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Biomass resources and bioenergy technologies – from potentials to investment Heinz Kopetz, European Biomass Association AEBIOM Budapest, 17 November 2008 Eufores www.aebiom.org [email protected] Structure • Resources • Efficiency • Technologies • Investment opportunities • Conclusions and recommondations www.aebiom.org [email protected] Main criteria for energy policy Basic criteria for EU energy policy – Environment, reduction GHG – Security of supply – Competitiveness Additional criteria for bioenergy policy – Food security – Sufficient supply of wood industry www.aebiom.org [email protected] The role of biomass Biomass ist the most important of RES, covering 2/3 of all RES. Final energy from all renewables and from biomass 289 Mtoe 195 105 68 2005 2020 Total Renewables Source: Eurostat, EREC, AEBIOM. www.aebiom.org [email protected] Biomass The importance of government policy Government policy is decisive for the quantity of final energy you get from a given quantity of primary energy. 220 Mtoe biomass are necessary to reach in the 20% target of the Directive in the year 2020: 25 Mtoe 75 A policy focused on biofuels and electricity might deliver 145 Mtoe final energy, 220 195 145 whereas a policy concentrated on efficient conversion and heat might provide 195 Mtoe final energy. , primary energy Primary energy Final energy losses final energy: focus on electricity Source: AEBIOM. www.aebiom.org [email protected] final energy: efficient conversion Eurostat Statistics Balance sheets 2006 Primary biomass 89 025 ktoe Input to electricity and CHP 27 312 ktoe Electric efficiency : 28,3% Global efficiency : 50% Biomass for households and services 35 005 ktoe Input to DH 3 538 ktoe Biomass for industry 17 298 ktoe Bioelectricity 7 731 ktoe 89 908 GWh Derived heat 7 686 ktoe Biofuels 5 375 ktoe Defining the target as a percentage of the final energy favours the heat market very much ! www.aebiom.org [email protected] The efficient use of biomass in 2020 AEBIOM targets (Mtoe) 2005 2020 3,1 6,9 30 heat electricity biofuels 17,2 57,5 2005 2020 Total primary biomass 82 220 Final heat 57,5 147,5 electricity 6,9 17,2 biofuels 3,1 30,0 67,5 194,7 total final energy from biomass www.aebiom.org [email protected] 147,5 Source: AEBIOM. Final energy from Renewables in EU 27 in 2005 and 2020 300 250 Mtoe 200 20% Other renewables Biofuels Bioelectricity from pellets Bioelectricity (except pellets) Pellets for heat Biomass for heat (except pellets) 25 Mt pellets 1% of RES 150 8,5% 100 50 Mt pellets 7% of RES 50 0 2005 2020 Strong government policies are necessary to develop bioenergy in an efficient way! Pellets will play a significant role! Source: AEBIOM, Eurostat. www.aebiom.org [email protected] Is there enough biomass to reach these targets? Biomass from forests • Additional demand for wood (material use and energy) until 2020: 380 Mm³ wood! • Where can these 380 Mm³ wood come from until 2020? – from existing forests by better mobilization? – from new short rotation coppices? – from imports from abroad? www.aebiom.org [email protected] Is there enough biomass to reach these targets? Biomass from agriculture • Utilized agric. Land (UAA) in EU 27: 160 Mha – 100 Mh arable land – 50 Mha permanent grassland – 10 Mha permanent crops (wine, apple, olive etc.) • Necessary arable land per capita for sufficient food supply: 0,16 ha for 495 M population: 80 Mha – therefore about 20 Mha arable land can be used for energy and industry: • The demand for grassland is declining: – -20% of cattle heads in 20 years, at least 10 Mha grassland could be used for energy and industry supply! Summary: at least 25 Mha land are available for dedicated energy crops, in addition byproducts from agriculture such as straw or manure! www.aebiom.org [email protected] How to use this land to optimize bioenergy production? Scenario by AEBIOM; Oct.2008: • 8 Mha for solid biomass as short rotation forests, miscanthus, new energy crops for heat and electricity and maybe second generation fuels. • 14 Mha land for biofuels first generation and 3 Mha for biogas. • The 8 Mha short rotation forests could produce 250 Mm³ wood annually, the 14 Mha agricultural crops could deliver raw material for 21 Mtoe biofuels first generation, additional 5Mtoe biofuels as biomethan and electricity