First Commercial Pyrolysis Oil Plant in Finland – Technology, Value Network and Socio-Economic Effects Dr

First Commercial Pyrolysis Oil Plant in Finland – Technology, Value Network and Socio-Economic Effects Dr. Lauri Sikanen Group Manager, Bioeconomy Business Natural Resources Institute Finland (Luke)

The plant is located in the city of Joensuu, in North- Karelia, which wants to be free from heating oil in 2020. ”Oil-free North-Karelia Capaign”.

Joensuu City has 200km district heating pipelines under the city and the water in pipes is heated by one big CHP and 9 small heat only plants using heavy heating oil.

2 28.10.2016 © Natural Resources Institute Finland 3 28.10.2016 © Natural Resources Institute Finland is our most famous experienced producer of pulp and paper machinery

wants to be the most green energy company in the Major League of Europe

4 28.10.2016 © Natural Resources Institute Finland Long-term R&D co-operation with partners produces results – Pyrolysis as an example

2007 Technology 2010 Press release development 2013 - March 11, 2014 Fortum, UPM and 1980’s consortium formed Pyrolysis oil R&D projects on combustion tests Valmet are jointly (Valmet, UPM, VTT) pyrolysis oil developing First Finnish R&D laboratory studies on Tekes support starts upgrading technology to Start of concept produce advanced pyrolysis (VTT) on-going Cold model tests for planning for a biomass based fuels oil production start at commercial demo Valmet R&D Center in plant Tampere

2013 2009 Commissioning and June 30, 2015 commercial operation Joensuu plant 1990’s Fortum joins of Joensuu plant handed over to development Fortum First R&D projects 2012 including Finnish consortium Fortum and Valmet companies sign contract on Bio-oil pilot tests at Joensuu plant Valmet R&D Center starts

5 5 © Valmet | Jussi Mäntymiemi: 28.10.2016 © Natural Resources Institute Finland Integrated pyrolysis oil production technology

Valmet DCS High pressure steam Turbine Electricity

District heat Woody biomass Non-condensible gas

Drying Condenser Crusher

Fluidized bed boiler Pyrolysis unit Bio-oil

6 © Natural Resources Institute Finland Facts and Figures

• Annual production capacity 50 000 tonnes of oil • Annual wood use 250 000 solid m3 per year (100 000 dry tonnes) • Overall energy efficiency of the integrated system: 90% • Investment cost: 32M€, subsidised 8M€ by state.

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Up to 90% 10,000 less greenhouse houses could be heated

emissions 50,000 t per annum 160 320 tonnes of bio-oil exported to E.ON’s Karlshamn power t less sulphur plant in Sweden emissions

8 28.10.2016 © Natural Resources Institute Finland 9 28.10.2016 © Natural Resources Institute Finland 10 28.10.2016 © Natural Resources Institute Finland What is pyrolysis oil?

• Extremely complex chemical mix • Very acidy (pH 2-4) and contains a lot of water (15-30%, but not in the form of real water). • Can be used as a substitute of heavy heating oil after small adjustments in pipes, containers and feeding. • More valuable large scale use is coming, but we do not know when .

11 28.10.2016 © Natural Resources Institute Finland Bio-oil combustion is scalable to wide size range

• Fortum, Joensuu, Finland

– 10 MWth

• Savon Voima, Iisalmi, Finland

– 10 MWth

• Fortum, Vermo, Finland

– 50 MWth

• E.ON, Karlshamn, Sweden

– 174 MWth E.On Karlshamn, photo courtesy of E.On

• Cut-to-lenght –method, harvester- forwarder-timber truck • Small size timber from early thinnings (no harvesting residues or hog fuel) • Comminution just before process to avoid the escape of volatile compounds

• Employs 8 full-time supply chains (harvester- forwarder-truck) to feed the plant. • Employment effect: 55 direct man-years in supply and 7 at the plant + about 15 indirect jobs. • Circulates 8.5 M€ annually in local economy instead of paying it out in oil bills.

• High quality feedstock & existing procurement systems/expertise • Verified technology and high motivation • Effective integration => low investment cost • Possibility to maintain economic sustainability (despite that oil is not too cheap in Finland) and buy time for further development.

15 28.10.2016 © Natural Resources Institute Finland Concluding remarks • Integrated flash pyrolysis is probably the most effective way to liquefy wood to raw material of further refining. • and know what they are doing and we all hope that academia soon finds methods to increase the value created in the process. • Success requires careful adaptation into the operational environment.

Thank you for your attention!