Bioenergy production chain development in the Netherlands : key factors for success

Development of bioenergy production in the Netherlands is lagging. This paper presents an inventory of problems met by new bioenergy chains and compares these to literature and to other countries. Theoretical frameworks suggest that five elements are crucial for successful bioenergy chain development: (i) availability of (proven) technology; (ii) access to information; (iii) access to feedstocks, financial means, and markets; (iv) locations for new installations; and (v) efficient lobby activities and public support. Nine bioenergy chains were interviewed. Problems that are reported relate to insufficient knowledge of new technological concepts, and of nuisances (noise, emission, odor, and other) caused during bioenergy production. Feedstock markets (wood, byproducts, waste) and product markets (heat, CO2) are underdeveloped, while some chains are experiencing extra problems finding a suitable location or obtaining necessary permits. Problems related to insufficient public support are most relevant for bioenergy chains depending on tax exemptions (pure vegetation oil transportation fuels) or requiring adaptation of legislation (location permits for farm fermenters). An international comparison to barriers for biofuel suggests that economic factors (including lack of capital), limitations in know-how and institutional capacities, underdeveloped biomass and carbon markets, problems in chain coordination, and limited public support are largest problems for new bioenergy chains. Recommendations to stimulate bioenergy production in the Netherlands refer to performance standards for new installation types, information on feedstock availability, protocols for heat exchange and on improved credit facilities.