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picture credits: Standardkessel GmbH, picture on the left: Wood Power Plant Eberswalde

The Market for Biomass Power Plants in Europe

Market Volumes Projects Strategies Trends

xtract E

Cologne / Oberhausen December 2009

ecoprog
ecoprog / Fraunhofer UMSICHT The Market for Biomass Power Plants in Europe Generating heat from the incineration of biomass is spreading quickly in Europe. During the last five years, more than 350 biomass power plants with a capacity of more than 2,000 MW el came into operation. A further growth by up to 3,000 MWel can be expected for the next five years. New plants are developed first and foremost because of the increased compensation for electricity fed into the grid for electricity from biomass. The EU member states have to drastically increase the proportion of electricity from renewable energies due to the specifications of the Kyoto protocol and the EU Renewable Energy Directive. In contrast to water, wind and sunlight, biomass is the only energy source which does not depend on the weather and guarantees a stable energy production. Considering this development, ecoprog and Fraunhofer UMSICHT evaluated the European market for biomass power plants in detail. In developing the survey, the project partners did not only contribute their own knowledge of the market, but did also integrate administrations, associations and companies from the fields of forestry industry and plant construction. On the basis of our market knowledge and specific evaluations we offer an up-to-date analysis of numbers, facts, estimations and trends in the European market of operators and plants for the conversion of biomass. This analysis is of interest for disposal companies, suppliers, operators, associations, research institutes and consultants. The market study on biomass power plants in Europe includes the following specific information: A detailed analysis of the most important political, economical, managerial and technical trends in constructing and operating biomass power plants. A precise definition of current and future market volumes up to and including 2014 by countries on the basis of a transparent and comprehensible methodology. A listing of more than 160 new construction projects over 40 of them are under construction, more than 20 are approved and over 70 are planned or under discussion. The presentation of almost 600 operational biomass power plants, including essential technical data like information on capacities, producers, start of operation and contact details. These plants constitute almost 90 % of the installed electrical capacities in biomass power plants in Europe. An analysis and presentation of the most important operators and plant manufacturers of biomass power plants in Europe.

The study is available in German and English from 2,900 plus V.A.T. Contact: Mark Ding ecoprog GmbH Tel. +49 221 788 03 88- 11 m.doeing@ecoprog.com

Contents
Foreword Management Summary 1
1.1 1.2 1.3 1.4

10 12 14
14 17 17 19

Background
Differentiation Reasons for incinerating biomass Biomass fuels The potential of biomass in Europe

2
2.1 2.2 2.3 2.4

Systems engineering
Supply and processing of the fuel Furnace Generation of energy Flue gas cleaning

22
22 24 27 27

3
3.1 3.2 3.3

Economic characteristics
Investment costs Current costs Revenues

29
29 31 33

4
4.1 4.2 4.3

Subsidising the conversion of biomass

International legal framework Compensation for electricity fed into the grid in Europe Other types of promotion

36
36 40 46

5
5.1 5.2

The market for biomass power plants in Europe

Existing plants Development of the market volume

47
47 51

6
6.1 6.2

Competitors and market shares

Operators Plant constructors

56
56 59

National markets
65 68 70 74 99 103 110 115 117 120 122 129 135 138 140 Netherlands Norway Austria Poland Portugal Romania Sweden Switzerland Slovakia Slovenia Spain Czech Republic Hungary United Kingdom Cyprus

64
142 149 152 167 170 174 177 196 201 203 206 210 215 217 224

Belgium Bulgaria Denmark Germany Estonia Finland France Greece Ireland Iceland Italy Latvia Lithuania Luxembourg Malta

Data and methodology Appendix: Listing of known projects in Europe Glossary Selected literature Register of plants

