Green Industry and Bioenergy in Regional Development

Jouko Parviainen Regional Development Company, JOSEK Ltd Development Center, PIKES Ltd

. One of the 18 provinces in . Area 21,585 km2 . 166,000 inhabitants . Density 7.7 persons/km2 . The easternmost region in the continental EU . 300 km common border with Russia . Three sub-regions . Pielinen Karelia . Joensuu . Central Karelia Green industry ~ Forest bioeconomy From forests to more value added products and energy

Corner stones of the green industry in NK #1

.Forests are the backbone of the economy .Harvesting .Logistics .Wood processing .Bioeconomy .Forest energy .Manufacturing .Know-how . Sustainable use of our forest resources bases on reliable statistics . Forest annual growth over 8 Mm³ . Annual felling 4.2–5.4 Mm³

Corner stones of the green industry in NK #2

.Regional climate and energy policy & targets .Forest owners’ positive attitude to energy wood harvesting .Utilization of industrial by- products (black liquor, saw dust)

Corner stones of the green industry in NK #3 .Joensuu is acknowledged as the forestry capital of Europe and the bioeconomy capital of Finland .Leading expertise and technology since 1980´s .Strong networking: Wood Energy Net, Wenet, since 2004 .Centre for Green Growth in 2014 Wenet key members & partners

 Finnish Forest Research Institute (Metla)  University of Eastern Finland (UEF)  Lappeenranta University of Technology (LUT)  European Forest Institute (EFI)  North Karelia, Savonia and Mikkeli Universities of Applied Sciences  University Consortium  Joensuu Science Park Ltd  The Finnish Forest Centre  VTT Technical Research Centre of Finland  Regional development companies in Eastern Finland  Companies within wood energy harvesting, transportation and handling  Power plant and boiler manufactures Manufacturing More than two thirds of the forest harvesting machines sold in Europe come from East Finland John Deere & Waratah-OM, Ponsse, Kesla, Pentin Paja

www.wenet.fi www.josek.fi Small scale use of forest energy

World leading manufactures of heat-retaining ovens

Tulikivi, Kerman Savi, NunnaUuni, Vuoleri

www.wenet.fi www.josek.fi Wenet’s services

Transfer of know how and technology Tailored and holistic solutions Fuel supply chains Heat and power generation District energy systems Business models Contract design Professional visits, technical tours and show- hows in Finland Case EEO: From heating oil to wood chips

 Initiative to replace heating oil by wood chips was presented in 1996  Eno Energy Coop (EEO) was established 15.9.1999  Members 12 (today the number is over 50)  Operation started in 2000 with fuel supply for the Eno Upper village heating plant (0,8 MW boiler) owned by the municipality  Next two heating plants with DH network systems were invested by the EEO  Uimaharju, 2002, 1 MW and 2006, 1 MW  Eno Lower village, 2004, 0,8 and 1,2 MW  Today: 8 biomass boilers by total capacity 9,66 MW

Case EEO

The EEO takes care of three heating plants using wood chips in the Eno region Total volume of the heated buildings: 266 000 m3 Need for heat production is over 16 000 MWh Corresponds with 800 single-family houses Length of pipelines totally almost 9 km Case EEO

Need for wood chips: 27 000 l-m3 25 % comes from the cooperative members Rest from other local forest owners 80–90 % from thinnings of young forests 10–20 % is residues from final fellings Moisture content 35 % (average)  In Eno: 10 000 l-m3 = 8 900 MWh = 32 000 GJ (35 %) Case EEO

Benefits 2 million litres of heating oil is annually replaced by local wood fuel Oil use as back-up is less than 10.000 l/a Pellets are used as back-up in Uimaharju

CO2 emissions have decreased by more than 5,000 tonnes per year  7−10 jobs have been created by the EEO >2 M€ is annually used to support the local economy Small diameter energy wood harvesting Young forest thinnings Integrated energy wood harvesting Residues from final fellings Storaging at a road side Piling a couple of weeks after harvesting Natural drying over a summer or two (6 to 18 months) Mobile chipping at the road side Transport and unloading at the plants Distances usually within 35 km Eno Lower Village Heating Plant

DH pipeline

Mobile chipper in Finland Mobile Kesla chipper at the terminal in Canada Heating Plant in Eno

Heating plant of Amqui hospital From forests to more refined solid biofuels • Pellets, in the future: torrefied/black pellets, bio-coal • Bio-coal production in Nurmes in 2015/16? More value by refining biomass to bio-oils • Pyrolysis oil production in Joensuu • in 2015/16? Fortum* has invested about € 30 million in the commercialization of new technology by building a pyrolysis oil plant integrated to the combined heat and power plant (CHP) in Joensuu • Production started in November 2013

*Fortum is an internationally operating energy company owned by the state of Finland

Pyrolysis technology is provided by Metso

Bio -oil capacity 30 MW Annual production 50,000 t, 210 GWh Need for forest biomass 225,000 s-m3/year 60-70 new jobs Other green industry initiatives

• Pielinen Karelia green industry development programme 2014-2020 • Energy and material efficiency – industrial symbiosis • Recycling and reuse of byproducts • Decentralised energy production • New technology innovations and business models • Biogas production by farms (energy cooperatives) and filling stations for vehicles in Lieksa, Nurmes and 2014-2015 Thank you for your attention!

Jouko Parviainen [email protected] [email protected] www.wenet.fi