Biopolttoaineet –mahdollisuuksia liikenteenpäästöjen vähentämiseenStartup Weekend Helsinki 10.5.2014:Uutta liiketoimintaa Suomen metsistäAntti ArastoVTT Technical Research Centre of Finland

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Contents

Why liquid biofuels?

Background on business environment

Technology options for production of liquid biofuels

Bottlenecks and other options

Conclusions

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Why do we consider liquid biofuels?

Climate effect

Security of supply

Domestic raw material

Superior quality

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Background on businessenvironment

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World energy use in transportationWorld Economic Forum 2011

Energy end use in world 8900 Mtoe (IEA 2013)Share of trafic 25%73 % of use in traffic by rubber wheel fleet

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Energy end use – FinlandTilastokeskus & Öljyalan keskusliitto 2013

Energy end use1341 PJ= 32 MtoeTransportation 16 %= 5,1 Mtoe

Gasoline 1,54 MtDiesel 2,43 MtTotal 3,97 Mt

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Biofuel obligation in FinlandCame into force in January 2008 and was revised in 2010

Energy share of biofuels [%] inroad transport fuels

2,0

4,0 4,0

6,0 6,0 6,0 6,0

8,0

10,0

12,0

15,0

18,0

20,0

0,0

5,0

10,0

15,0

20,0

25,0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Jukka Saarinen/TEM

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Ministry of Transport and Communications:”Tulevaisuuden käyttövoimat liikenteessä”Työryhmän loppuraportti 8.5.2013

Target is near independency from oil for passanger vehicles, trainsand boatsShare of gaseous and liquid biofuels in heavy transportation 70% by2050Share of electricity in bus and delivery transportation in the samerange

=>All passanger vehicles suitable for alternative fuels by 2030Allmoas double the energy efficiency in comparison to 201340% of aviation fuels replaced by biofuelsCO2 emission reduction in maritime transportation supported by 40-50%

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Technology options forproduction of liquidbiofuels

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Biomass conversion processes

IPCC

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Replacement of fossil diesel fuel as an example– LCA WellToWheel GHG reduction for HeavyDuty Vehicles

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Creating new business from liquid biofuels

Neste Oil pörssitiedote4.2.2014 www.upm.com www.st1.fi

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Examples of Finnish bioenergy developmentLiquid biofuels R&D&D

Gasification

Pyrolysis

Fermentation

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Examples of current near commercialtechnology development

UPM’s HVO plant under construction in LappeenrantaMain raw material crude tall oilCapacity 100 000 t

Neste Oil’s pilot plant for producing microbial oil

Three industrial consortia have been developinggasification-based BTL processes

Two consortia approved to get NER 300investment aid of the EUInvestment decisions pending

Fortum’s pyrolysis plant under commissioning inJoensuu, Eastern Finland

Capacity 50 000 tProduced bio oil will be used to replace heavyfuel oil in boilers

Neste Oil

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Bottlenecks and otheroptions

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As annual growth of forests is currently larger than cuttings, thereis a lot of wood in Finland for different applications- still it needs to be considered as a constrained resource

1 m3 solid 2.5 m3 loose

2 000 kWh

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Introducing a new energy option totransportation

Do we need new production capacity?

What does the energy cost and can it be of domestic origin?

Do we need new delivery infrastructure?

Do we need to renew the vehicle fleet?

What are the total costs in comparison to benefits?

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Example: Liquid biofuels and electric vehicles -pros and cons in Finland

Liquid biofuelsDrop in fuels require no changes in distribution orvehicle fleetFinland is one of the top developers of technologyand could produce significant amounts ofsustainable liquidSeveral domestic companies already activePossibilities in technology and product exports

Pexpencivev production facilities when utilisingsolid biomassInsecurity in relation to large investments

Electric vehicles

Versatile and low carbon electricity productionGood electricity gridCharging operator Liikennevirta Oy

FEV not the best opotion for cold climates and forlong distancesRequires investments to infrastructure and vehiclefleetNo car industry in Finland to benefit from electricvehicle technology development

Conclusions

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Conclusions

Liquid biofuels can help to reduce CO2 and other emissionsand to create new business from forests

It is clear that no single energy or technology alternative can cover all forms oftransportation or even all needs within a single transportation sectorEnergy efficiency is of very high importance both on single vehicle andtransportation system levelLiquid biofuels, renewable electricity and possibly also hydrogen will introducerenewable energy especially in transportation sectorQuick electrification and 2G drop-in biofuels are options for transportationFinnish player in first line of development; high demand for wood based dieselConstructive solutions needed for sustainability discussions of bioenergyLong term policies to enable fast track for technology development andinvestmentsForest energy provides large possibilities for growth in biorefineries

TECHNOLOGY FOR BUSINESSAntti ArastoBusiness Development ManagerAntti.Arasto@vtt.fi