Finland Looks to the Future of Bioenergy

NesteSupported by abundant forest resources, Finnish bioenergy companies don’t have to look far for feedstock. But in a move to define its low-carbon future, the nation’s energy companies are undertaking ambitious research programs to develop future biofuels.

Finland is, above all, a land of abundant, and growing, forests. “We produce 100 cubic meters of wood per year, while 50 cubic meters per year is harvested. We have more forest than we can use,” said Jukka Leskelä, director of power generation for trade body Energiateollisuus, or Finnish Energy Industries. So it’s no surprise that, given an almost complete lack of indigenous fossil fuel resources, high per-capita energy consumption, and a long-running forest management program already in place, Finland is investing in biomass and biofuels in a big way as it looks to define its future energy mix.

The nation’s once-powerful forest industry has fallen on hard times, noted Leskelä. Although Finland has traditionally supported a thriving paper and pulp industry, demand for paper products has dropped, leading to factory closures. This is good news for the bioenergy sector; wood that was already slated for harvesting is now available for other uses.

The nation offers impressive support for bioenergy: a grant for 30 percent of investment in anaerobic digestion plants and 28 percent for compressors, an electricity tariff (which varies based on market price) plus €0.50/MWh if the project reuses the heat it generates. There is also a government target to replace 10 percent of the country’s natural gas with biogas by 2025.

Leskelä admits that “renewable” in Finland means bioenergy, and indeed wood-based biomass underpins over 75 percent of the nation’s planned activities to meet its 2020 climate targets. But Finland is also a high-tech economy and, in addition to an impressive 9 GW of planned wind capacity by 2020 (albeit no solar and no policy support for it), there is a good deal of research into biofuels and other new biomass-based energy solutions, much of it undertaken by fossil fuel companies looking to cash in on Finland’s dual need to gain energy independence and meet European climate targets.


For example, Finnish natural gas supplier Gasum, which controls the national market and owns the gas pipelines in southern Finland, is working on a number of renewable solutions including waste-based fuel from anaerobic digestion, new energy crops, “bio-SNG” (wood-based synthetic biogas created through gasification), and liquefied biogas (LBG) produced in one of the company’s liquefied natural gas (LNG) plants.

Gasum aims to become Finland’s leading biogas provider, said Pasi Torri, head of biogas and renewables. Currently the company’s biogas is used to fuel Helsinki city buses, airport buses and service trucks, and is available in 18 filling stations across Finland. (Finnish filling stations have been required to offer a biogas option since 2011.) Torri said 30 percent of customers at these filling stations choose biogas over both gasoline and the cheaper option, natural gas (also offered by Gasum), which is half the price of gasoline. Biogas is 7 percent more expensive than natural gas. Gasum calculates the CO2 savings of wood-based biogas at around 93 tonnes compared to gasoline.

The company’s waste-based fuels are made from wastewater sludge, bio-waste from households and restaurants, and some industrial waste. Torri said the processes that turn these raw materials into biofuel use about 10 percent less energy than fossil fuel processing plants, depending on the process.

Gasum also plans to experiment with growing energy crops in the Kuovola region. Torri said these crops will be planted in rotation by farmers who usually grow cereal crops. But in Finland, using forest industry residues as feedstock makes more economic sense than growing energy crops. For example, Gasum plans a 200-MW gasification plant in Joutseno for forest chips and bark. Torri explained that a forest industry company already owns the land, so the plant will work with its waste products. Gasum will invest €3-4 million in the plant, along with a €300 million grant from the EU.

Compared to buying heavily taxed natural gas from Russia, it is much cheaper to make this kind of investment in biogas, said Torri. Customers are willing to pay a premium price for green energy, he said, but he acknowledges that biogas initially will be more expensive because it’s new. Gasum has a cost advantage, however, because it already owns the pipelines through which it plans to send biogas across Finland to power households and industry.

Renewable Biodiesel

Neste Oil, another Finnish company with a focus on bionenergy, was originally a traditional oil refiner that branched out into LNG. In 2007, the company started looking at developing biofuels. In Q1 2013, Neste made its first profit from renewable fuels: in that period Neste said it made €26 million in revenue from its renewables alone. “There are better margins on the renewables side,” said Petri Lehmus, vice president of research and technology.

The central focus of Neste’s R&D platform is developing new feedstocks and refining existing ones, said Lehmus. Last autumn the company launched its ProDiesel, containing a minimum of 15 percent of what the company calls renewable diesel (to distinguish it from biodiesel).

Neste Oil’s research is focused on developing a flexible feedstock base from multiple sources. Credit: Tildy Bayar

Renewable diesel can be used as a drop-in fuel, Lehmus said, and is targeted at the aviation market, with a number of fuel solutions currently being tested by aviation partners. While Neste’s biodiesel is composed of vegetable oil that reacts with methanol to produce esters, renewable diesel removes the oxygen from vegetable oil to create aromatic-free diesel fuel. You can only mix up to 7 percent of traditional biodiesel with gasoline, said Lehmus, but Neste says it can mix unlimited amounts of renewable diesel because it is so pure.

