1022R4 ECOREGIONS project, Component 3 Capitalisation workshop PREE good practice transfer in Kainuu Timo, Jouni & Ninetta

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1 1022R4 ECOREGIONS project, Component 3 Capitalisation workshop PREE good practice transfer in Kainuu Timo, Jouni & Ninetta Brussels, 12th & 13th November Regional Council of Kainuu

2 Land use and Urban- Rural Typolog y in Europe (2011)

3 Kainuu region Region of Kainuu is situated in Eastern Finland Consists of nine municipalities: Hyrynsalmi, Kajaani, Kuhmo, Paltamo, Puolanka, Sotkamo, Suomussalmi, Ristijärvi and Vaala Land area ( km 2) comparable to Belgium in size Kainuu is well-known for its forests, nature, measurement technology and good opportunities for sports Regional Council of Kainuu

4 Wood energy in Kainuu region The share of renewables of primary energy consumption is high, 56 % (Wood energy 27 %) Kainuu: Forest land: 1,75 milj hectares, Population: hectares of forest for every citizen Cold winter - Wood energy for heating Wood pellets and briquette production Integrated production of timber/pulp wood and energy wood Economical and technical forest energy potential is at least 1300 GWh/a (young stands and residues from final cuttings). We are focused on forest energy production and use

5 Kainuu region Regional Council of Kainuu

6 Regional Council of Kainuu Regional Council of Kainuu is the region's statutory joint municipal authority; Kajaani, Sotkamo, Kuhmo, Ristijärvi, Suomussalmi, Hyrynsalmi, Paltamo,Vaala, Puolanka The council have two main functions laid down by law: 1) regional development and 2) regional land use planning. The council is the regions' key international actors and it is largely responsible for the EU's Structural Fund programmes and their implementation Regional Council of Kainuu

7 Organisation of the Regional Council of Kainuu 2013 Staff of the Regional Council of Kainuu, ca. 26 The Assembly of Regional Council (37) Regional Board (13) Inspection Board (5) Protection of Interests Regional Mayor Executive Board Administrative Services Administrative Manager Communications Shared with Kainuu Social and Health Care Joint Authority Land Use Planning Planning Director Regional Development Regional Development Director Business and Industrial Policy, Projects Development Director

8 REGIONAL DEVELOPMENT SYSTEM The Ministry of Employment and the Economy (MEE) Finnish regional development aims REGIONAL PLAN FUTURE VISION STRATEGY FOR DEVELOPMENT REGIONAL STRUCTURE REGIONAL PROGRAMME development actions REGIONAL MASTERPLAN land use The Ministry of the Environment Finnish land use aims IMPLEMENTATION PLAN land use in the municipalities Regional Council of Kainuu

9 The Bioenergy cluster in Kainuu Region Regional Council of Kainuu

10 Developing the Bioenergy cluster in Kainuu Region Bioenergy Programme Coordinator Kajaani University Consortium/Cemis-Oulu Forest energy, agrobiomass, solar, wind, peat, Bioenergy committee in Kainuu 16 members from companies and public organisations or authorities Commitee steers the development in bioenergy sector in Kainuu region

11 Kainuu Bioenergy Programme The targets of the Kainuu Bioenergy Programme General targets Increase the gearing ratio of bioenergy in Kainuu Strengthen the bioenergy cluster Improve energy efficiency, add the production and use of local bioenergy, strengthen the education and business possibilities Quantitative targets concerning wood energy Add the use of forest energy up to 700 GWh/a and production up to 900 GWh (900 GWh = solid m 3 /a) in power plants Increase the number of wood pellet users up to 600 in Kainuu region.

12 Content of Bioenergy Programme The present state of energy use in municipalities Bioenergy potential in Kainuu Forest energy, agrobiomass, biogas, Project ideas

13 Energy consumption in Kainuu region 2012 Traffic 15% Peat 10% Motor oil 6% Heating oil 7% Other renewable 4% Renewable electricity 26% Wood energy Heating 30% pumps 2% The share of Renewables is 61% The consumption of primary energy GWh Renewable electricity 1086 Wood energy 1403 Heating pumps 79 Other renewable 191 Heating oil 274 Peat 453 Traffic 703 Motor oil 344 Other, non-renewable 15 Electricity from non-renewable resources 0 Total 4547

14 District Heating Plants in Kainuu region

15 The use of Fuels in District heating Plants in Kainuu GWh Fossils Peat Wood Other

16 PREE GP cooperation with Picardie Regional Council of Kainuu

17 PREE GP transfer to Kainuu, reminder of steps Pre-selection of PREE Spring 2012 (Kainuun Etu screened ECOREGIONS GPs, then selected 5 among them, and proposed them to the Regional Council of Kainuu - RCK, then Joint Authority) Participation Kainuun Etu in the PREE presentation in Limoges, May 30th 2012 Meeting Regional Council of Kainuu with ECOREGIONS LP during the ECOREGIONS interregional meeting in Kainuu, Site visit in Picardie, ECOREGIONS LP and Kainuun Etu, July 7th and 8th 2013 Report on the site visit (Kainuun Etu) delivered to the RCKand cc to ECOPREGIONS LP, Meeting with Bioenergy Group (Thematic Programme, SMEs, Waste Association, KE) , review Gas GP + PREE Meetings with the RCK and the Bioenergy Thematic Programme throughout autumn 2013, discussion of PREE from many points of view. Review meeting RCK, Bioenergy TP, KE, , agreement how PREE and Gas GP would be transferred Regional Council of Kainuu

