Woodfuel procurement strategies of district heating plants

A Roos, F Bohlin, B Hektor and B Hillring

Energy, 2003, vol. 28, issue 2, 127-140

Abstract: Woodfuel use in the Swedish district heating sector increased significantly from 1985 to 1999. This study analysed strategies and considerations concerning woodfuel procurement in district heating plants. Priorities and concerns in the industry involved an increased woodfuel share, ambitions to create an environmental image, cost minimisation, awareness about the role of energy policies for fuel choice, improvement of woodfuel quality and the ambition to maintain a competitive woodfuel market with several suppliers. Factor analysis yielded five dimensions in the woodfuel procurement strategies among the district heating companies: (1) increased woodfuel use; (2) import; (3) spot market woodfuel purchases; (4) focus on refined woodfuels; and (5) using price only when deciding whether to use woodfuels or other fuels. Five clusters were defined along the three strategy dimensions (1)–(3). The clusters differed concerning size, experiences from the introduction of woodfuels, perceptions about woodfuels and strategies employed to date. This paper describes different strategies that the district heating companies apply on the woodfuel market. The conclusion is that policies should consider this diversity in procurement strategies, mitigate their negative side-effects and assist to make them cost-effective.

Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:28:y:2003:i:2:p:127-140

DOI: 10.1016/S0360-5442(02)00108-1

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