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Systemic Constraints and Drivers for Production of Forest-Derived Transport Biofuels in Sweden - Part A: REPORT and Part B: CASE STUDIES : Report from f3 project: P38116-1 Analys av systembarriärer för produktion av skogsbaserade drivmedel September 2016 (Final Report)).

Peck, Philip LU ; Grönkvist, Stefan ; Hansson, Julia ; Lönnqvist, Tomas and Voytenko Palgan, Yuliya LU (2016)
Abstract
Diversification of forest industry activites into transport fuels is important for Swedish climate and energy policy goal achievement, and biofuel proponents also claim that it is important for Swedish forest industry competitiveness. There is significant ongoing research effort on biofuels for road transport and extensive experimentation on several technical platforms has been conducted. These different platforms each inter-relate in different ways with the forest sector and transportation fuel processing/value-adding industries. As of 2016, it remains unclear how many of these will emerge from niche applications or experimentation into the market mainstream.
Decisions regarding which particular forest-derived transport biofuels to... (More)
Diversification of forest industry activites into transport fuels is important for Swedish climate and energy policy goal achievement, and biofuel proponents also claim that it is important for Swedish forest industry competitiveness. There is significant ongoing research effort on biofuels for road transport and extensive experimentation on several technical platforms has been conducted. These different platforms each inter-relate in different ways with the forest sector and transportation fuel processing/value-adding industries. As of 2016, it remains unclear how many of these will emerge from niche applications or experimentation into the market mainstream.
Decisions regarding which particular forest-derived transport biofuels to pursue, and how best to pursue them, are complex and are influenced by many factors. On the technology side, such can include competition between technology development pathways; requirements for new distribution infrastructure; commitments to existing “locked in” fuel infrastructure; overall efficiencies of fuel production systems; relative engine efficiencies; rates of engine technology advances; and the pro- gress in the development, or demonstration, of key technologies for fuel production. Consideration of socio-economics on the other hand, brings issues such as energy security; environmental quality; rural development potentials; consumer and political beliefs and preferences; media focus; vested industry interests; and logistics and spatial distribution. Misalignment among these many criteria has the potential to pose very real constraints upon the pursuit of any fuel pathway.
A constraining factor of particular relevance in the Nordic context is found within tensions that exist within the forest industries sector itself and is linked to ‘vested interests’. The forest industry is a critical sector for both biomass supply, and for technology system hosting. This study observes conflicting opinions regarding large-scale forest-derived tranport fuel production. Depending how initiatives are framed, they can be seen as a new source of competition for limited biomass feed- stock supplies; a threat to the operation, or longevity, of important infrastructural items within a pulp mill; or as a complication for supply chains (e.g. with potential to increase transportation costs). Other issues that have been highlighted in recent years include differing views regarding the importance of cooperation between the forest industries and the petrochemical sector; which types of transportation fuels should or could be produced from the sector (e.g. syn-biogas, ethanol, meth- anol, DME, FT-diesel, etc.); and disparate opinions whether the main focus should be placed on biofuels or upon the inherent functions that exist in wood mechanical characteristics or chemicals.
This analysis demonstrates that Sweden hosts a very significant suite of advanced forest-derived transportation fuel initiatives despite the potential constraints or ‘complicating factors’ listed above. The technical function of a number of fuel platforms have been demonstrated at various scales, and biofuels are delivered to commercial transportation markets. However, the initial production cost for renewable transportation fuels is higher than that for fuels from the deeply entrenched fossil sector. This cost differential essentially precludes spontaneous development of the industry and significant support has been required. A variety of policy support mechanisms have helped the development of biofuel technologies and the creation of protected ‘spaces’ for experimentation. Policy support has also helped them to create spaces in the market.
