1 / 40

Swedish Bioenergy Association

Swedish Bioenergy Association. The Future of Bioenergy Markets in Europe. Gustav Melin 2011 Aug 17.

ida
Download Presentation

Swedish Bioenergy Association

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Swedish Bioenergy Association The FutureofBioenergy Markets in Europe Gustav Melin2011 Aug 17

  2. Swedish Bioenergy AssociationInterest organisation for companies and private personsAlmost 300 membercompaniesareproducers, users, manufacturingfirms, consultants and service companies etc.

  3. Mission: To increase the useofbioenergy in an economically and environmentally optimal way.

  4. Efficientpolitical instruments are: • General, PPP – PolluterPaysPrinciple • Theywhoareresponsible for an emission shouldpay for polluting. Then the legislationsteertowardsless emissions and better actions and habits. Examplecarbondioxide tax, Sulphur tax, NOX-fees. • Long term • Support restricted in timegiveuncertain investment situations and promoteoftenwrongproducts and optimizationof subsidies. • Neutral totechniques • Mening that the most profitable solutions are chosen in competitionwithotherpossible solutions • Simple and logical • Easytounderstand and administrate

  5. About AEBIOM European Biomass Association • Represents and promotes interests of bioenergy stakeholders • 30 national associations • About 80 associated companies • Activities: lobbying, workshops, newsletters, European projects, working groups, conferences and networking, etc. • Based in Brussels in the Renewable Energy House. • Member of EREC (European Renewable Energy Council) and WBA (World Bioenergy Association).

  6. 2011 Aebiom Statistical Report Sent to members in June. Available on Aebiom web site, www.aebiom.org.

  7. Energy, bioenergy and other renewables Energy in EU27 20,5 % 11,5% 8%

  8. Gross inland consumption by fuel in the EU27 (Mtoe) 2009 • Solid fuels: 268 Mtoe • Oil: 622 Mtoe • Natural gas: 417 Mtoe • Nuclear: 231 Mtoe • Renewables: 153 Mtoe Source: Eurostat Total grossinlandconsumption all fuels: 1702 Mtoe

  9. Gross inland consumption of renewable 1995-2008 in EU27 (stacked, Mtoe) Source: Eurostat

  10. Estimation of total contribution expected from bioenergy in EU27 Total contribution of bioenergy in 2020 in EU27: 138,5 Mtoe Total contribution of bioenergy in 2010 in EU27: 83,8 Mtoe 2010 2020 Source: AEBIOM, based on NREAPs Note: Bioenergy is considered as the gross final energy consumption, made up of the sum of bioelectricity, biomass for heat, bioheat and transport biofuels.

  11. Shareofrenewableenergy in Sweden’senergyuse Andelen förnybar energi i Sverige var år 2009, 45,3 procent. Det betyder att Sverige ligger långt före tidtabellen när det gäller att nå EU-målet på 50 procent förnybart 2020. Underlag: Energimyndighetens kortsiktsprognos 15 mars 2010.

  12. Share of final energyusein Sweden 2010

  13. EconomicGrowth and CarbonReduction

  14. TheSwedish CO2 tax, basic design • Introduced in 1991, graduallyincreased tax rate • Paid in relation to CO2 emissions on eachtypeof fossil fuel (carboncontent) • Full tax on heating and motor fuels • Reduced tax rate for industry, dueto risk for carbonleakage • ”Tax shift” – increasing CO2 tax and reducingdirectincometaxes

  15. A simple and cheap system • Low administrative costs for tax authorities and operators • A CO2 tax can easily be added to an existing energy tax system • Administrative costs for Swedish Tax Administration is 0.01 % of total revenues for energy and CO2 taxes • No need to measure actual CO2 emissions from each installation • Tax rates per unit (ton, litre) fuel based on basis of average carbon content • E.g.: CO2 tax for petrol = 2.323 kg/l x 0.103 €/kg = 0.24 €/litre

  16. CO2taxgradualincreasesince 1991

  17. Design topreventcarbonleakage in energy-intensive industry • 1991 • Twolevelsof taxation for heatingfuels – lowerlevel for industry • CO2 tax exemption for raw material use in industry • 2008 • Second period EU ETS system – ETS covers major energy-intensive industry • Zero CO2 tax on ETS coveredindustry from 2011 • CO2 tax raised for non ETS industry – in 2011 and in 2015 – upto 60 % ofregular CO2 tax

