Efficient and Sustainable Use of Biomass for Energy Jacob Møller Chief Advisor Delegation from Vietnam 25 October 2013

Production of Renewable Energy 1980-2011

280 Biomass Plants in Denmark Wood or straw: 200 district heating plants 15 CHP plants Biogas: 33 CHP Municipality Solid Waste: 24 CHP plants 8 district heating plants 12% of the electricity consumption and 26% of space heat consumption from biomass, incl. organic waste. Denmark has commissioned 275 biomass plants producing district heat. Most of these use straw and wood chips as fuel. More than 200 district heating pants incinerate wood and straw. Biogas plants are often small or medium size plants, while municipality solid waste typically is burned at medium or large scale plants. It is noteworthy that a wide range of biomass is used at plants which differ greatly in scale. Advanced technology is developed for small, medium and large scale plants.

District Heating Production by Fuel Biomass exempted from energy tax An important feature is also the introduction of clean and environmentally benign fuels. Oil has been almost phased out as a fuel for DH. Natural gas – the yellow colour - has been introduced and is to day the second most important fuel. The dominating fuel is now biomass and waste – marked by the green colour. As much as 42 pct. of all district heating is now produced on biomass. 25 years ago biomass and organic waste constituted 10 % of the fuel used for district heating – to day the share ranges at 42 % Thus 25 pct. of all houses and buildings in Denmark are heated by biomass-based DH. The economy is very favourable, I will return to that. District Heating = Heat supply for 62 pct. of all houses. 26% of all houses in Denmark are heated by biomass-based DH

Financial Support for RE-Electricity (2012) Favourable prices for electricity shall double the share of RE-electricity in 10 years to about 70 pct. by 2020. Wind power: Large-scale wind farms are promoted by public tenders – lowest sales price per kWh is main criteria. Local small-scale wind projects promoted by fixed premium on top of market price (3.4 €-cent/kWh for averagely half of the wind turbines production). Biomass: Producers receive fixed premium on top of market price (2 €-cent/kWh). Solar PV: Net metering scheme – can in popular terms let the electricity meter run in reverse. Fixed tariff for produced electricity, which exceeds consumption (per hour).

Financial Support to Renewable Electricity (2012) €-cent per kWh Average direct financial support in 20 years. Grid costs not included. The financial support is PSO and paid by the electricity consumers.

New energy agreement (2012) From coal to biomass in large scale CHP’s (will supply maybe 1/6 of total electricity demand by 2020). Better possibilities to share tax exemption on heating More renewable energy in industry

Future Development of Renewable Energy 50% from wind power in 2020 Energy Agreement 60% from biomass in 2020

Study on sustainable and efficient use of biomass

The scope for the study is broad

The issue of carbon debt Men én ting er hvor meget biomasse der måtte være, hvad efterspørgslen er og hvad det så måtte koste. Noget andet er hvor miljømæssig bæredygtig effekten af at anvende det er. I klima og energisammenhæng er det ikke overraskende at det især har været drivhusgasregnskabet, der har været fokus på. I den forbindelse er der ofte blevet lavet livscyklusanalyser, hvilket der også fremgår af kommissioret at der skal laves i forbindelse med bioenergianalysen Her er et stiliseret eksempel på en af den type LCA analyser der er blevet lavet. Brugen af bioenergi sammenlignes med den tilsvarende brug af fossile brændsler. Her er der så en merudledning ift fossile brændstoffer men i takt med at skoven/biomassen vokser indhentes det tabte og trods det at der vedblivende bliver taget den samme mængde biomasse ud bliver overskuddet større i takt med at biomassen vokser mere og mere (evt. henvisning til Uwe)

Results from JRC study

Sustainable biomass in a climate perspective? Forest residues nearly carbon neutral Waste, waste wood, industrial residues even better Other types of wood from forest: not all forests are equal Long-term: strengthen climate convention to account for CO2 from all land uses in all sectors of all countries (also for iLUC)