Symposium Climate Protectionand Regional Development
Botschaft der Bundesrepublik Deutschland
Deutsches Institut für Japanstudien
Waseda University
2. November 2016
ティーロ・シュミットセール
Dr. Tilo Schmid-Sehl

Agenda1. Satoyama in Japan and Germany: Problems(Opportunities???)2. Regional value creation
3. Key Success Factors
4. Conclusion

Aligning Organizations Across Borders

Experienced Operational Implementation

Commitment & Responsibility

2Problems with Japanese Satoyama
Snow isolates
villages andheating costs rise•••••••Low childbirth, aging & declining population
Limited scale of agriculture, low efficiency
Declining forestry (market price, labor)
High energy costs
Stagnating or declining economy
Bad investment climate
Untapped farming and forestry resources

Bark sits unused
despite it being able tofetch 40 yen + tax / kW

Wood drying has
high energy andcost needs

3German Satoyama Issues• German villages had mostly the same issues: But some use
this as an opportunity for change• German villages are even smaller than in Japan• Farmers and villages took the lead in taking advantage of thenew renewable energy support laws and funds to revivevillage economy• German bioenergy revolution was led by farmers and forestrypeople• Business planning and economics went beyond energy
production – more holistic including employment, creating
and promoting related industries and education opportunities
to bring young people back to the village (exampleRettenbach)4

Farmers, former farmers, and villagers help operate a methane fermentation plant providing community heat 5

Heat is also used for barn heating, chip drying, and byproducts cycled into farming as fertilizer

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The farmer-led bioenergy revolution does not only depend on selling electricity, but helps initiate new business.7

Avoid negative impact of current biomass usage…
MethaneWater

Greenhouse Gases（20x impact vs. CO2）

Nutrients

Energy / Waste
CO2Water
Loss
CarbonCarbon Balance Issues

Nutrients

EnergyLimited Efficiency

Conventional Methods

Conventional Methods

CompostCombustion

Cheap, Known

Cheap, but less efficiency and added value

Food Waste

Organic Waste (proteins)

ManureForest Resources

Lignocellulose8

… and use farming and forestry resources effectively• Gasification of Wood and BioCokes• Biocokes from HydroThermal Carbonisation (HTC)= Reverse Photosyntesis• Energize the BioWaste (Biotonne, Green Cut etc.)• Biodiesel/Ethanol• Methane fermentation• Bioplastics
Reduction of Greenhouse gases by energy conversion of biological materials

9Strategic heat use is crucial for profitability and also making real results – community heat from renewables is key.
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Agenda1. Satoyama in Japan and Germany: Problems(Opportunities???)2. Regional value creation
3. Key Success Factors
4. Conclusion

Aligning Organizations Across Borders

Experienced Operational Implementation

Commitment & Responsibility

11Renewable Energy Revenues – Biomass a bigfactor !!!

• 67% of revenues
and 64% of Prime
Energy Production
is biomass energy• Farmers andforesters benefit
most of theenergetic use ofbiomass resources

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Biomass – Value Added, at the end cheaper than oil• Value of woody materials per ton:
– Freshly cut wood log (long):– Freshly cut wood log (short):– Dried wood log (short):– Wood chips (dried):– Wood pellets:

6.300 Yen (solid cubic meter)
10.000 Yen (solid cubic meter)
14.000 Yen (stacked cubic meter)
23.000 Yen (stacked cubic meter)
32.000 Yen (lose cubic meter)• 1kWh of oil energy costs appr. 8 Yen and 1 KWh of biomass energy costs based onwood chip* 19 Yen (full cost base) oil:wood =1 : 2,375 times *300kg per stacked meter• Local value added: Wood Chips dried vs. Freshly cut wood = 23.000 Yen – 6.300 Yen= 16.700 Yen per stacked cubic meter =14 Yen per kWh• Net Cost:
Oil 8 Yen per kWh vs. wood chips (19 Yen-14 Yen = 5 Yen)
oil:wood = 1 : 0,55 times *300kg per stacked meter)

Based on RenEn calculation

Including local value added wood chip utilization for energy production
is cheaper than oil

Growing number of BioEnergy Villages
185 BioEnergy Villages• Often produce morethan 100% of their own
energy need
• Are community driven• Local Resources• Private households
take responsibilty toproduce, to sell and touse energy• Revive local pride• Offer additional local
job opportunities
Quelle: FNR 201614

St. Peter - BioEnergy Village in Black Forrest•••

Power Consumption: 7 Mio kWh/aPower Production: 21 Mio kWh/a

A mix of Renewables to produce heat and power

Heat Consumption: 12.000 MWh/aHeat Production: 9.600 MWh/a•••••Energy association has 230 members
20 farmers supply biomass
Own forestry used

Photovoltaik (1.18 Mio. kWh/a power)
Solar Thermal (40.000 kWh/a heat)
Hydro Power (400.000kWh/a power)
Wind Power (18,4 Mio. kWh/a power)
Biomass– Wood Chip Boiler (7.500 kWh/a heat)– Pellet CHP(2.100 MWh/a heat, 1.400 Mio. kWh/a power)

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Citizens participate in Community PowerWind Energy•

First Wind Energy Generators were built
by a farmer (Mr. Weber)• Other Wind Farm was built by citizen
participation

Bürger Energie St. Peter eG (eingetrageneGenossenschaft)
BioMass Boiler and CHP-Est. in 2009 by 11 citizens (e.g. forester,farmer, banker)
80 interested citizens, today appr. 250 members
220 House connection (80% of village center)
Honorary Board, Mayor is Chairman
16Rettenbach: ‚Leadership‘ as Community PowerBefore:•••

Shrinking population
Young people leave
Shrinking EconomyToday:••••

Farmer Fischer (later mayor) started
solar energy and biomass•••

Farmer Fischer was the first to build PV
Others followed
Rettenbach became many times German
Champion for Solar Energy

Increasing population, youngfamilies move to Rettenbach
New companies (e.g. forestmachinery
Own Community Center
New Pride in the Community

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Forestry can give rise to forestry related industry and education – an industry that one can take pride in.