226 228 231 232 234

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Table of Figures
Figure 1: Biomass in the energy industry Figure 2: Area under investigation Figure 3: Fuels according to calorific value and density Figure 4: Potential of scrap wood by countries Figure 5: Relative woodiness by countries Figure 6: Example of a biomass power plant Figure 7: Example of a grate incinerator Figure 8: Example of a fluidised bed combustion Figure 9: Example of a pyrolysis process Figure 10: Overview of investment costs Figure 11: Development of old growth prices in Germany 2006-2009 Figure 12: Exemplary calculation of the annual current costs for a plant with a capacity of 10 MWel Figure 13: Exemplary calculation of plant revenues Figure 14: Goals of the Kyoto protocol and state of implementation Figure 15: Objective for the proportion of energy from renewable sources in comparison to gross final energy consumption Figure 16: Compensation for electricity fed into the grid for biomass by countries Figure 17: Biomass power plants by countries Figure 18: Electrical capacity of biomass power plants by countries Figure 19: Average plant size by countries Figure 20: Electrical capacity of biomass power plants per inhabitant Figure 21: Market development 2004-2014 Figure 22: Market development by regions Figure 23: Market volume per country Figure 24: The largest operators of biomass power plants in Europe Figure 25: The most important plant constructors for biomass power plants Figure 26: Market forecast Belgium Figure 27: Power generation by energy sources in Belgium Figure 28: Project outlook Belgium Figure 29: Power generation by energy sources in Bulgaria Figure 30: Market forecast Denmark Figure 31: Power generation by energy source in Denmark Figure 32: Project outlook Denmark Figure 33: Market forecast Germany Figure 34: Power generation by energy source in Germany Figure 35: Development of the number of subsidised plants in Germany Figure 36: Project outlook Germany Figure 37: Power generation by energy source in Estonia
The Market for Biomass Power Plants in Europe ecoprog GmbH, www.ecoprog.com

14 16 18 19 20 23 24 25 26 30 31 32 34 37 38 42 47 48 49 50 51 52 53 57 59 65 65 66 68 70 70 71 74 74 75 76 99

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Figure 38: Market forecast Finland Figure 39: Power generation by energy source in Finland Figure 40: Allocation of fuels in the power generation from biomass in Finland Figure 41: Project outlook Finland Figure 42: Market forecast France Figure 43: Power generation by energy source in France Figure 44: Project outlook France Figure 45: Power generation by energy source in Greece Figure 46: Power generation by energy source in Ireland Figure 47: Power generation by energy source in Iceland Figure 48: Market forecast Italy Figure 49: Power generation by energy source in Italy Figure 50: Development of the number of biomass power plants in Italy Figure 51: Project outlook Italy Figure 52: Power generation by energy source in Latvia Figure 53: Project outlook Latvia (...) Figure 70: Market forecast Sweden Figure 71: Power generation by energy source in Sweden Figure 72: Project outlook Sweden Figure 73: Power generation by energy source in Switzerland Figure 74: Market forecast Switzerland Figure 75: Project outlook Switzerland Figure 76: Power generation by energy source in Slovakia Figure 77: Power generation by energy source in Slovenia Figure 78: Market forecast Spain Figure 79: Power generation by energy sources in Spain Figure 80: Project outlook Spain Figure 81: Power generation by energy source in the Czech Republic Figure 82: Market forecast Czech Republic Figure 83: Project outlook Czech Republic Figure 84: Power generation by energy source in Hungary Figure 85: Project outlook Hungary Figure 86: Market forecast United Kingdom Figure 87: Power generation by energy source in the United Kingdom Figure 88: Known biomass power plant projects in the United Kingdom Figure 89: Power generation by energy source in Cyprus 177 177 179 196 197 198 201 203 206 206 208 210 211 212 215 216 217 217 218 224 103 103 104 105 110 110 112 115 117 120 122 122 123 124 129 130

The Market for Biomass Power Plants in Europe ecoprog GmbH, www.ecoprog.com

Extract Chapter 1, Background

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today, a part of the reforested tree population is cultivated for energy recovery. In doing so, types and cultures that produce as much biomass as possible in the shortest period of time possible are emphasised. In most of the cases, however, it is not possible to draw a distinct line between a forestry for energetic use and a forestry for other purposes. The utilisation of other fuel crops cultivated exclusively for the purpose of incineration does not play a considerable role so far. Up to now, there are only a few pilot projects in which the operation of biomass power plants depends on such a kind of biomass. One example is the cultivation of the fast growing elephant grass (Miscanthus giganteus). We do not expect a fundamental economic importance of such projects in the analysed period of time in this survey. Accordingly, in the public (and sometimes political) perception, the incineration of solid material clearly differs from anaerobic fermentation (biogas) and synthesizing (biodiesel) both using fuel crops to a considerably larger extent. The incineration of solid material benefits from the fact that the discussion of electricity vs. plate, which argues that food prices go up with the increased cultivation of fuel crops, did barely affect this technology so far.

1.1

The potential of biomass in Europe

The technical potential and, consequently, the theoretical market for the energy recovery of biomass in Europe clearly exceeds the existing activities in most of the countries.

