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Energy Cluster As Development Tool for the Baltic Sea Region

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Energy Cluster As Development Tool for the Baltic Sea Region Karlshamn Energy Cluster as development tool for the Baltic Sea Region The EU has renewed its interest in the Baltic Sea region Sweden’s proposed Baltic Sea Strategy for the and in December of 2007 the European Council asked Commission’s final report due June 2009 covers 4 the Commission to present a Baltic Sea Strategy. priorities: The strategy, which is to be presented in June of 2009, will be one of Sweden’s main goals during its 1 Environmental challenges for the presidency of the European Council. Sweden believes Baltic Sea region that the strategy should be a market oriented guide for EU member states in the Baltic Sea region to 2 Economic growth and competitiveness stake out common priorities regarding investments in infrastructure. The goal is to expedite shared 3 Efficient use of resources implementations of EU resolutions and harmonise domestic regulations in order to create larger and 4 Prevention of organized crime better regional markets. The 17th Baltic Sea Parliamentary Conference (BSPC) possible. Biofuel will be developed further and will contribute to took place in Visby August 31st – September 2nd of sustainable solutions. But, as the Swedish government’s council 2008. The main theme for the conference was “Energy on globalisation has pointed out, traditional sources of electricity Efficiency and Climate Change”. Participating in the will continue to play a large role. conference, in addition to selected representatives from the Baltic Sea region countries, were also Efficiency representatives from the Council of the Baltic Sea States (CBSS) – the political forum for regional Buildings Transport Coal Plants intergovernmental cooperation. Topics covered at the Water Treatment Aircraft Engines Energy Services meeting were Baltic Sea region cooperation, climate Appliances Locomotives Water Treatment change and energy efficiency, energy supply and Lighting Equipment Svcs. Energy Finance Energy Finance Aviation Finance security, eutrophication, maritime policy and the Baltic Sea Action Plan, and labour market and social affairs relevant to the region. Low carbon power Renewables Natural Gas Base Load Regarding climate change and energy related issues the national governments, CBSS and the EU were encouraged to coordinate Wind Turbines Large-frame Turbines IGCC Cleaner Coal and work together in developing strategies for coming Solar Power LM Turbines ESBWR Nuclear discussions leading up to the UN Climate Change Conference Biogas Engines Energy Finance Energy Finance in Copenhagen in the fall of 2009 in order to gain support from the Baltic Sea region for the ambitious CO2 emissions reductions. Other recommendations brought forth in the Low carbon fuels resolution are increased cooperation to reduce vulnerability and improve adaptability as consequences of climate change impact, CO2Capture Biomass Fuel Cell H2 strengthen the capacity to support energy cooperation, support the construction and make greater use of land based and offshore BP H2 Joint Venture Energy Finance wind power plants, support transportation projects for energy Synfuels Technology Water Treatment and energy providers while minimising environmental risks for the Baltic Sea, and advance effective measures for developing renewable energy, energy efficiency and energy savings. Forest and agriculture Sweden believes that enhanced cooperation among the Baltic Sea nations and the EU can increase the energy consumption The Baltic Sea region Interreg programme points to one strength efficiency. Priorities and resources need to be matched more in particular in that the region has a high capacity for knowledge efficiently and a macro-regional approach is required in the and development of renewable energy. However, the general Baltic Sea region to research this problem. knowledge regarding environmental issues has an east-west dimension. In order to improve the situation a holistic approach The strategy for the Baltic Sea region agrees with the EU across various sectors is required. strategy in regards to three prioritised areas of interest: The strategy of VASAB (Vision and Strategies around the Baltic 1. Reduction of greenhouse gas emissions Sea) for 2010 highlights several environmental goals that build on a transportation system that simplifies environmentally 2. Increased supply of renewable energy sources friendly mobility and integrates the region in an effective 3. More efficient energy consumption manner both internally and with the rest of the world. In addition there is a focus on energy production that relies more This increased cooperation requires incentives and funding, and on renewable energy and environmentally friendly sources of in 2007 the