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Social and economic Possibilities: Trade Balance, Job Opportunities and Energy Supply to Rural Areas, Bo Hektor, TallO

Global biomass potentials are large - but need to be developed. Agricultural land: <100- >300 EJMarginal lands: <60- 150 EJAgri residues: 15-70 EJForest residues: <30-150 EJDung: 5-55 EJOrganic waste: 5 - >50 EJTOTAL: < 250 - > 500 EJ. From IEA Bioenergy Task 40. 500 EJ ~ 180 000 TWhSweden 625 TWh.

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Social and economic Possibilities: Trade Balance, Job Opportunities and Energy Supply to Rural Areas, Bo Hektor, TallO

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    1. Social and economic Possibilities: Trade Balance, Job Opportunities and Energy Supply to Rural Areas, Bo Hektor, TallOil AB, Sweden May 17, 2006

    3. Transport Costs (general example)

    4. Prediction Therefore, Russia will not be a dominant supplier of biomass fuels in the export market (except possibly for a limited time in the near future) Excellent opportunities to develop a national, regional and local applications for bioenergy

    5. Planning Models for Bioenergy Provision Top-down implementation Market Supply/demand drivers Joint Planning and Implementation “Grass root” drivers

    6. Provision; top-down implementation National energy corporations Experts and specialists Standard technology Economy of scale (nuclear, large hydro, etc., but not local bio-energy) Integrated with general policies “energy is a basic need for people” “competitive industries need cheap energy”

    7. Market; supply/demand drivers Energy is looked upon as any other product/service in the market General market incentives “Free market” economy Competition is supposed to lead to low costs and prices efficient allocation of resources

    8. Joint Planning and Implementation Local initiatives and implementation Fit with local conditions, esp. for heating Can include slack resources; labour, organization, biomass Can mobilize entrepreneurship, and acceptance Options of specific local support incentives Applied successfully for bioenergy

    9. Jobs and income formation Replacement of 1000 m3 oil with wood fuels means 4 new jobs (man-year equivalent, Sweden) Most of the income stays in the local community Job and income multipliers are high, 2-4.

    10. Flexibility in planning; many options National policies Local policies Standardised methods Specific, flexible High tech Pragmatic, available Controlled development Organic, independent Expert solutions Grass root solutions Neo-classic models Institutional economics Inform people Mobilise people

    11. Driving modern bioenergy Reduce oil dependence (1970-) Avoid nuclear costs and risks (1980-) Reduce carbon induced climate change (1990-) Increase security of supply (2000-)

    12. Wood versus Oil Principal Calculation 1 barrel oil (70 $) 6,12 GJ 1 ton wood substance (odt) 17 GJ 0,47 ton wood(+bark)substance = 1 m3s 1 m3s(+bark) 8 GJ 1 m3s/1 barrel oil 1.3 Energy content of 1m3s 91$ Price of pulp wood 1m3s 34 $

    13. Thanks for your Attention! Bo Hektor bo.hektor@talloil.se

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