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Biomass Supply Chain Mobilization in the North Sea Region Biomass Supply Chain Mobilization in the North Sea Region

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Biomass Supply Chain Mobilization in the North Sea Region Biomass Supply Chain Mobilization in the North Sea Region Biomass Supply Chain Mobilization in the North Sea Region Biomass Supply Chain Mobilization in the North Sea Region Intermediary report prepared in the Enercoast North Sea Region project Enercoast as a joint effort between Knud Tybirk (editor, from AgroBusiness Park, Central Denmark Region) with contributions from Peter Eriksson, Boel Carlsson, & Lillemor Lindberg (Innovatum, Sweden), Hilmar Gerdes (LWK Niedersachen), Gerard McGovern & Radka Ptacnikova (Univ. Oldenburg), Ian Fisher (Northumberland College), Geir Skadberg & Inge Håvard Aarskog (Ryfylke IKS). The total volume of the Interreg IV B North Sea Programme 2007-2013 amounts to 297 million euros, 139 million of which is made available by the European Fund for Regional Development EFRE. North Sea Region projects receive 50% cofinancing and focus on innovation, sustainable management of the environment, improved access in the North Sea and competitive communities. BIOMASS SUPPLY CHAIN MOBILIZATION IN NSR Published with support from Interreg North Sea programme and Central Denmark Region as a part of EnerCOAST Project, December 2010. To be cited as: Tybirk, K., Eriksson, P.E., Carlsson, B., Lindberg, L., Gerdes, H. McGovern, G., Ptacnikova, R. Fisher, I., Skadberg, G., & Aarskog, I.H. 2010. Biomass Supply Chain Mobilization in North Sea Region. Agro Business Park, Foulum, Denmark. 2 Biomass Supply Chain Mobilization in the North Sea Region Contents Foreword............................................................................................... 4 Background........................................................................................... 5 Sustainable bioenergy supply chain management................................ 6 Supply chain mobilization in Fyrbodal (Sweden).............................. 8 Background for the concept of Biogas Brålanda..................................... 8 Sustainable supply chain analysis of Biogas Brålanda........................... 10 Large scale biomass from forest utilisation............................................... 16 Supply chain mobilization in Central Denmark Region.................... 20 Background........................................................................................................... 20 Slurry based cooperative biogas for district heating............................. 21 Solid biomasses for district heating............................................................. 26 Supply chain mobilization in Lower Saxony (Germany).................... 29 Background........................................................................................................... 29 Maize to biogas.................................................................................................... 30 Dike Biomass to biogas..................................................................................... 30 Coastal algae for energy................................................................................... 33 Supply chains in Northumberland (England).................................... 37 Supply Chain analysis........................................................................................ 38 Discussion of supply chain gaps and options........................................... 42 Supply chain mobilization in Ryfylke (Norway)................................. 43 Background........................................................................................................... 43 Finnøy Bioenergy Supply Chain..................................................................... 44 Bioenergy for new settlements – Taumarka as......................................... 49 New supply chain – Årdal Bio ......................................................................... 50 Business optimization strategies for the selected supply chains....... 51 Transnational evaluation of regional supply chain options............. 52 References............................................................................................. 53 Biomass Supply Chain Mobilization in the North Sea Region 3 Foreword A key characteristic of renewable energy is that - in contrast to the conventional power plants and their associated continental grids - renewables are typically a decentralised energy form. Hence targets cannot be implemented by the decision makers in Europe’s capitals; the onus is on the regions and regional development initiatives. Transnational cooperation can play a major and cost-effective role in capitalising on the North Sea Region (NSR)’s diversified but largely unaligned renewables expertise, especially in respect of the under-potential deployment of bioenergy resources. This is the assignment adopted by the Enercoast project. Pre-project consultations conducted in the partner regions took stock of bionenergy potential and the obstacles to sustainable business development needed to deliver the ambitious energy policy targets. Despite divergent business development environments and outstanding technological challenges a common problem was identified: many ambitious, stand-alone entrepreneurial initiatives in the field of bioenergy fail to penetrate the regional energy market due to a lack of business resources, market access and dependable supply chain economics. This generic factor of renewables promotion is a decisive one: skilful management of supply chains, especially when these constitute an innovative challenge to established monopoly structures, is a prerequisite for the success of such ventures. Hence the response to the European renewables agenda shifts from the political arena to the field of business manage- ment. New energy sources can however profit from established business models. The Enercoast strategy is one of applying proven supply chain management methodology and tools to the underdeveloped bioenergy market in a NSR regional context. The project’s focus is clearly set on a defined range of regional bioenergy market initiatives and their transformation into sustainable value chains. Supply Chain Management (SCM) features an integrative approach to dealing with the plan- ning and control of the material flows from suppliers to end–users and focuses on a network of firms interacting to deliver a product or service to the end customer, linking flows from raw material supply to final delivery. The intention of the report is to describe the status of the selected regional supply chains at the start of the project and try to answer the questions – What key indicators for supply chain performance have been selected? – Who are the key stakeholders identified in the supply chain analyses? – What gaps in the existing or projected supply chains have been identified? – What are the targets set for the regional supply chain projects, i.e. what is the planned focus of the project intervention? The present report is the completion of project phase 3 Supply chain mobilization, which takes off from the performance analysis of the investigated supply chains, their deficits and a structured evaluation of potential options. The performance assessment in turn will feed into the remaining project phases and the promotion of locally defined business optimization strategies in each region. 4 Biomass Supply Chain Mobilization in the North Sea Region Background The EU’s policy on renewable energy is summarized by the 20/20/20 target (20% renewable energy, 20% greenhouse gas reduction and 20% reduction in energy consumption by year 2020) and documented in the Renewable Energy Directive (RED 2009/28/EC) that will have to be transposed into national law by December 2010. The Directive makes it compulsory for Member States to adopt their own National Renewable Energy Action Plans (NREAPs) by June 2010. The RED directive specifically applies sustainability criteria to biofuels. NREAPs include specification of detailed targets for the RE share of the energy consumption in 2020, as well as trajectories and described measures with estimated effects. The progress achieved in the implementation of the NREAPs is to be evaluated in reports to the Commission each second year. In 2007 the EU as a whole had a 7.8% share of renewables in its primary energy consump- 1 tion according EEA , ranging from 0% in Malta to 30.9% in Sweden, meaning, that reaching 20% renewables by 2020 is an ambitious target, which will require substantial effort, if it is to be met. Notably, slightly more than 2/3 of the renewable energy comes from biomass-based renewables and this share is predicted for 2020. This figure contrasts sharply with the large focus on wind, solar, geothermic, wave and other types of renewable in policies and media. The present state of RE and the relative target for 2020 in the individual Member States is rather different: The Danish Government has set the political objective of reaching 30% renewable energy by 2020 and furthermore launched a Green Growth Plan, which sets out the goal of utilising more perennial energy crops and at least 50% of all livestock manures treated for energy purposes. The bioenergy sector in the EU needs to undergo major development in order to reach the policy goals and fulfil the legal requirements in force. Heavy investments in biomass produc- tion and energy conversion are needed and associated businesses in regional authorities, institutions and companies dealing with planning, research, logistics, advice and other will have to gear up to assist the development. The EU’s Biomass Action Plan is one of the important strategy papers that define the challeng- es and opportunities for the use of biomass
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