Proceedings World Bioenergy 2010

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increased cost pressures on the total supply chain costs of forest chips. In the future, the management of supply costs in all phases of the logistics chain will hold vital positions [12]. The individual parts of the supply chains should work more efficiently (e.g. utilize the most efficient working methods, adoption of the most suitable production technology, maximization of loads in forest haulage and road transportation) and especially, increase integration between supply chains (e.g. minimization of waiting and terminal times). Moreover, quality management of chips (i.e. moisture content in the case of logging residues, and impurities with stumps) has to be increased to a suitable level than it is presently. Kärhä [12] estimated that chipping will move from roadside locations closer to the heating and power plants, partly to terminals, and partly directly to the plants. This will undoubtedly prove to be the case as, in approximate terms, the closer to the plant chipping is performed, the more cost-efficient it is. Differences will, nevertheless, remain between forest chip suppliers regarding the volumes of forest chips produced in terminals and at the plant. As the volumes of road transportation of uncomminuted raw materials for forest chips will greatly increase in the future, more efficient long-distance transportation solutions are required. The status of the terminals will also become more important. REFERENCES [1] Ylitalo, E. 2009. Puun energiakäyttö 2008. (Use of wood for energy generation in 2008). Finnish Forest Research Institute, Forest Statistical Bulletin 15/2009. [2] Ylitalo, E. 2009. Use of forest chips by heating and power plants in Finland in 2008. Finnish Forest Research Institute, Unpublished statistics. [3] Kärhä, K. 2008. Metsähakkeen tuotantoprosessikuvaukset. (Flowcharts of supply systems for forest chip production in Finland). Metsäteho Tuloskalvosarja 3/2008. Available at: http://www.metsateho.fi/uploads/Tuloskalvosarja_2008_ 03_Metsahakkeen_tuotantoprosessi_kk_3.pdf. [4] Kärhä, K. 2005. Hakkuutähteiden korjuu päätehakkuualoilta. (Harvesting of logging residues from final cutting stands). In: Kariniemi, A. (Ed.). Kehittyvä puuhuolto 2005 – Seminaari metsäammattilaisille, 16.– 17.2.2005, Paviljonki, Jyväskylä. Seminaarijulkaisu. p. 68–75. [5] Kärhä, K. 2005. Tienvarsihaketuksella yleisimmin metsähaketta. (Forest chips most commonly with roadside chipping). BioEnergia Magazine 2/2005: 4–5. [6] Kärhä, K. 2006. Metsähakkeen tuotantoketjut Suomessa vuonna 2005. (Industrial supply chains of forest chips in Finland in 2005). Metsäteho Tuloskalvosarja 6/2006. Available at: http://www.metsateho.fi/uploads/Tuloskalvosarja_357_m etsahakkeen_tuotantoketjut_2005.pdf. [7] Kärhä, K. 2007. Metsähakkeen tuotantoketjut 2006 ja metsähakkeen tuotannon visiot. (Industrial supply chains of forest chips in 2006 and the visions of forest chip 68 world bioenergy 2010 production). Metsäteho Tuloskalvosarja 5/2007. Available at: http://www.metsateho.fi/uploads/Tuloskalvosarja_2007_ 05_Metsahakkeet_kk.pdf. [8] Kärhä, K. 2008. Metsähakkeen tuotantoketjut Suomessa vuonna 2007. (Industrial supply chains of forest chips in Finland in 2007). Metsäteho Tuloskalvosarja 4/2008. Available at: http://www.metsateho.fi/uploads/Tuloskalvosarja_2008_ 04_Metsähakkeen_tuotantoketjut_kk_1.pdf. [9] Kärhä, K. 2007. Machinery for forest chip production in Finland in 2007. Metsäteho Tuloskalvosarja 14/2007. Available at: http://www.metsateho.fi/uploads/Tuloskalvosarja_2007_ 14_forest_chips_machinery_kk_1.pdf. [10] Kärhä, K. 2007. Production machinery for forest chips in Finland in 2007 and in the future. Metsäteho Review 28. Available at: http://www.metsateho.fi/uploads/Katsaus_28.pdf. [11] Kärhä, K. 2006. Whole-tree harvesting in young stands in Finland. Forestry Studies 45: 118–134. [12] Kärhä, K. 2007. Supply Chains and Machinery in the Production of Forest Chips in Finland. In: Savolainen, M. (Ed.). Book of Proceedings. Bioenergy 2007, 3 rd International Bioenergy Conference and Exhibition, 3 rd – 6 th September 2007, Jyväskylä Paviljonki, Finland. Finbio Publications 36: 367–374. [13] Anon. 1999. Finland’s National Forest Programme 2010. Ministry of Agriculture and Forestry, Publications 2/1999. [14] Anon. 2003. Uusiutuvan energian edistämisohjelma 2003–2006. Työryhmän ehdotus. (A programme to promote renewable energy 2003–2006. Proposal of working group). Ministry of Trade and Industry, Working group and committee papers 5/2003. Available at: http://julkaisurekisteri.ktm.fi/ktm_jur/ktmjur.nsf/all/4B1 BDE137F9B5121C2256CE5002B3AC1/$file/tyto5eos.p df. [15] Anon. 2008. Long-term Climate and Energy Strategy. Government Report to Parliament 6 November 2008. Publications of the Ministry of Employment and the Economy, Energy and climate 36/2008. Available at: http://www.tem.fi/files/21079/TEMjul_36_2008_energia _ja_ilmasto.pdf.
