Bioenergy in Norway will double within 2020 (or will Bioenergy in Norway double within 2020?) Cato Kjølstad, Managing Director Norwegian Bioenergy Association
The Norwegian Bioenergy Association - facts Approx 350 members along the complete chain of values: Forest owners Forest Industry Producers of wood chips and wood pellets Equipment manufacturers Foreign companies selling bioenergysolutions (throuh agents, representatives) Producers and distributors of thermal energy (both large scale and small scale companies) Consultants Biofuelcompanies (import, production and distribution) Other (industrial) companies taking position in the bioenergy market Nordic cooperation with Svebio, Danbio og Finbio Member of AEBIOM with office in Brüssels How we work: Influencing (lobbyactivities) Governmental Policy on relevant issues Information (communication) to members, the public and other stakeholders (www.nobio.no) Cooperation through sector network, arranging relevant seminars etc. Main goal: Profitable production and distribution of bioenergy based on a significantly increased share of the energy market
Global warming requires renewables Bioenergy is a part of the solution
Use of energy in Norway 223 TWh The use of bioenergy today is approx 14,5 TWh 2007 Statistisk sentralbyrå
The production of energy in Norway 2 550 TWh Elektrisk strøm ; 135 Kull; 31 Bioenergi ; 15 Olje- og gass Elektrisk strøm Kull Bioenergi Olje- og gass; 2369 Source: www.ssb.no
Stationary, landbased energy supply in Norway Historically, Hydro Power was available in abundance at low prices for many decades (120 TWh) up to 2003 and a dominating part of the heating market is 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 To day: Almost full stop in the development of remaining major waterfalls due to preservation of nature significantly increased prices for electricity after 2003 - further development of renewable energy Establishing Enova SF represents a shift in the Norwegian landbased energy approach
Use of energy in Norway 223 TWh The use of bioenergy today is approx 14,5 TWh 2007 Statistisk sentralbyrå
1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 TWh Use of bioenergy Sweden compared with Norway 140,00 120,00 100,00 80,00 60,00 40,00 SV-bio NO-bio 20,00 0,00
A strategic plan for Bioenergy in Norway(I) The Norwegian Government released a document in april this year A strategic plan for Bioenergy in Norway Main goal: 14 new TWh within 2020 The level of bioenergy production and use in 2007 was 14,5 TWh NoBio : Realistic or not?! At least It requires an action plan! It has to be a part of the agreement between Enova and OED
A strategic plan for Bioenergy in Norway(II) The Norwegian Government : It is realistic to reach the goal and hereby double the domestic production and use of bioenergy (april 2008) NoBio : We expect that Norway will be a visible player in the bioenergy market
1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 P2008 P2010 P2012 P2014 P2016 P2018 P2020 TWh To lift the level up with 14 new TWh within 2020 30,00 25,00 20,00 15,00 10,00 5,00 0,00
To days financial situation requires action NoBio: The financial situation requires both private capital and financial solutions from Enova, Innovation Norway etc Invest in climate solutions and renewables Increase the investments in Bioenergysolutions
The market opportunities for bioenergy (I) 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 16-20 mill m3 technical potential is approx 25 mill m3 Several market opportunities along the complete chain of values; the typical project will be small investments 5 20 mill NOK
The market opportunities for bioenergy (II) The norwegian bioenergy market for general energy supply is still in its early phases - in particular for market development The bioenergy market is part of the market for district heating systems but also consist of single industrial users as well as households small scale Local Energy Suppliers (L E S) Several market opportunities along the complete chain of values; the typical project will be small investments 5 20 mill NOK
Examples; The market opportunities for bioenergy (III) Traditional large energysuppliers (based on various energy solutions) is playing a more dominating role in the bioenergy market for district heating. Their plans for investing in new bioenergy production is estimated up to approx 6 TWh within the next 2-4 years A Norwegian consulting firm, X-rgia, has estimated that there wiil be established a new production of approx 7 TWh based on local bioheat within 2020 An example; A new CHP will be able to produce power for approx 10 000 households and will be combined with pellet production on a level of 450 000 tonn per year - (the Norwegian production to day is on a level of 60 000 tonn and 50% is exported)
Barriers in the market? Biomass production Wood resources (and waste) Production of thermal energy Distribution of hot water
Barriers in the market of bioheat 1: Lack of market (Lack of bioheat-systems in buildings) 2: Lack of profit (a high cost level). caused by - low price on electricity - High level of cost (investments) when establishing new bioheat - a special solution in Norway that gives companies lower elecricityprice (net-connection) if they have a stand alone energy back-up available 3. In some parts of Norway the value chain for utilizing the biomass for the bioheat producers is not fully developed! Source: Barrierestudiet 2007
Customer groups Companies related to the forest owners The wood and paper industry The producers and distributors of thermal energy The retailers for households The agriculture sector (small scale L E S) Limited production of hardware in Norway significant share is imported, mainly from nordic countries, Austria & Germany
Summary Good timing for a significant lift in activity for renewable energy Potential for further business development both for the Norwegian and the German industry The mix of the market and the level of governmental action decides whether we will reach 14 new TWh or not