IN DEVELOPED ECONOMIES
J'
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An Overlooked Renewable. I
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•
I
Though it is often ignored in national conventions
about renewables, wood energy dominates renewable
11energy portfolios in many developed countries—and is
Ipoisedfor exponential growth. Francisco Aguilar sets
the record straight about this salient energy source.
C
onsidered to be the first form of
and pulp industries, whereas others can
energy harnessed by humans, wood
be created from processed wood products
was long the primary source of heat
that are recovered and repurposed at the
end of their consumer life cycles. About 58
and illumination for people in every corner
of the globe. Today, it is estimated that
percent of wood fuels across the United
more than 2 billion people in developing
Nations Economic Commission for Europe
countries rely primarily on wood and other
(UNECE) region—a group of 56 countries
forest products for their daily cooking and
that includes the United States, Canada,
heating needs, causing the public to asso­
European nations, the Russian Federation,
ciate the use of such resources with tropi­
and the Commonwealth of Independent
cal deforestation and poverty. Meanwhile,
States—come from indirect sources. The
energy headlines in developed economies
rest are attributed to direct sources (32.9
have been dominated by stories about
percent), recovered wood (3.8 percent),
coal and oil since the mid-1800s, making
and unspecified supplies (5.4 percent).
Wood fuels are ultimately converted
it easy to forget that the exploitation of
those fossil sources by humans has been a
to energy through combustion using one
relatively recent development.
of three main processes. Direct firing or
co-firing with other fuels—such as coal-
Both ideas—that energy derived from
forests is used primarily in developing
is likely the method most familiar to
nations and that its importance in the
consumers and requires the least amount
energy portfolios of developed economies
of pre-processing in order to render
is negligible—fail to capture the reality
fuels usable. Woody feedstock can also
of current energy markets. Wood energy
be biochemically transformed (using
represents the leading source of renewable
chemicals or enzymes) into sugars for the
energy in many developed countries across
production of biofuels, or thermochemi-
North America and Europe. And in the
cally transformed (using heat, pressure,
United States, wood energy accounts for
and catalysts) into biofuels and other
25 percent of renewable energy consump­
co-products.
The wide range of feedstocks and
tion, second only to hydropower and more
prominent than wind and solar energy.
conversion processes available today
This high level of generation has been
allows for a diversity of sectors that manu­
achieved thanks to healthy forest resourc­
facture and use wood energy. Forest-based
es supported by a combination of recent
industrial producers, such as pulp and
market and policy developments.
paper manufacturers, burn wood-based
fuel to generate electricity or heat used
Wood Energy in the Twenty-First
internally to support production. So do
Century
plants designed to generate electricity or
The term "wood energy" refers to energy
combined heat and power to sell to third
derived from solid, liquid, and gaseous
parties. And residential consumers use
wood fuels, including raw firewood,
wood-burning fireplaces or pellet stoves
processed charcoals, pellets, briquettes,
for home heating. Technological progress
residual fibers, and black pulping liquors.
has allowed an increase in energy output
Some of these fuels can be sourced
while reducing the amount of associated
directly from forests or indirectly as
pollution, including particulate matter, that
by-products from the wood processing
limited wider adoption in the past.
22
C
onsidered to be the first form of
and pulp industries, whereas others can
Modern Wood Energy Markets
energy harnessed by humans, wood
be created from processed wood products
One of the most comprehensive sources of
the largest amount of wood energy at
was long the primary source of heat
that are recovered and repurposed at the
information about wood energy markets in
47 percent—representing about 282.8
and illumination for people in every corner
end of their consumer life cycles. About 58
developed countries comes from the Joint
million cubic meters of wood—followed
of the globe. Today, it is estimated that
percent of wood fuels across the United
Wood Energy Enquiry, a survey of wood
by residential consumers (33 percent),
more than 2 billion people in developing
Nations Economic Commission for Europe
energy consumption in the UNECE region.
the power and heat sector (18 percent),
countries rely primarily on wood and other
(UNECE) region—a group of 56 countries
The most recent results, from a 2011 Joint
and other undesignated uses (2 percent).
