International bioenergy markets
Blas MOLA-YUDEGO, Nikolaos PAPAMATTHAIAKIS
Summary
Pellets, among other biofuels, present the advantage of a higher energy efficiency per unit of volume. In general, the energy ratio between oil and pellets is 1:3, which is a good value compared to wood chips or wood-fuel. This advantage facilitates the transportation and logistics of wood pellets, and make it a good example to explain international bioenergy markets. Many countries have developed a different profile, as a consumer or supplier of wood pellets, based on their resources, traditions, heat demand and policy framework among others. It must be underlined that wood pellets are a by-product of the forest industry, particularly sawmills, and whereas the supply and demand applies directly on timber products, it shows inefficiencies related to pellets (there can be a high demand of pellets and a low demand of timber products, therefore affecting the supply of pellets). In Europe, there are four main areas of pellet production, namely Central Europe, Scandinavia, Finland and the Baltics. Each of these areas have different characteristics, related to their policy framework and conditions, that will be presented.
Materials
Lecture slides: old [PDF], Lecture slides Feb 2020 [PDF]
Readings:
Selkimäki, M., Mola-Yudego, B., Röser, D., Prinz, R., & Sikanen, L. (2010). Present and future trends in pellet markets, raw materials, and supply logistics in Sweden and Finland. Renewable and Sustainable Energy Reviews, 14(9), 3068-3075. [PDF]
Mola-Yudego, B., Selkimäki, M., & González-Olabarria, J. R. (2014). Spatial analysis of the wood pellet production for energy in Europe. Renewable Energy, 63, 76-83. [PDF]
Complementary materials
Heinimö, J. (2008). Methodological aspects on international biofuels trade: international streams and trade of solid and liquid biofuels in Finland. Biomass and Bioenergy, 32(8), 702-716. [PDF]
Concepts
Pellets "are biofuels made from compressed organic matter or biomass. Pellets can be made from any one of five general categories of biomass: industrial waste and co-products, food waste, agricultural residues, energy crops, and virgin lumber. Wood pellets are the most common type of pellet fuel and are generally made from compacted sawdust and related industrial wastes from the milling of lumber, manufacture of wood products and furniture, and construction". [Wikipedia]
European pellet producing cores
Table 1: Main policy instruments for the promotion of pellet production, by country (Mola-Yudego et al, 2014)
Countries | Production growth (average) | Consumption growth (average) | Policy Instruments | ||
Amount (x1000t) | % | Amount (x1000t) | % | ||
Austria | 89 | 32 | 75 | 30 | Subsidies, Feed in tariffs |
Belgium | 190 | 26 | Subsidies, Tax reduction, Green certificate system | ||
Denmark | – 9 | – 4 | 90 | 11 | Subsidies, Biofuel tax exemption, Energy tax, Feed in tariff |
Finland | 42 | 19 | 22 | 32 | Energy tax, Green certificate system |
France | 54 | 91 | 50 | 41 | Tax/VAT reduction, Green certificate |
Germany | 2770 | 85 | 172 | 31 | Subsidies, Tax/VAT reduction, Green certificate |
Netherland | 3 | 3 | 103 | 19 | Feed in Premium |
Italy | 98 | 33 | 128 | 33 | Subsidies, Green certificate |
Sweden | 107 | 11 | 144 | 11 | Subsidies, Carbon and energy tax, Biofuel tax exemption, Green Electricity system |
Poland | 66 | 126 | 29 | 132 | Green certificate system
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Objectives
This session focuses on:
- To review the present consumption and production patters in different EU countries concerning pellets
- To identify the main EU core markets in pellet production
- To link the development of pellet markets to the policy framework
Main pellet production cores in Europe (Mola-Yudego et al., 2014)