**4. A value chain and feasibility analysis for establishing bioenergy plants in Northern Norway**

#### **4.1. Bioenergy production and bioenergy plants in Norway**

The most significant energy consumption in Norway is electricity, which constitutes 88.8% of the total energy consumption in 2012, and it is approximately 17 times higher than the second largest one: petroleum products [52]. The main reason for the high dependency on electrical power is the lower price than other types of energy resources due to the rich reserves of hydropower for electricity generation. Hydroelectric power once contributed more than 99% electricity production in Norway [53], and the situation has not been changed until the latest years when energy production from biomass and biodegradable waste takes a small share from hydroelectric power.

All the Scandinavian countries, such as Denmark, Sweden, Norway and Finland, support the use of renewable energy resources for power generation and space heating, among which Norway has expelled itself as one of the best countries in Europe for renewable energy generation and consumption (58%) due to the high contribution from hydroelectric power [54]. However, the contribution from bioenergy production is extremely insignificant. Furthermore, compared with other Scandinavian countries where bioenergy has already played an important role in power generation, the share of electricity production by biomass and biodegradable waste in Norway is much smaller as shown in **Figure 5**.

The government in Norway has made an ambitious strategic plan for dramatically increasing the bioenergy production by 2020 through policy measures and financial supports [55]. For example, waste regulation has been implemented in Norway since 2009 implementing a ban, which specifies alternative ways for the treatment of biodegradable waste other than landfill. Besides, the forestry and agricultural legislation promote sustainable economic and environmental development in forest management and agriculture industry [53], so bioenergy production from forest and agricultural residues is encouraged. Further, the use of biofuels in land transport to replace fossil fuels is also encouraged in Norway. The road tax charges carbon emission for the vehicles using petroleum and natural gas products, but the cars using biofuels or biogas as the main power are exempt from this charge. In addition, plans for increasing the use of bioenergy for space heating of public and commercial buildings are also under development in order to reduce the fossil fuel consumption for heating.

In Norway, bioenergy production has two characteristics. First, compared with electricity generation, the use of biofuels and biogas in transport sector seems more attractive, because it decreases both the high dependency on fossil fuels and GHG emissions. Besides, Norway

**Figure 5.** Power generation by sources in Scandinavian countries [54].

the GHG and hazardous gas emission can be reduced by the utilization of biofuel and biogas

**Table 2.** Some strategic, tactical and operational decisions in the planning of a value chain for bioenergy production.

• Selection of network configuration: location, capacity, etc.

• Policy making for supplier and customer management

• Selection of potential suppliers and markets

• Aggregate production planning

• Scheduling and route planning

The realization of an effective and efficient value-added chain of bioenergy production from biomass and biodegradable waste requires sophisticated decision tools for planning and developing an optimal and robust logistical network, and several strategic, tactical and operational decisions that have to be made are summarized in **Table 2**. In order to provide reliable support for decision-making, great efforts should be spent in the development of theoretical and computational models and decision support systems. Besides, the inherent characteristic of the seasonal availability of biomass and biodegradable waste generation makes the prediction of the feedstock of bioenergy production becoming extremely complicated. Therefore, the aforementioned factors have become the most challenging obstacles for realizing the value-added process of bioenergy production, and inappropriate decisions will hinder the

**4. A value chain and feasibility analysis for establishing bioenergy** 

The most significant energy consumption in Norway is electricity, which constitutes 88.8% of the total energy consumption in 2012, and it is approximately 17 times higher than the second largest one: petroleum products [52]. The main reason for the high dependency on electrical power is the lower price than other types of energy resources due to the rich reserves of hydropower for electricity generation. Hydroelectric power once contributed more than 99% electricity production in Norway [53], and the situation has not been changed until the latest years when energy production from biomass and biodegradable waste takes a small share

as the substitutes of fossil fuels in land transport and aviation industry [51].

Strategic decision • Selection of WTE and treatment technologies

Tactical decision • Selection of equipment at different facilities

Operational decision • Execution of the policies made in previous step

achievement of maximum value creation and appreciation.

