Biofuels

Biofuels have traditionally been used in the same geographic region in which they are produced. This has been changing rapidly in the past years. For example, in Northern Europe solid biofuels trade has grown steadily for a decade. High taxes on fossil fuels, a well-developed burning capacity for solid fuels and new restrictions in waste legislation in Europe have created the base for biofuel markets (Hillring and others 2001). More recently, liquid biofuels for transportation have contributed to create global biofuel markets.

Pellets and Briquettes Production
in Lithuania, 1994-2003

The low-cost production of green chips and densified fuels (e.g. pellets and briquettes) in the Baltic states has also favored a solid biofuel trade in Northern Europe. The graph at right illustrates the production trends of briquettes and pellets in Lithuania. Most of the production is exported to Germany, Sweden, Denmark, and Norway. Imports from North America to district heating plants in Sweden have also increased lately. Danish and English coal power plants are now adding biomass to their fuel mix to reduce carbon emissions and have become major buyers of solid biomass.

While the possibility of using local and regional potential for bioenergy is a great advantage, the transformation of biofuels into commodities and the formation of international markets shall determine the extent to which bioenergy will become a major modern energy source in the coming decades. The formation of biofuel markets is likely to benefit developing countries which, in general, have favorable conditions for growing biomass.