1. TECHNOECOMICS OF BIOENERGY TRADE CHAINS - IEA BIOENERGY TASK 35

2. VTT TECHNICAL RESEARCH CENTRE OF FINLAND VTT Processes YS IEATEA 10.6.2002 /2 2 Task Objectives - Bioenergy Trade l To select the economically promising chains for a detailed study. l To carry out a comparison for selected alternatives with a rigorous method. l Overall costs and reducing CO 2 emissions as criteria. l To identify business opportunities and new concepts in bioenergy utilisations chains.

3. VTT TECHNICAL RESEARCH CENTRE OF FINLAND VTT Processes YS IEATEA 10.6.2002 /3 3 IEA Bioenergy Task 35 Participants 2002 l David Beckman, Zeton Inc., Canada l Kevin Craig (Ralph Overend), NREL, USA l André Faaij, Utrecht University, the Netherlands l Björn Kjellström, Luleå University of Technology, Sweden l Paterson McKeough, VTT Processes, Finland l Erich Podesser (Henrike Bayer), Joanneum Research, Austria l Yrjö Solantausta, VTT Processes, Finland l Martijn Wagener (Rob Remmels), Essent Energy, the Netherlands

4. VTT TECHNICAL RESEARCH CENTRE OF FINLAND VTT Processes YS IEATEA 10.6.2002 /4 4 Elements in Assessing Biofuel Trade Resource supply Local conversion Long distance logistics Final conversion and end use

5. VTT TECHNICAL RESEARCH CENTRE OF FINLAND VTT Processes YS IEATEA 10.6.2002 /5 5 Biomass Resources Considered l Woody biomass – Forest industry by-products – Forestry residues – Other wood fuels l Agricultural by-products – Straw – Bagasse – Other l Specifically grown biomass – Short rotation forestry – Grasses

6. VTT TECHNICAL RESEARCH CENTRE OF FINLAND VTT Processes YS IEATEA 10.6.2002 /6 6 Local Conversion l Drying (used in processes below) l Pellets l Bio-oil l Other liquid biofuels – Ethanol – Methanol – Fischer-Tropsch liquids

7. VTT TECHNICAL RESEARCH CENTRE OF FINLAND VTT Processes YS IEATEA 10.6.2002 /7 7 Transportation Logistics l Raw biomass, pre-treated biomass, converted biomass l Water, rail, road

8. VTT TECHNICAL RESEARCH CENTRE OF FINLAND VTT Processes YS IEATEA 10.6.2002 /8 8 Final Conversion and End-Use l Conversion to other energy forms – Fischer-Tropsch liquids – Ethanol, Methanol – Bio-oil l Power and heat – Stand-alone – Co-fire l Transportation

9. VTT TECHNICAL RESEARCH CENTRE OF FINLAND VTT Processes YS IEATEA 10.6.2002 /9 9 An Example of Data Collection, Resources Supply

10. VTT TECHNICAL RESEARCH CENTRE OF FINLAND VTT Processes YS IEATEA 10.6.2002 /10 10 An Example of a Biofuel Trade Chain l Primary fuel: forestry residues (FR) available in connection to wood industry in Northern Europe l Used industrially in Finland and Sweden (CHP and heat production) l Utilisation of FR is increasing, and a considerable potential exists l Conversion of FR in an integrated plant to heat and bio-oil l Transportation of bio-oil to remote users l Use in replacing coal (or mineral oils in the future)

12. VTT TECHNICAL RESEARCH CENTRE OF FINLAND VTT Processes YS IEATEA 10.6.2002 /12 12 Current Industrial Use of Forestry Residues

13. VTT TECHNICAL RESEARCH CENTRE OF FINLAND VTT Processes YS IEATEA 10.6.2002 /13 13 Cost of Wood Fuels for Large Users Industrial by-products Forest residues Thinnigs