and heat! www.aebiom.org [email protected] www.aebiom.org [email protected] www.aebiom.org [email protected] How to use this land to optimize bioenergy production? use Scenario by AEBIOM; Oct. 2008: Mha % Energy Mtoe % biogas 3 12 16,0 20 short rotation 8 32 41,6 53 biofuels 14 56 21,0 27 Total 25 100 78,6 100 Source: AEBIOM. land use, 2020, Mha produced energy, 2020, Mtoe 3 16 21 biogas 8 14 short rotation biofuels 41,6 www.aebiom.org [email protected] The double harvest producing first generation fuels 100.000ha arable land for biofuels in Europe delivers: • In the case of ethanol: – >240.000m³ ethanol = 130.000 t gasoline and – >180.000 t protein feed (DDGS) = 60.000ha soja • In the case of biodiesel: – > 120.000t biodiesel = 100.000 t diesel and – > 170.000t rape cake as protein feed = 60.000 ha soja beans abroad! Conclusion: if we use unused land (set aside, fallowed land) we produce energy and improve the food supply! www.aebiom.org [email protected] The utilization of the European harvest of cereals Average harvest: 285 Mt for food: 50 Mt for energy (2007): 4,2 Mt Source: ebio. www.aebiom.org [email protected] An example: biofuels and the cereal market Big variations in the cereal harvest: 60 Mt from year to year. • Average demand for food: 50 Mt 340 320 • In the past 10% set aside and yet surplus production of 12% and annual export between 10 and 30 Mt cereals. 300 280 • Use for ethanol production in 2007: 4,2 Mt cereal = 0,5 Mha 260 240 220 200 2001 2002 2003 2004 2005 2006 2007 Source: Eurostat. www.aebiom.org [email protected] 2008 An example: biofuels and the cereal market Big variations in the cereal harvest: 60 Mt from year to year. • Average demand for food: 50 Mt 350 300 • In the past 10% set aside and yet surplus production of 12% and annual export between 10 and 30 Mt cereals. 250 200 • Use for ethanol production in 2007: 4,2 Mt cereal = 0,5 Mha 150 100 50 3 0 2001 2002 2003 2004 2005 2006 4,5 2007 5 2008 • Conclusion: the high food prices in 2007/08 were not caused by the European ethanol production but by the declining harvest from 2004 to 2007. Source: Eurostat. The important question: How to combine biofuel production with the variations of the harvest on a European and a global scale? Because the alternative to biofuels is overproductiven or set aside land! www.aebiom.org [email protected] First answers 1. Where can these 380 Mm³ wood come from until 2020? – from existing forests by better mobilization?....100Mm³ – From new short rotation coppices?..................240Mm³ – From imports from abroad?............................. 40Mm³ 2. Do we have enough potential to provide 220Mtoe biomass for 2020? Yes, about 200 Mtoe from the EU27 and 20 Mtoe from abroad (pellets, biofuels) • Yet - the abandoned land has to be used, - no obstacles to use parts of the permanent grassland for bioenergy - incentives to plant short rotation forests - incentives for biogas plants - priority for biofuels from Europe www.aebiom.org [email protected] AEBIOM targets for bioenergy, Mtoe 2004: EU25; Scenario 2020 EU27 250 200 Imports 150 Bioenergy from waste 100 Agricultural based bioenergy wood based bioenergy 50 0 2004 2020 Source: AEBIOM. www.aebiom.org [email protected] Structure • Resources • Efficiency • Technologies • Investment opportunities • Conclusions: targets, directive, political framework, opportunities www.aebiom.org [email protected] The need for a better efficiency • Europe needs to develop an efficient energy system to cope with the future problems. • Efficiency concerns the conversion process and the end-use. • The biggest losses in efficiency occur in the conversion from primary energy to electricity without using the heat. These losses are higher as all contributions of RES. • The target setting in final energy and not in primary energy will draw the attention to this issue, especially in setting up the national action plans, where you have to decide where to use the available biomass. • An example: www.aebiom.org [email protected] Contribution of biomass to final energy Example: Given 100.000 m³ wood (=719 TJ) 800 700 600 TJ 500 400 719 719 300 561 200 100 201 0 primary energy firewood Primary energy Source: AEBIOM. www.aebiom.org [email protected] wood for DH Final energy wood for el Contribution of biomass to final energy Biomass 2006: primary energy – losses – final energy, EU27, in Mtoe. Efficiency: electricity 27,7%; heat 18,0%; total 45,7%. 