Examensarbeten nr 38 • 2002 Densified Biomass Fuels in Sweden
Transcription
Examensarbeten nr 38 • 2002 Densified Biomass Fuels in Sweden
Institutionen för skogshushållning Examensarbeten nr 38 • 2002 Densified Biomass Fuels in Sweden: Country report for the EU/INDEBIF project Pellets och briketter i Sverige: Landsrapport för EU/INDEBIF-projektet Jakob Hirsmark SKOGSVETARPROGRAMMET Swedish University of Agricultural Sciences Department of Forest Management and Products Sveriges lantbruksuniversitet Institutionen för skogshushållning Uppsala Examensarbeten nr 38, 2002 Densified Biomass Fuels in Sweden: Country report for the EU/INDEBIF project Pellets och briketter i Sverige: Landsrapport för EU/INDEBIF-projektet Final Thesis 20 p on level D in subject Bioenergy at the Department of Forest Management and Products Examensarbete 20 p på D-nivå i ämnet Bioenergi vid Institutionen för Skogshushållning Supervisor/Handledare: Dr Johan Vinterbäck Preface This thesis is the result of my work for the INDEBIF project within the EU. It is the end task of my studies for Master of Science in Forestry at the Department of Forest Management and Products at the Swedish University of Agricultural Sciences, and covers half a year of full time studies. I have had the pleasure to present it in Graz, Austria in September 2001 and in Uppsala, Sweden in March 2002 I would especially like to thank everyone at companies and institutions that have put time and effort in giving me relevant information both in the questionnaire survey and in personal communications. Most of all I would like to thank my supervisor, Dr Johan Vinterbäck, who has supported and adviced me in the completion of this work. I am grateful for the kind of insight in the Swedish densified biomass fuels business that this work has given me. The choice of carrying this study out was never regretted... Uppsala, March 2002 Jakob Hirsmark Summary Increased emissions of green house gases to the atmosphere during the last century as well as the issue of national fuel delivery security has led to increased interest for carbon dioxide neutral and renewable energy sources such as biofuels. In Sweden high taxes on fossil fuels such as coal, oil and gas, has led to significant advantages for the bioenergy sector. This study focuses on the Swedish densified biomass fuel (DBF) sector and the results will be used as a part of the INDEBIF project (ALTENER Contract 4.1030/Z/99-520) within the EU. The aim of the INDEBIF project is to stimulate increased usage of densified biofuels in Europe. This will be done by developing a database on the Internet where relevant information is available for each country. Companies and individuals who are considering an investment in their heating system should be able to find up to date information about producers, distributors and retailers and their prices on different assortments, as well as information about taxes, emissions etc. The goal of this study was to map the Swedish DBF industry and the whole situation as such in order to provide general information for the Swedish part of the project. The gathering of information has been based on a questionnaire survey to DBF producers, open sources and personal communications. The modern development of the Swedish biofuels sector in general, and densified biofuels sector in particular, has been successful and today Sweden is considered as one of the leading biofuel using nations. There are about 30 larger production plants for densified biofuels in Sweden and the national production of pellets in 2001 exceeded 700 000 tonnes. Three factors seem to have contributed to this position; a good availability of wood raw material, a taxing system that discriminates the use of fossil fuels, and well extended district heating systems. A number of life cycle assessments have been made for DBFs. For large-scale incineration facilities the use of DBFs leads to reduction of a variety of emissions, of which CO2 makes the most difference, compared to fossil fuels. Emissions of CO are, however, relatively larger for DBFs. The cost of producing pellets in a typical Swedish pellet plant is, according to the Full Costing Method of VDI 2067, about 61 €/tonne. Half of this cost corresponds to the raw material cost and about 20 % corresponds to the drying process. The raw material used today consists mainly of sawmilling byproducts from spruce and pine. Most producers look upon their raw material supply with satisfaction, but in some regions the competition with the board industry, use for animal bedding and direct firing with unrefined byproducts is very hard. The Swedish sawmilling industry gives a variety of byproducts suitable for DBF production. A full utilisation of only the sawdust and dry chips would correspond to some 1.5 million tonnes of pellets per year. A total utilisation of all bark, sawdust, dry chips, raw chips, slabs and edgings from the Swedish sawmilling industry would result in production of 6.9 million tonnes of pellets annually corresponding to 33 TWh.. There are good reasons to believe that the market for DBFs will increase in the long term. This helps reaching the international agreements of lowering CO2 emissions, decreases the national dependence on imported energy, creates domestic jobs in geographical areas where jobs are scarce, gives a higher value to the national forests and is in line with the recommendations of increasing the usage of biofuels by the EU and national authorities. 2 Sammanfattning De ökade utsläppen av växthusgaser till atmosfären under det senaste århundradet och viljan att minska beroendet av importerade bränslen, har lett till ett ökat intresse för koldioxidneutrala och förnyelsebara energikällor som t ex biobränsle. I Sverige har höga skatter på fossila bränslen, såsom kol, olja och gas, lett till betydande fördelar för bioenergisektorn. Den här studien fokuserar på kompakterade biobränslen (d v s pellets och briketter) i Sverige och resultaten kommer att användas som en del i projektet INDEBIF (ALTENER Contract 4.1030/Z/99-520) inom EU. Målet med INDEBIF-projektet är att stimulera en ökad användning av pellets och briketter i Europa. Detta ska uppnås genom att utveckla en databas på internet där information om pellets och briketter finns tillgänglig för olika europeiska länder. Företag och privatpersoner som överväger en investering i ett uppvärmningssystem ska kunna hitta aktuell information om producenter, distributörer och återförsäljare av såväl bränsle som förbränningsanläggningar, samt t ex information om skatter, miljöpåverkan och priser på olika sortiment. Målet med denna studie har varit att ta fram och sammanställa generell information om den svenska industrin för pellets och briketter för att använda i den svenska delen av INDEBIF-projektet. Insamlingen av information har baserats på en enkätundersökning till svenska producenter av pellets och briketter, litteratur och andra öppna källor samt personlig kommunikation. Utvecklingen för den svenska bioenergisektorn i allmänhet och sektorn för förädlade biobränslen i synnerhet, har varit framgångsrik och idag ses Sverige som ett av de ledande bioenergianvändande länderna. Det finns omkring 30 större produktionsenheter för pellets och briketter i Sverige och den inhemska produktionen av pellets under 2001 var mer än 700 000 ton. Framförallt tre faktorer verkar ha bidragit till dagens situation: en god tillgång på råmaterial för produktionen, ett skattesystem som diskriminerar användandet av fossila bränslen, samt väl utbyggda fjärrvärmenät. Det har utförts ett flertal livscykelanalyser på pellets- och brikettillverkning. För storskaliga förbränningsanläggningar innebär en övergång från fossila bränslen till pellets eller briketter, att en mängd utsläpp minskar, särskilt koldioxidutsläppen. Utsläppen av kolmonoxid ökar dock. Produktionskostnaden i en typisk svensk pelletsfabrik, enligt Fullkostnadsmetoden VDI 2067, är ca 61 €/ton och domineras av två typer av kostnader. Råmaterialet står för ca hälften av kostnaden, medan torkningsprocessen står för ca 20 %. Råvaran som används idag är framförallt spån och flis av gran och tall. De flesta producenterna upplever råvarutillgången som god, men i vissa regioner råder hård konkurrens om råvaran med spånskiveindustrin, strö till djurhållning och direkteldning i oförädlat tillstånd. Från den i Sverige så omfattande sågverksindustrin faller en mängd biprodukter som lämpar sig för tillverkning av pellets och briketter. Ett fullt utnyttjande av endast det sågspån och den torrflis som faller ut motsvarar 1,5 miljoner ton pellets per år. Ett totalt utnyttjande av all bark, sågspån, torrflis, råflis och bakar som faller ut från den svenska sågverksindustrin skulle ge en årsproduktion av 6,9 miljoner ton pellets vilket motsvarar 33 TWh. Det finns goda skäl att anta att marknaden för pellets och briketter även i framtiden kommer att utvecklas positivt. Användningen av pellets och briketter är ett steg mot att nå målet att sänka CO2-utsläppen, minska beroendet av importerad energi, ge arbetstillfällen i glesbygdsområden samt öka avsättningsmöjligheterna för skogsprodukter. 3 Table of contents 1 1.1 1.2 1.3 2 3 4 5 5.1 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5 5.1.6 5.2 5.3 5.3.1 5.3.2 5.3.3 5.3.4 5.3.5 5.3.6 5.3.7 5.3.8 5.4 5.4.1 5.4.2 5.5 5.5.1 5.5.2 5.5.3 6 6.1 6.2 6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.2.6 6.2.7 6.2.8 6.2.9 4 Preface ...........................................................................................................................1 Summary .......................................................................................................................2 Sammanfattning............................................................................................................3 Table of contents ...........................................................................................................4 List of diagrams, figures and tables ............................................................................6 Diagrams.........................................................................................................................6 Figures ............................................................................................................................6 Tables..............................................................................................................................7 Introduction ..................................................................................................................8 Questionnaire ..............................................................................................................10 Definitions, standards and characteristics of DBFs ................................................11 Technical evaluation of DBFs....................................................................................13 Raw materials ...............................................................................................................13 Wood ............................................................................................................................13 Bark ..............................................................................................................................14 Short rotation coppice...................................................................................................14 Peat ...............................................................................................................................14 Other raw materials ......................................................................................................15 Additives.......................................................................................................................16 Raw material potentials ................................................................................................17 Manufacturing process .................................................................................................19 Introduction ..................................................................................................................19 Drying...........................................................................................................................20 Comminution ................................................................................................................20 Conditioning .................................................................................................................20 Pelletisation/Briquetting ...............................................................................................21 Cooling .........................................................................................................................22 Storage ..........................................................................................................................23 Production of bark pellets.............................................................................................24 Fuel logistics.................................................................................................................24 Current distribution techniques ....................................................................................24 Residential storage........................................................................................................25 Incineration facilities ....................................................................................................26 Small-scale systems (0-100 kW) ..................................................................................26 Medium-scale systems (100-1000 kW)........................................................................28 Large-scale systems (>1000 kW) .................................................................................29 Economical aspects .....................................................................................................31 Raw material prices ......................................................................................................31 Production costs............................................................................................................32 Introduction ..................................................................................................................32 Raw material.................................................................................................................33 Drying...........................................................................................................................33 Comminution ................................................................................................................34 Pelletisation ..................................................................................................................34 Cooling .........................................................................................................................35 Storage ..........................................................................................................................35 Peripheral equipment ....................................................................................................36 Personnel costs .............................................................................................................36 6.2.10 6.2.11 6.3 6.3.1 6.3.2 6.3.3 7 7.1 7.2 7.2.1 7.2.2 7.3 8 8.1 8.2 8.3 9 10 11 11.1 11.2 11.3 Construction costs........................................................................................................36 Overall evaluation........................................................................................................37 Comparison of end-user prices for different fuels.......................................................38 Introduction .................................................................................................................38 Industrial market..........................................................................................................38 Residential market .......................................................................................................39 Overview of the state of DBF production and use..................................................40 Swedish producers of DBFs ........................................................................................40 Swedish producers of appliances.................................................................................42 Burning appliances ......................................................................................................42 Fuel production appliances ..........................................................................................43 Quantity of DBFs produced.........................................................................................44 DBF trade flows of today ..........................................................................................45 Trade patterns ..............................................................................................................45 Imports.........................................................................................................................46 Exports.........................................................................................................................47 Environmental impact of DBFs................................................................................48 Discussion ...................................................................................................................54 References...................................................................................................................56 Articles/Books/Reports................................................................................................56 Personal communications ............................................................................................59 Webpages.....................................................................................................................60 Appendices .................................................................................................................60 1 = Swedish Standards for pellets 2 = Swedish Standards for briquettes 3 = Questionnaire to DBF producers 5 1 List of diagrams, figures and tables 1.1 Diagrams Diagram 1. Storing capacity of DBF producers in relation to their production capacity Diagram 2. Wood-fuel prices 1993-2001, SEK/MWh [free consumer, current prices] Diagram 3. Actual industrial energy prices in Sweden 1970-1999, SEK/MWh Diagram 4. Actual residential energy prices in Sweden 1970-1999, SEK/MWh Diagram 5. Production of upgraded biofuels for commercial sale in Sweden 1993-2000, TWh. 23 31 38 39 44 1.2 Figures Figure 1. Figure 2. Figure 3. Figure 4. Figure 5. Figure 6. Figure 7. Figure 8. Figure 9. Figure 10. Figure 11. Figure 12. Figure 13. Figure 14. Figure 15. Figure 16. Figure 17. Figure 18. Figure 19. Figure 20. Figure 21. Figure 22. Figure 23. Figure 24. Figure 25. Figure 26. Figure 27. Figure 28. 