Green Industry and Bioenergy in Regional Development

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1 Green Industry and Bioenergy in Regional Development Jouko Parviainen Joensuu Regional Development Company, JOSEK Ltd Pielinen Karelia Development Center, PIKES Ltd

2 North Karelia One of the 18 provinces in Finland Area 21,585 km 2 166,000 inhabitants Density 7.7 persons/km 2 The easternmost region in the continental EU 300 km common border with Russia Three sub-regions Pielinen Karelia Joensuu Central Karelia

3 Green industry ~ Forest bioeconomy From forests to more value added products and energy

4 Corner stones of the green industry in NK #1 Forests are the backbone of the economy Harvesting Logistics Wood processing Bioeconomy Forest energy Manufacturing Know-how Sustainable use of our forest resources bases on reliable statistics Forest annual growth over 8 Mm³ Annual felling Mm³

5 Corner stones of the green industry in NK #2 Regional climate and energy policy & targets Forest owners positive attitude to energy wood harvesting Utilization of industrial byproducts (black liquor, saw dust)

6 Corner stones of the green industry in NK #3 Joensuu is acknowledged as the forestry capital of Europe and the bioeconomy capital of Finland Leading expertise and technology since 1980 s Strong networking: Wood Energy Net, Wenet, since 2004 Centre for Green Growth in 2014

7 Wenet key members & partners Finnish Forest Research Institute (Metla) University of Eastern Finland (UEF) Lappeenranta University of Technology (LUT) European Forest Institute (EFI) North Karelia, Savonia and Mikkeli Universities of Applied Sciences Kajaani University Consortium Joensuu Science Park Ltd The Finnish Forest Centre VTT Technical Research Centre of Finland Regional development companies in Eastern Finland Companies within wood energy harvesting, transportation and handling Power plant and boiler manufactures

8 Manufacturing More than two thirds of the forest harvesting machines sold in Europe come from East Finland John Deere & Waratah-OM, Ponsse, Kesla, Pentin Paja

9 Small scale use of forest energy World leading manufactures of heat-retaining ovens Tulikivi, Kerman Savi, NunnaUuni, Vuoleri

10 Transfer of know how and technology Tailored and holistic solutions Fuel supply chains Heat and power generation District energy systems Business models Contract design Professional visits, technical tours and showhows in Finland Wenet s services

11 Case EEO: From heating oil to wood chips Initiative to replace heating oil by wood chips was presented in 1996 Eno Energy Coop (EEO) was established Members 12 (today the number is over 50) Operation started in 2000 with fuel supply for the Eno Upper village heating plant (0,8 MW boiler) owned by the municipality Next two heating plants with DH network systems were invested by the EEO Uimaharju, 2002, 1 MW and 2006, 1 MW Eno Lower village, 2004, 0,8 and 1,2 MW Today: 8 biomass boilers by total capacity 9,66 MW

12 Case EEO The EEO takes care of three heating plants using wood chips in the Eno region Total volume of the heated buildings: m 3 Need for heat production is over MWh Corresponds with 800 single-family houses Length of pipelines totally almost 9 km

13 Case EEO Need for wood chips: l-m 3 25 % comes from the cooperative members Rest from other local forest owners % from thinnings of young forests % is residues from final fellings Moisture content 35 % (average) In Eno: l-m 3 = MWh = GJ (35 %)

14 Case EEO Benefits 2 million litres of heating oil is annually replaced by local wood fuel Oil use as back-up is less than l/a Pellets are used as back-up in Uimaharju CO 2 emissions have decreased by more than 5,000 tonnes per year 7 10 jobs have been created by the EEO >2 M is annually used to support the local economy

15 Small diameter energy wood harvesting Young forest thinnings

16 Integrated energy wood harvesting Residues from final fellings

17 Storaging at a road side Piling a couple of weeks after harvesting Natural drying over a summer or two (6 to 18 months)

18 Mobile chipping at the road side

19 Transport and unloading at the plants Distances usually within 35 km

20 Eno Lower Village Heating Plant

21 DH pipeline

22 Mobile chipper in Finland

23 Mobile Kesla chipper at the terminal in Canada

24 Heating Plant in Eno

25 Heating plant of Amqui hospital

26 From forests to more refined solid biofuels Pellets, in the future: torrefied/black pellets, bio-coal Bio-coal production in Nurmes in 2015/16?

27 More value by refining biomass to bio-oils Pyrolysis oil production in Joensuu Lieksa in 2015/16?

28 Fortum* has invested about 30 million in the commercialization of new technology by building a pyrolysis oil plant integrated to the combined heat and power plant (CHP) in Joensuu Production started in November 2013 *Fortum is an internationally operating energy company owned by the state of Finland

29 Pyrolysis technology is provided by Metso Bio-oil capacity 30 MW Annual production 50,000 t, 210 GWh Need for forest biomass 225,000 s-m3/year new jobs

30 Other green industry initiatives Pielinen Karelia green industry development programme Energy and material efficiency industrial symbiosis Recycling and reuse of byproducts Decentralised energy production New technology innovations and business models Biogas production by farms (energy cooperatives) and filling stations for vehicles in Lieksa, Nurmes and Valtimo

31 Thank you for your attention! Jouko Parviainen