OECD report “Linking RE to Rural Development” Comment from North Karelia, Finland Pasi Pitkänen Regional Council of North Karelia Östersund, Mid Sweden, 19 th of February 2013

Virmajärvi, Ilomantsi North Karelia 1. General info about North Karelia

North Karelia facts  inhabitants (< 8 inhabitants / km²)  13 municipalities  Regional capital: City of Joensuu (74 000)  Distance to Petrozavodsk 368 km  Flight-time to Helsinki: 1 hour  Size of the region km² (lakes km²)  The easternmost region of the continental EU  300 km border with Russia  North to south 240 km  East to west 153 km  Temperatures from +37C to -42C

North Karelia is a forerunner in the use of renewables  Renewables cover 64 % of all energy consumption (including heat, power, private households and traffic) - compared to 28,5 % in Finland, and 8,5 % in the EU  The renewable energy cluster employs more than 1300 people  More than 300 companies working on this sector  Turnover about 200 M€ / year

ENERGY CONSUMPTION % SHARE OF RENEWABLE ENERGY  82 % SHARE OF RENEWABLE ENERGY

6 Ditched Peatlands Peat production areas Waste management Agriculture Energy Production and Use Trafic and Transportation Fresh debris and soil Forest Biomass Carbon Sources and Sinks in CO 2 Neutral North-Karelia t / a

2. Comments on OECD report -These kind of research (looking at the situation outside the regions) is really needed and useful -Report show that we can learn from each other regions and RE opportunities as well as challenges are both there together

Main findings / OECD Report / North Karelia  Drivers  RE can be efficient alternative to conventional fuels  Regional research should focus on “local” innovations & businesses  RE offers the most development opportunities in rural areas  I agree these findings! Future challenges / OECD Report / North Karelia  EU renewable energy policy & success of woody biomass  High subsidies going to wind power  More about these next

EU / Finnish policy favors wind energy … Feed in tariff for wind power is remarkable high in Finland  Investors and companies are looking for areas for wind parks, also in North Karelia  Regional councils are making regional land use plans for wind power parks, also in N-K Small wood energy subsidy is prohibited now and it is under EU consideration (from 2011) But … Potential wind parks in NK

North Karelia can do well with EU/National RE policy because, + However some kind of subsidy is coming for plants using woodchips, + in Finland there is money for new innovations & new bioenergy technology investments (Bio Economy) + New EU programme 2014 – 2020 & focus on low carbon economy (at least 20 %)  Perhaps EU challenges are not unthinkable in NK

3. Finally – what is going on and what we are aiming in North Karelia! Renewable Energy in Regional level / North Karelia  Political aspects  2 examples + Fossil Oil-Free Region target 2020 and North Karelia - The Centre of Forest Bio Economy  Economical and social aspects  2 examples + Self sufficiency - Wood based energy gives jobs and turnover for many + Social innovation - Free Energy advice for the citizens and companies

CLIMATE AND ENERGY PROGRAMME OF NORTH KARELIA 2020 Locally – Renewably – Efficiently VISION: FOSSIL OIL FREE REGION (In heating 2020, totally 2030)

Target: Fossil Oil Free Region in 2030 It means more woodchips, pellets, pyrolyse oil, solar energy, wind mills and other renewables etc. FORTUM PYROLYSIS OIL PLANT in Joensuu: production to be started in the last quarter of The year A model example of an investment (30 M€) needed on the way towards fossil oil free region! Production tn per year = 50 million litres per year

Other Biorefinery plans in North Karelia: Nurmes Biochar & Biocoal factory Nurmes -unit is going to be the first industrial scale unit in Finland, representing 3. generation in development (plans to be built during the year 2013) The first demo unit is scheduled to produce about 5000 tons’ biochar and ca ton’s wood oil’s The planning process of the larger unit has also started. The expected start of this ton’s biochar and ton’s oil factory is scheduled for later part of 2015 A huge demand increase for biochar is expected in Finland and in Europe. The quality and energy content of the FSO-biochar tested so far have turned out to be high, giving a competitive edge and bringing a large variety of potential customers

We count on knowledge based development in forestry and wood sector  European Forest Institute  Finnish Forest Research Institute  University of Eastern Finland  Karelia University of Applied Sciences  Carelian Science Park  etc…

… as well as on technology driven development … as well as on technology driven development

Joensuu ArenaMetla Building We aim at increasing the use of wood in construction

… as well as the use of wood for energy and bio based products

d Centre of Forest Bio Economy Biobased Products Wood-based Material Technology Forest Bioenergy Transfer of Technology and Knowledge Capitalization and Business New Business Opportunities Capitalization of Research Results Spin-off Enterprises EXPERTICE & KNOWLEDGE FOCUSTARGET Forest Energy & Wood Energy Districted biorefining and material technology Forest technology, supply chain and logistics Forest data invention & mapping, remote sensing Research and Development CENTRE OF FOREST BIO ECONOMY / NORTH KARELIA North Karelia Forest Bio Economy: 6000 workplaces, 600 forest experts (research, education, administration), about 1,7 billion turnover, over 500 companies

… as well as bioenergy new social innovations Free Regional BioEnergy Advice Service for Consumers via Internet and telephone Organised by the Finnish Forest Centre - North Karelia, Regional Council of North Karelia and Centre for Economic Development, Transport and the Environment

Conclusion: The role of forest is essential in aiming at smart, sustainable and inclusive growth (Europe 2020) in the NK and Europe! Forests have increasing and diversified value in meeting the objectives stated in the international commitments. Forests provide solutions for the challenges caused by climate change and increasing demand of energy. At the same, forests provide opportunities for new entrepreneurship and economic development. But we have also some other resources like wind and solar, which we can take account too, alongside the biomass

Pasi Pitkänen Regional Council of North Karelia Östersund, Mid Sweden, 19 th of February 2013 Kiitoksia! Tack så mycket? Thank you!