Canadian Perspective on EU and other Export Markets. Gordon Murray, Executive Director

Transcription

1 Canadian Perspective on EU and other Export Markets Gordon Murray, Executive Director

2 Total: 14.4 mn tonnes Source: Brodie Govan, Argus Wood Pellet Association of Canada 2

3 Source: Brodie Govan, Argus Biomass Markets Wood Pellet Association of Canada 3

4 Industrial Use ~ 7Mn Tonnes Wood Pellet Association of Canada 4

5 Thousands tonnes 2011 Jan - Apr 2012 Canada USA Canada USA UK Netherlands Belgium Denmark Italy Sweden Germany Total Sources: Hawkins Wright FEM, Eurostat Wood Pellet Association of Canada 5

6 Fire took place February 27, 2012 Plant was to use 2.5 million tonnes next 18 months Hopefully back on line by August Wood Pellet Association of Canada 6

7 Wood Pellet Association of Canada 7

8 Source: Forest Energy Monitor Wood Pellet Association of Canada 8

9 Source: Hawkins Wright - Forest Energy Monitor Wood Pellet Association of Canada 9

10 Wood Pellet Association of Canada 10

11 Technology Co-firing (standard) 0.5 Biomass conversion Enhanced co-firing Dedicated biomass 1.5 Current support ( ) Roc/MWh No band previously but generators were receiving 1.5 No band previously but generators received 0.5 Post-consultation support Roc/MWh Less than 50pc cofiring: 0.3 proposed for and 0.5 in pc co-firing receive 0.6; pc co-firing receive 0.7 in , rising to 0.9 in to remain until 31March 2016, then 1.4 from 1 April 2016 Comments and other changes Unit by unit approach with Roc levels for subject to further consultation New band. Unit by unit approach New band. Unit by unit approach. Cost control mechanism to be introduced, subject to consultation Introduction of a supplier cap, subject to consultation Wood Pellet Association of Canada 11

12 Currently 1 ROC = approximately 42 Wood Pellet Association of Canada 12

13 Source: Jorrit Hachmer, RWE Wood Pellet Association of Canada 13

14 Possible 300% growth by 2020? Wood Pellet Association of Canada 14

15 Thanks to Jorrit Hachmer, RWE Wood Pellet Association of Canada 15

16 RPS for power generation: % Increase ~ ½% annually until % Biomass energy target for 2020: 4,211,000 toe Pellet equivalent: 10 million tonnes So far very few transactions Wood Pellet Association of Canada 16

17 Fukushima caused chaos in power sector Nuclear energy is unpopular New feed-in tariff effective July 1, 2012 Applies to wind, solar, hydro, geothermal, biomass Renewable energy to increase from 6,500 MW to 30,000 MW. Presently only one buyer 60,000 tonnes per year Wood Pellet Association of Canada 17

18 Wood Pellet Association of Canada 18

19 The wood pellet industry exists for only two reasons: Bioenergy is carbon neutral Bioenergy is sustainable Regardless of facts, if society comes to disbelieve either of those statements, then our industry will be in grave jeopardy Wood Pellet Association of Canada 19

20 Cutting forests to burn for electricity is a bad idea. Bioenergy is causing forests to be destroyed. Governments are subsidizing deforestation. Biomass is not carbon neutral and is more damaging to the environment than coal. Biomass subsidies are driving up the cost of raw material for other industries. Wood Pellet Association of Canada 20

21 Counter misinformation with scientific fact Provide proof of sustainability Conduct business to highest ethical standards Positive information campaigns i.e. UK s Back Biomass Campaign (Drax, EON, USIPA and others) Wood Pellet Association of Canada 21

22 European Biomass Association European Pellet Council US Industrial Pellet Association Wood Pellet Association of Canada Danish Energy Association Utilities: Drax, EON, GDF Suez, RWE, Vattenfall Wood Pellet Association of Canada 22

23 Claims are being made that biomass combustion releases more CO 2 than coal Also claims that there is a long period between release of CO 2 from combustion and the sequestration of CO 2 during regrowth Project aims to gather scientific evidence to understand CO 2 flow over time Project is to be peer reviewed Wood Pellet Association of Canada 23

24 Are temporal carbon emissions relevant with respect to climate change? What kind of temporal carbon emissions are associated with real life wood fuel production?

25 Regions British Columbia US Southeast Europe Russia Brazil Scenarios Sawmill residues Harvesting residues Round wood from commercial forests Round wood from plantations Wood Pellet Association of Canada 25

26 Utilities: Dong Energy, Drax, EON, GDF Suez, RWE, Vattenfall Producers: WPAC, USIP, EPC Agenda: Standard spot contract nearly done Industrial specifications - done Sustainability criteria in progress Wood Pellet Association of Canada 26

27 Europe is still using 1.3 billion tons of coal annually Only 5 of 27 member states are co-firing A 15% replacement of coal would mean over 200 million tons of wood pellets annually Economies are continuing to grow, thus energy demand is also increasing Nuclear energy is now unpopular The future for pellets is bright Wood Pellet Association of Canada 27

28 Wood Pellet Association of Canada 28