100 90 80 27,3 BM for electricity and CHP 70 14,6 60 3,5 5,4 BM for DH 0,8 BM biofuels 7,7 electricity 5 2,7 5,4 heat heat fuels 17,3 heat 50 17,3 40 BM industry heat 30 heat 20 35 BM HH heat 35 10 0 primary energy 89,0 losses 15,9 Source: Eurostat. www.aebiom.org [email protected] final energy 73,1 Further conclusions • In the directive there is an efficiency for combustion from 70% for industry and 85% residential heating proposed. • There also should be a minimum of 60% for electricity from biomass for new plants. • Why not using the same threshhold for fossil fuels? • If we really want to improve the efficiency of the energy system, all new electricity plants – be the energy carrier fossil or biomass –should be cogeneration plants with a minimum efficiency of 60%, also in the case of cofiring! www.aebiom.org [email protected] Structure • Resources • Efficiency • Technologies • Investment opportunities • Conclusions: targets, directive, political framework, opportunities www.aebiom.org [email protected] Technologies I: biomass to heat Technologies for efficient combustion of biomass are available for all sizes from 20 kW up to 100 MW: pellets boilers, pellet stoves, log wood boilers, chip boilers, wood waste boilers. The raw material can be: fire wood, saw mill chips, wood chips, pellets, bark, straw, other by-products from the forest and wood industry. www.aebiom.org [email protected] Technologies II: biomass to electricity Biomass for electricity should only be used in cogeneration units New technologies coming to the market: • Stirling engine combined with pellet boiler for familiy houses • Wood gasification in small scale for small district heating Well proven technologies: • The ORC process starting from 400 kW el upwards • Small steam turbines starting from 1 MW el • Traditional bigger solutions using the steam process • Biogas in combination with a gas engine www.aebiom.org [email protected] Technologies III: biofuels, biogas • • • • Ethanol by fermentation Biodiesel by esterification Biomethan by cleaning the biogas 2nd generation fuels using different technologies (cellulose to sugar, wood to gas and to liquids – Fischer Tropsch, pyrolisis) 2nd generation fuels would have a low efficiency, if the produced heat cannot be used, therefore biorefieneries, that produce fuels, heat and electricity, pellets or pulp would be the best place to produce these fuels. www.aebiom.org [email protected] Structure • Resources • Efficiency • Technologies • Investment opportunities • Conclusions: targets, directive, political framework, opportunities www.aebiom.org [email protected] Investment opportunities: Individual heating • Individual heating: an important sector, main interest pellets, main obstacle: lack of capital. A Change from oil or gas heating systems to pellets costs 12.000 to 16.000 €. • • • Given a region with a population of 10 M people and the target to change 20.000 units per year you need 300 M€ capital. That can come partly from private households partly from government support. Experience shows you need financial support programs for private househoulds: in this example 100 M€ per year! With such a program you create investment opportunities in the production of pellets boilers, of pellets and 1000s new jobs to install the new systems, you reduce 150.000t C0² every year cumulative and save around 40MEuro for certificates, 35M Euro consumer expenditures as compared to using oil or gas! www.aebiom.org [email protected] Investment opportunities: Heat for Industry and district heating • Biomass for heat in industry plays already an important role and offers new interesting opportunities given the high priced of gas and oil • District heating (DH) is a necessity to get to efficient combined heat and power solutions. It is a pity that these systems are dismantled partly in Central Europe. In the future, DH with biomass will be much cheaper than natural gas or oil, therefore a strong push for DH heating with biomass is necessary! • You need financial programs – for the modernization of existing DH plants and for new ones, – for the switch from fossil fuels to biomass – also a financial support of private houses to connect to DH grids proved to be very succesful. – The