Advanced biofuels and Kaidi project in Kemi Matti Kymenvaara Kaidi Finland 9 May 2019 1 The EU wants to reduce 1st generation biofuels (food chain) consumption and increase production from advanced feedstocks • In the revised Renewable Energy Directive (RED II), the EU wide overall renewable energy target is 32% by the end of 2030 • The share of renewables in the transport sector is 14% by 2030, from which a significant increase is to come from ‘advanced feedstock’ –based fuels. • By definition, advanced feedstocks are ligno-cellulosic and waste-based feedstocks, such as straw, sewage sludge and forest residues • Advanced feedstocks need to comply with the sustainability criteria: Countries with advanced forest and land management practices and regulations, such as the Nordics, are considered to be sustainable feedstock producers 5/22/19 2 Production of advanced biofuels is expected to increase strongly • RED II 2021-2030 states that the share of ‘Advanced Biofuels’ shall be, in EU, at least equal to – 0.2% in 2022, – 1% in 2025 and, – increasinG up to at least 3.5% by 2030 • AccordinG to Finnish EnerGy and Climate strateGy, the share of biofuels in transport will be 30% by 2030 • Swedish Government has accepted a goal to decrease the emissions of domestic transport by 70% by 2030 compared to 2010. • NorweGian Government has announced a blending mandate for 0,5% biojet from 2020. Government pursues 30% share of jetfuel to be climate friendly by 2030 Source: USDA GAIN report 3 July 2018 5/22/19 3 The IEA recommends a strong shift towards advanced biofuels global advanced biofuel project development by country • Globally, according to IEA, the use of biofuels needs to triple, in order to achieve the 2030 SDS* target • The SDS requires a significant technology shift towards advanced biofuels. • Most of the biofuel use is in road transport, IEA estimates only 11% being aviation and marine combined demand by 2030 *) Sustainable Development Scenario Source: IEA 5/22/19 4 Kaidi Kemi project is located in EU’s northernmost port Kolari Tornio Kemi Kemijärvi Rovaniemi Luleå Kemi Piteå Oulu Skellefteå Umeå Kontiomäki Ylivieska 5 Lot of existing and planned chemical and mechanical forest industry; competition of feedstock but also potential synergies Kemijärvi Rovaniemi Luleå Kemi Piteå Oulu Skellefteå Paltamo Umeå Husum Kuopio 5/22/19 6 Kiitos. Tack. Takk. Matti Kymenvaara Sourcing and sustainability manager [email protected] 5/22/19 7.