BIOMASS FOR ENERGY

Why coal and gas should be replaced

by wood pellets and wood chips
WE CANNOT DO WITHOUT
THE COMBIMED HEAT AND POWER PLANTS
IN A FUTURE ENERGY SYSTEM
The amount of electricity from wind and solar power fluctuates
widely and is determined by whether the wind is blowing or the sun
is shining. The combined heat and power plants are a prerequisite
for having power when we switch on the light.
At the same time the combined heat and power plants have a substantial role to play
in supplying district heating to most Danish households this role cannot presently
be taken by wind and solar power. By replacing coal and gas with sustainable wood
pellets and wood chips the Danish combined heat and power plants contribute
significantly to the green transition and the overall reduction of carbon dioxide in
Denmark. Socioeconomically, this is done the most inexpensive and effective way
by utilising the existing efficient plants, instead of building new capacity.

To guarantee the CO2 reducing effect wood pellets and wood chips must come from
sustainable forestry. For us it is not an issue for discussion that the biomass we use
today has to be sustainable. This pamphlet provides a factual basis for the reasons
why the combined heat and power plants changeover to sustainable biomass is
advantageous, it describes where the biomass comes from, and what steps the
industry takes to ensure the sustainability of the biomass.

We wish you happy reading

DANISH ENERGY ASSOCIATION DANISH DISTRICT HEATING ASSOCIATION

ROSENRNS ALL 9 +45 35 300 400 MERKURVEJ 7 +45 76 308 000
DK-1970 FREDERIKSBERG WWW.DANSKENERGI.DK DK-6000 KOLDING WWW.DANSKFJERNVARME.DK
DENMARK DE@DANSKENERGI.DK DENMARK MAIL@DANSKFJERNVARME.DK
 BIOMASS FOR ENERGY | 3

BIOMASS IS A NECESSARY SUPPLEMENT TO

SOLAR AND WIND POWER
ELECTRICITY FROM COMBINED HEAT AND POWER PLANTS
HAS TO BE GREEN
Coal and natural gas will be
replaced by biomass: wood pellets,
wood chips, and straw

99,996% COMBINED HEAT AND POWER PLANTS WILL

BE ABLE TO SUPLY US WITH ELECTRICITY
OF THE TIME WHEN THE SUN AND WIND CANT
YOU CAN RELY
ON THE ELECTRIC IN FUTURE more electricity will come from solar and wind power
POWER AT YOUR SOLAR AND WIND POWER are dependent on weather conditions
HOUSE1 COMBINED HEAT AND POWER PLANTS provide electric power
and heating in our homes when the sun doesnt shine and the
wind is not blowing

SOURCE: THE ELECTRICITY COMPANIES FAULT AND DISRUPTION STATISTICS.

1
4 | BIOMASS FOR ENERGY

BIOMASS MAKES DISTRIC HEATING GREEN

60,000 KM
District heating pipes provide heating
for 1.6 million households which is 63%
of all Danish households 1

3.4 million
DANISH HOUSE-
IF ELECTRICITY AND HEAT
were produced separately,
the energy consumption
in Denmark would
52%
OF DISTRIC
increase by 11% 3
HOLDS HAVE HEATING IS GREEN
DISTRIC HEATING 2 DISTRICT HEATING TODAY
IS ENERGY EFFICIENT
By using biomass
and can store energy
we can increase the share
until its needed
substantially 2

1
SOURCE: DANISH DISTRICT HEATING ASSOCIATION 2 SOURCE: THE DANISH ENERGY AGENCYS ENERGY STATISTICS 2012.
3
SOURCE: INTERVIEW WITH MINISTER FOR CLIMATE, ENERGY, AND BUILDINGS IN FJERNVARME SUPPLEMENT TO BRSEN 23 JANUARY 2013.
 BIOMASS FOR ENERGY | 5

DISTRIC HEATING TODAY AND IN 2035 CHANGES

Breakdown by percentage of green fuels and fossil fuels 1 TAKE PLACE ON
THE PLANTS

2012

48%
FOSSIL FUELS
52%
GREEN FUELS

2035
100%
GREEN FUELS
Combined heat and power
plants replace coal and
natural gas with biomass,
IN ELECTRICITY AND and the consumer gets green
HEAT CONSUMPTION
IN DENMARK
heating and comfort without
lifting a finger.

1
SOURCE: THE DANISH ENERGY AGENCYS ENERGY STATISTICS 2012 AND ENERGY POLICY GOALS.
6 | BIOMASS FOR ENERGY

BIOMASS IS CLIMATE-FRIENDLY
Cycle of burning and reforestation As is the case for other kinds
of fuels, carbon dioxide is
emitted from production
and transport of wood

CO2 pellets and chips.

