Forest-based Bioeconomy: research in RTU - Dagnija Blumberga Riga Technical university

Page created by Lewis Waters
 
CONTINUE READING
Forest-based Bioeconomy: research in RTU - Dagnija Blumberga Riga Technical university
Forest-based Bioeconomy: research in RTU

Dagnija Blumberga

Riga Technical university
Institute of Energy Systems and Environment

                                              09.03.2017.
                                                            1
Forest-based Bioeconomy: research in RTU - Dagnija Blumberga Riga Technical university
Bioresource use pyramid

                             New product. Friendly to
                             environment and climate.
                              Socioeconomically and
                                economically valid.
       MACROECONOMIC

                                                           ADDED VALUE
        DEVELOPMENT

                          New ecologically valid product

                          New economically valid product

                                   New product

                           Extraction of energy sources

                                   Combustion

                                 Waste disposal

                                                                         2
Methods used in the study
                                                           • Scientific literature research
                     Information collection and handling • Surveys results

                      Innovative products multi-criteria   • Criteria selection and determination of weights (importance)
                                  analysis                 • Product selection

                                                           • Potential size of the market
                              Market sales analysis        • Innovative product’s price

                         Eco-design analysis of three      • Determination of product’s effect on climate and environment
                             innovative products

                    System dynamics model – economic • System dynamics model for determination of product’s added
                                                          value and determination of organizations profit in time
                    analysis of three innovative products

                                                    • Challenges and possibilities
                    Recommendations and conclusions • Questions for further research

Rīgas Tehniskā universitāte                                                                                                 3
Sources of information
          Information given by involved scientific institutions

          Scientific publications and studies

          Scientific literature

          Patent database (Espacenet)

          Organizations experience

          Statistical databases

          Other publically available, trustworthy information

                                                                  4
Wood resources available for forestry (LSF data)

                                           Unprocessed
                                           wood for export:
                                              – paper wood
                                                1,6 mil. m3;
                                              – woodchips
                                                and firewood
                                                1,4 mil. m3.
                                                               5
Multi-criteria analysis

                          6
Products included in multi-criteria analysis
Power industry                                 16. ICLT - interlocking cross laminated timber panels
1. Butanol                                     17. Wood fibre composite material floor
2. Biodiesel                                   18. Glass fibre / wood flour thermoplastic composite
3. Bioethanol                                  material
4. Bio-oil                                     19. Wood – plastic composites
Textile industry                               20. Dendrolight cell material (MeKA*)
5. Ioncell-F                                   21. Thermal insulation material from needles (RTU
6. Lyocell                                     IESE)
7. Viscose                                     Other new products with high added value
Food production industry                       22. Nanocrystallic cellulose
8. Vanillin, lignin, ethanol un cellulose      23. Suberin-acid salts
9. Fish food additive from microorganism       24. Suberin as cohesive substance (LSIWC)
proteins                                       25. Lignin polymers
10. Bird and animal food from pine and         26. Nanocellulose film
fir needles (SILAVA / BIOLAT)                  27. Activated coal as sorbent (LSIWC)
11. Lignan                                     28. Xylan
Biocomposite materials un building materials   29. Starch
12. Nanocellulose cement                       30. Furfural (LSIWC)
13. Transparent wood
14. Cellulose cotton wool
15. Wood foam thermal insulation               *Forest and Wood Products Research and Development Institute (MeKA)   7
Multi-criteria analysis matrix. An example
                                                Criteria                   Product A   Product B   Product C   Product D
                    No.
                                                                              x1          x2          x3          x4
                      1     Production development stage                      5           3           5           4
                      2     Wood resource consumption amounts                 4           2           4           4
                      3     Product market                                    5           4           5           5
                      4     Complexity of technological process               3           2           4           5
                      5     Specific water consumption                        2           3           5           3
                      6     Specific electricity consumption                  2           3           1           4
                      7     Specific thermal energy consumption               2           4           1           2
                      8                                                       2           5           5           3
                            Waste and residue amounts from production
                            By-products, that can be produced
                      9                                                       3           5           2           4
                            simultaneously from this material flow
                     10                                                       3           5           1           4
                            CO2 emission amounts from production
                            Product effects on natural environment (air,
                     11                                                       3           4           2           4
                            water, soil, climate, living organisms)
                     12     Product effects on human health                   3           4           1           4
                            Product compliance to eco-design base
                     13                                                       4           3           2           5
                            principles
                     14                                                       1           2           1           3
                            Necessary investments to start production

Riga Technical university                                                                                                  8
Results of multi-criteria analysis: TOP 10 products
with highest commercialization potential
                                          Multi-criteria
              Product                                      Ranking
                                         analysis result
                            Biodiesel        0,829           1
                               Bio-oil       0,813           2
                     Lyocell (textyle)       0,767           3
    Suberin as cohesive substance            0,710           4
 ICLT – interlocking cross laminated
                                             0,701           5
                       timber panels
                                Xylan        0,689           6
              Fish food additive from
                                             0,650           7
             microorganism proteins
                   Suberin-acid salts        0,596            8
                   Transparent wood          0,587            9
               Cellulose cotton wool         0,584           10
                                                                     9
Products     for              further     commercialization
potential study

   IESE recommendations                   LSF selection

     Biodiesel from bio-oil                    Bio-oil

Lyocell (textile from wood) + fish
       food additive from            Lyocell (textile from wood)
    microorganism proteins

                                               Xylan
 Suberin as cohesive substance

                                                                   10
TOP 3 products commercialization potential
further study
       Products effects on climate policy goal
       achievement

