Bioenergy opportunities in Australia – a European perspective 18 September 2014
What has driven the use of biomass for energy in Europe?
Bioenergy represented 68%1 of the total gross inland consumption of renewables in 2011 - 115 Mtoe was biomass and renewable waste.
Biomass accounted for 8.4 % of the total final energy consumption in Europe in 2011. In some countries such as Estonia, Latvia, Finland and Sweden this is above 25%. Compared to 4%2 of total primary energy supplies in Australia (predominantly firewood?) 95.5% of the final heat consumption from renewables is biomass for heat. More than 50% of biomass for heat is consumed by households. The EU pellet consumption for heating has grown by more than one million tons per year since 2010, amounting to 8 million tons in 2012.
1. AEBIOM – European Bioenergy Outlook 2013 2. Bioenergy in Australia – Status and Opportunities, 2012, Stucley et al
What has driven the use of biomass for energy in Europe?
1. Fossil Fuel prices 1. Imported coal – pellets 2. Natural gas, LPG, Heating Oil – biogas, woodchips, pellets
2. Demand for ambient heating 3. Climate change / security of supply - regulation 4. Integrated forestry industry creates feedstock and infrastructure 5. Quantity of feedstock / Proximity of Feedstock to demand 6. Preponderance of SMEs and manufacturing – industrial heat loads 7. Smaller towns/cities
8. DISCUSSION – Where does Australia compare favourably? Where not? What
does this mean for the future development of bioenergy projects in Australia 1. Scale 2. Development expertise / commitment 3. Innovative technologies / business models
Fuel Cost Comparison
Heating fuel costs in Germany Vs Australian Gas:
Source: http://www.depi.de/media/filebase/files/infothek/images/Heizkostenentwicklung-Deutschland.jpg
Note European Energy Portal reports Heating Oil in Germany at 8.5c/kWh in January 2014
Aust Res. Nat. Gas 4.0ct/kWh
Demand for Ambient Heating
-
50
100
150
200
250
300
350
400
450
500
1 2 3 4 5 6 7 8 9 10 11 12
Heating Degree Days
Munich Melbourne London
A longer and more intense heating season facilitates investment in biomass boilers and stoves
Government support for renewables, including heat…
Source: IHS Emerging Energy Research
Government support for renewables, including heat…
Co-firing Dedicated
Biomass
CHP / Heat Biogas Carbon Tax
UK £90/MWh e £115/MWh e £135/MWh e
OR
2-12p/kWh
thermal
£135/MWh e
equivalent
£18/tonne
CO2 floor
Germany €110/MWh e
FIT
€140-
160/MWh
€8/tonne
CO2
Netherlands €116/MWh e
FIT and now
a RET
€90-
150/MWh
€8/tonne
CO2
Belgium
(Flanders)
€90/MWh e €110/MWh €8/tonne
CO2
Denmark €70/MWh e Agreements
with local
municipalities
for renewable
heat
production
€100/MWh €8/tonne
CO2
Note: Amounts are effective revenue from Feed in Tariffs or RECs plus wholesale electricity price
Policies also address Security of Supply issues e.g. Gas from Russia!
Demand for pellets is not so seasonal…
10% discount in prices during late Winter / Spring drives round year deliveries
Source: ProPellets Austria
200
205
210
215
220
225
230
235
240
245
0
5
10
15
20
25
30
35
40
1 2 3 4 5 6 7 8 9 10 11 12
€/t
on
ne
Pe
lle
t to
nn
es
'0
00
s
Austria - Monthly Sales Volume and Price Volatility average since 2000
Pelletsales
J F M A M J J A S O N D
EU Forestry Production
0
200
400
600
800
1000
1200
2010 2020 2030
Energy
Wood based panels
Paper and paperboard
Sawnwood
EU Wood Demand m3
Source: The European Forest Sector Outlook Study II 2010-2030, UNECE and FAO
Integrated forest products industry ensures competitive feedstock and infrastructure availability
Distribution of productive forests
Productive forests are widespread and usually located close to demand centres
Productive forests are normally a long way from demand centres
Role of Manufacturing and SMEs
% of GDP Manufacturin
g
SMEs
Australia 8% 33%
Germany 22% 53%
Finland 15% 57%
Sweden 16% 57%
Italy 16% 68%
UK 10% 50%
EU 58%
Germany’s Mittelstand companies (SMEs) contribute around 30% of GDP. It is estimated that about 1500 German companies occupy a top three position in their respective market segment worldwide. Major industries include automobiles, machinery, electrical equipment and chemicals. All of which generally require large quantities of heat and electricity.
Source: European Commission, ATO
Demand centres have easy access to feedstock
• In Germany the top 10 cities make up 9% of population. There are 100 cities with >100,000 people.
• In Australia they make up 75% of the population. In Australia 16 cities have >100,000 people.
How does Australia compare?
Now? Future?
Fossil Fuels
Ambient Heating
Regulatory Support
Forestry Industry
Feedstock Quantity /
Proximity
Manufacturing / SME
City Size
DISCUSSION – What does this mean for the future development of bioenergy projects in Australia?
1. Number of projects 2. Scale 3. Development expertise / commitment 4. Innovative technologies / business models
Darren Giri Managing Director Tel. +61 432 020 632 [email protected] phoenix-bio.com Phoenix Bio Pty Ltd ABN 55 168 267 436 Suite 504, 365 Little Collins Street Melbourne VIC 3000 Australia