The biofuels market in Finland is in a nascent stage with strong potential for growth in the future. Government initiatives and the large demand for green fuel are expected to attract investments in the sector. The country has a large untapped resource base. In order to meet renewable energy targets, implementation of certain policies have been forecasted. This is expected to boost the market. The report begins with an introduction of the biofuels market in the European Union (EU) indicating the segmented use of various biofuels, total import-export and consumption levels. It also includes the major policies forwarded towards developing the biofuels market in the EU. An overview of the energy market in Finland has been provided followed by an analysis of the biofuels market. Details regarding the production levels of major biofuels as well as the total bioenergy levels have been proffered. This section also includes data regarding the major energy sources in the country, the level of energy consumption by sector and the sources contributing to electricity production. The characteristics of the market have been analyzed and include – large forests which provide raw materials for biofuels, usage of forest land to develop energy crops, biofuels dominated by high levels of imports, usage of biofuels as a route to reduce CO2 emissions, expected direct benefits to green car owners, policies towards mandatory sale of biofuels and reduction in dependency on oil. The major government programmes and investments towards the development of the industry have been discussed including the climate and energy policy and the expected introduction of feed-in-tariff for biogas generation as well as various research and development projects carried out by TEKES and VTT Technical Research Centre and other government bodies. Competition section profiles the major players in the market. The section contains a snapshot of the corporations’ financial performance and business highlights, providing an insight into the existing competitive scenario.

1. Biofuels Market - Finland
November 2009

2. Executive Summary
The energy market in Finland is dominated by oil which is the major source of energy
Market Wood-based biofuels accounts for a% of the country’s primary energy consumption
b% of total primary energy consumption in Finland is met by bioenergy
LE
Large Forests Providing Raw Materials for Biofuels
P
Usage of forest land to develop energy crops
Biofuels Dominated by Imports
M
Market
Biofuels to Assist in the Reduction of CO2 Emissions
Characteristics
SA
Expected Direct Benefits to Green Car Owners
Mandatory Sale of Biofuels
Reducing the Dependency on Oil
Climate and Energy Policy
Government Expected Introduction of Feed-in-Tariff in Biogas Generation
Role TEKES
VTT Technical Research Centre and Other Investments
The market is in a nascent stage with only a few players
Major players include
Major Players – Company 1
– Company 2
– Company 3
BIOFUELS MARKET – FINLAND.PPT 2

3. •Introduction
•Market Overview
•Market Characteristics
•Government Policies and Investments
•Major Players
•Key Developments
•Appendix
BIOFUELS MARKET – FINLAND.PPT 3

4. Biofuels market in Finland is at a nascent stage and is
expected to grow in the future
Overview Bioenergy Generated
TJ
•Finland has large available resources of solid
500 a%
biofuels and is developing liquid and gaseous v
400 u
LE
biofuel reserves p r s t
300 q
•Wood is the most important source of
P
200
bioenergy in Finland 100
sector
•Biofuel production has been increasing in
SAM
b% of bioenergy originates from the forestry 0
2004 2005
Electricity Production Mix
2006 2007 2008p 2010e 2025e
accordance with various development policies
TWh
Biodiesel – ’08: x tonnes; ’09e: y tonnes
90 A
Bioethanol – ’05: z mn litres; ’08: l mn litres C D
80 E Source 1
A1 B
70 Source 2
•Finland boasts of the highest bioelectricity 60
C1 D1 E1
B1 Source 3
share in the EU 50 A2 C2 D2 Source 4
A3 C3 E2
40 B2
•n% of total primary energy consumption in 30
D3
E3
Source 5
A4 B3 C4 D4 Source 6
Finland is met by bioenergy 20
A5
B4
C5
E4
Others
10 B5 B6 D5 E5
A6 A7 B7 C6 C7 D6 D7 E6 E7
0
2004 2005 2006 2007 2008
Source:
BIOFUELS MARKET – FINLAND.PPT 4

5. Market Characteristics
Large Forests Providing Raw Materials for Biofuels
Usage of Forest Land to Develop Energy Crops
Biofuels Dominated by Imports
Major
Characteristics
` Biofuels to Assist in the Reduction of CO2 Emissions
Expected Direct Benefits to Green Car Owners
Mandatory Sale of Biofuels
Reducing the Dependency on Oil
BIOFUELS MARKET – FINLAND.PPT 5

6. Government Policies and Investments
VTT Technical Research Centre
Climate and Energy Policy
and Other Investments
Key
Initiatives
TEKES - Public funding
organization for research, Expected Introduction of Feed-in-
development and innovation in Tariff in Biogas Generation
Finland
BIOFUELS MARKET – FINLAND.PPT 6

7. Players in the Market (5/8)
Company Snapshot: Company 1
Corporate Information Financial Performance
Headquarters Helsinki Revenue
Revenue Profit
LE
USD mn Profit / Loss USD mn
Founded 20-- Z
1,000 30
P
Energy consultancy to heat production as 800 Y
Area of Expertise well as wind power to bioethanol 20
X
M
600
production 10
400
Key People
Business Highlights
Person 1 – Chairman
Person 2 – MD
SA 200
0
2005 2006 2007
0
-10
• The only bioethanol producer in the world making biofuel from T)
This reduces CO2 emissions by up to a% and is cheaper than the regular 95 octane unleaded gasoline
• It is Finland’s only producer of ethanol traffic fuel, using the company’s proprietary Q technology
• It has three Q plants in operation, and two more are expected to be developed by the end of 20- -
• St1 is using its Q concept to produce and market sustainable biofuels from industry sidestreams and waste together
with local partners
Entered into a JV with Company 4, in Japan and Company 5 in Germany
Source:
BIOFUELS MARKET – FINLAND.PPT 7

8. Thank you for the attention
The Biofuels Market - Finland report is a part of Netscribes’ Energy and Utility Industry Series.
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