29 June 2021

Biomass available for district heating will be limited: report

District heating, combining the generation of electricity with local distribution of steam for heating houses is used heavily in Sweden and Finland. Frequently these small power stations are powered by biomass - typically woodchips. This business model has been under attack, and hence met fierce local resistance with the introduction of the EU taxonomy. Now, a new, perhaps even bigger threat is emerging – competition over the resource.

A recent international study commissioned by Sitra has looked at the use and demand for bio-based raw materials in the EU. The study, EU Biomass Use in a NetZero Economy, predicts the demand for wood raw material could more than double from its current level in the EU, as member states strive for climate neutrality. The results show that there is a clear mismatch between biomass demand and sustainable supply. Bio-raw materials are unlikely to be able to be produced sustainably in the EU as much as demand for them is expected to grow at current costs. Consequently it becomes important for EU countries and companies to prepare for the situation.

The modeling developed for the study predicts that the need for biomass as energy and raw material for various materials in 2050 is estimated to be 70–150% higher than now. Meeting such demand would require, in addition to the current biomass supply, an increase in the biomass of an area almost the size of Germany (350,000-400,000 km2).

The study emphasizes that bio-based raw materials should be reserved, above all, for uses that help the EU move towards a climate-neutral economy or destinations where biomass alternatives are likely to remain expensive in the future, for example, the furniture industry, construction, the production of pulp and other fibers, textiles and chemicals - rather than large-scale energy use.

The most profitable uses of biomass in the future will be very different from what has been assumed so far. Companies and policy makers need to update their views, says Per Klevnäs, a partner in Material Economics who performed the study, in Sitra's press release.

CIP raises DKK 6 billion for new Energy Transition Fund

CIP - Copenhagen Infrastructure Partners has raised almost DKK 6 billion for a new sustainability fund, en route to a target of a total of more than DKK 16 billion. CIP’s existing funds, including the recent €7 billion CI IV, primarily focus on renewable energy infrastructure such as offshore wind, onshore wind, solar PV, transmission, hydro pumped store, and energy-from-waste. The CI Energy Transition Fund I, will instead invest in the next generation of green energy infrastructure, including Power-to-X projects on an industrial scale, and will enable institutional investors to participate in the decarbonisation of multiple industries. The fund will focus on greenfield projects primarily in Western Europe, North America, Australia and OECD countries in Asia. In addition to Power-to-X, the fund can invest in advanced biofuels, carbon capture and utilization / storage (CCU / S) and other infrastructure technologies, applications and solutions to transform the transport and industrial sectors.

Managing Partner, Jakob Baruël Poulsen explained that “Reaching €800 million in commitments from existing investors in the first round of capital raising is an important testament to investors' confidence in CIP's approach to energy infrastructure, and the history CIP's funds with a focus on renewable energy have built up.” (press release)

Saga Pure joins forces with NEL and Norwegian Hydrogen

NEL, Norwegian Hydrogen and Saga Pure, controlled by Norwegian entrepreneur, Øystein Stray Spetalen, have acquired the hydrogen company Hyon. Hyon works with hydrogen solutions for the maritime sector. Under the new owners, the company will focus on developing hydrogen and bunkering solutions in ports. (CNytt)

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