Metsäntutkimuslaitos Skogsforskningsinstitutet Finnish Forest Research Institute www.metla.fi

Forest energy resources, Forest energy resources, certification of supply and markets certification of supply and markets

for energy technologyfor energy technology

Timo Karjalainen, Finnish Forest Research Institute

Arvo Leinonen, Technical Research Centre of Finland

Lassi Linnanen, Lappeenranta University of Technology

e-mail timo.karjalainen@metla.fi

The Bioenergetics and Biotechnologies

- an effective utilization of waste of timber cuttings and wood processing

14-15 October 2009, Moscow, Russia

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AcknowledgementGlobal forest energy resources, certification of supply and markets for energy technology – GLOENER –project

PartnersFinnish Forest Research Institute (Metla)Technical Research Centre of Finland (VTT)Lappeenranta University of Technology (LUT)

Fundingthe Finnish Funding Agency for Technology and Innovation (Tekes) through ClimBus - Business Opportunities in Mitigating Climate Change programmeStora Enso Oyj, Vapo Oyj, Metso Power Oy, John Deere Forestry Oy, Pentin Paja Oy, Neste Oil Oyj

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estimation of the availability of forest biomass to energy production and markets for the Finnish energy technology

sustainability criteria for bioenergy production and utilisation

case studies assessing forest energy potentials, harvesting technology and biomass plants

participation in the IEA Bioenergy cooperationTask 31 “Biomass production for energy from sustainable forestry”

Task 40 “Sustainable international bioenergy markets: securing supply and demand”

Content / main activities

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Geographical focus

North and South America, representing rapidly growing markets for both supply chain and plant technology for biomass based energy generation

North-West Russia, representing potential supplier of forest biomass as well as emerging technology market near EU

South-East Asia, improvment of palm oil production process which could open opportunities for Finnish technology and know-how transfer

To gather and analyse information about energy sectors, forest energy potentials and infrastucture from the target regions to help Finnish technology suppliers to succeed in the market

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Global potential of modern energywood- accumulation from current fellings and unutilized increment

Source: Anttila P., Karjalainen, T. & Asikainen. A. 2009

• 0.7- 1.2 bill. m3 / 1300- 2400 TWh / 4.7-8.8 EJ

• equal to 1-2 % of the primary energy demand

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European Union (EU 27)Source: Asikainen, A., Liiri, H., Peltola, S., Karjalainen, T. & Laitila, J. 2008. Forest energy potential in Europe (EU 27). Working Papers of the Finnish Forest Research Institute 69. 33 p.

Theoretical forest energy potential 785 mill. m3

Technically harvestable 190 mill. m3

Felling residues 84 mill. m3 (incl. 7 mill. m3 stumps) Total amount of felling residues from current fellings 211 milj. m3

103 mill. m3 from unutilised increment (25% of the unutilised increment) 36 Mtoe or 411 TWh

equals total energy consumption in Finland or 2% of the EU energy consumption

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European Union (EU 27), continuedSource: Asikainen, A., Liiri, H., Peltola, S., Karjalainen, T. & Laitila, J. 2008. Forest energy potential in Europe (EU 27). Working Papers of the Finnish Forest Research Institute 69. 33 p.

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Energy consumption in Finland in 2007

20%

54%46%

68%32%

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Consumption of wood-based fuels in Finland

54%

30%

16%

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Rawmaterial for forest chips consumed by heating and power plants in Finland

0

500

1000

1500

2000

2500

3000

3500

2000

2001

2002

2003

2004

2005

2006

2007

Fo

res

t c

hip

s t

ota

l, 1

00

0 m

3

Unspecified

Stumps and roots

Large-sized timber

Logging residues

Unpruned small-sizedtree

Pruned small-diameterstem

Source: Finnish Forest Research Institute, Metinfo

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Heating and power plants using forest chips

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Sustainability criteria for biomass – views of Finnish stakeholders, results

sustainability criteria for biomass needed and important because of the expanding and globalising nature of the use of biomass, impacts of production and utilisation

strong view that the current bioenergy production and utilisation in Finland are in sustainable levels, thus unnecessary yet to develop the national bioenergy production criteria in Finland 95% of forests certified under the Pan-European Forest Certification

System sustainability criteria needed internationally in order to steer the

production and utilisation of biomass to a more sustainable direction

Finland should participate in the outlining of the sustainability criteria at international level, and in bringing out the Finnish special circumstances environmental, social and economic criteria to be taken into account

Source: Hämäläinen et al. 2008

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Case studies

assessed forest energy resource potential: logging residues, small wood and forest industry residues

assessed the most competitive supply chains and appropriate machine technologies for harvesting and transport of biomass for the power plant and assess the procurement costs of wood biomass

assessed feasibility of woody biomass-based CHP, heat or co-firing plant: power plant technology, power production cost and reduction of emissions

estimated possibilities for Finnish technology suppliers in the area

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Availability of forest chips to Varkaus biofuel production plant in Finland

Availability of forest chips, i.e. technical potential – present usage, as a function of transporting distance.

Stora Enso Varkaus mill one of the investment candidates for a full-scale commercial biofuel production plant owned by a joint venture between Stora Enso and Neste Oil

Source: Laitila J et al. 2008

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Biomass plant in Kostomuksha, Russia

Techno-economic potential of energy wood 180000 m3/a / 360 GWh/a, peat resources 326 TWh

Average long distance transportation 118 km, procurement cost about 13 €/MWh

CHP plant: 40 MW heat, 25 MW steam and 40 MW electricity to the town and the iron pellet factory use 40% of the fuel forest chips, 60% coal or peat

Profitability of the biomass plant require higher price for mazut oil

Energy production costs

0

5

10

15

20

25

30

35

40

45

Biomass+Coal CFB Mazut 15 €/MWh Mazut 30 €/MWh

€/M

Wh

Electricity purchaseOther costElectricity costsFuel costsMaintenance costsOperational costsCapital costs

Source: Raitila et al. 2009

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Availability of biomass, harvesting and energy production in Uruguay studied fuels logging residues, bark, excess roundwood and

agro biomass condensing power plant of 30 MWe, 50 MWe and 70 MWe

analysed electricity production costs 90-100 €/MWh using the

cheapest materials (bark and felling residues)Breakdown of the electricity production costs in 30 MW power plant

0

20

40

60

80

100

120

140

Ele

ctri

city

pro

du

ctio

n c

ost

s

Capital costs Operational costs Maintenance costs

Fuel costs Electricity costs Other cost

€/MWh

Source: Virkkunen et al. 2009

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Wood pellet production in British Columbia, Canada about 1 mill. tons of industrial

woody residues in 2008 200–500 million m3 of

unharvested mountain pine beetle-killed wood

availability 1,9 – 3,2 mill. tons/a raw material for 10-20 new pellet

factories (using 150000 tons/a) payback time for the investment

about 3 years (15-18 % calculated internal rate of return)

Source: Wiik et al. 2009

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Conclusions

estimates of the wood energy potential on the global level demonstrate that the potential limited regionally wood fuels can play significant role in energy

market and can help in meeting emission reduction targets

increasingly important to ensure that biomass production and utilisation in energy production is sustainable due to internationalisation of biofuel markets

case studies provided valuable information possible to direct further investigations and technology

knowhow to promising regions / areas

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