**4.1. Bioenergy production and bioenergy plants in Norway**

**plants in Northern Norway**

**Decision level Decisions**

192 Energy Systems and Environment

from hydroelectric power.

implemented the report of biofuels' usage in transport sector from 2014, and it has become one of the most important criteria to assess sustainability in transport sector. Therefore, thermochemical technologies, anaerobic digestion and MBT are widely used methods in Norway for biogas and biofuel production.

The other characteristic of bioenergy production in Norway is the feedstock mainly comes from forestry/wood industry and waste management. **Figure 7** illustrates the sources of biomass and biodegradable waste for bioenergy production in Nordic countries. As shown in the figure, black liquor from chemical industry and wood residues from forestry industry are the most important resources for bioenergy production in Sweden and Finland, while the feedstock for bioenergy production in Norway and Denmark is mainly from waste management sector and forestry industry. Utilization of wood and forestry residues has been well-developed in Norway, and previous studies have discussed the policy structure [56], impact [57] and future potential [58] of bioenergy production from forestry biomass and waste. Besides, it is also noteworthy that energy crops, i.e. poplar, reed canary grass, willow, etc. [59], are not commercially cultivated in Norway, and the portion of bioenergy production from energy crops in the other Scandinavian countries is small as well. The main reason is that the long winter and cold climate in Scandinavian countries make it becoming economically unafford-

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Bioenergy production in Northern Norway has been focused for many years. However, the negotiation between different stakeholders has been difficult reaching an implementation plan due to the conflicting interests involved. Earlier, the locations of landfill and composting plant were focused due to the consideration of the costs for waste collection and environmental risks of treatment facilities of biodegradable waste. Recently, the treatment plants have been equipped with closable ports, ventilation system, air cleaning system as well as other upgrades, which tremendously reduce the negative impact on the environment, and the focus

able for cultivation of energy crops for bioenergy production in this area.

on the energy recovery of biodegradable waste has been increasingly discussed.

**Figure 7.** Bioenergy production by sources in Nordic countries [54].

**4.2. A feasibility study of bioenergy production in Nordland county**

**Figure 6** illustrates the established biogas and biofuel production plants as well as the demographic distribution, forestry and agricultural areas and road transport network in Norway. Currently, all the established bioenergy production plants are geographically located around the largest cities in the southern and central parts of Norway, and the northernmost bioenergy production plant is located at Verdal (North Trøndelag County). The established biogas and biofuel production plants in Norway have maintained well economic performance and contributed to the mitigation of GHG emissions. The critical success factors for bioenergy production in this region are summarized as follows:


**Figure 6.** (a) Established biogas and biofuel production plants in Norway; (b) demographic distribution of southern and central parts of Norway; (c) forestry and agricultural industry in southern and central parts of Norway; and (d) road transport network of southern and central parts of Norway [11, 52].

The other characteristic of bioenergy production in Norway is the feedstock mainly comes from forestry/wood industry and waste management. **Figure 7** illustrates the sources of biomass and biodegradable waste for bioenergy production in Nordic countries. As shown in the figure, black liquor from chemical industry and wood residues from forestry industry are the most important resources for bioenergy production in Sweden and Finland, while the feedstock for bioenergy production in Norway and Denmark is mainly from waste management sector and forestry industry. Utilization of wood and forestry residues has been well-developed in Norway, and previous studies have discussed the policy structure [56], impact [57] and future potential [58] of bioenergy production from forestry biomass and waste. Besides, it is also noteworthy that energy crops, i.e. poplar, reed canary grass, willow, etc. [59], are not commercially cultivated in Norway, and the portion of bioenergy production from energy crops in the other Scandinavian countries is small as well. The main reason is that the long winter and cold climate in Scandinavian countries make it becoming economically unaffordable for cultivation of energy crops for bioenergy production in this area.