6 Additive for pellet production Rotary drum drier Rotary drum drier Ring die pelletiser Ring die pelletiser Briquetting: Mechanical piston press Cooling tower for pellets The cooling track of a briquette production plant The cooling tracks of a briquette production plant Pellet big bags of 500 kg for distribution to small-scale customers Bulk truck for distribution of wood pellets Pellet silo Pellet storage Built in pellet storage Example of a storage room of a small-scale pellet user Pellet burner mounted on former oil boiler Pellet burner, 20 kW, mounted on pellet boiler Pellet fired furnace opened for ash removal Ash emptying of appliance with pellet burner Special vacuum cleaner for ash Pellet stove, PellX K6 (3-6 kW) in operation Pellet furnace, Tx 350 kW Pellet burner, C2 150-300 kW T 1,5 (1.5 MW) T 2,5 (2.5 MW) Major Swedish producers of briquettes, pellets and wood powder Production mix and capacities in the Swedish DBF industry The process tree of a biomass energy transportation system based on pellets with baled forestry residues as raw material 16 20 20 21 21 21 22 22 22 25 25 25 26 26 26 27 27 27 27 28 28 29 29 29 29 40 41 50 1.3 Tables Table 1. Table 2. Table 3. Table 4. Table 5. Table 6. Table 7. Table 8. Table 9. Table 10. Table 11. Table 12. Table 13. Table 14. Table 15. Table 16. Table 17. Table 18. Table 19. Table 20. Table 21. Table 22. Table 23. SS 18 71 20 – Classification of Fuel Pellets 11 SS 18 71 21 – Classification of Fuel Briquettes 12 Chemical composition of different raw materials suitable for the production of DBFs 13 Raw material potential for DBFs in the Swedish sawmilling industry, results calculated in tonnes of pellet equivalents 17 Maximum production potentials for wood pellets made from by-products from the sawmilling industry 18 Raw material prices and potential for pellets in Sweden 18 General conditions for the pelletisation process 33 Full costing method for a drum dryer 33 Full costing method for raw material crushing using a hammer mill 34 Full costing method for a pellet mill 34 Full costing method for a counterflow cooler after a pellet mill 35 Full costing method for silo storage at the pellet producer 35 Full costing method for peripheral equipment of a pellet plant 36 Calculation of the full costs for the facilities for the entire pelletisation plant 36 Total costs and cost/t for each step of the pelletizing process 37 List of Swedish producers of DBF combustion units 42 List of Swedish producers of appliances for production, storage and distribution of DBFs 43 Imports of untaxed fuels (biofuels) to Sweden 1992, 1995 & 1997 46 Raw material and energy input required for the production of the equivalent of 1 MWh of DBF. 48 Emissions to the air from transports 48 Mass balance for producing 1 MWh of electricity from pellets with baled forestry residues as raw material 49 Total environmental impact per MJ of produced heat in a heating plant 51 Total environmental impact per MJ of produced heat in small-scale residential incineration facilities 52 7 2 Introduction The traditional way to burn firewood in a stove may be simple and unproblematic in a small scale, but is very labour consuming when used in a larger scale. Chipping and crushing techniques give the possibility to mechanise the handling and automatise the combustion, while further upgrading to briquettes or pellets solves some transportation and storage problems and results in a fuel with a relatively high energy content (Marks, 1990). The process of drying and compressing biomass fuels incurs an extra cost. The advantages of this process however sometimes overweigh the disadvantages. Compared to unprocessed raw materials some of the advantages are: the reduced amount of water to transport, simpler combustion furnaces with less tending needed, the possibility of storing of fuels for longer periods without the risk of decomposition and an energy density of up to about five times that of unprocessed wood (Mared, 1998). The production of briquetted fuels started with materials such as coal dust and peat. Later charcoal fines and ground charcoal were used and since a few decades wood and peat are the most common raw materials used for briquetting in Sweden. The fuel pellet technology is a direct continuation of the industrial production of animal feed (MacMahon & Payne, 1982). Another type of upgraded wood fuel is wood powder, which is very uniform and can be burnt in a flame the same way as gas or oil (Marks, 1990). The expansion of the Swedish DBF sector came as a result of insecure oil supply in the 1970s. The two oil crises led to an increased interest for domestic fuels among politicians as well as private actors. In 1980 the community of Mora decided to build a pellet plant with a capacity of 40 000 tonnes per year at a cost of 20 million SEK1. The Swedish government stated their position, in considering DBFs as a good alternative fuel, by providing Mora with a 10 million SEK loan from the Oil substitution fund (Westholm, 1986). The development of the Swedish biofuels sector in general, and densified biofuels sector in particular, has been successful and Sweden is currently one of the leading users of modern biofuel technology. There were in 2001 about 30 larger production plants for densified biofuels in Sweden. The total Swedish energy input in 1999 was some 475 TWh, excluding an extra 140 TWh in transmission losses in the nuclear power stations. The largest share came from oil products with some 200 TWh, followed by bioenergy (including peat) with 93 TWh, nuclear power with 73 TWh and waterpower with 71 TWh. The large share of biofuels came almost entirely from the by-products of the forestry-, sawmilling- and pulping industries, in which 51 TWh of bioenergy were used internally (Swedish National Energy Administration, 2000). The Swedish production of DBFs in 2000 accounted for 3.5 TWh (Hogfors, 2001). According to the Swedish National Energy Administration (1998) the total Swedish consumption of wood-fuels in 1997 was approximately 47 TWh. The growth rate for woodfuel use during the last decade has been close to 15 % per year. For heat production a baseload of fossil fuels is currently not competitive because of the high taxes on these. In this case wood-fuels compete with other biofuels like peat. 1 SEK = 0.109 Euro, as of 2002-01-15. 8 District heating is a large-scale underground pipe network supplying hot water for heating to buildings in an area. The district heating sector has played an important role in Swedish experience in a wood-fuel market for large-scale users over a period of 20 years. In 2000 the Swedish district-heating sector used 14.7 TWh of biofuels, of which 3.2 TWh were upgraded wood-fuels (Hogfors, 2001). Some 80 companies supplied 230 medium- and large-scale community and industrial heating plants, block centrals etc. with 21 TWh of wood-fuels in 1997 (sawmill boilers not included) (Vinterbäck & Hillring, 2000). In 2000 the same customers used 19.1 TWh of wood-fuels, of which 4.4 TWh were upgraded (Hogfors, 2001). Preparations for changes towards a common energy policy have started in the European Union. This is stated in the White Paper (European Commission, 1997) and the mission is to increase the use of renewable energy sources at the expense of fossil fuels. The overall target is to double the share of renewables in the EU energy supply up to 12 % by the year 2010. Biofuel utilisation is one feasible means in reaching this target. In 1997 the aggregate EU bioenergy use was 522 TWh. The total national energy demand in some European countries, e.g. Sweden, Finland and Austria, is covered up to 17 % of woodfuels (European Commission, 1997). The aim of the INDEBIF project is to increase the usage of densified biofuels in Europe. This will be done by developing a database on the Internet where relevant information is available for each country. Companies and individuals who are considering an investment in their heating system should be able to find up to date information about producers, distributors and retailers and their prices on different assortments, as well as information about taxes, emissions etc. The gathering of information has been based on literature, questionnaire surveys to DBF producers (see Appendix 3), other open sources and personal communications. 9 3 Questionnaire To gather relevant information about the current situation among the producers of densified biomass fuels a questionnaire survey (Appendix 3) was sent out to 28 Swedish DBF production plants and to the head offices of three larger DBF production concerns. In 41 points questions were asked about e.g. products, production, company history, raw materials and markets. The questionnaires were sent out in June 2001 and they were followed up by telephone contacts, company visits and a renewed mailing to non-respondents. 18 questionnaires were answered which gives a total response frequency of 58 %. The response frequency has been affected by the fact that the three larger concerns also received a questionnaire at their head offices. In one case answers were received from the production plants and not from the company head office. In a second case answers were received in aggregated form from the head office only. In a third case answers were received from both the head office and all of the production plants except for one. In the following, this questionnaire will be referred to as Hirsmark (2001). 10 4 Definitions, standards and characteristics of DBFs Densification of biomass fuels usually means drying and forming of biomass raw material under high pressure. The raw materials used comprise sawdust, shavings, chippings, byproducts from a wide array of forestry or agricultural operations or any other biobased fuel materials (SS 18 71 20 & SS 18 71 21). The densified biomass fuels can, based on dimensions, be divided into two categories, pellets and briquettes. Pellets are cylindrical pieces of compressed biomass, with a maximum diameter of 25 mm (SS 18 71 20). Briquettes can be cylindrical or rectangular or of any other form as long as their length does not exceed five times their diameter, which is larger than 25 mm (SS 18 71 21), see Tables 1 and 2. According to the Swedish standards, pellets (Table 1 and Appendix 1) and briquettes (Table 2 and Appendix 2) are classified into three groups, where the first one is of the highest quality corresponding to the demands of small-scale users. Table 1. SS 18 71 20 – Classification of Fuel Pellets Property Dimensions: diameter and length in producer’s store Bulk density Durability in producer’s store Test Method Unit By measuring at least mm 10 randomly selected fuel pellets SS 18 71 78 SS 18 71 80 Net calorific SS-ISO 1928 value (as delivered) Ash content SS 18 71 71 Total moisture SS 18 71 70 content (as delivered) Total sulphur SS 18 71 77 content Content of additives Chlorides SS 18 71 85 Ash dissolution Source: SS 18 71 20 Group 1 Group 2 Group 3 To be stated as To be stated as To be stated as max 4 times ∅ max 5 times ∅ max 5 times ∅ kg/m3 > 600 Weight of < 0.8 fines < 3 mm, % MJ/kg > 16.9 > 500 < 1.5 > 500 > 1.5 > 16.9 > 15.1 kWh/kg > 4.7 % w/w of < 0.7 DM % w/w < 10 > 4.7 < 1.5 > 4.2 > 1.5 < 10 < 12 % w/w of < 0.08 < 0.08 To be stated. DM % w/w of Content and type to be stated. DM % w/w of < 0.03 < 0.03 To be stated. DM SS 18 71 65 / ISO 540 0C Initial temperature (IT) to be stated. 11 Table 2. SS 18 71 21 – Classification of Fuel Briquettes Property Diameter in producer’s store Length in producer’s store Bulk density Durability in producers store Test Method Dimension in the press By measuring at least 10 randomly selected fuel briquettes SS 18 71 78 SS 18 71 80 Net calorific SS-ISO 1928 value (as delivered) Ash content SS 18 71 71 Total moisture SS 18 71 70 content (as delivered) Total sulphur SS 18 71 77 content Content of additives Chlorides SS 18 71 85 Ash dissolution Source: SS 18 71 21 12 SS-ISO 540 Unit mm Group 1 To be stated, min 25 mm mm > ½ ∅, but max 300 mm kg/m3 > 550 Weight % < 8 of fines < 15 mm MJ/kg >16.2 Group 2 To be stated, min 25 mm, min 10 mm, max 100 mm > 450 < 10 Group 3 To be stated, min 25 mm > 450 > 10 >16.2 To be stated kWh/kg > 4.5 % w/w of < 1.5 DM % w/w < 12 > 4.5 < 1.5 To be stated To be stated < 12 < 15 % w/w of < 0.08 < 0.08 To be stated. DM % w/w of Content and type to be stated. DM % w/w of < 0.03 < 0.03 To be stated. DM 0 C Initial temperature (IT) to be stated. 5 Technical evaluation of DBFs 5.1 Raw materials 5.1.1 Wood The wood species used for densification into pellets and briquettes in Sweden are almost entirely Norway spruce (Picea abies) and Scots pine (Pinus sylvestris), which are the most common species in the country (National Board of Forestry, 2000, p. 56). Birch is also a nationally widespread species and has the potential to become an alternative raw material in the future. The difference in energy content between birch and the two main species used is marginal (Table 3). At present the major part of the harvested birch is used for pulping, which gives little by-products for densification processes. One DBF producer is currently testing production with birch sawdust as raw material. Table 3. Chemical composition of different raw materials suitable for the production of DBFs GJ/tonne percentage of weight Energy Lignin Extractives Ash content Cl K N S Beech stw bark 19.7k 24.8c 1.2c Birch stw bark 19.6-20.3k 22.0c 3.2c 0.4f / 1.7b 2.2f Pine stw i.b. o.b. 20.2-20.5k 27.7c 29.2d 47.6d 3.5c 4.5d 3.4d 0.4f 1.5b / 2.6f <0.01j 0.023-0.031j 0.00063j 0.05b j j b 0.01-0.02 0.196 0.3 0.00420j 0.2-0.3b Spruce stw bark 20.2-20.3k 27.4c 35.9d 1.7c 3.8d 0.6f 3.2f / 3.8b <0.01j 0.024-0.031j 0.05b 0.0006j 0.01-0.02b 0.01-0.02j 0.219j 0.50b 0.0020j 0.20-0.30b Salix 16.7-17.6k 0.01e 0.20e 0.40e 0.092i 0.03e Straw 14.4a 0.31g 0.99g 0.50g 0.11g 0.08g Reed canary grass Notes: Sources: 14.4a 0.09h 0.27h 0.88h 0.02h 0.09h stw 0.085j 0.210j Na <0.005j 0.024j 0.053j 0.139j 0.008j 0.011j 0.05b 0.00058j 0.40b 0.0014j stw=stemwood; i.b.=inner bark; o.b.=outer bark. Forsberg, 1995; bHadders & Forsberg, 1996; cSjöström, 1993; dHakkila, 1989; eHadders & Olsson, 1996; fLehtikangas, 1998; gNilsson et.al., 1998; hBurvall & Hedman, 1994; iNilsson, 1996; jBodlund & Herland, 1991; kGärdenäs, 1986. a Beech and oak grows naturally in the southern part of Sweden and are used for various purposes like e.g. furniture, flooring and other ennobled products (Drakenberg, 1994). The production processes used for these products give large shares of by-products. For example, the process of making parquet flooring results in a by-product share of 80 % (Rosander, 2001). Beech residues are very suitable for DBF production whereas on the other hand oak is often not considered since it has a high content of chlorides. Chlorides could lead to increased corrosion in the combustion appliances. 13 5.1.2 Bark Bark is a very cheap and abundant raw material in Sweden that is common to use as a fuel in large-scale applications, especially in the forest industry. Bark is then burned in its raw condition in special bark boilers. Bark from coniferous trees has a higher content of nearly all of the critical (from a combustion point of view) elements, compared to wood from the same trees (Table 3). Bark pellets thus gets higher ash content than wood pellets. Also the air emissions from bark combustion contain relatively higher levels of pollutants. As an example, sulphur from the raw material (Table 3) binds to air oxygen, resulting in a release of pollutants such as S02 . These facts make bark pellets unsuitable for use in small-scale heating plants where there is no exhaust cleaning and where there is a need or wish for less ash removal and less tending of the appliance. Large-scale plants, however, are better suited for combustion of bark pellets. 5.1.3 Short rotation coppice Wood from SRC (short rotation coppice), in Sweden mainly Salix sp., is at present not used for pellet production in Sweden. The reason for this is the relatively good availability of less expensive and better suited raw materials, such as sawdust and planer shavings. Although Salix pellets, according to preliminary tests at SLU, will have net calorific values that comply with the SS 18 71 20, the energy loss during transports and pellet production, mainly in the form of volatile organic compounds, today make the production of Salix pellets too costly for Swedish conditions. Salix contains a comparatively high percentage of VOCs (Volatile Organic Compounds), that can not be taken care of today. 10-20 % of the dry matter will vapour when Salix wood is dried by forced drying. These VOCs (e.g. terpenes), have very high energy contents, and can be utilised when unrefined Salix is burnt. Some heating plants use chips from SRC where the species used are Salix. The total Swedish consumption of short rotation coppice in 1999 was 0.1 TWh (Swedish National Energy Administration, 2000). 5.1.4 Peat Peat is an organic substratum that builds up from biomass that do not decompose in the anaerobic environment of a swamp or bog. Every growth season a new generation of plant residues fall into the moist ground where it decomposes very slowly or not at all. This is why the peat layer of a bog grows a little bit thicker every year. Sweden, like many other countries in the taiga region, is to a large extent covered with a mosaic of forests, lakes and peat bogs. The opinions divide when it comes to classifying peat as a biofuel or not. It has been argued that as long as less peat is harvested than is reproduced every year, it is to be considered as a biofuel. This line of argument is based upon the fact that in this case the bogs collectively bind more CO2 than what is released to the atmosphere when peat is burned. This leads to the conclusion that peat harvesting does not cause a net contribution of CO2 to the atmosphere from the bogs. 14 Another line of argument supports itself on the similarities between the reproduction of peat and that of coal or even oil. They are all formed from organic matter that has not been fully decomposed. This leads to the conclusion that peat is a fossil fuel and that the main difference between these three fuels is the time needed for their reproduction. Härjedalens Mineral AB (HMAB), the largest briquette producer in Sweden currently uses about 50 % peat and 50 % sawdust in its briquette production. The plant has a production capacity of 300 000 tonnes of briquettes per year, corresponding to 1.5 TWh of heat. HMAB´s briquette production started in 1989 with the help from the Swedish government by an investment subsidy of 20 %. The company employs 100 persons full time and another 100 persons during the peat harvesting period of the summer. All of the finished goods are stored in containers that are distributed by rail to the customers, who are large-scale heating plants (Hirsmark, 2001). The production has varied between 163 000 tonnes and 270 000 tonnes annually during the last ten years. These fluctuations come with the dependence on the weather during the summer, which is the peat harvesting period. A sunny summer with sparse rain is the ideal condition for the peat to dry out and for a good peat harvest. The total Swedish consumption of peat in 1999 was 2.8 TWh (Swedish National Energy Administration, 2000). Since peat contains quite much sulphur there is a sulphur tax of 40 SEK/tonne imposed on burning it. This is equivalent to about 15 SEK/MWh (Swedish National Energy Administration, 2000). 