Liquid biofuels for transportation: production potential, utilisation and production costs in Scandinavia

The targets set in the new EU Biofuel Directive result in the production demand of about 1.0 Mtoe/a of liquid biofuels for transportation in 2010 in Northern Europe. Tha availability of raw materials in Scandinavia, Finland as an example, and in some other Baltic Sea countries (Estonia, Latvia, Lithuania and Poland) is discussed. Imported biodiesel and ethanol can be used for a short-term demand of liquid biofuels, but in a longer run new option would be needed. Forest and industrial residues will be the largest source of raw material. The significant GHG emission reductions (about 80-90%) could be achieved with biomass-based methanol and hydrogen compared to the other alternatives studied (gasoline, natural gas-based methanol, hydrogen from electrolysis). Integration of fuel production to CHP plants, refineries or pulp and paper mills will reduce the production costs typically by 20-40%. Parallel to traditional wood fuels, forest industry residues and spent cooking liquors, municipal and industrial biogenic wastes will offer economically attractive options for new investments. In order to reduce the production costs of wood-based liquid biofuels, significant R&D&D efforts are needed.