Finland Biofuels Market Driven by Large Forests and Climate Policy

Biofuels Market ‐
Biofuels Market Finland
November 2009

Executive Summary

 The energy market in Finland is dominated by oil which is the major source of energy
Market  Wood‐based biofuels accounts for 20% of the country’s primary energy consumption
 20% of total primary energy consumption in Finland is met by bioenergy
p y gy p y gy

 Large Forests Providing Raw Materials for Biofuels
 Usage of forest land to develop energy crops
 Biofuels Dominated by Imports
Market
Market
 Biofuels to Assist in the Reduction of CO2 Emissions
Characteristics  Expected Direct Benefits to Green Car Owners
 Mandatory Sale of Biofuels
 Reducing the Dependency on Oil
 Climate and Energy Policy
Government  Expected Introduction of Feed‐in‐Tariff in Biogas Generation
Role  TEKES
 VTT Technical Research Centre and Other Investments
VTT Technical Research Centre and Other Investments
 The market is in a nascent stage with only a few players
 Major players include
Major Players – Neste Oil
– UPM‐Kymmene
– ST1

BIOFUELS MARKET – FINLAND.PPT 2

•Introduction
Introduction
•Market Overview
•Market Characteristics
M k Ch i i
•Government Policies and Investments
•Major Players
•Key Developments
Key Developments
•Appendix


The European Union biofuels market has been growing
strongly with Germany and France being the market leaders
Overview Biodiesel
•On 23 January 2008, the EU proposed that the ‘000 MT Germany is
overall energy target would stand at 10,000 the largest
producer Production
 20% renewable energy use by 2020 8,000
 10% minimum target for the market share of 6,000
biofuels by 2020
4,000
•The EU has set a target of incorporating 5.75%
g p g Imports
p
2,000
2 000
biofuels in transportation by 2010 Exports
0
2006 2007e 2008e 2009f 2010f

Segmentation of Usage in Transportation Bioethanol

5% ‘000 MT France is the
Biodiesel 3,000 largest
20% producer Production
Bioethanol 2,500
Vegetable Oils
V t bl Oil 2,000
1,500 Imports
75% 1,000
500
Exports
0
NOTE: Biogas accounts for a negligible share 2006 2007e 2008e 2009f 2010f


Major European initiatives towards developing the biofuels
market
1992: CAP allowed for non‐food crops to 2003: Biofuels Directive ( indicative targets 2% by 2005,
be grown on set‐aside land without 5.75% by 2010)
losing the set‐aside premium. The Energy Taxation Directive
amount of oilseeds grown on set‐aside Revision of Fuel Quality Directive (gasoline norms)
land is controlled by the Blair House Revision of diesel norms & Biodiesel quality norms
Agreement. CAP Reforms (change in energy crop premium)

1990 1995 2000 2005 2008

• 1992: • 1997: • 2000: • 2006: • 2008: Drafted
Introduction
Introduction White paper
White paper Green paper
Green paper EU’s Biofuels
EU’s Biofuels renewable
renewable
of the on renewable on energy Strategy energy
Common energies supply directive
Agricultural security
Policy (CAP)

2007: Renewables Roadmap and Revision of Biofuels Directive
Revised Fuel Quality Directive – up to 10% ethanol blending; reduction in greenhouse
Revised Fuel Quality Directive up to 10% ethanol blending; reduction in greenhouse
gas emission from transport fuel by 1% per year between 2010 and 2020


•Introduction
Introduction
•Market Overview
M k Ch i i
•Major Players
•Key Developments
Key Developments
•Appendix


The overall energy demand has been falling since 2004 with
oil being the major source of energy generation
Overview Total Energy Consumption
•Energy market in Finland is dominated by oil ‐1%
‘000 TJ
which is the major source of energy 1,478 1,494
, 1,469
1,500
1 500 1,368
1 368 1,400
1 400
•Large industries such as pulp and paper as well
Energy
as the manufacturing sector are major 1,000 demand
consumers of power has fallen
due to the
•64% of energy generated is generated from
•64% of energy generated is generated from 500
recession
oil, wood fuels and nuclear sources
0
2004 2005 2006 2007 2008
Energy Use (By Source) Energy Consumption (By Sector)
Oil
2% Wood Fuels Industry
4% 13%
6% 3% 26% Nuclear Power Space Heating
Natural Gas
Natural Gas Transportation
10% 17%
Coal 49% Others
Peat
11%
Hydro and Wind
21%
Net Import of
p 21%
17%
Electricity
Other