By replacing coal and natural gas
with sustainable wood pellets and
wood chips carbon dioxide emis
sions can be reduced by approx.
90%. And this includes emissions
from production and transport.1

WOOD PELLETS

Shipping generates the

lowest level of CO2 emission.
By replanting the forest it will absorb Denmark has many docks ideally
located at the largest CHP plants.
the carbon dioxide emitted by burning Thus, imported biomass can easily
the wood pellets and wood chips be shipped to Denmark.

1
SOURCE: E
 U-COMMISSION, 2010: ACCOMPANYING DOCUMENT TO THE REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT ON SUSTAINABILITY
REQUIREMENTS FOR THE USE OF SOLID AND GASEOUS BIOMASS SOURCES IN ELECTRICITY, HEATING AND COOLING.
 BIOMASS FOR ENERGY | 7

WHAT IS BIOMASS?
BIOMASS comprises all sorts of organic material generated
in the process of photosynthesis performed by plants.
FORESTS ARE ALSO
Thus, the term biomass covers products from forestry, energy crops,
AN INDUSTRY
residual products from agriculture, and biodegradable reuse. Biomass Forestry is not very different from
for energy is primarily wood pellets, wood chips, and straw. agriculture the crop is just larger and
has a longer life. But in forests almost
no ancillary materials such as fertilizers
and crop protections are used.
WOOD PELLETS
are made of pressed chipped
HOW ARE The wood products of the forest are
wood and sawdust. WOOD PELLETS a combination of timber and wood
for energy. The wood used for timber
All kinds of wood can be used for PRODUCED? and furniture has the highest value.
wood pellets production, but conifer The wood sold for energy purposes in
wood are typically used. Wood pellets are stan Denmark is most often tree of a lower
dardized, homogeneous quality from the forests the gnarled
trunks and trunks thinned out for the
WOOD CHIPS biological fuel produced purpose of other trees to get light and
are comminuted wood by pressing together small space to grow and develop top-quality
with a length of 5-50 mm. particles of wood. trunks.
And longer twigs (slivers) and No glue or other additives are Firewood collected from the forest as
smaller parts (fines). used in the production process. well as by-products from the wood
The high pressure alone produces industry are also used for energy
the strength and enduring quality purposes. Finally, woodland is used
of the pellets. This makes wood for other purposes than forestry, e.g.
pellets suitable for long distance nature, outdoor recreation, or ground-
transportation. water proctection.1

1
SOURCE: JOHANNSEN, V. K. (2013): INTERVIEW, THE UNIVERSITY OF COPENHAGEN.
8 | BIOMASS FOR ENERGY

WOOD PELLETS AND WOOD CHIPS

COME FROM GROWING FORESTS
In 2020 the wood to cover CONSUMPTION AND PRODUCTION
the consumption of wood
pellets in Europe is estima- OF WOOD PELLETS
ted to be 4% of the total Production and consumption of wood pellets in million ton2
global amount of wood cut
for industrial production.1

NORTH AMERICA 2020

< 4%
WOOD FOR PELLETS
EUROPE
CONSUMPTION 15

2012 35
4
11 15 20

PRODUCTION CONSUMPTION OF WOOD ESTIMATED ESTIMATED CONSUMPTION

PELLETS IN EUROPE PRODUCTION OF WOOD PELLETS IN EUROPE

EUROPE AND NORTH AMERICA will be main suppliers of wood

pellets and wood chips in the future. In these areas forests are
growing and national regulation ensures sustainable forestry.

96%
INDUSTRIAL WOOD FOR BUILDINGS,
HOUSES, AND FURNITURE ETC.

1
SOURCE: FAO GLOBAL FOREST RESOURCES ASSESMENT (2010).
2
SOURCE: PYRY, 2013 THE DYNAMICS OF GLOBAL PELLET MARKETS 2013.
 BIOMASS FOR ENERGY | 9

GROWTH IN DANISH, EUROPEAN AND NORTH SUSTAINABLE FORESTRY

AMERICAN FORESTS FROM 1090 TO 2010 Wood pellets and wood chips
for the Danish market is sold on
The volume of wood in the forests increases even the demand commercial terms and comes
for wood is rising.stigende eftersprgsel efter tr 2 from forests run as businesses.

A growing demand generates an

+11% increased supply and ensures
replanting due to the fact that the
forest owners business depends
+28% on having enough wood available
for sale.

The wood to cover Europes total

+76% consumption of wood pellets
represents today 2% of the wood
cut for industrial consumption
globally. In 2020 the consumption
will represent less than 4%, if
1990 2010 1990 2010 1990 2010 the amount of cut wood remains
DENMARK 1 EUROPE (EXCL RUSSIA) 2 NORTH AMERICA2 stable.

