Risk management and instruments for new Swedish biorefineries
|Coordinator||SVENSKA BIOENERGIFÖRENINGENS SERVICE AKTIEBOLAG - Svenska Bioenergiföreningens Service AB|
|Funding from Vinnova||SEK 855 508|
|Project duration||December 2018 - February 2020|
|Venture||Circular and biobased economy|
|Call||Policy and behavioral issues for a biobased circular economy|
Purpose and goal
The objective of this project is to identify and propose risk management in the decision and investment process and to propose instruments to facilitate new investments in Swedish industry, necessary to produce new Swedish biofuels. Two open workshops with a seminar part have been conducted within the framework of the project. Participation was broad with representatives from the research community, key decision-makers in industry, banks, financiers and organizations, as well as government and politicians.
Expected results and effects
The project has identified key factors in investment processes of companies and analyzed these risks, which can be managed with new complementary instruments: 1. Introduction of Contract for Difference: Ensures difference between market and product price. 2. Directed reduction obligation, based on raw material, creating demand. 3. Extended reduction obligation for fuels in aviation and shipping. Can be combined with above proposals. 4. Taxation on energy, not volume. Continued tax exemption for clean biofuels. If not possible, the increased Reduction obligation is discussed.
Planned approach and implementation
The project has used a network - BioDriv - within Svebio to clarify factors and risks in workshops and meetings with companies and key people through interviews. This has been done in order to realize the production potential for biofuels from Swedish forest raw materials. The analysis has included examining the risks that exist for investments and is associated with the essential factors. How can these risks be handled, eliminated, transferred, or monitored and by which actor. Since then, the path to introduction has been analyzed and discussed.