Biofuels market in Finland is at a nascent stage and is
expected to grow in the future
Overview Bioenergy Generated
•Finland has large available resources of solid TJ
500 +2%
p g q g
biofuels and is developing liquid and gaseous 414
400 349
biofuel reserves 297 276
309 295 296
300
•Wood is the most important source of 200
bioenergy in Finland 100
 90% of bioenergy originates from the forestry 0
2004 2005 2006 2007 2008p 2010e 2025e
sector Note: p – Preliminary Data
e – Estimated Data
•Biofuel production has been increasing in
p p
accordance with various development policies Electricity Production Mix
TWh
 Biodiesel – ’08: 85,000 tonnes; ’09e: 330,000
90 82
tonnes 80
79 78
74 Nuclear power
68
 Bioethanol – ’05: 13 mn litres; ’08: 50 mn litres 70 27%
28% 29% Hydro power
30%
60 33% Natural gas
Natural gas
•Finland boasts of the highest bioelectricity
Fi l d b t f th hi h t bi l t i it 50 18% 14% 18% Coal
23%
share in the EU 40 12% 20% 12%
13% Biofuel
30 19% 13% 20% 15%
Peat
•20% of total primary energy consumption in 20 10%
17%
11%
12% 13% 7% 13% 13% Others
12%
y gy
Finland is met by bioenergy 10
8% 4% 4% 8% 4% 8% 2% 8% 2%
0
2004 2005 2006 2007 2008


•Introduction
Introduction
•Market Overview
M k Ch i i
•Major Players
•Key Developments
Key Developments
•Appendix


Market Characteristics

Large Forests Providing Raw Materials for Biofuels

Usage of Forest Land to Develop Energy Crops
f d l

Biofuels Dominated by Imports
y p

Major
Characteristics
` Biofuels to Assist in the Reduction of CO2 Emissions

Expected Direct Benefits to Green Car Owners

Mandatory Sale of Biofuels

Reducing the Dependency on Oil


A large resource base will develop the biofuels market
however resistance from the forest industry is expected
Large Forests Providing Raw Materials for Biofuels
• 87% of Finland is forest cover and provides for a strong resource for the development of
biofuels Available resources
• Finland has extensive biomass resources and are extremely important for energy generation provide major
since the country has no indigenous reserves of fossil fuels growth opportunity
• These resources include abundant forest residues, fuel wood, and peat
• Tapping in to this large resource will allow the country to generate all types of biofuels
originating directly or indirectly from woody biomass
i i ti di tl i di tl f d bi
• Wood‐based biofuels accounts for 20% of the country’s primary energy consumption

Usage of Forest Land to Develop Energy Crops
• In order to generate biofuels, agricultural land is often diverted from the production of food
crops to the production of energy crops Food vs. fuel
argument is
• This is a point of contention as more extensive cultivation of energy crops on arable land may deterring growth of
lead to a drop in food production the biofuels market
• Furthermore, the forest industry may experience difficult in obtaining forest raw material
• This issue can be addressed by developing more efficient second‐generation biofuels
 Second‐generation technology refers to the production of biofuels on a large scale from wood, grasses, or
non‐edible parts of plants


Large fraction of the biofuels market is dominated by
imports which provides for strong domestic opportunity
Biofuels Dominated by Imports
• Nuclear energy has been seen as one of the most important sources of energy generation
Major imports will
• The lack of crude oil resources has made the country focus on other means of energy
lead to renewed
lead to renewed
development investment in this
• Biomass has been viewed as a major domestic source towards meeting the energy demands sector
prevalent in Finland
• Large amounts of biofuels are imported in order to meet the EU’s energy directives as well as to
bring about efficiency in energy use
bi b t ffi i i
 Fuel wood and ethanol account for a major share of the imports
• High level of imports of biofuels will attract players to enter the market and capitalize on the
profit incentives
Import and Export Balance of Biomass Fuels