NORTH AMERICA AND SCANDINAVIA IN NORTH AMERICA ALONE the growth in forests is
have experienced a steep fall in demand 400 million m3 per year. This corresponds to 150 million
for wood for paper. This wood can now tons wood pellets per year which is 10 times Europes
be used for energy. total consumption per year today.3

1
SOURCE: THE UNIVERSITY OF COPENHAGEN, FOREST & LANDSCAPE (2013). 2
SOURCE: FAO GLOBAL FOREST RESOURCES ASSESMENT (2010).
3
SOURCE: PYRY, 2013 THE DYNAMICS OF GLOBAL PELLET MARKETS 2013.

10 | BIOMASS FOR ENERGY

WOOD PELLETS AND CHIPS

ARE PRIMARILY PRODUCED FROM RESIDUAL PRODUCTS
AND THINNED OUT TREES

In the future wood pellets will Cost price for conifer wood in 2010 prices (per ton) *
r epresent most biomass used EXAMPLE: WOOD FROM SOUTH EAST USA 1
in the combined heat and power
plants. Wood chips will primarily be
used in small and medium-sized Level 4
combined heat and power plants BIOMASS
and will mainly come from Den- FOR ENERGY
mark and neighbouring areas. 50 DKK
Forestry industry mainly supplies
timber for houses and furniture. Level 3
WOOD
Timber prices are substantially
FOR PAPER
higher than the price of wood for
energy. 60 DKK
Wood that cannot be used for
timber, furniture or paper can be
used for energy production.
LEVEL 2
QUALITY
TIMBER
DID YOU KNOW THAT 100 DKK
Plantations, which represent 7%
of the worlds forest areas, produced
LEVEL 1
just about two thirds of industrial
TIMBER
wood for energy purposes among
other things.2 150 DKK

1
SOURCE: TIMBERMARTSOUTH 2013 OG DONG ENERGY EMPIRICAL FIGURES. 2 SOURCE: EVANS, J. 2009 (ED.): PLANTED FORESTS. USES, IMPACTS AND SUSTINABILITY. FAO/CABI.
* NOTE: ALL PRICES ARE STUMPAGE WHICH IS RIGHT TO HARVEST. THE PRODUCER HAS TO ADD HARVEST AND TRANSPORT BEFORE THE PRODUCT IS READY FOR FURTHER PROCESSING.
 BIOMASS FOR ENERGY | 11

ENERGY INDUSTRY ENSURES SUSTAINABLE

DANISH AND IMPORTED BIOMASS
PRINCIPLES FOR SUSTAINABLE
FORESTRY AND SOURCING
The Danish energy industry only wants to use
sustainable biomass and thus purchase and use of wood
pellets and chips are based on the following principles: DID YOU KNOW THAT
A number of European energy
Secure a significant CO2-reduction in relation to use of companies, including DONG Energy,
Vattenfall, and E.ON have formed
coal and gas on combined heat and power plants. This Sustainable Biomass Partnership
includes calculations of the carbon footprint in all parts (SBP), and have among other things,
of the value chain from forest to incineration. initiated a certification scheme for
production and purchase of wood
 uarantee that the productivity of the forests is
G pellets.
preserved by replanting.
The certification scheme Is
expected to come into force in 2014.
 uarantee that forestry has minimal impact on the
G
ecological system and assurance of health and vitality
in the forests.
DENMARK has used biomass
Forestry must ensure conservation of biodiversity. sustainably in generation of
electricity and heat for more
 ompanies and suppliers have to respect local and
C than 20 years. We will con-
national legislation. tinue to do so, and in future
wood pellets and wood chips
will represent a larger part of
this production.
12 | BIOMASS FOR ENERGY

DENMARKS C02 REDUCTION GOALS

BIOMASS IS AN THE ENERGY AGREEMENT, SIGNED IN
INEXPENSIVE AND 2012, WILL MAKE SURE THAT DENMARK
EFFECTIVE WAY REDUCES CO2-EMISSIONS WITH 34%
TO REDUCE IN 2020 IN RELATION TO 19901
DENMARKS
CO2-EMISSION
CO2-EMISSION IN DENMARK
MILLION TONS
80

70

60
34%
50 69,3
40

30

20 45,7
10

BIOMASS IN 1990 2020

COMBINED HEAT
AND POWER PLANTS IS BY 2020 Denmark has to reduce CO2
emissions with 10.5 million tons CO2*
A KEY MEASSURE TO ACHIEVE to reach the goal of a 34% reduction i 2020.
THE C02 REDUCTION GOALS