Figure 4: Potential of scrap wood by countries

1,000 m 120,000 100,000 80,000 60,000 40,000 20,000 n/a n/a Net Forest growth, of which non-fellings (=growth of forest stand) fellings (=removal)

* data of 2000, source: Eurostat

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Extract Chapter 5, National markets, Netherlands

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Netherlands
Inhabitants Net forest growth (1,000 m) thereof proportion of felling (%) Share of RE at final energy consumption 2005 (%) 16,493,156 2,230 2.4 Number of biomass power plants Electrical power from BMPP (MW) EU-Goal: Share of RE 2020 (%) 25 ca. 180 1.87 14.0

70 Share of biomass in power generation (%)

With the coming into effect of the new support programme SDE in 2008, biomass projects do have good prospects again in the Netherlands. The Dutch government decided the support of renewable energies in 2003 already. The programme was named MEP at that time and furthered the generation of electricity from renewable energies as well as the use of cogeneration by subsidised feed-in prices for a guaranteed period of time (ten years). However, the subsidisation was stopped in August 2006 because the until then approved projects did already meet the national goal of a nine per cent renewable energies proportion of the total electricity production until 2010. There were no subsidies left for by the time unapproved projects.
Figure 57: Market forecast Netherlands
Number of plants 30 25 20 150 15 100 10 5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* 2011* 2012* 2013* 2014* * Prognosis, source: ecoprog 50 Number of plants Power generation [Mwel] 200 Power generation [MWel] 250

A successor programme was not created until 2007. The SDE (stimulering duurzame energie Stimulation of sustainable energy) was implemented in order to make a contribution to the goal of reducing CO2 by 30 per cent until 2020. Supporting renewable energies seemed to be a promising way to reach this goal when considering the success of the MEP project. So far, the majority of Dutch biomass for the generation of energy in the coal-fired power stations Maasvlakte, Amer, Borssele 12, Gelderland, Willem-Alexander and Hemweg 8

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Extract Chapter 5, National markets, Latvia

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Additionally, the ministry of economics-associated commission for public institutions assigned a total of 19 licences for the construction of biomass power plants since 2005. So far, however, only the three mentioned projects were erected having a licence does not mean that one has to construct a plant.

Figure 52: Power generation by energy sources in Latvia

Power generation by energy sources

renewables coal oil gas nuclear other 0% 43%

0%

of which allocation within renewable energies 2% 1% 0%

biomass biogas, incl. landfill gas liquid biofuels waste geothermal

57%

solar hydro & tide 97%

data for 2006, source: Eurostat

wind

One can assume an increased implementation of these projects in the future, even though on a low level. However, based on our current knowledge, it seems to be unrealistic that more than one or two projects will be implemented per year.

Figure 53: Project outlook Latvia Plant Alksne Jaunalksne Jkabpils 2 Jelgava Jelgava 2 ekava Madona 2 Mlpils Riga 2 Riga 3 Riga 4 Sarkau Capacity (MWel) 1.80 2.00 1.40 1.96 1.96 2.00 2.20 4.00 1.96 3.99 2.40 1.96 Start n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Status approved approved approved approved approved approved approved approved approved approved approved approved Remarks Licensee SIA "LIKO-E" Licensee SIA "Eko Energija E" Licensee SIA "OUKALNS" Licensee SIA "M3J" Licensee SIA "ROSSBA ZSM" Licensee AS "Putnu fabrika Kekava" Licensee SIA Madonas bio enerija Licensee SIA First Malpils Power Licensee SIA Bioenerijas Eksporta Sabiedrba Licensee SIA Kronospan Energy Ltd Licensee Akciju sabiedrba RGAS SILTUMS Licensee SIA Bioenerija-08

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Extract Chapter 5, National markets, Sweden

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Biomass power plants in Sweden:

lvsbyn Status: active Power production capacity (MW el): 3,00 Operator: lvsbyns Energi Munksj Paper AB Strandvgen 7 660 11 Billingsfors Tel.: +46 531 376 00 Fax: +46 531 305 17 info.spx@se.munksjo.com http://www.munksjo.se

Arvika Status: active Start of operation: 2009 Nordic paper motfors 670 40 motfors Tel.: +46 (0)571 128 00 Fax: +46 (0)571 310 10 Owner: 37.5% Amotfors Bruk (100% Nordic Paper), 22% Keppel Integrated Engineering. The remaining shares are owned in equal parts by three financial institutions.