“We are following feedstock issues very carefully in relation to different markets,” said Lehmus. Among the feedstocks Neste uses or is testing are familiar substances such as palm oil, jatropha oil, camelina and rapeseed oil, but also experimental feedstocks such as algae oil, bacteria oil, purified/rendered animal fat and waste fat from the fish processing industry. “We are buying most of the animal fat that’s available,” he continued.

Neste predicts that global annual demand for biodiesel and renewable diesel will grow to 41 million tonnes by 2020, and it is putting its R&D money behind that belief. So is Gasum, with its investment of €20.5 million in biogas production, new transmission networks and new vehicle filling stations. In Finland, supported by a forest industry providing ample feedstock for all, such optimism is easy. But Finnish companies are looking beyond the bountiful local present to the global future of bioenergy.

Tildy Bayar, Associate Editor, Renewable Energy World
Julho 22, 2013

VTT: New gasification method turns forest residues to biofuel with less than a euro per litre

biomasspellets2According to the new research results of the VTT Technical Research Centre of Finland, lignocellulosic biomass can be used in the production of high-quality biofuels for the price of less than one euro per litre. A new technology developed in Finland allows the transfer of more than half the energy of wood raw materials to the end-product. The technology is considered ready for the construction of a commercial-scale production plant in Europe.

VTT has assessed the techno-economics of the production of renewable liquid transportation fuels from forest residues. The case studies focused on the production of four biofuels using a method based on pressurised fluidised-bed gasification. The fuels studied were methanol, dimethyl ether (DME), Fischer-Tropsch liquids and synthetic gasoline.

The results show that the production of renewable biofuels from lignocellulosic biomass, mainly bark and forestry residues, could achieve an energy efficiency of 50–67%, depending on the end-product and process conditions. Should the thermal energy produced as a by-product be exploited for district heat or industrial steam, for example, the overall efficiency from biomass to saleable energy products could reach 74–80%.

Based on the case studies, the research scientists estimated that once commercialised the technology can be used to produce liquid transportation fuel at the cost of 58–78 €/MWh. Converted into gasoline-equivalent price per litre, the estimated production cost would be 0.5–0.7 €/litre. The price of renewable solutions would thus be on a level with the current pre-tax price of fossil transportation fuels, and cheaper than existing imported biofuels.

Each case study design was based on a BTL plant with 300 MW capacity, the equivalent of a large district heating power plant. A biorefinery of this size could produce liquid transportation fuel for about 150 000 cars. The EU has set a target of 10% renewable energy content for the transportation sector by 2020. For Finland, the target is 20%.

After long-term development work, the technical functionality of the production process was verified through extensive testing at VTT test rigs as well as industrial piloting in Finland and in the US. The technology is now ready for its first commercial-scale demonstration. However, the first wave of these ground-breaking production plants requires significant public venture capital investment, for which planning has consequently been initiated at both Finnish and EU level.

According to the research results, the best efficiency and lowest production costs were achieved in the production of biomethanol. The risks related to the commercialisation of the synthesis technology were also estimated to be lower with the biomethanol production plant compared to the other options.

Methanol is an alcohol fuel that can be used in modern cars at maximum 3 vol-% content in combination with petrol or, as with ethanol, in high concentrations in FlexFuel cars designed for this purpose. Methanol can also be further converted to synthetic gasoline or used as renewable raw material in the manufacture of various chemicals and biomaterials.

The VTT publication can be found online here


Fortum has inaugurated a new combined heat and power plant in the city of Klaipeda, Lithuania.


Fortum has inaugurated a new combined heat and power plant in the city of Klaipeda, Lithuania. The plant uses municipal and industrial waste as well as biomass as fuels and is the first power plant of its kind in the Baltic countries.


The Finnish President Sauli Niinistö along with Dalia Grybauskaitė, President of the Republic of Lithuania, attended the plant’s inauguration ceremony.


“Using sorted waste as fuel in combined heat and power production is a sustainable solution for urban areas. It offers a cost-efficient answer to energy and waste management needs alike, and helps to significantly reduce greenhouse gas emissions compared to depositing waste in landfills,” says Fortum’s CFO Markus Rauramo.


The CHP plant replaces old natural gas-fired heat production in Klaipeda and reduces CO2 emissions by approximately 100 000 tons per year. The transfer to waste-fired combined heat and power generation also considerably increases energy efficiency compared to heat-only production and has a positive impact to the competitiveness of district heating as well as waste management costs.


“The Klaipeda power plant is the first of four we will inaugurate this year in the Baltic and Nordic countries. Combined heat and power production is at the core of our strategy, and we strongly believe in the benefits of using sustainable, local fuels whenever possible,” Rauramo continues.


With an energy efficiency close to 90%, the new power plant’s boiler can incinerate 230 000 tonnes of waste and biomass annually, giving it a power production capacity of 20 MW electricity and 50 MW heat. Furthermore, the plant is equipped with flue-gas condensers that enable the recovery of an additional15 MW of heat at peak demand times.


The plant will produce approximately 140 GWh of electricity and 400 GWh of heat per year, which covers approximately 40% of Klaipeda’s district heating demand. Heat from the plant will be sold to AB Klaipėdos energija, which also holds a 5% stake in the power plant.

Image: Fortum
Source: Fortum