international biomass trade - uef

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Blas Mola-Yudego ([email protected])

International biomass tradeBlas Mola-Yudego

Bioenergy markets and policies

Lignoselluloosabiomassat ja niiden energiakäyttö

(6 ECTS) 3513019

[email protected]

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Heinimö, J. (2008). Methodological aspects on international biofuels trade: international streams and trade of solid and liquid biofuels in Finland. Biomass and Bioenergy, 32(8),

702-716.

International trade

An illustration of biomass streams within a country and between countries. Products presented in brackets represent examples of products.

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Wood streams in the Finnish forest industry in 2004 compiled by using the stream model described in the text, million m3, round wood includes bark

Particle- and fibreboard mills were included in other wood products industry.

Finnish case


702-716.

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Finnish case


702-716.

Consumption of biofuels in Finland (2004)

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Wood chip markets

Wood chips, derived mostly from recovered/waste wood or virgin wood (harvesting residues)

Baltic node: Sweden, Denmark and Germany main importersRussia and Baltic countries as exporters

Other players: China (exp>imp), Japan (imp)

Junginger, M., Goh, C. S., & Faaij, A. (2014). International Bioenergy Trade. Lecture Notes in Energy. Springer Netherlands, Dordrecht.

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Waste wood markets

Junginger, M., Goh, C. S., & Faaij, A. (2014). International Bioenergy Trade. Lecture Notes in Energy. Springer Netherlands, Dordrecht.

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Pellets

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Pellets

3:1(pellet:oil)

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Heating plants

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Pellets

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Pellet trade flows

Global wood pellet trade streams in ( a ) 2010, ( b ) 2011, ( c ) 2012 [>10 ktonnes] (Data: Cocchi et al. 2011 ; Lamers et al. 2012a ; EUROSTAT 2013 )

Lamers, P., Marchal, D., Heinimö, J., & Steierer, F. (2014). Global woody biomass trade for energy. In International bioenergy trade (pp. 41-63). Springer Netherlands.

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Pellet trade flows

15 largest operating pellet plants (2012)

Lamers, P., Marchal, D., Heinimö, J., & Steierer, F. (2014). Global woody biomass trade for energy. In International bioenergy trade (pp. 41-63). Springer Netherlands.

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¯

Production & Consumption

Production

Consumptio

No Data

Production and consumption

Production

Consumption

The consumption and production patterns have however been changing along the last 5 years

Lack of comprehensive statistics and accounts

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Production

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Consumption

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Pellet trade flows

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Pellet trade flows2011 Trade flows over 100k (left) and 500k (right)

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Pellet trade flows

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Pellet production in Northern Europe

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0%

10%

20%

30%

40%

50%

60%

<5 5-10 10-20 20-30 30-40 40-50 50-100 100-

200

Sweden

Finland

Perc

enta

ge o

f pro

ducers

Capacity (1000 t / yr)

Pellet production in Northern Europe

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0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

2001 2002 2003 2004 2005 2006 2007

<25kW

>25kW

Total consumption

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2000000

2001 2002 2003 2004 2005 2006 2007

< 25 kW

25kW-2MW

> 2MW

Total consumption

Finland Sweden

Pellet consumption in Northern Europe

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Strengths Weaknesses

Finland

- Enough domestic

production to increase

the number of pellet

users

- Domestic raw

materials

Sweden

- Develop pellet

market

- Many small scale

producers

- Well develop

delivery network

- Most of the pellets

produced according to

pellet standard

- Favourable taxation

Finland

- Lack of good quality

raw materials

- No pellet standard

- Amount of fines

formed in bulk

deliveries

-Taxation

Sweden

- Lack of raw

materials

- Many small

producers do not

follow any standards

- Quality of imported

pellets (amount of

fines)

Opportunities Threats

Finland

- Development of

pellet handling and

transportation

- Make pellet market

local instead of global

- Increase the

domestic pellet

consumption

- New raw materials

Sweden

- New raw materials

- Improving the

harbour facilities for

handling imported

pellets

Finland

- Decreasing sawmill

production effect on

raw material

availability

- Rise in the pellet

price

- Uncertainty of raw

material supply can

delay forthcoming

plants

Sweden

- Competition for raw

materials with other

industries

- Rise in the raw

material price

- Reduction in pellet

importation

Pellet Markets in Northern Europe

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R2 = 0.51

0

100

200

300

400

500

600

0 1000 2000 3000 4000 5000

Ag

gre

ga

ted

pe

lle

t p

lan

ts c

ap

acity

(x 1

00

0 t)

Aggregated sawmill capacity (x 1000 t)

AU

BE

CZ

DE

EE

ES

FI

FR

HU

IT

LV

NO

PO

SE

SK

UK

R2 = 0.79

0

500

1000

1500

2000

2500

3000

0.00 10.00 20.00 30.00 40.00 50.00

Saw log production m3

Pelle

t capacity

t (

x 1

000)

By-product

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Forest Biomass Forest Wood

Demand BioenergyDemand Forest

Products

SRF

By-product

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Sawdust Timber

Demand PelletsDemand Forest

Products

By-product

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Regionalised production

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Case example: pellets

source: own elaboration

By-product

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Production cores

The areas concentrate 30% of the total pellet capacity estimated for EuropeThe areas with stripes, 50%The whole light areas entail 90%

Main coresA: Central EuropeB: ScandinaviaC: FinlandD: Baltic

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Central

Baltic Scandinavia Finland

N plants 69 18 72 18% European plants 18 % 5 % 19 % 5 %Pellet capacity 2924 993 1975 834% European capacity 25 % 8 % 17 % 7 %

Population (hab. x106) 58.5 2.9 7.2 2.9Population density (hab. km-2)

157.5 31.9 35.5 27.6

% Forest land 48 % 52 % 68 % 68 %% Agriculture land 45 % 41 % 17 % 15 %Total Area (x 103 km2) 371.1 90.5 204.0 105.1

Characterization of the four main areas defined, according to their shares of the pellet capacity, their population and forest land covered.