#### **4.2. A feasibility study of bioenergy production in Nordland county**

implemented the report of biofuels' usage in transport sector from 2014, and it has become one of the most important criteria to assess sustainability in transport sector. Therefore, thermochemical technologies, anaerobic digestion and MBT are widely used methods in Norway

**Figure 6** illustrates the established biogas and biofuel production plants as well as the demographic distribution, forestry and agricultural areas and road transport network in Norway. Currently, all the established bioenergy production plants are geographically located around the largest cities in the southern and central parts of Norway, and the northernmost bioenergy production plant is located at Verdal (North Trøndelag County). The established biogas and biofuel production plants in Norway have maintained well economic performance and contributed to the mitigation of GHG emissions. The critical success factors for bioenergy

• Dense population, agricultural and industrial clusters provide enough feedstock of bio-

• Well-developed road transport network provides easy access to the collection and distribu-

• Short distance between the bioenergy plants and collection points of biomass and biode-

• Governmental support for developing biogas and biofuel market, i.e. biogas used as the main fuel for the public transport in Fredrikstad, tax relief for biogas and biofuel in trans-

**Figure 6.** (a) Established biogas and biofuel production plants in Norway; (b) demographic distribution of southern and central parts of Norway; (c) forestry and agricultural industry in southern and central parts of Norway; and (d) road

• Incentives for bioenergy production from biomass and biodegradable waste.

for biogas and biofuel production.

194 Energy Systems and Environment

production in this region are summarized as follows:

tion of biomass and biodegradable waste.

transport network of southern and central parts of Norway [11, 52].

port sector [53].

mass and biodegradable waste for bioenergy production.

gradable waste reduces the transportation and logistics cost.

Bioenergy production in Northern Norway has been focused for many years. However, the negotiation between different stakeholders has been difficult reaching an implementation plan due to the conflicting interests involved. Earlier, the locations of landfill and composting plant were focused due to the consideration of the costs for waste collection and environmental risks of treatment facilities of biodegradable waste. Recently, the treatment plants have been equipped with closable ports, ventilation system, air cleaning system as well as other upgrades, which tremendously reduce the negative impact on the environment, and the focus on the energy recovery of biodegradable waste has been increasingly discussed.

**Figure 7.** Bioenergy production by sources in Nordic countries [54].

In order to promote bioenergy production from biomass and biodegradable waste, Nordland County has drafted an initial plan for establishing a bioenergy plant at the costal-town Leknes. Leknes is the geographic centre of the famous Lofoten archipelago, and the close proximity to local agricultural areas, fishery and livestock industry is the main reason for the strategic decision of plant location. Besides, Leknes also has long-term experience in aerobic technologies, and the biomass and biodegradable waste generated at this region are treated at the composting plant. The upgrade of the aerobic composting plant to a MBT plant for producing biogas has been discussed for several years, and the strongest support is from local agriculture and livestock industry.

Leknes is one of the largest agricultural municipalities in Nordland County, and the meat production from poultry and livestock is on a large scale. The treatment of animal's manure is one of the most challenges in this area. Traditionally, the animal's manure is stored during winter time in barn and used as fertilizer for pasture grass production, but the emissions of methane and other hazardous gases from animal's manure are harmful to the environment. The planned MBT plant can effectively resolve this problem through converting the animal's manure into biogas and bio-rest, which can be used as vehicle fuel and fertilizer, so the plan is welcomed by local agriculture and livestock industry. Another supporter for bioenergy production from biodegradable waste is the local waste management company: LAS. Currently, LAS operates a landfill and a composting plant, and the anaerobic digestion facility planned in Leknes will be an attractive alternative for the treatment of biodegradable waste from LAS.

of annual generation of biomass and biodegradable waste is of importance. Estimation of the

**Total biogas output (m3**

**/year)**

A Value Chain Analysis for Bioenergy Production from Biomass and Biodegradable Waste…

