Low Carbon Competitive energy supply – A Member State perspective

Bioenergy

May 2013Timo Ritonummi

Ministry of Employment and the EconomyFinland

Finland, total energy consumption 1970–2011, PJ

From Oil dominance to better balance

Total energy consumption 2011- share of Renewables 29 %

* in RES-directive goal 38% (of end-use!)- share of Bioenergy 23 %

Renewable energy sources 1970–2011, PJ

Bioenergy in Finland• Finland is one of the world

leaders in the utilisation of wood-based fuels

• Almost 80 % of RES is wood-based bioenergy

• Strong connection to forest industry

• The increase of the use of forest chips in power and heat production (multifuel boilers) will be based on cost efficiency, support:

• Bioenergy 0... 13 €/MWh,e• Depends on CO2, with ~20 €/t: 0

• Heat pumps 0 ... €/MWh• Wind power 83.5 €/MWh,e• Biogas 83,5 €/MWh,e

Electricity supply 1970–2011, TWh

CHP in big role; market based; main user of bioenergy;most boilers – all latest - multifuel (FBB – CFB, BFB)

Shares of energy sources in electricity supply, % (2011, total 84.6 TWh)

CHP District Heat 18 %CHP Industry 11 %CHP total 31 %

Nuclear power- in operation 4 units- under construction 1- in planning phase 2

Wind power2020 goal 6 TWh2025 goal 9 TWh

”Bioenergy climate” in Finland

• Strong co-operation with government, research & industry• Finnish Funding Agency for Technology and Innovation,TEKES

• Tight connection with forest industry, synergy in biomass supply• Whole value chain considered, not just part optimization• Careful benchmarking for solution, not jumping into dark with

goal setting• Tailor-made solutions in R&D and in politics (bioenergy #1)• Case NER300: only bioenergy (biorefeneries) considered earnestly

and proposed, one project (AjosBTL) + Finnish company UPM in France got funding

• Updated Energy and Climate Strategy (for 20/20/20 goals) published in 03/2013, strengthens the role of bioenergy link

1 m3 is about 2 MWh

Jyväskylä

Lappeenranta

TurkuPorvoo

Pori

Rauma

Kerava

Kouvola

Joensuu

Kajaani

Oulu

Pietarsaari

Jämsä

Hämeenlinna

ValkeakoskiTampere Mikkeli

Seinäjoki

Rovaniemi

Use, m3

200 – 500 32 225 (65 GWh)

500 – 1 000 43 262 (86 GWh)

1 000 – 5 000 442 177 (884 GWh)

5 000 – 10 000 322 944 (646 GWh)

10 000 – 50 000 1 161 593 (2 323 GWh)

50 000 – 100 000 653 419 (1 307 GWh)

More 100 000 4 060 525 (8 121 GWh)

Total 6.85 million m3 (13.71 TWh)

Total use, m3

Use of Forest Chips at Heating and Power Plants in Finland in 2011

Bioenergy – Finnish companies handle the whole chain Feedstock - Feedstock Handling – Harvesting & Logistics

- Conversion to power, heat and fuels

Thermochemical pathways

Synthetic liquid fuels and/or hydrocarbons through gasification

Bio-methane and other bio-synthetic gaseous fuels through gasification

High efficiency heat & power generation through gasification

Examples of Finnish development 1/3

Biomass-to-Liquids process:Forest biomass → gasification → Fischer-Tropsch synthesis → bio wax → bio dieselStatus:Pilot phase

Finnish consortia:• Neste Oil & Stora Enso• UPM & Andritz• Vapo & Metsä Group

Biomass gasifier integrated in a pulverized coal fired boiler:• Lahti I: Foster Wheeler gasifier, in operation since 1998• Lahti II: Metso gasifier, in operation 2012• Vaskiluoto (Vaasa): Metso gasifier, in operation 2012• Joutseno: Andritz gasifier, in operation 2012

Bio-methane through gasification:R&D to produce synthetic bio-methane from biomass through gasification• Technical Research Centre of Finland VTT

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Thermochemical pathways

Intermediate bio-energy carriers through techniques e.g. pyrolysis and torrefaction

Torrefaction:• dried wood chips are treated in 250–300oC, properties resemble those of coal• VTT has ongoing R&D and European co-operation• Finnish companies are jointly developing torrefaction

Pyrolysis oil • forest residues as raw material• industrial partners: Metso, Fortum, UPM• research partner: VTT • test runs in pilot scale in Tampere since 2009• Fortum builds a first commercial biomass based pyrolysis oil plant in Finland. Metso will deliver the plant, which will be in operation in 2013.

Examples of Finnish development 2/3

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Biological and chemical pathways

Ethanol and higher alcohols from ligno-cellulosic feedstock through chemical and biological processes

Hydrocarbons (e.g. diesel and jet fuels) through biological and/or chemical synthesis from biomass containing carbohydrates

Bio-energy carriers produced by micro-organisms (algae, bacteria) from CO2 and sunlight

Hydrotreated vegetable oil (HVO) technology •Neste Oil NExBTL diesel: Development towards new raw materials (e.g. microbes)• UPM Oyj: biodiesel from tall oilinvestment decision in 2012; the plant in operation 2014

Bioethanol, biochemicals, pulp and paper fibres• Chempolis Oy• raw material e.g. agricultural residues• technologies developed by Chempolis • demonstration biorefinery in operation in Oulu since 2008

Bioethanol• St1 Biofuels Oy: distributed bioethanol production from waste streams• development towards ligno-cellulosic raw materials• UPM Oyj: development on ligno-cellulosic bioethanol from residual fibres

Algae for biofuel production• R&D on a new concept to utilize industrial waste streams in cultivation of algae for biodiesel and biogas production • VTT & other Finnish research institutes• 13 Finnish companies participating• international co-operation

Examples of Finnish development 3/3

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Limited Company (reg. 16.7. 2008)

Shareholders: major global companies (28) which have a significant stake in

energy and environment related R&D&I in Finland the most essential Finnish research institutes (17)

Industry driven joint R&D&I, open innovation platform

14

Sustainable Bioenergy Solution for Tomorrow (BEST) program

• Program duration: 4 years (2+2)• Estimated volume per year: 4 MEUR• Consortium partners:

• Companies (20):• Andritz, Arbonaut, Ekokem, Fortum, Gasum, Helsingin Energia,

Indufor Oy, Inray Oy, Mantsinen Group, Measurepolis Development Oy, Metso Automation, Metso Power, Metsä Group, MW Power, Neste Oil, Pohjolan Voima, Senfit, Stora Enso, UPM, ÅF-Consult

• Research organizations (13):• Aalto University, European Forest Institute (EFI), Finnish Geodetic

Institute (FGI), Finnish Environmental Institute (SYKE), Finnish Forest Research Institute (Metla), Finnish Institute for Occupational Health (FIOH), Lappeenranta University of Technology (LUT), MTT Agrifood Research Finland, Tampere University of Technology (TUT), University of Eastern Finland (UEF), University of Helsinki (UHe), University of Oulu (UOulu), VTT