Heat Entrepreneurship generates significant benefits for the local economy

KUAS mid July

An ongoing study by Karelia UAS, Natural Resources Institute Finland (LUKE) and Finnish Forest Centre analyses local socio-economic impacts of heat entrepreneurship based on local wood fuels.

The study focuses on the case of Eno Energy Cooperative – a local heat enterprise producing annually about 15 500 MWh heat with local woodchips for both public and private customers.

In Eno, replacing heating oil with renewable alternative has resulted 4.1 MEUR cost savings in 2001-2015. The savings, resulting mainly from significant price difference, are allocated to both public municipal customers (1.8 MEUR) and private household customers (2.3 MEUR). As this income is further invested, it generates additional socio-economic benefits. Assuming that public sector used the savings for local social services and households for local retail/commerce, additional induced socio-economic income impact was about 2.85 MEUR and employment impact about 75 jobs.

These impacts, resulting of cost savings, are very significant for the local economy. As the study continues, also the forest owners’ benefits, impacts of the plant construction, and the economic supports will be considered in detail.

Eno Energy Cooperative attends GREBE EES Scheme in Finland (autumn 2017). The Co-op also shares actively identified practices through the networks of heat entrepreneurs both regionally and nationally, and is also know reference site for international visitors.

Finnish roundwood harvests to a record level in 2016

 

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Photo: Erkki Oksanen / Luke

The total amount of roundwood removed from Finnish forests for the forest industry or energy production was 70 million cubic metres in 2016. The figure was a new record and more than two million cubic metres higher than during the previous year.

According to statistics by the Natural Resources Institute Finland (Luke), a total of 62.1 million cubic metres of roundwood were harvested for export or for the production of forest industry products. Of this volume, sawlogs accounted for 26.3 million cubic metres and pulpwood for 35.8 million cubic metres. The total volume increased by 3.3 million cubic metres or six per cent on the previous year. The industrial roundwood removals exceeded the annual average of the previous ten-year period by 9 million cubic metres or 17%.

A total of 8.2 million cubic metres of stemwood were harvested to be used as wood chips in heat and power plants or as fuelwood in residential housing. The volume decreased by 11% on the previous year, but was eight per cent higher than the average of the previous ten-year period. In addition to stemwood, logging residues and stumps were harvested from forests for energy production, totalling slightly less than three million cubic metres.

Volumes of wood to be used as wood chips are now recorded in the statistics on the basis of information reported by harvesting organisations, while in previous years the statistics were based on consumption volumes. This means that the information relating to the area where the forests are located and the right time, similarly to industrial roundwood, says Senior Statistician Jukka Torvelainen of the Natural Resources Institute Finland (Luke).

Total roundwood removals 70 million cubic metres, more than 85% of the maximum sustainable felling potential

The forest land used for wood production has close to 2,200 million cubic metres of roundwood. Luke estimates based on the results of the National Forest Inventory 11 that 81 million cubic metres of stemwood can be harvested in a sustainable way annually in this decade. Of this volume, 70 million cubic metres or approximately 87% were harvested in 2016. However, there was considerable regional variation in the utilisation rate of felling potential. Roundwood removals exceeded the estimated annual felling potential in many regions in Southeast Finland and in Häme. The utilisation rate for spruce was higher than that for other tree species, says Torvelainen.

Roundwood drain increased to 86 million cubic metres

The total annual drain is the combination of roundwood removals, logging residue left in the forest and naturally dead trees left in the forest. In 2016, the latter two totalled just over 15 million cubic metres, causing the annual drain to reach almost 86 million cubic metres. The volume was four per cent higher than during the previous year.

The annual increment of growing stock totals approximately 110 million cubic metres. It thus exceeded removals and natural drain by almost 25 million cubic metres even last year.” (Luke News)

The Original news article can be found from Luke´s news section under:

https://www.luke.fi/en/news/finnish-roundwood-harvests-record-level-2016/

Three Finnish companies selected for the Entrepreneurship Enabler Scheme

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Eno Energy Cooperative district heating plant.

An open call for businesses to participate in GREBEs Entrepreneurship Enabler Scheme (EES) in Finland was launched in April 5th and ended in May 12th.  The three companies to participate in the EES mentoring process during next autumn are Eno Energy Cooperative, Rajaforest Ltd. and Havel Ltd.

GREBE partner Karelia UAS shared information on the Finnish EES roll-out in public industry events and website. The scheme received the attention of SMEs considering renewing their business strategy and improving production development and efficiency. The selected companies are famous for long-term operation and innovation activities in forest energy.

Eno Energy Cooperative has been an example of heat entrepreneurship based on local forest raw materials. The cooperative with 54 members (mostly forest owners), was rewarded in 2014 as a Heat Entrepreneur/enterprise of the year. The cooperative is also famous as active developer in the sector, and generates significant socio-economic benefits to its surrounding region.