18 Our understanding of PREE Performance above minimum standards PREE Phased implementation Phase 1: DIAGNOSIS A listening time - diagnosis of the "consideration of the environment on the business Phase 2: BUILDING SHARED VISION Consolidation of the intervention strategy per each approved businessproject PREE Governance (network comprising internal and external partnership) The Eco-Business Department: (1) 1st mission: to strengthen the consideration of the environment by businesses; (2) 2nd mission: to support eco-activities in order to become a driver of innovation and competitiveness and competitive advantage for Picardy with two priorities renewable energy and eco-building. Partnership: (1)Environment Agency and energy management which is attached to the State; (2) CODEM, Nord Picardie Bois, Chambe rof Commerce and Industry; (3) Entreprises PREE operational arrangements Knowledge networking Involvement of regional and national level, industry and technology specific expertise Institutionalisation (of the PREE partnership network) Individual companies and clusters / supply chains Phased implementation Diagnosis Building shared vision Monitoring Operational arrangements Knowledge networking Institutionalisation Sustainable investments Phase 3: MONITORING Coordination aspects of each proejct implementation: A time of operational implementation - monitoring, evaluation and communication Sustainable investments (grants to environmentally performing companies and related networks) Governance Regional National Regional Council of Kainuu

19 Relevance to Kainuu Sustainable development absolute priority of the program based regional developing (Regional Plan, Regional Masterplan, Regional Implementation Plan) Acknowledged needs to increase competitiveness of SMEs in a sustainable way Regional and national knowledge strengths Methodological approach already under consideration (low barriers for entry of the GP) In the region like Kainuu sustainable development, bio economy, green economy create new business: In the region there is lot of biomass (renewable raw material) There is lot of knowhow how to develop high value products from biomass (universities, university of applied sciences, developing companies, international and national firms etc.) Regional Council of Kainuu

20 Interest to transfer Performance above minimum standards Individual companies and clusters / supply chains Methodology Phased implementation Diagnosis Building shared vision Monitoring Operational arrangements Knowledge networking Institutionalisation Sustainable investments Governance Regional National (Motiva?) Outputs (leading to new investments of individual SMEs as well as of value chains / clusters) Results Competitiveness Energy efficiency Increase of energy efficient production competences in the region Regional Council of Kainuu

21 Action plan Supply chain we plan to test: District heating energy savings in energy recovery from wood Feasibility study (piloting on a regional supply chain) Assessment Integration of method into local development funding Regional Council of Kainuu

22 Lumber m3 Supply chain example Kuhmo Example of Local Bioenergy Production Wood chips to pulp mill Raw wood m3 Sawmill Bark Sawdust Electricity and district heating Sawdust drying by heat recovery Wood ash, used to fertilize the forests, 800 t/a Lumber Briquet manufacturing t/a Power plants Planed timber manufacturing (eg. Panel boards) Cutter shavings Pellet manufacturing t/a House warming

23 Kuhmo Case is a good example of business cooperation in bioenergy sector Kuhmo case shows how: companies can cooperate and make successful business (heating entrepreneurship, wood pellet production, )

24 Municipality of Kuhmo example of local bioenergy production example, how bioenergy has created a closed circle in business: side products of some companies (Kuhmo Ldt Timber) are raw material of companies producing bioenergy (Kuhmon Lämpö Ltd Energy company, M- Pelletti Ltd, wood pellets): for example side products of timber industry are raw material used in manufacturing pellets by other companies strengthen regional income (employment,..) produce biofuels to higher level (wet sawdust to highquality wood briquets, ) a way to get rid of fossil fuels

25 PREE GP transfer session and what we would like to know more from the GP exporting region Which are the strengths in terms of the PREE process you have initiated, do you recommend to copy paste? Which type of supply chain projects have been the most successful and to what aspects do you attribute this success How much investments have been increasing as a result of PREE? Are there indications of increased demand for new work places? How much? Any demand for more skilled workers? How much? Do we need another site visit? Regional Council of Kainuu

26 Biogas GP cooperation with Jämtland Regional Council of Kainuu

27 Traffic biogas There is a need for road map of traffic biogas in Kainuu Region So far, in Kainuu there is only few small producers of biogas Two farms in the municipality of Suomussalmi (CHP-unit and Heating plant) MTT Sotkamo (MTT Agrifood Research Finland) is focusing on biogas (also traffic biogas) Raw materials in Kainuu Region Municipal sludge t/a Sludge from farms t/a Other organic waste (Food waste, ) t/a Dump gas 1,5 MW (4,9 GWh/a) + 0,25 MW Traffic biogas is coming and we need a Road Map, how to start the production, delivery and use. Sitevisit to Jämtland

28 Action plan Roadmap for biogas for Kainuu in planning stage Optimsie the qualtiy of the roadmpa through the GP discussions and inputs in Jämtland Roadmap formulaetd during spring 2014; partially co financed by ECOREGIONS