**Conversion factor (KWh/ton)(4)**

**Total estimated energy output (GWh)**

197

http://dx.doi.org/10.5772/intechopen.72346

**1.** Biodegradable municipal waste collected by regional waste management companies:

Calculation of the output of bioenergy production based on input amount provides valuable criteria for value chain analysis. Previous studies have formulated different models for the calculation of biogas output from different types of feedstock. Calculation in this chapter is based on the established models for biodegradable municipal waste and livestock residues from Norway [8], Sweden [60] and Denmark [61]. **Table 3** gives the estimated output of biogas from the three types of feedstock. The estimated output amount may be different from the

• The calculation of the outputs from the three types of biodegradable waste is conducted through the combination of different literatures. However, as a general rule, the biogas

• It is a common situation that different types of biomass are mixed in the digester for anaerobic digestion, and this will lead to different output amount with the separate digestion that estimated in the table. It is therefore impossible to foresee the exact output due to the biochemical decomposition of protein, carbohydrates, lipid differs and other substrates. • Animal's manure has the least conversion efficiency, but its presence has great meaning for the conversion of mixed biomass and biodegradable waste due to the content of bacteria, nourishment and trace elements, which provide a stabilizing effect for the microbial digestion in the reactor tank. Researches on the optimization of biogas production have revealed that

annual amount of three types of biodegradable waste is presented as follows:

**2.** Biodegradable waste from slaughterhouse: 1400 tons/year.

**3.** Animal's manure from livestock industry: 5000 tons/year.

actual amount, and this is due to the following reasons:

output in reality is usually lower than the estimated value.

13,000 ton/year.

(3)AM: animal's manure. (4)Basic data from Refs. [8, 63, 64].

(1)BMW: biodegradable municipal waste. (2)BWS: biodegradable waste from slaughterhouse.

**Biodegradable waste**

**Estimated biogas output (m3**

**Table 3.** Estimated output amounts of biogas and bioenergy.

**/year)(4)**

**Average factor(4)**

BMW(1) 204 180 2,340,000 1120 14.5 BWS(2) 93 102 142,800 444 0.62 AM(3) 19 19 95,000 190 0.95 Sum N/A N/A 2,577,800 N/A 16.3

**Figure 8** illustrates the value-added process of bioenergy production. The feedstock in this area is mainly from agriculture residues, livestock residues, fishery residues and municipal waste; however, biomass from forestry industry is not included in the current plan. The technology applied for bioenergy production in Leknes is MBT, and the main products are biogas and bio-rest. The biogas can be used as the fuels at land transport sector, and the bio-rest can be used as fertilizer for agriculture industry. Both biogas and bio-rest can either be used locally or sold in domestic/international markets.

The bioenergy production plant in Leknes aims at providing a sustainable solution in dealing with biomass and biodegradable waste from the municipalities in Nordland County. The most important factor of bioenergy production is to maintain economy of scale, so knowledge

**Figure 8.** Value chain architecture of bioenergy production plant at Leknes [11, 52].

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(1)BMW: biodegradable municipal waste.

(2)BWS: biodegradable waste from slaughterhouse.

(3)AM: animal's manure.

In order to promote bioenergy production from biomass and biodegradable waste, Nordland County has drafted an initial plan for establishing a bioenergy plant at the costal-town Leknes. Leknes is the geographic centre of the famous Lofoten archipelago, and the close proximity to local agricultural areas, fishery and livestock industry is the main reason for the strategic decision of plant location. Besides, Leknes also has long-term experience in aerobic technologies, and the biomass and biodegradable waste generated at this region are treated at the composting plant. The upgrade of the aerobic composting plant to a MBT plant for producing biogas has been discussed for several years, and the strongest support is from local agriculture and livestock industry. Leknes is one of the largest agricultural municipalities in Nordland County, and the meat production from poultry and livestock is on a large scale. The treatment of animal's manure is one of the most challenges in this area. Traditionally, the animal's manure is stored during winter time in barn and used as fertilizer for pasture grass production, but the emissions of methane and other hazardous gases from animal's manure are harmful to the environment. The planned MBT plant can effectively resolve this problem through converting the animal's manure into biogas and bio-rest, which can be used as vehicle fuel and fertilizer, so the plan is welcomed by local agriculture and livestock industry. Another supporter for bioenergy production from biodegradable waste is the local waste management company: LAS. Currently, LAS operates a landfill and a composting plant, and the anaerobic digestion facility planned in Leknes will be an attractive alternative for the treatment of biodegradable waste from LAS. **Figure 8** illustrates the value-added process of bioenergy production. The feedstock in this area is mainly from agriculture residues, livestock residues, fishery residues and municipal waste; however, biomass from forestry industry is not included in the current plan. The technology applied for bioenergy production in Leknes is MBT, and the main products are biogas and bio-rest. The biogas can be used as the fuels at land transport sector, and the bio-rest can be used as fertilizer for agriculture industry. Both biogas and bio-rest can either be used