Rajaforest Ltd. is a forest contracting company and a heat enterprise. The company supplies timber and forest fuels, operates three municipal biomass district heating plant in Tohmajärvi, and owns and operates one in Kesälahti.

Havel Ltd. is a metal and plastic products manufacturer located in Ilomantsi. The company is a famous innovative product developer for forest technology and forest energy sector, among others. The company has also significant growth potential, in which GREBE EES can provide tailored support.

The EES in Finland has started with preliminary interviews and mentoring sessions will begin in autumn 2017.

The GREBE Project holds its 6th partner meeting in Norway

M Doran presenting

The GREBE project partners are holding their sixth partner meeting this week in Narvik, Norway.   The Western Development Commission and the Norwegian partners Narvik Science Park have been working together to prepare a programme to fit in as much as possible.

GREBE site visit

During the first part of our partner meeting we discussed our activities since our meeting in Finland in February and progress on rolling out our Entrepreneur Enabler Scheme to the partner regions, and plans for the next six months.  Discussions are taking place on other work package activities including the development of our online funding options decision making tool, our Virtual Energy Ideas Hub and the development of a Renewable Energy Resource Assessment Toolkit.  Tomorrow (Thursday) we will visits to Statkraft, Nordkraft, Fortum Wind Park and meetings with some other SMEs in the Narvik area.   We will have details of our activities in future blog posts and our next e-zine.

Key researchers unanimous on the climate impacts of forests use

Finnish climate change panel

“Key researchers unanimous on the climate impacts of forests use”

(Press release of the Finnish Climate Change Panel)

Decision-makers, the media and the public have felt that there are contradictory messages on the climate impacts of the forest use. A new report by the Finnish Climate Change Panel illustrates that key Finnish researchers specialising in forestry are quite unanimous on the central claims related to the sustainability of bioeconomy. Discourse between researchers, decision-makers and enterprises, and the related advanced analyses are still necessary for creating a sustainable bioeconomy.

The Finnish Climate Change Panel surveyed researchers’ insights on the climate change impacts of forest use. Responses were assessed and processed by 28 researchers from the University of Helsinki, the Finnish Meteorological Institute, the University of Eastern Finland, the University of Jyväskylä, the Finnish Environment Institute and VTT Technical Research Centre of Finland. The process included a joint seminar, two enquiry rounds related to claims, and approval of the document.

The main claims approved by researchers:

  • It is possible to increase wood production with forest management, but it is not possible to significantly increase the net growth of stem wood in the next decades. A significant increase can only be expected in the 2050s and after.
  • Increasing logging and wood harvesting will decrease the carbon sink and carbon storage of Finnish forests for at least forthcoming decades compared to a situation where harvesting is not increased.
  • The greatest climate benefit of wood use can be achieved with long-lasting wood-based products that preserve the carbon content of the wood in use for a long time and replace products that have a high-emission life cycle impact.
  • In the long term, replacing fossil fuels with forest energy will create climate benefits if fossil fuels are permanently replaced, forest lands are maintained and the growth of forests remains unchanged or increases in the future.
  • The model calculations representing the future development of Finnish forests produced to aid political decision-making should be completed with information such as analyses describing the different projected paths of climate change.
  • The goals set for the different ways of using forests – such as wood production, carbon sequestration, conservation and recreational use – compete with each other, so it is unlikely that these goals will be reached simultaneously.
  • A significant increase in forest harvests may lead to a clear deterioration of the forest biodiversity unless the matter is taken into account sufficiently with the practices of forest management and the forest conservation network.

According to the Climate Change Panel, the result provides a good basis for national and international discussion on the role of Nordic forests in EU policy on climate and bioeconomy. The climate-smart use of forests is an important part of creating a low-carbon economy. So that the path will be consistent and sustainable, bioeconomy decisions must be based on scientific data.” (Luke News)

The Original news article can be found from Luke´s news section under:

https://www.luke.fi/en/news/key-researchers-unanimous-climate-impacts-forests-use/

The link to the report “Main Messages from researchers concerning the climate impacts of forest utilization” can be found here: http://www.ilmastopaneeli.fi/uploads/selvitykset_lausunnot/Ilmastopaneeli_mets%C3%A4v%C3%A4itt%C3%A4m%C3%A4t_final_englanniksi_%202017.pdf

 

GREBE participates in the Arctic Project Clustering Event in Sweden in May

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The GREBE Project were pleased to be invited to participate in the Arctic Project Clustering Event held in Skellefeå May 10-11th 2017.  This event gathered more than 90 participants from the programme areas of Botnia-Atlantica, Interreg Nord, Northern Periphery and Arctic programme and Kolarctic CBC. The aim of the event was to find synergies between ongoing projects in the different programmes, share good examples and challenges as well as identify future cooperation possibilities.