PJ
80 67.6
61.4 63.1 62.5
60 Import
Import

40

20 10.6 11.4 11.5 14.2
Export
0
2004 2005 2006 2007


Emphasis on the reduction of carbon dioxide emissions to
meet energy targets will be assisted by attractive policies
Biofuels to Assist in the Reduction of CO2 Emissions
• Finland was one of the first countries in the EU to introduce a carbon‐based environment tax in
1990 by introducing a CO2 tax on fossil fuels Impetus on biofuels
towards meeting
towards meeting
 A direct tax on fossil fuel is levied based on the carbon content of the fuel
the national CO2
• The government has forwarded that they will provide up to 40% subsidies to new investments emission targets
in this sector
• The tax structure also encourages the usage of biofuels
 Biogas sed as motor f el is e empt from e cise d t
Biogas used as motor fuel is exempt from excise duty
• These targets will lead to growth in the biofuels market due to high taxes levied on other
conventional fuels
Current Scenario (CO2 Emission) Expected Scenario (CO2 Emission)

+6% Mt
Mt ‐7%
100 ‐3%
100 80 78 71
69 57 48
50 25 17
50
0
0
2012 2015 2020 2030 2050
2005 2006 2007

Emission level to be Major policies will be
achieved under the required to reduce the
Kyoto Protocol l level of CO2 emissions
l l f


Initiatives towards increasing the acceptability of green cars
has begun and will lead to a developing market
Expected Direct Benefits to Green Car Owners
• Direct benefits accruing to biofuel car owners is currently localized which will lead to a rise in
the number of green car owners in these specific regions Lead to a rise in
biofuel cars
biofuel cars
• Helsinki is planning to offer incentives to drivers who exchange their old high‐emission vehicles purchased and
for new ones which pollute less manufactured
• Drivers of more eco‐friendly cars will be offered a parking benefit allowing them to park in
central Helsinki for a low annual fee
 Under the plan an initial payment of USD 44 6/yr is required for the permit which will release the owner
Under the plan, an initial payment of USD 44.6/yr is required for the permit which will release the owner
from other parking expenditures
 It is expected to come into effect in 2011
• Issues regarding acceptability of the policy is expected
 The choices of green vehicles is extremely limited and is expected to act as a deterrent
 Furthermore, in the current scenario, cars with old technology are cheaper than those with new and more
efficient technology. The prices of these eco‐friendly cars is expected to reduce in the future
 Another issue is that these incentives are based on certain emission criteria rather than a specific technology
• Pan‐Finland implementation of this will lead to major energy savings
Expected Energy Savings in Transportation
E dE S i i T i
GWh
+5%
2,000 1,387
1,142 1,299
869
1,000
0
2007 2010 2013 2016


Rising accessibility of biofuels will be instrumental in shifting
consumer perception towards green cars
Mandatory Sale of Biofuels
• In 2007, a new law on promoting the use of biofuels in transport came into force on January 1,
2008 Growing access to
biofuels will
biofuels will
• It requires distributors of transport fuels to supply a minimum volume of biofuels annually develop the market
• This obligation applies to the total amount of biofuels thus giving distributors the flexibility to in the future
replace petrol or diesel oil in a ratio they choose within the limits of the quality standards
• The law does not regulate the origin of the biofuel
 This allows the distributors to subcontract their obligation wholly or partially to another company
• Distributors are individually accountable to the Government. In the event that they are unable
to fulfill the obligation, the customs authorities are liable to impose a penalty fee
• The law also states the targets to be met with respect biofuel consumption which will be
achieved through mandatory biofuel sales
achieved through mandatory biofuel sales
Percentage Of Biofuels to be Supplied for Consumption

%
+70%
10
4.00 5.75
5 2.00
0
2008 2009 2010

• Growth in wide scale availability of biofuels in the market has had a positive impact on this
Growth in wide scale availability of biofuels in the market has had a positive impact on this
industry


Feasibility in the usage of biofuels over ordinary fuels is
expected to drive the market
Reducing the Dependency on Oil
• Finland does not produce crude oil and is thus completely dependent on imports for its
domestic petroleum needs Expected to lead to
strong demand for
strong demand for
Petroleum Consumption renewable sources
USD/barrel
of energy
300 +0%

200

100

0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

• The petroleum consumption levels has not been growing due to the recent volatility in prices of
crude oil
d il
• Thus, a major shift has taken place with players becoming more inclined towards focusing on
developing alternative renewable fuel sources
Crude Oil Prices
USD/barrel
150

