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84 Infrastructure Sweden is a country rich in natural biomass resource and has a long history of large-scale forest production. Around 52% of total land area is composed of productive forest land. As a result, much of the biomass heat resource comes directly from the forest industry including woody biomass fuels and black liquor used in pulp mills. Around 40% of the timber and pulpwood logs consumed by the forestry industry ends up as process by-products and residues that are used for bioenergy (Ericsson and Nilsson, 2004). The combination of abundant biomass resources and a well-developed infrastructure for their delivery has contributed significantly to the success of the biomass heat market. Policies developed originally to support the Swedish forest industry were exploited for the biomass heat supply chain. Support by the forest industry for biomass heat also had an impact on the design of supporting legislation. The extensive district heating infrastructure also facilitated the rapid deployment of biomass. Large- scale district heating was first employed in the 1960s when the fuel mix was completely dominated by oil. Between 1982 and 1994 the Solid Fuel Act required that new district heating plants with more than 50 GWh (180 TJ) of production capacity had to be designed to be compatible with solid fuels (Ericsson and Nilsson, 2004). Hence, the heating infrastructure could be easily converted to make use of the biomass resource. The existence of established actors and structure in forestry and district heating has facilitated the response to strong and long-standing policy commitments to biomass (Ericsson et al., 2004). Market growth The use of biomass for heat in Sweden has increased significantly since 1990 (Figure 38) reaching 48% of total heat for industry, 30% for district heating and a further 12% by the residential sector. Most of the biomass is produced from the expansive forests. However, in order to fulfill the increasing demand for wood-chips and wood-pellets in the early 1990s, Sweden began to import these fuels (estimated to be between 12.6 PJ-32.4 PJ (4 - 9 TWh) of energy equivalent per year) from the Baltic States, Russia, and Canada17. This shifted the traditional patterns of regional consumption and use. Peat, municipal waste, straw, and vegetative grasses18 are also incinerated to produce heat, although they play a minor role. The use of biomass in district heating systems has increased substantially since the taxation scheme only supported the use of biomass for heat production. Since the early 1980s the use of biomass in district heating systems has increased from 18 PJ (5.0 TWh) in 1984 to 150 PJ (42.1 TWh) in 2004 (Figure 39). Rapid expansion of biomass used in district heating began after the Energy Tax Reform of 1991 (Ericsson and Nilsson, 2004). By 2006 biomass accounted for 62% primary fuels used for district heating (SEA, 2006). As electricity is taxed regardless of fuel-type, biomass has no advantage in power or CHP production. Due to the low cost of electricity which resulted from the liberalization of the electricity market in 1996, only biomass CHP plants that received a subsidy have been constructed (Johansson et al., 2002). In summary By exempting biomass from Swedish energy taxes, the government provided strong, indirect support for biomass heat. Biomass became the least-cost option for district heat production in 1991 due to these exemptions, effectively levelling the playing field with conventional fuels. Subsidies were also offered for biomass installations, technology demonstrations, and long-term RD&D efforts. Due to the package 17. In 2000 it was estimated that 760 000 tonnes of wood fuel was imported into Sweden, equivalent to 14.3 PJ (Ericsson and Nilsson, 2004). 18. The increased use of energy crops (including coppice Salix) may have been impeded by the common agricultural policy which gives preference to annual food crops over perennial energy crops. Following the implementation of this policy the levels of short-rotation forestry production in Sweden stagnated.PDF Image | RENEWABLES FOR HEATING AND COOLING
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