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The event began with a presentation of Skellefteå held by Helena Renström, Marking Director at Skellefteå municipality, providing insight into the specific areas of interest and growth as well as development potential in Skellefteå.

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Nils Arne Johnsen, Arctic Director at Ramboll, gave an overview of what is meant by the Arctic and the special features and actors of operating in the area. Johnsen concluded that many of the challenges in the Arctic are also provide opportunities for investment and development.

The second day of the event Baiba Liepa, Project Manager at the Interact programme, provided a framework for territorial cooperation, the reasoning behind different programme types and how Interreg programmes and projects connect to overall goals of the European Union.

During the first day plenary session Ole Damsgaard, Head of Secretariat at the Northern Periphery and Arctic programme, presented the Arctic cooperation within which the four programmes come together to share knowledge, organise joint activities and combine resources to obtain greater impact. The second day representatives for all four programmes, Jenny Bergkvist, Programme Director at Botnia-Atlantica, Lena Anttila Programme Director at Interreg Nord, Marjaana Lahdenranta, CBC Expert at Kolarctic CBC and Ole Damsgaard presented the programmes in more detail. Similarities and differences were highlighted together with complementary goals that provide cooperation opportunities for projects implemented in the different programmes. The possibility to apply for financing for clustering projects was also announced by the Northern Periphery and Arctic programme.

The clustering of projects was organised through thematic workshops within E-health, Energy efficiency, Bio-sconomy and Entrepreneurship, to which selected projects and external guests from all four programmes were invited. The aim of the workshops was to present ongoing projects in the different programmes, find synergies and identify knowledge gaps and common interests.

The workshop within E-health was moderated by David Heaney, from Rossal Research & Consultancy. Common themes were connecting health prevention and detection to technology and data collecting as well as receiving input from SME´s in the field.

Michael Jalmby, ESAM, moderated the Energy efficiency workshop in which the importance of energy efficient and sustainable solutions for renovations were discussed together with existing gaps between knowledge and implementation of best practices.

The Bio-economy workshop was moderated by Ian Brannigan from Western Development Commission Ireland and Michael Doran from Action Renewables. Common themes were how to disseminate project results to ensure real impact and developing research findings into marketable solutions for SME´s.

The workshop within Entrepreneurship was moderated by Camilla Sehlin, Incita AB and discussed how to identify different needs of SME´s and deliver the right results as well as ways of bringing different types of companies together.

The workshop discussions were concluded at the end of the event to give insight into the outcomes of the different themes.

During the event a study visit was organised to the innovation house The Great Northern were Phil Hopkin, Business Community Manager, told about the history and ideology behind The Great Northern and how the identity of a region can be utilized in creating new opportunities.

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LUKE and Karelia UAS hold GREBEs second Industry Advisory Group meeting in Finland

Finland IAG May 2017
GREBE partner Lasse Okkonen (Karelia UAS) presenting at the Finnish Industry Advisory Group meeting

GREBE Industry Advisory Group (IAG) contributes towards dissemination of GREBE outputs and learnings among their wider networks, including at local, regional and national policy level where possible.

The second annual meeting was organized at LUKE, Metla-talo Joensuu on Wednesday 26th of April 2017.  Finnish GREBE project partners updated the IAG on the project developments and outcomes over the last year, introduced the GREBE Renewable Business Portal (Robert Prinz, LUKE) and its contribution to the business mentoring through the Entrepreneurship Enabler Scheme (Lasse Okkonen, Karelia UAS).

The group discussion was interesting and highlighted the importance of marketing & sales skills in companies and SME´s. The discussion also included the planned online/virtual course preparation and video production of Finnish technology & renewable energy cases showing the entire chain from the raw material to the end-use. The IAG provided valuable insights for the GREBE activities on support scheme, business calculations, entrepreneur enabler scheme and demonstration cases and mentioned the importance of National languages in dissemination material such as in videos or other selected material.

IAG also discussed on how to link and work together with other activities, projects and support and how GREBE activities can most effectively be implemented, based on their own experience of working in or supporting the renewable energy. The IAG in Finland includes representatives from the renewable energy SMEs, research and education, business development companies, regional authority and agricultural producers and forest owners union.

GREBE publishes its 4th project E-Zine

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The GREBE Project has published its fourth e-zine to showcase the activities and ongoing goals of the project.  

We held our fifth partner meeting in Joensuu, Finland in February, where we held a joint conference with the IEA Bioenergy Task 43 and launched our online training and networking platform renewablebusiness.eu.

This e-zine will highlight details of our Report on the Influence of Environmental Conditions in the NPA & Arctic Regions, our report which identifies technologies which can be transferred from areas of best practice to areas where renewable energy uptake is low and our Growth Strategy Guidelines for SMEs in renewable energy.

