Challenges in developing

bioenergy in Norway

Erik Eid Hohle The Energy Farm – Center for bioenergy

NILF - December 6th 2012

www.energigarden.no

The Energy Farm

Center for Bioenergy in Norway

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• Bioenergy in theory and practise

• Consulting and training

• Courses and seminars

• Demonstrations and guided tours

• Production of biofuels and bioheat

www.energigarden.no Tel +47 61 33 60 90

post@energigarden.no N-2760 Brandbu – Norway

1. The Energy Trail

2. Forestry machinery and transportation of wood.

3. Production, storage and transportation of wood

chips

4. Drying and storage of biofuels.

5. 100 kW wood chip plant

6. Farmhouse – water bourne heat system

7. Production of firewood.

8. Test field for oilseeds.

9. Test field for energy crops.

10. Drying plant for grain, oilseeds, peas, etc

6

16

12

3

10

9

7

2 2

13. Solar heat 14. Biogas plant

10. Drying plant for grain, oilseeds, peas, etc 15. Seminar room. Offices, study rooms and

library 4. Drying and storage of biofuels 6. Farmhouse – water bourne heat system

5. 100 kW wood chip plant 12. Vehicles on biodiesel 1. The Energy Trail 7. Production of firewood 11. Production of biooil and biofuel.

8. Test field for energy crops

3. Production, storage and transportation of

wood chips 9. Test field for oilseeds

2. Forestry machinery and transportation of

wood

16. The Exhibition Centre ”Bioenergy – Environment,

Technics and Markets”

11. Production of biooil and biodiesel.

12. Vehicles on biodiesel

13. Solar heat

14. Biogas plant

15. Seminar room. Offices, study rooms and library.

16. The Exhibition Centre ”Bioenergy – Environment, Technics and

Markets”

17. ”The Global Greenhouse” – a green meeting place

17. ”The Global Greenhouse” – a green

meeting place

2

15 11 4 5

12

8

1

17

13

14 6

6

12

16

Energy carriers for heat production at

The Energy Farm

EN

ER

GY

Hydro-

power

Solar

Solar, hydroelectric and

bioenergy heat

SUMMER FALL WINTER SPRING SUMMER

Bio: 45 Eur/MWh

Hydroel:65 Eur/MWh

Solar: 65 Eur/MWh

The bioenergy region of Hadeland

6

Inhabitants: 25 000

Bioenergy utilization:

Small scale heating

Wood stoves 11 000

Pellet furnaces 150

Central heating, fire wood 25

Central heating, wood chips 20

Central heating, straw 1

Large scale heating

Bark and saw dust 4

Straw 1

Biogas from waste 1

Biofuel

Biodiesel vehicles 110

Biopower

Biogas from waste 1

• 50 % increase in bioenergy use (1986 -2010)

• Biogas use and replacing fossile fuels have

lead to very low incease in CO2 emission 1990-2010 compared

to the rest of Norway.

Norways energy challenge

The green heat

market in Norway

must be given

political priority –

also to promote a

better use of our

valuable green

hydro power

82 %

12 % 6 %

Other renewables Bioenergy

Non-renewables

Annual world energy use is

116.000 TWh

- Bioenergy:12 %

Bioenergy is the only or most

important source of energy

for more than 60% of the

world population

World energy use

70 % Bio

20 %

Hydro

6 % Wind

2 %

Solar

2 %

OthersRenewable energy in EU 2010

Bioenergi

Vannkraft

Vindkraft

Solenergi

Øvrige

Renewables have

increaesed their share

from 6 to 12%

from 1990 to 2010

Total Norwegian consumption of energy 240 TWh .

The use of bioenergy 2012 is approx 16 TWh

- or 7% of the total use

The energy situation

in Norway

We produce 10-12 times more energy than we consume.

The domestic consumption is dominated by hydro power in

the stationary energy sector and fossil fuels in the transport sector.

In spite of our high energy production we some years

are dependant on imported electricity, due to lack of flexibility

in our energy distribution systems:

The distribution is totally dominated by electricity grids,

and unsufficient district heating.

Our energy export is mainly fossil oil and gas, but also

small quantities of hydro power and bioenergy.

Too little flexibility – too high dependency on electricity

The electricity prices in Norway has increased and

varied considerably since 2000. We have traditionally

had low electricity prices (4-5 eurocent/kWh for

households) compared to other countries, but from

2003 the electricity prices for households have

increased to 9-15 eurocent/kWh in the heating season.

Consequently we need to develop alternatives in the

heat market – and start using more biomass for energy.

..and introduce a feed in system for bio heat (like UK?)

Marked

Ressurser

14 TWh more

bioenergy within

2020 ?

H

CHP

CHPF

= Biovarme

= Biobasert

kraft/varme

= Biobasert

kraft/varme og

biodrivstoff

H

H

H

CHF

CHP

CHPF

CHPF

CHPF

Heating in the Nordic countries by energy carrier

and energy sources

District heating is mainly based on biomass

Electricity in Norway is mainly hydro power

Electricity in other nordic countries is a mix of hydro power,

coal and nuclear

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Norway Sweden Denmark Finland Iceland

electricity forheating

point heating

district heating

Energy use in Nordic homes

Energy carrier and energy use per m2 in Norwegian public buildings

Electricity District heating Others

End use of energy by house type in Norway

Increased consumption of district heating

in Norway – but from a very low level

(1% increasing to 5%)

The consumption of district heating was 3,3 TWh in 2009.

