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Abstract Competitive international markets imply adjustments towards competitive spatial equilibrium in which excess from one market is transferred to another and prices are equilibrated except for remaining differences that can be assigned to transfer costs. The European market for wood pellets used in small-scale heating systems has been expanding significantly over the past decade. Small scale pellet heating is arguably a mature technology, but whether the market is mature is another question. In this paper we analyse recent data on trade flows and price developments between Italy, Austria, Germany and France to understand the developments of wood pellet market efficiency and to draw conclusions about market function. The objective of this study is to establish a framework to test the European residential wood pellet market for competitive spatial equilibrium using modern trade theory. We find mainly inefficiently integrated markets with remaining positive marginal profits and detectable arbitrageurs’ activity. Based on a thorough discussion of these findings and the underlying data we outline possible methodology advancements and list policy recommendations to secure access and affordability of this renewable heating commodity in the long run.

Many factors may globally affect the trade pattern for industrial-grade wood pellets, with one such factor being the decision strategies by potential buyers and suppliers to optimize feedstock pric...

Abstract Farm operations in the USA and Europe have seen a radical change in the last decades: small sized farms are disappearing, and farm size and total livestock on larger farms are increasing. The resulting spatial density of animals causes several environmental impacts. Anaerobic digestion is one promising technical solution to alleviate most of these impacts while simultaneously providing a regional energy source. This analysis assesses the economic viability of using dairy-cow manure for either (i) the on-farm production and use of biogas to generate electricity and heat or (ii) the upgrading biogas to biomethane, a natural-gas substitute. A non-linear optimization model was developed to optimize plant capacity for anaerobic digestion and maximize the net present value for each option by farm size. In this study, we used Idaho‘s dairy farms as a case study. The analysis implies that at least 3000 cows per farm are required for an economically viable anaerobic-digestion plant operation. For farms with up to 3600 animals, the highest net present value was achieved for the on-farm use of biogas. Farms larger than that achieved their best economic results via the production of biomethane. In total about 45% of Idaho’s dairy manure could be utilized by economically feasible biogas and biomethane plants. A higher manure utilization rate could be achieved through joint, cooperative anaerobic digestion plants and manure transportation. The results can be transferred to other regions and countries, respectively, to reduce the negative impact of intensive livestock farming.

Decentralized biomass processing facilities, known as biomass depots, may be necessary to achieve feedstock cost, quantity, and quality required to grow the future U.S. bioeconomy. In this paper, we assess three distinct depot configurations for technical difference and economic performance. The depot designs were chosen to compare and contrast a suite of capabilities that a depot could perform ranging from conventional pelleting to sophisticated pretreatment technologies. Our economic analyses indicate that depot processing costs are likely to range from ∼US$30 to US$63 per dry metric tonne (Mg), depending upon the specific technology implemented and the energy consumption for processing equipment such as grinders and dryers. We conclude that the benefits of integrating depots into the overall biomass feedstock supply chain will outweigh depot processing costs and that incorporation of this technology should be aggressively pursued.

AbstractDirect air capture (DAC) is critical for achieving stringent climate targets, yet the environmental implications of its large-scale deployment have not been evaluated in this context. Performing a prospective life cycle assessment for two promising technologies in a series of climate change mitigation scenarios, we find that electricity sector decarbonization and DAC technology improvements are both indispensable to avoid environmental problem-shifting. Decarbonizing the electricity sector improves the sequestration efficiency, but also increases the terrestrial ecotoxicity and metal depletion levels per tonne of CO2 sequestered via DAC. These increases can be reduced by improvements in DAC material and energy use efficiencies. DAC exhibits regional environmental impact variations, highlighting the importance of smart siting related to energy system planning and integration. DAC deployment aids the achievement of long-term climate targets, its environmental and climate performance however depend on sectoral mitigation actions, and thus should not suggest a relaxation of sectoral decarbonization targets.

AbstractBritish Columbia (BC) forests are estimated to have become a net carbon source in recent years due to tree death and decay caused primarily by mountain pine beetle (MPB) and related post‐harvest slash burning practices. BC forest biomass has also become a major source of wood pellets, exported primarily for bioenergy to Europe, although the sustainability and net carbon emissions of forest bioenergy in general are the subject of current debate. We simulated the temporal carbon balance of BC wood pellets against different reference scenarios for forests affected by MPB in the interior BC timber harvesting area using the Carbon Budget Model of the Canadian Forest Sector (CBM‐CFS3). We evaluated the carbon dynamics for different insect‐mortality levels, at the stand‐ and landscape level, taking into account carbon storage in the ecosystem, wood products and fossil fuel displacement. Our results indicate that current harvesting practices, in which slash is burnt and only sawdust used for pellet production, require between 20–25 years for beetle‐impacted pine and 37–39 years for spruce‐dominated systems to reach pre‐harvest carbon levels (i.e. break‐even) at the stand‐level. Using pellets made from logging slash to replace coal creates immediate net carbon benefits to the atmosphere of 17–21 tonnes C ha−1, shortening these break‐even times by 9–20 years and resulting in an instant carbon break‐even level on stands most severely impacted by the beetle. Harvesting pine dominated sites for timber while using slash for bioenergy was also found to be more carbon beneficial than a protection reference scenario on both stand‐ and landscape level. However, harvesting stands exclusively for bioenergy resulted in a net carbon source unless the system contained a high proportion of dead trees (>85%). Systems with higher proportions of living trees provide a greater climate change mitigation if used for long lived wood products.

This paper presents and analyses international solid biofuel trade and concludes upon interactions with bioenergy policies and market factors. It shows that trade has grown from about 56 to 300 PJ between 2000 and 2010. Wood pellets grew strongest, i.e. from 8.5 to 120 PJ. Other relevant streams by 2010 included wood waste (77 PJ), fuelwood (76 PJ), wood chips (17 PJ), residues (9 PJ), and roundwood (2.4 PJ). Intra-EU trade covered two thirds of global trade by 2010. Underlying markets are highly heterogeneous; generally though trade evolved whenever supply side market factors coincided with existing/emerging demand patterns. Market factors and policies both defined trade volumes; though policy changes did not have as prominent effects on trade developments as in the liquid biofuel sector. Economic viability is the key limiting factor. Main exporting countries have low feedstock costs and already existing wood processing industries. Trade-relevant aspects are the commodity’s monetary value; determined by its homogeneity, heating value, and bulk density. Consumer markets are diverse: in residential heating, demand/trade patterns have been influenced by local biofuel availability and short-term price signals, i.e. mainly price competitiveness and investment support for boilers/stoves. Commodities are mainly sourced regionally, but price differences have triggered a growing trade. The industrial segment is greatly influenced by policy frameworks but more mature (e.g. established routes). Trade is strictly linked to margins (defined mainly by policies) and combustion technologies. Uncertainties in the analysis are due to data gaps across and within databases regarding import/export declarations. To estimate bioenergy related trade, anecdotal data was indispensable. We believe datasets should be streamlined across international institutions to eventually enable reporting of global trade beyond digit-6-level. Research is needed to provide further insights into informal markets. Interrelations between trade factors are particularly relevant when mapping future trade streams under different policy/trade regime scenarios