forest products for their daily cooking and
that includes the United States, Canada,
Wood Energy Enquiry answered by 27
These statistics are significant in highlight­
heating needs, causing the public to asso­
European nations, the Russian Federation,
UNECE member countries, revealed that
ing the relationship between output and
ciate the use of such resources with tropi­
and the Commonwealth of Independent
wood energy accounted for 3.3 percent of
wood fuels, but they don't reveal the large
cal deforestation and poverty. Meanwhile,
States—come from indirect sources. The
the region's total primary energy supply
variations among the ways that individual
energy headlines in developed economies
rest are attributed to direct sources (32.9
(Figure 1). Although absolute wood energy
countries consume wood energy. Figure 2
have been dominated by stories about
percent), recovered wood (3.8 percent),
consumption tends to fluctuate in the
on page 24 provides a fuller picture. Note
coal and oil since the mid-1800s, making
and unspecified supplies (5.4 percent).
United States and Canada, the European
that Canada's industrial sector is the largest
Wood fuels are ultimately converted
it easy to forget that the exploitation of
Overall, the industrial sector consumes
Union has experienced an increase in
consumer of wood energy at 83 percent,
those fossil sources by humans has been a
to energy through combustion using one
consumption of more than 104 percent in
whereas the power and heat sector is domi­
relatively recent development.
of three main processes. Direct firing or
the last two decades. Notably, the share of
nant in Denmark (81 percent) and the Neth­
co-firing with other fuels—such as coal-
wood used for energy jumped during the
erlands (76 percent). Additionally, half of all
forests is used primarily in developing
is likely the method most familiar to
recent recession, suggesting that energy
wood energy in Germany was shown to be
nations and that its importance in the
consumers and requires the least amount
production may have provided an alterna­
consumed by the residential sector, while
energy portfolios of developed economies
of pre-processing in order to render
tive market for wood fibers while demand
Austria has a near-equal balance among
is negligible—fail to capture the reality
fuels usable. Woody feedstock can also
for more traditional products, such as paper
power and heat, industry, and residential
of current energy markets. Wood energy
be biochemically transformed (using
and cardboard, declined.
wood energy usage.
represents the leading source of renewable
chemicals or enzymes) into sugars for the
Both ideas—that energy derived from
energy in many developed countries across
production of biofuels, or thermochemi-
Figure 1. Share of Wood Energy in Total Energy Supply in Select United Nations Economic Commission
North America and Europe. And in the
cally transformed (using heat, pressure,
for Europe (UNECE) Member Countries
United States, wood energy accounts for
and catalysts) into biofuels and other
25 percent of renewable energy consump­
co-products.
The wide range of feedstocks and
tion, second only to hydropower and more
prominent than wind and solar energy.
conversion processes available today
This high level of generation has been
allows for a diversity of sectors that manu­
achieved thanks to healthy forest resourc­
facture and use wood energy. Forest-based
es supported by a combination of recent
industrial producers, such as pulp and
market and policy developments.
paper manufacturers, burn wood-based
fuel to generate electricity or heat used
Ireland
UnitedKingdom
Netheriands
Italy
UnitedStates
France
Switzerland
Norway
CzechRepublic
Wood Energy in the Twenty-First
internally to support production. So do
Century
plants designed to generate electricity or
The term "wood energy" refers to energy
combined heat and power to sell to third
Austria
derived from solid, liquid, and gaseous
parties. And residential consumers use
Estonia
wood fuels, including raw firewood,
wood-burning fireplaces or pellet stoves
Sweden
processed charcoals, pellets, briquettes,
for home heating. Technological progress
residual fibers, and black pulping liquors.
has allowed an increase in energy output
Some of these fuels can be sourced
while reducing the amount of associated
directly from forests or indirectly as
pollution, including particulate matter, that
Germany
Canada
Finland
Total UNECE
region
10%
limited wider adoption in the past.
