Biomass market

opportunities

Finland 1. General country information

2. Economic indicators

3. Biomass availability

4. Energy profile

5. Energy & biomass policies

6. Funding opportunities

7. Business Climate

8. Important contacts

[Market Opportunities for Biomass in Finland] | [April 10, 2014]

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Colophon

Date April 10, 2014

Status Final

This study was carried out in the framework of the Netherlands Programmes Sustainable Biomass by

Name organisation Partners for Innovation BV

Contact person Emiel Hanekamp

Although this report has been put together with the greatest possible care, NL Enterprise Agency does not accept

liability for possible errors.

Contact

Netherlands Programmes Sustainable Biomass

Jobert Winkel

NL Enterprise Agency

NL Energy and Climate Change

Croeselaan 15, 3521 BJ Utrecht

P.O. Box 8242, 3503 RE Utrecht

The Netherlands

Email: Jobert.winkel@rvo.nl

Phone: +31 - 88 - 602 7969

www.rvo.nl/biomass

Partners for Innovation BV

Emiel Hanekamp, Saskia de Lint and Floor

Osseweijer

Partners for Innovation BV

Cruquiusweg 20

1019 AT Amsterdam

The Netherlands

Email: e.hanekamp@partnersforinnovation.com

Phone: +31 (20) 6200511

www.partnersforinnovation.com

This document

This document is part of a series of 16, providing information on biomass markets in:

Europe: Germany, France, United Kingdom, Spain and Finland

EU/Asia: Russia and Latvia

Asia: China, India and Thailand

North- and South-America United States of America, Canada and Brazil

Africa: South-Africa and Ghana

Australia Australia

The selection of countries is done in close cooperation with NL Enterprise Agency. The objectives of the

country documents are: To provide companies a first impression of doing businesses in a country; To provide sources and contacts for more detailed information; To sketch opportunities how companies can be further supported when doing business in a country.

[Market Opportunities for Biomass in Finland] | [April 10, 2014]

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Finland has a friendly business climate (the best framework conditions for entrepreneurship in Nordic

countries), with minimal bureaucracy and a stable and competitive economy. Furthermore Finland

belongs to the innovation leaders of Europe for biomass activities, and is among the leading EU countries

in bioenergy use (more than 20 % of all primary energy consumption). Finland has the highest

percentage of forest cover in Europe (73%) and a highly developed wood and paper industry.

1. GENERAL COUNTRY INFORMATION

Country profiles at RVO: http://www.rvo.nl/onderwerpen/internationaal-ondernemen/landenoverzicht/finland

Descriptions of business sectors, key market players and business trends via Business

Monitor International: http://www.rvo.nl/onderwerpen/internationaal-

ondernemen/landenoverzicht/marktvergelijkingen/bmi

The Economist Intelligence Unit provides you with articles and short reports about Country

Analysis, Risk Analysis and Industry Analysis:http://www.rvo.nl/onderwerpen/internationaal-

ondernemen/landenoverzicht/marktvergelijkingen/eiu

Im- and export figures can be found at the International Trade Centre Databank: http://www.rvo.nl/onderwerpen/internationaal-ondernemen/landenoverzicht/marktvergelijkingen/trademap

Information U.S. Energy Information Administration: http://www.eia.gov/countries/country-

data.cfm?fips=FI&trk=m

2. ECONOMIC INDICATORS

Finland 2009 2010 2011 2012

GDP (current billion US$) 239,38 235,16 262,05 247,55

GDP growth (annual %) -9 3 3 -1

GDP per capita (current US$) 44,838 43,846 48,634 45,721

Population (Total, million) 5.339 5.363 5.388 5.414

Source: http://data.worldbank.org/country/finland http://data.worldbank.org/indicator/NY.GDP.MKTP.CD

Source: IRENA Renewable Energy Country Profiles 2013: http://www.irena.org/menu/index.aspx?mnu=Subcat&PriMenuID=36&CatID=141&SubcatID=336

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3. BIOMASS AVAILABILITY

Land Use Parameters: Source 2012: http://data.worldbank.org/indicator/AG.LND.TOTL.K2 http://en.worldstat.info/Europe/Land

Country Land area (km2)

Agricultural area (km2)

Arable land (km2)

Permanent crops (km2)

Forestry area (km2)

Finland 303,890 22,792 22,488 50 221,536

per 1000 capita 56.13 4.21 4.15 0.01 40.92

Agricultural and Forest Production

Country Forest production (m3) 2012 Agricultural production (1000 kg) 2012

Finland 64,098,587 4,643,600

Biomass Resources

Finland is rich in biomass resources, especially due to its high forestry cover of 73% (source

FAO), which is the highest forestry cover in Europe. Forests are mainly owned by Finnish

families. Energy from wood fuels plays an important role in Finland. In 2012 23% of the total

energy use was in the form of wood fuels. In the forestry sector, wood fuels are even more

important and account for 78% of total energy use.

