Optimal use of forest residues in Europe under different policies—second generation biofuels versus combined heat and power

• Published in: Biomass conversion and biorefinery 2013, Vol.3 (1), p.3-16
• Main Authors: Wetterlund, Elisabeth, Leduc, Sylvain, Dotzauer, Erik, Kindermann, Georg
• Format: Article
• Language: English
• Subjects: A-carbon; Alternative energy sources; Baltic sea; Bio-energy; Biodiesel fuels; Bioenergy; Bioenergy conversion; Biofuel policies; Biofuel production; Biofuels; Biomass; Biotechnology; Carbon; Carbon costs; Carbon dioxide; CO2 emissions; Cogeneration; Cogeneration plants; Combined heat and power; Combined heat and power production; Costs; Economic models; Economic policies; Economics; Emission control; Emission reduction potentials; Emissions control; Energy; Energy policy; Energy system optimisation; Ethanol; European levels; European union; Forest residue; Forestry; Forests; Fossil fuels; Heat and electricity; Large amounts; Methanol; Optimal locations; Optimisation models; Optimization; Original Article; Power generation; Renewable and Green Energy; Renewable energies; Renewable energy resources; Residues; Second generation; Second generation biofuels; Supply Chain Management; Supply chains; Tax exemptions; Taxation; Techno-economics; Transportation industry; Transportation sector; Woody biomass
• ISSN: 2190-6815; 2190-6823; 2190-6823
• DOI: 10.1007/s13399-012-0054-2

The European Union has set a 10 % target for the share of renewable energy in the transportation sector for 2020. To reach this target, second generation biofuels from, for example, forest residues are expected to replace around 3 % of the transport fossil fuel consumption. However, forest residues could also be utilised in the heat and electricity sectors where large amounts of fossil fuels can be replaced, thus reducing global fossil CO 2 emissions. This study investigates the use of forest residues for second generation biofuel (ethanol or methanol) or combined heat and power (CHP) production at the European level, with focus on the influence of different economic policy instruments, such as carbon cost or biofuel policy support. A techno-economic, geographically explicit optimisation model is used. The model determines the optimal locations of bioenergy conversion plants by minimising the cost of the entire supply chain. The results show that in order to reach a 3 % second generation biofuel share, a biofuel support comparable to today’s tax exemptions would be needed. With a carbon cost applied, most available forest residues would be allocated to CHP production, with a substantial resulting CO 2 emission reduction potential. The major potential for woody biomass and biofuel production is found in the region around the Baltic Sea, with Italy as one of the main biofuel importers.