by-products from the wood processing
22
Souice: joint Woorl Energy Byqtiiiy 2011, a surveyof WOad energy
15%
20%
mrnrnvd by Z/UNtCE countries,
httpy/Mu/w.uiwce.or(//foiWb/iwcf hlmi
23
25%
Figure 2. Wood Energy Uses in Select United Nations Economic Commission for Europe (UNECE)
Member Countries
• Power and heat
• Industrial
• Residential
Bother
Canada
France
United States
Norway
Czech Republic
Ireland
Finland
Austria
Sweden
Switzerland
Germany
Estonia
Italy
United Kingdom
Netherlands
Denmark
Total UNECE
region
25%
50%
75%
100%
Source:Joint Wood Energy Enquiry 2011, a survey of wood energy consumption answered by 27 UNECE countries.
http://www unece.org/lorests/jwee html.
Despite technical advances, the growing
Historically, the amount of wood energy
produced and consumed in an economy
wood energy market is still very much influ­
has been heavily dependent on the local
enced by transportation costs and the loca­
availability of forest resources. In recent
tion of nearby wood resources, explaining
years, markets have become regional and
the vast differences in wood market involve­
reached almost global scale, thanks to
ment among UNECE members. Nordic and
renewable energy mandates and techno­
Baltic nations are by far the most invested
logical advances. The peptization of wood,
consumers of wood energy; in Finland and
for example, allows producers to condense
Sweden, wood fuels generate more than 20
the energy content found in wood fuels.
percent of total primary energy supplies—
By making the transportation of wood
the largest of any developed countries.
fuels more cost-effective, these advances
Conversely, countries such as the United
have helped to encourage the creation of
Kingdom and Ireland, which lack the vast
a dynamic international market for wood
forests of their Scandinavian counterparts,
energy that may further diminish proxim­
reported the lowest levels of wood energy
ity limitations. In the United States, for
consumption in the survey. Still, some
example, where forested area has remained
countries have already circumvented this
stable over the last century and annual
link through imports; the Netherlands and
forest growth rates exceed removals and
Denmark both support higher-than-average
mortality, some of the excess biomass and
per capita wood energy consumption by
by-products from the industry are pellet-
sourcing wood from a number of other
ized and traded regionally and abroad. In
countries. Their import of wood highlights
2013, US wood pellet exports to Europe
the growing capacity of the international
reached nearly 3 million metric tons.
wood energy market.
24
Figure 2. Wood Energy Uses in Select United Nations Economic Commission for Europe (UNECE)
Member Countries
Power and heat
Industrial
Residential
Other
Canada
France
United States
Norway
Czech Republic
Ireland
Finland
Austria
Sweden
Switzerland
Germany
Estonia
Italy
United Kingdom
Netherlands
Denmark
Total UNECE
region
50%
25%
75%
100%
Source: loint Wood Energy Enquiry 20)1, a survey of wood energy consumption answered by 27 UNECE countries.
http://www.unece.org/forests/jwee.h tml.
This residential biofuel boiler burns wood pellets to supply the home with heat and hot water.
Despite technical advances, the growing
Historically, the amount of wood energy
Renewable Energy and Mandates
United States and Russia—has dramatically
produced and consumed in an economy
wood energy market is still very much influ­
Wood energy's role in modern energy
increased as a result of European import
has been heavily dependent on the local
enced by transportation costs and the loca­
usage is often understated. Its renewable
needs (Figure 3). And the European Union
availability of forest resources. In recent
tion of nearby wood resources, explaining
energy designation has made wood fuel
is expected to double its demand for wood
years, markets have become regional and
the vast differences in wood market involve­
a popular choice for countries seeking to
for energy from 435 million cubic meters in
reached almost global scale, thanks to
ment among UNECE members. Nordic and
meet specific renewable energy targets.
