Alakangas Amsterdam

8/12/2019 Alakangas Amsterdam

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EUBIONETEUBIONET--

EuropeanEuropean bioenergybioenergy networksnetworks 11

TRADE OF SOLID BIOFUEL, AND FUELRADE OF SOLID BIOFUEL, AND FUELPRICES IN EUROPERICES IN EUROPE

Eija Alakangas, VTT Processes, FinlandBengt Hillgring, SLU, SwedenLars Nikolaisen, DTI, Denmark


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International trade and fuel pricesof solid biofuelsInternationalnternational traderadeandandfuel pricesfuel pricesoff solid biofuelsolid biofuels Study was carried out by the AFBnet- European

bioenergy network (now EUBIONET) in 1999

Summary report and 20 country reports published in

internet (http://afbnet.vtt.fi - publications, Task 2)

European international trade volume is about 50 PJ/a.

Estimated biomass resources 4 500 PJ/a and current

use 1800 PJ/a


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FOREST RESIDUES

INDUSTRIAL BY-PRODUCTS

(sawdust, bark, chips)

DOMESTIC FIREWOOD

WOOD WASTES

REFINED WOOD FUELS

(pellets, briquettes)

PEAT

OTHER (SRC, straw)

POLANDGERMANY

HOLLAND

BELGIUM

FRANCE

ROMANIA

BULGARIA

UKRAINE

BELO-

RUSSIA

LITHUANIA

SPAIN

PORTUGAL

NORWAY

SWEDEN

FINLAND

KINGDOM

IRELAND

AUSTRIA

SWITZERLAND

ALBANIA

MOLDOVA

RUSSIA

CZECH. REP.

SLOVAK REP.

SLOVENIA

CROATIA

BOSNIA -

HERCEGOVINA

ITALY

YUGOSLAVIA

HUNGARY

RUSSIA

LATVIA

ESTONIA

DENMARK

UNITED

LUX.

GREECE

MONTENEGRO

NORTHERNAFRICA

JAPAN, TURKEY,HONG KONG,ARAB EMIRATES

BIOMASS TRADE

IN EUROPECANADA

CANADA


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Purchase from

wood processing industry

COMPANY WITH

DIVERSIFIED ACTIVITIES

biofuels

wood for industry

energy production

Wood fuel

harvesting/

bundling/

baling/

chipping

CONTRACTORS

BIOFUELS

HEAT

HEAT

ELECTRICITY

Sawdust

Bark

Chips fromedgings, slabs

Cutter shavings

Cutter

shavings

Grinding

dust e.g.

Pellet or briquetteproduction

(own or licencing)

Briquettes or

pellets

Logistics

Global positioning

systems

Fuel quality control

CUSTOMER

Municipal

CHP plant

Industrial CHP plant

CUSTOMERS

energy utility

industry

Wood chips

Straw bales

Logging residue

bundles

Biofueliofueltrading in large-scaletrading in large-scale

Trade basis: energy content and measured properties (/MWh,/GJ)

Briquettes or

pelletsSacks Bulk

Retailer

GPS

Import of biofuels


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Purchase from

Wood processing industry

ENTREPRENEUR

OR

CO-OPERATIVE

TRANSPORTATION

CHIPPING

FUEL

HARVESTING

BIOFUELS

Endings

Slabs

Wood chipsRotten wood

CUSTOMERS

Communities (< 1 MW)

SME

Services

Operation and

maintenance

HEAT

Wood chips

Small straw

bales

Biofueliofueltrading- Small-scale district heattrading- Small-scale district heat

Radiators

Radiateurs

Trade basis: Heat production (/MWh,/GJ)


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Biofueliofueltrading for households, farms etc.trading for households, farms etc.FUEL

PRODUCER

=

SUPPLIER

BIOFUELS

LogsWood chips

Straw bales

CUSTOMERS

Households

Farms

Biofuel

database

suppliers

volumes

typicalproperties

ELECTRONIC BIOFUEL MARKET PLACE e-tradeLECTRONIC BIOFUEL MARKET PLACE e-tradeOrder via Internet