5.1.5 Other raw materials Other raw materials possible for densification would be, e.g., forestry residues, recycled wood, agricultural by-products and energy crops (e.g. Reed canary grass). These agricultural materials are not as energy rich and have lower ash melting points compared to wood and would hence cause problems in meeting the Swedish standards for pellets, see Table 1. Mixing of wood and agricultural raw materials might be one solution to this problem. Agricultural by-products are, e.g., straw and residuals from grain production. The water contents of these raw materials rarely exceed 20 %, which makes drying unnecessary. Since 1990 at least one pellet mill in Sweden, SL Energi, has been using agricultural byproducts as raw material. SL Energi is situated in Malmö (Figure 26) in southern Sweden and is owned by the farmers association Svenska Lantmännen. The plant uses residues from the grain production and has a production capacity of 8 000 tonnes of pellets annually. In the year 2000 the production reached 6 000 tonnes which was all burnt in a medium-scale heating plant owned by the same association. The internal use of the pellets makes production according to the Swedish standard less important. The relatively new segment of recycled wood is the least expensive alternative (Swedish National Energy Administration, 2001). Processing recycled wood to DBFs, however, involves costs and problems with, e.g., contaminations, which makes the somewhat more expensive segment of industrial by-products a more reasonable choice. This will be the case 15 until there is a cost efficient technology to clean the recycled wood, or to guarantee its cleanliness in some other way. The by-products from forestry operations in Sweden are today utilised to some extent. These forestry residues have a theoretical potential of 70 TWh/year of tops, branches and needles provided the standard Scandinavian silvicultural techniques of today. This theoretical potential can not be fully utilised, as it is limited by environmental, technical and economical concerns (Cederberg et al., 2001). When using forestry residues as raw material for DBF production the problem of contaminations with soil particles arises. These ground particles could lead to a more intensive wear of the densification equipment. 5.1.6 Additives To increase the abrasion resistance of the fuel and to reduce the wear in the production equipment it is possible to use binding agents or additives (Figure 1). This is allowed according to both the Swedish standards for pellets (SS 18 71 20 – Appendix 1 and Table 1) and for briquettes (SS 18 71 21 – Appendix 2 and Table 2). Some additives increase the content of, e.g., sulphur, which means the limiting value for sulphur content also acts as a limiting value for these additives. Figure 1. Additive for pellet production Photo: J. Vinterbäck. At least two of the pellet plants currently in operation use additives in their production. They both use lignosulphonates (“Wafolin”), which, however also increases the sulphur content of the pellets. One plant also uses potato starch as a binding agent. Other noteworthy similarities between the two lignosulphonate using plants, are that they both use >90 % planer shavings; they do not use any conditioning unit for adding steam before the pelletisation; and they have both experienced interferences in the pelletising unit, according to the questionnaire survey of this project (Hirsmark, 2001). The use of additives in Sweden seem to have decreased during 16 the last five years when comparing to a survey to pellet retailers by Hillring & Vinterbäck (1998). 5.2 Raw material potentials Some 28.9 million ha or 70 % of Sweden is covered with forests. These produce an annual growth of about 100 million m3 of solid stemwood and bark, of which the forestry industry annually harvests about 75 million m3 (Ek, 2001). Roughly half of this amount goes to the sawmilling industry and the other half to the pulping industry (Nilsson & Lönner, 1999). Especially the sawmilling industry generates large quantities of by-products suitable for densified biomass fuel production. Also the raw wood chips would be excellent for DBF production but these have traditionally commanded a higher price when sold to pulp mills (Table 6). The prices for raw chips have, however, decreased during the last years, making this assortment more and more interesting for the DBF producers. Table 4. Raw material potential for DBFs in the Swedish sawmilling industry, results calculated in tonnes of pellet equivalents Bark (mc=60 % on w.b.)B Sawdust (mc=57 % on w.b.)B Raw chips (mc=57 % on w.b.)B Slabs & Edgings (mc=57 % on w.b.)B Dry chips (mc=23 % on w.b.)B Sawmills >5 000 m3sw/yrA 8 200 000 m3s bark 3 280 000 tonnes bark 1 312 000 tonnes dry matter 1 458 000 tonnes pellets 2 800 000 m3f 2 398 000 tonnes sawdust 1 031 000 tonnes dry matter 1 146 000 tonnes pellets 9 460 000 m3f 8 102 000 tonnes raw chips 3 484 000 tonnes dry matter 3 871 000 tonnes pellets 32 000 m3f 27 000 tonnes s & e 12 000 tonnes dry matter 13 000 tonnes pellets 901 000 m3f 429 000 tonnes dry chips 331 000 tonnes dry matter 367 000 tonnes pellets C Shavings (mc=15 % on w.b.)B Notes: Sources: Sawmills >1 000 m3sw/yrA 8 280 000 m3s bark 3 312 000 tonnes bark 1 325 000 tonnes dry matter 1 472 000 tonnes pellets 2 846 000 m3f 2 438 000 tonnes sawdust 1 048 000 tonnes dry matter 1 165 000 tonnes pellets 9 570 000 m3f 8 196 000 tonnes raw chips 3 524 000 tonnes dry matter 3 916 000 tonnes pellets 45 000 m3f 38 000 tonnes s & e 16 000 tonnes dry matter 18 000 tonnes pellets 911 000 m3f 434 000 tonnes dry chips 334 000 tonnes dry matter 371 000 tonnes pellets 1 192 000 m3f 515 000 tonnes shavings 437 000 tonnes dry matter 486 000 tonnes pellets A: The unit m3sw/yr means cubic meters of sawn wood per year, and refers to the production of the sawmills. B: Moisture content on wet basis. C: Information missing because of lack of source material. Conversions based on Forsberg (1995). Quantities based on Hamilton (1986) & Warensjö (1997). 17 In table 4 the contributions of the sawmilling industry has been calculated for different sizes of sawmills to illustrate the relatively minor importance of by-products from smaller sawmills (production capacities 1 000-5 000 m3sw/yr)2 in the large perspective. The by-product assortments that are used for DBF production today, are as well converted into pellet equivalents. Raw chips represent the absolutely largest potential with 3.9 million tonnes of pellet equivalents, while bark and sawdust represent the second and third largest potentials with close to 1.5 and 1.2 million tonnes of pellets respectively if totally utilised. However total utilisation of, in particular raw chips and bark, is not feasible. Bark is needed to cover the large internal energy need when drying the sawn products, and raw chips are currently sold to pulp mills for pulping. If the price of raw chips however does not increase from its currently low position, sawmills might regionally just as well in the future sign delivery contracts with DBF producers instead of pulp mills. Table 5. Maximum production potentials for wood pellets made from by-products from the sawmilling industry BarkA SawdustB Raw chipsB Slabs & EdgingsB Dry chipsB ShavingsB Sum Notes: Sources: Sawmills >5 000 m3sw/yr Sawmills >1 000 m3sw/yr tonnes of pellets TWh tonnes of pellets TWh 1 458 000 7 .290 1 472 000 7 .360 1 146 000 5 .501 1 165 000 5 .592 3 871 000 18 .581 3 916 000 18 .797 13 000 0 .062 18 000 0 .086 367 000 1 .762 371 000 1 .781 See comment in Table 4. 486 000 2 .333 6 855 000 33 .196 7 428 000 35 .949 A: Net calorific value of 5.0 MWh/tonne. B: Net calorific value of 4.8 MWh/tonne. Values from Table 4. In a previous study of DBFs (Ohlsson, 1997) the total energy potential of different raw materials was calculated. When using the net calorific value of 4.8 kWh/kg (SS 18 71 20), the conversion of the quantity of sawdust in Table 5 into potential energy, results in 5.5-5.6 TWh. This corresponds well to the energy potential of 5-6 TWh for sawdust given by Ohlsson (1997) (Table 6). The potential of bark in the latter study however differs significantly, with 13 TWh in Table 6 and 7.3-7.4 TWh in Table 5. The reason for this is that Ohlsson probably included bark from the pulp mills as well. For bark a net calorific value of 5 kWh/kg is used (Södra Skogsenergi, 1999). Table 6. Raw material prices and potential for pellets in Sweden Raw material Sawdust Dry chips Raw chips Bark Refuse derived Forestry residues SRC Price for dried material [SEK/tonne] 350 520 790 140 340 260 230 Energy content [MWh/raw tonne] 1.9 4.1 2.1 1.6 3.9 2.5 2.3 Source: Ohlsson (1997) 2 The unit m3sw/yr means cubic meters of sawn wood per year. 18 Potential [TWh] 5-6 1.2 13 4 176 0.5 In Table 6 the segment "Refuse derived" incorporates recycled wood, wood from packaging and construction refuse. This material is often contaminated and using it as raw material for DBF production could lead to a faster wear of the production equipment and highly increased amounts of ash, which does not suit the small-scale customers. The largest potential in Table 5 comes from raw chips with 18.6-18.8 TWh if totally converted into pellets. Ohlsson (1997) did not calculate on the energy potential of raw chips (see Table 6), probably due to the price of raw chips, which at that time was not competitive with other raw materials. The largest raw material potential in Table 6 is found in forestry residues with 176 TWh. A large share of this segment consists of dead and living trees that have no commercial use in forestry today. Since these trees often contribute to the biodiversity of forests a large share of them should be left as a means of environmental concern (Cederberg et.al., 2001). Hektor et. al. (1995) have calculated the total potential of forestry residues for year 2020. The gross potential will be 72-89 TWh per year, but ecological restrictions will reduce the potential to 66-81 TWh per year. According to Hektor et. al. (1995) the total amount of available wood fuel will be about 130 TWh per year. The Swedish production of forestry residues for year 2000 was about 9 TWh (Hogfors, 2001). A possible development is that the supply of imported DBFs decreases as a result of increased demand in the exporting countries. This would lead to an increased demand for domestic DBFs in Sweden, which would push the prices up. It would then be more interesting to use harvesting residues such as branches and tops for densification. Today these residues are not used for DBF production because of the higher costs involved due to e.g. higher moisture content and the wearing down of the production facilities (see chapter 5.1.5). In some regions it is common to chip forestry residues in the regeneration fellings for incineration in large- and medium-scale heating plants. 5.3 Manufacturing process 5.3.1 Introduction The production of DBFs can be divided into five basic steps. First of all the moisture content and the particle size (oversized or large pieces like chips need to be comminuted before drying or separated from the raw material stream) of the incoming raw material is of crucial importance. Often the raw material needs to be dried by forced drying before densification. Secondly, the raw material particles should not exceed a certain size, and therefore comminution is needed for most raw materials. Thirdly, it is possible to make the wood fibres more soft and flexible by adding steam to the raw material by so called conditioning. Fourthly, the densification takes place either by pelletisation, or by briquetting. And finally, to decrease the vapour pressure in the pellets or briquettes some sort of cooling device is needed to take down the high temperatures generated during the densification process. After these five steps of production follows one or more of the steps storage, separation of fine particles, bagging and distribution. The different production steps will now be looked into in some more detail. 19 5.3.2 Drying From my questionnaire survey to DBF producers (Hirsmark, 2001; Appendix 3) it was noted that 69 % of the responding pellet producers, and 33 % of the responding briquette producers had some kind of dryer installed (Figures 2 & 3). This indicates that the briquette producers more often than the pellet producers use a dry raw material. Figures 2 & 3. Rotary drum driers. Source: www.svebio.se, 2002. The most common drying equipment in Sweden is directly heated rotary drums. The flue gases from the combustion of the drying fuel are blown through the dryer and thereby directly heating up the raw material. The fuels used for drying heat generation range from DBFs over wood powder or bark to oil or industrial surplus heat. Worth noting is that at least two DBF plants in Sweden deliver surplus heat from their drying equipment to the district heating grids of their respective communities (BioNorr AB in Härnösand and SBE Svensk BrikettEnergi AB in Norberg respectively). Another pellet plant is currently planning to connect to the community district heating grid, SBE Svensk BrikettEnergi in Ulricehamn. 5.3.3 Comminution All of the DBF production plants that had answered to the questionnaire survey used a milling unit (Hirsmark, 2001). The comminuting equipment most commonly used are hammer mills. In general the raw material particle size requirement of the pellet press is a diameter of mmdimension and of the briquettor a diameter of cm-dimension (Vinterbäck, 2001 b). 5.3.4 Conditioning Conditioning means applying superheated steam to the raw material in order to soften the wood fibres prior to densification. About 50 % of the pellet producers and 33 % of the briquette producers use conditioners in their respective production (Hirsmark, 2001). 20 5.3.5 Pelletisation/Briquetting There are two main types of pelletisers for wood and bark: flat die pelletisers and ring die pelletisers (MacMahon & Payne, 1982). Nowadays mainly ring die pelletisers (Figures 4 & 5) are used in Sweden (Vinterbäck, 2001 b). The exceptions are PI Träenergi AB in Edsbyn and Sydpellets AB in Traryd. In a ring die pelletiser the die is cylindrical and the pellets are, with common technology of today, pressed from the inside and out through the die by rollers. There are no Swedish producers of pelletising equipment. Common machine types are SproutMatador, California Pellet Mill and Bühler. Figures 4 & 5. Ring die pelletisers Source: www.svebio.se, 2002. For briquetting the mechanical piston press technology is dominating (Figure 6). With a piston press the raw material is fed through a narrowing press cone, by a mechanically or, sometimes, hydraulically driven piston, and thereby being compressed and heated by the friction between the wood particles. The most common brand is BOGMA, which is produced in Ulricehamn, Sweden by BOGMA AB. Figure 6. Briquetting: Mechanical piston press Source: www.bogma.com, 2001. 21 5.3.6 Cooling During the pelletising and briquetting processes heat is generated by friction when compressing the raw material particles. The relatively small amount of water in the raw material therefore exercises vapour pressure when transforming from liquid to gaseous phase. To prevent this pressure from breaking up the newly formed pellets or briquettes, or to prevent that the fuel is “sweating”, it is usually necessary to cool down the DBFs directly after the compression (Figure 7). Figure 7. Cooling tower for pellets Photo: J. Vinterbäck Of the responding pellet producers, 100 % use coolers to increase the product durability. The most common types of pellet coolers are the counterflow coolers. In these coolers the newly pressed pellets are transported through a "tunnel" on a conveyor belt while cold air is blown towards them. This results in a soft cooling while the hottest pellets closest to the press meet the air that has already taken up some heat from the pellets that have passed. Figures 8 & 9. Cooling tracks of a briquette production plant Source: www.bogma.com, 2001 Of the responding briquette producers 83 % state that they use some kind of cooling device. Cooling of briquettes is often performed by letting the DBF come out of the piston press and then slide up to 40 m on a cooling track, before cutting or breaking it up in smaller lengths 22 (Figures 8 & 9). This means that cooling is done under pressure, a combination that considerably increases the internal bonding of the briquette. 5.3.7 Storage Because of the seasonally shifting demand for fuels in Sweden, storage of DBFs is a necessity for the producers in order to have a maximum machine use. As seen in Diagram 1 the storing capacity of the responding DBF producers vary from 1 to 40 % of their respective production capacity. Diagram 1. Storing capacity of DBF producers in relation to their production capacity 45 Storing capacity [%] 40 35 30 25 20 15 10 5 0 0 50 100 150 200 250 300 350 Production capacity [1000 ton] Based on: Hirsmark, 2001. For plants with a production capacity of less than 75 000 tonnes per year the storage capacity varies from 1 to 39 %, with an average of 21 %. The corresponding interval for plants with a production capacity exceeding 75 000 tonnes per year is 21 to 40 %, with an average of 30 %. It should be noted that in Diagram 1 there are two production plants with a total production capacity of 36 000 tonnes and a storage capacity of 39 %. The producer with the largest production capacity is the briquette producer HMAB Härjedalens Mineral AB, while the second largest is the pellet and briquette producer SBE Svensk Brikettenergi and the third largest is the pellet producer SCA Norrbränslen. The two latter incorporate several production plants. Of the respondents in the questionnaire survey (Hirsmark, 2001) 94 % stored parts or all of their production in warehouses while the remaining 6 % (one briquette producer) stored all of its production in containers, that were later transported to large-scale customers by train. Another 61 % also used a combination of warehouses and silos for storing while one pellet producer stored some of its products outside under roof. One producer of pellets and 23 briquettes stored some of its pellets outside in small plastic bags for further distribution to small-scale customers (Hirsmark, 2001). 