The bioenergy production plant in Leknes aims at providing a sustainable solution in dealing with biomass and biodegradable waste from the municipalities in Nordland County. The most important factor of bioenergy production is to maintain economy of scale, so knowledge

locally or sold in domestic/international markets.

196 Energy Systems and Environment

**Figure 8.** Value chain architecture of bioenergy production plant at Leknes [11, 52].

(4)Basic data from Refs. [8, 63, 64].

**Table 3.** Estimated output amounts of biogas and bioenergy.

of annual generation of biomass and biodegradable waste is of importance. Estimation of the annual amount of three types of biodegradable waste is presented as follows:


Calculation of the output of bioenergy production based on input amount provides valuable criteria for value chain analysis. Previous studies have formulated different models for the calculation of biogas output from different types of feedstock. Calculation in this chapter is based on the established models for biodegradable municipal waste and livestock residues from Norway [8], Sweden [60] and Denmark [61]. **Table 3** gives the estimated output of biogas from the three types of feedstock. The estimated output amount may be different from the actual amount, and this is due to the following reasons:


compound mixtures of different substrates result in a microbial society with a larger diversity and are more stable [62], and that counts for an optimistic view of the calculated output.

GHG emissions associated with the transportation of biomass and biodegradable waste to Leknes are another important problem when the bioenergy production network is designed. In Nordland County, four regional waste management companies are involved in the collection, transportation and treatment of biodegradable waste in different municipalities: HRS, RENO VEST, IRIS and LAS. Currently, RENO VEST and LAS send their waste to Leknes for aerobic composting, and the organic waste collected at Narvik municipality is treated at the incineration plant at Kiruna in northern Sweden. Bodø municipality has its own composting plant for dealing with biodegradable waste. Obviously, both aerobic digestion and direct combustion are less sustainable than bioenergy production through MBT, so the planned

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199

**Table 5** presents the annual generation of biodegradable waste at different municipalities in Nordland County, and the distance from each municipality to Leknes is also given in this table. As shown in the table, transportation of small amount of biodegradable waste over long distance is necessary when the MBT plant is located at Leknes, and this will lose the advantage of economy of scale and increase GHG emissions. However, it is also the situation in today's waste management system. For example, the biodegradable waste collected at Narvik municipality travels 178 km to Kiruna for incineration. Compared with today's situation, only the transportation of biodegradable waste from Narvik and Bodø to Leknes

based on the information provided by the waste management companies, which include the monthly generation of biodegradable waste in each community and the unit fuel consumption of waste collection and further distribution. Compared with the current waste manage-

Although it is difficult to formulate the complete value-added process of bioenergy production, we can still see a large potential of a sustainable solution for both energy production and waste management in Northern Norway. However, decisions must be made based on the consideration and justification of both benefits and challenges, and the interests of different stakeholders within the value chain of bioenergy production should also be taken into account. **Table 7** summarizes the opportunities and challenges of bioenergy production in Nordland County. As shown in the table, bioenergy production from biomass and biodegradable waste will deliver a great amount of biofuels and fertilizer to the market; besides, it will decrease GHG emissions as well as other environmental impacts from local agriculture, live-

portation in the overall bioenergy production network will be increased, and the operating costs of the MBT plant are higher in the cold regions due to more energy consumption for maintaining a constant temperature for anaerobic digestion. Further, there are uncertainties