INSTRUCTIONS FOR PREPARATION OF PAPERS THE ECONOMIC, POLITICAL AND SOCIAL ISSUES, HINDERING THE ADOPTION OF BIOENERGY IN PAKISTAN: A CASE STUDY Umair Usman UCH Moonoo Chowk, Raiwind/Defence Road E. Lahore, Pakistan Umair@uch.com.pk, Tel: 92-42-5321636, Fax: 92-42-5321638 ABSTRACT: The paper will inform the audience about the energy crisis that has crippled Pakistan’s economic growth since the last 4 years, and the role that Bioenergy can play in resolving the issue. In order to help ease Pakistan in its effort to curb this crisis and to get useful insights into the role that Bioenergy can play in solving Pakistan’s problems, business ventures were attempted. The results were not encouraging and shed light onto the financial and technical hindrances involved in creating and running bioenergy businesses in Pakistan. These issues themselves linked to the more general Social, Economic and Political barriers for the adoption of Bioenergy. The paper concludes by providing suggestions and recommendations, as to what the government, private sector as well as the international community can do in order to overcome the crisis. Keywords: Bio energy Policy, Biogas, Bio-ethanol, Third World, Pakistan 1 INTRODUCTION Energy is considered to be the life line of any economy. It is significant determinant of socioeconomic development and is therefore one of the most important strategic commodities [26]. Traditional growth theories focus on the labour, capital and technology as major factors of production and ignore the importance of energy in the economic growth process [16]. In the era of globalization, even though dependence of economies on energy and its demand is rapidly increasing, the supply of it remains uncertain. Therefore energy shortage will be one of the biggest problems facing mankind in the next century [16]. One such country which is already facing an energy crisis is Pakistan. Energy plays an important role as compared to other variables included in the production and consumption function for Pakistan, as it is in an early stage of development [10]. Already Pakistan’s economy has been under constant stress due to is energy crisis [7], leading to a sharp decrease in its economic growth rate. In order to study the role that Bioenergy can play in overcoming the energy crisis, two business ventures were attempted i.e. selling Biogas plants and Bio-ethanol. Biomass seemed like a logical alternative energy solution due to the country’s large agricultural base. However both businesses failed at different stages of development due to several micro and macro factors. Reflecting on these failures, new business models are discussed that can help create a formal Biomass industry. However before details of the ventures are looked into, it is imperative that Pakistan’s energy profile is studied first, in order to better understand its needs. . 2 PAKISTAN’S ENERGY PROFILE 2.1 Country profile Pakistan is a middle income economy, with an estimated population of around 170 million, among the highest in the world. It is the founding member of SAARC, G-8 and the OIC. Not only is it a major military and nuclear power, but South Asia’s second largest economy and a front line state on the war in terror. It has sustained excellent growth record in the past decade thanks to liberalization, and an opening up of the economy. Due to economic growth that took place in in the first half of the 2000s, the GDP of Pakistan doubled between 1999 and 2007. The growth in GDP was even higher than the population growth and therefore GDP per capita increased by almost sixty percent between 2000 and 2008. Recognizing Pakistan’s economic growth, Goldman Sachs now considers Pakistan to be among the ‘Next Eleven Countries’ i.e. nations that are likely to become sizable economic powers and have greater impact on global business in the new century [34]. As Pakistan’s agriculture, industry, trade and services sectors have been growing rapidly, the government has remained negligent to the surge in energy demand, leading to a massive shortfall in energy, which is only expected to widen [26]. One of the key strategic objectives of the Musharraf era was to turn Pakistan into an energy corridor, connecting Central Asia (China and the oil producing countries) to the rest of the world (14; 13; 26). However Pakistan itself is now facing a major energy crisis. To look into this crisis in detail, it is imperative to look at Pakistan’s energy profile in order to better understand the supply and demand of different sources. 2.2 Energy Profile: world bioenergy 2010 69
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MaIN spONsOR: WORLD BIOENERGY 2010
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