5.3.8 Production of bark pellets There is currently only one plant that produces pellets from bark in Sweden. It is situated in Mönsterås and has been running since 1997 (Ljungblom, 1998). The owner SÖDRA also runs a sawmill and a pulp mill at the same location. The raw materials used in the pellet mill are by-products from the other two industries on the site. The plant is situated by the coast, and the main part of the production goes by boat to either of the two heating plants Hässelby in Stockholm or Helsingborg in the south of Sweden. These large-scale users have both converted from coal to pellets and can handle the relatively higher ash content of bark pellets. For small-scale users, the frequent emptying of the ash box that comes from the 3.5 % ash content of these bark pellets could be relatively troublesome. The bark pellets of SÖDRA contain about 90 % bark and 10 % wood. They have a bulk density of about 750 kg/m3 and a net calorific value of some 5 MWh/tonne (Södra Skogsenergi, 1999). The plant uses two Sprout-Matador ring die pelletisers, which gives it a maximum annual production capacity of 50 000 tonnes of pellets. Crushing of bark can sometimes be problematic and therefore cutting mills are usually preferred for the comminution step. In this case, however, a hammer mill is used, which reduces 90 % of the particles to a size less than 1 mm. The rollers of the pelletiser seem to wear down more rapidly than what would be the case if using pure wood as a raw material. (Ljungblom, 1998). 5.4 Fuel logistics 5.4.1 Current distribution techniques The current distribution techniques used by Swedish DBF producers are of many sorts, but the main way of distributing the products is in bulk. All of the respondents in the questionnaire survey to Swedish DBF producers transport at least some of their production in bulk. About 60 % of the pellet producers and 70 % of the briquette producers sell their products to largescale heating plants, to which the fuels are transported in bulk by ship, train or truck. Half (47 %) of the DBF producers export some of their production with both small-scale and largescale users as target segments (Hirsmark, 2001; Appendix 3). 24 Figure 10. Pellet big bags of 500 kg for distribution to small-scale customers. Source: www.svebio.se, 2002. Pellets for small-scale users are packed and distributed in small bags of 16-25 kg, big bags of 500-1000 kg (Figure 10) or distributed in bulk by special trucks, see Figure 11. These trucks unload the fuel by blowing (pneumatically) the pellets through a hose into the storage room or silo (Figure 12) with high air pressure. The technology comes from the distribution system of the fodder industry and to some extent resembles the distribution system of fuel oil. Figure 11. Bulk truck for distribution of wood pellets. Source: www.svebio.se, 2002. Figure 12. Pellet silo. Source: www.ecotec.net, 2001. Another way of distributing pellets and briquettes is by using containers that can be put vertically by a special truck. This way the container acts as a silo itself, and can easily be changed to another container when emptied. This technology is developed and used by SBE Svensk Brikettenergi AB, and is designed for small- or medium scale industrial users, schools, public buildings etc. 5.4.2 Residential storage Storing of pellets by the small- and medium-scale customers can be solved by e.g. using a silo or storage room (Figures 13 & 14). For smooth running of the 25 Figure 13. Pellet storage. Figure 14. Built in pellet storage. Source: www.ecotec.net, 2001. Source: www.ecotec.net, 2001. Note: The pipes on the storage are for bulk filling. The pellet truck connects the hose to the left pipe and the excess air passes out through the other two pipes to which dust filters are connected. The pellets are fed by screw feeding from the bottom of the storage through a pipe. appliance the pellets can be screwed or blown in pipes from the silo or storage room to the appliance (Figure 15). Small-scale users often build their own storage room to keep the costs down, but components and whole storage solutions are available in the market. Figure 15. Example of a storage room of a small-scale pellet user Source: www.pellx.nu, 2001. 5.5 Incineration facilities 5.5.1 Small-scale systems (0-100 kW) The sale of small-scale heaters are experiencing a great increase. In year 2000 about 6 000 small-scale heaters were sold in Sweden and the sales for 2001 were estimated to reach 12 000 units (Samuelsson, 2000). Of the responding pellet producers 86 %, and of the responding briquette producers 83 %, had customers with small-scale incineration facilities with a nominal boiler capacity of less than 100 kW (Hirsmark, 2001). In the beginning of the 1990s the pellet market almost entirely consisted of large-scale consumers, but today the small-scale market is growing rapidly (Vinterbäck, 2001 b). 26 Figure 16 (left). Pellet burner mounted on former oil boiler Figure 17 (right). Pellet burner, 20 kW, mounted on pellet boiler Source: www.pellx.nu, 2001. One common low cost solution when changing from heating oil to pellets in small houses in Sweden, is retrofitting the old oil fired furnace with a new burner designed for pellets, see Figures 16 & 17. Oil furnaces, however, are not designed for fuels that leave some amounts of bottom ash like pellets of wood or even of bark. Therefore a frequent emptying of ash is necessary to prevent from decreasing the efficiency or even filling the combustion chamber with ash. This can be taken care of with simple equipment with intervals depending on the season and what kind of pellets that are used, see Figures 18 & 19. Figure 18 (left). Pellet fired furnace opened for ash removal Figure 19 (right). Ash emptying of appliance with pellet burner Source: www.pellx.nu, 2001. For a more smooth and clean ash removal special vacuum cleaners for ash can be used. It works the same way as an ordinary vacuum cleaner (Figure 20). Another popular solution is to connect an ash catcher to a standard vacuum cleaner. 27 Figure 20. Special vacuum cleaner for ash Source: www.ecotec.net, 2001. In the 1970s, when electricity prices in Sweden were low, it was popular to install electric radiators when building or restoring houses. Therefore many Swedish single houses lack central heating systems for distributing room heat. This problemizes the conversion away from expensive electric heating. One good alternative here is the pellet stove, which only requires a chimney for the exhausts, see Figure 21. The pellet stove is placed in one of the rooms, preferably rather central in the apartment to allow for the heat to spread efficiently. Very often this source of heat is not enough in winter time, why the radiators usually are kept installed for support as a secondary heating source. A pellet stove might replace 50-75% of the electricity needed for heating. Figure 21. Pellet stove, PellX K6, (3-6 kW) in operation Source: www.pellx.nu, 2001. Briquettes are used as an alternative or complement to traditional wood fuel in the small scale systems. They can either be used in a fire-place or in a boiler furnace built for wood logs. The advantages of using briquettes instead of wood logs are, e.g., their higher energy density and cleanliness. 5.5.2 Medium-scale systems (100-1000 kW) Svenska Pelletvärmegruppen (SPG), as a subsection of the Swedish Heating Boilers and Burners Association (SBBA), represents producers and distributors of pellet heating 28 equipment of up to 500 kW in Sweden. In a market survey SPG found that in 1998 there were about 1 500 pellet stoves in use in Sweden, consuming some 5 000 tonnes of pellets annually. There were also about 8 500 pellet burners of less than 40 kW and about 300 pellet burners of 40-500 kW, consuming 60 000 tonnes and 25 000 tonnes respectively per year, making a total consumption of some 90 000 tonnes per year (Danielsson, 1999). The sales of burners, from the official market introduction in 1994 until 1998, had an average yearly increase of 100 % (Danielsson, 1999). Figure 22. Pellet furnace, Tx 350 kW Figure 23. Pellet burner, C2 150-300 kW Source: www.teembioenergi.se, 2001. Source: www.ecotec.net, 2001. According to my producer questionnaire (Hirsmark, 2001), 50 % of the briquette producers and 64 % of the pellet producers had customers with a medium-scale nominal boiler capacity of between 100 and 1000 kW. Medium-scale furnaces (Figures 22 & 23) are predominantly found in multi family houses, smaller industries, schools and other public buildings. 5.5.3 Large-scale systems (>1000 kW) Of the Swedish briquette producers, 67 % have customers with large-scale boilers with a nominal boiler capacity of more than 1 MW, according to my producer questionnaire. The corresponding share for pellet producers is 64 % (see Figures 24 & 25). Figure 24. T 1,5 (1.5 MW) Figure 25. T 2,5 (2.5 MW) Source: www.teembioenergi.se, 2001. District heating is a large-scale underground pipe network supplying hot water for heating to buildings in an area. The district-heating sector has played a vital role in the development of the Swedish wood-fuel market for large-scale users during the last 20 years. 29 In Hässelby, outside of Stockholm, there is a major pellet fired plant that produces heat for district heating of the northwestern suburbs of Stockholm. It is a combined heat and power plant which means that it can produce both electricity and district heating. It was built in 1959 and during the first decades the plant was fuelled with oil, but between 1983 and 1993 coal was used. 1994 the plant was converted to biofuels, burning mainly wood pellets and olive grains. Today the plant is run solely on pellets (www.energy.rochester.edu/se/stockholm/heatsupply.htm, 2001). The conversion of the Hässelby plant also positively affected the Swedish market for pellets, since such a large fuel consumer indirectly guarantees a steady and substantial demand. In Härnösand, north of Stockholm, the owner Stockholm Energi has built a wood pellet production plant together with regional sawmill industries in order to secure the fuel supply (www.energy.rochester.edu/se/stockholm/heatsupply.htm, 2001) for Hässelby. The total operation was thus a good example of vertical integration. The share of the pellet plant in Härnösand owned by Stockholm Energi is now sold to the Swedish forestry company SCA. Also bark pellets from SÖDRA Mönsterås are used in Hässelby. These pellets are shipped directly from the production plant to the heating plant (Ljungblom, 1998). The consumption of pellets in Hässelby for the heating season of 1995-96 was about 150 000 tonnes of pellets (Vinterbäck, 2000 a). 30 6 Economical aspects 6.1 Raw material prices In Diagram 2 the development of the prices for DBFs and their raw materials and competing biofuels from 1993 to 2001 are presented. The relatively new segment of recycled wood is the least expensive alternative. Processing recycled wood to DBFs, however, involves costs and problems with e.g. contaminations (see Chapter 5.1.5), which makes the somewhat more expensive segment of industrial by-products a more reasonable choice. Diagram 2. Wood-fuel prices 1993-2001, SEK/MWh [free consumer, current prices] 180 DBF: Heating plant 160 140 Forestry residues: Industry 120 Forestry Residues: Heating plant 100 80 Industrial byproducts: Industry 60 Industrial byproducts: Heating plant 40 Recycled wood: Heating plant 20 2001* 2000 1999 1998 1997 1996 1995 1994 1993 0 Note: * The values for 2001 incorporate only the three first quarters of the year. Source: Swedish National Energy Administration, 1995-2001. 31 6.2 Production costs 6.2.1 Introduction In a recently finished report (Zakrisson, 2002) an international comparison of production costs in pellet production in Austria, North America, Sweden and the Baltic States was carried out. The aim was to clarify how typical investment- and production costs influence the international trade of wood pellets and to examine the effect of movements in exchange rates for the concerned regions. The background was the growing market for pellets in especially Sweden and Denmark which has resulted in the development of international pellet trading. The calculations for Sweden and Austria were performed conforming to the Full Costing Method according to VDI 2067. The framework for VDI 2067 is developed by the german engineering association Verein Deutscher Ingeneure and can be explained as follows: The costs involved in the production are separated in four groups according to the guidelines in VDI 2067.These groups are: 1. 2. 3. 4. Costs based on capital (capital and maintenance costs). Usage-based costs Costs based on operation Other costs In group 1 the capital costs are calculated through the calculated service lives of the equipments used and the interest rate. The capital costs are equal to the investment costs multiplied by the capital recovery factor (CRF). The maintenance costs are percentages of the investment costs and are calculated on the basis of guideline values. CRF = (1 + i )n × i (1 + i )n − 1 Explanations: CRF = capital recovery factor, i = calculated interest rate in %, n = service life in years. In group 2 the usage-based costs include all costs in connection with the manufacturing process. In group 3 the costs based on operation include all costs involved in operating the plant as e.g. personnel costs. In group 4 the other costs include costs like e.g. insurance rates, taxes and administration. For this group a guideline value of 0.5 % of the investment costs per year is used (Obernberger & Thek, 2001). In this chapter we will take a closer look at the costs involved in Swedish pellet production. All costs have been calculated in euro at the exchange rate of 9.2010 EUR/SEK as of June 2001. The calculations according to the Full Costing Method have been performed for five steps of the pelletisation process (drying, comminution, pelletisation, cooling and storing) and for construction and peripheral equipment. Personnel- and construction costs have been calculated as a total value for the whole plant. The general conditions for the pelletisation process are gathered in Table 7. In this specific example the production is continuing 24 hours per day, seven days per week. This implies 8 000 hours of operation per year and the 32 throughput of 10 tonnes per hour therefore gives a yearly production of 80 000 tonnes. The electricity price bears reference to the Swedish price for industry electricity of year 1999. Table 7. General conditions for the pelletisation process Parameter Value Shifts per day 3a Working days per week 7a Availability of equipment 91 a Operating hours per year 7 972 Throughput of pellets 10,0 Electricity price 27,10b Service life, construction 50 a Service- and maintenance costs, 1,0 a construction Service life, office and computer 5a equipment Service- and maintenance costs, 0,5 a office and computer equipment Service life, marketing 10 a Interest rate 7,0 a Other costs 0,5 a Unit % h/year t/h €/MWh year % per year year % per year Notes: aBased on enquieries and interviews by Zakrisson, bEnergimyndigheten (2001a) Source: Based on Zakrisson (2002) year % per year % per year 6.2.2 Raw material The raw material used in this plant is raw sawdust with a moisture content of 57 % and a bulk density of 350 kg/m3 . The price is 5.1 €/m3 , which corresponds to 7.7 €/MWh. The total raw material cost per year amounts to 2 494 000 €, which corresponds to 31.3 €/tonne of produced pellets. 6.2.3 Drying The drying equipment used is a rotary drum dryer with flue gas condensation. This equipment, which has a service life of 10 years, needs 350 kW of electric power and demands Table 8. Full costing method for a drum dryer Investment costs exclusive of construction and personnel costs Capital costs Maintenance costs Usage-based costs Other costs Overall costs Specific costs per tonne of pellets € € / year € / year € / year € / year € / year €/t Dryer Electricity costs Heat costs Other costs 2 400 000a 342 000 60 000 402 000 5,0 64 000 0,8 7,0 0,2 Overall costs 2 400 000a 555 000 12 000 1 033 000 64 000 555 000 12 000 342 000 60 000 619 000 12 000 13,0 Source: Zakrisson (2002) 33 861 kWh/tonne of water vaporised. The equipment will vaporise 11.4 tonnes of water per hour, which gives it a heat demand of 78.21 GWh/year and a specific heat cost of 17.9 €/MWh. In Table 8 the Full Costing Method for the drying step is shown. 6.2.4 Comminution The hammer mill which is used in this plant has an electric power need of 250 kW, which gives it an electricity consumption of 1.694 GWh/year. It has a service life of about 10 years and its costs are shown in Table 9. Table 9. Full costing method for raw material crushing using a hammer mill Investment costs exclusive of construction and personnel costs € Hammer mill 360 000a Electricity costs Other costs Overall costs 360 000a Source: Zakrisson (2002) Capital costs Maintenanc e costs Usage-based costs Other costs € / year 51 000 € / year 65 000 € / year € / year 46 000 51 000 65 000 46 000 2 000 2 000 Overall Specific costs costs per tonne of pellets € / year 116 000 €/t 1,5 46 000 0,6 2 000 164 000 0,0 2,1 6.2.5 Pelletisation The pellet mill used is a ring die pelletiser. It has a service life of 10 years and needs 500 kW of electric power, which gives it a consumption of 3.4 GWh/year. The specific cost for steam in the conditioning unit reaches 11 €/ tonne of steam produced. The Full Costing Method for the pellet mill is shown in Table 10. Table 10. Full costing method for a pellet mill Investment costs exclusive of construction and personnel costs € Pellet mill 600 000a Electricity costs Costs for conditioning Other costs Overall costs 600 000a Source: Zakrisson (2002) 34 Capital costs Maintenanc e costs Usage-based costs Other costs € / year 85 000 € / year 78 000 € / year € / year 85 000 78 000 Overall Specific costs costs per tonne of pellets 92 000 € / year 163 000 92 000 €/t 2,1 1,2 22 000 22 000 0,3 3 000 280 000 0,0 3,6 114 000 3 000 3 000 6.2.6 Cooling This plant uses a counterflow cooler with an electric power need of 50 kW, corresponding to an electricity consumption of 339 MWh/year, and a service life of 15 years. The Full Costing Method for this unit is shown in Table 11. Table 11. Full costing method for a counterflow cooler after a pellet mill Investment costs exclusive of construction and personnel costs € Counterflow 240 000a cooler Electricity costs Other costs Overall costs 240 000a Source: Zakrisson (2002) Capital costs Maintenance costs Usagebased costs Other costs € / year € / year € / year € / year 26 000 5 000 9 000 26 000 5 000 9 000 1 000 1 000 Overall Specific costs costs per tonne of pellets € / year €/t 31 000 0,4 9 000 1 000 41 000 0,1 0,0 0,5 6.2.7 Storage This plant has a storage capacity or 29 000 tonnes, which covers 36 % of the total production potential, which is a mean value for Swedish DBF producers (Hirsmark, 2001).The interest (Table 12) is calculated in a way which values the stored pellets to the retail price of 143.5 €/ tonne. The service life of the storage facilities is 50 years. Table 12. Full costing method for silo storage at the pellet producer Investment costs exclusive of construction and personnel costs € Conveying system, dust 870 000a separation Interest for pellets in storage Other costs Overall costs 870 000a Source: Zakrisson (2002) Capital costs Maintenance costs Usage-based costs € / year € / year € / year 63 000 22 000 Other costs € / year € / year €/t 85 000 1,1 144 000 1,8 4 000 233 000 0,1 3,0 144 000 63 000 22 000 144 000 Overall Specific costs costs per tonne of pellets 4 000 4 000 35 6.2.8 Peripheral equipment Examples of peripheral equipment used are e.g. motors for screw feeders, pellet sieves, fans and tools.This equipment is estimated to have a service life of 50 years. The Full Costing Method for peripheral equipment is shown in Table 13. Table 13. Full costing method for peripheral equipment of a pellet plant Investment costs € Periferal 435 000a equipment Electricity costs Other costs Overall 435 000a costs Source: Zakrisson (2002) Capital costs Maintenance costs Usage-based costs Other costs Overall costs Specific costs per tonne of pellets € / year € / year € / year € / year € / year €/t 41 000 7 000 48 000 0,6 18 000 0,2 2 000 2 000 0,1 2 000 68 000 0,9 18 000 41 000 7 000 18 000 6.2.9 Personnel costs In this plant on average 2.3 employees are working per shift. This gives a total working time of 21 000 hours per year. Calculated with an average personnel cost per person of 15.7 €/hour, the cost per year arrives at 330 000 €. An extra 110 000 €/year is added for personnel in administration and marketing. The total personnel cost per year therefore arrives at 440 000 €, which corresponds to a personnel cost of 5.5 €/tonne of pellets produced. 