DEVELOPMENT AND STATUS OF THE USE OF AGRICULTURAL RESIDUES FOR ENERGY IN DENMARK HISTORY AND POLICY DRIVERS

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1 Department of Geosciences and Natural Resource Management DEVELOPMENT AND STATUS OF THE USE OF AGRICULTURAL RESIDUES FOR ENERGY IN DENMARK HISTORY AND POLICY DRIVERS Inge Stupak IEA Bioenergy Task 43 IEA Bioenergy intertask project Mobilising Sustainable Bioenergy Supply Chains JOINT WORKSHOP USE OF AGRICULTURAL RESIDUES FOR BIOENERGY Kiev, September 2014

2 Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 2 Department of Geosciences and Natural Resource Management THE DANISH STRAW CASE Land use Straw uses The role of straw in the energy mix Policy drivers and instruments Straw and renewable targets Future use for biogas, bioethanol and biooil?

3 Department of Geosciences and Natural Resource Management LAND USE IN DENMARK km 2 Surface cover Land use University of Copenhagen and Aarhus University (2012). The +10 million tons study. Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 3

4 Department of Geosciences and Natural Resource Management TRADITIONAL USE Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 4 Burning straw on fields has been banned since 1990 due to environmental problems Photos: Maskinbladet, Landbrugsavisen,

5 Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 5 Department of Geosciences and Natural Resource Management DEVELOPMENT IN STRAW USE

6 Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 6 Department of Geosciences and Natural Resource Management ENERGY CONSUMPTION PJ '95 '00 '05 '10 '12 Oil Natural gas Coal and coke Renewable energy etc. Energy in Denmark The Danish Energy Agency.

7 Department of Geosciences and Natural Resource Management PRODUCTION OF RENEWABLES PJ Heat pumps Biowaste Biogas Wood Straw Wind Straw: about 13% of renewable prod., 2-3% of total energy consumption (Import: additional 48 PJ - wood pellets, wood chips, firewood, biofuels) Skøtt, T. (2011). Halm til Energi Status, teknologier og innovation i Danmark INBIOM. Agro Business Park A/S, 40 pp. Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 7

8 Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 8 Department of Geosciences and Natural Resource Management STRAW IN THE DANISH ENERGY SECTOR Niclas Scott Bentsen. Mobilization of agricultural residues for bioenergy: Barriers and sustainability. IEA Bioenergy Strategic Inter-Task Project. Draft report.

9 Department of Geosciences and Natural Resource Management INITIAL POLICY DRIVER Energy system in the 1970s: coal and oil Energy crisis 1973 Investment needs 1976 Bill. DKK Wind, solar, straw Nuclear heat Nuclear heat Natural gas Nuclear power CHP Energy users No driving in cars allowed on Sundays 25. November 1973 until 10. February 1974 Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 9 Dansk Energipolitik (1976).

10 Department of Geosciences and Natural Resource Management HISTORICAL ENERGY POLICY OVERVIEW : Energy security ( Danish Energy Policy 1976) : Energy security, environmental concerns ( Energy ) : Energy security, economic growth, liberalization : Energy security, economic growth, fossil free energy future ( Energy Strategy ) : Energy security, economic growth, environmental concerns, fossil free energy future ( Our Future Energy 2011) Jakob Riiskjaer Nygård Denmark Country Case Analysis. Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 10

11 Department of Geosciences and Natural Resource Management DANISH ENERGY AGREEMENTS Wind mill agreement of 20 December 1985 Acknowledge the need to discuss straw use in the energy supply in the near future. Biomass agreement of 14 June 1993 By year million wet tons straw and 0.2 million wet tons wood chips must be used in the Danish electricity production. Second amendment to the Biomass agreement of 1 march 2000 The targets set in the biomass agreement are sustained and must be met by Energy agreement of 22 March 2012 Expected use of solid biomass of 114 PJ and a 10 % mandatory blend of liquid biofuels for transportation by Electricity agreement of 6 June MW decentralised CHP based on domestic resources as natural gas, straw, wood chips, waste or biogas. Energy agreement of 20 March 1990 Promotes CHP and natural gas and other environmentally benign fuels. chips, waste or biogas. First amendment to the Biomass agreement of 1 July 1997 Increase the flexibility of biomass sourcing. Energy agreement of 21 February 2008 Increased feed-intariffs for biomassbased electricity to improve competitiveness. Niclas Scott Bentsen. Mobilization of agricultural residues for bioenergy: Barriers and sustainability. See also Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 11

12 Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 12 Department of Geosciences and Natural Resource Management POLICY INSTRUMENTS Taxes on coal and natural gas CO2 taxes (GHG emission reductions and energy savings) Energy Tech. Develop. & Demonstration program (EUDP) Renewable Energy process support (VE process) Security of supply tax on all fuels (bio and fossil) for space heating (replaced by a general tax increase in 2014) Taxes on oil and electricity (but not fuels for electricity) Investment support for wind mills (until 1989) Feed-intariffs: fixed & premiums for renewables (wind: 1991) Public Service Obligation (PSO)-tariffs + ForskEL (paid by electricity consumers - to support new RES tech. ) ForskVE (financed by PSO tariffs) Increased feed-in-tariffs Energy companies agreement with the government on energy savings support Financing of the state budget

13 Department of Geosciences and Natural Resource Management POLICY TARGETS BY 2020 EU Renewable Energy Directive 2009 DK: 30% renewables The Danish Energy Agreement 2012 > 35% renewables ~ 264 PJ (assuming 7.6% energy savings) Biomass expected to contribute 114 PJ, currently PJ yr -1 ) Approx. 50% electricity from wind power (currently 33%) 7.6% reduction in energy consumption in relation to 2010 (816 PJ to 754 PJ yr -1 ) 34% reduction in greenhouse gas emissions in relation to 1990 (target by 2012: 21%, currently 14%). Current use (2012): 25% renewables ~ 200 PJ 2-3% straw ~ 18 PJ ~ 1.4 Mtons of wet straw yr -1 Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 13

14 Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 14 Department of Geosciences and Natural Resource Management ENERGY STRAW POTENTIALS Mtons yr -1 NREAP DK 2010 National Action Plan for Renewable Energy in Denmark. KU/AU The + 10 miooion tonnes study. Increasing the sustainable production of biomass for biorefineries.

15 Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 15 Department of Geosciences and Natural Resource Management STRAW AND RES TARGETS PJ yr -1 35%

16 Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 16 Department of Geosciences and Natural Resource Management THE FUTURE OF STRAW FOR ENERGY? Large plants shift to wood pellets and chips Continued decline? 2G bioethanol? Biooil? Biogas? New smaller DH? Energy in Denmark The Danish Energy Agency. Photo: Inbicon.

17 Department of Geosciences and Natural Resource Management SUMMARY 1973 : Almost 100% fossil energy system - Oil crisis 1976 : Policies to increase energy security 1985 : The nuclear energy option given up 1986 : Decentralized CHP based on domestic energy sources 1990s: Feed-in-tariffs and CO 2 taxes 1993 : Biomass agreement: straw mandated for electricity 2006 : Emerging policies for a fossil independent future by : Increased feed-in-tariffs 2009 : Biomass agreement fulfilled 2012 : Energy agreement expected 114 PJ from biomass 2015-: Increased use for biogas, small DH plants, bioethanol and biooil? New policy measures needed? Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 17

18 Joint workshop on the use of agricultural residues for bioenergy, Kiev Sep Slide 18 Department of Geosciences and Natural Resource Management THANK YOU! Photo:

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