Logs

Pellets

Trade basic: Volume or package basis (/m3loose, /m3stacked)

Pellet hopper

Flexiblehose 20 m

Most of fire wood is not traded (purchase from own forest or black markets)


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Why international trading ?hyhyinternationalinternationaltradingtrading?? Surplus or lack of own biomass resources

Denmark; use of pellets bigger than own production

Sweden; over capacity of pellets

Netherlands; lack of own biomass resources

Better prices from abroad

In Baltic countries and some CEE countries prices of fossil

fuels are low

poor competitiveness of solid biofuels in domestic market

better price by exporting

National support incentives boost trading

Big differences in support mechanisms in Europe

Germany; new RES-E act; energy producer can pay high pricefor solid biofuels (4-9 EUR/GJ)

CO2taxes in fossil fuels (Sweden, Denmark and Finland)

imported fuels may be cheaper than own production


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Problemsroblemsroblems No good information on spot markets

no good statistics of biofuel prices and traded amounts

difficult to calculate the influence of different support

mechanisms on fuel price

Influence on other biomass resource markets

forest industry and energy sector can start competing witheach other for use of wood resources

there can be also influence on material recycling

Biofuel standardisation needed

ongoing work in CEN TC 335-Solid biofuels


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Local or internationally traded?ocal or internationally traded? Forest chips and straw are local fuels

high transportation costs (30 - 50% of total cost)

low calorific value per volume (moisture content 50%)

bundling can be integrated into timber and pulp woodprocurement chainsame equipment and logistics management

can be used in forest haulage and on-road transportation

straw needs special boilers and bale handling systems

Refined biomass fuels are more suitable for internationaltrading

high calorific value per volume (3 times higher than forest chips)

homogenous material suitable for pneumatic unloading

production capacity is increasing

can be crushed and used also by cofiring with coal in pulverized

combustion boilers

liquid biofuels for heating (e.g.pyrolysis oil) under development


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Transportation costs of logging residues chips/GJ Finland)Transportationransportationcostsostsofof loggingoggingresiduesesidueschipschips/GJ Finland)GJ Finland)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

0 10 20 30 40 50 60 70 80 90 100

Tranportation distance, km

/GJ

Logging residue, loose

Chipping at a stand

Chipping at road-side terminal

Bundling of

logging residues


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Storage space need for different biofuelsComparision with light fuel oil

Storage space needtorage space needforfor different biofuelsifferent biofuelsComparision with light fuel oilomparision with light fuel oil25

20

15

10

5

0

11.7

8

11

3.2

8.4

11.5 12.5

11.5

Oil Woodpellet

Loggin

gresiduechips,

fre

sh

Logg

ingresiduebundler

Shreddedbark,

fresh(pine)

Sodpeat

Milledpeat

Storagesp

ace,m

/10M

Wh

3/

2

Coal Shredded

bark,

dry(birch)

Bigstrawbale

19

Loggingresiduechips,

dry

Loggin

g

residue

chips,

bundle

r

10 MWh = 1 m3light fuel oil = 36 GJ


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ExampleWood fuel prices -/GJ for DH plants1 - 5 MWth)in 1999

ExamplexampleWoodood fuel pricesuel prices--/GJ for DHGJ for DHplantsplants1 - 51 - 5MWMWthh)in 1999n 1999

Country Wood chips Bark, sawdust, chips Wood pelletsDenmark 4.50 4.20 5.00

Finland 3.00 1.60 7.50

Germany 3.70 3.10 6.10

Sweden 3.40 2.90 4.80

France 4.00 1.10 10.60

Latvia 1.60 0.80 3.30


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Conclusionsonclusionsonclusions New directives RES-E, WID and green certificates will

boost trading

More comprehensive analysis of solid biofuel trade is

needed Development of customs statistics

tariff nomenclature should to include different biofuels

Continuous follow-up of biofuel prices

International trading will change

Sweden from importer to exporter?

Competition between different countries: Germany, Denmark

Effect to forest industry; availability of wood raw material

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