In order to resolve those challenges, policy support must be first formulated accordingly by the government so that the value added through the bioenergy production can be shared by all the stakeholders within the value chain. For example, governmental incentives or tax relief

emissions of biomass and biodegradable waste transportation of the

emissions from the

emissions are calculated

emissions of the trans-

emission will be

MBT plant at Leknes becomes a suitable alternative for HRS and IRIS.

will increase GHG emissions. **Table 6** illustrates the estimation of CO<sup>2</sup>

transportation of biodegradable waste to Leknes. The estimated CO<sup>2</sup>

planned bioenergy production system will be increased by 19.3%.

stock industry and waste management. However, the costs and CO<sup>2</sup>

increased for the transportation of them to potential markets.

about the potential markets for biofuels and fertilizer, and the cost and CO<sup>2</sup>

ment system, the CO<sup>2</sup>

Environmental challenges in high north arctic regions have been attracted much more focuses due to the potentially severe consequences such as melting glaciers and sea-level rise caused by global warming. GHG emissions have been proved to be the most important driving force for the global warming and climate change, and it has more influences on the vulnerable ecoenvironment. Thus, the environmental impact of bioenergy production is assessed by GHG emissions. Two types of GHG emissions are estimated in this chapter, one is the emissions of methane from stored animal's manure in livestock industry, and the other is the CO<sup>2</sup> emissions from the transportation to the MBT plant at Leknes.

The storage of animal's manure in winter not only occupies great space but also releases a large amount of methane. The treatment of animal's manure through bioenergy production can effectively resolve this problem. From the national perspective, Norwegian strategic document for bioenergy development estimates that the overall amount of animal's manure from livestock industry for potential bioenergy production in Norway is approximately 3.92 million tons, and this will lead to 305,000 tons CO<sup>2</sup> -equivalent reduction of GHG emissions [10]. The amount of different animals in local livestock industry is given by the Farmer's Interest Organization at Lofoten region. Besides, we also presupposed an input amount of 5000 tons of animal's manure to a co-substrate-mixture at the bioenergy production plant. **Table 4** illustrates the annual emissions of methane from the animal's manure by sources. Based on the method provided in the governmental calculation, an overall 0.39 tons CO<sup>2</sup> equivalent reduction of methane emissions from local livestock industry can be estimated. Besides, the calculation also implies a reduction of fertilizer for pasture grass production; however, this can also be solved by utilizing the bio-rest from bioenergy production at Leknes. Development for utilizing wet bio-rest in agriculture has recently been proved to be a good fertilizer [64–66], and the close distance from local agriculture and livestock industry to the planned location of the MBT plant is another advantage for the utilization of bio-rest.


(1)Data provided from Farmer's Interest Organization, Lofoten region.

(2)Basic data from statistical yearbook of Norway [52].

**Table 4.** Emissions of methane from stored animal's manure.

GHG emissions associated with the transportation of biomass and biodegradable waste to Leknes are another important problem when the bioenergy production network is designed. In Nordland County, four regional waste management companies are involved in the collection, transportation and treatment of biodegradable waste in different municipalities: HRS, RENO VEST, IRIS and LAS. Currently, RENO VEST and LAS send their waste to Leknes for aerobic composting, and the organic waste collected at Narvik municipality is treated at the incineration plant at Kiruna in northern Sweden. Bodø municipality has its own composting plant for dealing with biodegradable waste. Obviously, both aerobic digestion and direct combustion are less sustainable than bioenergy production through MBT, so the planned MBT plant at Leknes becomes a suitable alternative for HRS and IRIS.

compound mixtures of different substrates result in a microbial society with a larger diversity and are more stable [62], and that counts for an optimistic view of the calculated output.

