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Bioenergy Systems and Supply Chains in Europe: Conditions, Capacity and Coordination

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Book cover Supply Chain Coordination under Uncertainty

Part of the book series: International Handbooks on Information Systems ((INFOSYS))

Abstract

There are considerable biomass resources in the European Union and mature conversion technologies to exploit the potentials of bioenergy. A challenge confronting the European Union and Member States is how to accelerate the implementation of bioenergy systems and related supply chains. This chapter contributes to the identification, analysis, and discussion of constraints for bioenergy in the European Union. Adopting a combination of research methods and different informants from six case studies across Europe, this chapter identifies economic conditions, institutional capacity, and supply coordination as the key constraints obstructing the expansion of bioenergy. Furthermore, the case studies expose four points about constraints for bioenergy. First, there are no absolute constraints to realising the potentials of bioenergy in the European Union. Second, it is non-technical challenges that are hindering bioenergy rather than technical issues. Third, constraints for bioenergy are dynamic and depend on the context. Fourth, there are consistent strategies observed in the case studies to overcome constraints.

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Notes

  1. 1.

    Biomass can be considered as “stored” solar energy because the process of photosynthesis “captures” energy from sun in growing plants. Utilising biomass for energy purposes is in fact tapping into the vast energy available from the sun.

  2. 2.

    For more details on the direct and indirect benefits of bioenergy systems see McCormick (2005).

  3. 3.

    For details about the six case studies see McCormick and Kåberger (2007).

  4. 4.

    The term externalities refers to a cost or benefit from any activity that affects actors “external” to the activity. In other words, the “internal” actors do not bear all of the costs or reap all of the benefits. Externalities can be either positive, when externalised benefits are generated, or negative, when externalised costs are imposed on others (Carter 2001).

  5. 5.

    Visit http://www.externe.info/ for more information on energy subsidies.

  6. 6.

    Visit http://reports.eea.eu.int/ for more information on externalised costs.

  7. 7.

    In 1991, the Swedish Government imposed a carbon tax on greenhouse gas emissions from the combustion of fossil fuels to produce heat (Swedish Energy Agency 2004). Since 2004, the Swedish Government has adjusted and reduced the carbon tax. However, it remains a powerful policy support for bioenergy.

  8. 8.

    The effects of the green certificate scheme in Sweden are debateable. While green certificates are intended to support bioenergy systems, they also create uncertainty for investors because it is extremely difficult to predict the evolution of prices for green certificates (Jacobsson 2006).

  9. 9.

    Different definitions and legislation for waste across the Member States in the EU can present problems for investors in bioenergy systems (Fagernäs et al. 2006). When feedstocks are categorised as waste this often means more stringent legislation (and possibly different reactions from the public and politicians). On the other hand, when feedstocks receive a different classification it can be a more straightforward process for investors.

  10. 10.

    This can be called the “chicken and egg” problem. Essentially it highlights the challenge of investing in biomass resources at the same time as establishing conversion technologies. Neither can proceed without the other but it is difficult to draw up contracts that are acceptable to both energy companies and biomass suppliers (in many cases).

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Correspondence to Kes McCormick .

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McCormick, K. (2011). Bioenergy Systems and Supply Chains in Europe: Conditions, Capacity and Coordination. In: Choi, TM., Cheng, T. (eds) Supply Chain Coordination under Uncertainty. International Handbooks on Information Systems. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-19257-9_22

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