100
71.69
50

0
Sep‐07 Nov‐07 Dec‐07 Jan‐08 Feb‐08 Jul‐08 Sep‐08 Nov‐08 Dec‐08 Jan‐09 Feb‐09 Mar‐09 Apr‐09 May‐09 Jun‐09 Jul‐09 Aug‐09 Sep‐09


•Introduction
Introduction
•Market Overview
M k Ch i i
•Major Players
•Key Developments
Key Developments
•Appendix


Government Policies and Investments

VTT Technical Research Centre
and Other Investments Climate and Energy Policy

Key
Initiatives
TEKES ‐ Public funding
organization for research, Expected Introduction of Feed‐in‐
development and innovation in Tariff in Biogas Generation
Finland


Government Policy (1/2)

Climate and Energy Policy

• Introduced in November 2008
Overview • The strategy includes climate and energy policy measures for 2020 extended up to 2050
The strategy includes climate and energy policy measures for 2020 extended up to 2050
• The targets to be achieved by 2020 are based on the EU Directives

• 38% of total energy consumption will be via renewable energy
• Biofuels will account for 10% of total fuel consumption in the transport sector
Targets
T t • In addition, by 2020, the EU is to achieve the goal of improving energy efficiency by 20%
I dditi b 2020 th EU i t hi th l fi i ffi i b 20%
• Reducing its overall emissions of green house gases to at least 20% below 1990 levels
 Biofuels will play a major role as 20% of national emissions is accounted for by the transportation sector

• Presently, the actual emissions have exceeded the Kyoto commitment and the trend of emissions is on the
increase
i
• In 2007, the share of renewable energy in the gross final energy consumption was approximately 25% (360 PJ)
Current Scenario • Without new energy policy measures, the final consumption of renewable energy would increase to 380 PJ,
which would be approximately only 31% of the final energy consumption. In addition, green house gas emissions
would exceed the 1990 levels by 30%

• Government’s plans towards meeting EU target of 38% by 2020 with the largest contribution from biofuels
Governments  Requires renewable energy generation to rise up to 30TWh
– Biomass 16TWh, Wind energy 6TWh, Heat pumps 2,5 TWh, Waste‐to‐energy and energy efficiency 5TWh and Biogas 0,5TWh
Role • Climate and energy financing is expected to increase from USD 519 mn in 2007 to USD 654 mn in 2008 and to
USD 817 mn in 2009
USD 817 mn in 2009


Government Policy (2/2)

Expected Introduction of Feed‐in‐Tariff in Biogas Generation

Policy report has been submitted to the Minister of Economic Affairs, on 29 September 2009 for the
incorporation of a feed‐in‐tariff for electricity produced using biogas
incorporation of a feed in tariff for electricity produced using biogas

Overview Target Price Benefits

• Introduction of a market‐
• This will allow biogas
based guaranteed price • The planned target price
producers an assured long
system for the biogas feed‐in‐tariff
term (15‐20 years)
( y )
• The scheme is expected to
The scheme is expected to is expected to be USD 124/
is expected to be USD 124/
guaranteed price
almost completely remove MWh for power
• The payback time for a
producers price risk in production and ~ USD 44‐
typical biogas plant
accordance with electricity 59/ MWh for heating
investment will fall to 8–10
production for as long as • The policy prescription
years
the tariff scheme remains however does not include
• Created an attractive
in force biogas generation used for
model for large scale
• This is not expected to vehicles in the
investment allowing them
apply to small power transportation industry
to meet the energy target
plants


Programmes and Initiatives in R&D Activities (1/2)

TEKES – Public funding organization for research, development and innovation in Finland

• Tekes is the primary organization in Finland which promotes the development of bio‐
energy technology
energy technology
Overview • Tekes funding for bio‐energy technology projects amounted to ~USD 22 mn in 2006
• Its activities have been rising due to the growing interest among companies in transport
biofuels

• Tekes organized a new technology programme “BioRefine ‐ New Biomass Products”
• It is primarily intended to promote the development of biofuels for transport
Recent • This is scheduled to be executed between 2007‐2012
Programmes • The programme is expected to require an investment of USD 207 mn
• This initiative also plans on developing energy production as a by‐product of biofuel
production and bioenergy production associated with industrial processes in general

