The future of bioenergy in Sweden. Background and summary of outstanding issues

This report is intended to give a background to discussions about the future of bioenergy in Sweden, to be used by the Swedish Energy Agency in the planning of future efforts in the biofuel supply chain. An overview of the present supply and use of biomass in Sweden is given, and trends and prospects for increased use of bioenergy in Sweden are assessed. Both sources of increased bioenergy demand and possibilities for increased domestic supply are treated. Biomass contributes about 110 TWh, or one fifth of the Swedish energy supply. Biomass is mainly used for energy within the forest industry, in district heating plants, in the residential sector and for electricity production. More than 50% of the heat comes from biomass today. Based on a number of studies it is concluded that there is a potential for a substantial increase in the Swedish biofuel use, by introduction of new forest management practices and a re-orientation of agriculture. Calculations indicate that there is scope for a substantial increase in bioenergy use in Sweden and that the Swedish bioenergy potential is large enough to accommodate such an increase. However, related to the aspirations in the EC biofuel directive and the hopes that Sweden by taking early steps could become a major supplier of liquid biofuels in EU, it is also shown that Sweden to a significant extent would need to rely on imported bioenergy (biomass feedstock at the magnitude 100 TWh) in order to supply a biofuels industry capable of providing for the domestic market and also exporting substantial volumes of liquid biofuels to Europe. The prospects for a large-scale import of biofuels are discussed based on an analysis of the potential global biomass production and use in forestry and agriculture. A number of issues of great importance for increased biomass use are discussed - competitive land uses, availability of water, international trade rules, and international politics. The report also discusses additional and new uses of biomass as raw material for the production of renewable materials and chemicals in addition to the established uses in for instance the forest and wood material industries. Europe and the US are promoting biomaterials in agricultural and energy policy measures, and high oil prices have increased their competitiveness. A large interest is addressed to 'biorefineries' as an efficient component in the production of both biofuels and materials. The report is concluded with a discussion of outstanding issues and proposals for further studies.