The Danish bioenergy cluster is already well known to readers of this magazine. Last year a mapping of the cluster revealed that the cluster encompasses 1,200 companies with a turnover of EUR 3.3 billion, employs 11,500 people and has an export value of EUR 1.1 billion. The last figure in particular is striking.
Bioenergy technology is actually the second largest type of renewable energy technologies being exported in Denmark. If we told you wind technology is number one, you probably wouldn’t be surprised, we are talking about Denmark after all! In order to investigate how the bioenergy cluster is continuing to forge ahead in this small island nation, the partners behind the original cluster analysis, the Danish Bioenergy Association, FORCE Technology and INBIOM (Innovation Network for Biomass), carried out a follow-up analysis, drilling down into the status of the bioenergy cluster with regards to innovation and internationalization. In this article, we present some of the findings from the analysis and provide conclusive evidence of how the bioenergy cluster is a source of continual innovation, making Denmark the natural choice of partner projects.
Denmark: a winning combination of leading research institutions, forward-thinking policies and innovative companies
The strong position of the Danish bioenergy companies is the result of a long-term conducive business environment, created by visionary politicians and innovative researchers, innovators and industrialists. For example, Denmark is a leading country in terms of expenditure on research and development. When measured as a percentage of GDP, Denmark is ranked ninth overall (Source: OECD). An early pioneer of the so-called triple helix approach, the country has a strong track record of developing partnerships between research institutions, governmental institutions and industry to develop technological solutions that provide sustainable, competitive bioenergy. Significant policy measures that have supported the growth of the bioenergy cluster include special funding programs for energy technology, such as the Energy Development and Demonstration Program.
Furthermore, regulatory frameworks incentivize the utilization of biomass, particularly in the heat and power sector. Initially domestic biomass such as straw was utilised and subsequently extended to other types of biomass such as pellets and chips. This has helped facilitate the transition of a mainly coal-fired power and heat sector to a now primarily wind-based power production and biomass-based heat and power production. By 2023, Danish CHP plants will stop using coal altogether, making Denmark member of an exclusive group of countries who will have succeeded in eliminating coal-fired power plants. Measures described above have created a unique environment, where cutting-edge biomass technology is constantly being developed and redeveloped. Read on to discover some of the world’s most innovative bioenergy solutions and why Denmark is the answer if you are looking to partner with advanced technology companies or test your technology.
A highly internationalised cluster of companies
Even though the large majority of companies in the bioenergy cluster are relatively small, it is remarkable that almost two-thirds (approximately 64%) of them have activities abroad, while 5% have foreign owners. The activities that the companies have abroad cover primarily sales and marketing (68%), and project-based installation and deployment (55%). About one-third have production operations abroad. Furthermore, 15% have research, development, testing and demonstration abroad.
For the bulk of the companies in the bioenergy cluster, the main reason for having activities abroad is to gain market access. 78% of companies state this as their main reason. Other reasons given include lower costs and access to international networks. Export rates range from 0% to 90-100%. For one third of the companies, export revenues constitute more than half of total turnover. The most important export markets are the neighbouring European ones, such as Scandinavia, UK, Germany, Benelux, Poland and France. While the bioenergy companies expect to see continued growth in these markets, they are also beginning to focus on the Americas and Eastern Europe.
Unpacking the secrets of the innovative nature of the Danish bioenergy cluster
Almost two thirds of companies in the Danish bioenergy cluster have activities within research, development, test and demonstration in Denmark. 73% of companies spend up to 10% of their costs on R&D, test and demonstration, while a research-oriented 24% elite spend between 11% to more than 50% of costs on these types of activities. It is the impression among 40% of the companies that their spending on bioenergy R&D, test and demonstration has increased over the last three years, while it has been stable among approximately half of the companies. These efforts within R&D are not in vain, with more than 50% of the companies surveyed having launched a new product, process or service directed towards the bioenergy sector within the last year.
Where do new ideas come from? The primary sources for innovation are customers and cooperation partners, which are mentioned by 71% and 60% of companies respectively. Internal processes and idea generation is mentioned as a source by 45%, while regulation and legislation is mentioned by 28% of companies. Universities and research institutions are mentioned by 26% and 21% respectively. As for barriers to increasing investments in innovation, a lack of internal resources and lack of financing are the most important barriers. This is mentioned by approximately two thirds of companies. Given that the average size of the companies is relatively small, this is not surprising. Two thirds of the companies have engaged in cooperation with other companies or other stakeholders within R&D, test and demonstration. This serves as evidence of the high degree of cooperation within the bioenergy cluster. The most used cooperation partners are other companies, whether in Denmark or abroad, and Danish universities or research institutions. 58% of companies are of the opinion that such cooperation has had a decisive or substantial impact on the development of the company.
Examples of innovative solutions from the bioenergy cluster in Denmark
Dall Energy: A Low emission, Fuel Flexible Biomass Furnace
What makes Dall’s solutions unique is the flexibility they provide. In contrast to conventional furnaces that burn only one type of fuel, such as wood chips or straw, Dall Energy technologies are able to utilise many different types of materials. They convert them into gas, which is then burned. This results in emissions that are 95% lower than those produced by conventional biomass burners. Dall’s activities include a pilot plant, a demonstration project, a 2-MW-plant and a 9-MW-plant in Denmark, as well as overseas activities in the US and China. Furthermore, the biomass furnace has been selected as a success story by the International Energy Agency, as it contributes to sustainable bioenergy use.
Billund BioRefinery: Resource Recovery for the Future
Billund Biorefinery successfully combines some of the best and most innovative Danish environmental technologies within water treatment and biogas in one significant, fullscale demonstration project.
