Development of international trade and use of biofuels : Brazil, Canada, Finland, Netherlands, Norway and Sweden

Abstract: The international trade and use of biofuels is rapidly increasing all over the world, and it is projected to continue the next years according to conclusions in this report. The main reasons are a global increased demand of energy, an increased awareness and knowledge of the environment, and the fact that conventional energy resources are running dry. Traditionally, has biofuels been produced and used within the same geographical region. This has however started to change due to an increased international demand. Consumption, production and trade do however differ between countries due to different conditions for production and consumption of biofuels. The intention of this report has been to study the current and future consumption, production and trade of biofuels in the countries, which are participating in the IEA bioenergy workgroup Task 40. Participating countries in Task 40 are Brazil, Canada, Finland, Netherlands Norway and Sweden. The objectives has more precisely been to give a survey of existing international trade of biofuels of the studied countries, and a roughly estimate how the trade and use will develop in the future. In the survey has also driving forces, barriers and structures behind the existing trade been recognized. The study has been accomplished through collecting and analyse information from the six countries. All participating countries has contributed with a Country report, were crucial information has been presented. Information has also been collected from literature and policy documents etc. The survey of existing trade has mainly been based on country reports. The estimation of future trade has been performed in a few steps. First were crucial factors for the development of biofuels identified in order to predict the development in each country. The factors that emerged were: macroeconomic-, geographical-, industrial, technical aspects and development and policy measures on the energy market. Second, were above factors compared with real data. And finally were the gathered information put together and analyzed. In the survey of each countries trade of biofuels can it been seen that the international trade of biofuels is rapidly increasing; the quantities has in some cases been double in just one year. For example Netherlands import of biofuels. Barriers that have been identified in the report are insufficient spreading of existing technique, institutional obstacles and problems, lack of knowledge and uncertainty, absence of entrepreneurs, resistance from other interested parties, both through direct and indirect resistance and lack of global professional logistics. Driving forces and structures behind existing trade that have been recognized are: raw material/biomass push, market pull, utilizing the established logistics of existing trade, incentives and support institutions, technical developments and innovations, entrepreneurs and innovators, and unexpected opportunities. In the estimation of future production, use and trade of biofuels has it been concluded that all studied countries will increase their activity within the bioenergy field. The countries activities do however differ from each other. Brazil, Canada and Sweden are likely to heavily increase their production, consumption and export. This is also the case for Norway the increase will however be on a more moderate level. Finland and Netherlands are according to this study likely to increase their consumption and import of biofuels.