Bio-Based Initiatives

New technique for making bio-based plastic packaging by VTT Technical Research Center of

Finland. The material is eco-friendly and biodegradable, it is also stronger and heat resistant.

The Biofore concept car: A car made from UPM’s Biofore biobased materials designed and

manufactured in partnership with Helsinki Metropolia University of Applied Sciences, the

Finnish Funding Agency for Technology and Innovation.

Stora Enso has invested EUR 32 million in a world-class biorefinery at Sunila Mill in Finland. In

this mill up to 90% of natural gas will be replaced by lignin extracted from the black liquor.

This will significantly reduce the CO2-emissions of the mill. Production is scheduled to start

during the beginning of 2015. The technology also has the potential for future scalability at

other Group pulp mills. Sunila Mill has an annual capacity of 370 000 tonnes of softwood pulp.

4. ENERGY PROFILE

National Energy Profile 2011 (source : Irena)

Total Primary Energy Supply: 1,469.8 PJ - Of which renewables: 379.9 PJ (25.8%)

Energy self-sufficiency: 49%

Fuel imports: 18.3 billion USD (21.8% of total imports)

Electricity generation: 73.5 TWh - Of which renewables: 24.2 TWh (32.9%)

Electricity use per capita: 15,738 kWh

Electrical capacity: 16.7 GW - Of which renewables: 5.3 GW (31.6%)

Electricity access rate: 99.9%

Share of population using solid fuels: < 5% (2010)

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*excl. electricity rate Source: Irena Renewable Energy Country Profiles European Union

RES Share in 2011 (%) Source: Eurostat, April 2013

Overall RES

% biomass / Tot Final Energy

2020 RES Target

RES-electricity

RES transport

RES heating/ cooling

EU 27 13.00 8.39% 20.00 21.70 3.80 15.10

Finland 31.70 28.10% 38.00

29.20 0.40 44.30

Estimation of Total Contribution Expected from Bioenergy in 2020 (ktoe)

Total Bioelectricity Biomass for heat and bioheat

Biofuels

EU 27 138,312 19,697 89,756 28,859

Finland 8,280 1,110 6,610 560

Forecast per country (EU): http://ec.europa.eu/energy/renewables/action_plan_en.htm

More information: AEBIOM report, European Bioenergy Outlook 2013

Prices

Energy Prices charged to Final Consumers: Industry and Households (EUR per kWh)

Consumer Electricity 2011

(€/kWh) 2012

2013 Gas 2011

€/Gigajoule 2012

2013

Industry EU 28 0.0928 0.0958 0.0943 8.97 10.16 10.56

Finland 0.0686 0.0684 0.0679 9.34 10.88 10.60

Households EU 28 0.1277 0.1339 0.1373 11.92 13.50 14.05

Finland 0.1081 0.1089 0.1102

Source: http://epp.eurostat.ec.europa.eu/portal/page/portal/energy/data/main_tables

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http://epp.eurostat.ec.europa.eu/tgm/mapToolClosed.do?tab=map&init=1&plugin=1&language=en&pcode=ten00114&toolbox=types

Bio Energy Projects Reported in the BNEF Database

90 MW and 158 MWth of biomass-fired capacity addition announced (2 projects)

108 million litres of biodiesel per year capacity addition announced (1 project)

9.8 million litres of bioethanol per year capacity addition announced (1 project)

More Information:

AEBIOM: December 2013 Statistical report http://www.aebiom.org/

Market observatory & Statistics; Energy figures by country http://ec.europa.eu/energy/observatory/countries/countries_en.htm National renewable energy action plans: information on policies, targets, resources and use http://ec.europa.eu/energy/renewables/action_plan_en.htm

5. ENERGY & BIOMASS POLICIES

For the Finnish government a low carbon and resource-efficient society is a key objective. One

of the activities will be the preparation of the first national bioeconomy strategy. Finland sees a

role for itself for example as a raw material supplier. However more and more emphasis will be

put on the added value of biomass, products, innovation and ecosystem services. More

information: http://www.sitra.fi/en/ecology/bioeconomy http://www.ym.fi/fi-FI/Ajankohtaista/Puheet/Minister_of_the_Environment_of_Finland_V(26194)

Renewable Energy

Finland moved from its investment grant support to a feed-in premium in 2011.

Premium tariff

Subsidy (Energy Aid)

Renewable Energy is promoted in Finland by:

Electricity: from biogas

Premium feed-in-tariff: € 83.5 / MWh

+ heat bonus € 50 / MWh (when qualified)

Electricity: from wood fuels Premium feed-in-tariff: € 83.5 / MWh + heat bonus € 20 / MWh (when qualified)

Heat “heat bonus” for CHP plants working on biogas and wood fuel

Biofuels Main incentive: quota system

Electricity and heat produced from RES is not given priority by grid access

More information:https://www.tem.fi/en/energy/renewable_energy_sources/feed-in_tariff_of_renewable_energy

Targets:

38% of final energy from renewables by 2020

At least 10% of transport energy from renewables by 2020

Electricity prices for industrial consumers euro/kWh

Electricity prices for households euro/kWh

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Increase the use of renewable energy by at least 25% by 2015 and 40% by 2025

13,152 MW of bioenergy capacity by 2020.

