1. ENERGY Success factors of bioenergy for CHG mitigation in Scandinavia Satu Helynen VTT Energy 1. Use of biomass based fuels in Europe 2. Role of forest industry in bionergy sector 3. Combined heat and power (CHP) production 4. Development of new technologies on bioenergy 5. Financial and legislative incentives 6. Future challenges IEA Bioenergy Task 38 workshop 12-13 November 2001 in Edinburgh

2. ENERGY Current use of biomass fuels Source: ALTENER AFB-net V, Task 2: Import & Export Possibilities and Fuel Prices

3. ENERGY Source: ALTENER AFB-net V, Task 2: Import & Export Possibilities and Fuel Prices Annual biomass resources and the share of the present use

4. ENERGY Annual fellings in Europe Finnish Statistical Yearbook of Forestry 1999, Temperate and Boreal Forest Resources Assessment 2000, FAO

5. ENERGY

6. Existing power and heating plants using biomass in Finland Combustion pcs/MWth - grate firing up to 100 MW>200/>2000 - fluidised bed boilers:5 - 300 MW bubbling bed30/2500 20 - 600 MW circulating bed15/1500 - recovery boilers for black liquor up to 500 MW 20/4300 Gasification - fixed bed gasifiers up to 10 MW10/50 - fluidised bed gasifiers up to 100 MW2/100

7. ENERGY Background for the development and choice of fluidised bed technology t debarking of logs was moved to paper, pulp and saw mills: boilers needed for demolition of wet bark (up to 60 % moisture content) t wet bark did not satisfy steam demand of the mill alone, coal and peat were used as additional fuels t municipalities built peat fired pulverised fuel boilers that have converted to bubbling beds using also wood chips t paper and pulp mills converted grate boilers to bubbling beds in order to utilise in the same boiler milled peat, coal, wood chips and sludges

8. ENERGY

9. Biomass CHP technologies Power output, MW e FuelsTechnologyStatus < 1solid biomassStirling (< 500 kWe)D biomass (flue gas)ORC -Organic Rankine CycleD biogasEngineC 1 - 3solid biomassDirect combustion and steam turbine/engineC solid biomassGasifier and engineC liquid biomassEngineD > 5 (max. 280 MW under construction) solid biomassGrate or fluidised bed combustion and steam turbine (Rankine) C solid biomass and waste Gasifier connected in existing steam boiler (Rankine) C solid biomass and waste Pressurized gasification or combustion with gas and steam turbine (IGCC) D

10. ENERGY Combined heat and power (CHP) production in municipalities

11. ENERGY Finnish experiences how to reduce prices on biomass-based fuels t competition and operating fuel market are needed: more than one fuel supplier operating nationally and hundreds of local contractors t presently short-term contracts (<1 year) and contracts with several suppliers are preferred by energy producers t boilers and plants are designed for several fuels: biomass is used only if it is the most competitive alternative t harvesting and logistics of biomass-based fuels is integrated to wood procurement for pulp and saw mills t harvesting methods are developed systematically

12. ENERGY Fuel prices in Finland, Denmark and Sweden for plants 1 - 5 MWth

13. ENERGY Fuel prices in Finland, Denmark and Sweden for plants over 50 MWth

14. ENERGY Production methods for logging residues in Finland

15. ENERGY LOGGING RESIDUES t Chipping 34 % of costs t Average price in 1999 – 44 FIM/MWh – 14.7 DEM/MWh SMALL-SIZED WOOD t Harvesting 31% of costs t Average price in 1999 – 61 FIM/MWh – 20.3 DEM/MWh SUPPORT FOR WOOD FUELS t Harvesting; young stands 14 FIM/MWh (30 FIM/m 3 ) t Chipping 12 FIM/MWh (10 FIM/m 3 loose) young stands t Electricity 25 FIM/MWh e (6 - 12 FIM/MWh for fuel) Cost structure and prices of wood fuels in Finland

16. ENERGY Stoves and small boilers for buildings: large potential to reduce the use of oil t Operation and maintenance should be easy t High efficiency and low emissions t -> High quality fuels: Pellets and bio-oils

17. ENERGY Financial incentives for promotion of bioenergy in Finland t Investments on R&D&D in order to reduce costs of fuels and energy production t Investment subsidies: 5 % - 50 % (demonstration) t Carbon dioxide taxes for fossil fuels, since 1997 only for heat production because deregulation of electricity market t Subsidies for indigenous fuels to make them competitive compared to imported fuels: electricity produced by wood fuels 4.2 euros/MWh (wind 6.9 euros/MWh)

18. ENERGY Energy taxes in Finland 1990-2001

19. ENERGY Future challenges Scandinavian countries have been during the last 30 years a demonstration field for new large scale bioenergy technologies: Available commercial products for biomass and waste: t bubbling fluidised bed boiler t circulating fluidised bed boiler t atmospheric fluidised bed gasifier Under development: t once-through supercritical fluidised bed t fixed bed gasifier connected to an engine t new cofiring concepts for coal boilers t PFBC and IGCC t gasification of black liquor t concepts for integrated bioproduct (fibre, chemicals, liquid biofuels, pellets, etc.) and bioenergy production from biomass and waste