© Luonnonvarakeskus© Luonnonvarakeskus1 15.9.2015Teppo Tutkija

Research Scientist Dr. Johanna Routa, Natural Resources Institute Finland

Barents Forest Forum, September 17-18, 2015, Joensuu Science Park, Joensuu, Finland

Wood chips and pellets utilization tendency in bioenergy production in Finland, Sweden and some other European countries 2000-2016

© Luonnonvarakeskus

Content:

• Total Energy use• Forest chips• Solid wood fuel• Pellets• Energy Peat• Conclusions

2 15.9.2015

© Luonnonvarakeskus

Total energy use in Finland (source: Statistics Finland)

3 15.9.2015

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

other

wood ‐based fuels

peat

hydro and wind power

imported electricity

nuclear power

natural gas

coal

oil

Renewables32%Peat 5%

Nuclear 18%

Fossil fuels 40%

Other 5%

Source: Statistics Finland

© Luonnonvarakeskus

Energy prices in Finland (source: Statistics Finland)

4 15.9.2015

0

5

10

15

20

25

30

35

40

45

50

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pric

e €/

MW

h

Peat

Forest chips

Coal

Gas

Source: Statistics Finland

© Luonnonvarakeskus

Use of forest chips in Finland

5 15.9.2015

0

5

10

15

20

25

0

2

4

6

8

10

12€/MWh

milj. m3

Small houses

Powerplants

Price

180190200210220230

2011 2012 2013 2014

€/t

Year

Price of coal €/t

* estimate

Anttila et al.Source: Luke

© Luonnonvarakeskus

• In EU-area Finland and Sweden are the biggest users of Forest chips.

• In Sweden the use of forest chips was around 7 million cubicmeters in 2014

• In Sweden the same problems occurs than in Finland , priceof coal…

• Competitiveness of forest chips has to increase, that use of forest chips can continue increasing

• The raw material base is different between Finland and Sweden

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© Luonnonvarakeskus7 15.9.2015

0

1

2

3

4

5

6

7

8

9

10

2009 2010 2011 2012 2013

Milj

.m3

Finland

Small scale housing

Stumps

Defect round wood

Small trees

Logging residues

0

1

2

3

4

5

6

7

8

9

10

2009 2010 2011 2012 2013

Milj

. m3

Sweden

Stumps

Defect round wood

Small trees

Logging residues

Source: Luke, & Skogforsk

© Luonnonvarakeskus

Solid wood fuel consumption in heating and powerplants in Finland and Sweden

8 15.9.2015Source: Luke, & Skogforsk

0

5

10

15

20

25

30

35

40

45

50

Sweden Finland

TWh

Other

Industrial chips

sawdust

Bark

Stumps

Defect round wood

Small trees

Logging residues

© Luonnonvarakeskus

Use of Pellets in Finland

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0

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016*

1000 t

Domestic production

Domesticconsumption

© Luonnonvarakeskus10 Source: AEBIOM, GTIS, Luke

• With a consumption of about 17.5 million tonnes of pellets in 2013, the EU is already the world’s largest wood pellets market.

• The EU-28 is the large global producer of wood pellets; 13.3 milliontonnes in 2014

• It is also a net importer of wood pellets import from non-EU MemberStates was 6.55 million tonnes

0

5

10

15

20

25

2007 2008 2009 2010 2011 2012 2013 2014* 2015*

mill

ion

tonn

es

EU-28

Production

Consumption

© Luonnonvarakeskus

• Germany produced 2.4 million tonnes of pellets 2014, and Sweden 1.4 million tonnes.

• Production capacity of eastern European pellet industry is raising by almost 2 million tonnes per year by the beginning of next year

11 15.9.2015Source: AEBIOM, GTIS, Luke

Main pellet producers Million tonnes

2009 2010 2011 2012 2013 2014*

Germany 1.6 1.8 1.9 2.2 2.3 2.4

Sweden 1.6 1.7 1.3 1.3 1.4 1.4

France 0.3 0.5 0.5 0.7 0.9 1.2

Latvia 0.5 0.6 0.7 1.0 1.0 1.0

Austria 0.7 0.9 0.9 0.9 0.9 0.9

Portugal 0.3 0.6 0.7 0.7 0.7 0.7

Poland 0.4 0.5 0.6 0.6 0.6 0.6

* Estimation

© Luonnonvarakeskus

• The United Kingdom had the highest level of wood pellet imports

• Imported pellets to EU-28 comes mainly from North America

12 15.9.2015Source: AEBIOM, GTIS, Luke

Main pellet consumers Million tonnes2009 2010 2011 2012 20132014*

UK 0.2 0.176 1 1.4 3.8 5Italy 0.85 0.58 1.5 2.1 2.5 2.6Denmark 1.4 1.6 1.6 1.6 2.3 2.4Germany 1.1 1.2 1.4 1.7 2 2.2Sweden 1.92 2.28 1.88 1.7 1.9 2France 0.3 0.4 0.55 0.6 0.89 1.1Austria 0.55 0.66 0.72 0.785 0.9 1Belgium 0.92 0.92 1.2 1.7 0.8 0.5Netherlands 0.9 0.913 1 1.25 0.5 0.5

* Estimation

© Luonnonvarakeskus

International production of energy peat 2013

13 15.9.2015Source:U.S. Geological Survey, Peat 2013 (Minerals Yearbook)

23 %

9 %

21 %4 %

5 %

10 %

19 %

9 %

Finland Denmark Ireland Estonia Latvia Russia Sweden Ukraina Others Belarus

© Luonnonvarakeskus

Energy peat in Finland

14 15.9.2015Source: Luke & Bioenergia Ry

0

10

20

30

40

50

60

70

80

90

100

2009 2010 2011 2012 2013 2014 2015*

PJ Production

Consumption

© Luonnonvarakeskus

Conclusions:• Finnish targets (2020) to use of renewables will be achieved,

use of industrial by-products will increase• In Finland the target of using forest chips has been set to 25

TWh = 13.5milj.m3 wood• It is possible to achieve, we have enough potential, but..• The price competitiveness of forest chips will be the

determining issue of utilization level- efficiency in supply chains has to improved- quality issues should be adressed

• Use of pellets will increase in Finland

15 15.9.2015

© Luonnonvarakeskus16 15.9.2015Source:Luke

0

500

1000

1500

2000

2500

3000

3500

4000

Finland Germany Latvia Sweden Spain

milj

. m3

Growing stock volume

2002

2014

• Growing stock volume in European countries are increasing

© Luonnonvarakeskus

Kiitos!

15.9.201517

© Luonnonvarakeskus18 15.9.2015Teppo Tutkija