2010 to reach 860 million cubic meters in
renewable energy mandates and techno­
Baltic nations are by far the most invested
The near-doubling of EU wood energy
2030, which will likely require even greater
logical advances. The peptization of wood,
consumers of wood energy; in Finland and
consumption since 1990, for example, is
reliance on imports.
for example, allows producers to condense
Sweden, wood fuels generate more than 20
often attributed to the "20-20-20 by 2020"
the energy content found in wood fuels.
percent of total primary energy supplies—
directive set by the European Parlia­
renewable portfolio standards adopted
By making the transportation of wood
the largest of any developed countries.
ment and the Council of the European
by many states across the United States.
fuels more cost-effective, these advances
Conversely, countries such as the United
Commission. Officially known as Directive
Recently instituted state-level mandates
have helped to encourage the creation of
Kingdom and Ireland, which lack the vast
20009/28/EC, this policy requires that 20
coupled with federal incentives under the
a dynamic international market for wood
forests of their Scandinavian counterparts,
percent of the total primary energy supply
Public Utility Regulatory Policies Act of
energy that may further diminish proxim­
reported the lowest levels of wood energy
of participating countries comes from
1978, and others, have resulted in greater
ity limitations. In the United States, for
consumption in the survey. Still, some
renewable sources, alongside a 20 percent
use of wood in coal-fired power plants and
example, where forested area has remained
countries have already circumvented this
increase energy efficiency and a 20 percent
dedicated boilers. According to data from
Wood energy commonly qualifies under
stable over the last century and annual
link through imports; the Netherlands and
reduction in greenhouse gas emissions by
the US Environmental Protection Agency, 89
forest growth rates exceed removals and
Denmark both support higher-than-average
the year 2020.
coal-fired power plants use some quantity
mortality, some of the excess biomass and
per capita wood energy consumption by
by-products from the industry are pellet-
sourcing wood from a number of other
also has affected countries on the other
some power plants, incorporating wood
ized and traded regionally and abroad. In
countries. Their import of wood highlights
side of the Atlantic; Canada's own wood
as an energy feedstock can be fairly easy,
2013, US wood pellet exports to Europe
the growing capacity of the international
energy use is declining, but its export
requiring relatively modest investments
reached nearly 3 million metric tons.
wood energy market.
of wood pellets—as well as that of the
in new infrastructure. Some estimates
24
This increasing demand for renewables
of biomass for the generation of power. For
25
Figure 3. EU Imports of Wood Pellets from Canada, Russia, and United States
5
United States
H Canada
M Russia
3.75
c
i
25
1.25
2009
2010
2011
2012
Source: EuroStat
suggest that about 10 percent of coal used
The Future of Wood Energy
by power plants in the northeastern United
The use of wood energy among many
States could be replaced with available and
UNECE countries, and possibly even
cost-competitive woody materials.
non-UNECE countries in Asia, is expected
Although wood is widely recognized as a
to continue climbing through 2020. But
renewable source of energy, its designation
wood fuel's long-term usage in future
as a carbon-neutral alternative depends
energy portfolios will likely be decided by
on many factors. Trees can be replanted to
a number of uncertain factors that differ
replenish stocks of harvested timber, and a
depending on the sector. The use of wood
significant number of regional and national
energy by the industrial sector is largely a
forest management programs have been
function of wood product output. Over­
established worldwide to responsibly main­
all economic growth and consumption
tain the number of trees available for future
of other wood products will have a large
harvests. Trees also absorb varying levels of
influence on future wood energy used by
carbon dioxide for use in photosynthesis.
industry.
And although this does reduce the impact
In the residential sector, any changes in
of wood fuel combustion on the environ­
competing energy prices might pose a risk
ment, it takes time to fix carbon back into
to—or present an opportunity for—the
growing trees. Unquestionably, the better
expansion of wood energy consumption.
opportunities to reduce carbon emissions
The advent of inexpensive natural gas
using wood energy arise from an integrated
supplies in large areas of North America
approach that maximizes forest produc­
will likely cause a decline in its overall
tivity and energy conversion, minimizes
residential wood energy demand. But in
greenhouse gas emissions along the supply
some particular areas, such as the north­
chain, optimizes manufacturing by using
eastern United States, wood energy is likely
by-products for energy, and promotes the
to remain price competitive and become a
replacement of non-renewable materials
more prominent source of household heat­
with wood products.
ing. Whether natural gas becomes cheaply
26
Figure 3. EU Imports of Wood Pellets from Canada, Russia, and United States
5
United States ICanada
I
Russia
3.75
3
2.5
1.25
2009
2011
2010
2012
Peptization allows producers to condense the energy content found in wood.
