The Norwegian bioenergy sector

Transcription

1 The Norwegian bioenergy sector plans, policies and market opportunities Oslo Cato Kjølstad, Managing Director Norwegian Bioenergy Association 1

2 NOBIOs BUSINESS MEMBERS COMMERCIAL BIOENERGY PRODUCTS Bioheating; District heating (small/medium/large) and local energysupply (stand alone - sytems) based on biomass (wood chips, pellets etc) CHP (Combined heat and power ) Biofuel for the transport sector (import, domestic production and distribution) Biogas 2

3 Stationary landbased bioenergy solutions represent the largest value chain in the Norwegian Bioenergy sector Biomass production Wood resources (and waste) Production of thermal energy Distribution of hot water 3

4 NOBIO : Approx 350 members along the (different) chain of values: Forest owners Forest based industry Producers of wood chips and wood pellets Equipment manufacturers and Norwegian agents/importers Producers and distributors of thermal energy (both large scale and small scale companies) Biofuelcompanies (import, production and distribution) Consulting firms/energy consultants Other (industrial) companies taking position in the bioenergy market Main goal: Profitable production and distribution of climate based bioenergy that gives an increased share of the energy market 4

5 The Norwegian Bioenergy Association - facts How we work: Influencing (lobbyactivities) Governmental Policy on relevant issues Information (communication) to members, the public and other stakeholders ( Cooperation through sector network, arranging relevant seminars etc. Main goal: Profitable production and distribution of climate based bioenergy that gives an increased share of the energy market 5

6 Use of energy in Norway 228 TWh The use of bioenergy today is approx 14,5 TWh Source: Statistics Norway

7 Production of energy in Norway - Year 2008 Energysource Domestic production and export of energy (TWh) Domestic consumption of energy (TWh) Percentage Bioenergy, including biomass in the district heating 14,4 13,8 6,1 % Fossile energy (oil, gas, coal) 2488,9 100,0 43,9 % Hydro power 142,6 114,2 50,0 % Total 2645, ,0 % Source: Statistics Norway

8 Norway and the EU-directive (renewables) Calculated percentage renewable energy consumption in Norway is 58%: Consumption renewables (domestic):134 TWh Total energyconsumption in Norway: 228 TWh The new renewable goal for Norway: Not decided; will be negotiated with EU If EUs formula decides: we have to raise with 14 % (new target will be 72%) Within 2020 this requires; New production = 32 TWh, or Reduced consumption of 44 TWh Conclution: Bioenergy has to be a central part of the solution 8

9 Stationary, landbased energy supply in Norway Historically, Hydro Power was available in abundance at low prices for many decades (120 TWh) up to 2003 Then the price of electricity raised between But falled again in the end of 2008 and is still on a low level in 2009 (ref: development of the financial crisis). and a dominating part of the heating market is still based on el (hydro power) approx 30 TWh electricity used for heating & hot water in houses The total market for heating solutions represent approx 55 TWh (when we include industry, public sector etc.) The rest of the heating market is fullfilled with oil, gas and bioenergy 9

10 Dominating barriers in the market (bioheat) 1. Lack of market (Lack of bioheat-systems (hot-water distribution) in buildings) 2. High cost level / lack of profit caused by - low price on electricity - High level of cost (investments) when establishing new bioheat - a special solution in Norway that gives customers lower price on elecricity (netconnection) if they have a stand alone energy back-up available (Government; stop from 2012) 3. In many parts of Norway the value chain for utilizing the biomass for the bioheat producers is not fully developed! Source; Barrierestudiet 2007 (NoBio/Enova) 10

11 Use of bioenergy(stationary) Sweden compared with Norway 140,00 120,00 100,00 TWh 80,00 60,00 40,00 20,00 SV-bio NO-bio 0,

12 The Government realeased a strategic plan for Bioenergy in Norway (April 2008) Main content in the plan Main goal: 14 new TWh within 2020 Which gives a estimated new level in 2020: 28,5 TWh (in the landbased stationary energy sector). NoBio : The biomass resources is available : Set the plan into action! The main goal (14 new TWh) has to be a part of the agreement between Enova SF and The Government (OED) 12

13 To fulfill the long term plan (14 new TWh within 2020 ) requires action... 30,00 25,00 20,00 TWh 15,00 10,00 5,00 0, P2008 P2010 P2012 P2014 P2016 P2018 P