        Available resources amount for production

        Eco-design analysis

       Potential market and price study

        Economic analysis

                                                    11
Product manufacturing technologies

                                     12
Xylan (xylite) production technologies
                                     heat electricity water       Birch wood procurement

                                                                 Birch wood cutting into
                                                                      woodchips (1)

        ▪ Main raw materials:                                      Woodchip drying 2)

           –   woodchips;                                         Woodchip milling (3)

           –   hydrochloric acid;                               Dust removal by sifting (4)

           –
                                                               Milled woodchip heating in
               ammonium hydroxide;                                      acid (5)

           –   water;                                                   Cooling (6)

           –
                                                                       Swelling (7)
               sodium hydroxide.
                                                                        Sifting (8)

                                                                       Washing (9)

        ▪ Biggest effects on                                           Heating (10)
          environment:                                        Preparation for extraction (11)

           – electricity;                                     «Microwave» extraction (12)

           – use of chemicals.                                        Filtering (13)

                                                                       Sitting (14)

                                                                     Centrifuge (15)
                                                                                                13
                                                                Product preparation (16)
Bio-oil production technologies

heat electricity water     Wood extraction
                                                                 ▪ Main raw materials:
                              Chipping (1)                          – woodchips.

                         Woodchip drying (2)                     ▪ Biggest effects on
                                                                   environment:
                         Woodchip milling (3)                       – electricity;
                                                                    – heat;
                             Pyrolysis (4)                          – woodchips.

                              Cyclone (5)        Hard fraction

                         Cooling/condenser (6)

                              Storage (7)

                                                                                         14
Lyocell production technologies

  heat electricity water   Non-coniferous wood extraction

                               Cellulose preparation (1)

                           Cellulose chemical dissolution (2)

                                     Spinning (3)                NMMO

                                     Washing (4)
                                                                ▪ Main raw materials:
                                                                   –    wood;
                                                                   –    NMMO;
                                    Processing (5)
                                                                   –    oxygen;
                                                                   –    ozone.
                                      Drying (6)
                                                                ▪ Biggest effects on
                                                                  environment:
                                      Product (7)
                                                                   – electricity;
                                                                   – heat.
                                                                                        15
Eco-design analysis

                      16
Eco-design (I)
      Eco-design     is  a
                                                    Environm
      systematic method to                            ent

      develop goods and            Aesthetics                  Functionality

      services, that could
      improve                                       Products
                             Ergonomics                                    Quality
      sustainability    by                           design

      decreasing
      products effects on         Suitability for
                                                                  Safety
                                   production
      environment in a                                Price
      whole life cycle.

                                                                                     17
Selected products effects on environment
modelling with program ECO-it
▪ ECO-it numerically evaluates effects on environment
  created by each material and process.
▪ Selected production amount for each products is 1 ton.
▪ To make productions mutually comparable, identical
  energy resources and transport were chosen:
   –   transport (load >32 t), tkm − CO2 eqv. 0,117 kg, mPt 14,0;
   –   electricity (fossil), kWh − CO2 eqv. 0,594 kg, mPt 59,9;
   –   heat (firewood), MJ − CO2 eeqv. 0,006 kg, mPt 3,61.

▪ ECO-it materials and process database is limited. For
  example, co-generation is not offered.

                                                                    18
Results of eco-design analysis
                        Xylan            Bio-oil           Lyocell
                      CO2 eqv./t       CO2 eqv./t        CO2 eqv./t
Electricity              3,00             0,05              3,10
Heat                     0,10             0,05              0,17
Chemicals                0,73             0,00              0,02
Woodchips                0,19             0,04              0,04
              Total      4,02             0,14              3,34

▪ Smallest effects on environments are created by bio-oil production.

▪ Electricity consumption dominates analysed products effects on
  environment, that can be explained by a fact that it is impossible to
  choose co-generation as electricity source.
▪ CO2 eqv. method evaluates water effects as zero, therefore it is
  zero for all products independent of consumed water amounts.
                                                                          19
Economic analysis

                    20
System dynamic model blocks
                                                                                                                                                                                                                                                                                                                 Biooil Production
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Costs, Revenues,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     t/yr
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          and Profit for Biooil
                                                                                                                                                                                                                                    Bioellas razosanas
                                                                                                                                                                                                                                    potencials - Copy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              930

                                                                     Auxiliary_167 -
                                                                           Copy                                                                                                                                                                                                                                                 Kopejais pardotais                                          Auxiliary_168 -                                                                      t/yr
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              925
                                                                                                                                                                                                                                         Biooglu izstrades                                                                        apjoms - Copy                                                   Copy                                                                                                                                                                                                                                                                                                                                                                   Bio e lla s ra zo sa na - C o py
                                                                                                                                                             Velamais mitrums -                                                           apjoms - Copy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Ko pe ja is pa rdo ta is a pjo m s - C o py
                                                                                                                                                                   Copy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       920

                                                                                                                                                                                                                                                                                                                                                                                                                                                     Bioellas razosana - Copy
                                                                                                                                                                                                                                                          Bioellas izstrades                                                                                                                                                                                                    930