Environmental challenges in high north arctic regions have been attracted much more focuses due to the potentially severe consequences such as melting glaciers and sea-level rise caused by global warming. GHG emissions have been proved to be the most important driving force for the global warming and climate change, and it has more influences on the vulnerable ecoenvironment. Thus, the environmental impact of bioenergy production is assessed by GHG emissions. Two types of GHG emissions are estimated in this chapter, one is the emissions of

methane from stored animal's manure in livestock industry, and the other is the CO<sup>2</sup>

The storage of animal's manure in winter not only occupies great space but also releases a large amount of methane. The treatment of animal's manure through bioenergy production can effectively resolve this problem. From the national perspective, Norwegian strategic document for bioenergy development estimates that the overall amount of animal's manure from livestock industry for potential bioenergy production in Norway is approximately 3.92

[10]. The amount of different animals in local livestock industry is given by the Farmer's Interest Organization at Lofoten region. Besides, we also presupposed an input amount of 5000 tons of animal's manure to a co-substrate-mixture at the bioenergy production plant. **Table 4** illustrates the annual emissions of methane from the animal's manure by sources. Based on the method provided in the governmental calculation, an overall 0.39 tons CO<sup>2</sup>

equivalent reduction of methane emissions from local livestock industry can be estimated. Besides, the calculation also implies a reduction of fertilizer for pasture grass production; however, this can also be solved by utilizing the bio-rest from bioenergy production at Leknes. Development for utilizing wet bio-rest in agriculture has recently been proved to be a good fertilizer [64–66], and the close distance from local agriculture and livestock industry to the planned location of the MBT plant is another advantage for the utilization of bio-rest.

sions from the transportation to the MBT plant at Leknes.

198 Energy Systems and Environment

million tons, and this will lead to 305,000 tons CO<sup>2</sup>

**Animal Amounts(1) Individual methane emission factor (ton/animal/**

Cow (milk) 830 0.018 14.9 Cow (meat) 2100 0.0027 5.67 Hen 2600 0.0009 2.34 Pig 80 0.0071 0.568 Sheep 6800 0.0002 1.36 Goat 975 0.00012 0.117 Horse 69 0.00295 0.204 Sum 25.2

**year)(2)**

(1)Data provided from Farmer's Interest Organization, Lofoten region.

(2)Basic data from statistical yearbook of Norway [52].

**Table 4.** Emissions of methane from stored animal's manure.

emis-



**Total emission of methane** 

**(ton/year)**

**Table 5** presents the annual generation of biodegradable waste at different municipalities in Nordland County, and the distance from each municipality to Leknes is also given in this table. As shown in the table, transportation of small amount of biodegradable waste over long distance is necessary when the MBT plant is located at Leknes, and this will lose the advantage of economy of scale and increase GHG emissions. However, it is also the situation in today's waste management system. For example, the biodegradable waste collected at Narvik municipality travels 178 km to Kiruna for incineration. Compared with today's situation, only the transportation of biodegradable waste from Narvik and Bodø to Leknes will increase GHG emissions. **Table 6** illustrates the estimation of CO<sup>2</sup> emissions from the transportation of biodegradable waste to Leknes. The estimated CO<sup>2</sup> emissions are calculated based on the information provided by the waste management companies, which include the monthly generation of biodegradable waste in each community and the unit fuel consumption of waste collection and further distribution. Compared with the current waste management system, the CO<sup>2</sup> emissions of biomass and biodegradable waste transportation of the planned bioenergy production system will be increased by 19.3%.

Although it is difficult to formulate the complete value-added process of bioenergy production, we can still see a large potential of a sustainable solution for both energy production and waste management in Northern Norway. However, decisions must be made based on the consideration and justification of both benefits and challenges, and the interests of different stakeholders within the value chain of bioenergy production should also be taken into account. **Table 7** summarizes the opportunities and challenges of bioenergy production in Nordland County. As shown in the table, bioenergy production from biomass and biodegradable waste will deliver a great amount of biofuels and fertilizer to the market; besides, it will decrease GHG emissions as well as other environmental impacts from local agriculture, livestock industry and waste management. However, the costs and CO<sup>2</sup> emissions of the transportation in the overall bioenergy production network will be increased, and the operating costs of the MBT plant are higher in the cold regions due to more energy consumption for maintaining a constant temperature for anaerobic digestion. Further, there are uncertainties about the potential markets for biofuels and fertilizer, and the cost and CO<sup>2</sup> emission will be increased for the transportation of them to potential markets.