6.2.10 Construction costs In Table 14 the Full Costing Method is used for the construction costs of building this plant, for office and computer equipment, and for marketing. The service life of the plant is 50 years and costs for service- and maintenance are estimated to 1 % of the total investment. Table 14. Calculation of the full costs for the facilities of the entire pelletisation plant Investment costs Capital costs Maintenance costs Usage-based costs Other costs Overall costs Specific costs per tonne of pellets € Total construction 870 000a costs Office and computer 100 000a equipment Marketing 59 000a Overall costs 1 029 000a Source: Zakrisson (2002) € / year € / year € / year € / year € / year €/t 63 000 9 000 4 000 76 000 1,0 24 000 500 500 25 000 0,3 8 000 95 000 2 000 11 500 300 4 800 10 000 111 000 0,1 1,4 36 6.2.11 Overall evaluation About 610 kWh of energy per tonne of produced pellets is needed in this plant. Some 17 % of this energy is electricity and 83 % is heat. The absolutely most energy consuming step in the process is the drying, followed by the pelletisation. The production costs that have been calculated conforming to the Full Costing Method according to VDI 2067 are gathered in Table 15 for a better overview. The total overall production costs of 4 909 000 € correspond to 61 €/tonne of produced pellets. Table 15. Total costs and cost/t for each step of the pelletizing process Production step / Cost unit Raw material Drying Comminution Pelletisation Cooling Storage Peripheral equipment Personnel Construction Overall costs Total cost (€) 2 494 000 1 033 000 164 000 280 000 41 000 233 000 68 000 440 000 111 000 4 909 000 €/tonne 31,3 13,0 2,1 3,6 0,5 3,0 0,9 5,5 1,4 61,0 Source: Based on Zakrisson (2002) 37 6.3 Comparison of end-user prices for different fuels 6.3.1 Introduction The heat generation costs consist of both fixed and variable costs. The fixed costs depend mainly on the investment in the appliance needed for the fuel used, the expected lifetime of the appliance and the interest rate of the investment. The variable costs are dominated by the fuel price. Diagrams 3 and 4 present comparisons of the prices of different energy carriers for industrial and residential use respectively. All prices include all taxes involved and show the actual price per MWh for the specific energy carriers from 1970 to 1999. 6.3.2 Industrial market The four least expensive energy carriers in the industrial market are all solid fuels, of which the three least expensive are biofuels (Diagram 3). The incineration facilities, fuel storages, transports etc. for solid fuels are generally more complicated than those for liquid or gaseous fuels, leading to relatively higher investment costs. In short, the smoother the heating operation for the customer is, the more expensive the energy carrier is. Actual industrial energy prices in Sweden 1970-1999, SEK/MWh 1998 1996 1994 1992 1990 1988 1986 1984 1982 1980 1978 1976 1974 1972 400 350 300 250 200 150 100 50 0 1970 SEK/MWh Diagram 3. Year Medium-Heavy Fuel Oil, Eo4 Coal Sod Peat Densified Biomass Fuels Forest Fuels Industrial electricity Sources: Swedish National Energy Administration, 2000; Swedish National Energy Administration 1995-2000. 38 6.3.3 Residential market The absolutely most expensive energy carrier in the residential market is electric heating (Diagram 4). The electricity price has had a drastically rising development and between 1988 and 1998 the actual price rose from 352 to 752 SEK/MWh, which corresponds to an increase of 114 %. This was partly caused by the doubling of the energy tax rate on electricity from 20.4 to 40.2 % during the same period. District heating is the second most expensive alternative, followed closely by natural gas. Diagram 4. Actual residential energy prices in Sweden 1970-1999, SEK/MWh 800 700 SEK/MWh 600 500 400 300 200 100 1998 1996 1994 1992 1990 1988 1986 1984 1982 1980 1978 1976 1974 1972 1970 0 Year Electric Heating Gas Oil, Eo1 Sources: District Heating Pellets Natural Gas Swedish National Energy Administration, 2000; Swedish National Energy Administration 19952000; Vinterbäck, 2000 b. It is worth noting that the price increase of oil and the price decrease of pellets in 2000 again made pellet heating a preferred choice in the residential sector. 39 7 Overview of the state of DBF production and use 7.1 Swedish producers of DBFs In Figure 26 the major Swedish DBF producers are mapped out, and in Figure 27 their respective production capacities and product mixes are shown. There is an obvious concentration of production capacity to the county of Småland in the south and to the coast of northern Sweden. This corresponds well to the location of the Swedish sawmilling industry. The production of wood powder is concentrated to the southern part with three production plants in Småland, one in Västergötland and one in Norberg. Figure 26. Major Swedish producers of briquettes, pellets and wood powder Source: Bergström et al. (2002) 40 Figure 27. Production mix and capacities in the Swedish DBF industry Source: Bergström et al. (2002) 41 7.2 Swedish producers of appliances 7.2.1 Burning appliances In Sweden the average lifetime of small-scale furnaces or boilers are several decades. The medium change-out time for Swedish furnaces is 28 years (Vinterbäck, 2001 b). Therefore investments in new pellet furnaces do not occur very often. Instead it is usual to retrofit the Table 16. List of Swedish producers of DBF combustion units Company Altbergs Plåt AB Ardeo Janfire BAXI AB CP Energi AB Energiteknik AB Focus Värme AB Place Edsbyn Åmål Falköping Örnsköldsvik Skelleftehamn Partille HOTAB Eldningsteknik IWABO Naturenergi AB Järnforsen Energi System AB NIBE AB NT Energi Pelletsbrännaren Junsele AB Halmstad Kilafors Pellet boilers From pellet burners 100kW to heating centrals 15 MW Combustion equipment Halmstad Markaryd Mullsjö Combustion equipment Burners, stoves and boilers Pellet burners Junsele Petrokraft AB ROTURO AB Ruby Tech Göteborg Rimbo Harmånger Pellet burners Conversion of existing oil furnaces, Delivers complete plants Sahlins EcoTec AB Skene Scand-Pellet AB Sonnys Maskiner AB Stensbro Flis HB Kalmar Grästorp Huaröd Stocksbroverken AB Svemo Elektronik AB Svenska Neuero Swebo Flis & Energi AB Teem Bioenergi AB Tellus Rör, Svets & Smide AB Thermia Värme AB VEÅ AB Zander & Ingeström Värmeteknik AB Stora Skedvi Falun Kävlinge Boden Ulricehamn Source: Vinterbäck, 2001 a. 42 Oskarshamn Arvika Sävsjö Solna Products Pellet burners Pellet burners Pellet heaters, Pellet burners 15-40kW Pellet furnaces Burners 15, 20, 25 30-50, 60-75, 80-140, 150-300kW, Stove 7kW Burner10-20 & 25-50kW, Pellet stove 3-6kW Combi heater for pellets & sun 20kW, EP-burner 22kW Pellet furnaces Pellet heaters 15, 25 & 45 kW, Stoves 8 & 9 kW Pellet burners Combustion equipment old oil furnace with a new pellet burner when converting from fossil fuels to DBFs. This way, the size of the investment is kept down. There are about 30 Swedish companies involved in the production of combustion units designed for DBFs (Table 16). Often these companies have started out as small welding companies that have put a focus on combustion equipment. Larger companies in the burning appliances sector have later bought up some of the innovative producers of DBF combustion equipment, and thereby stepped into the market segment of biofuels or DBFs. Their products are e.g. pellet stoves, pellet burners, pellet furnaces and complete large-scale heating plants for biofuels. 7.2.2 Fuel production appliances In Table 17 companies that produce DBF production appliances in Sweden are listed. They produce e.g. briquette presses, screw feeders and storage silos. Table 17. List of Swedish producers of appliances for production, storage and distribution of DBFs Producers of production appliances. BOGMA AB Maskin System AB RL Värme Place Ulricehamn Tenhult Karlstad Producers of storage- & distribution appliances Alf Bjurenwall AB Bissy Försäljnings AB KLM Energi & Mekanik KMW Energi Mafa i Ängelholm AB Saxlund International AB Ånga Värme & Stokers i Halmstad AB Place Kolbäck Piteå Norrtälje Norrtälje Ängelholm Västerhaninge Halmstad Source: Vinterbäck, 2001 a. Sellbergs have developed a Swedish system for pelletising municipal solid waste (http://www.sellbergs.se/brini/brinisvensk/svenskindex.html, 2002). The producers of pellet mills generally have the animal fodder industry as their main market segment. 43 7.3 Quantity of DBFs produced The Swedish production of upgraded biofuels, i.e. DBFs and wood powder, started in a first wave in the beginning of the 1980s. The drastic fall of international oil prices in 1986 meant that most producers went out of the market. A second wave came in the beginning of the 1990s and Sweden has had an almost linear increasing trend during the last eight years as seen in Diagram 5. This trend, however, was broken by an eight percent decrease in year 2000. One contributing reason for this is that 2000 had a warmer than average temperature (www.smhi.se, 2002). Another possible reason is that imports of DBFs might have increased in relation to domestic production. The 4.2 TWh of DBFs produced in year 2000 consisted of 2.6 TWh of pellets, 0.9 TWh of briquettes and 0.7 TWh of wood powder (Hogfors, 2001). Diagram 5. Production of upgraded biofuels for commercial sale in Sweden 1993-2000, TWh 5 4 3 TWh 2 1 0 1993 1994 1995 1996 1997 1998 1999 2000 year Source: Hogfors, 2001. Most of the major Swedish pellet producers are members of the Swedish Pellet Producers Association (PiR). In year 2001 these members had a total production of 714 000 tonnes of pellets (Lagergren, 2002). Therefore the total Swedish production of pellets in 2001 can be estimated to about 800 000 tonnes (Vinterbäck, 2002). According to Vinterbäck (2001 b) the most serious threat to domestic DBF production in later years has been the increasing low cost imports, but also the latent interest of the government in putting a fiscal tax on biofuels that from now and then manifests itself in official government reports. 44 8 DBF trade flows of today 8.1 Trade patterns In 2000 approximately one third of the pellet consumption in Sweden originated from foreign countries according to industry representatives. Already in 1997, wood pellets represented the second most traded biofuel assortment with 1.2 TWh or 18 % of the total import of biofuels (Vinterbäck, 2000 b). The European population is concentrated to the central, south and western parts while the largest forest resources can be found in the north. This situation has resulted in flows of wood and wood-based products from the north to the central/south/west. The latter part, consequently, produces most of the recycled material. Germany is a leading nation in material recycling. It has an estimated annual flow of recycled wood fibre of 15 million tonnes (55.6 TWh) (Lang, 1998). Besides wood-fuels such as bark, green chips, dry chips, forestry residues and densified biomass fuels there are also a wide range of other materials competing on the same market. Municipal waste and fuel mixtures from wood and various recycled waste materials are examples of fuel materials of low costs. Many densely populated countries, e.g. Germany and the Netherlands, have on a national level problems getting rid of materials that can not be recycled, because of the scarcity of suitable land for landfilling sites.The lowest qualities of e.g. recycled wood-fuels like railway sleepers and demolition wood are not suitable for recycling in, e.g., the board industry. Therefore the recycling industry must either pay landfill fees or incineration fees to get rid of these low quality materials in the country. The option of exporting these materials becomes interesting as, e.g., the Swedish market has incineration capacity for these types of fuels and also a functioning fuel market for these fuel qualities with higher energy prices and therefore is open for imports of these competitive fuels (Vinterbäck & Hillring, 2000). Preparations for changes towards a common energy policy have started in the European Union. This is stated in the White Paper (European Commission, 1997) and the aim is to increase the use of renewable energy sources at the expense of fossil fuels. The overall target is to double the share of renewables in the EU energy supply up to 12 % by the year 2010. Biofuels utilisation is one feasible means in reaching this target. In 1997 the aggregate EU bioenergy use was 522 TWh. The total national energy demand in some European countries, e.g. Sweden, Finland and Austria, is covered up to 17 % of woodfuels (European Commission, 1997). The large-scale use of wood-fuels in these countries depends on the relatively higher end prices of other energy carriers such as coal and oil. One way for the authorities to obtain a higher national demand for biofuels is to impose a CO2-tax on fossil fuels (see also Swedish National Energy Agency, 1995-2001). Most of the Swedish imports of DBFs and other wood-fuels are transported in bulk by marine vessels, often in return-cargo systems, which allow transports over long distances at low prices. Some heating plants are situated by the coast and have their own harbours whilst others need trans-shipping by trucks for road transportation. This logistic dependence on marine freights will give split national markets: coastal markets and inland markets (Roos et al., 2000). 45 According to EU regulations (EEG No 259/93), waste is classified into three different categories depending on degree of purity and toxicity: green, yellow and red. Green is for pure wood-, paper- or plastic waste, yellow is for treated or mixed waste and red is for toxic waste contaminated with e.g. mercury or PCB. About 50 000 tonnes of demolition wood classified as yellow was imported to Sweden in 1997 (Swedish Environmental Protection Agency, 1999). According to the Swedish National Energy Agency (1998) the total Swedish consumption of wood-fuels in 1997 was approximately 47 TWh. About 14 TWh of biofuels were used in the district heating sector. The growth rate for wood-fuels during the last decade has been close to 15 % per year. For heat production in district heating a base-load of fossil fuels is currently not competitive because of the high taxes on these. On the other hand on the same market wood-fuels compete with other biofuels like peat. In 2000 the Swedish district-heating sector used 14.7 TWh of biofuels, of which 3.2 TWh were upgraded wood-fuels (DBFs and wood powder) (Hogfors, 2001). Some 80 companies supplied 230 medium- and large-scale community and industrial heating plants, block centrals etc. with 21 TWh of wood-fuels in 1997 (sawmill boilers not included) (Vinterbäck & Hillring, 2000). In 2000 the same customers used 4.4 TWh of upgraded woodfuels (Hogfors, 2001). 8.2 Imports In a questionnaire survey to 51 members of the Swedish District Heating Association, that each consumed more than 100 GWh of untaxed biofuels per year, the following results were gathered with a response frequency of 78 % (Vinterbäck & Hillring, 2000). In the year of 1997, 42 % of the consumers imported biofuels by themselves, whilst another 15 % imported biofuels through agents. It was also found that 85 % of the fuel dealing companies were importers. These imports came in decreasing order from the Baltic States, Germany, the Netherlands, Denmark, Finland, Norway, Canada, England and Scotland. This situation has come about as a result of control measures on waste and energy. Fuel imports are,e.g., used by the large heating plants as a strategic means to keep local biofuel prices down (Vinterbäck & Hillring, 2000). Table 18. Imports of untaxed fuels (biofuels) to Sweden 1992, 1995 & 1997 Year Biofuels (TWh) Approximate share of wood-fuels (%) 1992a 0.6-1.1 20 (estimated figure) 1995b 3,1-4,2 33-45 1997c 5,6-8,9 44-62 Sources: aNUTEK (1993), Statistics Sweden (1998); bVinterbäck (1996); cVinterbäck & Hillring (2000). Biofuel imports to Sweden have grown steadily during the 1990s as can be seen in Table 18. Also the share of wood-fuels in the imports has been rising. New burning capacities for solid biofuels are under way in the major exporting countries and this may cause the development to level out over the coming years. (Vinterbäck & Hillring, 2000) In 1997 tall oil represented the largest imported assortment with about 2.4 TWh. Tall oil is a residual product from the distillation of crude tall oil at sulphate pulp mills. Tall oils can without expensive retrofit of burners be substitutes for heavy furnace oil. 46 Wood pellets represented the second largest imported assortment with about 1.2 TWh. Contrary to other solid biofuel materials, wood pellet trade is intercontinental. The main countries involved in exporting DBFs to Sweden are Canada, the USA, Chile, the Netherlands, Finland, Norway, Estonia, Latvia and Poland. Helsingborg Energi, who owns a major CHP plant in southern Sweden has invested in a wood pellet production plant in Nova Scotia, Canada. About 100 000 tonnes of pellets per year are shipped in loose bulk to Helsingborg. The considerably lower raw material price in Canada was the reason for this investment (Vinterbäck & Hillring, 2000). Another company, SBE – which is a major Swedish producer of upgraded biofuels (see Figure 26) – has invested in production facilities in Estonia and Latvia, primarily for exports. Also in Finland the production plants for pellets are up to now focused on exports, primarily to Denmark and Sweden. The Nordic Sea/Baltic Sea has turned into an integrated market for wood pellet fuel (Vinterbäck & Hillring, 2000). Multinational oil companies have started to show interest in the densified wood-fuels sector. Norwegian Statoil is marketing wood pellets in Sweden and has decided to invest in briquette production in Norway and possibly even wood pellet production in Russia. Shell International owns a Danish wood pellet plant (Vinterbäck & Hillring, 2000). 