                                                                                                                                                                                                                                                  Pirolizes apjoms - Copy
                                                                                                                                                                                  Bioogles - Copy
                                                                                                                                                                    Ievaditas koksnes                                                           gaze - Copy                                                                         Eksporta dala -                                                                                                                                                                                                                                                                                                                                                                           915
                                                                                                                                                                      mitrums - Copy                                                                                                                                                    Copy
                                                                                                                                                                                                                                                                                                     Pardosanas vieteja                                                                                                                                                         925                                                                                                                                                                                                                                       Ja n 1, 2016        Ja n 1, 2026
                                                                                                                                                    Aizvaditais mitrums                                                                                                                                 tirgu - Copy
                                                                                                                                                          - Copy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Non-com m ercial us e only!
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     CumRevenuesFrom
                                                                                                                                                                                                                                                    #                                                                                                                                                                                                                                                                                                                                                                                                                                                  Biooil - Copy 3 Profit Biooil - Copy 3
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   RevenuesFrom
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                920                                                                                                                                                                                                Biooil - Copy 3
                                                                                                    Koksnes                  Pirmsapstrades                                                                                       Pirolizes                                                            Sarazota     #
                                                                                                 krajums - Copy              iekartas - Copy                                                                                   iekarta - Copy                                                        Bioella - Copy
                                                                       Sagadatais koksnes                    Ievaditais koksnes                                                     Koksne ar mitrumu                                                    Bioellas razosana -                                        Eksports - Copy                                                                                                                                                                                                                                                                                                                     Kopejais pardotais                                                                                                      Bioellas razosana -
                                                                        daudzums - Copy                       daudzums - Copy                                                          10% - Copy                                                           #   Copy                                                                                                                                                                                                            915                                                                                                                                               Final product price     apjoms - Copy                                                             ProductCosts birch                                 Copy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     veneer - Copy 5

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Income,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       increase
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Ja n 1, 2016              Ja n 1, 2021                 Ja n 1, 2026                Ja n 1, 2031                                                                                                                                    annual profit per
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Non-com m ercial us e only!                                                                                                                                    unit Biooil - Copy 3

                                                                                                                                                                                                                                           Capacity in operation                                                                                                                                                                                                                                                                                                                                                                                                                                                                 CumProductionCosts

                                                                   Pieejamais koksnes
                                                                    daudzums - Copy
                                                                                                                                                                         Iespejamais
                                                                                                                                                                      apstrades apjoms -
                                                                                                                                                                             Copy
                                                                                                                                                                                                   Production process                         Biooil - Copy

                                                                                                                                                                                                                                                                                             Bioellas razosana -
                                                                                                                                                                                                                                                                                                    Copy
                                                                                                                                                                                                                                                                                                                        Total Biooil energy -
                                                                                                                                                                                                                                                                                                          Energy content in
                                                                                                                                                                                                                                                                                                                                Copy
                                                                                                                                                                                                                                                                                                                                                                 Auxiliary_121 -
                                                                                                                                                                                                                                                                                                                                                                       Copy

                                                                                                                                                                                                                                                                                                                                                                                   Necessary energy
                                                                                                                                                                                                                                                                                                                                                                                   for heating - Copy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                #
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           #
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Rate_18 - Copy 4
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Biooil Price - Copy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         annual profit Biooil -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Copy 3

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       expenses,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Biooil - Copy 3

                                                                                                                                                                                                                                                                                                            Biooil - Copy                                                                                                                                                                                                                                                                                                                     Constant_15 - Copy                                                                                                          UnitCapCosts Biooil

                                                                                                                                                                                                         steps
                                                 w ood chips from                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        UnitProdCosts Biooil  - Copy 3
                                                production process                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    3                                                                                                        - Copy 3
                                                                                                                                             Ievaditas koksnes Velamais mitrums -Bioellas izstrades

                                                transfer from solid Transfer from solid
                                                  m3 to loose m3 m3 to tonne - Copy
                                                                                                                                               mitrums - Copy        Copy          apjoms - Copy                                      Total energy       Total energy
                                                                                                                                                                                                                                    content in w ood - content in dried
                                                                                                                                                                                                                                          Copy          w ood - Copy
                                                                                                                                                                                                                                                                                               Bioogles - Copy

                                                                                                                                                                                                                                                                                                    Pirolizes
                                                                                                                                                                                                                                                                                                              Energy content in
                                                                                                                                                                                                                                                                                                               Biochar - Copy
                                                                                                                                                                                                                                                                                                                                 Total Biochar energy
                                                                                                                                                                                                                                                                                                                                        - Copy

                                                                                                                                                                                                                                                                                                                                                                            Total residue
                                                                                                                                                                                                                                                                                                                                                                            energy - Copy
                                                                                                                                                                                                                                                                                                                                                                                                                              Auxiliary_159 -
                                                                                                                                                                                                                                                                                                                                                                                                                                    Copy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     100

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      80

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      60
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Rate_49 - Copy 3
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          profit
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Level_20 - Copy 3                   Labor costs Biooil -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Copy 3                               #
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Biooil variable costs
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Cap ital costs -Biooilr
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      p roduction - Cop y 3

                                                                                                                                                                                                                                                                                                  gaze - Copy               Total Pyrolysis gas                                                                                                                                                                                                                                                                                                                                                                                               # - Copy 3
                                                                                              Potencials      Razosanas                                                                                                                                                                                                       energy - Copy                                                                                                                                                                           40
                                                                                            izmantosanai - potencials - Copy                                                                                                                                                                               Energy content in                                                                                                                                                                                                                                                                                                                                                                                                                                 energy costs Biooil -
                       t/yr                                                                     Copy                                                                                                                                                                                                      Pyrolysis gas - Copy                                                                                                                                                                                        20                                                                                                                                                                                               OtherProdCosts                              Copy 3                                    Electricity tariff
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Biooil - Copy 3                           #
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        0
              80,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Auxiliary_166 -
                                                                                                                                                                                                                                                                                                (EUR /yr)/yr pe r yr²                                                                                                                                                                                               Ja n 1, 2016                       Ja n 1, 2021                       Ja n 1, 2026                     Ja n 1, 2031
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Copy 3
              60,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Non-com m ercial us e only!
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Auxiliary_169 -
                                                                                                                                      C a pa city in o pe ra tio n Bio o il - C o py                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Copy 3
                                                                                                                                                                                                                   (t/yr)/yr
                                                                                                                                                                                                                                                                                                          1,000,000                                                                                                                                                                                                                                                                                                                                                                                                                 w ood costs - Copy
              40,000                                                                                                                  P o te ncia ls izm a nto sa na i - C o py                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Ievaditais koksnes                                       4
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    daudzums - Copy