The Finnish National Renewable Energy Action Plan (published in 2010) shows how Finland

expects to reach their legally binding 2020 target for the share of renewable energy in their

total energy consumption, as required by the RED (2009/28/EC). http://ec.europa.eu/energy/renewables/action_plan_en.htm

The Renewable Energy Progress Report of Europe, including Finland can be found at:

http://ec.europa.eu/energy/renewables/reports/doc/com_2013_0175_res_en.pdf

RES LEGAL Europe: for more information on:

support schemes

grid issues and

policies per country

For: Electricity, Heating and cooling, Transport

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6. FUNDING OPPORTUNITIES

EU Funding Schemes

Horizon 2020 – the new EU Framework programme for RTD

Horizon 2020 is the successor of the 7th Framework Programme for Research and

Technological Development (FP7). Budget € 77,6 billion for research and innovation in Europe

for 2014 – 2020. Topics include: energy efficiency, use of renewables as flexible feedstock for

chemical and energy applications.

LIFE+ - EU funding programme for the Environment

Calls are expected May/June 2014, Budget €3.4 billion for 2014 - 2020.

Topics include: Climate change - Energy, Industry & production, waste.

NER300 is one of the world's largest funding programmes for innovative low-carbon energy

demonstration projects, like CCS and innovative renewable energy (RES) technologies on a

commercial scale within the European Union.

National Funding Schemes

TEKES: Finnish Funding Agency for Technology and Innovation, development projects that aim

for growth and business innovation. Funding for companies (SMEs) registered in Finland.

Forest Services

METSO-programme is a voluntary and bottom-up measure for promoting the conservation of

forests in Southern Finland. The programme provides compensation to forests owners for the

conservation of forests.

7. BUSINESS CLIMATE

Ease of Doing Business in Finland:

Finland has a business friendly climate and is ranked 12th out of 189 countries in the World

Bank Ease of Doing Business index 2014. In comparison, the Netherlands is ranked 28. On the

website information about: permits, administration time, specific laws et cetera is present.

Topic DOING BUSINESS 2014 DOING BUSINESS 2013

Total rating 12 12 Starting a Business 55 48 Dealing with Construction Permits 36 34 Getting Electricity 22 21 Registering Property 26 25 Getting Credit 42 40 Protecting Investors 68 67 Paying Taxes 21 23 Trading Across Borders 9 9 Enforcing Contracts 8 8 Resolving Insolvency 3 4 Source: http://www.doingbusiness.org

8. IMPORTANT CONTACTS

Relation with The Netherlands:

Embassy + consulates

Finnish Dutch Trade Guild: http://www.fdtg.eu/index.php

Netherlands Embassy in Helsinki Finland, http://finland.nlembassy.org/

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BIC (The Biobased Industries Consortium), a Public-Private Partnership (PPP) between the

European Commission and 48 European companies. Programming coordinator is the Dutch

biobased expert Annita Westenbroek. Also FIBIC, the Finnish Bioeconomy Cluster is involved.

Biobased Delta: Finland has shown interest to participate in the Biobased Delta, in which the

Netherlands, Belgium and Germany are working together.

Existing agreements between Finland and the Netherlands. BioBased Organisations in Finland:

Motiva, is a government-owned expert company promoting efficient and sustainable use of

energy and materials. A good source of info and a good contact in general: Presentation:

Renewable energy trends in Finland 2013.

Ministries Involved in Biomass Issues:

Ministry of Employment and the Economy (Energy aspects)

Ministry of Agriculture and Forestry (forestry aspects)

Bioenergy Association of Finland: The Bioenergy Association represents the interests of the

entire bioenergy sector in Finland, from land ownership to forest and energy companies, and

technology and research in the field. The association has over 200 member organisations

MTK Central Union of Agricultural Producers and Forest Owners: is a trade organisation and

interest group for farmers, forest owners and rural entrepreneurs, 150,000 members.

VTT (Technical Research Centre of Finland), is a globally networked multitechnological applied

research organization, with thorough expertise in: bioenergy, biofuels and biomaterials.

SHOKs (Strategic Centres for Science, Technology and Innovation) carry out long-term

cooperation in fields most crucial for the future, including bioenergy. FIBIC and CLEEN are

involved in the sector, and are active in international cooperation. FIBIC, Finnish Bioeconomy

Cluster, is one of the six SHOKs and member of BIC, The Biobased Industries Consortium. In

addition to FIBIC, Finnish participants in the partnership include the forestry companies Metsä

Group, Stora Enso and UPM as well as SAPPI, SCA and Kemira.

Energy authority: promotes and monitors the energy market. Furthermore they stimulate the

reduction of emissions, energy efficiency and the use of renewable energy.

More information: http://biconsortium.eu/,

Statistics Finland: http://www.tilastokeskus.fi/til/index_en.html

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