Transcript Potential of European forest belt in energy production and carbon

FUELBELT
European experiences in production
of wood biomass
Enhanced use and consumption of wood
June 18 – 19, 2007
Opatija, Croatia
Veli Pohjonen
University of Helsinki, Finland
European forest belt – FuelBelt - is a vast resource
source: European Forest Institute
Enhanced use of wood energy in Europe
• Combatting climate change needs
renewable energy, instead of fossil fuels
• Growth in renewable energy in Europe is
largely based on woody biomas
• For enhanced wood use all over Europe
we need an intelligent energy carrier that
is durable, storable and transportable
EU aims at 20 % in renewables
• Renewables now at 6.5 per cent in EU
• in combatting the climate change the aim
has been set 20 per cent by 2020.
• Plenty of biomass, hydro, wind power and
liquid biofuels are needed
• Intelligent Energy Europe (IEE)
demonstrates good working models
• FUELBELT under building for such project
Renewables per cent: case Finland
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In 2006 renewables totalled 23 per cent
Forest energy 20 %, hydro 3 %, wind 0.2 %
New forest energy developed since 1976
The case path points to 36 per cent in 2020
Wood energy origins are in wood industries
• About half of round wood is sawn to lumber
• The other half is in various residues, like saw dust
(middle), bark (right) and others
• Optimum use of wood energy supports saw milling.
Same applies for pulp and paper industries
Saw Mill and Power Plant: Polkky Ltd, Kuusamo, Finland
In modern saw mills
• bark and saw dust are
used for energy
• electricity and heat are
produced
• chips are sold to pulp
mills
• shavings are pressed
into pellets
• optionally: saw dust is
also used for pellets
For enhanced use we have a problem:
supply and demand do not meet
• Forest energy supplies are in less
populated, remote areas (in FuelBelt)
• Demand for renewable energy is highest
in populated areas of Central and
Southern Europe
• Raw forest energy bulky, not transportable
• Energy carrier is needed
• Already developed carrier: wood pellet
Shaving of Scots pine under microspcope
mostly air (brown), less cell walls (yellow)
Wood density rule
Density of dry Scots pine
kg/m3
2000
1530
1600
1200
1200
800
390
400
0
Roundwood
Pellet
Cell wall
Pelletizing today
densifies 4 x
which is
sufficient to
transport from
FuelBelt to
consumer belt
Rule of thumb for maximum transport
• Chips, saw dust or shavings:
100-200 km (by truck)
• Round wood
1000 km (by train)
• Wood pellets
5000 km (by ship), 500 km by truck
In combatting the climate change:
pellets substitute coal and natural gas
• Example of large scale: wood pellets
processed in North-eastern Finland,
Kuusamo are sold to Southern Sweden,
Stockholm to subsitute coal in Hasselby
power plant
• Example of small scale: wood pellets
processed in Austria are sold to Italy to
subsitute natural gas in small houses
Kuusamo (Finland) pellet factory:
Shavings in, pellets out, export to
Stockholm Hasselby (Sweden)
Example of large scale customer:
Stockholm Hasselby (Sweden)
• Coal fired power plant for pellets in 1992
• Target: cut carbon dioxide emissions
• Pellet use 250 000 tn / a (25 times
Kuusamo production)
• Power plant in suburb of Stockholm, on a
lake side, transport only by ships
• Domestic pellets 70 % (from Sweden)
• Import 30 % (from Estonia, Latvia,
Norway, Poland, Finland)
Austrian model
pellet production of 90,000 tn/a
from shavings and saw dust
for local market and export (e.g.Italy)
Example of small scale customers:
natural gas heated houses
• Unstability of natural gas in 2000s has
created market for pellets and pellet
burners in Central and Southern Europe
• Pellet retail price peaked last winter over
400 Euro/tn (15 kg bags, in Italy)
• Price has come down, but apparently
follows the development of natural gas
• Pellets create energy security in small
housing
Pellets have been developed for 30 years
• Over 200 factories in
Europe
• Small scale (house) use is
well advanced
• Large scale use started in
Hässelby, Sweden in
1992; Denmark also active
• Raw materials: shavings
from carpenter industries,
saw dust from saw mills
source: The Bioenergy International
Effect of carbon dioxide trading
• Tested in EU 2005-2007, second phase
2008-2012
• System works for the environment, CO2
emissions are better under control
• Experience from Finland: prices of
electricity, wood fuel and pulp wood rise
• CO2 trading sets the basic price for wood
pellets, against coal
Carbon dioxide price
blue 2007 emissions, green 2008 futures
Wood pellet reference pricing
against coal, based on summed coal FOB price and CO2 price
(from 1.1.07 futures CO2 price for Dec 08 used)
Does pulpwood go into energy?
in mid 2007: no (blue line is under green line)
FOB-prices for pulpwood (Finland) and coal, CO2 price from 1.1.2007 for futures Dec 08
Target of pellet development: to get it
recognized in Commodity price lists
see e.g. ”pink sheet” in http://www.worldbank.org/
Jan-Dec
Jan-Dec
Jan-Feb
Dec
Jan
Feb
Unit
2004
2005
2006
2005
2006
2006
Coal, Australia
$/mt
52.95
47.62
45.44
38.23
43.19
47.70
Crude oil, avg, spot
$/bbl
37.73
53.39
61.08
56.43
62.46
59.70
Crude oil, Brent
$/bbl
38.30
54.43
61.75
56.75
63.57
59.92
Crude oil, Dubai
$/bbl
33.46
49.29
57.94
53.13
58.31
57.58
Natural gas, Europe
$/mmbtu
4.28
6.33
7.96
7.49
7.96
7.95
Natural gas, US
$/mmbtu
5.89
8.92
8.07
12.83
8.66
7.49
Wood pellet, Europe
€/tn
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Commodity
Energy
FUELBELT
• There are good prospects for pellet development
in Europe
• Combatting climate change, raising renewable
energy, subsituting coal and natural gas give the
frame
• There are high expectations on forested
countries
• That is why we are developing FUELBELT
project for Intelligent Energy Europe
• Participants: Finland, Sweden, Austria, Spain,
Latvia and Croatia.
Thank you,
• The presentation will be posted in
http://veli.pohjonen.org
Veli Pohjonen
Opatija, Croatia
19 June, 2007