The service industry consumed more than two thirds of this.

-

1 000

2 000

3 000

4 000

5 000

6 000

El-kjel

Olje

Gass

Bioolje

Bio

Avfall

Ind.SP

CHP

VP

How can we develop

the Norwegian heat market:

1%

30%

39%

10%

10%

10%

CHP

Wasteheat

Bioheat

Solar

Vind

Electricity

The heat market in 2020: 50 TWh – or a doubling

- a possible target?

Our biomass potensial is theoretically more than 400 TWh

(Close to the double of todays total energy end use)

The technical potetial is today appr. 50 TWh.

To reach the governments goal to double the use of

Bioenergy to 28 TWh in 2020 we also need

to develop more efficient production chains and

infrastructure from the forest to end user in the heat market.

More bioenergy –

technical challenges

Thus we have introduced a support program

for harvesting and chipping low quality

timber and small whole trees from thinnings

and overgrown, ababandaned pastures.

The support is 3-6 €/lm3 or 0,5-1 cent/kWh

The markets for pulp and paper is now so bad

that we also need to develop alternatives to

this way of refining our spruce and pine timber.

The growing surpus of pulp and paper timber –

and lower prices - means that a larger share of

this raw material is finding its way to the

bioenergy market.

The Norwegian Governments

Bioenergy Strategy Plan 2008-2020:

Increase the use of bioenergy from 14 to 28 TWh/year

-Mix of political goals: More renewable energy, less GHG,

rural development, employment.

-The government programs to achieve the objectives:

and means for achieving the objectives:

- State investment institutions support programs:

-Enova: 15-25% investment subsidies to large scale

bioheat&power companies

-Innovation Norway : 30-35% investment subsidies to

small and medium scale bioheat companies and farms

-Ministry of food and agriculture/SLF : Wood chip

production support of approx. 0,5 - 1 eurocent /kWh

Example: The Inland region

We need to organize the

Bioenergy sector and value

chain more efficiently

The use of bioenergy in the Inland region

Industry

Sawmills etc.

ca. 40%

Households

(woodfuel)

40%

District

heating 20%

Organizing the bioenergy network and

cluster in the Inland region

”Arena Bioenergy Inland ” – organization map

Bioheat

Bio

Waste

Bio

Fuels

Biopower

Bio

resources

Cluster development

and

networking

Information

and

Society

Innovation

and

commersialisation

Competence, education

and

R & D

Medium scale bioheat company:

Oplandske Bioenergi AS

Small scale bioheat company:

Torpa Biovarme AS

Large scale bioheat & power

company:

Eidsiva Bioenergi AS

Bioheat companies

Three examples

Bioheat delivery example

Torpa Biovarme AS

Torpa village - 500 kW bioheat

• 500 kW wood chips

• 1,2 GWh annual heat production

• 2000 m3 chips per year

• provides heat to a school, kindergarten,

care center and a small hospital

• Bioheat price: 8,0 €cent /kWh

0005 Gjøvik Stadion

500 kW - 800 000 kWh

0010 Raufoss Syd

400/900 kW - 1 600 000 kWh

0032 Bagn

400/850 kW - 1 300 000 kWh

0039 Tonlia

250/450 kW - 450 000 kWh

0028 Blæstad Gård

200/400 kW - 450 000 kWh

0047 Jørstadmoen

450/900 kW - 1 720 500 kWh

Definisjonsfase

Investeringsfase

Anlegg i drift

2011-02-16

0006 Løten

1 500/3 000 kW - 6 000 000 kWh

0034 Honne (SKS)

450/220 kW - 700 000 kWh

0038 Rudshøgda

2 200 kW – 5,4-7 000 000 kWh

0004 Skogselskapet i Oppland

900/1 800 kW – 2 500 000 kWh

2011?

0072 Tretten

2 500 kW – 9 000 000 kWh

0069 Biri ungdosskole

200/400 kW – 500 000 kWh

0033 Jevnaker

900/1 800 kW - 2 900 000 kWh

0081 Dokka

2 000/4 000 kW – 3 000 000 kWh

2011

0031 Marka

300 kW - 1 000 000 kWh

Eidsiva Energi AS as an example:

Electricity production in Norway 1890–2010: From hydropower to energy diversification and sustainability

• 1890-2000: – Hydropower & grid

development

• 2000-present: – Bioenergy/CHP

– Waste

– Onshore wind

– From fossil to clean fuels

– CO2-reduction

– Security of energy supply

– Energy efficiency

Norways energy challenge

The green heat

market in Norway

must be given

political priority –

also to promote a

better use of our

valuable green

hydro power

Wood stoves – 800.000 in use in Norway

..contributes with a total effect of 5 000 MW on

cold winter days – a significant relief to the

distribution net.

Biofuels for transport

Liquid biofuels – many possibilities

Methanol

Ethanol

DME

Biodiesel

Biogas Hydrogen

Wood/pyrolysis

Used cooking

oil

Vegetable oil

Fish oil

Sources for biodiesel production in Norway

Slaughtery waste

Example of bad coordination between

the market and the polititics:

The biodiesel tax introduced in 2010 – a

challenge for the green investors – and

consequently also for the

government…

The tax was a wrong solution.

Thank you

for your

attention!