8.3 Exports Today Swedish pellets are exported to Denmark, but also Austria has previously imported Swedish pellets (Vinterbäck & Hillring, 2000) and in the autumn of 2001, American companies have made inquiries of the possibilities of pellet imports from Sweden (Vinterbäck, 2001 b). According to Bengtsson (2001), there are plans for the heating plant of Amager in Copenhagen in Denmark to convert from coal to pellets. This would mean an extra demand of about 200 000 tonnes of pellets. Bengtsson also states that there are discussions about the possibility of the new plant of Avedöre to use pellets instead of natural gas. This would mean an extra 400 000 tonnes. An increased Danish pellet demand will affect the trade flows and possibly result in an increased pellet export from Sweden. 47 9 Environmental impact of DBFs Life Cycle Assessment (LCA) is a tool developed for analysing an activity or a product from an environmental point of view over a whole life cycle. This method is technically oriented and all emissions are quantified in relation to a common base, called a functional unit, which should describe the product. In the case of heat production this functional unit often is 1 MWh of delivered heat (Forsberg, 1999a). A number of LCAs have been made on densified biomass fuels in Sweden (e.g. Forsberg, 1999b & Arvidsson, 1997). A new LCA for wood pellets is currently being made by the forest research institute Skogforsk in Uppsala and is planned to be finished in 2002. Arvidsson (1997) has performed an LCA on company-level for the Swedish DBF producer SBE (Svensk Brikettenergi) a company that has seven production plants in Sweden and one in Latvia and produces all three fuel assortments pellets, briquettes and wood powder. This LCA incorporates one resource analysis and one emissions analysis. The resource analysis shows how much raw material and energy that is needed for the fuel production. In Table 19 the amounts of input needed for the production of 1 MWh of densified biomass fuels are shown. In this case the fuel for the dryer (see Table 19) is a biofuel, which results in a non-bioenergy input of just 3.8 % of the total energy input. According to Arvidsson (1997), the transport item incorporates both transports of fuel for the dryer and raw material to the plant as well as transport of finished goods to the customer. Table 19. Raw material and energy input required for the production of the equivalent of 1 MWh of DBF Amount [kWh] 1 010 110 21 16 5.0 2.3 0.06 1 163 Raw material Fuel for the dryer Electricity Transports Binding agents Fuel for loaders Waste oil Sum: Source: Arvidsson (1997) In the emissions analysis the emissions of CO, CO2, HC, NOX, SO2 and particles from combustion of fuel for the dryer and from the transports were studied (see Table 20). Table 20. Emissions to the air from transports Compound CO2 NOX CO HC particles SO2 Source: Arvidsson (1997) 48 g/MWh of finished DBF 3 800 45 13.6 2.7 1.3 0.6 Some ashes are discharged to the sewage water, but these have not been considered in this LCA. Difficulties in determining, e.g., the moisture content of the fuel for the dryer, the transport distances, the fuel consumption of a truck and the change of quantity of stored material during the test period might have influenced the results of the LCA, according to Arvidsson (1997). Arvidsson furthermore states that this gives a maximum possible divergence from the results presented above of 2-3 %. Another LCA made by Forsberg (1999b) deals with electricity production from pellets, with forestry residues packed in bales as the raw material (Figure 28). This method was introduced some years ago, but the four baling machines that were in use are today taken out of production. This system did not prove economical in forestry operations, but is today used in packaging of waste materials instead. There is, however, a similar system in use, called bundling, in which forestry residues are packed in log-like packages for further transport with common timber trucks. These "logs" have a length of about three meters with a diameter of 0.75 meters and a weight of 400-600 kg. They carry an energy content of somewhat more than 1 MWh each (Davner, 2002). Results from the above mentioned LCA are presented in Table 21. Table 21. Mass balance for producing 1 MWh of electricity from pellets with baled forestry residues as raw material Operation Forwarding forestry residues Storing in pile Baling of residues Forwarding of bales Storage at roadside Loading truck Truck transport Terminal storage Crushing Milling Drying Pelletisation Tractor handling and loading Shipping pellets Storing pellets Combustion of pellets Ash transportation Efficiency 0.98 0.85 0.98 1 0.98 1 1 1 1 1 1 1 1 1 1 0.38a mass [tonnes] (mc=10%) 0.563 mass [tonnes] (dry matter) 0.634 0.621 0.528 0.517 0.517 0.507 0.507 0.507 0.507 0.507 0.507 0.507 0.507 0.507 0.507 0.507 Notes: a) Electrical efficiency only Source: Forsberg (1999b) In Table 21 each elementary operation in the process has a certain efficiency factor describing the loss in each link of the chain. In the second last operation we see that 563 kg of pellets with a moisture content of 10 %, corresponding to 507 kg of dry matter, is needed for the production of 1 MWh of electricity (Forsberg, 1999b). Going back along the chain of operations we see that this amount corresponds to 634 kg of dry matter, which equals 1 153 kg of forestry residues, with a moisture content of 45 %, in the forest. 49 Figure 28. The process tree of a biomass energy transportation system based on pellets with baled forestry residues as raw material Forest Fuel Emissions Harvesting Logging residues Fuel Timber, pulpwood Forwarding Storing off road Fuel Baling Storing off road Fuel Forwarding Storing at roadside Fuel Road transportation Terminal storage Crushing Electricity Energy Grinding Drying Electricity Fuel Pelletising Tractor Ship loading Fuel Shipping Unloading Storing Combustion Electricity Ash storage Ash recirculation 50 Heat Source: Forsberg (1999b) In Table 22 the total environmental impact of different possible fuels that can be used in a heating plant of 50-300 MW, with flue gas cleaning equipment corresponding to the Swedish average, can be compared. The whole lifecycle - from raw material extraction to combustion is taken into account. Also the estimated efficiencies and prices per produced MJ are shown. These data are based on different LCAs performed in seven different studies between 1995 and 1998 (Uppenberg et al., 1999). Since the incineration facilities for natural gas and solid fuels (except for coal) are assumed to use flue gas condensation equipment, their efficiencies exceed 100 %. This sort of equipment can be used when burning fuels with high moisture content, as e.g. peat, waste and wood fuels, or high hydrogen content, as e.g. natural gas. During combustion the moisture and hydrogen form vapourised water which contains heat energy. This heat energy can be utilised by condensating the flue gas, which means that it is possible to increase the heat delivery of the heating plant without increasing the amount of fuel used and thereby increasing the efficiency. The investment costs for different fuels vary and they are not taken into account here (Uppenberg et al., 1999). According to Uppenberg et al. (1999) there are some differences in system boundaries for the LCA on DBFs used in Table 22 compared to the other fuels, which result in some underestimations in the data for DBFs. Table 22. Total environmental impact per MJ of produced heat in a heating plant Natural Forestry Coal Fuel oil LPG gas Peat Waste Salix Residues DBFs Energy used [MJ] Emissions to air [mg]: 0.05 0.05 0.02 - 0.01 0.05 0.04 - NOX 78 130 92 64 83 56 80 93 62 SOX CO NMVOC 79 46 2.3 210 19 47 18 13 35 0.22 12 2.8 144 94 9.4 56 28 1.5 40 290 21 40 300 23 40 290 19 2 800 420 CO2 N2O 106 000 87 000 75 000 58 000 98 000 23 000 3 100 13 0.58 0.55 0.53 9.3 3.8 4.7 4.7 4.7 CH4 Particles 1 200 29 2.9 0.40 2.3 1.1 2.8 0.02 -170 - 1.2 4.7 2.5 4.7 3.7 5.2 0.94 NH3 Residues [mg] Efficiency Prices [SEK/MJ]: Fuel price Tax Total price 1.9 0.89 0.66 12 0.91 0 0.91 0 20 1.04 1.1 1.06 2.4 1 600 1.06 2.4 1.06 0.016 0.057 0.073 0.038 0.056 0.094 0.055 0.030 0.085 0.031 0.008 0.039 0.027 0.004 0.031 0.030 0 0.030 0.043 0 0.043 2.8 3.0 14 000 1 600 1.06 1.06 * * * - "-" means that information is missing. "*" means that a market price does not exist. Source: Uppenberg et al. (1999) 51 The total environmental impact of heat production in small-scale residential incineration facilities is shown in Table 23. These data are based on different LCAs performed by three different parts between 1995 and 1998. The whole lifecycle is considered and the efficiencies are average values for new small-scale heaters (Uppenberg et al., 1999). Table 23. Total environmental impact per MJ of produced heat in small-scale residential incineration facilities Gas oil, Eo1 Natural gas Wood fuel DBFs 0.06 0.02 0.05 - NOX 106 29 180 150 SOX 45 0.23 53 57 CO 38 13 2 500 2700A NMVOC 54 3.0 1 300 1300A CO2 92 000 62 000 3 800 590 N2O 0.62 0.57 1.3 1.3 CH4 3.7 3.0 190 200A Particles 0.42 0.02 4.9 1.3 NH3 0.12 0 2.5 2.7 Efficiency 0.85 0.98 0.8 0.75 Fuel price 6.4 6.3 4.4 10.8 Tax 7.3 4.9 0 0 13.7 11.2 4.4 10.8 Energy used [MJ] Emissions to air [mg]: Prices [SEK/MJ]: Total price Note: A : Source: The emissions data for DBFs are taken from wood burning. Combustion of DBF leads to significantly lower emissions of CO, NMVOC and CH4, possibly less than half of the amount accounted for here. This is due to a more complete combustion in comparison with wood. "-" means that information is missing. Uppenberg et al. (1999) Many of the nutrients that have been harvested in the forest are to be found in the ashes of DBFs. These nutrients would eventually have ended up in the ground through decomposition. Therefore, to minimise the negative environmental effects of DBF use, these ashes should be brought back to the forest. To make the ashes less reactive it is important to harden them to granules that take several years to dissolve on the forest floor. This is positive for the ecosystem, which could otherwise be shocked by suddenly changed chemical conditions in the ground (Cederberg et al., 2001). The ashes can be contaminated with heavy metals, which could be the case when co-burning pure wood with e.g. recycled wood, waste or coal. Short rotation coppice tend to take up zinc and cadmium from the ground, and when incinerated these heavy metals become accumulated in the ashes. Such heavy metal rich ashes should not be spread in the forest (Uppenberg et al., 2001). 52 According to Cederberg et al. (2001) methods for refinement of ashes are today being developed. This means that, e.g. the contents of cadmium and lead are decreased in connection with hardening the ashes. If these methods prove to be economical, there is reason to expect that larger proportions of ashes can be recycled in the future. As a result of the nuclear accident in Tjernobyl in 1986, the ashes from wood harvested in parts of the counties of Uppland and Gästrikland and also the middle part of northern Sweden contain an accumulation of cesium 137. This leads to an area of about six to seven percent of the Swedish forests that could give ashes with a Cs-activity exceeding 5 000 Bq/kg ashes, which is the upper limit for ash recycling (Cederberg et al., 2001). 53 10 Discussion The Swedish consumption of refined biofuels in 1999 reached 4.9 TWh, but the potential in domestic by-products from the wood processing industry, raw chips and bark excluded, reached 9.7 TWh. In the future even other assortments such as trees from thinnings, forestry residues, bark, raw chips or recycled wood might become profitable to use as raw material, either because of increased prices or because of improved separation technology. Today the raw material used in Sweden is totally dominated by spruce and pine, but in the future mainly birch seems to be a realistic complement because of its relatively good availability and high energy content. In southern Sweden beech and oak can become complements. Although straw and Reed Canary Grass have low energy contents, they seem to be good alternatives to planting spruce on agricultural land taken out of use, especially in southern Sweden, partly because they do not change the view of the landscape. Bark contains a larger proportion of many of the chemical elements that are found in biomass, compared to pure wood. Therefore it is preferred that bark is burnt in large heating plants, while these usually have better flue gas cleaning. The ash content of bark is also relatively higher, which gives reason to more disturbances in small-scale heaters, where reliability is one of the most important factors. In the small-scale target market segment, the two densified biomass fuels - pellets and briquettes - do not cannibalise on each other. In fact they gain market shares from different segments of the heating market. Pellets are preferred by customers used to heating with oil as fuel. Smooth running of the appliance then has a high priority. Briquettes on the other hand are more labour intensive compared to oil, but less labour intensive compared to wood logs. No conversion is needed from wood log burning to briquette burning. This implies that briquettes compete mostly with other biofuels and not to the same extent with fossil fuels in the residential market. It might seem odd that there is no third part control of pellet- and briquette producers that are producing within the standards set by the Swedish Standards Association. The hope is set to that the market itself may act as a smooth and cost efficient means of controlling the product quality. Problems might arise when it comes to the fine fraction share, because there is at this time no consistent testing method in use. The development of the Swedish biofuels sector in general, and densified biofuels sector in particular, has been successful and today Sweden is considered as one of the leading biofuel using nations. There are about 30 larger production plants for densified biofuels in Sweden and the national consumption in 1999 reached approximately 4.9 TWh. Three factors seem to have contributed to this position: a good availability of wood raw material, a taxing system which discriminates fossil fuels, and well extended district heating. While the Swedish fossil fuel taxes have pushed the fossil fuel prices up, the real prices for densified biofuels, which are tax exempted, have been stagnant for the last five years. The strongly increased demand for biofuels has been met by a likewise strongly increased supply. This comes mainly from large quantities of imported pellets from especially Finland, the Baltic States and Canada. In fact approximately every third consumed pellet in Sweden was at 54 one stage an imported one. According to industrial representatives the imports decreased significantly during 2001. Let us assume that in the long term the domestic demand for biofuels in Canada, Finland and the Baltic States will increase and that their exports to Sweden therefore diminishes. Let us also assume that in the long term the fossil fuel taxes increase in Sweden as a means for the government to lower the emissions of carbon dioxide. Then we have a situation where the increasing demand will push the prices for DBFs upwards and where new technologies might develop and new sources of raw material might be profitable to use. It would then be more interesting to use harvesting residues such as branches and tops, or perhaps even wood from thinnings, for pelletisation or briquetting. This increased supply could thereby stabilise the price level at a higher level than today, but still competitive to fossil fuels. There are good reasons to believe that the market for biofuels will increase in the long term. Even in the political perspective the use of biofuels seems efficient: • It helps reaching the international agreements of lowering carbon dioxide emissions • It decreases the national dependence on imported energy sources • It creates domestic jobs, often in geographical areas where jobs are scarce • In the end it gives a higher value to the national forests • It is in line with the recommendations of increasing the usage of biofuels by the EU and national authorities There has been a clear trend of linear increase of the production of densified biofuels in Sweden. It remains to be detected whether the decrease of DBF production in 2000 was a coincidence. During 2000, the heating plant of Västerås, i.e. one of the two major remaining coal consuming heating plants in Sweden, started converting to pellets. This should affect the pellet market in the future and the production statistics (Vinterbäck, 2001b). The trend for the sales of small-scale pellet appliances currently seems to be exponential. This should also contribute to an increased DBF demand. 55 11 References 11.1 Articles/Books/Reports Arvidsson, A. M. 1997. Bioenergins material- och energibalans. Cited in Bioenergi no. 1. Stockholm: SVEBIO (in Swedish) Bengtsson, S. 2001. Pellets på frammarsch. Energimagasinet nr 1, 2001. (in Swedish) Bergström, A., Boberg, J. & Dyberg, Å. 2002. Lokalisering av producenter av träbriketter, träpellets och vedpulver i Sverige. Projektarbete GIS-kurs. Uppsala: SLU, Institutionen för skogshushållning. (in Swedish) Mimeo Bodlund, B & Herland, E. 1991. Alkali och klor i biomassa – ett problem vid elgenerering, 1991/40. Vattenfall Bioenergi & LRF. Älvkarleby: Dokumentationscentralen Vattenfall. (in Swedish) Burvall, J. & Hedman, B. 1994. Bränslekaraktärisering av rörflen – resultat från första och andra års vallar. Rapport 5. Umeå: SLU, Institutionen för Norrländsk jordbruksvetenskap. (in Swedish) Cederberg, B., Dahlberg, A., Egnell, G., Ehnström, B., Hallingbäck, T., Ingelög, T., Kjellin, P., Lennartsson, T., Lönnell, N., Schroeder, M., Thor, G., Thuresson, T., Tjernberg, M., Weslien, J. & Westling, O. 2001. Skogsbränsle, hot eller möjlighet? – vägledning till miljövänligt skogsbränsleuttag. Jönköping: Skogsstyrelsens förlag (in Swedish) Danielsson, B. 1999. En marknadsgenomgång från SPG. Folder 10 in Pellets 99. SVEBIO. (in Swedish) Davner, L. 2002. Buntning på reträtt. Skogen, no. 1. Stockholm: Danagårds Grafiska. (in Swedish) Drakenberg, B. 1994. Trä och trädbiologi. Saltsjö-Boo. SLU, Institutionen för Skoglig Vegetationsekologi. (in Swedish) Ek, B. 2001. Ingen virkesbrist. Skogen, no. 8. Stockholm: Danagårds Grafiska. (in Swedish) European Commission. 1997. Communication from the commission. Energy for the future: Renewable sources of energy. White paper for a Community Strategy and Action plan. Com (97) 599 final (26/11/1997). Forsberg, G. 1995. Bioenergitillgångar i Värmland. Länsstyrelsens rapport nr 3. Karlstad: Regionalekonomiska enheten. (in Swedish) Forsberg, G. 1999a. Assessment of Bioenergy Systems, an integrating study of two methods. Doctoral thesis. Silvestria. Uppsala: SLU. Forsberg, G. 1999b. Bioenergy Transport Systems, Life Cycle Assessment of Selected Bioenergy Systems. Report No 5. SLU, Department of Forest Management and Products. Uppsala. 