advantages concerning C0² reduction, improved security, savings for consumers are the same as mentioned for individual heating. www.aebiom.org [email protected] Example: District heating with biomass in Austria www.aebiom.org [email protected] Economic effects of rural district heating: An example of an Austrian Village • • • • • Size: 420 KW heat (for 20 family houses) Sold heat/year: 610.000 kWh Combustible: 1080 m³ wood chips Investment: 280.000 Euro Financed by: – 1 customer fee for connection grid: – Support rural development prog.: – Own capital and bank credit: Total www.aebiom.org [email protected] 70 000€ 85 000€ 125 000€ 280 000€ Village heated with heating oil 70.000Euro going abroad abroad village 70.000l heating oil coming from abroad www.aebiom.org [email protected] Village heated with local district heating plant based on biomass 55.000 Euro going to the heating plant remain in the region Heating plant village 600.000kWh heat coming from the heating plant www.aebiom.org [email protected] Investment opportunities cogeneration: Electricity & heat Electricity comes – from wood, byproducts of the wood and forest industry, straw and – from biogas. Two preconditions – Satisfying feed in tariffs – Concept to use the heat to reach an efficieny of at least 60%. In many cases heat driven CHP-plants. Many countries offer good opportunities! www.aebiom.org [email protected] Investment opportunities: Biogas • • • Biogas offers the chance to use feedstock for energy like waste, manure, that are without competition and offer a additional raw material base; on the basis of energy crops it uses the whole plant for energy and delivers high yields per hectar. It is a typical decentralised technology for rather smaller units 0,2 – 2MW . The use can be – electricity and heat – feed in gas pipelines after cleaning – After cleaning and compressing as biomethan in cars, buses. • The development of biogas depends upon the government policies such as – feed in tariffs – access to gas grid – programs for biomethan as fuels for cars www.aebiom.org [email protected] Investment opportunities: Liquid fuels • • • • • Ethanol Biodiesel 2nd generation fuels Biogas In the future: biodiesel from algae www.aebiom.org [email protected] Structure • Resources • Efficiency • Technologies • Investment opportunities • Conclusions: targets, directive, political framework, opportunities www.aebiom.org [email protected] Conclusions and summary The political framework conditions are decisive for the rapid development of bioenergy: feed in-tariffs, financial support programs, no obstacles by the administration. 1) Sufficient biomass potential in Europe, but is has to be developed mobilization of wood, incentives for new SRF, use of permanent energy production, training grassland for 2) The dilemma of food versus fuel can be solved yet more attention to the questions: a) How can we better take into account the annual variations of the harvest? b) How can we avoid that biofuels consumption in Europe based on imported biofuels causes food shortage in the producing countries? 3) More attention to biogas as efficient energy chain using a technology offered by nature – the most efficient 2nd generation fuel feed in tariffs, grid access, investment support, policy for biomethan as transport fuel www.aebiom.org [email protected] Conclusions and summary 4) The transformation of the heating sector from fossil to renewable (biomass, solar thermal) offers huge opportunities. Needed are financial support programs for individuals, for construction, modernisation of District Heating (DH) for the switch from fossil to biomass in DH. 5) Electricity from biomass in combination with the use of the produced heat in industry, buildings or via district heating, support by feed in tariffs, minimum efficient rule of 60%, only CHP units be they small or big. www.aebiom.org [email protected] The positive effects of bioenergy • • • • Huge reduction of GHG emissions Reduction of fossil imports by 150 to 200 Mtoe Savings by less demand for C0² certificates Considerable savings for consumer using biomass as heat • New jobs in many parts of the economy • Improved rural development • Improved security of supply www.aebiom.org [email protected] Thank you for your attention Heinz Kopetz [email protected] www.aebiom.org [email protected]