                                                                                                                                                                                            rate Biooil - Copy 3
                                                                                                                                                                                                                                                                                                                                                                                   C a pita l co sts - incre m e nt ra te Bio o il - C o py 3
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Average electricity

                                                                                                                                                                                            Decommissioning
                                                                                                                                                                                                                      93.0                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               consumption Biooil -
              20,000
                                                                                                                                                                                                                                                                                                                                                                                   C a pita l co sts - disca rd ra te Bio o il - C o py 3
                                                                                                                                                                                                                                                                                                500,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Copy 3
                                                                                                                                                                                                                      92.5
                                                                                                                                                                                                                                                                                          Finances  and Investments for Biooil                                                                                                                                                                                                                                                                                                                                                                                                                                 heating costs for
                      Ja n 1, 2016                    Infrastructure
                                                        Ja n 1, 2021       and
                                                                     Ja n 1, 2026 Technology
                                                                                     Ja n 1, 2031 for Biooil production                                                                                                                                                                 Economic lifetime                                                                                                                                                                                                                                                                                                                                                                                                     W ood chips price -                              Biooil production -
                                                                                                                                                   Non-com m ercial us e only!                                        92.0
                                                                                                                                                                                                                                                                                         Biooil - Copy 3                                                                                                                                                                                                          Labor requirement and wages for Biooil                                                                                                                                           Rate_34 - Copy 6Copy 3                                            Copy 3
                                                                                                                                                                                                                                                                                                                 Ja n 1, 2016           Ja n 1, 2026                                                                                                                                                                                                                                                                                                                                Final product price
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Capacity in operation                                                                                                                     increase
                                                                                                                                                                                                                                                                                                                                                                                                                      EUR /yr pe r
                                                                                                                                                                                                                                                                                                                                                                                                                       Non-com   myr
                                                                                                                                                                                                                                                                                                                                                                                                                                   ercial   us e only!                                                      Commissioning rate                    Biooil - Copy                           Decommissioning
                                                                                                                                 # initial                                                                            91.5                                                                                                                                                                                                                                                                                                                                                                                                                                t/yr
                                                                                                                           fraction                                   Razosanas        Potencials                                                                                                                                                                                                                                                                                                             Biooil - Copy 3                                                            rate Biooil - Copy 3                                                                                                            Bioellas razosana -

                                                                                                                                                                                                                                                                                                                                                                                               Biooilr production -
                                                                                                                         installed capacity                        potencials - Copy izmantosanai  - 2016
                                                                                                                                                                                              Ja n 1,                               Ja n 1, 2021        Ja n 1, 2026                  Ja n 1, 2031                                                                                                                                                                                                                                                                                                                                                                                                                              Copy
                                                                                                                           Biooil - Copy 3                                               Copy                                                                                                                                                                                                                                                                                                                                                                                                                                                           2,000

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Auxiliary_169 - Copy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Workforce,
                                                                                                                                                                                                                                                                                                                                                                                                                            39,600

                                                                                                                                                                                                                                                                                                                                                                                               Capital costs -
                                                                                                                                                                                                                                                              Non-com m ercial us e only!                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        2.40
                                                                                                                                                                         #                                                                                                             Discount rate Biooil
                                                                               Capacity under                                                                                                                                                                                               - Copy 3                                                                                                                                                                                                                                                                                                                                                                                       Ie va dita is k o k sne s da udzum s - C o py
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Average heating                                         2.39

                                                                                            Production
                                                                             construction Biooil -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      1,500                              Bio e lla s ra zo sa na - C o py
                                                                                                                                                 Capacity in operation                                                                                                                                                                                                                                                      39,300                                                                                                                                                                       Labor costs Biooil -                                                                                                          consumption Biooil -

                                                                                                                                                                                                                                                                                                                                                                                               Copy 3
                                      Capacity order rate                          Copy 3                         Commissioning rate                                   Decommissioning
                                                                                                                                                    Biooil - Copy                                                                                                                                                                                                                                                                                                                                                                                                                                             Copy 3                                                                                                                         Copy 3                                              2.38
                                        Biooil - Copy 3                                                             Biooil - Copy 3                                   rate Biooil - Copy 3                                                                                                                                               Capital costs -Biooilr                                                                                                                                                                                         New Capacity for
                                                                                                                                                                                                                                                                                                                                         production - Copy 3                                                                                                                                                                                             Biooil - Copy 3
                                                                                                                                                                                                                                                                                                                      Capital costs -                                             Capital costs -                                                                                                                                                                                                                                                       1,000                                                                                                                                    2.37

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      expenses
                                                                                                                                                                                                                                                                                                                      increment rate                                           discard rate Biooil -                           Ja n 1, 2016           Ja n 1, 2031
                                                                                                                                                                                                                      #                                                                                                                                                              Copy 3
                                                                                                                                                                                                                                                                                                                      Biooil - Copy 3                                                                                                                                                                                                                                                                                                                    Ja n 1, 2016   Ja n 1, 2031

                                                                                                                                                                                                                                                                           Investments and
                                                                                                                                                                                                                                                                                                                                                                                                                                   Non-com m ercial us e only!                                                                                                                                                                                                                                                                                                                                   2.36
                                                              Adjustment for

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          3
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Non-com m ercial us e only!

