EU Policies and Goals

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• EU Policies and Goals -
• Sweden as an Example
• St Petersburg, 060516
• Kent Nystrom, Swedish Bioenergy Association,
  Svebio

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The Swedish Bioenergy Association
The Swedish Bioenergy Association, Svebio, is a
non profit, non governmental member association
with 400 members, whereof 300 enterprises Svebios
mission is to increase the use of bioenergy in
an environmentally friendly and economically
optimal way
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Contents

• EU decisions and directives
• Development in Sweden
• Oil and gas
• Directive and certificate on electricity
• Liquid fuels
• EUs targets
• Biomass potentials in Sweden
• Global biomass potentials
• Equipment markets

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Strategic EU decisionsImportant EU- decisions
influencing the member states energy politics

• The White Paper on Renewable Energy Sources,
  November 1997 6 -gt 12 from 1995 to 2010 gt
  trebling of bioenergy
• Kyoto- agreement, December 1997 The EUs member
  states shall decrease their CO2-emissions with 8
  as an average from 1990 to 2008-12
• The Green Paper Towards a European strategy for
  the security of energy supply, November 2000
  Decrease the imports of energy to the EU. It is
  now more than 50 and will reach 70 within 20-30
  years with business as usual
• Biomass Action Plan, December 2005 Program on
  increasing demand for biomass, improving supply,
  reducing technical barriers and increasing
  research. 3 main tasks Competition,
  sustainability and secure supply. Europe has to
  get rid of its dependence of fossil fuels.
• The Green Paper A European Strategy for
  Sustainable, Competitive and Secure Energy,
  March 2006 Europe needs to seriously deal with
  the climate change according to the Lisbon
  Treaty -save 20 energy until 2020, -ratify a
  long term plan on renewable energy sources.
  Europe needs a common energy politics to meet the
  challenges of high energy prices, increasing
  dependence of import, strongly growing energy
  demand and the greenhouse effect.

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Important EU- directives

• Directive on the promotion of electricity from
  RES
• Directive establishing a scheme for greenhouse
  gas emission allowance trading
• Directive on the promotion of the use of biofuels
  or other renewable fuels for transport
• Directive on the promotion of cogeneration based
  on a useful heat demand
• Directive on the energy performance of buildings
• Directive on the promotion of heat from RES ???

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White Paper on RES Development in Sweden

• Until today

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Bioenergy in Sweden 1970-2004 (7 last year!!!)
TWh
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The Swedish pellets market (tonnes/year)
Source Swedish Association of Pellets Producers
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The bioenergy share of the total energy
utilization in Sweden

• 1970 9
• 1980 11
• 1990 15
• 2000 20
• 2004 25

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The Kyoto AgreementSwedish CO2-emission politics

• EUs burden sharing agreement 4 for Sweden
  from 1990 until 2008-2012
• The Swedish parliaments decision - 4

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• Security supply
• The governments commission against oil
  dependence
• The task is to create conditions for Sweden to be
  independent of oil until 2020.
• That will focus on biofuels.
• Report in June.
• Driving forces
• Increasing prices (declining resources)
• Secure supply
• Climate change

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Price trends, crude oil fossil gas
USD/MWh
Källa www.oilnergy.com
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My view is that easy oil has probably past
its peak Written statement by Jeroen van der
Veer, CEO Royal Dutch Shell, 24 Jan 2006
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Remaining fossil oil and gas
World remaining reserves over annual production
gives the amount of years that we can continue
with the same production
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Consequences of the greenhouse effect
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EU directive on Electricity from RES
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How to meet that on a local levelElectricity
certificate in Sweden

• Electricity generated by RES like biomass, small
  hydro, wind and photovoltaic gets certificates
• It can be sold on a specific market
• The market is created by a demand for a
  compulsory quota for end users
• The quota was 7,4 electricity from RES of the
  total demand in 2003 (8,1 in 2004 and 10,4 in
  2005)
• It will increase to 16,9 in 2010
• Started in May 1st, 2003 and is so far paid as
  much as the electricity itself
• Right now a governmental suggestion on prolonging
  the certificate system until 2016. Decision in
  the parliament this spring.

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Electricity certificates a success

• A very strong response from the pulp industry and
  the district heating companies. Both sectors
  expand their CHP capacity

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Biopower 2002-2010
Waste Peat Biogas Other bio Pulp ind
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EU directive on renewable fuels for
transportEthanol for the transport sector in
Sweden (1000 m3)
Doubling every year
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The future development in the EU
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Reaching the targets 2010?

• The Electricity from RES- directive 22 for EU
  15 and 21 for EU 25 will be 18 with current
  steering instruments
• The Alternative liquid fuel- directive 5,75
  will be 3 without stronger steering instruments
• The share of RES 12 according to the white
  paper, will be 8.
• 10 if the 21 and the 5,75 will be reached. To
  reach 12, it demands very strong actions on the
  heating and cooling markets.
• Biomass Action plan and The Green Paper A
  European Strategy for Sustainable, Competitive
  and Secure Energy, are examples of such
  stronger actions.

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The future in Sweden

• Biofuel potential

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Utilizing and potentials for different biofuels

• Sources Utilizing 2004 Energimyndigheten.
• Potentials SGU, Renhållningsverksföreningen,
  LRF, SLU och Skogsstyrelsen

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The future in Sweden

• Utilising potential

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Energy puzzle laid by Swedish NGOs For heat and
electricity (excluding the transport
sector) 2020 Bioenergy 170 TWh Vind
power 28 TWh Solar 2 TWh Energy
saving 62 TWh Hydro power 67
TWh Total 329 TWh Utilization
2005 311 TWh
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The future of biomass

• On a global level

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Biomass potentials for export
Source IEA, Task 40
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Potential for export of biomass is enormous
with intensive production programmes.

Agricultural land lt100- gt300 EJ Marginal lands
lt60- 150 EJ Agriresidues 15-70 EJ Forest
residues lt30-150 EJ Dung 5-55 EJ Organic waste
5 - gt50 EJ TOTAL lt 250 - gt 500 EJ
500 EJ 180 000 TWh The global energy demand
110 000 TWh
Source IEA, Task 40
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• Transport costs

Truck 200 km 20 Railway 600 km 20 Ship 10
000 km 20
Source Bo Hektor, Talloil
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Biomass will be a large scale global commodity

• Biofuels will be produced where it is cheap and
  used where the demand is strongest.
• Transport costs pretty high but no barrier.
• This development will take some time. Its a
  complicated chain. Many pieces must fit in.
• Large scale necessary to minimise costs.
  Initially, large financing needs.
• Pricing in competition with other biofuels, not
  with oil.

Source Bo Hektor, Talloil
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A tremendous equipment market in Europe

• The WP on RES implies an increase of 90 Mtoe
  bioenergy in EU15. That means 100 BEUR.
• The potential in the small scale heat market
  means 300 BEUR in EU15 until 2010.

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Conclusion

• Stronger steering instruments from the EU
  speeding up implementation of renewable energy
  sources
• Still the EU doesnt reach its goals for 2010
• The Swedish politics in favour of biomass
  utilization (oil independence until 2020,
  electricity certificates)
• Swedish CO2- emission politics -4 in stead of
  4 until 2010
• Bio energy in Sweden supply 25 of the total
  energy demand
• The bio energy potential in Sweden 200 TWh
  (almost doubling the todays figure)
• Globally there is a tremendous amount of biomass
• The European market for bio energy equipment is
  huge
• gt The bio energy future is bright!!!

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