Production cores

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Area Countries Capacity (x103 t y-1) % (Country Total Capacity)

“Central Europe” Austria 957 95 %Germany 1 388 74 %Belgium 235 87 %Switzerland

19 25 %

France 170 15 %Italy 145 31 %Slovenia 10 18 %

“Baltic” Estonia 385 100 %Latvia 14 9 %Lithuania 514 88 %

“Scandinavia” Denmark 180 44 %Sweden 1 785 72 %

“Finland” Finland 834 72 %

Production cores

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Zone Country To / From Export to

Import from

"Central Europe" Germany Austria 90.9 49.1France 20.8 60.3EU27 321.6 204.8 Exporter

Austria Czech Republic 0 66.0Italy 124.4 0EU27 136.1 174.6 Importer

Switzerland Germany 1.5 22.6Italy 3.8 0EU27 5.6 43.6 Importer

Italy Austria 0.1 266.3Slovenia 1.5 57.2EU27 2.2 529.7 Importer

"Baltic" Estonia Denmark 208.6 0Latvia 1.0 95.1EU27 281.3 89.3 Exporter

Latvia Lithuania 1.0 2.9Sweden 66.5 0EU27 157.5 3.5 Exporter

Lithuania Denmark 32.4 0Latvia 2.7 25.3EU27 62.6 24.3 Exporter

"Scandinavia" Sweden Finland 2.1 72.6Denmark 98.5 2.1EU27 102.9 373.4 Importer

Denmark Sweden 7.1 61.7Estonia 0 174.0EU27 9.7 689.1 Importer

"Finland" Finland Sweden 60.5 0.1Estonia 0 4.2EU27 125.2 6.6 Exporter

Production cores

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Countries

Production growth (average) Consumption growth (average)

Policy InstrumentsAmount (thousand

tonnes)

% Amount (thousand

tonnes)

%

Austria 89 32 75 30 Subsidies, Feed in tariffs

Belgium 190 26 Subsidies, Tax reduction, Green

certificate system

Denmark – 9 – 4 90 11 Subsidies, Biofuel tax exemption,

Energy tax, Feed in tariff

Finland 42 19 22 32 Energy tax, Green certificate

system

France 54 91 50 41 Tax/VAT reduction, Green

certificate

Germany 2770 85 172 31 Subsidies, Tax/VAT reduction,

Green certificate

Netherland 3 3 103 19 Feed in Premium

Italy 98 33 128 33 Subsidies, Green certificate

Sweden 107 11 144 11 Subsidies, Carbon and energy tax,

Biofuel tax exemption, Green

Electricity system

Poland 66 126 29 132 Green certificate system

Policy incentives

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Year Policy initiative

1991 Carbon tax and energy tax focus on heat

1997-2005 Investment subsidies

2001 Carbon tax increased

2003 Green electricity certificate system

2004 Tax on electricity for household and services

Sweden


1990 Carbon tax introduced

1990 Investment subsidies for CHP plants

1998 Energy tax increased

Finland

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1991 Energy tax and carbon tax reformed

1993 Biomass agreement and

compensation scheme for

renewable electricity

1994-1998 Energy tax increased on heating

and power

1995-2000 Subsidy scheme for small wood

pellet boilers

1996 Feed in tariffs introduced

2008 Increasing the existing CO2 tax

2001 NOx tax introduced

Denmark

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1990 Non refundable capital grants for biomass

energy technology

1995 Emission regulation for small scale heating

system

1997 Emission regulation for industrial heating

system

1998-2007 Investment subsidies for biomass heating

technology including pellet

1998 Pellets and briquettes-Requirement and test

specification introduced

2004 Feed in tariff system in producing green

electricity

2008 New subsidy scheme for pellet heating

installation

Austria

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1991 Feed in tariffs for renewable energy

1999 Investment subsidies for automatic pellet

heating system

1999 Taxes on fossil fuel increased and tax on non

renewable electricity introduced

2009 Renewable heat law introduced

Germany

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2002 Green Certificate system introduced in

Flanders region


Wallonia region


Brussels capital region

2004 Investment subsidies for pellet heating

devices in Wallonia region

Belgium

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Local/Global role

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Global position

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Company competition index

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au

ba

be

ch

cz

de

dk

ee

es

fi

fr

gr

hu

it

lt

lv

ne

no

po

pt

se

si

sk

uk

0.0

1.0

2.0

3.0

4.0

0.0 0.5 1.0 1.5 2.0h80 (global concentration)

h20

(lo

cal c

on

cen

trat

ion

)

local dominance global and local dominance

Country averages for the pellet plants analysed, for global and local concentration indices (h20and h80, respectively). The size of the circles represent the country’s total pellet capacity.

Market dominance

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EU Bionet III: http://www.eubionet.net/

Raw material supply: sawdust, localised production, new feedstocks, imports

Logistics: limitatation (vs e.g. fossil fuels), location

Sustainability concerns: food vs wood, rising price, land

Fuel quality: lack certification, standards, quality control

Lacking financial policy support: subsidy, stability of policy fwk

Unfair competition fossil fuels: VAT tariffs

Main Barriers

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Main Barriers

EU Bionet III: http://www.eubionet.net/

international biomass trade - uef

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