                                                                                            capacities
                                                              capacity under                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Ja n 1, 2016              Ja n 1, 2026
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Labor for Biooil                                                                                                                                                    heating tariff w ood -
                                                            construction Biooil -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               production - Copy 3                                                                                                                                                         Copy 4                                                                                     Non-com m ercial us e only!
                                                                  Copy 3                                                                                                                                                                                                                                                                                                                                                                                                                                               Increase in Labor                                    Decrease in Labor                                                                                                        Rate_14 - Copy 4
                                                                                                   Avg construction                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      fraction increase
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Requirements Biooil                                  Requirement Biooil -
                                                                                                 time Biooil - Copy 3                                                                        Avg lifetime of                                                                                                                                                                                                                                                                                                                                                                                               labour salary
                                                                                                                                                                                                                                                                                                                                         Cummulative                                                                                                                                                                        - Copy 3                                             Copy 3
                              t/yr
                                                                                                                                                                                          technology Pyrolysis
                                                                                                                           Constant_1 - Copy                                                reactor - Copy 3                                                                                                     Investment rate in     investment in

                                                                                                                                                                                                                                                                                capital
                       92,500
                                                                                                                                                                                                                                                                                                                  technology - Biooil technology Biooil -
construction Biooil

                                                                                                                                  4
                                                                          Desired capacity                                                                                                                                                                                                                                                 Copy 3                                                                                                                                                                                                                  Average salary Biooil
                                                                                                                                                                                                    Desired capacity in                                                                                          production - Copy 3                                                                                                                                                                                                                                    - Copy 3                                                                                                                      fraction increase
                                                                         under construction
Capacity under

                       92,000
                                                                                                                                                                                                     operation Biooil -                                                                                                                                                                                                                                                                                                                                                            Rate_3 - Copy 4                                                                                                   heating tariff w ood
                                                                           Biooil - Copy 3                                                                                                                                                                                                                                                                                                                                                                                                                                    Necessary labor
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Labor Requirements
                                                                                                                                                                                                          Copy 3
                                                                                                                                                                                                                                                                                        Cap acity order rate Biooil                                                                                                                                                                                                         requirement Biooil Biooil
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               -      - Copy 3
                                                                                                           Desired order rate                                Adjustment for                                                                                                                                                                                                                                                                                                                                                       Copy 3
                       91,500                                                                               Biooil - Copy 3                                                                                                                                                                      - Cop y 3                           Specific investment
                                                                                                                                                               capacity in
- Copy 3

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Annual w ages Biooil
                                                                                                                                                            operation Biooil -                                                                                                                                                       in technology Biooil                                                                                                                                                                                                        - Copy 3

                                                                                                                                                                                                                                                                             investments
                                                                                                                                                                 Copy 3                                                                                                                                                                    - Copy 3
                       91,000                                                                                                                                                                                  #
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Initial labor                      New Labor
                                                                                                                                                                                                                                                                          (t/yr)/yr                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              ?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               requirement Biooil -                  requirement                                                                                                                        ?                     Auxiliary_19 - Copy
                                                                                                                                                                                                                                                                                                                                                                          EUR /yr pe r yr

                                                                                                                                                                                                                                                   rate Biooil - Copy 3
                         Ja n 1, 2016                   Ja n 1, 2026                                                                                                                                                                                                       30,800                                                                                                                                                                                                                    Copy 3                        capacity Biooil -           Effect of production                                                                       Auxiliary_69 - Copy                           4                                                                added value
                                                                                                                                                                                  Bioellas razosanas                                                                                                        Commissioning rate

                                                                                                                                                                                                                                                                                                                                                   annual profit Biooil
                                                  Non-com m ercial us e only!                                                                                                                                                                                                                                                                                                                                                                                                                                                           Copy 3                       on labor                Step for capacity                                                      4                                                                                                 Plyw ood - Copy 4
                                                                                                                                                                                                                                                                                                                                                                                  1,640

                                                                                                                                                                                                                                                   Commissioning
                                                                                                                                                                                   potencials - Copy                                                                       30,700                             Biooil - Copy 3                                                                                                                                                                                                                                  requirement - Biooil           Biooil - Copy 3
                                                (t/yr)/yr                                                                (t/yr)/yr                                                                                                                                         30,600                                                                                                                                                                                                                                                                                    - Copy 3
                                                                                                                                                    Capacity in                                                                                                                                                                                                                                                                                                                                         Reference Capacity
                          Capacity order rate

                                                 30,800                                                                                                                                                                                                                                                                                                                           1,630
                                                                                                    Desired order rate

                                                                                                                          30,800                                                                                                                                                                                                                                                                                                                                                                          Biooil - Copy 3
                                                                                                                                                    operation                                                                                                              30,500
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              fraction running   fraction profit
                                                 30,700                                                                                          adjustment time                                                                                                                                                                                                                                                                                                                                  100                                                             1,500,000                                                                                          fraction capital       fraction labour costs             costs Plyw ood - Plyw ood - Copy 4

                                                                                                                                                                                                                                                                                                                                                   - Copy 3
                                                                                                                          30,700                                                                                                                                           30,400
                          Biooil - Copy 3

