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OECD report “Linking RE to Rural Development” Comment from North Karelia, Finland Pasi Pitkänen

OECD report “Linking RE to Rural Development” Comment from North Karelia, Finland Pasi Pitkänen Regional Council of North Karelia Östersund, Mid Sweden, 19 th of February 2013. 1 . General info about North Karelia. Virmajärvi, Ilomantsi North Karelia. North Karelia facts.

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OECD report “Linking RE to Rural Development” Comment from North Karelia, Finland Pasi Pitkänen

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  1. OECD report “Linking RE to Rural Development” Comment from North Karelia, Finland Pasi Pitkänen Regional Council of North Karelia Östersund, Mid Sweden, 19th of February 2013

  2. 1. General info about North Karelia Virmajärvi, Ilomantsi North Karelia

  3. North Karelia facts • 166 000 inhabitants (< 8 inhabitants / km²) • 13 municipalities • Regional capital: City of Joensuu (74 000) • Distance to Petrozavodsk 368 km • Flight-time to Helsinki: 1 hour • Size of the region 21 585 km² (lakes 3 803 km²) • The easternmost region of the continental EU • 300 km border with Russia • North to south 240 km • East to west 153 km • Temperatures from +37C to -42C

  4. North Karelia is a forerunner • in the use of renewables • Renewables cover 64 % of all energy consumption (including heat, power, private households and traffic) - compared to 28,5 % in Finland, and 8,5 % in the EU • The renewable energy cluster employs more than 1300 people • More than 300 companies working on this sector • Turnover about 200 M€ / year

  5. ENERGY CONSUMPTION • 2008 2020 • 63% SHARE OF RENEWABLE ENERGY  82 % SHARE OF RENEWABLE ENERGY

  6. Carbon Sources and Sinks in CO2 Neutral North-Karelia t / a Ditched Peatlands Peat production areas Waste management Agriculture Energy Production and Use Trafic and Transportation Fresh debris and soil Forest Biomass

  7. 2. Comments on OECD report • Thesekind of research (looking at the situation outside the regions) • is reallyneeded and useful • Report show thatwecanlearnfromeachotherregions and RE • opportunities as well as challengesareboththeretogether

  8. Main findings / OECD Report / North Karelia • Drivers • RE can be efficient alternative to conventional fuels • Regional research should focus on “local” innovations & businesses • RE offers the most development opportunities in rural areas •  I agree these findings! • Future challenges / OECD Report / North Karelia • EU renewable energy policy & success of woody biomass • High subsidies going to wind power •  More about these next

  9. EU / Finnishpolicyfavorswindenergy … • Feed in tariff for windpower is • remarkablehigh in Finland • Investors and companiesarelooking for areas for windparks, also in North Karelia • Regionalcouncilsaremakingregionallanduseplans for windpowerparks, also in N-K • Small woodenergysubsidy is prohibitednow and it is under EU consideration (from 2011) • But … Potential wind parks in NK

  10. North Karelia can do well with EU/National RE policy because, + However some kind of subsidy is coming for plants using woodchips, + in Finland there is money for new innovations & new bioenergy technology investments (Bio Economy) + New EU programme 2014 – 2020 & focus on low carbon economy (at least 20 %)  Perhaps EU challenges are not unthinkable in NK

  11. 3. Finally – what is going on and whatweareaiming in North Karelia! • Renewable Energy in Regional level / North Karelia • Political aspects  2 examples • Fossil Oil-Free Region target 2020 and 2030 • North Karelia - The Centre of Forest Bio Economy • Economical and social aspects  2 examples • Self sufficiency - Wood based energy gives jobs and turnover for many • Social innovation - Free Energy advice for the citizens and companies

  12. CLIMATE AND ENERGY PROGRAMME OF NORTH KARELIA 2020 Locally – Renewably – Efficiently VISION: FOSSIL OIL FREE REGION (In heating 2020, totally 2030)

  13. Target:FossilOilFreeRegion in 2030 It means morewoodchips, pellets, pyrolyse oil, solar energy, wind mills and other renewables etc. FORTUM PYROLYSIS OIL PLANT in Joensuu: production to be started in the last quarter of The year 2013. A model example of an investment (30 M€) needed on the way towards fossil oil free region! Production 50 000 tn per year = 50 million litres per year

  14. Other Biorefinery plans in North Karelia: Nurmes Biochar & Biocoal factory • Nurmes -unit is going to be the first industrial scale unit in Finland, representing 3. generation in development (plans to be built during the year 2013) • The first demo unit is scheduled to produce about 5000 tons’ biochar and ca. 4700 ton’s wood oil’s • The planning process of the larger unit has also started. The expected start of this 100 000 ton’s biochar and 94 000 ton’s oil factory is scheduled for later part of 2015 • A huge demand increase for biochar is expected in Finland and in Europe. • The quality and energy content of the FSO-biochar tested so far have turned out to be high, giving a competitive edge and bringing a large variety of potential customers.

  15. We count on knowledge based development in forestry and wood sector • European Forest Institute • Finnish Forest Research Institute • University of Eastern Finland • Karelia University of Applied Sciences • Carelian Science Park • etc…

  16. … as well as on technology driven development

  17. We aim at increasing the use of wood in construction Metla Building Joensuu Arena

  18. … as well as the use of wood for energy and bio based products

  19. EXPERTICE & KNOWLEDGE FOCUS TARGET CENTRE OF FOREST BIO ECONOMY / NORTH KARELIA d ForestBioenergy New Business Opportunities Capitalization of ResearchResults Spin-off Enterprises Transfer of Technology and Knowledge Forest Energy & Wood Energy Districtedbiorefining and materialtechnology Foresttechnology, supplychain and logistics Forest data invention & mapping, remotesensing Centre of Forest BioEconomy Capitalization and Business Research and Development Wood-based Material Technology Biobased Products North Karelia Forest Bio Economy: 6000 workplaces, 600 forest experts (research, education, administration), about 1,7 billion turnover, over 500 companies

  20. … as well as bioenergy new social innovations Free Regional BioEnergy Advice Service for Consumers via Internet and telephone Organised by the Finnish Forest Centre - North Karelia, Regional Council of North Karelia and Centre for Economic Development, Transport and the Environment

  21. Conclusion: The role of forest is essential in aiming at smart, sustainable and inclusive growth (Europe 2020) in the NK and Europe! • Forests have increasing and diversified value • in meeting the objectives stated in the • international commitments. • Forests provide solutionsfor the challenges • caused by climate change and increasing demand of energy. • At the same, forests provide opportunitiesfor new entrepreneurship and economic development. • But we have also some other resources like wind and solar, which we can take account too, alongside the biomass

  22. Kiitoksia! Tack så mycket? Thank you! Pasi Pitkänen Regional Council of North Karelia Östersund, Mid Sweden, 19th of February 2013

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