1. Sustainable Bioenergy Swedish Experiences and ambitions Sven-Olov Ericson Ministry of Enterprise, Energy and Communication Tallin 2008-01-08

2. Sustainable Bioenergy most bioenergy globally is not sustainable! sustainability criteria top political agenda economical –affordability and compatibility food and forest industry ecological social

3. economical sustainability affordability compatibility food supply materialise possible synergies! avoid detrimental competition food, fodder and industrial raw material

4. ecological sustainability full life cycle perspective – long time perspective net GHG emissions, including land use net energy production biodiversity water management leaching waste recovery – ash recycling

5. social sustainability rural development private property worker safety etc

6. Explore the issue of simple and cost- effective measures to guarantee that biofuels are produced in a sustainable way, inter alia certification, in respect of environmental, social and technical standards, and applying to internal production as well as imported biofuels; in doing so, no technical trade barriers should be created,

7. A balanced approach regarding domestic production and imports of biomass should be found, taking account of aspects such as competitiveness, security of supply and rural development;

8. − a 10 % binding minimum target to be achieved by all Member States for the share of biofuels in overall EU transport petrol and diesel consumption by 2020, to be introduced in a cost-efficient way. The binding character of this target is appropriate subject to production being sustainable, second-generation biofuels becoming commercially available and the Fuel Quality Directive being amended accordingly to allow for adequate levels of blending.

9. Bioenergy in Sweden – An introduction –

10. Energy supply in Sweden, 1970-2005, excluding net electricity export

11. Share of renewable energy in TPES N.B. Share of Renewable Energy varies year to year; depending on rainfall, cold winter etc. 110 TWh

12. Bioenergy development in Sweden 1970-2005 The bioenergy share of the total energy use 1970: 9% 1980: 11% 1990: 15% 2000: 20% 2005: 26%

13. Bioenergy in Sweden Forestry related 90% Waste 8% Agriculture 2%

14. Policy measures on renewable energy

15. Swedish policy in support of renewable resources Create conditions for an efficient and sustainable energy use and cost-efficient energy supply Build up efficient markets for all parts of renewable energy systems Measures should as much as possible be limited in time and technologically neutral.

16. Main policies and measures for renewable energy Energy taxation, especially the carbon dioxide tax on fossil fuels Renewable Electricity Certificates Emissions Trading System Tax reductions for homeowners for conversion from oil or electric heating to bioenergy, heat pumps or district heating KLIMP – Local Climate Investment Programmes

18. The Swedish pellets market (tonnes/year) Source: Swedish Association of Pellets Producers

19. Spring European Council in March 2007 By 2020 the share of renewable energies in overall EU energy consumption shall be 20 %. The EU also set a binding target that biofuels are to comprise 10 per cent of transport fuel supply by 2020 under certain conditions. By 2020, 20% of the EU's energy consumption compared to projections shall be saved

20. Key issues Free trade in biomass Transport sector –Long-term solutions are needed –Second generation efficient biofuels Dependency on fossil fuels –Carbon capture storage

21. Agriculture and Forestry in Sweden

22. Potential of land-based sectors Agriculture and forestry are sectors of increasing importance and new responsibilities The production of biomass must increase, but without any negative effects on economical, social and environmental values. Funds to research and development together with further implementation of innovations

23. Annual growth and felling in Sweden Source: National Forest Survey, Swedish Forest Agency Million m³sk (forest cubic metres) Growth Felling

24. Timber stocks per inhabitant Finland Sweden Germany France Great Britain Source: FAO 374 327 50 35 6 m ³/inhabitant

25. Ownership structure of forest land Private (individuals) 51% Companies 24% The State 18 % Other private 6% Other public 1% Source: Swedish Forest Agency

26. soil management Swedish soil sensitive to loss of mineral nutrients ash recycling developed erosion – not relevant in Sweden soil carbon secondary nitrous oxide formation

29. Agricultural prices have recently increased to reach record levels in August 2007: wheat at +80% vs. August 2006 … Development of wheat prices in the EU and on world markets (EUR/t).

30. … and dairy products at +50% for butter, 80% for skimmed milk powder and 20% for cheese Development of butter, SMP and cheese prices (EUR/t)

31. Biofuel in Sweden

32. Stakeholder collaboration POLICYMAKERS INDUSTRY RESEARCH CONSUMER S

33. Final energy use in the transport sector, 1970–2005

34. Petrol 55,5% Diesel 42,2% Biogas FAME pure E85 FAME blend Ethanol Bus Biofuels E05 1,8% Share of transport fuels …

35. Biofuels per type…

37. Linköping Biogas Plant

38. Current situation bioethanol/E85 Almost all petrol that can be mixed with up to 5 % by volume of Ethanol is already E05. The interest in FFV/E85 is great, but further introduction goes slower because of need to invest in new cars. Stockholm city bus company has the worlds largest ethanol bus fleet.

39. Number of Alternative Fuel Cars

40. Pumps for E85

41. Sweden’s ethanol factory in Norrköping (Agroetanol)

42. Policy measures on biofuels

43. Policies and Measures for biofuels Tax Strategy for Alternative Fuels Reduction of benefit attributed to eco- friendly cars for tax purposes Environmental policy for government vehicles Obligation for filling stations to provide biofuel Bonus for buying an eco-friendly car Research, Development and Demonstration

44. Share of Biofuels since 1998 … (2006 3,1%) Year EU reference value Swedish target

45. Future fuels – what is important? Sustainable possibilities for fuel delivery Energy efficiency in a well-to-wheel perspective Net GHG effects Controlled regulated and un-regulated emissions Economy and infrastructure Other: energy content, security, specific needs for specific power train, customers, politics, security of supply, employment in agriculture, competition for raw materials, i.e. forest industry, food, …

46. For the future – 2nd generation biofuels Fischer-Tropsch Biofuels DME – DiMethylEther Methanol Ethanol from Cellulosic Raw Materials Biogas and Renewable SNG …

47. Volvo Trucks Study, distance per hectare

48. Gasification is a key technology

49. Gasification of black liquor CHEMREC (DP-1) pilot plant in Piteå inaugurated 2005 Gasification of black liquor to synthesis gas for subsequent production of biofuels like DME, or for heat and power

50. Gasification of biomass Clean Hydrogen-Rich Synthesis Gas –The primary aim of the EU CHRISGAS Project is to demonstrate, within a five-year period, the production of a clean hydrogen-rich synthesis gas from biomass –The hub of the project is the Värnamo Biomass Gasification Centre in Sweden and the use of the existing and unique biomass-fuelled pressurised IGCC (integrated gasification combined-cycle) CHP (combined heat and power) plant in Värnamo

51. Ethanol from cellulose Ethanol R&D Programme 1993 – 1997 5 M€ Ethanol from Wood R&D 1998 – 2004 22 M€ Ethanol Pilot Research Plant in Örnsköldsvik Inaugurated Wednesday 26th May 2004

52. Possible development of 2nd generation biofuels in Sweden (Study by Erik Rensfelt, for Swedish Energy Agency)

53. Potentials; 2004 report on introduction of biofuels

54. Thank you! sven- olov.ericson@enterprise.ministry.se