promoting green growth and financing for wood- based …promoting green growth and financing for...
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Promoting green growth and financing for wood-based bioenergy
Mikael Sjövall, Communications Manager
Nordic Environment Finance Corporation
Joensuu, 17 September 2015
NEFCO in brief
• International financial institution established by the Nordic countries
• Loans and equity investments for environmental projects
• Operating in Eastern Europe, around the Baltic Sea as well as globally – Fund specific mandates
• Funds to a total value of EUR 501 million
• Headquartered in Helsinki with 34 employees
• Locally contracted staff in Russia and Ukraine
Helsinki
Geographic mandate
Gap filler. NEFCO fills financial gaps which are not covered by commercial banks.
Green growth. NEFCO enables exports and sales of Nordic green technology to the neighbouring region.
Cost efficiency. NEFCO spends 1/8 of what it costs to reduce environmentally harmful emissions in the Nordic region.
Our products
• Loans
• Equity investments
• Export financing
• Grants
• Carbon credits
Environmental results
Distribution by country and sector
Our involvement in the forestry sector
• Renewable energy and usage of wood-based biomass
• Investments in the furniture industry
• Heating solutions relying on wood chips or pellets
• Reuse of sawdust for the production of energy
• Feasibility studies and investment plans
• Sustainable management of forests
Climate
Case: Production of bioenergy in Grodno, Belarus
• Rindibel was established in 2008 as a joint venture between Rindi Energi, Volkovysk LesHos, Grodno State Industrial Forestry Association and NEFCO
• HedeDenmark becomes new shareholder in 2012
• The business concept is to turn currently unutilized forestry waste into marketable bio-fuel and to provide modern forestry services to local forestry associations.
Climate
Case: Production of bioenergy in Grodno, Belarus
• Rindibel operates two harvesting lines (harvester - forwarder) and a mobile chipping machine.
• Monthly harvesting volumes 7,500 cubic metres per month
• The company is profitable
• Total initial investment envisaged 1 MEUR
• Part of the biomass is delivered to Poland
Climate
Case: Renewable energy in Archangel, Russia
• Usage of sawdust and bark for energy production
• Customers: the local sawmills
• Prevention of methane emissions
• The heat is used for drying timber and heating the buildings in the area
• Two 2.5 MW boilers consume some 15,000 m3 of bark and 4,800 m3 of sawdust/year
Climate
Case: Cleaner production in the furniture industry
• Client: Rossibalt in Znamensk some 55 km from Kaliningrad
• Replacement of two diesel-fired boilers with a new 32 kW boiler using biomass
• Savings for the company: 1.1 million RUB per year
• Installation of sawdust supply system and silage cutter, new sensors and a chimney
• Reduction of CO2, Nox and Sox
Climate
Case: Fuel switch in Myrne, Ukraine
• Client: Agricultural company Pivdenagropererobka LLC in Myrne, Ukraine
• Replacement of an outdated steam-boiler station with a new unit that will use wood-based pellets instead of fossil fuel
• Reduction of 1,054 tonnes of CO2 per year
• Loan provided from NEFCO's Facility for Cleaner Production
Challenges
• Dependence on oil, coal and gas
• Difficulties related to logging permits
• Dysfunctional wood-based bioenergy markets
• Most of the logging residues and the wood chips are exported
• Lack of bioenergy clusters
• Lack of incentives for investing in renewable energy
The future
• New types of biofuels in the transport industry
• Liquified or torrefied biomass for energy production
• Low hanging fruits in the sawmill industry
• Fuel switches and potential savings
• New scientific data on the environmental impact of incinerating biomass
Mikael Sjövall│ [email protected] │ +358 50 3535 045
www.nefco.org
twitter.com/NefcoNordic
youtube.com/nefcofinland
Thank you for listening!