OECD report “Linking RE to Rural Development” Comment from North Karelia, Finland

Pasi PitkänenRegional Council of North Karelia

Östersund, Mid Sweden, 19th of February 2013

Virmajärvi, IlomantsiNorth Karelia

1. General info about North Karelia

North Karelia facts 166 000 inhabitants (< 8 inhabitants / km²)

13 municipalities

Regional capital: City of Joensuu (74 000)

Distance to Petrozavodsk 368 km

Flight-time to Helsinki: 1 hour

Size of the region 21 585 km² (lakes 3 803 km²)

The easternmost region of the continental EU

300 km border with Russia

North to south 240 km

East to west 153 km

Temperatures from +37C to -42C

North Karelia is a forerunner in the use of renewables

Renewables cover 64 % of all energy consumption

(including heat, power, private households and traffic)

- compared to 28,5 % in Finland, and 8,5 % in the EU

The renewable energy cluster employs more than 1300 people

More than 300 companies working on this sector

Turnover about 200 M€ / year

ENERGY CONSUMPTION

2008 2020

63% SHARE OF RENEWABLE ENERGY 82 % SHARE OF RENEWABLE ENERGY

6

Ditched Peatlands

Peat production areas

Waste management

Agriculture

Energy Production and Use

Trafic and Transportation

Fresh debris and soil

Forest Biomass

Carbon Sources and Sinks in CO2 Neutral North-Karelia

t / a

2. Comments on OECD report

- These kind of research (looking at the situation outside the regions) is really needed and useful- Report show that we can learn from each other regions and RE opportunities as well as challenges are both there together

Main findings / OECD Report / North Karelia Drivers RE can be efficient alternative to conventional fuels Regional research should focus on “local”

innovations & businesses RE offers the most development opportunities in

rural areas I agree these findings!

Future challenges / OECD Report / North Karelia EU renewable energy policy & success of woody

biomass High subsidies going to wind power More about these next

EU / Finnish policy favors wind energy …

Feed in tariff for wind power isremarkable high in FinlandInvestors and companies are looking for areas for wind parks, also in North KareliaRegional councils are making regional land use plans for wind power parks, also in N-K

Small wood energy subsidy is prohibited now and it is under EU consideration (from 2011)

But …

Potential wind parks in NK

North Karelia can do well with EU/National RE policy because,

+ However some kind of subsidy is coming for plants using woodchips,

+ in Finland there is money for new innovations & new bioenergy technology investments (Bio Economy)

+ New EU programme 2014 – 2020 & focus on low carbon economy (at least 20 %)

Perhaps EU challenges are not unthinkable in NK

3. Finally – what is going on and what we are aiming in North Karelia!

Renewable Energy in Regional level / North Karelia

Political aspects 2 examples+ Fossil Oil-Free Region target 2020 and 2030+ North Karelia - The Centre of Forest Bio Economy

Economical and social aspects 2 examples + Self sufficiency - Wood based energy gives jobs and

turnover for many+ Social innovation - Free Energy advice for the citizens and

companies

CLIMATE AND ENERGY PROGRAMME

OF NORTH KARELIA 2020

Locally – Renewably – Efficiently

VISION: FOSSIL OIL FREE REGION

(In heating 2020, totally 2030)

Target: Fossil Oil Free Region in 2030

It means more woodchips, pellets, pyrolyse oil, solar energy, wind mills and other renewables etc.

FORTUM PYROLYSIS OIL PLANTin Joensuu: production to bestarted in the last quarter of The year 2013.

A model example of an investment (30 M€) needed on the way towards fossil oilfree region!

Production 50 000 tn per year = 50 million litres per year

Other Biorefinery plans in North Karelia: Nurmes Biochar & Biocoal factory

• Nurmes -unit is going to be the first industrial scale unit in Finland, representing 3. generation in development (plans to be built during the year 2013)

• The first demo unit is scheduled to produce about 5000 tons’ biochar and ca. 4700 ton’s wood oil’s

• The planning process of the larger unit has also started. The expected start of this 100 000 ton’s biochar and 94 000 ton’s oil factory is scheduled for later part of 2015

• A huge demand increase for biochar is expected in Finland and in Europe.

• The quality and energy content of the FSO-biochar tested so far have turned out to be high, giving a competitive edge and bringing a large variety of potential customers.

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We count on knowledge based development in forestry and wood sector

European Forest Institute

Finnish Forest Research Institute

University of Eastern Finland

Karelia University of Applied Sciences

Carelian Science Park

etc…

… … as well as on technology driven developmentas well as on technology driven development

Joensuu ArenaMetla Building

We aim at increasing the use of wood in construction

… as well as the use of wood for energy and bio based products

dCentre of Forest

Bio Economy

Biobased Products Wood-based Material Technology

Forest Bioenergy

Transfer of Technologyand Knowledge

Capitalization and Business

New Business Opportunities

Capitalization of Research Results

Spin-off Enterprises

EXPERTICE &KNOWLEDGE FOCUS TARGET

Forest Energy & Wood Energy

Districted biorefining and material technology

Forest technology, supply chain and logistics

Forest data invention & mapping, remote sensing

Research and Development

CENTRE OF FOREST BIO ECONOMY / NORTH KARELIA

North Karelia Forest Bio Economy: 6000 workplaces, 600 forest experts (research, education, administration), about 1,7 billion turnover, over 500 companies

… as well as bioenergy new social innovations

Free Regional BioEnergy Advice Service for Consumers via Internet and telephone

Organised by the Finnish Forest Centre - North Karelia, Regional Council ofNorth Karelia and Centre for Economic Development, Transport and the Environment

Conclusion: The role of forest is essential in aiming at smart, sustainable and inclusive growth (Europe 2020) in the NK and Europe!

• Forests have increasing and diversified value in meeting the objectives stated in the international commitments.

• Forests provide solutions for the challenges caused by climate change and increasing demand of energy.

• At the same, forests provide opportunities for new entrepreneurship and economic development.

• But we have also some other resources like wind and solar, which we can take account too, alongside the biomass

Pasi PitkänenRegional Council of North Karelia

Östersund, Mid Sweden, 19th of February 2013

Kiitoksia!Tack så mycket?

Thank you!