This study has worked from the position that due to the inherently lower production costs for fossil based fuel systems (that are directly related to policy support and technical learning over many decades), it remains difficult to see the industry for renewable transportation fuels achieving inde- pendence from policy support in the short or medium term. This analysis is thus framed with the view that the need for ongoing support of ‘protected spaces’ for renewable fuels is a logical reality. An important portion of this work thus examines issues that affect delivery of efficient and effective support that can help to sustain such spaces. (Less)
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120 pages
publisher
Swedish Knowledge Centre for Renewable Transportation Fuels (f3 Centre)
language
English
LU publication?
yes
id
89deb07b-076d-4634-95c5-63a852e79217
alternative location
https://f3centre.se/app/uploads/Final_f3-2016-09A_Peck-et-al_161012-1.pdf
date added to LUP
2024-09-10 16:32:10
date last changed
2024-09-11 08:31:09
@techreport{89deb07b-076d-4634-95c5-63a852e79217,
  abstract     = {{Diversification of forest industry activites into transport fuels is important for Swedish climate and energy policy goal achievement, and biofuel proponents also claim that it is important for Swedish forest industry competitiveness. There is significant ongoing research effort on biofuels for road transport and extensive experimentation on several technical platforms has been conducted. These different platforms each inter-relate in different ways with the forest sector and transportation fuel processing/value-adding industries. As of 2016, it remains unclear how many of these will emerge from niche applications or experimentation into the market mainstream.<br/>Decisions regarding which particular forest-derived transport biofuels to pursue, and how best to pursue them, are complex and are influenced by many factors. On the technology side, such can include competition between technology development pathways; requirements for new distribution infrastructure; commitments to existing “locked in” fuel infrastructure; overall efficiencies of fuel production systems; relative engine efficiencies; rates of engine technology advances; and the pro- gress in the development, or demonstration, of key technologies for fuel production. Consideration of socio-economics on the other hand, brings issues such as energy security; environmental quality; rural development potentials; consumer and political beliefs and preferences; media focus; vested industry interests; and logistics and spatial distribution. Misalignment among these many criteria has the potential to pose very real constraints upon the pursuit of any fuel pathway.<br/>A constraining factor of particular relevance in the Nordic context is found within tensions that exist within the forest industries sector itself and is linked to ‘vested interests’. The forest industry is a critical sector for both biomass supply, and for technology system hosting. This study observes conflicting opinions regarding large-scale forest-derived tranport fuel production. Depending how initiatives are framed, they can be seen as a new source of competition for limited biomass feed- stock supplies; a threat to the operation, or longevity, of important infrastructural items within a pulp mill; or as a complication for supply chains (e.g. with potential to increase transportation costs). Other issues that have been highlighted in recent years include differing views regarding the importance of cooperation between the forest industries and the petrochemical sector; which types of transportation fuels should or could be produced from the sector (e.g. syn-biogas, ethanol, meth- anol, DME, FT-diesel, etc.); and disparate opinions whether the main focus should be placed on biofuels or upon the inherent functions that exist in wood mechanical characteristics or chemicals.<br/>This analysis demonstrates that Sweden hosts a very significant suite of advanced forest-derived transportation fuel initiatives despite the potential constraints or ‘complicating factors’ listed above. The technical function of a number of fuel platforms have been demonstrated at various scales, and biofuels are delivered to commercial transportation markets. However, the initial production cost for renewable transportation fuels is higher than that for fuels from the deeply entrenched fossil sector. This cost differential essentially precludes spontaneous development of the industry and significant support has been required. A variety of policy support mechanisms have helped the development of biofuel technologies and the creation of protected ‘spaces’ for experimentation. Policy support has also helped them to create spaces in the market.<br/>This study has worked from the position that due to the inherently lower production costs for fossil based fuel systems (that are directly related to policy support and technical learning over many decades), it remains difficult to see the industry for renewable transportation fuels achieving inde- pendence from policy support in the short or medium term. This analysis is thus framed with the view that the need for ongoing support of ‘protected spaces’ for renewable fuels is a logical reality. An important portion of this work thus examines issues that affect delivery of efficient and effective support that can help to sustain such spaces.}},
  author       = {{Peck, Philip and Grönkvist, Stefan and Hansson, Julia and Lönnqvist, Tomas and Voytenko Palgan, Yuliya}},
  institution  = {{Swedish Knowledge Centre for Renewable Transportation Fuels (f3 Centre)}},
  language     = {{eng}},
  title        = {{Systemic Constraints and Drivers for Production of Forest-Derived Transport Biofuels in Sweden - Part A: REPORT and Part B: CASE STUDIES : Report from f3 project: P38116-1 Analys av systembarriärer för produktion av skogsbaserade drivmedel September 2016 (Final Report)).}},
  url          = {{https://f3centre.se/app/uploads/Final_f3-2016-09A_Peck-et-al_161012-1.pdf}},
  year         = {{2016}},
}