Nordic Investment Bank (NIB) decided to increase energy production. its contribution towards making the Baltic Sea region more During the spring a draft for a regional energy strategy was competitive. presented to facilitate energy conversion. The government has The debate at the BAFF (Bioalcohol Fuel Foundation) seminar been tasked by the county administrative boards (Länsstyrelsen) in Gothenburg showed the necessity to differentiate between in Stockholm, Norrbotten, Skåne and Kalmar to in cooperation good and bad biofuels. The EU is now developing sustainability with the Swedish Energy Agency arrive at a regional energy criteria to make this distinction. These criteria will define strategy. The investigation concludes that it is important to how much a biofuel must reduce carbon dioxide emissions secure efficient modes of transport for energy supplies and to compared to traditional fuels in order to be called a biofuel. This plan especially for suitable storage to accommodate the more will probably mean that a biofuel must reduce carbon dioxide voluminous biofuels. emissions by at least 50% over its lifecycle. For transportation of biofuels from other continents, or even just The pursuit of alternative or renewable fuels will bring many across the Baltic Sea, maritime shipping is especially suitable. questions to the forefront. The political task is to set a price However, efficient biofuel cogeneration plants (CHP) require on emissions in a neutral fashion in order to benefit the most that the fuel is used and stored in connection to the facilities in environmentally sound methods. closed systems. This is due to among other factors fire safety For Sweden this means to remain open to as many solutions as reasons. But the possibility to temporarily store biofuels near ports and harbours can be attractive for large ocean faring vessels that can access the Baltic Sea in order to transfer Karlshamn can the goods to smaller ships or rail for further transport. In Sweden’s case hydroelectric and nuclear power cover - Comprise a defined cluster in the Baltic Sea region most of the energy needs. Natural gas from Denmark where possibilities for developing new alternative and Germany make up only 2% of total energy use and energy solutions for the Baltic Sea region should be there are ambitious plans to further the use of renewable pursued. energy and decrease the dependency on fossil fuels. 25% of Sweden’s total energy use is supplied by renewable - Become a toolbox for enhancing the efficiency of biofuels. However, it should be kept in mind that almost traditional energy solutions and complement them 40% of our imported oil currently comes from Russia. with a focus on renewable energy. - Comprise an essential hub for the region in Karlshamn’s opportunity handling biomass and other fuels. to contribute significantly Ethanol and biogas production to the Baltic Sea region’s There is a consortium of Swedish and Norwegian interested parties planning to build a facility for large future energy supply. scale ethanol and biogas production in direct connection to the port area and Karlshamn Kraft AB’s (70% E.ON, Karlshamn has since long been identified as a 30% Fortum) existing power plant. The permit process is suitable location domestically for energy prod- underway and there is an option agreement regarding this uction. The biggest reasons for this are: establishment. • Access to relatively easily accessible land. The engineering phase which also covers the quay belonging to the • Access to a large deep water port. facility has been partially completed When completed the facility will produce 260 000 m3 of ethanol and • Access to the main Swedish power grid with 1 200 GWh of biogas per year according to the permit application. possibilities for expansion. Construction will take place in two stages. Grain and straw will be the raw materials. These will primarily be Other factors that make Karlshamn unique from an shipped from the Baltic States, Poland, the Ukraine, Belarus and energy perspective are: Kazakhstan. Distribution to the facility will be via shipping from ports on the eastern shores of the Baltic Sea. • Large storage capacity for petroleum and The facility will produce second generation biogas from its chemical products. inception. Second generation bioethanol products will be developed • Large reserve and backup power plant. in parallel. Finished ethanol will mainly be brought to market via maritime • Large industrial production of vegetable oils. distribution to be mixed with gasoline and to a certain extent to • Large operation handling biomass connected produce E85. to the forestry industry. Biogas can be distributed in a number of ways: trucks, on rail, on ships and by pipeline. In the project the possibility to connect the • Submarine power cable to Poland. facility to the existing gas distribution
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