• The government organizations views forest‐based bioenergy as having the greatest
Other potential for increasing the use of renewable energy
Initiatives • In order to achieve these objectives, R&D work on the use of renewable energy is
expected to be increased significantly and forest energy technology will also be developed


Programmes and Initiatives in R&D Activities (2/2)

VTT Technical Research Centre

• In 2009, it initiated project NEMO (Novel high performance enzymes and micro‐organisms for conversion of ligno‐
Initiative cellulosic biomass to bioethanol) through collaborations with European research institutes and companies for the
cellulosic biomass to bioethanol) through collaborations with European research institutes and companies for the
development of next generation of biofuel

• It is aimed at developing manufacturing methods for liquid biofuel from agricultural and forestry waste, such as
straws and wood chips
Objectives
• Secondary objective is to tailor the metabolism of microbes so that they can produce large volumes of ethanol out
Secondary objective is to tailor the metabolism of microbes so that they can produce large volumes of ethanol out
of the biomass sugars, economically and efficiently

• The project is expected to continue till 2012 and is expected to require an investment of USD 12 mn
Investments
 It has already received funding of USD 8.8 mn from the EU

Other Investments by the Government

Finnish • Towards creating efficient energy technology, it plans on increasing its investments in R&D in the energy sector from
government USD 89 mn currently to USD 178 mn by the year 2020
• Allocated USD 11.8 mn as investment grants for the development of biogas in 2008
Ministry of
• In the period 2000‐06, a total of USD 51 mn was granted for different development projects
Agriculture and
Forestry • Provided USD 13 mn for piloting 2nd generation biofuel solutions over 2007‐08 and plans on continuing the funding
process by adding USD 7.5 mn/year
Ministry for
f • Granted USD 10 mn to NSE Biofuels Oy's demonstration plant, the total cost of which has risen to USD 31 mn from
f l ' l h l f h hh f
Industry USD 20 mn


•Introduction
Introduction
•Market Overview
M k Ch i i
•Major Players
•Key Developments
Key Developments
•Appendix


Players in the Market (1/8)

Company Snapshot: Biovakka
Corporate Information Financial Performance
Headquarters Espoo Revenue
R Revenue Profit
P fi
USD mn Profit / Loss USD ‘000
Founded 2002 3.0
3.0 1,000
Thermal and electric energy production and 2.5
Area of Expertise 0
manufacturing biofuels 2.0 1.8 1.7
‐1,000
Jyrki Heila – Chairman
J ki H il Ch i 1.5
15
Key People ‐2,000
Harri Hagman – CEO 1.0
0.5 ‐3,000
0.5
0.0 ‐4,000
2005 2006 2007 2008

Business Highlights
Business Highlights
• Planning on the development of a biogas facility
• The transport fuel will be distributed through its network via its associated company in cooperation with Gasum
• Its strategy is to develop bio‐energy in a rapid reproducible manner
• Focusing on the domestic market presently with plans of foraying into the international market
• Biovakka is driven by a number of biogas energy recovery project across the nation



Company Snapshot: Chempolis
Headquarters Oulu Revenue
Revenue Profit
fi
USD mn Profit / Loss USD ‘000
Founded 1995
8 4,000
6.8
Creates technology for the production of 3,000
6 5.5
Area of Expertise pulp, biofuels and biochemicals from non‐
2,000
wood and non‐food raw materials 4
1,000
Matti Sundberg – Chairman 2
Key People 0.2 0.1 0
Juhani Rousu – MD
0 ‐1,000
2005 2006 2007 2008

Business Highlights
Business Highlights
• Chempolis has been strongly focused on developing proprietary production technologies
• The companies core technologies include Formico‐Fib, Formico‐Bio and Formico‐Chem processes, which are designed
for environmentally friendly production of pulp, biofuels and biochemicals from non‐wood and non‐food raw
materials
t i l
• In Oulu, it developed the world’s first third‐generation biorefinery as a demonstration plant
 The biorefinery processes non‐wood and non‐food biomass materials to produce biofuel, biochemicals and fibers for paper production
 An investment of ~ USD 22 mn is expected in order to reach full production



