Embed Size (px)
Policies and funding of alternative fuels
Gustav Tibblin Director Business Administration Södra March 2015
1
The Södra
2
Group
The Group in brief
• We handle 40 TWh of wood p.a.
• World top 5 softwood pulp producer
• Europe top 5 sawn timber producer
• Scandinavian top 2 interior wood producer
• Sweden top 3 bioenergy producer
• Revenue of SEK 17 billion (1,8 billion Euro)
• 3,500 employees
• Owned by 50,000 private forest owners
3 17 March 2015
4
Södra and energy
• Out of the 40 TWh of wood we handle yearly…
• …we produce 17 TWh of energy
‒ 12 TWh used internally
• Heat, steam, electricity, biooils
‒ 5 TWh sold externally
• Electricity, fuel for central heating, hot water for central heating, pellets, biooils
4
Great potential to do more within bioenergy!
Production 100 000 ton p.a. 2 % of Sweden’s diesel consumtion Owners Preem 25% Sveaskog 25% Södra 25% Lars Stigsson 15% Lawter 10% Ongoing project Investment in rosin production. 23 000 ton p.a.
Sweden and fuels
8
• Let’s take the environmental impact for given…
• Sweden has no oil, no gas, no coal, no fossile fuels
- Total dependence on import of fossil oil
Energy in Sweden, TWh
Source: Energimyndigheten, Energiläget 2014
Power production, 162 TWh
Hydro
Wind
Nuclear
Back pressure
Comb. Heat/power
Industry consumption
Power
Central heat
Oil
Natural gas
Coal
Bioenergy
Transport consumption
Power
Oil
Natural gas
Bioenergy
Household consuption
Power
Central heat
Oil
Natural gas
Bioenergy
Sweden and fuels
10
•
•
-• Sweden has a vast richness in productive forests
Annual growth and actual fellings
11
2020 2030
25-30 milj m3sk
or 40 – 50 TWh
0
20
40
60
80
100
120
140
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Årlig tillväxt1
Annual increment1
Årlig avverkning2
Gross felling2
Milj m3sk, mill. m3 standing volume incl. bark
Figur 7.2 Årlig avverkning och tillväxt Annual gross fellings and increment
Sweden and fuels
12
•
•
-
•
• Substantial impact on national trade balance
Substantial impact on Sweden’s trade balance
2012, Billion SEK Forest industry Oil and petroleum
Export 123 104
Import -31 -162
Net export 92 -58
The Swedish trade balance was + 85 billion SEK 2012
65% of imported oil is used for road transportation
…
If Sweden was to take away fossile fuels from road transportation, substituting it with a mix of efficiency, infrastructure, domestic power and
biofuels, the effect would be 38 billion SEK p.a.
The same as if the forest industry was expanded with 40%. Source: SCB
Sweden and fuels
14
•
•
-
•
•• Real life politics
Real life politics
15
• Sweden’s 10% goal for 2020 is already achieved • Increased taxes hit the biodiesel (RME) market starting 2015
• Current taxation rules will last until end 2015 • After that, tax exemptions is expected to be phased out and quota
systems to be phased in • If quota system will match 10%, then value will be 0 • Investors are not impressed
• Ethanol plant in Norrköping takes write-off of SEK 800 million
Our forests have an offer to the bioeconomy
16
