Regional added value of bioenergy projects in Germany

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1 Regional added value of bioenergy projects in Germany Dr. Sebastian Elbe 1 Sustainable Energy Finance and Investment Summit CROENERGY 2013 Biomass energy markets - financing perspective October 2013, Tuheljske toplice, Croatia

2 Client Financing the German Task 43 contribution The Agency for Renewable Resources (FNR; Fachagentur Nachwachsende Rohstoffe e.v.) was founded in 1993 by the German Federal Ministry of Food, Agriculture and Consumer Protection Main responsibilities of FNR: to support R&D in the area of renewable resources to inform the public about current research results to give advice on a range of applications of renewable resources and organise and take part in scientific events 2 You want to know more? www.

3 Our own field of work Spatial Planning and Financing Regional Development Research Evaluation Implementation RUFUS Rural Future Networks Ex Post EFRE Syntheses Ex Ante EAFRD Syntheses Mid Term EAFRD You want to know more?

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6 Model Project Bioenergy-Regions Phase 1 The 25 model regions of Phase 1 Phase 1: 25 regions for 3 years (=phase 1 from 06/2009 till 05/2012) for soft measures (no direct investments) aims: creating bioenergy networks and regional added value; combating climate change... Phase 2: 21 regions for 3 years ( ), declining funding 80% 65% 50% 6 You want to know more?

7 Feedstock production Feedstock logistics Model Project Bio-Energy Regions Conversion Distribution End use Regional Example - give energy a bright face 7

8 side-effects and non-monetary effects regional expansion of renewable energies Lease income Regional Added Value Jobs Benefits: Improvement of municipal budgets Strengthening regional circuits location attractiveness Transparency Tax revenue Prevention of import costs Environmental protection Sustainability Participation Tourism Energy autonomy 8

9 Regional Added Value Electricity through wood chips electricity wages and slaries profits proceeds intermediate inputs wood chips residual wood Added value of the chain = 125 Forest owner woodchopper CHP 9 Source: Prof. Dr. Peter Zerle, 2010

10 Regional Added value through wood raw wood wood energy furniture manufactoring Faktor 13 Faktor 16 0 raw Rohholz wood wood Holzenergie energy furniture Möbelherstellung manufactoring 10 Quelle: Prof. Ulf Hahne 2005

11 Framework Conditions Bioenergy: Short value chains as a strength Bioenergy can be produced in short value chains which can be covered/captured on local and regional scale. As a result the valorization of biomass through the production of bioenergy produces regional added value, defined as income (including taxes) and jobs, especially in rural areas. It is possible to substitute imports of fossil fuels into the region, to close regional economic cycles and to avoid the loss of regional purchasing power. Particularly for structurally weak areas, this constitutes a promising (defensive) and low-risk strategy to valorize existing potentials and resources as well as to keep purchasing power in the region. 11

12 Framework Conditions Bioenergy: Short value chains as a strength Added value chains are "easier / shorter" than material use, can be localised (all stages of value added can be covered in a region), technology is available on nearly every scale. Available or previously unused resources, remnants or byproducts, e.g. from landscape preservation, can be mobilized and valorized. Necessary investments are readily comprehensible and it is possible to already establish closed value added chains with small plants, like, e.g. a wood chip heating. A sufficiently high demand for products (heat, electricity and gas as mass products of daily needs) exists in the regions, respectively, their consumption is guaranteed 12

13 Framework Conditions Short value chains and social issues Public actors as driving forces - private actors follow. Building up regional support networks is easier Regional actors can create value added or partake in it. This includes primary producers like agriculturalists, forest managers, municipalities (e.g. through owner-operated municipal enterprises of plants), regional crafts and service providers (e.g. trough construction and upkeep of plants), regional banks and savings banks but also citizens (who can partake in regional value added as co-owners through the installation of civic plants or civic funds). Please keep in mind: Networks, managements and projects is neither an end in itself nor something that can be taken for granted. It is a permanent task that requires temporal forerun and preparation concerning the contents. 13

14 Regional Added Value is particularly improved if Activation and mobilization of key actors goal orientation Action and implementation orientation Win-win situations early success USPs Learning system Leverages existing strengths 14

15 Regional Added Value is particularly improved if Raw materials: unused potential (eg waste, manure, landscape maintenance, private forest wood residues) and new potential (eg Short Rotation Plantation) are mobilized. There will be no displacement of existing uses and existing value (+ conflict-free) Effizienz: the efficiency of existing value chain is improved (eg feedstock production, logistics, biogas technology to building renovation) Extension / dissemination: e.g. Use biogas heat, district heating networks, cascade utilization, utilization of residues, biogas filling station. Export: products and services (eg tourism, know-how, technology, electricity) Finance: Investments (including external) are mobilized and wages, profits, return on investment and land rents are realized in the region. 15

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17 You want to know more? Dr. Sebastian Elbe Dipl. Eng. Spatial Planning, PhD in Economics and Social Sciences (Managing Director SPRINT) Phone: Internet: 17