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Triesdorf/Merkendorf: Village and Farming
School towards energy autonomy
BioMass Energy forHeat Production
Near Heating Networkfor University ofAgriculture(Triesdorf)BioMass Energy forPower Production(Merkendorf)
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Distributed sources and aggregated management:
Realizing a Carbon Cycle
Agricultural
Waste

Forestry, WoodMills, etc.

Decentralized
Sewerage

Manure,methane sludge
Bark, branches, etc.

Sewerage sludge

Efficiently making use of what was once discarded

Utilization of Wet Organic Feedstock
Energy for
Local Industry

Fermentation Gas
Gas engine, CHP
Waste Sludge
Fuel
HTC
Reactor

Biogas Trains

Biocokes

Gasification

Biogas Bus, etc.
ThermalPower
Wood Chips, Pellets

BoilerHeat &Electricity

Heat and Electricity to thelocal community &Employment and Innovation

Realizing the Resource Cycle with HTC: Biocokes for Fuel and Process Water

HTC-produced Biocokes
Organic Resources Available in the Community“Unwanted” Feedstock to high-calorie Fuel
2600~6000kCal / 15-30MJ achievable**

Rice husks and otheragricultural waste
Sewerage andfermentation sludge

３時間から６時間で完成

Adjust mix to makewater content
between50-70%

ManureWater content 15% after production steps
Brown coal-like consistency and can be used asfeedstock inwood gasifying systems**Wood Bark
Process water purposed forhydroculture or liquidfertilizers

Roots, Branches, etc.
（D・E wood also 40¥/kWh）*Chicken manure, wood can increase revenue and calories**Tested with GRENOL and AHT gasifiers© Grenol 2016

Agenda1. Satoyama in Japan and Germany: Problems(Opportunities???)2. Regional value creation
3. Key Success Factors
4. Conclusion

Aligning Organizations Across Borders

Experienced Operational Implementation

Commitment & Responsibility

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Key to Success• Existing of unused biomass resources• Strong will and leadership of individuals• Support from local government and councils• Identification of and collaboration with diverse
stakeholders (local government, forestry and farming
individ., non-profits, etc.)• Local development aid and funds• Effective heat production and use, including options
for heat exchange (providing cooling)• Joint planning with and employment of young people
from in and outside the region
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Agenda1. Satoyama in Japan and Germany: Problems(Opportunities???)2. Regional value creation
3. Key Success Factors
4. Conclusion

Aligning Organizations Across Borders

Experienced Operational Implementation

Commitment & Responsibility

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Conclusion:BioEnergy is a great contributor to regional developmentIt is:• Sustainable (nearly unlimited)• Economical (new income, labour, investment)• Social (community based, collaborative)• Democratic (decentral)
It provides a great opportunity to support and revive economic(re-)development of rural areas
Rural Economies can lead the energy revolution (!!!)
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From Linear, Recycling, to a Circular Economy
Circular Bioeconomy

Linear Economy
Semi-Circular Economy
Resources
Resources
Production

Agriculture

RecycleWasted energy,
heat, GHG
emissions,
Consumption
publicfunds

CO2NeutralWaste

Municipal Waste

Landfill

Incineration,
HTC
ThermalpowerMunicipalities
Local Capital
Local Benefit

Source: MAFF White Paper 2010

Potential Biomass (Wood):
Win-Win for Environmental and Social Infrastructure

Typical Japanese Mountain with Forest

A Comparison:
Germany
32% forested
growing stock: 3.4 bill. m³
But:Forestry has been neglected for 50 years in Japan
Low use of Biomass Energy
Forestry and Biomass Energy creates great benefits
Environment

EmploymentGDP

Aligning Organizations Across Borders

Japan> 60% forested
growing stock: 6 bill. m³• Need to develop the Forest Sector(aging forests)• Great Job Opportunities• Strengthen Rural Infrastructure and Economy

Experienced Operational Implementation

Commitment & Responsibility

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BioEnergy Village – A model case of Federal Ministry ofFood and Agriculture (20 years)• Village with 450 people• 150 houses• 450 MWh power
consumption• 4,5 Mio kWh heatconsumption––––

Investment of 14 Mio. Euro
Savings/Income 27 Mio. Euro
Additional cost 10 Mio. Euro
Regional Value Added 10. Mioeuro29

Conclusion• Limitation of bioenergy is not feedstock or cost
• The true limitation is when the potential of local biomass
resources do not match project design and objectives• Scale of project key to sustainability• Sustainable projects can circulate resources and matches
the potential and needs of local communities such as
employment and energy needs• Key to success is understanding local needs and holisticplanning by identifying all potentials and chances (includingnon-energy)• Now time also to look into innovation and new technology
to spur change and economic activity
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