Boden Status: active Power production capacity (MW el): 5,00 Bodens Energi Slipvgen 7 961 38 Boden Tel.: 0921-624 50 info@bodensenergi.se http://bodensenergi.se

Aspabruk Status: active Start of operation: 2008 Power production capacity (MW el): 25,20 Incineration: back-pressure turbine Munksj Aspa Bruk AB 696 80 Aspabruk Tel.: +46 583 815 00 Fax: +46 583 503 35 +46 583 503 35 http://www.munksjo.se

Bollns Status: planned Start of operation: 2011/12 Bollns Energi AB Aseavgen 4 821 80 Bollns Tel.: 0278-251 13 Fax: 0278-251 95 info@bollnasenergi.se http://www.bollnasenergi.se/

terbruket Status: active Power production capacity (MW el): 4,50 Operator: Kraftringen Produktion AB

Bors Status: planned Power production capacity (MW el): 45,00 Fuel: wood Bors Energi och Milj 501 17 Bors Tel.: 033 35 81 00 Fax: 033 35 71 61 kund@borasenergimiljo.se http://www.borasenergimiljo.se/

Billingsfors Status: active Start of operation: 2008 Power production capacity (MW el): 4,50 Incineration: back-pressure turbine

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Extract Chapter 5, National markets, Germany

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Baruth Status: active Start of operation: 2009 Power production capacity (MW el): 8,365 Fuel: bark Manufacturer Incineration: Urbas Energietechnik GmbH Klenk Holz AG Mr. Dr. Gnter Hegemann, Vorstandsvorsitzender Birkenpfuhlheide 1 15837 Baruth Tel.: +49 7977 72 0 Fax: +49 7977 1577 info@klenk.de www.klenk.de

Start of operation: 2010 Fuel: residual wood

Bad Saffelstein Status: active Start of operation: 2006 Power production capacity (MW el): 0,55 Heat production capacity (MW th): 3 Fuel: biomass materials Manufacturer Incineration: Gammel Engineering GmbH Power generation: additional power generation by ORC Biomasse Heizanlage Bad Staffelstein GmbH Mr. Robert Haselberger Tel.: +49 9573 9619 11

Bad Tlz Status: active Start of operation: 2007 Power production capacity (MW el): 0,36 Heat production capacity (MW th): 2,2 Fuel: biomass materials Manufacturer Incineration: V.A.S. Verfahrenstechnik und Anlagensysteme Gesellschaft m.b.H. Power generation: additional power generation by ORC Stadtwerke Bad Tlz GmbH Mr. Michael Hofmann, Stadtwerksleiter General Plattern Strasse 83646 Bad Tlz Tel.: +49 8041 797 200 www.stw-toelz.de

Baruth/Mark Status: active Start of operation: 2002 Power production capacity (MW el): 18,565 Fuel: wood Manufacturer Incineration: Standardkessel Lentjes GmbH Unitherm Baruth GmbH An der Birkenpfuhlheide 3 15837 Baruth/Mark Tel.: +49 33704 70700 Fax: +49 33704 70707

Bayreuth Status: active Power production capacity (MW el): 0,32 Heat production capacity (MW th): 2,66 Fuel: forest wood chips, saw mill residue Power generation: additional power generation by ORC BHB Biomasse Heizwerk Bayreuth GmbH Mr. Johannes Scherm Adolf-Wchter-Strae 1a 95447 Bayreuth Tel.: +49 921 640 11

Baden-Baden Status: active Start of operation: 2005 Power production capacity (MW el): 4,4 Heat production capacity (MW th): 3,5 Fuel: biomass materials Incineration: rotating grate Manufacturer Incineration: Wrtsil Biopower Stadtwerke Baden-Baden Waldseestrae 24 76530 Baden-Baden

Beeskow

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Extract, Register of plants

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Register of plants
Aachen Abbiategrasso Abtenau Achern Admont Admont 2 Alemere Poort Alkmaar Allensteig Almeria Alperstedt Altenmarkt Altenstadt Althofen lvsbyn Amel Amotsfors Amstetten Arneburg Arta Terme Aschach Asiago Aspabruk Assens Assling terbruket Augsburg Aveiro Bad Arolsen Bad Kstritz Bad St. Leonhard Bad Tlz Bad Wildung Baden-Baden Baena Bando d'Argenta Baruth Baruth/Mark 76 123 151 76 151 151 144 142 151 204 76 151 76 151 176 66 189 152 76 123 152 125 176 71 152 176 76 168 96 76 152 76 77 77 204 123 77 77 Beeskow Beetgum Bergkamen Berlikum Berlikum II Berlin Berlin-Rudow Billingsfors Bischofferode Bischofshofen Boden Bors Borken I Borken II Borlnge Borlnge Brand Brandenburg Brand-Erbisdorf Bregenz Brigg Brilon I Brilon II Bristol Briviesca Brunflo Brunsbttel Buchen Cacia Calau Calbe Calenzano Calimera Cham Clingen Clbe-Schnstadt Crotone Cuijk 77 142 77 142 142 77 77 176 78 152 189 189 78 78 176 176 152 78 78 152 215 78 78 214 204 189 79 79 168 79 79 123 125 96 79 79 123 142

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