Recognising that waste and wastewater are actually resources offering immense potential for the environment, the plant produces biogas from wastewater sludge and sorted household waste. By employing thermic hydrolysis, the plant combines wastewater treatment with biogasification of organic waste. The result is more efficient purification of wastewater than traditional wastewater treatment plants and at the same time, the plant produces 2.5 times more energy than it consumes. The plant also delivers CO2-neutral energy to 1,600 households and odourless fertilisers to the agricultural industry. Billund Biorefinery is a Danish municipally owned lighthouse project that has been made possible with the support of Danish Ministry of Environment and VTU Fonden (Water Sector Technology Development Foundation).
CopenHill: A Waste Incinerator with a Rooftop Ski Run
Who says power plants can’t be aesthetically pleasing? Featuring a recreational ski slope on its slanting roof, the renowned Bjarke Ingels Group (BIG) architect-designed CopenHill (known as Amager Bakke in Danish) is a waste-toenergy facility located just east of Copenhagen’s city centre that not only sets new standards for urban design and civic spaces, but also for capturing energy from the combustion of garbage. It produces heat, electricity, recyclable materials, and water from incinerating solid municipal waste, processing up to 560,000 tonnes annually or 35 tonnes an hour for each of the plant’s two lines. The facility is able to recover resources that otherwise would not be recycled. More than 90% of the metal in the bottom ash will be filtered out, which leaves a product for use by the construction industry that easily meets strict requirements for heavy metal content and leaching behaviour. The Danish subsidiary Babcock and Wilcox Vølund supplies the entire combustion system from crane through feeding, the DynaGrate® combustion grate and boiler, to ash handling, as well as a particle and NOx-reduction system. As part of greater Copenhagen’s integrated district heating system, it supplies low-carbon electricity to 550,000 individuals and heating to 160,000 households. The total net energy efficiency rate of 107% is among the highest in the world for waste-to-energy technology.
Green Gas in the Natural Gas Grid: Denmark a Global Frontrunner
A well-known fact is that wind turbines and solar cells amount to an ever-increasing percentage of Denmark’s total power production. Less well known is that the gas distribution network is already contributing significantly to transition to a carbon-neutral society. Three distribution companies, HMN Naturgas, Dansk Gas Distribution (Danish Gas Distribution) and NGF Nature Energy are responsible for the gas distribution network in Denmark, which amounts to a community investment of EUR 7.4 billion and provides more than 400,000 households and Danish companies with a stable and secure supply of gas. During the last three years, the production of green gas has increased just as much as it did the previous 30 years. This is because Denmark is starting to reap the benefits of many years of intense research and development. In 2014, the first green gas was applied to the country’s gas grid and by the end of 2018, green gas will comprise 10% of the distribution system. Due to the positive development, Denmark is already further with the green transition of the gas distribution network than any other country. Further attention is being directed to the role of green gas in the energy systems of the future, due to its function as a flexible and CO2- neutral fuel with grid-balancing properties.
The Danish Town of Grindsted: Utilising DuPont Nutrition Bioscience’s Surplus Heat
In 2017, the food business DuPont Nutrition Biosciences inaugurated a new facility in the Danish town of Grindsted that is powered by wood chips, thereby replacing 18,000tons of coal and providing surplus heat that is utilised by the city’s 3,700 heating customers. DuPont produces food ingredients through an energy intensive process, with a heat consumption equivalent to that of more than 10,000 households combined. The collaboration between DuPont and Grindsted Electricity and Heating Plant is an excellent example of how the different interests of two actors can be reconciled to create more value for both. DuPont’s wood chip facility will reduce the company’s annual CO2 emissions by 64,000 tons – equivalent to the CO2 emitted by 27,000 cars. The wood chips are sourced from sustainable logging practices. The surplus heat supplies half of the district heating that the 3,700 consumers in Grindsted receive from Grindsted Electricity and Heating Plant.
Innovative financing models applied in the construction of biomass power plants
In 2013, Burmeister & WainScandinavian Contractor A/S (BWSC), the fund manager Copenhagen Infrastructure Partners (CIP) and the pension fund, PensionDanmark, formed a joint venture, BWSC PLC Ltd. to build, own and operate biomass power plants. CIP and PensionDanmark have financed the construction, while BWSC has supplied the biomass technology the plants are based on under turnkey contracts. The model has so far been applied to the construction of three biomass plants located in the United Kingdom, where Babcock & Wilcox Vølund has also been responsible for the construction of one of them. For example, the Snetterton plant is
primarily fuelled by straw and has a capacity of 44MW, corresponding to the total consumption of 82,000 households, and reduces annual CO2 emissions by an approximately 300,000 tonnes. The plant consumes in the region of 250,000 tonnes of straw per year, which is sourced from farmers throughout the local region. Overall, the biomass projects are attractive value propositions for funds under management companies, as they help secure good returns and address sustainability concerns. For the region in which the plant is located, it provides low-cost, sustainable energy for its citizens and provides a side income stream for farmers.
Conclusion
Bioenergy is the most important contributor of renewable energy on a global level and it continues to grow. However, bioenergy is also facing challenges, including from other technologies. Bioenergy must keep up the innovation pace and strive to become even more cost-effective. There are still efficiency gains to be made, whether in combustion technology, emissions, biofuels and biorefining or biogas. That is why it is important to continue to focus on innovation, whether in growing feedstocks, procuring and processing biomass etc. Stakeholders in the Danish Bioenergy Cluster are well aware of this.
This article is by Martha Marriner, Project Manager, State of Green and Michael Persson, Head of Secretariat, Danish Bioenergy Association.
