Environmental and economical added value of the short chain in Piemonte region.

Transcription

1 Conference Regional added value in European regions with renewable energy and resources Environmental and economical added value of the short chain in Piemonte region. Miesenbach November 24, 2009 Giuseppe Tresso Ipla S.p.A

2 1. Presentation of Ipla

3 Ipla S.p.A. Forestry and Environment Institute Company founded in 1979 by Piemonte Regional Government. Public owned firm providing in-house public services at local level. Turnover 2008: 15 million.

4 Technical area: Environment VEGETATION AND FAUNA This department works at studies, surveys and researches aimed to improve the knowledge and conservation of forests, pastures and fauna. It provides planning proposals and management projects. SOIL DEPARTMENT It carries out soil studies and surveys aimed to defining soil vulnerability and soil suitability for specific crops.

5 Technical area: Renewable Energy and Forestry Management BIOENERGY AND AGROBIOLOGY This department works at studies and plans for biomass utilization, waste recycling in agriculture and energy production, waste components identification and quantification, waste management. WOOD - FORESTRY AND TIMBER Department It works at forest heritage protection, increase and quality improvement of timber and other products of the woods, professional training.

6 Ipla S.p.A. - Forestry and Environment Institute Ipla works for the Government of Piemonte Region, with other Italian and international public organizations and with EU. Ipla takes part in numerous projects in the context of international cooperation, with emerging countries such as Peru, Brazil, Argentina and China. In 2006, Ipla has started new projects in Ukraine, Romania, Poland and Latvia for the sake to cooperate in organizing international chains Wood Agriculture Energy. Since 2007 Ipla has developed, a programme for the sake of organizing a regional network in the wood-energy sector.

7 1. Presentation of Ipla 2. Added value in Local Economies

8 Industrial economy in Piemonte It s based on logistics: Economy of scale. Upstream: global-wide supply chain. Downstream: high production level; global market. - Manufacturing industries - Wine production - Rice cultivation - Services (industrial design, ICT) - Winter sports (Olympic Circle) - Summer tourism (lakes area) - Fashion clothes -.

9 Mountain rural economy in Piemonte Structural weakness: Energy and land are common goods to share with all members of a local community. Few spontaneous advantages for private initiative. Philosopy of life and production more responsible and dialogical. short chain!

10 At last, something has changed For the first time in recent history, there are all the conditions for a consistent valorisation of mountain areas in Piemonte. 0,28 per kw e means a new market for local wood. Mountain Community reorganized as Development Agency. Decentralization of the energy institutional competences. High expectations are set.

11 WIN-WIN philosophy: coupling technology with sustainability the whole set of existing species selected by the evolution in ages The state of nearness of technologies adequate at the social and economic level of local development The increasing demand of sustainable products

12 Bio opportunity means Forest Energy Cooperative entrepreneurship. Public and private partnership. Short chain as a value. Profit Territorial Management Typical productions Sustainable mobility Landscape Tourism Services Industry

13 Added value in local economies Social sharing of the commons through partnership. organizations at local level means: 1. Making sustainable the use of the commons. 2. Enhancing the availability and the quality of local resources through innovation and investments. 3. Using profits to regenerate the resources. 4. Organizing a public /private governance system. Private firm Innovation Profit Network Territory Shot chain Job

14 1. Presentation of Ipla 2. Added value in Local Economies 3. Biomass scenario

15 Return on renewables in Italy. Biogas Biofuels Biomass Solar Hydro Wind Time to Break Even Point (years) Rate of Return % Fonte: Alessandro Nova, UniversitÖ Bocconi, 2009 Maybe a little bit too optimistic Biomass estimated cost: 40/45 ton. Under evaluation of investment in plants and equipments. Long term efficiency not proved. Anyway, significant indications!

16 Biomass available in Piemonte, 2009 Category Forestry Arboriculture Assortment Wood chips Uncumminuted wood Poplar cultivation SRF Surface (1000 ha) 540,6 Production (1000 t) 1.108,0 954,3 48,2 79,3 - - Actually the demand is low. BUT the amount of physically available biomass is huge: Orchard and grapevine residues Vine pruning and waste Hazel pruning Orchard pruning 22,0 28,6 11,0 13,2 7,9 15, ha of usable surface. Whole trees 18,9 53,8 3 million tons every year Cereals residues Corn waste Rice straw Rice waste 173,1 138,5 117,6 294,6 120,2 2 2 million from forests. 1 1 million from vineyards. Sawmill residue 274,6 Total 939, ,8 Fonte : Regione Piemonte. Relazione programmatica sull'energia (High scenery)

17 At 0,28 cent per kwe, just in Piemonte GWh Th. WOW! GWh El. Kyoto projects jobs actually, this will not happen, anyway