                                                                                                    Biooil - Copy 3

                                                                                                                                                  Biooil - Copy 3                                                                                                                                                                                                                 1,620
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    costs Plyw ood -          Plyw ood - Copy 4                    Copy 4
                                                 30,600                                                                   30,600                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Copy 4
                                                                                                                                                                                                                                                                           30,300                                                                                                                                                                                                                  80
                                                 30,500                                                                   30,500
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       annual profit per
                                                                                                                                                                                                                                                                             Ja n 1, 2016         Ja n 1, 2026                                                                                                                                                                                                                                                    1,000,000
                                                                                                                                                                                                                                                                                                                                                                                  1,610                                                                                                            60                                                                                                                                                                                                                                                                                                 unit Biooil - Copy 3
                                                 30,400                                                                   30,400                                                                                                                                                            Non-com m ercial us e only!                                                            Ja n 1, 2016         Ja n 1, 2026

                                                 30,300                                                                                                                                                                                                                                                                                                                                      Non-com m ercial us e only!                                                                           40
                                                                                                                          30,300                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      500,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Auxiliary_110 -
                                                   Ja n 1, 2016        Ja n 1, 2026                                         Ja n 1, 2016        Ja n 1, 2026                                                                                                                                                                                                                                                                                                                                       20                                                                                                                                                                       UnitCapCosts Biooil
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Copy 4
                                                                  Non-com m ercial us e only!                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    - Copy 3
                                                                                                                                           Non-com m ercial us e only!
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     0                                                                       0
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Ja n 1, 2016    Ja n 1, 2021   Ja n 1, 2026    Ja n 1, 2031             Ja n 1, 2016              Ja n 1, 2026
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Non-com m ercial us e only!                                      Non-com m ercial us e only!
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               added value per
                                                                                                                                                      Electricity Consumption for Biooil production                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Biooil variable costs                                                                                  unit Plyw ood - Copy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             - Copy 3                                                                                                  4
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Auxiliary_71 - Copy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     4         Labor costs Biooil -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Copy 3

                                              Average electricity
                          Commissioning rate consumption Biooil -
                            Biooil - Copy 3        Copy 3

                                                                                                                             Capacity in operation
                                                                                                                                Biooil - Copy
                                                                                                                                                                  Electricity, energy                                                                                            Perceived maximum
                                                                                                                                                                                                                                                                                 efficiency-electricity Efficiency research
                                                                                                                                                                                                                                                                                    Biooil - Copy 3     potential-electricity
                                                                                                                                                                                                                                                                                                          Biooil - Copy 3
                                                                                                                                                                                                                                                                                                                       Time to research -
                                                                                                                                                                                                                                                                                                                        electricity Biooil -
                                                                                                                                                                                                                                                                                                                              Copy 3
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Heating Consumption for Biooil production

                                                                                Electricity                                                                           efficiency                                                                                                                                                   Research rate -
                                                                                                                                                                                                                                                                                                                                  electricity Biooil -                                                                                                                                                              Average heating

              Electricity
         requirement of new
                                                            Increase in
                                                             electricity
                                                                           requirement Biooil -

                                                        requirement Biooil -
                                                              Copy 3
                                                                                 Copy 3
                                                                                                    Decrease in
                                                                                                     electricity
                                                                                                requirement Biooil -
                                                                                                      Copy 3
                                                                                                                                                  Decommissioning rate
                                                                                                                                                    Biooil - Cop y 3

                                                                                                                                                                                Electricity consumed
                                                                                                                                                                                                                                                                                                                                       Copy 3

                                                                                                                                                                                                                                                                                                                                      Efficiency
                                                                                                                                                                                                                                                                                                                                   development
                                                                                                                                                                                                                                                                                                                                potential - electricity
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Biooil - Copy 3        Copy 3

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Heat, energy efficiency
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Commissioning rate consumption Biooil -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Capacity in operation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Biooil - Copy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Perceived maximum
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           efficiency-heat Biooil Efficiency research
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  - Copy 3     potential-heat Biooil -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Copy 3

