Seen & heard at Svebio’s Fuel Market Day
On September 30, 2024, Svebio held its 7th annual Fuel Market Day at the Royal Swedish Academy of Engineering Sciences (IVA) conference venue hall in central Stockholm. A total of 110 participants attended the conference, including approximately 20 online delegates - an all-time high for the one-day event.
The focus was on the latest developments in the solid biofuel markets, characterized by higher prices and uncertainties on feedstock availability. Speakers from various companies and organizations provided a broad range of perspectives, spurring initiated discussions in panels and during the networking breaks.
Market players actors from Sweden and the neighbouring countries around the Baltic Sea, colleagues from Bioenergy Europe, and Argus Media provided expert insights on the current market situation, price developments, and forecasts.
A general view expressed during the conference was that the market is incused by volatility and fast-changing conditions, both for buyers and users, a lot stemming from the war in Ukraine. A polling app (Mentimeter) used by delegates at intervals throughout the day indicated that increased competition for biomass from other sectors is a potential hurdle to the future affordability of solid biomass.
Other fears expressed, both in the polling app and orally, were several EU legislative files – Renewable Energy Directive (REDIII), Nature Restauration Law, Land Use Land Use Change and Forestry (LULUCF), and especially the EU Deforestation Regulation (EUDR), and its implementation.
Indeed, several speakers highlighted the challenges of new and forthcoming EUDR, and the challenges surrounding its implementation. The proposal by the European Commission to postpone the implementation of EUDR that came later in the week, which has been advocated by Svebio and very much welcomed, confirmed the timeliness of the conference.
During the conference, there was also a strong focus on the future demand for biomass, for fuel, and as feedstock for other industries. Delegates learned more about the status of bioenergy with carbon capture and storage (BECCS) in the region. BECCS is gaining a lot of attention in Sweden, not least since the European Commission’s approval of the Swedish State Aid scheme (€ 3 billion) some weeks ago, and the subsequent opening of a reverse auction call by the Swedish Energy Agency at the beginning of September.
Despite a challenging current market situation, it was noticeable that participants at the conference held a positive long-term view of the potential of solid biofuels. There was also a consensus on the importance of continuing advocacy to promote the multiple bottom-line benefits to decision-makers and society to win back confidence in bioenergy as a key enabler of the energy transition and fossil substitution.
Svebio knows that the bioenergy sector has the potential to keep growing well beyond its current 40 percent share of Sweden’s energy consumption. However, realizing this growth will require building strong, long-term relationships between producers and consumers – and advocacy. Svebio is proud to provide opportunities such as the annual Fuel Market Day, for these relationships to continue to develop, and we are happy to hear your suggestions regarding next year’s Fuel Market Day topics.