Semida Silveira and Lars Andersson

7.1. BILATERAL COOPERATION FOR KNOW-HOW AND TECHNOLOGY TRANSFER

Biomass resources in the Baltic Sea Region are large, providing good ground for bioenergy. The interest to use local energy resources has increased significantly in the past few years, and many activities have taken place towards biomass utilization since the early 1990s. Nevertheless, significant amounts of forest residues are still unused and many opportunities remain to be explored. Lack of adequate logistic systems for harvesting, collecting and transporting biofuels constrains a broader use of these resources. Competition with other low-cost fuels and lack of supporting policies also hinder the development of bioenergy systems in the region.

Varied national regulations and taxation of fuels, lack of proper biofuel standards, limited financing opportunities for new projects, the need for upgraded infrastructure for logistics and new energy-related technologies are some of the barriers that need to be addressed to enhance the dynamics of bioenergy markets in the Baltic region. Meanwhile, sharpened environmental requirements, rising costs for imported fuels, and concerns about regional development and balance of trade are strong motives helping promote local fuels, thus opening a window of oppor­tunity for biomass.

In fact, despite hindrances, increased trade activities with biofuels have been observed in the Baltic, and a number of bilateral and multilateral cooperation projects have been successfully carried out, emulating the experiences of neighboring countries. Since the efforts to increase biomass utilization have been particularly successful in Nordic countries, the accumulated know-how and experience is finding its way into the whole Baltic Sea Region. While initial efforts were particularly focused on biomass-based technologies for energy generation, the new steps have a broader focus and evaluate ways for an efficient organization of whole bioenergy systems at the regional level.

95 Bioenergy — Realizing the Potential

© 2005 Dr Semida Silveira Published by Elsevier Ltd. All rights reserved.

This chapter is based on a bilateral project developed between the Swedish Forest Administration and the Forest Department and the Ministry of Environment in Lithuania, with the support of the Swedish Energy Agency. The project has a starting point in the Lithuanian resource potential and institutional framework on the one hand, and the Swedish experiences with bioenergy systems, on the other hand. It looks at how the application of Swedish know-how in the form of mech­anization and management practices can boost biofuel production in Lithuanian forests and help enhance bioenergy utilization in the country. A summary of the major issues assessed and evaluated are provided, indicating not only the complexity, but also the level of understanding and know-how accumulation that has been reached about biomass-based systems.

Initially, a feasibility study was carried out in the eastern part of Lithuania to identify conditions for the utilization of woodfuel within the seven state forest enterprises. The purpose was to find appropriate methods for profitable horizontal and vertical integration of the handling of forest fuels, and ways to integrate them into ordinary forestry and energy supply systems. The recommendations evolved into a demonstration project in Rokiskis state forest enterprise and capacity-building programs for continued cooperation and further development of the Lithuanian biomass potential.