Source: EuroStat
suggest that about 10 percent of coal used
The Future of Wood Energy
available in Europe will affect residential
by power plants in the northeastern United
The use of wood energy among many
wood energy use.
States could be replaced with available and
UNECE countries, and possibly even
cost-competitive woody materials.
non-UNECE countries in Asia, is expected
Although wood is widely recognized as a
further dependent on whether timber and
wood energy markets are able to produce
Natural gas will likely play an important
competitive prices and, ultimately, profit­
role in how much wood energy is used in
able economic and environmental returns.
to continue climbing through 2020. But
the power and heat sector, too, although
renewable source of energy, its designation
wood fuel's long-term usage in future
renewable energy mandates will likely
the alignment of a diverse group of issues,
as a carbon-neutral alternative depends
energy portfolios will likely be decided by
sustain or increase wood energy use unless
including land management, energy
on many factors. Trees can be replanted to
a number of uncertain factors that differ
there is a significant paradigm change in
production, socially acceptable environ­
replenish stocks of harvested timber, and a
depending on the sector. The use of wood
public policy.
mental objectives, and varying meth­
significant number of regional and national
energy by the industrial sector is largely a
forest management programs have been
function of wood product output. Over­
policy interventions and timber markets,
This alignment involves participants at
established worldwide to responsibly main­
all economic growth and consumption
and significant questions remain about
every stage of energy production, with
tain the number of trees available for future
of other wood products will have a large
the economic availability and feasibility
forest owners, power generators, and
harvests. Trees also absorb varying levels of
influence on future wood energy used by
of obtaining more wood fuels than are
industry members working to supply the
carbon dioxide for use in photosynthesis.
industry.
currently being generated. Additionally,
energy requirements of policymakers and
any expansion in the use of wood resourc­
consumers. Studying the elements that
And although this does reduce the impact
In the residential sector, any changes in
Wood energy is unique in that it requires
ods of fuel production and combustion.
Wood energy use is highly dependent on
of wood fuel combustion on the environ­
competing energy prices might pose a risk
es for energy will need to be evaluated
make up this network—from management
ment, it takes time to fix carbon back into
to—or present an opportunity for—the
and justified on the basis of its impact
and economics to ownership and trade-
growing trees. Unquestionably, the better
expansion of wood energy consumption.
on the environment, including potential
can help foster a better understanding of
opportunities to reduce carbon emissions
The advent of inexpensive natural gas
forest depletion and net greenhouse gas
how public policy influences the develop­
using wood energy arise from an integrated
supplies in large areas of North America
generation. If the demand for wood energy
ment of wood energy. •
approach that maximizes forest produc­
will likely cause a decline in its overall
continues to grow, materials that would
tivity and energy conversion, minimizes
residential wood energy demand. But in
otherwise go into the manufacturing of
greenhouse gas emissions along the supply
some particular areas, such as the north­
other wood products might be pulled
Economies: Resource Management, Economics, and Policy.
chain, optimizes manufacturing by using
eastern United States, wood energy is likely
into the wood energy market, requiring
New York: Routledge.
by-products for energy, and promotes the
to remain price competitive and become a
landowners to assess how much more
replacement of non-renewable materials
more prominent source of household heat­
wood they should allow to be removed
with wood products.
ing. Whether natural gas becomes cheaply
from their forests. All these questions are
26
FURTHER READING
Aguilar, Francisco X., ed. 2014. Wood Energy in Developed
Goerndt, Michael E,, Francisco X, Aguilar, and Kenneth Skog.
2013. Resource Potential for Renewable Energy Genera­
tion from Co-firing of Woody Biomass with Coal in the
Northern US Biomass and Bioenergy 59: 348-361,
27