  18. ”Green Tax Shift” – regardlessofcolourofgovernment • 1990/91 ”the big tax reform” • Loweredincome and labortaxes – 6 billion € • CO2 tax and VAT on energy 0,3 + 1,6 billion € • Investment aid for biomassCHP • Green tax shift 2001 – 2006 • 1,5 billion € tax shift, raisedenvironmentaltaxes, cut in incometaxes, focus on lowincomes • Policy 2007 – 2010 • Increasedenvironmentaltaxes by 0,5 billion € • Loweredincometaxes by 7 billion €, focus on workingpeople

  19. Lessonslearnedabout CO2 tax… • A CO2 tax is easytoadminister and it gives results! • Households and companiesarefreetochoose the measures best for them – the tax uses the free market system and is ”tecnique neutral”. • Start at lowlevel and raise the tax gradually. • Announce tax measures long ahead, togivetime for adjustment. • Tax revenuescan be partlyusedto adress distributionalconsequences. • Support measuresmay be necessary for a limitedtime, tohelphouseholds and businesseswithadjustment. Importantthat the system is long term stable!

  20. Pellets production in EU27 in 2010 (kt) Source: Pro Pellets Austria; Pelletsatlas, 2009; EPC Total production in EU27 in 2010: 9.241 kt

  21. Total consumption of pellets in EU27 in 2010 (kt) Source: Pro Pellets Austria; Pelletsatlas, 2009 Total consumption in EU27 in 2010: 9.817 kt

  22. Total consumption of pellets in EU27, 2005-2010 (kt) Source: Pro Pellets Austria; Pelletsatlas, 2009

  23. Replace oil almost half the cost Burnersize 5 – 50 MWth Severalsuppliers Last months approx. 0,69 € euro/$ USD Crudeoil approx.107 USD/Barrel, Onebarrel is 1,7 MWh energy, thiscorrespondsto € 210 per tonnepellets (4,8 MWh). Price of pellets deliveredtoindustrycustomer in port €125 inland €150.

  24. Challenges in the pellet sector • Estimated volumes of 40 Mt globally in 2020 • How to secure a “reasonable” price before a large retrofit investment of a coal plant, or an investment in a pellet plant. • logistics, transport and storing capacity • CHP is needed to reduce cost for electricity production

  25. Renewable energy use in Sweden 2009

  26. Electricityproductionin Sweden 2010 56,2 per cent arecurrentlyrenewableelectricity in Sweden

  27. Electricitycertificate system willgiveadditionalvolumes in Sweden • Current Bio powerproduction 12,6 TWh • Will increaseto 18 TWh in 2020 • And increasewindpower from 3,5 to 10 TWh in 2020

  28. Total standing volume of round wood in Swedish forest from 1924 1 Excl. high mountains, restricted military areas, urban land and water surfaces. Millions cubic metre standing volume (stem volume over bark from stump to tip) Source: National Board of Inventory

  29. Forest area (million ha) and growing stock volume (billion m3) Source: Rautinen A. and al.

  30. Global sources and sinks of carbon dioxide (CO2) 2008 (Billion tonnes C per year) Fossils and cement 8,5 Deforestation 1,2 Forest growth -4,5 Sink in oceans -2,5 Residual 1,3 Accumulated in atmosphere 3,7 Source: Corinne Le Quéré et al, Natures Geoscience 2009

  31. Consumption of energy in transport in EU27 in 2020 This is the main problem not environmental problems that may appear if we do wrong when producing biofuels 90 per cent of fuels in transport sector is fossil in 2020!!! Source: AEBIOM, based on NREAPs

  32. Contribution of bioethanol and biodiesel in the transport sector in EU27 Source: AEBIOM, based on table 12 of NREAPs

  33. Our view on EU transport sector • 90 % fossil dependence in the transport sector 2020 is to much. • Low blending is not enough for an energy shift, we need new fuels and vehicles. • 50 % renewable in the Swedish transport sector possible in 2030 • Targets for green vehicles, should steer both towards energy efficiency and renewable fuels. tail pipe values are misleading. • Green innovation increases EUs competitive power on the global market.

  34. Global trends – How we see the world • Fossil fuels get more and more expensive and damaging • Biofuels get cheaper and cheaper and LCA improves. • There is enough land and biomass available for powerful expansion of both food and energy production. Demand must come to make production possible. • Biomass for energy can bring investments, work and wealth to rural areas and poor countries.

  35. How to increase the speed of the energy shift in transport sector. • We need to find a solution for expanding European biofuel production, together with allowing imports of not only world market priced fossils but also low cost sustainable bioethanol and biodiesel.

  36. Thank you for your attention Gustav Melin, President Aebiom melin@aebiom.org www.aebiom.org

More Related