Biofuel production in Sweden – where, when and with which biomass Joakim Lundgren, PhD Division of Energy Science, Luleå University of Technology Bio4Energy

Background • Ambitious national targets for renewable motor fuels boost interest in 2nd generation biofuels. • Large production plant capacities are required in order to reach favourable economy-of-scale effects and consequently reasonable production costs.

• The next-generation facilities are envisioned that would call for around 4000-6000 tons per day or more of raw material.

Background • To enable biofuel production in such large facilities as well as provide for associated distribution requirements, substantial infrastructure planning will be needed. • Sweden is a widespread country with long transport distances and where logistics and localization of production plants are crucial for the overall efficiency.

Industrial integration provides the opportunity for efficient resource utilization • Advanced logistics for feedstock and products

• Heat sinks 24/7 • Handling and use of by-products • Advanced industrial process competence

Which locations are best suited for 2nd generation biofuel production? • What type/s of biofuel should be produced and in which quantities? • Which feedstock should be used? • How do various boundary conditions affect production plant locations and production characteristics, and which parameters have the largest impact?

f3 project: BeWhere Sweden • BeWhere Sweden is a techno-economic, geographically explicit optimization model (based on MILP) that can be used to – find the most cost-effective biofuel production plant locations. – estimate total investments and costs to meet a certain biofuel demand under different biofuel scenarios. – analyze different proposed policy instruments. – identify and analyze possible policy target conflicts.

Schematic overview of BeWhere Sweden Forest industry

7 feedstock types

Waste flows

Stem wood Forest biomass

Reference system

Other industry

District heating Reference operation

Electricity demand

Electricity production

Transport demand

Fossil transport fuels

Industry + integrated 2nd gen. biofuel Distr. heating + integrated 2nd gen. biofuel Integrated biofuel production Industry + integr. torrefaction/ pyrolysis District heating + integr. torrefaction / pyrolysis

Integrated biomass upgrading

62 plant sites 5 site types 6 plant technologies 3 biofuels Coal/oil demand

Fossil fuels

Available biomass and current use

Model test runs • The model is executed for different scenarios regarding biofuel demand, energy market conditions, policies and feedstock availability, in order to identify robust solutions. • This far, two different cases have been tested – 25% biofuels (2nd generation) in Sweden overall – 25% biofuels (2nd generation) fulfilled in every county in Sweden

Preliminary results

Overall target of 25% biofuel in Sweden

Target of 25% biofuel in all counties

Preliminary modeling results • Plant positions with high heat demand are favored. • When biofuel needs to be distributed to all parts of Sweden, the plants are more evenly distributed. • Due to longer total transport distances and less optimal integration possibilities, the total system cost is around 5% higher when all counties should fulfill the biofuel share target.

When can we expect 2nd generation biofuels on the market? • Currently a lot of activities already on-going in Sweden. – SunPine, SEKAB, BioDME, Göteborg Energi (start-up 2013), E.ON (Bio2G) (planned start-up 2016). • 2nd generation biofuels can be cost competitive with fossil fuels by around year 2030. (IEA Bioenergy, 2012).

Summary • Sweden has many important cornerstones to be come a leading country regarding production of 2nd generation biofuels.

– Biomass resources, competence, heat demand... etc • The BeWhere Sweden model has the potential to contribute with valuable input for different biofuel production stakeholders as well as for government and policy makers.

Thanks for your attention!

E-mail: [email protected]