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Wood as an Alternative Energy Source in Europe

Wood as an Alternative Energy Source in Europe. Mr. Evgeniy Nadezhdin UNECE Regional Adviser on Energy. Seminar “Sustainable Development National Plan and Replication of the project Results”. 5 December 2006 Minsk. Wood Energy, why are we talking about? Because forests are…

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Wood as an Alternative Energy Source in Europe

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  1. Wood as an Alternative Energy Source in Europe Mr. Evgeniy Nadezhdin UNECE Regional Adviser on Energy Seminar “Sustainable Development National Plan and Replication of the project Results” 5 December 2006 Minsk

  2. Wood Energy, why are we talking about? Because forests are… …“nice” Energy stocks…

  3. …and if something goes wrong, the negative effect is very limited in time and space. Wood energy, why is everybody else talking about? The political frame: • Climate protection (Kyoto protocol commitments, Johannesburg Implementation plan, International conference on renewable energies (Bonn) etc.) • Sustainable energy supply

  4. In Europe: EC Strategy and action plan on Renewable energy sources EU Directive 2001/77/EC Ministerial conference on Environment in Europe European directive on wood waste

  5. Will there be enough Wood… … if wood energy develops throughout the UNECE region?

  6. State of the forests within the UNECE : Forest resource assessment (FAO) in 2005: • Annually growing forest area • Increasing growing stock -Perpetual availability of the raw material due to sustainable management of the natural resources.

  7. Three market trends point to the opportunity to expand biomass fuel markets. 1) Wood is currently available in many regions for less than half the cost of fossil fuel on a delivered Toe basis. In many areas, the supply of low-grade timber and chips is large and demand is small. 2) Rapid fluctuations in energy prices over the last few winters has stimulated many industries to look for a more stable fuel supply. The price of wood fuel has fluctuated little over the last 10 to 15 years.

  8. Conclusions: • Fuelwood is not a panacea and can not assure the entire energy supply, but can help to diversify the national energy portfolio. • Over the threshold of 40 $ per barrel crude oil wood energy is economically competitive without subsidies. • Raw material price for wood will remain stable as the resource is still increasing in volume and surface due to sustainable forest management.

  9. Conclusions: Energy markets world-wide may become more stable due to a large number of energy suppliers compared to the current situation. • International bio-energy trade will increase • New markets may generate substantial income sources for relatively poor world regions. • It is easy to store and serves perfectly as standby energy source to accommodate less permanent and less constant energy sources (e.g. wind/solar).

  10. Conclusions: The development in the wood energy sector has a positive trend. The magnitude of future development will largely depend on external factors like remaining high oil prices, (environmental and economical) political decisions at the local, national regional and international levels.

  11. Thank you ….

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