We also have details of four participating companies in our Entrepreneur Enabler Scheme in Northern Ireland (MSL – McCrea Services Ltd., Moffitt & Robinson, Rowe Energy and Winters Renewables) and information on three more of our policy workshops.  To read our e-zine, please click here

Biomass Atlas – a new biomass tool supporting decision making

Biomass Atlas1

The Natural Resources Institute Finland (Luke) has been leading the development of the Finnish Biomass Atlas, a web-based GIS platform for assessing biomass potentials within freely delineated geographical areas. The platform will be launched in May (in Finnish), the development of the tool will continue together with the project partners.

Biomass Atlas2

Biomass selector allows the user to select the assortments of interest. The data can be hierarchically organized. In this case the first level consists of three alternatives: Land cover, total biomass production and the potential of primary residues. At the second level forest chips have been selected in this example. Finally, the user has chosen the individual assortments: Small trees (harvested as delimbed stems), Logging residues (only spruce, according to Business as usual scenario) and Stumps (only spruce, according to Business as usual scenario).

In addition to basic map tools like zooming, panning and measurement of distances and areas, the user can delineate a polygon for which Biomass Atlas calculates the total of the selected assortments. The results can be exported into an Excel workbook. The results can also be calculated to predefined regions, e.g., to municipalities or provinces.

Biomass Atlas3

The user can identify a location on the map for which the potentials within a distance are added up. The distance can be calculated as Euclidean distance (straight line) or via road network.

GREBE identifies technologies which can be transferred from areas of best practice to areas where renewable energy uptake is low

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The Northern Periphery & Arctic (NPA) Programme area is undoubtedly rich in many renewable energy resources. However the form and extent of these resources vary considerably throughout the region. While these differences may be clear at national levels they also exist at more local levels as well and, as a result, areas within the NPA region will have very different technological requirements for the effective utilisation of renewable energy resources.  The aim of Work Package 5 is to link the appropriate renewable energy technologies to the available resources and corresponding demand, for every partner region participating in the GREBE.  This work package is led by Scotlands Environmental Research Institute (ERI), which is part of the University of Highlands & Islands.

The first step towards successful achievement of the objective was the 5.1 “Report identifying technologies which can be transferred from areas of best practice to areas where renewable energy uptake is low”.  This report lays the foundation for linking the appropriate renewable energy (RE) technology to the specific locality, through careful analysis of the input provided by partner regions, together with, identification of similarities and transferable solutions from one partner to another.

The main aim of this report is to inform the other activities in this work package by identifying key areas and technologies with the potential to generate new business models, in areas where renewable energy is less developed.    The report wishes to establish transferability of renewable energy technologies from areas of best practice to areas where RE uptake is low.  In order to ensure the appropriate level of coverage across all relevant technologies and key areas, all partners provided input for their specific region regarding:

  • Areas where non-renewable resources are meeting energy requirements, or where emerging businesses require new energy sources and are considering fossil fuel based energy systems.
  • Relevant Renewable Energy (RE) technologies and renewable integration enabling technologies relevant to the region, including the corresponding risk and market penetration levels.

Areas were separated in three different clusters – sectors, industries and geographic areas. As anticipated, there were recurrent key areas in the feedback from the partners across the NPA Region. The commonalities across the feedback from all partners, substantiates the fact that despite the geographical differences, the NPA region is facing similar challenges, which can be best overcome and realised by transnational cooperation. After a careful review of the individual partner feedback, recurrent areas across regions were pinpointed.  This generated a set of preliminary findings on transferable solutions from partners in which, areas of best practice integration of renewables where identified, to similar areas in other partner regions, where the uptake of renewables is low.

The second objective of the report was to identify the relevant RE technologies and renewable integration enabling technologies applicable to every partner region, including the equivalent risk and market penetration levels. A similar approach, as with the areas, was taken.  A review of the available technologies (the corresponding market penetration and risk) was undertaken, for every partner, individually. This led to the assembly of preliminary findings on RE technology transferable solutions, from regions where a given RE technology has high market penetration and low risk, to regions, where the same RE technology has low market penetration and high risk.  An in-depth analysis of the examined RE technologies, will be presented in our next report ‘A Collection of Case Studies across partner regions, accompanied by technology videos and advice notes’.

The finding of the report can be found on the Project GREBE website (http://grebeproject.eu/wp-content/uploads/2017/03/GREBE-Report-identifying-transferable-renewable-energy-technologies-February-2017.pdf )

The completion of the objectives set in the report, assist us in defining the parameters, technologies, areas and demand, which are all incorporated in the final product of Work Package 5 – the Renewable Energy Resource assessment (RERA) Toolkit.