In order to resolve those challenges, policy support must be first formulated accordingly by the government so that the value added through the bioenergy production can be shared by all the stakeholders within the value chain. For example, governmental incentives or tax relief


public transport sector in Southern Norway is also applicable for Nordland County, and the upgrade of buses for using biofuels should be subsidized by the local government. Further, the incentives or lower purchase price should also be given to the agriculture and pasture grass production in order to promote the local use of bio-fertilizer, which will tremendously decrease the cost and GHG emissions for delivering the bio-fertilizer to remote markets.

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During the past decades, the concerns of the depletion of fossil fuels and global warming caused by excess GHG emissions have become the most important driving force for the development and utilization of renewable energy resources. The successful experiences from the EU-28 have proved that bioenergy production from biomass and biodegradable waste is the most reliable and promising solution in today's renewable energy market. This chapter studies bioenergy production from the perspective of value chain analysis. The method of value chain analysis has been developed for over three decades and extensively applied in analysing the value-added process of many different industries. In this chapter, a theoretical architecture for value chain analysis of bioenergy production from biomass and biodegradable waste is first formulated for streamlining the value-added activities in the bioenergy production network. In order to give a deep insight of the developed value chain model, we investigated the current situation of bioenergy production in Norway and compared that with other Nordic countries. The feasibility study for establishing a bioenergy production plant in Nordland County, which is located in the northern part of Norway, is also performed.

The value chain analysis of bioenergy production from biomass and biodegradable waste in Nordland County estimates both the potential amount of bioenergy output and the environmental impact, and suggestions for overcoming the challenges of bioenergy production are also given in this section. In order to better achieve the value-added process in bioenergy production in Nordland County, future studies are suggested from three aspects. First, information from other local industries should be investigated so that a complete value chain of bioenergy production can be formulated. Second, forestry residues are very important feedstock for bioenergy production in other places; however, it is not included in current plan for bioenergy production. Thus, further studies with inclusion of forestry waste as the feedstock of the MBT plant at Leknes should be carried out. Third, decision support tools for optimal design of integrated network for biodegradable waste transportation should be developed in order to balance both transportation costs and GHG emissions in an

This project is supported by the Norwegian Research Council/VRI-Nordland (Commitment 2012-0446) under strategy to promote renewable energy production in Nordland County. The article processing charge is financially supported by the Open Access Fund from UiT—The

**5. Conclusion**

optimal manner.

**Acknowledgements**

Arctic University of Norway.

(1)Including the biodegradable waste from slaughterhouse.

(2)Data given by relevant waste management companies.

(3)Calculated on Google map.

(4)Including ferry boat transport.

**Table 5.** Generation of biodegradable waste in Nordland County.


(1)Calculated based upon Energilink [67].

**Table 6.** Estimated fuel consumption and CO<sup>2</sup> emissions from the transportation.


**Table 7.** Opportunities and challenges of bioenergy production in Nordland County.

should be given to HRS and IRIS to compensate their increased transportation cost to deliver the biodegradable waste to Leknes, and this may also be achieved through implementing a lower entrance fee of the MBT plant. Besides, the successful example of using biofuels in the public transport sector in Southern Norway is also applicable for Nordland County, and the upgrade of buses for using biofuels should be subsidized by the local government. Further, the incentives or lower purchase price should also be given to the agriculture and pasture grass production in order to promote the local use of bio-fertilizer, which will tremendously decrease the cost and GHG emissions for delivering the bio-fertilizer to remote markets.