Company Snapshot: Metso
Headquarters Helsinki Revenue
Revenue Profit
fi
USD bn Profit / Loss USD mn
Founded 1999
10 9.5 1,000
8.6
Area of Expertise Pulp and paper technology 8 800
6.2
Jukka Viinanen – Chairman 6 5.3 600
Key People
y p
Jorma Eloranta – P id
J El President and CEO
d CEO 4 400
2 200
0 0
2005 2006 2007 2008

Business Highlights
Business Highlights
• It is a global supplier of sustainable technology and services for mining, construction, energy, metal recycling and the
pulp and paper industries
• It is a global player with engineering, production, procurements, services business, sales and other operations in more
than 50 countries
th 50 ti
• Acquired a new Swedish technology that recovers a by‐product generated during wood pulping for reuse as biofuels
• Entered into a joint venture with UPM towards the production of bio‐oil from wood biomass for power and heat
generation



Company Snapshot: Neste Oil
Revenue
Headquarters
H d t Keilaranta
Keilaranta Revenue Profit
fi
Founded 1948
25 22.1 1,000
Manufacturing renewable fuels and oil 20 800
Area of Expertise 16.1 16.7
retail
15 12.4 600
Timo Peltola – Chairman 10 400
Key People
Matti Lievonen – President and CEO 5 200
0 0
2005 2006 2007 2008

Business Highlights
Business Highlights
• Developing a second generation biodiesel plant in Porvoo
 Total capacity is pegged at 170,000 tonnes/yr and total investment is expected to be USD 148 mn
 It is using NExBTL (Next Generation Biomass to Liquid) technology
– This will allow them to produce high quality diesel from vegetable oils and animal fats that avoids criticisms leveled at early biodiesel because it is sulphur
This will allow them to produce high quality diesel from vegetable oils and animal fats that avoids criticisms leveled at early biodiesel because it is sulphur‐
free, offers good frost resistance and has a high cetane number to ensure fast ignition
• Entered into a partnership with forest industry giant Stora Enso towards producing liquid biofuels from wood residues
at a total investment of USD 20.8 mn
• Plans on setting up a biodiesel plant at Rotterdam with a capacity of 800,000 tonnes/year at an investment of USD
995 mn which is expected to start operations from 2010
• Recent international operations ‐ Biodiesel refinery facility in Singapore, to begin production by 2010 at USD 817 mn



Company Snapshot: ST1
Revenue Profit
fi
USD mn Profit / Loss USD mn
Founded 2006 963.0
1,000 30
Energy consultancy to heat production as 800 722.0
Area of Expertise well as wind power to bioethanol 20
576.0
600
p
production 10
400
Mika Anttonen – Chairman 0
Key People 200
Kim Wiio – MD
0 ‐10
2005 2006 2007

Business Highlights
Business Highlights
• The only bioethanol producer in the world making biofuel from food waste (RE85/Refuel)
 This reduces CO2 emissions by up to 80% and is cheaper than the regular 95 octane unleaded gasoline
• It is Finland’s only producer of ethanol traffic fuel, using the company’s proprietary Etanolix technology
• It has three Etanolix plants in operation, and two more are expected to be developed by the end of 2009
• St1 is using its Etanolix concept to produce and market sustainable biofuels from industry sidestreams and waste
together with local partners
 Entered into a JV with Mitsui Engineering and Shipbuilding CO. Ltd. in Japan and Marquard & Bahl in Germany



Company Snapshot: UPM‐Kymmene
Revenue Profit
fi
Founded 1996
15 13.8 13.9 600
12.6
Developing renewable energy using 11.6
Area of Expertise 400
resources from the forest industry 10
200
Bjorn Wahlroos – Ch i
Bj W hl Chairman 0
Key People 5
Jussi Pesonen – President and CEO
‐200
0 ‐400
2005 2006 2007 2008

Business Highlights
Business Highlights
• In 2009, planned on investing in biodiesel production plants
 Their biodiesel technology will be based on Finnish syngas technology, where wood biomass is gasified and then syngas is converted to
biodiesel
 The basis of this technology is being developed by VTT Technical Research Center of Finland and the project is financed by Tekes
The basis of this technology is being developed by VTT, Technical Research Center of Finland and the project is financed by Tekes
 Capacity of these plants is expected to be ~100,000 tonnes/year
• Partnered with Lassila & Tikanoja towards developing a new ethanol and energy production plant utilizing commercial
and industrial waste
g p p g g
• Strong impetus on the development of efficient second‐generation fuels towards reducing emission levels in
accordance with the governments energy targets



