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3. However, the available biomass resource in most EU countries is limited and ways should be sought to maximise it. EU-wide R & D should aim at designing plants optimised for energy use, looking for a better trade-off between high yield, fertiliser requirements and limited environmental impact. It should also encourage a few local communities to demonstrate, with currently available technology, the complete biomass supply chain in action. 4. Converting biomass to liquid (BTL) fuels is potentially very important for two reasons. It offers not only the prospect of retaining liquid chemical fuels for transport without increasing atmospheric CO2 but also the possibility of a global trade in biomass-derived liquids, not really possible with solid biomass itself. Because of this potential of BTL to provide liquid fuels indigenously or from a wide range of external sources, AGE believes that EU– wide R & D is important, in particular trying to find biological processes for converting the ligno-cellulose parts of woody plants to liquids. The alternative approach of using chemical or biological processes to separate liquefiable sugars and starches from solid lignin, which can then used as a solid fuel, also needs pursuing. R & D on optimising the design and operation of conventional BTL plant for the different biomass feedstock which might become available in or to the EU would also be useful, in order that the conversion technology and costs of BTL fuels might be reduced or at least become less uncertain. (B) Market situation and potential 5. In the EU 15, wood fuel has long since been overtaken by coal, oil and gas. Biomass now provides only about 5% of EU primary energy consumption, though it is still by a significant margin Western Europe’s most important renewable energy source. It is more important in some member states; in Portugal it provides more than 15% of primary energy, in Luxembourg, Finland and Sweden more than 20%. 6. The source of most biomass energy in the EU is still wood, burned for heat in households, district-heating plants and in industry and, primarily in Finland and Sweden, in generating plants for electricity production. However, there is a growing use as fuels of agricultural residues such as straw and of domestic, commercial and industrial solid wastes. These are commonly counted as biomass since all agricultural residues and a large fraction of solid commercial and domestic waste is organic in origin. Moreover, roughly sorting municipal wastes can provide a product stream which is largely biomass. Anerobic digestion is an attractive alternative to combustion for some wet agricultural and municipal wastes and is fairly well developed for use on farms, in the food and animal-feed industries and in landfill sites. 7. Even the use of wood as a fuel is often effectively waste combustion, using thinned-out young trees or wood residues from the timber and paper industries. This point is significant because collecting biomass fuel as part of some other essential activity (the disposal of municipal wastes) or a profitable one (the production of timber, wood products and paper) greatly improves the economics of its use and has enabled the biomass contribution to EU energy supply to remain at the 5% level without much subsidy. 8. Although the burning of wood or other biomass does release CO2 into the atmosphere it is generally accepted that biomass fuels are CO2 neutral and do not contribute to global warming. This is because, in properly managed forests in dynamic equilibrium, new biomass growth recaptures the same amount of CO2 as is released in its combustion. In the past, wood burning in simple stoves was wasteful of energy and led to large emissions 83PDF Image | Economic Perspectives of Renewable Energy Systems
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