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EUROPEAN POLICY FOR BIOMASS Albert de Haan ,CEO Carbon Rooster Advisory Services BV. www.carbonrooster.com. European Biomass to Power VIENNA,April 13-14. AGENDA. Carbon Rooster EU policy for biomass Standardization is essential Demand in Europe
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EUROPEAN POLICY FOR BIOMASSAlbert de Haan ,CEOCarbon Rooster Advisory Services BV www.carbonrooster.com European Biomass to Power VIENNA,April 13-14
AGENDA • Carbon Rooster • EU policy for biomass • Standardization is essential • Demand in Europe • Biomass in global perspective/effects on Europe • Markets need risk management tools • Conclusion • Ca www.carbonrooster.com
Carbon Rooster • Banker and co founder European Climate Exchange (ECX) • Carbon Rooster Advisory Services BV founded 2007 • advising HKEX- Dutch Ministry of Economic Affairs –Unesco • working on biomass trading opportunities and relation with CO2 credits (REDD – co firing) www.carbonrooster.com
EU policy on biomass • EU 20-20-20 goals are to be exceeded except for Italy • EREC report shows heating and cooling from biomass from • 10,2% in 2005 to 21,3% in 2020 • Biomass for power from 9,2 Mtoe in 2008 to 19 Mtoe in 2020 • Biomass for heat from 63,8 Mtoe in 2008 to 88,8 Mtoe in 2020 • Eubionet 3 is setting standards under CEN/TC335 www.carbonrooster.com
EU and Renewable energy supply • all 27 memberstates have domestic 2020 Renewable Energy Targets • many memberstates use Feed-in Tariffs to stimulate • political risk is very high (UK-Germany-Netherlands) • large cap in domestic attitudes – Budgetary hypes www.carbonrooster.com
Renewable Energy Directive status of memberstates n gnikkiaNIKKINninikIKKI N N www.carbonrooster.com
STANDARDIZATION • Any market needs standardization • EFET is working on standard woodpellets contracts co-firing and dedicated biomass • procurement workgroup in EU very active on standardization www.laborelec.com • standardization will commoditise the market • risk management www.carbonrooster.com
STANDARDIZATION 2 • Uniform approach is needed • Sustainability criteria are different • Eurelectric is asking for harmonization • carbon credits only is sustainability is proven + Verified • certification and verification by third parties a must www.carbonrooster.com
European demand • Germany still no co-firing permitted – dedicated biomass will grow • Co-firing 3/5% means 6 Mtoe extra demand • UK is building dedicated biomass Helios –Tilbury ,demand will rise to 4,5 Mtoe per annum • Netherlands is changing RWE/Essent Amer into over 50% dedicated biomass additional 1,5 Mtoe expected • more plans in Denmark to switch coal into biomass (Dong) • many plans in EU www.carbonrooster.com
GLOBAL DEVELOPMENT • North America both Canada and USA suffered from oversupply in 2008-2009 • Brasil will build pelletizers for own market (3 Mtoe) Suzano. • Asia demand is growing under ETS and energy policy changes • Japan 5 Mtoe for co-firing • South Korea 1,5 Mtoe for co-firing • China under 2011-2015 demand will rise www.carbonrooster.com
Market developments • Europe : price index by ARGUS • APX/ENDEX • FOEX • PPE • USA : Georgia very active • American Biomass Trade coop • Oregon/Washington • CANADA BC very active also due to beetle • Canadian government promotes export www.carbonrooster.com
Risk Tools • standard contracts • verification and certification • unwinding and financial tools • risk mitigation by forward/futures hedging opportunities • supply and demand unequal “partners” • Biomass should be treated like coal by banks www.carbonrooster.com
Woodpellets futurescontract www.carbonrooster.com
BIOMASS TO POWER A great future Thank you Albert de Haan + 31 6 51691446 albert.dehaan@carbonrooster.com www.carbonrooster.com