Company Snapshot: Vapo
Headquarters Jyvaskyla Revenue
Revenue Profit
fi
Founded 1940
1,000 904.0 941.0 50
822.0
Supplier of local and renewable fuels, 800 40
679.0
Area of Expertise bioelectricity and bioheat, and
600 30
environmental business solutions
400 20
Key People Aarnio Esa – Production Director
200 10
0 0
2005 2006 2007 2008

Business Highlights
Business Highlights
• It is a leading supplier and producer of wood fuels, pellets and energy crops allowing them to provide customers a
wide range of biofuels based on their needs
• EU’s decided allowing the use of peat in biofuels when it is combined with wood fuels will allow the company to
develop its biodiesel plant
d l it bi di l l t
 It is expected to be operational by 2010
 The capacity of the plant is pegged at 170,000‐180,000 tonnes
 The project has been estimated to require a total investment of USD 735‐882 mn
 It is looking for a cooperation partner to supply wood
g p p pp y


Company Snapshot: Biower
Corporate Information Business Highlights
Headquarters Helsinki • Focuses on bioenergy plant development from initial
studies of plant site to final delivery of the functional
Founded NA
plant
Supplier of total solutions for biogas and
Area of Expertise • Works on a model where it networks with innovative
waste water treatment plants
partners, enabling the exploitation and combining of
Financials NA latest and most efficient environmental technologies
latest and most efficient environmental technologies
Key People Kari Vanhalakka – MD • Its partners include
• Clewer, HogforsSahala, Kompogas, SSG Sahala and
Wiser


•Introduction
Introduction
•Market Overview
M k Ch i i
•Major Players
•Key Developments
Key Developments
•Appendix


Key Developments

Date Development
Aug 2009 ABB’s Extended Automation System has allowed small bioethanol plants in Finland to use local food
waste to make a low‐carbon gasoline and help reduce greenhouse gas emissions from cars and trucks.
Jun 2009 Neste Oil developed a new Next Generation Biomass to Liquid technology which will allow its plants to
generate biodiesel by utilizing both waste vegetable oil and animal fat feedstock's individually or
together.
May 2009 Finnish paper maker Metsaliitto Group and utility company Vapo began a combined project towards
exploring the possibilities for the set‐up of a wood‐based biofuels factory in the Baltic Sea region.
Potential locations under investigation include Kemi and Aanekoski in northwestern and central Finland,
respectively, Jonkoping in southern Sweden and Kunda in northern Estonia.
Feb 2009 Chempolis established a third‐generation biorefinery as a demonstration plant towards producing biofuel,
biochemicals and fibres for paper production.
biochemicals and fibres for paper production
Jan 2009 Honeywell has declared that it will supply process control and safety systems for a new NSE Biofuels, a
partnership between Stora Enso and Neste Oil, research facility. In the demonstration plant, processes
will be developed in order to produce renewable biofuels from wood residues.
Nov 2008
Nov 2008 Fortum plans on investing USD 16.6 mn in a biofuel plant in Joensuu. It has forwarded that the 30 MW
Fortum plans on investing USD 16 6 mn in a biofuel plant in Joensuu It has forwarded that the 30 MW
plant will be going online by the end of 2009.


•Introduction
Introduction
•Market Overview
M k Ch i i
•Major Players
•Key Developments
Key Developments
•Appendix


Government and Government Funded Organizations in the
Biofuels Space
Governmental Organizations

Ministry of Trade and Industry Ministries of Agriculture and Forestry
• It is responsible for energy policy • Participates in biomass, technology, transportation,
• Funds the first full‐scale applications financial aid and advisory services
(demonstrations) resulting from the research and
development activities

Other Major Organizations

Agrarian Party
A i P MOTIVA FINBIO VTT ENERGY
VTT ENERGY TEKES

• Supports • Financed by the • Non‐profit • A government • Deals with
agricultural Ministry of organization controlled promotion and
diversification Industry and
y that promotes
p organization
g financial
efforts and the Trade for and develops that carries out support for
development of disseminating harvesting, technical and technological
biofuels information on transporting, techno‐ R&D
energy savings and processing economic R&D
of biofuels and
of biofuels and work
work
other biomass


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Finland Biofuels Market Driven by Large Forests and Climate Policy

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