18 Monitoring of Technologies Europe: Gussing (A) Guascor (E) NewTec Pirox (D) XyloWatt (B) Biomass Research (UK) P2P (CH) Italy (Existing plants): Planitec Bio&Watt Caema Rivoira Idata Energy Archea Turboden Inspection, technical and financial audit Financial audit Inspection, technical and financial audit Italy (plants in costruction or R&D projects) Autogas nord Enegryindustrie S.p.A. ChemTex M&G Engitec Caluso Cover Verbania Financial audit Project evaluation

19 anyway these are good times!! So we have defined a cooperation proposal between: 1. Technology companies 2. Logging and chain firms 3. Public Authorities For the sake to produce energy at a large scale with biomass of our forests and agriculture.

20 Open questions How to control the whole chain and guarantee investments? How to organize and assist enterprises to take part in business? How to protect environment from degradation and decline of biodiversity? How to be sure that biomass industries provide real benefits to local populations?

21 1. Presentation of Ipla 2. Added value in Local Economies 3. Scenery 4. The Ipla proposal

22 Our aim is To reach, to harvest and to valorize at least 25% of available biomass in Piemonte, in 5 years, through small size plants.

23 Steps Institutional agreement Setting up a lucrative and sustainable bioenergy chain requires solid relationships between Regional governments, local administrators and business organizations. Technical planning Business & financial planning Management & monitoring

24 Institutional agreement Steps 1) Institutional Agreement Determines goals and strategies; Sets financial and juridical instruments; Forces through sustainability. Technical planning Business & financial planning Management & monitoring

25 Field of Action Universities Association of farmers / owner Territory Biomass Studies and research Planning Organization resources Training Resources planning Biomass trade Management Firms Forestal consortia IPLA Plants Financing Technical procedures Innovation Local Authorities Energy Energy trading Banks Kyoto Carbon evaluation Emission trading Certification

26 2) Technical planning (SHORT CHAIN) Institutional agreement Feasibility studies Research and experimentation Sustainability guidelines for plants and processes Planning and monitoring Technical planning Business & financial planning Management & monitoring

27 Pilot projects SMALL POWER GENERATION A cooperation between 1. Mountain Communities 2. Technology companies 3. Forestal Consortia Aim: kwe plants: 1500 /2000 ha of forest cultivation. Maximum use of thermal energy. Minimization of transportation cost. Needs: detailed business plan

28 Pilot projects ENERGY FROM GRAPEVINE A cooperation proposal between 1. Grapevine cultivators 2. Winemakers 3. Public Authorities Aim: 1MWe from: - Vine pruning - Wine production residues Needs: logistic

29 SHORTCHAIN SYSTEM Pilot projects An integrated supply chain from: 1. Mountain Community 2. Private companies Pellets and wood-derived high value production. Aim: 1MWe + 2,5 MWth from: - Forestry from 40km. - SRF - Agriculture waste

30 Steps 3) Business Planning Institutional agreement Trade structures Investors Joint ventures: roles and tasks Green certificates and similar Structural funds Technical planning Business & industry planning Management & monitoring

31 Economic framework Compensation of territory and local chain 80 per tons. Payment of technology < 300 kwe 1 mil. 600 kwe 2,3 mil. 900 kwe 4 mil. > 1MWe 4,5 mil. per MW. Financial remuneration Agreement with BANCAETICA Compensation of public promoter < 2% on investments

32 Steps Institutional agreement 4) Management and monitoring Long term vision and planning Certification of the chain activities Technical planning Business & industry planning Management

33 Scheme Public Authority Consortium 51 % Energy company 14 % Technology Partner 35 % Know how Guarantee Association of producers Chain industrial Partner Territory Management Pruning Residue Supply Revenue sharing Know how Integrated chain (Potential) Public partner Heat Assets

34 1. Presentation of Ipla 2. Added value in Local Economies 3. Scenery 4. The Ipla proposal 5. Conclusions

35 With NO institutional action The high incentives to energy production from renewable sources provided by Italian government will induce... PERHAPS Small extra - profits for relatively few big farmers; Few plants located in the richest and smartest mountain community. CERTAINLY Growing technology costs. Diffused speculations based on the unsustainable import of biomass from eastern Europe countries. No social and economic advantages for marginal territory and local population.

36 Our philosophy Energy is a medium, not the ultimate aim We don t support a particular technology... We want to create a regional sustainable and modern system based on a principle that cannot be renounced: every technical choice connected to the available energy in our mountains must consider local interests and must leave the most part of added value on the territory, in term of profits, jobs, environment quality and landscape. This aim is our business! Thank you for your attention! Beppe Tresso - Ipla S.p.A.