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International trade in biomass for energy production: The local and global context

Proskurina, Svetlana (2018-08-31)

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Väitöskirja

Proskurina, Svetlana
31.08.2018
Lappeenranta University of Technology

Acta Universitatis Lappeenrantaensis

School of Energy Systems

School of Energy Systems, Energiatekniikka

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Biomass is an important source of renewable energy in the global energy mix. International trade in biomass is increasing. It is stimulating global use of biomass for energy and promoting development of bioenergy in many regions of the world. The markets for solid and liquid biofuels are developing rapidly. In the last ten years, international trade in energy biomass has increased considerably, especially direct trade, which grew from 200 PJ in 2004 to 600 PJ in 2015. However, despite the importance of trade in biomass for energy production, considerable uncertainty exists about many issues. What is the extent of trade required to meet European Union (EU) member states future bioenergy requirements? Where can this biomass be sourced and transported? Can the projected increase be done sustainably? What are the factors affecting terms of biomass trade?

The main aim of the thesis is to increase knowledge, insights and understanding of trade of biomass, and how is it developing, in order to facilitate the growth of biomass markets globally and locally. The thesis focuses on the status of biomass trade for energy in the global and local EU-Russia context. Within in the local EU-Russia context it is possible to show the international biomass trade streams in details. Europe is currently the major player in global biomass trade and Russia is one of the leading exporters of wood pellets to the EU. Wood pellets are the main traded solid biofuel, thus its market can be studied in more detail. The thesis presents a global overview of trade in solid and liquid biofuels, particularly wood pellets, biodiesel, and bio-ethanol, and biomass products such as industrial roundwood. The thesis presents the main production, export and import volumes of studied products as well as global trade streams including potential developments of emerging trade streams such as torrefied biomass. In addition, the thesis describes the role of bioenergy in renewable energy development in the EU, and in the local context, wood pellet markets in Finland and Russia.

The findings presented in the thesis are the outcome of seven articles presented in the second part of the work. The thesis comprises an introduction providing the background to the research questions, followed by individual papers considering various aspects of biomass in renewable energy, the wood pellet business, and the global trade in biomass.

The findings from the work indicate that due to the variety of available biomass resources and continuing supportive policy and regulation in many countries, biomass trade will continue to be an important aspect of renewable energy markets for the foreseeable future. Despite slow progress in bioenergy development encountered in several EU countries, currently the EU remains a leader in biomass utilization and trade. Based on the example of the Finnish and Russian markets, it is evident that wood pellet markets vary considerably in different countries and have different orientations. Thus, the study concludes that fertile ground exists for further development of international trade in biomass for energy production.
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