• Energy Research
• 2016-2025close

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.

Cascading, or cascade use, is concept that has many different definitions, but a common theme is a sequential use of resources for different purposes. The cascading concept was first presented in the early 1990s but has become an intensively debated topic primarily in the most recent decade. In the available literature on cascading of wood, there are few studies that discuss policy implementation. As this is currently heavily debated, there is an important gap here that we aim to fill. In this paper, we (a) critically review the conceptual history of cascading and (b) highlight the complexities involved in its implementation in policy frameworks. Originally, cascading was discussed as a broad framework for how society better should manage natural resource flows. In more recent debates on woody biomass however, cascading is often presented as simply a hierarchy, wherein material use of wood should hold priority over energy use of wood. This is partly based on an idea that certain forms of wood utilization are inherently more valuable than others, an assumption that becomes problematic when implemented in policy. In reality, how and for what a certain wood resource is used varies with time and place and historical examples of implementation of hierarchical policy frameworks indicate a high risk of unwanted consequences, such as unstable policy structures and tendencies toward a negotiation economy. Cascading of woody biomass can have benefits from both an economical and environmental perspective. However, cascading systems should emerge bottom‐up, not be imposed top‐down through politically determined hierarchies. WIREs Energy Environ 2018, 7:e279. doi: 10.1002/wene.279This article is categorized under: Energy and Climate > Economics and Policy Energy Policy and Planning > Economics and Policy

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.

AbstractMost climate change mitigation scenarios rely on increased use of bioenergy to decarbonize the energy system. Here we use results from the 33rd Energy Modeling Forum study (EMF-33) to investigate projected international bioenergy trade for different integrated assessment models across several climate change mitigation scenarios. Results show that in scenarios with no climate policy, international bioenergy trade is likely to increase over time, and becomes even more important when climate targets are set. More stringent climate targets, however, do not necessarily imply greater bioenergy trade compared to weaker targets, as final energy demand may be reduced. However, the scaling up of bioenergy trade happens sooner and at a faster rate with increasing climate target stringency. Across models, for a scenario likely to achieve a 2 °C target, 10–45 EJ/year out of a total global bioenergy consumption of 72–214 EJ/year are expected to be traded across nine world regions by 2050. While this projection is greater than the present trade volumes of coal or natural gas, it remains below the present trade of crude oil. This growth in bioenergy trade largely replaces the trade in fossil fuels (especially oil) which is projected to decrease significantly over the twenty-first century. As climate change mitigation scenarios often show diversified energy systems, in which numerous world regions can act as bioenergy suppliers, the projections do not necessarily lead to energy security concerns. Nonetheless, rapid growth in the trade of bioenergy is projected in strict climate mitigation scenarios, raising questions about infrastructure, logistics, financing options, and global standards for bioenergy production and trade.

Bioenergy aims to reduce greenhouse gas (GHG) emissions and contribute to meeting global climate change mitigation targets. Nevertheless, several sustainability concerns are associated with bioenergy, especially related to the impacts of using land for dedicated energy crop production. Cultivating energy crops can result in synergies or trade-offs between GHG emission reductions and other sustainability effects depending on context-specific conditions. Using the United Nations Sustainable Development Goals (SDGs) framework, the main synergies and trade-offs associated with land use for dedicated energy crop production were identified. Furthermore, the context-specific conditions (i.e., biomass feedstock, previous land use, climate, soil type and agricultural management) which affect those synergies and trade-offs were also identified. The most recent literature was reviewed and a pairwise comparison between GHG emission reduction (SDG 13) and other SDGs was carried out. A total of 427 observations were classified as either synergy (170), trade-off (176), or no effect (81). Most synergies with environmentally-related SDGs, such as water quality and biodiversity conservation, were observed when perennial crops were produced on arable land, pasture or marginal land in the ‘cool temperate moist’ climate zone and ‘high activity clay’ soils. Most trade-offs were related to food security and water availability. Previous land use and feedstock type are more impactful in determining synergies and trade-offs than climatic zone and soil type. This study highlights the importance of considering context-specific conditions in evaluating synergies and trade-offs and their relevance for developing appropriate policies and practices to meet worldwide demand for bioenergy in a sustainable manner.

This paper showcases the suitability of an environmentally extended input-output framework to provide macroeconomic analyses of an expanding bioeconomy to allow for adequate evaluation of its benefits and trade-offs. It also exemplifies the framework's applicability to provide early design stage evaluations of emerging technologies expected to contribute to a future bioeconomy. Here, it is used to compare the current United States (U.S.) bioeconomy to a hypothetical future containing additional cellulosic ethanol produced from two near-commercial pathways. We find that the substitution of gasoline with cellulosic ethanol is expected to yield socioeconomic net benefits, including job growth and value added, and a net reduction in global warming potential and nonrenewable energy use. The substitution fares comparable to or worse than that for other environmental impact categories including human toxicity and eutrophication potentials. We recommend that further technology advancement and commercialization efforts focus on reducing these unintended consequences through improved system design and innovation. The framework is seen as complementary to process-based technoeconomic and life cycle assessments as it utilizes related data to describe specific supply chains while providing analyses of individual products and portfolios thereof at an industrial scale and in the context of the U.S. economy.

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.