The supply of forest-based biomass for the energy sector : the case of Sweden

Biomass has become a popular alternative to fossil fuels in energy generation. Especially in Sweden, where vast quantities of forest resources are available, nuclear power is starting to be phased out, there are restrictions on expanding hydro power and there is the political will to "set an example" with respect to carbon dioxide emissions.These are the main drivers for the increased usage of biomass in energy generation. However, an issue often neglected is that domestic forest resources are already, to a large extent, used by the forest industries. By promoting biofuel the consequences for the forest industries need to be considered. This paper attempts to construct and analyze the supply of two types of forest resources, namely, roundwood and forest residues derived from either final harvest or commercial thinning operations. Two separate supply curves are constructed and estimated, one for pulp usable and the other for pulp unusable forest resources. The cost structure is based on an economic-engineering approach where the separate cost components are built up from the lowest cost element into aggregates for labor, capital, materials and overhead costs for each forest resource.The results indicate an untapped potential of 12 TWh of pulp unusable forest residues. However, after this 12 TWh has been recovered it becomes more profitable to use roundwood for energy purposes than to continue extracting further amounts of forest residues.Godkänd; 2003; 20070314 (keni