56 Gärdenäs, S. 1986. Eldning av lagrade bränslen på rörlig snedrost: hyggesrester, ekflis. Uppsala. Hadders, G. & Forsberg, G. 1996. Pelletspärmen. Uppsala: Swedish Institute of Agricultural Engineering. Hadders, G. & Olsson, R. 1996. European Energy Crops Overview – Country Report for Sweden. Uppsala: European Commission – Directorate General XII – Science, Research and Development – Agro Industrial Research (FAIR). JTI. SLU. Hakkila, P. 1989. Utilization of Residual Forest biomass. Berlin, Heidelberg. Hamilton, H. (ed.) 1986. Praktisk skogshandbok, 12 ed. p.349. Djursholm: Sveriges skogsvårdsförbund. Hektor, B., Lönner, G. & Parikka, M. 1995. Trädbränslepotential i Sverige på 2000-talet - Ett uppdrag för Energikommissionen. SLU, Inst. för skog-industri-marknad studier (SIMS). Utredning 17. Uppsala. Hillring, B. & Vinterbäck J. 1998. Wood pellets in the Swedish residential market. Forest Products Journal, Vol. 48, no:5. Hirsmark, J. 2001. Results from questionnaire survey to Swedish DBF producers: Mimeo. Uppsala: SLU; Department of Forest Management and Products. Hogfors, S. 2001. Sammanställning av produktion och utleveranser av svenskt trädbränsle 2000, GWh. Swedish Wood Fuel Producers Association. Stockholm. Mimeo. Lagergren, F. 2002. Production statistics for members of the Swedish Pellet Producers Association (PiR). SVEBIO: Stockholm. Mimeo. Lang, A. 1998. Legislation and its Effects on Wood Recycling and Energy – Some Aspects of the German Situation. In: Biomass Energy: Data, Analysis and Trends. IEA Workshop Proceedings. 3-6 November 1998. UN/ECE, Timber Committee. Ministry of Forestry, Istanbul, Turkey. pp. 45-52. Lehtikangas, P. 1998. Lagringshandbok för Trädbränslen. Uppsala: SLU, Institutionen för Virkeslära, (in Swedish). Ljungblom, L. 1998. Södra Mönsterås i stark utveckling. Bioenergi, no. 3. Stockholm: Novator/SveBio (in Swedish) MacMahon, M. J. & Payne J. D. 1982. Holmens pelleteringshandbok. Holmen Chemicals Limited. Mared, J.1998. Förädlade trädbränslen – briketter, pellets och pulver – ett sammandrag. (From a speech in Falun, in Swedish). 57 Marks, J. 1990. Wood Powder - An upgraded wood fuel. SLU, Department of Operational Efficiency, Research Notes No. 182. Garpenberg. National Board of Forestry. 2000. Skogsstatistisk årsbok 2000. The annual Statistical Yearbook of Forestry. Jönköping. Nilsson, C. et. al. 1998. Att elda med halm, Aktuellt från Lantbruksuniversitetet 364. Teknik. Uppsala:SLU. Nilsson, K. 1996. Sammanställning av bränsledata för salix och skogsbränslen. Nilsson, P-O. & Lönner, G. 1999. Energi från skogen. SLU Kontakt 9. Uppsala. NUTEK. 1993. Forecast for biofuel trade in Europe – The Swedish market in 2000. B 1993:10. Stockholm: Swedish National Board for Industrial and Technical Development. Obernberger, I. & Thek, G., 2001. An Integrated European Market for Densified Biomass Fuels (INDEBIF). ALTENER PROJECT AL/98/520. Country Report Austria (Draft Report Confidential). Institute of Chemical Engineering, Fundamentals and Plant Engineering, University of Graz. Ohlsson, C. 1997. Förädlade trädbränslen - sortiment och produktionskostnader. SLU:SESAM-uppsats inom tema 7. Uppsala. Roos, A., Bohlin, F., Hektor, B., Hillring, B., & Parikka, M.: 2000. A Geographical Analysis of the Swedish Woodfuel Market. Scand. J. of For. Res. Vol. 15, No 1, pp. 112-118. Samuelsson, S. 2000. Den ultimata guiden till Din rätta pelletsvärme. Bioenergi 5/2000. Stockholm: Bioenergi Förlags AB. Sjöström, E. 1993. Wood chemistry – Fundamentals and Applications, 2nd edition. San Diego: Academic Press, Inc. SS 18 71 20. Swedish Standards Institution, STG. 1998. Biofuels and peat – Fuel pellets – Classification. Stockholm. SS 18 71 21. Swedish Standards Institution, STG. 1998. Biofuels and peat – Fuel briquettes – Classification. Stockholm. Statistics Sweden. 1998. Peat 1996-Resources, Use and Environmental Impact, Na 25 SM 9801. (in Swedish with summary in English) Swedish Environmental Protection Agency. 1999. Imports of waste products to Sweden in 1997. Stockholm. (in Swedish) Swedish National Energy Administration. 1995-2001. Prisblad för biobränslen, torv m.m., No 1/1995 – 4/2001. Stockholm and Eskilstuna. Swedish National Energy Administration. 1998. Energy in Sweden. Facts and Figures 1998 ET 27:1998. Eskilstuna. 58 Swedish National Energy Administration. 1999. Energy in Sweden. Swedish National Energy Administration. 2000. Energy in Sweden, Facts and Figures 2000. Södra Skogsenergi. 1999. Träpellets för ett friskare Sverige. Ronneby. (in Swedish) Uppenberg, S., Almemark, M., Brandel, M., Lindfors, L-G., Marcus, H-O., Stripple, H., Wachtmeister, A., Zetterberg, L. 2001. Miljöfaktabok för bränslen, Del 2. Bakgrundsinformation och Teknisk bilaga. IVL Rapport, Stockholm. (in Swedish) Uppenberg, S., Brandel, M., Lindfors, L-G., Marcus, H-O., Wachtmeister, A., Zetterberg, L. 1999. Miljöfaktabok för bränslen, Del 1. Huvudrapport - Resursförbrukning och emissioner från hela livscykeln. IVL Rapport, Stockholm. (in Swedish) Vinterbäck, J. 1996. Imports of biofuels to Sweden in 1995. Uppsala. SLU, Dept. of ForestIndustry-Market Studies. Mimeo. (in Swedish) Vinterbäck, J. 2000a. Densification of Wood and Bark for Fuel Production - a Story of 150 Years. In: Wood Pellet Use in Sweden: a systems approach to the residential sector. Doctoral thesis. Silvestria 152. Uppsala: SLU, Department of Forest Management and Products. Vinterbäck, J. 2000b. Wood Pellet Use in Sweden, A systems approach to the residential sector, Doctoral thesis. Silvestria 152. Uppsala: SLU, Department of Forest Management and Products. Vinterbäck, J. 2001a. Lista över svenska producenter av förbränningsanläggningar, distributions- och lagringsutrustning samt produktionsutrustning. Uppsala: SLU, Department of Forest Management and Products. Mimeo. (in Swedish) Vinterbäck, J. & Hillring, B. 2000. Development of European Wood-Fuel Trade. Holzforschung & Holzverwertung – Vol. 52, No. 6. pp. 114-118. Warensjö, M. 1997. Såg 95, del 1, - (The sawmilling industry 1995, Part 1 – Production and timber requirement). Uppsala: Department of Forest Products. Report no 521. Westholm, E. 1986. Förädling av biobränslen - En fallstudie av hur ny energiteknik etableras. DFR-rapport 1986:11. Dalarnas forskningsråd. Zakrisson, M. 2002. Internationell jämförelse av produktionskostnader vid pelletstillverkning. Uppsala: SLU; Department of Forest Management and Products. 11.2 Personal communications Rosander, L. 2001. Staff manager. AB Gustaf Kähr. Vinterbäck, J. 2002. Researcher. Swedish University of Agricultural Sciences: Department of Forest Management and Products. 59 Vinterbäck, J. 2002. Researcher. Swedish University of Agricultural Sciences: Department of Forest Management and Products. 11.3 Webpages www.bogma.com .2001-12-19.Bogma AB. www.cpenergi.se .2001-08-30. CP Energi AB. www.ecotec.net .2001-08-30. Sahlins Ecotec AB. www.emmaboda.se/ENERGI/nya.htm .2001-09-03. Emmaboda Energi AB. www.energy.rochester.edu/se/stockholm/heatsupply.htm .2001-09-03. District Energy, World-Wide Guide. www.pellx.nu .2001-08-30. Scand-Pellet AB. www.smhi.se .2002-01-10. Sveriges Meteorologiska och Hydrologiska Institut, SMHI. www.sellbergs.se/brini/brinisvensk/svenskindex.html . 2002-03-24. SITA Sverige AB. www.svebio.se .2002-08-30. Svenska Bioenergiföreningen, SVEBIO. www.teembioenergi.se .2001-08-30. Tx Teem Bioenergi AB. Appendices 1 = Swedish Standards for pellets 2 = Swedish Standards for briquettes 3 = Questionnaire to DBF producers 60 Appendix 1 BIOFUELS AND PEAT Swedish Standard SS 18 71 20 SS 18 71 20 Fuel Pellets - Classification Contents - Background 1. Scope 2. References 3. Specifications 4. Literature Background Fuel pellets are usually produced by milling and pressing slurry (logging residues, clear-cutting residues), by-products from forestry and timber industries, straw, paper etc. Fuel pellets consist of pressed finely-textured dry material and have a maximum diameter of 25 mm. 1 Scope This Standard describes three classes of fuel pellets. These differ primarily in size and ash content. 2 References SS 18 71 70 Biofuels and Peat - Determination of Total Moisture Content (Issue 3) SS 18 71 71 Biofuels - Determination of Ash Content (Issue 1) SS-ISO 540 Solid Fuels - Mineral Fuels - Determination of Ash Dissolution - Tube Furnace Method (Issue 1) SS 18 71 77 Solid Fuels - Determination of Total Sulphur Using a High Temperature Tube Furnace Combustion Method SS 18 71 78 Biofuels and Peat - Determination of Green Bulk Density and Calculation of Basic Bulk Density (as in Glossary) SS 18 71 80 Biofuels and Peat - Determination of Mechanical Strength of Pellets (Issue 1) SS-ISO 1928 Solid Fuels - Determination of Gross Calorific Value by Bomb Calorimeter and Calculation of Net Calorific Value (Issue 1) SS 18 71 85 Solid Fuels - Determination of Total Chlorine in Solid Fuel and in Solid Waste Products using a Bomb Method (Issue 1) 3 Specifications Specifications for properties and test methods for classification of pellets are given in Appendix A. All values given in the Appendix are binding. 4 Literature SS 18 71 06 Biofuels and Peat - Glossary (Issue 2) SS 18 71 13 Biofuels and Peat - Sampling (Issue 1) SS 18 71 14 Biofuels and Peat - Sample Preparation (Issue 1) SS 18 71 76 Solid Fuels - Determination of Total Sulphur with Eschka and Bomb Washing Method (Issue 1) SS 18 71 84 Biofuels and Peat - Determination of Moisture Content in the Analysis Sample (Issue 1) Appendix A Classification of Fuel Pellets Property Dimensions: diameter and length in producer’s store Bulk density Durability in producer’s store Test Method Unit By measuring at least mm 10 randomly selected fuel pellets SS 18 71 78 SS 18 71 80 Net calorific SS-ISO 1928 value (as delivered) Ash content SS 18 71 71 Total moisture SS 18 71 70 content (as delivered) Total sulphur SS 18 71 77 content Content of additives Chlorides SS 18 71 85 Ash dissolution Group 1 Group 2 Group 3 To be stated as To be stated as To be stated as max 4 times ∅ max 5 times ∅ max 5 times ∅ kg/m3 > 600 Weight of < 0.8 fines < 3 mm, % MJ/kg > 16.9 > 500 < 1.5 > 500 > 1.5 > 16.9 > 15.1 kWh/kg > 4.7 % w/w of < 0.7 DM % w/w < 10 > 4.7 < 1.5 > 4.2 > 1.5 < 10 < 12 % w/w of < 0.08 < 0.08 To be stated. DM % w/w of Content and type to be stated. DM % w/w of < 0.03 < 0.03 To be stated. DM SS 18 71 65 / ISO 540 0C Initial temperature (IT) to be stated. Appendix 2 BIOFUELS AND PEAT Swedish Standard SS 18 71 21 SS 18 71 21 Fuel Briquettes - Classification Contents - Background 1. Scope 2. References 3. Specifications 4. Literature Appendix A (binding) Classification of fuel briquettes Background Fuel briquettes consist of peat, sawdust, chippings and shavings which are the byproduct of sawmill industries, of products from forestry e.g. slurry or shredded thinnings and of agricultural and other biobased fuel materials. The raw material is dried and formed in high pressure briquette presses. 1 Scope This Standard describes two classes of wood fuel briquettes, one group for private consumers (Group 1) and the other for use in large plants with automatic feed (Group 2). A third group based on raw materials other than wood fuel and for any end-user is also described (Group 3). 2 References SS 18 71 70 Biofuels and Peat - Determination of Total Moisture Content (Issue 3) SS 18 71 71 Biofuels - Determination of Ash Content (Issue 1) SS-ISO 540 Solid Fuels - Mineral Fuels - Determination of Ash Dissolution - Tube Furnace Method (Issue 1) SS 18 71 77 Solid Fuels - Determination of Total Sulphur Using a High Temperature Tube Furnace Combustion Method - IR-detector (Issue 1) SS 18 71 78 Biofuels and Peat - Determination of Green Bulk Density and Calculation of Basic Bulk Density in loose material (Issue 1) SS 18 71 80 Biofuels and Peat - Determination of Mechanical Strength in Pellets (Issue 1) SS-ISO 1928 Solid Fuels - Determination of Gross Calorific Value by Bomb Calorimeter and Calculation of Net Calorific Value (Issue 1) SS 18 71 85 Solid Fuels - Determination of Total Chlorine in Solid Fuel and in Solid Waste Products using a Bomb Method (Issue 1) 3 Specifications Specifications for properties and test methods for classification of fuel briquettes are given in Appendix A. All values given in the Appendix are binding and in addition there is a requirement that the briquettes be stored in rain-proof conditions. 4 Literature SS 18 71 06 Biofuels and Peat - Glossary (Issue 2) SS 18 71 13 Biofuels and Peat - Sampling (Issue 1) SS 18 71 14 Biofuels and Peat - Sample Preparation (Issue 1) SS 18 71 76 Solid Fuels - Determination of Total Sulphur with Eschka and Bomb Washing Method (Issue 1) SS 18 71 84 Biofuels and Peat - Determination of Moisture Content in the Analysis Sample (Issue 1) Appendix A Classification of Fuel Briquettes (Binding) Property Diameter in producer’s store Length in producer’s store Bulk density Durability in producers store Test Method Dimension in the press By measuring at least 10 randomly selected fuel briquettes SS 18 71 78 SS 18 71 80 Net calorific SS-ISO 1928 value (as delivered) Ash content SS 18 71 71 Total moisture SS 18 71 70 content (as delivered) Total sulphur SS 18 71 77 content Content of additives Chlorides SS 18 71 85 Ash dissolution SS-ISO 540 Unit mm Group 1 To be stated, min 25 mm mm > ½ ∅, but max 300 mm kg/m3 > 550 Weight % < 8 of fines < 15 mm MJ/kg >16.2 Group 2 To be stated, min 25 mm, min 10 mm, max 100 mm > 450 < 10 Group 3 To be stated, min 25 mm > 450 > 10 >16.2 To be stated kWh/kg > 4.5 % w/w of < 1.5 DM % w/w < 12 > 4.5 < 1.5 To be stated To be stated < 12 < 15 % w/w of < 0.08 < 0.08 To be stated. DM % w/w of Content and type to be stated. DM % w/w of < 0.03 < 0.03 To be stated. DM 0 C Initial temperature (IT) to be stated. Jakob Hirsmark/SLU INDEBIF Phase 2 Appendix 3. QUESTIONNAIRE SURVEY TO SWEDISH PRODUCERS OF BRIQUETTES AND PELLETS FROM BIOMASS Company info 1. Name of company: .......................................................................................................................................... 2. Company postal address: .......................................................................................................................................... 3. Company visiting address: .......................................................................................................................................... 4. Company telephone number: .......................................................................................................................................... 5. Company fax number: .......................................................................................................................................... 6. Company e-mail address: .......................................................................................................................................... 7. Company Internet address: www................................................................................................................................. 8. Will it be possible for us to visit your factory for an interview? Yes No No. of Responses (= NoR) 16 0 1 Percentage (= P) 100 % 0% Jakob Hirsmark/SLU INDEBIF Phase 2 Products 9. Which are your main products (one or several alternatives)? Pellets NoR 16 Briquettes 6 Wood powder 1 Other 2 P 89 % 33 % 6% 11 % NoR P diameter: 6 mm 6 38% 8 mm 13 81% ……mm 4 25% diameter: ______ mm length: ______ mm Comment: Of the respondents 89 % state that they produce pellets, of which 38 % produce pellets with a diameter of 6 mm, 81 % with a diameter of 8 mm and 25 % with diameters of 5, 10 or 12 mm. 33 %, or six of the respondents, produce briquettes. Four of them state their diameter as 75 mm, while one state the length as 240 mm and one as 60 mm. One respondent also produces wood powder, while one respondent states heat as another product and another respondent states sawdust, bark and chips as additional products. 10. Do you produce the fuels conforming to a standard? Which one? (In case of a more rigorous internal standard please submit this standard or the most important parameters.) Produce according to standard Produce according to no standard NoR 12 1 P 92 8 Comment: Of the 13 producers that answered this question, 12 (=92 %) stated that they do produce conforming to a standard and 1(=8 %) did not. Of those who produce according to a standard 92 % produce according to the Swedish Standard and 8 % state that they produce according to ISO 9000. 11. Do you produce different qualities of Densified Biomass Fuels? Please give a short explanation, why or why not. Yes No NoR 7 7 P 50 % 50 % Comment: Of the 50 % that did produce different qualities, some of the explanations were: • Pellets for both group 1 & 2 according to the SS 18 71 20. • Larger pellet consumers want different qualities. • Pellets from 100 % sawdust and pellets from 50 % sawdust + 50 % peat. 2 Jakob Hirsmark/SLU INDEBIF Phase 2 • • Briquettes with different mixtures of wood and peat as raw material. Briquettes with diameters of 60 and 75 mm. Of the 50 % that did not produce different qualities, some of the explanations were: • Focusing on one quality gives advantages in both storing and distribution. • The aim is trying to keep one smooth quality. 12. Will it be possible for us to obtain product samples for analyses? NoR P Yes 14 78 % No 0 0% We have already analysed our products and submit a test protocol 8 44 % Comment: This question received a response frequency of 100 %. 78 % of the respondents chose to fill in "Yes", while 44 % sent a test protocol of their products as an attachment to the questionnaire. Production 13. What quantity of pellets did you produce in the year 2000? Maximum: 200 000 Minimum: 800 Mean: 38 500 Median: 23 000 Number of responses: Percentage: 14 88 % Comment: The total sum of pellets produced by the respondents in the year 2000 is 538 400 tonnes. One pellet producer had started its production in the year 2000, why no figures from this producer are included. 14. What quantity of briquettes did you produce in the year 2000? Maximum: 196 500 Minimum: 400 Mean: 41 900 Median: 4 500 Number of responses: Percentage: 5 83 % 3 Jakob Hirsmark/SLU INDEBIF Phase 2 Comment: The total sum of briquettes produced by the respondents in the year 2000 is 209 400 tonnes. 15. What is your maximum production capacity for pellets? Maximum: 240 000 Minimum: 8 000 Mean: 60 000 Median: 33 000 Number of responses: Percentage: 16 100 % Comment: The total sum of production capacities stated by the respondents for the year 2000 is 961 000 tonnes. 16. What is your maximum production capacity for briquettes? Maximum: 300 000 Minimum: 3 000 Mean: 75 700 Median: 8 000 Number of responses: Percentage: 6 100 % Comment: The total sum of production capacities stated by the respondents for the year 2000 is 454 000 tonnes. 