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From Whence the Wood? Supply Chain Transparency and the Origin of Solid Biomass for Electricity Generation in the Netherlands

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From Whence the Wood? Supply Chain Transparency and the Origin of Solid Biomass for Electricity Generation in the Netherlands SO M O From Whence the Wood? Supply Chain Transparency and the Origin of Solid Biomass for Electricity Generation in the Netherlands SOMO June 2013 Colophon From Whence the Wood? Supply Chain Transparency and the Origin of Solid Biomass for Electricity Generation in the Netherlands June 2013 Author: Kristóf Rácz, Joseph Wilde-Ramsing, Jos van Seters, and Fleur Scheele Cover layout: Frans Schupp Cover photo: Deutsche Pelletinstitut GmbH (DEPI) ISBN: 978-94-6207-027-1 This publication is made possible with financial assistance from The Dutch Ministry of Foreign Affairs. The content of this publication is the sole responsibility of SOMO and can in no way be taken to reflect the views of The Dutch Ministry of Foreign Affairs. Acknowledgements The authors wish to express their thanks to representatives of Eneco, E.ON, GDF Suez, RWE/Essent, and Vattenfall/Nuon for providing information on their company’s biomass consumption and procurement, and for reviewing and providing feedback on draft sections of the report. Heartfelt thanks also goes to Martin Junginger and Chun Sheng Goh (Copernicus Institute, Utrecht University), Willem Wiskerke (Greenpeace), and Suzan van der Meij and Gisela ten Kate (MVO Platform) for providing input and information during the research as well as comments and feedback on a draft of the report. Published by Stichting Onderzoek Multinationale Ondernemingen Centre for Research on Multinational Corporations Sarphatistraat 30 1018 GL Amsterdam The Netherlands Phone: + 31 (20) 6391291 E-mail: [email protected] Website: www.somo.nl This document is licensed under the Creative Commons Attribution-NonCommercial- NoDerivateWorks 3.0 License. The Centre for Research on Multinational Corporations (SOMO) is an independent, not-for-profit research and network organisation working on social, ecological and economic issues related to sustainable development. Since 1973, the organisation investigates multinational corporations and the consequences of their activities for people and the environment around the world. From Whence the Wood? Table of contents List of tables and figures ............................................................................................... 3 Abbreviations.................................................................................................................. 4 Executive summary ........................................................................................................ 5 1. Introduction ..................................................................................................... 7 1.1 Context and point of departure ......................................................................... 7 1.2 Aims and objectives .......................................................................................... 11 1.3 Research questions .......................................................................................... 11 1.4 Target groups .................................................................................................... 12 1.5 Scope and research methods ........................................................................... 12 1.6 Structure of the report ....................................................................................... 13 2. The global solid biomass supply chain ........................................................ 14 2.1. Definition and types of solid biomass ............................................................... 14 2.2. Biomass consumption and production .............................................................. 15 2.3. North American wood pellet markets ................................................................ 17 2.4. Biomass from the Global South ........................................................................ 20 2.5. Case studies from the Global South ................................................................. 24 2.6. Biomass sustainability guidelines and certification schemes ........................... 27 2.7. Future developments in global biomass markets ............................................. 30 3. Biomass production and consumption in the Netherlands ....................... 35 3.1. Biomass in the Dutch fuel mix for electricity generation ................................... 35 3.2. Policies stimulating biomass use ...................................................................... 36 3.3. Domestic biomass production for electricity generation ................................... 38 3.4. Biomass imports ............................................................................................... 39 3.5. Origin of the future Dutch biomass supply ........................................................ 42 4. Biomass procurement and consumption by individual electricity companies in the Netherlands ....................................................................... 44 4.1. E.ON ................................................................................................................. 44 4.2. Eneco ................................................................................................................ 46 4.3. EPZ ................................................................................................................... 49 4.4. GDF Suez ......................................................................................................... 50 4.5. RWE/Essent ...................................................................................................... 53 4.6. Vattenfall/Nuon ................................................................................................. 58 5. Conclusions..................................................................................................... 62 5.1. Global biomass market and supply chain ......................................................... 62 5.2. Origin of biomass in the Netherlands ................................................................ 62 5.3. Degree of transparency provided by utilities in the Netherlands ...................... 63 5.4. Biomass supply chain responsibility policies .................................................... 66 6. Recommendations .......................................................................................... 67 7. Annex 1: Planned wood pellet production facilities in Canada and the US ..................................................................................................................... 69 2 List of tables and figures Tables Table 1: Top 10 pellet plants in Canada, 2011 ............................................................ 18 Table 2: Canadian wood pellet supply, in tonnes, 2011 & 2020 .................................. 19 Table 3: Top 10 pellet plants in the United States, 2011 ............................................. 19 Table 4: Biomass projects in the Global South with possible exports to Europe ......... 21 Table 5: Value indication of commodities used for electricity generation in the ............. Netherlands in 2011 ....................................................................................... 39 Table 6: Origin of biomass supply for utilities in the Netherlands, in tonnes, 2011 ..... 40 Table 7: Identified suppliers of biomass for utilities in the Netherlands, 2011 ............. 42 Table 8: Current and future biomass figures per utility in the Netherlands, 2011 ........ 43 Table 9: Current and planned E.ON plants in the Netherlands combusting biomass, 2011 ............................................................................................................... 45 Table 10: Eneco’s biomass power plants in the Netherlands, 2013 ............................ 47 Table 11: EPZ plant in the Netherlands combusting biomass, 2011………………….. 50 Table 12: GDF Suez’s Dutch biomass (co-firing) power plants (existing and under construction), 2011……………………………………………………………… 52 Table 13: Origin of biomass used at the GDF Suez Gelderland plant, 2011 ............... 52 Table 14: Solid biomass procurement by RWEST, 2011……………………………….. 54 Table 15: Biomass use by different RWE divisions in Europe, 2011………………….. 55 Table 16: RWE/Essent’s Dutch biomass (co-firing) power plants (existing and under construction), 2011………………………………………………………. 56 Table 17: Quantities, types, and origins of biomass used at RWE/Essent’s Amer plant, 2011……………………………………………………………………….. 57 Table 18: Vattenfall/Nuon plants in the Netherlands using biomass (current and future)……………………………………………………………………………...59 Table 19: Origin of biomass used at the Nuon Willem-Alexander plant in 2011………60 Table 20: Degree of transparency in biomass consumption and procurement by utility, 2011……………………………………………………………………….. 65 Table 21: Pellet plans under construction in Canada, 2011……………………………. 69 Table 22: Proposed pellet plants in Canada, 2011……………………………………….70 Table 23: Pellet plants under construction in the US, 2011…………………………….. 70 Table 24: Proposed pellet plants in the US, 2011……………………………………….. 71 Figures Figure 1: Wood pellet production and consumption by country, in tonnes, 2010……...16 Figure 2: Wood pellet trade flows in and to Europe, 2010……………………………….17 Figure 3: Wood pellet exports by company from Southern US, in tonnes, 2008-2011. 20 Figure 4: Land areas wholly or partially set up as plantations for biomass feedstock production in the Global South…………………………………………………. 31 Figure 5: Production and availability of wood pellets……………………………………. 32 Figure 6: IEA's "business as usual scenario" for future wood pellet exports to the EU………………………………………………………………………………….
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