Estimating GHG emission mitigation supply curves of large-scale biomass use on a country level

This study evaluates the possible influences of a large-scale introduction of biomass material and energy systems and their market volumes on land, material and energy market prices and their feedback to greenhouse gas (GHG) emission mitigation costs. GHG emission mitigation supply curves for large-scale biomass use were compiled using a methodology that combines a bottom-up analysis of biomass applications, biomass cost supply curves and market prices of land, biornaterials and bioenergy carriers. These market prices depend on the scale of biomass use and the market volume of materials and energy carriers and were estimated using own-price elasticities of demand. The methodology was demonstrated for a case study of Poland in the year 2015 applying different scenarios on economic development and trade in Europe. For the key technologies considered, i.e. medium density fibreboard, poly lactic acid, electricity and methanol production, GHG emission mitigation costs increase strongly with the scale of biomass production. Large-scale introduction of biomass use decreases the GHG emission reduction potential at costs below 50EURO/Mg CO2eq with about 13-70% depending on the scenario. Biomaterial production accounts for only a small part of this GHG emission reduction potential due to relatively small material markets and the subsequent strong decrease of biomaterial market prices at large scale of production. GHG emission mitigation costs depend strongly on biomass supply curves, own-price elasticity of land and market volumes of bioenergy carriers. The analysis shows that these influences should be taken into account for developing biomass implementations strategies. (c) 2006 Elsevier Ltd. All rights reserved.