Bioenergy and rural development - examples from Sweden EUROPEAN COUNTRYSIDE MOVEMENT SEMINAR Bioenergies and rural areas : what about multifunctionality ? Brussels – 7 December 2007 Ingrid Rydberg Federation of Swedish Farmers

LRF - Federation of Swedish Farmers For those who own and manage agricultural land and forestry individual farmers and forestry owners 33 co-operatives and farmer owned companies Influencing policies Creating attraction for the ”green sector” Business development Creating forums, networks and contact points

Co-operation with politicians and authorities Consumer and producer perspective Proactive instead of reactive Dialogue with society LRFs approach – cooperation and dialogue

LRF:s offer to the Swedish government Energy from the green sector can create new jobs and reduce green house gas effects. Investments in food production can create new jobs and a vivid and biodiverse countryside and landscape

Sweden: % renewable energy Final energy use (403 TWh), based on energy carriers (2006) Source: Swedish Energy Agency

Bioenergy has replaced oil and coal in the heating sector Energy input to district heating, Source: Swedish Energy Agency

4% biofuels in Swedish transport Ethanol E 5 low blended Ethanol E 95 for diesel buses Ethanol E85 for flex cars Biodiesel B2-B5 low blended Biodiesel B 100 Biogas ~4% Source: SPI (Swedish Petrol Institute & Swedish Energy Agency)

Ethanol from grain Agroetanol in Norrköping Production:- Ethanol m3 2007, m for low blend (E5) and flexfuel cars (E85) - Protein feed (DDGS) Rawmaterials:Grain from set a side and energy crop premium land Wheat, barley and tricitale Ownerskip.: Lantmännen (Farmers Coop)

The Lantmännen Agroetanol process: CHP integration and full use of by-products  Energy balance 1:5  Climate gas reduction 80%

District heating from bioenergy – three levels  Östanå Production: 1 GWh heat (50 homes) Ownership: 2 farmers Fuel: Grain or wood pellets Heats: One school, community meeting point, a few house blocks and private houses. Has replaced several oil boilers  Ena Energi Production: Heat: 200 GWh Power: 100 GWh 1/3 Electricity 2/3 heating Ownership: Enköping municipality Fuel: woodchips, wood powder and salix chip (20%) Heats: A whole city. Added benefit: Cleans sewage water  Molkom Production: 10 GWh heat (500 homes) Ownership: 7 farmers Fuel: Wood chips and reed canary grass Heats: A few schools and old people’s home, a business center, private houses

Salix- short rotation coppies (SRC)  Production of electricity and heat  Sewage sludge, sludge water and wood ash is circulated in the cropping system -1 hectare in 45 minutes -4 months after planting planting -Harvest after 3-4 yrs ( MWh/hectare) ( MWh/hectare) - 2 hrs/ hectare - Salixchips delivered to heat/power plants Energy input only 5% of total energy content (Cereals for ethanol 10%)

Biogas for transport- cities city and countryside together  Växtkraft in Västerås Production :- 25 GWh biogas (2500 m3 diesel equivalent) - Biofertilizer for organic farming (certified by KRAV) - Drives 60 buses (aiming for 80 = 100%) Raw material: Grass 1/3 and household waste 2/3 Ownership: 17 farmers 20 %, Federation of Swedish Farmers 20%, Municipality owned companies 60% Projekt: Finansed by the EU + national aid.

Policy measures needed to increase bioenergy production and rural development The Cohesion policy and the Structural funds should be used to develop the European energy systems Increase common EU support on R&D - not at least to find holistic solutions, i.e. link energy production to distribution and final use Remove EU obstacles that hinder national bioenergy support measures Develop EU strategy on national economic measures to support bioenergy ’Balanced approach’ necessary on EU biofuel trade policy Develop global criteria/certification on sustainable biofuel production Improve the overall business environment for small and medium sized enterprises

Sweden is so far very dependent on imports Country of origin for biofuels used in the transport sector, 2006 Source: Statistics Sweden, F.O. Licht TWh

Swedish tariff removal – a threat to all biofuels  Now E 85- import to industrial tariff (6,5%)  Proposal to extend this to ALL imported ethanol Can knock out domestic producers, end import from EU and counties with preferential tariff agreements, make Sweden a future transit country for low tariff import and discourage investments in new technology

Thank you for your attention!