1. Fødevareøkonomisk Institut Morten Gylling Food and Ressource Economic Institute Rolighedsvej 25 1958 Frederiksberg C Tlf. 35 28 68 83 E-mail: gylling@foi.dkgylling@foi.dk ”Contribution of agriculture to energy production” Tallin 7th October 2005 Bioenergy resources from Danish Agriculture

2. Fødevareøkonomisk Institut The Danish Energypolivy 4 main targets: ─stabilising energy use at ~ 800 PJ ─continued economic growth ─reduce CO 2 emission (Koyoto) ─substainable development Instruments: ─taxes ─tax excemptions ─subsidies ─regulations ─R, D&D

3. Fødevareøkonomisk Institut Primary energy production - Denmark PJ1990199519992000200120022003Change ”90-”03 Total production4236569991164113812021194182% Biomass total4860687075828846% Straw1213 1213151634% Wood chips2233346261% Fuel wood9111012 111231.7% Wood pellets2233335202% Industrial wood waste667779713.5% Biogas0.7233334376% Waste15232930323436134% Biodiesel----122 Fish oil0.70.3--0.20.10.3-65.2% Biomass % of domestic consumption6%7%8% 9%10%11%

4. Fødevareøkonomisk Institut District heating supply (cities & villages):  120 biomass-to-district heating plants (heat only) – straw & wood (50/50)  10 straw or wood-chip-fired decentralised power plants (CHP) (biomass as main fuel)  30 waste-incineration plants - 18 CHP and 12 heat  6 centralized (big) power plants (CHP) which use biomass, among other fuels,  30 district heating plants (CHP) using biogas as the main fuel Key figures – use of biomass/waste

5. Fødevareøkonomisk Institut Key figures – use of biomass/waste Industrial plants:  200 industrial/institutions heat and CHP plants Small heat installations (houses, farms):  500,000 wood-burning stoves  70,000 wood-burning boilers  30,000 wood-pellet furnaces  9,000 straw furnaces

6. Fødevareøkonomisk Institut Fuel tax excemption for biomass Fuel costs for district heating production(2002)

7. Fødevareøkonomisk Institut ”Green reward” - biomass to electricity  Power producers will receive a ”green reward” on top of the market price  A very complex set of rules (Electricity Supply Act.)  Example biogas: Fixed price 0,60 DKK pr. kWh feed into the grid

8. Fødevareøkonomisk Institut R&D – biomass & waste  Combustion – co-firing  Characterisation of fuels  Gasifikation (thermal)  Biogas (bakteriel)  Liquid biofuels – bioethanol, DME  Largest single focus area within the applied energy R&D programmes

9. Fødevareøkonomisk Institut R&D trends – change of focus  R&D regarding technologies that can lead to a broader biomass fuel band  More advanced conversion technologies - beyond combustion  Liquid biofuels  Biomass to hydrogen

10. Fødevareøkonomisk Institut Future biomass resources Should - technology adapt to ressources or resources adapt to technologies

11. Fødevareøkonomisk Institut Future biomass resources Straw30 - 36 PJ Energy crops14 - 26 PJ - short rotation coppice - mischantus - ”energygrain” Grain -”unlimited” (5% bioethanol admixture ~ 390,000 tonnes) Oilrapeseed ”unlimited” (5% biodiesel admixture ~ 350,000 tonnes)