2004
Excluding Luxemburg, Malta, Cypros, Slovenia and
Lithuania
Source EUBIONET 2 study
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Pellet trading in Europe
WP1
Production in Baltic Sea Area is about 3
million tons (4.4 Mtoe)
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WP1- Conclusions 1/2

• National incentives have promote trade
• Increase of export of biomass, especially from
  Baltic Sea area or oversea areas to Central
  Europe because high feed-in tariffs
• The international trade of solid and liquid
  biofuels is 19 Mtoe.
• Most trade solid biofuel is wood pellets
  production is 4 million tons, of which 70 is
  produced in Baltic Sea Area
• Different biomass volumes in different studies
• From 150 Mtoe/a (EUBIONET II) to 210 352 Mtoe/a
  (IE, Germany)
• Harmonisation of methods used in assessment
  studies
• Biggest unutilised potential lies on forest
  residues
• More difficult to utilise in current
  installations
• Total potential more 50 Mtoe, only 1/5 utilized
• Forest industry important wood fuel provider and
  user
• Pulp and paper industry accounts on average 23
  of total bioenergy use in EU20 countries.
• Biggest potential lies in forest residues (tops,
  branches) and their use is connected to use of
  timber or pulp wood in forest industry

Source EUBIONET 2 study
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WP1- Conclusions 2/2

• International quality standards for solid
  biofuels
• CEN/TC 335 has developed 30 different technical
  specifications ?upgrading to EN-standards has
  started and EUBIONET study of feedback transfer
  to CEN technical committee
• Difficult to follow solid biofuel trade and use
• customers statistics do not have special CN-code
  for pellets (currently under wood waste) ? own
  CN-code is needed
• EU statistics combine biomass and waste ?
  separate biomass and waste streams in statistics
• Prices of wood fuels have increased
• Only few countries are publishing price index of
  solid biofuels? international prices index e.g.
  for wood pellets is needed (fob in Rotterdam
  harbour?)
• How to mobilise more agrobiomass to markets?
• Cofiring with fossil fuels (slagging, fouling
  problems)
• Refining to pellets or to liquid biofuels?

Source EUBIONET 2 study
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WP3 - Feed-in tariffs or other support for
electricity

• Big differences across Europe
• Level
• Low 0.5 - 5 ct/kWh FI, L
• Middle 5 8 ct/kWh
• High 8 21.5 ct/kWh D, NL, SL
• Support in segments (ranging from 1 category to
  over 24, more for small-scale)
• Duration (7 20 years)
• ? Increase of biomass fuel trade in Europe
• To Germany, Netherlands all over the world
• Waste material to Netherlands (5 Mton waste 11
  plants)
• From Baltic states to Northern and Central Europe
• Olive residues from Spain to Sweden, UK
• Pellet are used more in large-scale power plants
• Raw material competition

Senter Novem Bio-energy in Europe 2005
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WP3 - RES-Electricity Support schemes

• Recommendations of the report (Senter Novem)
• Avoid policy competition and realised level
  playing field
• Quata in all EU?
• Harmonisation of feed-in support
• Harmonisation of categories
• Take ETS in account by financial support
• Utilise waste for energy
• Realised public acceptance
• 113 Mton waste potential
• Realise balance use of biomass
• Avoid distortion in markets(food, products)
• Simultanous support for heat,fuels and power

Quota
Feed-in or other
Senter Novem Bio-energy in Europe 2005
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WP4 Dissemination Spring 2007

• Trading, legislation and biomass use workshop and
  study tour to Rotterdam harbour and Amer power
  plant, 19 20.2.2007, Netherlands (WP3)
• Nordic bioenergy 2007 conference, study tour,
  11-13.6.2007, Sweden (WP4)
• Wood fuel production for small-scale use 2nd
  training event, 6 7.6.2007, 6-7.6.2007, Germany
  (WP4)
• District heating part of the European energy
  markets - study tour and seminar for Finnish DH
  managers and local politicians, 13-16.4.2007,
  Ireland (WP4)

Project flyers produced during spring 2007