17. What is the price of your pellets? (Please also submit a price list) Summer, small consumers: ____________ Summer, industrial consumers: ____________ Winter, small consumers: ____________ Winter, industrial consumers: ____________ Comment: Of the 6 respondents, no one uses differentiated prices during the seasons of the year. Dividing the year in summer and winter is therefore not an issue in this case. The prices for industrial customers were stated to be individual but one respondent stated approximately 850 SEK/tonne depending on the transport distance, and another stated 800 - 900 SEK/tonne excluding VAT but including delivery. The prices for small customers were stated by 4 respondents. One stated 1 000 SEK/tonne, another stated 1 550 SEK/tonne including VAT, and a third stated 1 450 SEK/tonne including VAT and delivery. A fourth producer stated the following prices (all including VAT): 4 Jakob Hirsmark/SLU INDEBIF Phase 2 Pellets delivered by bulk truck 1 310 - 1 450 SEK/tonne depending on the quantity, pellets delivered in small bags (16 kg/bag) on pallets 1 800 - 2 500 SEK/tonne depending on the quantity, loose bulk pellets without delivery 1 370 SEK/tonne, big bags (700 kg) without delivery 1 430 SEK/tonne, small bags (16 kg) without delivery 1 650 - 2 070 SEK/tonne depending on quantity. 18. What is the price of your briquettes? (Please also submit a price list) Summer, small consumers: ____________ Summer, industrial consumers: ____________ Winter, small consumers: ____________ Winter, industrial consumers: ____________ Comment: Of the 3 respondents no one uses differentiated prices during the seasons of the year. Dividing the year in summer and winter is therefore not an issue in this case. One producer stated that all prices were individual, another producer stated that the price for small customers was 1 000 SEK/tonne, and a third producer stated that the price for small customers was 720 SEK/tonne excluding VAT, and the price for industrial customers was 450 - 600 SEK/tonne excluding VAT. 19. What is your storage capacity for finished goods? Maximum: 120 000 Minimum: 200 Mean: 23 600 Median: 10 000 Number of responses: Percentage: 18 100 % Comment: One of the producers did not give an absolute number of tonnes, but stated that it has an almost unlimited storing capacity because it can pack its products in plastic bags which are stored outside. 20. What is the total number of employees engaged in production, handling and administration of briquettes and pellets within the company? Maximum: 150 Minimum: 1 Mean: 23 Median: 9 Number of responses: Percentage: 17 94 % 5 Jakob Hirsmark/SLU INDEBIF Phase 2 Comment: The total sum of employees is 390 persons. The figure of 150 employees as the maximum comes from 100 full year employees and 100 seasonally employed persons. One of the respondents stated that its pellet production is integrated with sawmilling production, why administrative personnel is not included. Another producer stated that its employees also work with heat production. 21. How do your employees work? Pelletisation: _____ shifts per day _____ days per week Briquetting: _____ shifts per day _____ days per week Other fuel products: _______________ _____ shifts per day _____ days per week Pellet producers Shift per day 3 3 2 No. of responses: Percentage: Days per week 7 5 5 15 94 % Percentage 33 % 27 % 20 % Comment: 13 % only stated that their employees work three shifts per day and 7 % only stated that their employees work five days per week. Briquette producers Shift per day 3 3 2 1 No. of responses: Percentage: Days per week 7 5 5 4 5 83 % Percentage 20 % 20 % 20 % 20 % Comment: One briquette produce only stated that its employees work five days per week. 6 Jakob Hirsmark/SLU INDEBIF Phase 2 22. Which equipment do you use? No. of responses Percentage dryer 11 69 % milling device 16 100 % conditioning unit 8 50 % pellet mill 16 100 % cooler 16 100 % ……………… 1 6% No. of responses 2 Percentage 33 % milling device 6 100 % conditioning unit 2 33 % briquetting press 6 100 % cooling track 6 100 % ……………… 0 0% for pelletisation: for briquetting: dryer [pellet sieve] Comment: One pellet producer also stated to use a briquetting press. This, however, has not been taken into account here, since this pellet producer did not state any briquette production for the year 2000. 23. Do you have bagging equipment? No Yes, semi-automatic bagging equipment Yes, fully automatic bagging equipment NoR 6 9 4 Percentage 33 % 50 % 22 % Comment: This question received a response frequency of 100 %. One of the respondents stated to use semi-automatic bagging equipment for big bags and fully automatic bagging equipment for small bags. Another respondent stated that a fully automatic bagging machine was under construction and would be in use before year 2002. 7 Jakob Hirsmark/SLU INDEBIF Phase 2 24. How is your production packaged? No. or responses 14 14 16 4 Small bags Big bags Bulk Other: …......... Percentage 78 % 78 % 89 % 22 % Comment: The response frequency for this question was 100 Two producers stated that some of their products go straight on a truck for delivery, another stated that the majority of its products goes straight on a boat for delivery and yet another stated that all of its products are packed in containers for further distribution. 25. How are your finished goods stored? No. or responses 17 11 1 3 Warehouse Silo Outside under roof Other: ……………… Percentage 94 % 61 % 6% 17 % Comment: The response frequency for this question was 100 %. 17 % store their finished goods in containers, in sacks or in plastic small bags. Company history 26. Which year did your company start producing densified biomass fuels? Starting year 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 Mean value: Median value: No of responses: Percentage: No of responses 1 Starting year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 1 1 1 1993 1994 18 100 % 8 No of responses 1 1 2 1 2 1 1 1 1 3 Jakob Hirsmark/SLU INDEBIF Phase 2 27. Was your plant investment subsidised in any way? If yes, please state the percentage of total investment costs. National funds __________ % EU funds __________ % No investment subsidies Total: NoR 5 0 11 16 Percentage 31 % 0% 69 % 100 % Comment: The response frequency for this question was 89 %. For those who had received national funds, the subsidy had covered a share ranging from 2,5 to 30 % with an average of 14,3 % and a median value of 10 %. 28. Is your fuel production subsidised? If yes, please state the percentage of total production costs. National subsidies __________ % EU subsidies __________ % No production subsidies NoR 0 0 16 Percentage 0% 0% 100 % Comment: The response frequency for this question was 89 %. 29. Please indicate your total historical production data during the last years (in tonnes). Pellets: 1990………….. t 1991………….. t 1992………….. t 1993………….. t 1994………….. t 1995………….. t 1996………….. t 1997………….. t 1998………….. t 1999………….. t 2000………….. t Briquettes: 1990………….. t 1991………….. t 1992………….. t 1993………….. t 1994………….. t 1995………….. t 1996………….. t 1997………….. t 1998………….. t 1999………….. t 2000………….. t Others: 1990………….. t 1991………….. t 1992………….. t 1993………….. t 1994………….. t 1995………….. t 1996………….. t 1997………….. t 1998………….. t 1999………….. t 2000………….. t Comment: This question received a response frequency of 78 %. 10 pellet producers and 1 briquette producer gave historical figures for their production, while the figures from questions 13 and 14 were used for the quantities for the year 2000. No respondent stated any figures for other production than pellets and briquettes. 9 Jakob Hirsmark/SLU INDEBIF Phase 2 2002-07-31 Here follows a summary of the answers. For each year the number of respondents, the total sum of their production that year and an average production for that specific year, is shown. Pellets: 1992………….. t 1993………….. t 1994………….. t 1995………….. t 1996………….. t 1997………….. t 1998………….. t 1999………….. t 2000………….. t NoR 1 2 2 4 4 6 7 10 14 Total sum 300 12 700 21 500 28 700 51 600 143 300 184 700 302 000 538 000 Average 300 6 400 10 800 7 200 12 900 23 900 26 400 30 200 38 500 For the responding pellet producers the trend has been a continually increasing average production, with the year 1994 as an exception. Briquettes: 1990………….. t 1991………….. t 1992………….. t 1993………….. t 1994………….. t 1995………….. t 1996………….. t 1997………….. t 1998………….. t 1999………….. t 2000………….. t NoR 1 1 1 1 1 1 1 1 1 1 5 Total sum 202 000 243 000 259 000 200 000 248 000 270 000 221 500 236 400 163 100 217 500 209 400 Average 41 900 30. Has your company registered any trademarks? Number of companies with registered trademarks: Number of companies without registered trademarks: Total no responses: Response frequency: 4 2 6 33 % Comment: Two of the respondents with registered trademarks are production units within the same concern and therefore share the same trademark - "HOUSE Pellets". The other two stated their company names as registered trademarks - "BioNorr" and "Norrbränsle". 10 Jakob Hirsmark/SLU INDEBIF Phase 2 2002-07-31 31. Does your company hold any patents for densified biomass fuels? If yes, which patent (brief description) Number of companies with registered patents: Number of companies without registered patents: Total no responses: Response frequency: 2 3 5 28 % Comment: One pellet producer stated that some of its production facilities are patented, and another pellet producer stated that the company has a patented "mill-drying process". Raw materials 32. Do you buy raw materials or do you use raw materials from your own production plant (in case of both, please specify the share of each). NoR ________% 5 ________% 14 own raw material bought raw material Number of responses: Percentage: Percentage 31 % 88 % 16 89 % Comment: The share of own raw material used ranged from 10 to 100 %, with an average of 65 % own raw material used. The share of bought raw material used ranged from 20 to 100 %, with an average of 88 % bought raw material used. Of all the respondents, 63 % stated to use only bought raw material. One briquette producer stated to use 50 % bought sawdust and 50 % own peat. 33. Which wood species do you mainly use for fuel production? …………………………… …………………………… …………………………… Tree species ________% Spruce ________% Pine ________% Birch Number of responses: Percentage: Average use 54,5 % 45,5 % 0% 15 83 % Comment: All of the respondents stated to use both spruce (Picea abies) and pine (Pinus sylvestris), except for one briquette producer who did not know the tree species used by its raw material suppliers. The share of spruce used ranges from 5 to 99 %, with an average of 54.5 %. The share of pine used ranges from 1 to 95 %, with an average of 45.5 %. One of the respondents stated that it uses sawdust from birch (Betula 11 Jakob Hirsmark/SLU INDEBIF Phase 2 2002-07-31 pendula or B. pubescens) as a raw material test. Another respondent stated that it considers using peat as raw material for a new product. 34. Is there sufficient raw material available for your fuel production? NoR 12 5 Yes No, please give some comments: Number of responses: Percentage: Percentage 71 % 29 % 17 94 % Comment: Of those respondents who did not see the raw material available as sufficient, two stated that they compete with the sawmills internal burning of sawdust and one stated that there is competition with farmers, who use dry byproducts from the sawmilling industry to a larger extent during the winter. 35. Which are the main raw materials for your production of briquettes or pellets (one or several alternatives)? Green sawdust Planer shavings Dry wood chips Dry sawdust/sanderdust Bark Green forestry residues Recycled wood Paper waste Agricultural residues (what?) Other (what?) Number of responses: Percentage: ...........% ...........% ...........% ...........% ...........% ...........% ...........% ...........% ...........% ...........% NoR 13 13 1 4 0 0 0 0 1 2 Percentage 72 % 72 % 6% 22 % 6% 11 % 18 100 % Comment: Green sawdust as raw material covers 10 to 100 % of the respondents raw material usage, with an average of 72 %, planer shavings as raw material covers 1 to 100 %, with an average of 60 %, dry sawdust/sanderdust as raw material covers 4 to 10 % of their usage, with an average of 6 %. One of the respondents uses 10 % dry wood chips in its production, another respondent uses 100 % residues from grain production as raw material and two respondents use peat to cover the raw material need with 50 % and less than 1 % respectively. 12 Jakob Hirsmark/SLU INDEBIF Phase 2 2002-07-31 36. Do you use additives? NoR 3 15 Yes (What type?) No Number of responses: Percentage: Percentage 17 % 83 % 18 100 % Comment: One of the respondents that use additives stated steam as its additive, another stated lignin as its additive and a third stated that it uses wafolin as a binding agent for pellets for small-scale users. Markets 37. Which are your major market segments? Residential Small businesses Industrial size users Community plants Export Number of responses: Percentage: ___________ % ___________ % ___________ % ___________ % ___________ % NoR 13 7 5 13 8 Percentage 76 % 41 % 29 % 76 % 47 % 17 94 % Comment: The DBF producers that sell to residential users sell on average 30 % of their production to residential users. The corresponding figure for small businesses is 5 %, for industrial size users 10 %, for community plants 78 % and for export 20 %. One of the respondents only produces pellets for its own heating plant. 38. In which plants are your densified biomass fuels used? Pellets: small-scale (< 100 kW) ___________ % medium-scale (100 - 1,000 kW) ___________ % large-scale (> 1,000 kW) ___________ % NoR 12 8 8 P 86% 57% 57% Briquettes: small-scale (< 100 kW) ___________ % medium-scale (100 - 1,000 kW) ___________ % NoR 5 4 P 71% 57% 13 Jakob Hirsmark/SLU INDEBIF Phase 2 2002-07-31 large-scale (> 1,000 kW) Number of responses: Percentage: ___________ % 5 71% 16 89 % Comment: The responding pellet producers that sell to small-scale users on average sell 39 % of their pellets to this segment. The corresponding figure for medium-scale users is 48 % and for large-scale users it is 79 %. The responding briquette producers that sell to small-scale users on average sell 38 % of their production to this segment. The corresponding figure for medium-scale users is 40 % and for large-scale users it is 90 %. Miscellaneous 39. Which are the main causes to possible production problems, with decreased production as a result, at your plant? NoR 7 4 4 2 10 2 2 1 Raw material deficit Raw material of poor quality Dryer failure Failure in milling unit Pelletiser/briquettor failure Cooler failure Conveyor system failure Other (what?) Number of responses: Percentage: Percentage 44 % 25 % 25 % 13 % 63 % 13 % 13 % 6% 16 89 % Comment: One pellet and briquette producer stated that lack of cheap enough raw material is one possible problem and one briquette producer, who uses 50 % peat, stated that rainy summers can lead to a raw material deficit because of the difficulties in peat harvesting. One briquette producer stated that lack of storing capacity for finished goods is one of the main causes to production problems. 14 Jakob Hirsmark/SLU INDEBIF Phase 2 2002-07-31 40. What does the ownership of your company look like? Number of responses: Percentage: 17 94 % Comment: The kind of ownership of the production plants differs significantly. Some of the more noteworthy information is shown here. • • • • • • • • Two of the responding pellet plants are owned together by 120 sawmills in southern Sweden. One pellet and briquette production plant is fully owned by a Swedish forest owners association, Mellanskog, and one pellet production plant is owned to 50 % by Mellanskog, 25 % by the company Hedlunda Trävaru AB and 25 % by Orsa Jordägande Socknemän. One pellet plant is fully owned and two pellet plants are partially owned by the Swedish forest company SCA. One of these plants is owned together with the forest company Scaninge and Sågverkens Träprodukter AB, and the other is owned together with the energy company Luleå Energi. Two other energy companies, Uppsala Energi and Härjedalens Energi, together own the major Swedish briquette producer. The Norwegian oil company Statoil is the major owner of one of the responding pellet producers together with the Swedish company Vänerbränsle. One pellet plant is owned by a company, which in turn is fully owned by the Finnish company Vapo OY. Five of the responding production plants are owned by private investors. Two of the pellet plants are owned by economic associations. 41. Which are the main incentives and disincentives for the use of pellets according to you? Number of responses: Percentage: 12 67 % Comment: The following incentives and disincentives were mentioned by the respondents: Incentives: • Development of knowledge and technology about the use of pellets in smalland medium-scale combustion systems. • Competitive in environmental and economical perspectives and high technical competitiveness. • We use national renewable bioenergy, which supports the local labour-market and reduces emissions of greenhouse gases. 15 Jakob Hirsmark/SLU INDEBIF Phase 2 • • • • • • • • 2002-07-31 The increasing oil price (also increasing electricity price), the abundance of raw material and the installation of new burners for DBFs. Environmental thinking, environmental fees, etc. Increasing oil- and electricity prices, people who are tired of wood log burning, the environment, satisfied customers who make great savings compared to oil and electricity. The oil price and environmental impacts. Decreased dependence on oil and electricity. The price and the environment. Pellets is a cheap, comfortable and environmentally friendly fuel. Cheap and environmentally friendly. Disincentives: • Taxes and fees. • The authorities slow positioning in their attitude towards peat; whether it is to be considered as a renewable biofuel, and the uncertainty about CO2-tax. • Energy tax. • Fear for taxing, high prices for combustion equipment compared to oil burners, problematic combustion equipment. • Fear of tax, and pellets involves more work than what oil does. • Too little knowledge by the people, and the distribution systems and logistics are not fully developed. Your name: .......................................................................................................................................... Your position: .......................................................................................................................................... Date: .......................................................................................................................................... NoR Company brochure submitted 6 Test protocol from laboratory analyses of products submitted 8 Price list submitted 1 Product samples submitted (number of different samples: ______) 2 Company logo(s) submitted 3 Densified biomass fuels logo(s) submitted 1 16 P 33 % 44 % 6% 11 % 17 % 6% INSTITUTIONEN FÖR SKOGSHUSHÅLLNING arbetar med forskning, utbildning och information om skogens produktion och nyttjande för kommersiella och andra ändamål i kedjan skog-förädling-marknad, inom ramen för en hållbar utveckling. Distribution Sveriges lantbruksuniversitet Institutionen för skogshushållning Department of Forest Management and Products Box 7060 SE-750 07 UPPSALA Sverige Tel. +46 (0) 18 67 10 00 Fax: +46 (0) 18 67 38 00 E-post: [email protected] Ansvarig utgivare Publisher Dekanus Jan-Erik Hällgren Examensarbeten nr 38/2002 © Institutionen för skogshushållning och Jakob Hirsmark