14 Fulfilling the Governments strategic plan FINANCIAL SOURCES The financial situation in the market: requires both private capital and Financial solutions from the bank sector and Investment support both from Enova SF and Innovation Norway. INNOVATIVE POLICY MAKING Raise available capital for R & D Set TWh-goals (14 TWh) for bioenergy investments Increase the support scheme from Enova and Innovation Norway for the bioenergy sector 14

15 Short term plans (stationary sector) ENOVA (The Government budget for 2010 ) NOK available for financial support : Wind, bioenergy and energy efficiency solutions The Government (after decision in the Parlament, desember 2009) raises the energy fund from NOK 20 billion and up to NOK 25 billion Introducing the sertificate market (agreement signed sept 2009 between Sweden and Norway) to be implemented from 2012 (january 1st) Expected price on new renewable el-sertificates = NOK øre/kwh (2,4 euro cent 3 euro cent) Focus in Enova will after this be turned to the heating market and energy efficiency 15

16 Strategic role for biofuels Source: The Norwegian Commission on Low Emissions,

17 Framework biofuels - status 2009 Tax reduction on B5, B100 and E85 Announced fuel standard: 2,5 percent (volume) bio from Q2 5 percent bio from Q (to be evaluated) Includes carbon- and sustainabilityreporting NOK reduction on vehicle registration tax for E85-cars from Q

18 Framework biofuels in Norway Tax reduction on B5, B100 and E85 Government plan: Taxes on B5, B30, B100 etc. Fuel standard: 2,5 percent (volume) bio from Q (exist) 5 percent bio from Q (to be evaluated) (maybe) Includes carbon- and sustainability-reporting NOK reduction on vehicle registration tax for E85-cars from Q Government plan; No existing alternative from Q

19 Framework biofuels in Norway Tax reduction on B5, B100 and E85 Government; Taxes on B5, B30, B100 etc. NOBIO: Working with reversing the Government plan Fuel standard: 2,5 percent (volume) bio from Q (exist) 5 percent bio from Q (to be evaluated) (maybe) Includes carbon- and sustainability-reporting NOBIO : We might succeed lifting the level in the plan up to a higher percent on biodiesel and bioenthanol NOK reduction on vehicle registration tax for E85-cars from Q Government; No existing alternative from Q NOBIO: Working with continuation and increasing this supportscheme 19

20 International company with HQ in Sarpsborg Business-areas: ChemCell, LignoTech, Synthesis, Ingredients and Energy Producer of cellulosic ethanol as a biproduct since the 1930 s (18 mio litre/year in Sarpsborg and 12 mio litre/year in Switzerland) Evaluate different 2. generation technologies Focus related to biofuels: Biorefinery One of the key owners in FAME-plant in Fredrikstad (Uniol) 20

21 Investment decision Q Investing 340 mio NOK (40 mio Euro) in turn-key FAME plant Multi Feed Stock plant from Biodiesel International in Austria Feedstock: Rapeseed- and soybean oil etc. Main product; biodiesel Production online from Q

22 Municipally owned wastetreatment company Produce upgraded biogas from waste and sewage Production: Dedicated for public buses and vehicles Possible expansion: Biogasroad from Oslo to Göteborg 22

23 The market opportunities for bioenergy (I) The stationary energy sector The market consists of production of wood chips and pellets, bioheat, biopower (CHP), biogas and biofuel (for vehicles) The traditional paper & wood industry has utilized bioenergy for quite a number of years, and obviously represents a market for manufacturers Wood resources utilized today is approx. 8 mill m3 realistic potential is up to 20 mill m3 technical potential is approx 25 mill m3 Several market opportunities along the complete chain of value 23

24 The market opportunities for bioenergy (II) The stationary energy sector The Norwegian bioenergy market for general energy supply is still in its early phases - in particular for market development Customers groups: district heating systems but also consist of single industrial users as well as households and small scale Local Energy Suppliers (L E S) Several market opportunities along the complete chain of values 24

25 Summary Good timing for a significant lift in activity for renewable energy Potential for further business development both for the Norwegian and the international industry The mix of developing good business cases compared with developing competence,r& D, raising capital and governmental action plan decides whether we will reach 14 new TWh in the stationary landbased bioenergy market Both biofuel and biogas represent businessoppportunities if the Government do the right framework 25

26 Global warming requires renewables Thank you! 26