Biomass resources and bioenergy technologies

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Biomass resources and bioenergy technologies
from potentials to investment
Heinz Kopetz, European Biomass Association
AEBIOM Budapest, 17 November 2008 Eufores
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Structure

• Resources
• Efficiency
• Technologies
• Investment opportunities
• Conclusions and recommondations

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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

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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
Source Eurostat, EREC, AEBIOM.
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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

• A policy focused on biofuels and electricity
  might deliver 145 Mtoe final energy,
• whereas a policy concentrated on efficient
  conversion and heat might provide 195 Mtoe
  final energy.
• ,

Primary energy
Final energy
losses
Source AEBIOM.
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Eurostat Statistics
Balance sheets 2006
Primary biomass89 025 ktoe
Input to electricity and CHP27 312 ktoe
Bioelectricity7 731 ktoe89 908 GWh
Electric efficiency 28,3 Global efficiency
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Input to DH3 538 ktoe
Derived heat7 686 ktoe
Biomass for households and services35 005 ktoe
Biomass for industry17 298 ktoe
Biofuels5 375 ktoe
Defining the target as a percentage of the final
energy favours the heat market very much !
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The efficient use of biomass in 2020

• AEBIOM targets (Mtoe)

2005 2020
Total primary biomass 82 220
Final heat 57,5 147,5
electricity 6,9 17,2
biofuels 3,1 30,0
total final energy from biomass 67,5 194,7
Source AEBIOM.
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Final energy from Renewables in EU 27
in 2005 and 2020
20
25 Mt pellets1 of RES
8,5
50 Mt pellets7 of RES
Strong government policies are necessary to
develop bioenergy in an efficient way! Pellets
will play a significant role!
Source AEBIOM, Eurostat.
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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?

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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!

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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!

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How to use this land to optimize bioenergy
production?
use 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

• Scenario by AEBIOM Oct. 2008

Source AEBIOM.
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The double harvest producing first generation
fuels

• 100.000ha arable land for biofuels in Europe
  delivers
• In the case of ethanol
• gt240.000m³ ethanol 130.000 t gasoline and
• gt180.000 t protein feed (DDGS) 60.000ha soja
• In the case of biodiesel
• gt 120.000t biodiesel 100.000 t diesel and
• gt 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!

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The utilization of the European harvest of cereals
Average harvest 285 Mt for food 50
Mt for energy (2007) 4,2 Mt
Source ebio.
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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
• In the past 10 set aside and yet surplus
  production of 12 and annual export between 10
  and 30 Mt cereals.
• Use for ethanol production in 2007
• 4,2 Mt cereal 0,5 Mha

Source Eurostat.

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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
• In the past 10 set aside and yet surplus
  production of 12 and annual export between 10
  and 30 Mt cereals.
• Use for ethanol production in 2007
• 4,2 Mt cereal 0,5 Mha
• 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.

4,5
5
3
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!
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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

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AEBIOM targets for bioenergy, Mtoe

• 2004 EU25 Scenario 2020 EU27

Source AEBIOM.
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Structure

• Resources
• Efficiency
• Technologies
• Investment opportunities
• Conclusions targets, directive, political
  framework, opportunities

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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

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Contribution of biomass to final energy
Example Given 100.000 m³ wood (719 TJ)
Primary energy
Final energy
Source AEBIOM.
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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.

Source Eurostat.
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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!

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Structure

• Resources
• Efficiency
• Technologies
• Investment opportunities
• Conclusions targets, directive, political
  framework, opportunities

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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.

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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

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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.

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Structure

• Resources
• Efficiency
• Technologies
• Investment opportunities
• Conclusions targets, directive, political
  framework, opportunities

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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!

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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.

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Example District heating with biomass in Austria
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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 70 000
• Support rural development prog. 85 000
• Own capital and bank credit 125 000
• Total 280 000

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Village heated with heating oil
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Village heated with local district heating plant
based on biomass
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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!

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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

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Investment opportunities Liquid fuels

• Ethanol
• Biodiesel
• 2nd generation fuels
• Biogas
• In the future biodiesel from algae

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Structure

• Resources
• Efficiency
• Technologies
• Investment opportunities
• Conclusions targets, directive, political
  framework, opportunities

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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.
• Sufficient biomass potential in Europe, but is
  has to be developed
• mobilization of wood, incentives for new SRF,
  use of permanent grassland for energy
  production, training
• 2) The dilemma of food versus fuel can be solved
• yet more attention to the questions
• How can we better take into account the annual
  variations of the harvest?
• 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

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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.

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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

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Thank you for your attentionHeinz
Kopetzinfo_at_aebiom.org