Biofuel in Denmark

The oil shocks of the 1970s severely impacted Denmark, as about 90% of its energy use then came from oil, a majority of which was imported. The government was thus compelled to rethink its energy portfolio and shift the focus of its energy plans. As a result, biomass for bioenergy started being incentivized and promoted as a renewable energy source and an alternative to fossil fuels. Denmark's aim was to reduce the oil dependency and to secure energy supplies, an objective that has remained relevant in the progression of the country's energy policy agreements. The prospect of the creation of new jobs and the utilization of waste products also factored into Denmark's decision to start using biomass. Consequently, the use of biomass in the Danish energy system has continuously grown. In the last decade, bioenergy consumption in Denmark has nearly doubled, increasing by more than a factor of twelve between 1970 and present day. Over this period, biomass has been predominantly in the form of waste, straw and wood.^[1]

Currently, Denmark is striving to create an energy system by 2050 that is free of all fossil energy, and bioenergy will likely play a key role. In order to achieve this goal, Denmark has, since 1993, been increasing its development of large-scale combined heat and power plants (CHP) that combust biomass, where continuous technological improvements have been achieved over the past 20 years. The Danish strategy to reduce emissions has also included retrofitting older coal-fired plants to biomass and investing heavily into Research, Development and Demonstration (RD&D) for converting agricultural residues into second-generation (2G) bioethanol, which is then blended with gasoline for the transportation sector. RD&D activities are also in place for biodiesel for shipping and road transport.^[2]

In agreement with the European Environment Agency Scientific Committee, Denmark considers environmental sustainability as a key component of its strategy to incorporate a greater share of biofuels into its national energy portfolio. As such, it does not consider biomass produced from existent forests as carbon neutral and it counts waste biomass as double towards its Renewable Energy Target, thus favoring biomass grown on marginal land or sourced from residues. This way, the country is able to ensure that it benefits from incorporating a larger share of biomass into its energy system, as biomass sourced from plantations that have been converted from natural forest land then generate a net carbon benefit over fossil fuels.^[3] Denmark's guidelines for utilizing biomass for energy and transportation strive to ensure both environmental sustainability and efficiency aspects.^[4]

As a member state of the European Union (EU), Denmark is under commitments from its directives, which set targets for the amount of renewable energy within the national profiles, including biofuels. Following EU legislation, for example, its renewable energy use should reach 100% by 2020.^[5] However, Denmark has been highly proactive and ambitious in the targets it has set for its renewable energy and greenhouse gas emissions reduction, such as aiming for 100% renewable energy by 2050.^[6][7] Danish environmental legislation has been important in the process to achieving this goal as taxes on CO₂ emissions have been in place since the 1990s, and since 2005, biofuels have been exempt from fuel taxes. Its strategy continues to support research and innovation to improve production processes and lower costs. Furthermore, the country's long tradition of promoting renewable energy as something that also contributes to environmental issues has created strong links between its environmental and energy policies.^[8] Looking ahead, the challenges for Denmark include uncertainty in future energy demand and securing a reliable supply of biomass that is sustainably produced.^[9]

Under the Renewable Energy Act from 2009, the Danish government plans to achieve a 20% share of biomass to its energy production by 2020.^[10] Biomass will also allow Denmark to have a spare energy capacity to guarantee a stable energy system. The Danish government set market incentives, such as feed-in tariffs and premiums for bio mass, biofuels and other renewables, in order to reach their ambitious target of being independent from fossil fuels by 2050.^[10]

In late 2016 the government decided on the 0.9% blending mandate for use of advanced biofuels.^[11] It requires all suppliers of transport fuels to blend an additional 0.9% share of advanced biofuels (i.e. straw) to the already required five percent conventional bioethanols share in gasoline.^[12]

The country has a target of quadrupling energy from biogas by 2020 with the target of using 50% of manure in the country, with the gas produced being injected directly into the national gas supply or used for electricity generation.^[13]

Denmark has been highly innovative in its energy strategy and has greatly increased energy efficiency by using combined heat and power plants (CHP plants). These plants generate electricity whilst the waste heat is simultaneously extracted. This provides energy to district heating networks, and several such plants are operating at world record levels of energy efficiency. CHP plants in Denmark are being converted to biofuel power sources, providing not only energy efficiency but also local markets and sources of income to local communities. Farmers are able to sell waste straw and biogas produced from manure, while municipal authorities can provide waste products to heat and power generators.

The small country of Denmark with just 5.7 million people is now being asked to lend its expertise to China to advise it on how to develop fuel flexibility, CHP power and heat generation. The two countries have associated initiatives which seek to improve China's vast energy requirements as the workshop of the world.^[14]

*Estimated percentage based on proportion of total data submitted in the progress report.^[15]

*Original data converted to GJ.

Biofuels combined to provide 9,908,200 GJ of energy for Denmark's heating and cooling sector, and accounted for approximately 35.33% of the sector in 2014.

*Estimated percentage based on proportion of total data submitted in the progress report.^[16]

Biofuels combined to provide 3,789 GWh in 2015. Using the IEA unit converter this equates to 13,640,000 GJ of energy, and accounted for 12.7% of electricity generated.

*Estimated percentage based on proportion of total data submitted in the progress report.^[15]

*Original data converted to GJ.

Biodiesel and Bioethanol provided the transport sector with 9,608,000 GJ of energy, and accounted for approximately 5.27% of the sector in 2014.

Denmark's total supply of energy overall in 2015 was 2,523,048,939 GJ. Therefore, biofuels made up approximately 5.9% of the total supply in 2015.^[17]

Denmark's total energy production in 2015 was 1,422,701,209 GJ. Therefore, biofuels made up approximately 5.8% of Denmark's total energy production in 2015.^[17]

Denmark's total energy use in 2015 was 2,523,048,939 GJ. Therefore, biofuels made up approximately 5.9% of Denmark's total energy use in 2015.^[17]

Denmark's total industrial and household energy use in 2015 was 1,837,851,411 GJ. Therefore, biofuels made up approximately 7.8% of Denmark's industrial and household energy use in 2015.^[17]