1
SOURCE: THE DANISH ENERGY AGENCYS ENERGY STATISTICS AND THE ENERGY AGREEMENT 2012.
* NOTE: THE 10.5 MIO. TONS ARE THE DIFFERENCE BETWEEN DENMARKS CO2 AND THE 34% REDUCTION GOAL IN 2020.
 BIOMASS FOR ENERGY | 13

INEXPENSIVE GREEN ENERGY

PRICE OF ELECTRICITY PRODUCTION1
PRODUCTION COSTS FOR ONE KWH ELECTRICITY BY TECHNOLOGY
RE/KWH
250

200

150

100

50

GREEN
0 TECHNOLOGIES
ON-SHORE WINDMILLS WOOD PELLETS (CHP) OFF-SHORE WIND MILLS PHOTOVOLTAIC CELLS (LARGE SYSTEMS)

COMBINED HEAT AND POWER PLANTS OTHER GREEN

can easily and cost-effectively be converted SOLUTIONS
into biomass-based production as existing require investments
plants and infrastructure are utilised. in new plants.

1
SOURCE: THE DANISH ENERGY AGENCYS CATALOGUE OF TECHNOLOGY DATA AND THE ENERGY AGENCYS SCENARIOS FOR FUEL PRICES.
14 | BIOMASS FOR ENERGY

BIOMASS FOR ENERGY

CREATES GROWTH, JOBS, AND INNOVATION
IN DENMARK we have
the experience and great
competence in using
biomass for energy in
a sustainable manner:
Agriculture and forestry increase
profits and supply the biomass.
STRAW, WOOD AND RESIDUE are fed into combined heat and
power plants, bio refineries, and biogas plants and come out as
electricity, heat, 2G-bioethanol, bio fuels for ships, aeroplanes,
and advanced biomaterials which can replace oil and chemicals
in products such as plastic bottles and textiles.

Energy companies use the Bio refinery

biomass in the combined heat Straw
and power plants for production
of electricity and heat and
Wood
develop advanced technologies.

Danish heating plants have

used straw, wood chips, and
wood pellets for efficient heat Biogas plant
production since the 1980s. BIO
Danish universities are Waste Combined heat
contributory in providing and power plant
cutting-edge research in the
field.

Danish world leading

biotechnology companies
supply process technology,
BIO
advisory, and enzymes.
Electricity 2G-biofuels Bio-material
/ heating Transport Textiles / Plastic
READ MORE ABOUT BIOMASS FOR ENERGY
WWW.DANSKENERGI.DK/BIOMASSE I WWW.FJERNVARME.DK

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QUESTIONS ABOUT BIOMASS FOR ENERGY
Why use biomass and not solar and wind power?
Solar and wind energy is a good thing but we also need green
power when the sun doesnt shine and the wind is still. By using
biomass the combined heat and power plants secure the sup-
ply and at the same time they produce green district heating
for 3.4 million Danish people.
Can we reduce CO2 emission by replacing coal
and natural gas with biomass?
Yes, CO2 emissions are reduced substantially. When new trees
are planted the forests will absorb the carbon dioxide emitted
from the burning of wood pellets and wood chips. Wood pellets
and chips are mainly produced of by-products and timber
reuse from sustainable forestry and absorption time can be
less than one year. On the contrary, CO2 emissions from fossil
fuels are an extra emission to the atmosphere and contribute
to climate changes.
Will there be enough forests when more
combined heat and power plants start to
use biomass?
Yes, the biomass will be available as long as we use wood
pellets and chips from forestry managed in a responsible man-
ner and where new trees are planted. The consumption of wood
pellets and chips in Europe is produced in Europe and North
America. Here the forests are growing and in 2020 it is estima-
ted that the total consumption of wood pellets will represent
less than 4% of the total amount of wood cut for industrial use.
How can we make sure that biomass
is sustainable?
Energy companies have to make demands for responsible
forestry to ensure that the forests are replanted and the local
environment is not damaged. In areas such as Europe and
North America where wood pellets and chips are produced,
legislation and tradition for responsible forestry ensures
sustainable biomass production.
Where does biomass such as wood pellets and
chips for Danish power plants come from?
Today the greater part of wood pellet consumption in Europe
comes from Europe. In future a larger part will be imported
from North America. Wood pellets will primarily be used in
small and medium-sized district heating plants and will mainly
come from Denmark and neighbouring areas.
Does it make sense to ship wood pellets
all the way from the USA?
Yes, the large amounts of sustainable biomass available in the
USA and CO2 emissions from production, transport and burning
of wood pellets from the USA are significantly lower than CO2
emissions from producing, transporting and burning coal in a
power plant. Wood pellets are shipped from the USA, shipping
is the means of transport which emits less CO2, and Denmark
has many docks ideally located close to the largest combined
heat and power plants.