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Time to research -
          technology Biooil -                                                                                                                                                  for Biooil production -                                                                                                                             Biooil - Copy 3                                                                                                                                                                                                                                                                                                                                                                                         heat Biooil - Copy 3
               Copy 3                                                                                                                                                                   Copy 3                                                                                                                                                                                                                                                                                                                                                                                                                        Average heating
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    consumption Biooil -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Copy 3
                                                                                                                                                                                                                                                                                                                                  Development rate-                                                                                                                                                                                                                                                                                                                                                                                            Research rate -
                                                                                                                                                                                          Average electricity                                                                                                                      electricity Biooil -                                                                                                                                                                              Heating requirement                                                                                                                                                                                     heat Biooil - Copy 3
                                                                                                                                                                                         consumption Biooil -                                                                                                                           Copy 3                                                                                                                                                                                         Biooil - Copy 3
                                                                                                                                                             Electricity                                                                                                                                                                                                                                                                                                                                          Increase in heat                               Decrease in heat
                                     Current Efficiency -                                                                                                consumption rate                      Copy 3                                                                                                                                                                                                                                                                                                           requirement Biooil -                            requirement Biooil -
                                 electricity Biooil p roduction                        Bioellas razosana -                                               production Biooil -                                                                                                                                                                                                                                                                                                                                           Copy 3                                         Copy 3                 Decommissioning rate
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Efficiency
                                            - Cop y 3                                         Copy                                                            Copy 3                                                                                                                                                                                                                                                                                                                                                                                                                           Biooil - Cop y 3
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               development
                                                                                                                                                                                                                                                                                          Current Efficiency -                                            Time to develop-                                                                                                                Heating                                                                                                                                                                                                                                          potential - heat Biooil
                                                                                                                                                                                                                                                                                            electricity Biooil                                            electricity Biooil -                                                                                                      requirement of new                                                                                                                Heat consumed for
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 - Copy 3
                                                                                                                                                                                                                                                                                          production - Copy 3                                                  Copy 3                                                                                                                technology Biooil -                                                                                                              Biooil production -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Copy 3                                                                                                                            Copy 3
                                 Desired capacity in
                                  operation Biooil -                                                                                        Capacity utilization
                                       Copy 3                                                                                                 Biooil - Copy 3
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Development rate-
                                                                                                                                                                                                                                                                                                      intial specific energy                                                                                                                                                                                                                                                                                                                                                                                                                 heat Biooil - Copy 3
                                                                                                Capacity in operation                                                                                                                                                                                 consumption Biooil -                                                                                                                                                                                              Current Efficiency -
                                                                                                   Biooil - Copy                                                                                                                                                                                              Copy 3                                                                                                                                                                                                   heat Biooil production                                                     Heat consumption
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             - Copy 3                                                              rate production
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Biooil - Copy 3
                                                                       Required capacity
                                                                        addition Biooil -                                                                                                                                                                                                                                                                                                                                                                                                                                                        Bioellas razosana -                                                                                                                             Current Efficiency -                                         Time to develop-
                                                                            Copy 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Copy                                                                                                                                    heat Biooil production                                       heat Biooil - Copy 3
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      - Copy 3

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Desired capacity in
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  operation Biooil -                                                                    Capacity utilization
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Copy 3                                                                           for Biooil - Copy 3

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Capacity in operation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Biooil - Copy

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Required capacity                                                                                                                                                                                                                            Auxiliary_165 -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           addition for Biooil -                                                                                                                                                                                                                            Copy 3
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Copy 3

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    21
Input data for system dynamics model

                   Selected           Product
                  production       amount from
     Product
                  capacities,        used raw   Product        Capital
                     t/year         material, % price, €/t investments, €/t
         Lyocell    65 000             30,4 1    2 500          4 328
          Bio-oil   30 000              70 2       190           600
          Xylan
                    20 000              15 1           2 500      5 000
     derivatives
 1 – from input dry mass
 2 – from input raw material with 10% relative moisture content

Input data, that are taken into account:
▪ electricity and heat consumptions and tariffs;
▪ chemical amounts and expenses;
▪ workforce and it’s expenses.                                                22
Assumptions in system dynamic modelling

       ▪ raw material and end products price increase is
         2% per year;
       ▪ payment increase for workforce is 3% per year;
       ▪ heat tariff increase is 1,5% per year;
       ▪ electricity tariff increase is 1,5% per year;
       ▪ economic lifetime for technologies is 15 years;
       ▪ investments discount rate is 7%.

                                                           23
Products relative expenses comparison
           100%

            90%

            80%

            70%

            60%

            50%

            40%

            30%

            20%

            10%

             0%
                         Lyocell               Bio-oil        Xylan derivatives
                  Workforce expenses   Capital expenses   Wood expenses
                  Energy expenses      Other expenses     Chemical expenses

                                                                                  24
Profit showings comparison

                                          600,00                                                                         60,00

                                                                                                                                   Profit on used wood unit, €/m3
         Profit on production unit, €/t
                                          400,00                                                                         40,00

                                          200,00                                                                         20,00

                                             0,00                                                                        0,00

                                          -200,00                                                                        -20,00

                                          -400,00                                                                        -40,00

                                          -600,00                                                                         -60,00
                                                 2018         2020        2022       2024   2026        2028          2030
                                               Lyocell profit (on t of production)           Bio-oil profit (on t of production)
                                               Xylan profit (on t of production)             Lyocell profit (on m3 wood)
                                               Bio-oil profit (on m3 wood)                   Xylan profit (on m3 wood)

                                                                                                                                                                    25
Cascade type production unit
                    ▪ Feasibilty study’s economic and effects on environment evaluation
                      shows that it is necessary to develop product groups not individual
                      products, that matches up with bioeconomy principles and increase
                      income overall
                              Biomass

                                                                                                       Use for energy production
                                              1.
                                         end-product

                                                                     By-product use
                                                            2.
                                                       end-product

                                                                                      By-product use
                                                                                  3.
Riga Technical university
                                                                             end-product                                           26
Potential market and price study

                                   27
Potential market and price study

                               Market appeal                   Competition advantages
       Product       Price        Local        International       Local        International
                                 market          market           market           market
       Lyocell     2,54 €/kg     69 %            80 %             27 %             47 %
                                                               46 % (natural)   58 % (natural)

       Bio-oil     9–15 €/GJ      67 %            73 %             27 %             31 %

       Xylan        6 €/kg          -             67 %               -              14 %
       (xylitol)

                                                                                                 28
Market outlook - GE/ McKinsey matrix

                    99%
Market attractiveness

                    66%

                    33%

                        0%
                             0%                   33%                      66%                        99%
                                                   Products competitive advantages
                             Lyocell LV       Lyocell EU         Lyocell LV natural   Lyocell EU natural
                             Xylitol Europe   Bio-oil LV         Bio-oil Europe                             29
Market study results summary

▪ Xylan (xylitol) can be obtained as by-product in other production
  processes, xylitol as sweetener has big competition. Complex
  product manufacturing possibilities or manufacturing of xylan as
  by-product should be evaluated.
▪ Bio-oil as fuel is possible to realise, if competition advantages are
  improved, but it is advised to evaluate products from bio-oil with
  higher added value. Bio-oil use can be put to further processing in
  products with higher added value, for example, biodiesel
  (transport), phenol (rubber factories), volatile organic acids (ice-
  cover preclusion), additives for pharmacy and food factories, etc.
▪ Lyocell shows positive commercialization possibilities in a
  segment of natural fibres. Total textile fibre segment should
  concentrate on international market.
Before starting production and commercialization more detailed
market study and analysis of business plan is necessary.
                                                                          30
Additional research questions

                                31
Additional research questions

                              Question groups

                                                  4.
 1. Innovative       2.                      Environmen    5. Law and
                 Innovative    3. Economic
 technologies                   questions       t and      regulations
                  products                     climate      questions
                                              questions

24 research questions are offered in a feasibility study

                                                                         32
Conclusions

              33
Conclusions (I)
▪ The golden string of LSF can be found in bioeconomy development
  of the forestry industry: there is a wide range of possibilities to
  increase price of forest resources in long term, by going step by step
  in exported forest resource processing in Latvia, by initializing
  (helping create) increased demand in local market and increased
  economic advantages of forest resource use.
▪ There are fields identified, where forestry industry organisations can
  work. It was done by evaluating three innovative products – textile
  from wood (lyocell), bio-oil and chemical products (xylan derivatives)
  commercialization possibilities. Separate manufacturing of one
  particular product, without using residues for manufacturing of other
  products with high added value, is not economically feasible in most
  cases and leave bigger effects on climate and environment.
  Therefore, it is suggested to evaluate manufacturing of these
  products in a complex system with other products (using by-
  products for manufacturing of other products) in detail.

                                                                           34
Conclusions (II)

▪ Scientific institutions of Latvia are ready to carry out studies on
  manufacturing of innovative products from forest biomass, including
  development of new and effective technologies for globally known by-
  products, and their commercialization, but until now innovation
  development has been obstructed by:
    – lack of financial resources;
    – interdisciplinary cooperation nihility between different scientific institutions;
    – lack of studies that are oriented on results;
    – scientifically justified facts and trust, that there are adequate and suitable
      amounts of available bioresources in Latvia;
    – disregard of bioeconomy base principles.

▪ It should be continued to systematically develop innovative products
  and technologies commercialization possibilities by taking into account
  commercialization effecting factors (for example, not only economic and
  climate, but also political, resource and social, etc. factors) dynamic
  nature.

                                                                                          35
Recommendations

                  36
Recommendations (I)
▪   To develop organisation (JSC «Latvia’s State Forests») bioeconomy
    strategy, that would be a base for resource consolidation, research actions,
    product commercialization in short term and long term.
▪   Climate alignment. To help government institutions arrange climate politics
    questions, achieving support in carbon preservation innovative products
    methods acknowledgment and include these calculations in EU member
    states climate goals.
▪   Resource alignment. To make resource use study on non-coniferous wood,
    depending on species, use for products with high added value and on
    particular, incompletely used forest resource (for example, needles, barks)
    no residue use possibilities for manufacturing of different products with high
    added value.
▪   Manufacturing alignment. To make detailed studies on bio-oil, textile from
    wood and valuable chemical compound complex manufacturing possibilities
    in Latvia, including practical studies (development of technologies and
    prototypes) and business plan development for particular product
    manufacturing. To evaluate possibilities to establish biorefinery factory in
    Latvia, where forest biomass would be used as a main resource. To
    evaluate possibilities to renew cellulose production in Latvia for
    manufacturing of products with high added value, using innovative,
    environment and human health friendly technologies.
                                                                                     37
Recommendations (II)
▪ Environment alignment. To carry out a study on bioeconomy
  development effects on climate, environment and biodiversity, to define
  boundary conditions for different bioresources that can be collected
  from forest, without creating damages on climate, environment and
  biodiversity.
▪ To give an opportunity to representative of scientific institutions of Latvia
  to offer and for LSF to support local scientist created innovation
  development for forest biomass use to create product with high added
  value. To initialize scientists on result based research: for innovative
  products from forest biomass commercialization (from laboratory scale
  to product - TRL >7).

▪ Management alignment. Making of expert work group, including
  untraditionally thinking experts, for gradual and regular bioeconomy
  principles establishment in LSF.
▪ Development of information alignment, to (1) promote employer and
  forestry industry professional understanding and interest in sustainable
  forest resource use and (2) to advance society’s education and
  involvement in forest resource eco-effective use.
                                                                                  38
Contract executors
▪ Dr.hab.sc.ing. Dagnija Blumberga
▪ Dr.hab.sc.ing. Ivars Veidenbergs
▪ Dr.sc.ing. Jeļena Pubule, Gatis Bažbauers, Andra
  Blumberga
▪ Dr.sc.chem. Sarma Valtere, Kārlis Valters
▪ M.sc. Indra Muižniece, Lauma Žihare, Krišs Spalviņš,
  Karīna Bāliņa, Lelde Timma, Vladimirs Kirsanovs, Miķelis
  Dzikēvičs, Jeļena Ziemele
▪ B.sc. Raimonda Soloha, Armands Grāvelsiņš, Toms
  Prodaņuks, Vivita Priedniece, Līga Sniega, Antra
  Kalnbaļķīte
Consultants: Indulis Brauners, Matīss Bičevskis, Andis
  Lazdiņš
                                                             39
You can also read