Biofuel in Sweden

Biofuels are renewable fuels that are produced by living organisms (biomass). Biofuels can be solid, gaseous or liquid, which comes in two forms: ethanol and biodiesel and often replace fossil fuels. Many countries now use biofuels as energy sources, including Sweden. Sweden has one of the highest usages of biofuel in all of Europe, at 32%, primarily due to the widespread commitment to E85, bioheating and bioelectricity. Sweden's energy usage is divided into three sectors: housing and services, industry, and transport and is used in three different ways: to produce heating, electricity and vehicle fuels. In 2014 Sweden has used 555 TWh of energy, 130 of which came from biofuels. Increased biofuel usage is the main reason why Sweden has managed to decrease greenhouse gas emissions by 25% between 1990 and 2014. Biofuel usage in Sweden has been increasing since 1970, growing from around 43 TWh in 1970 to 127 TWh in 2009. This increase is usually linked to the heavy expansion of biomass based district heating in 1980s. The oil crisis between 1973 and 1979 has stimulated the transition from oil to other energy sources such as peat and biomass. Swedish government created financial incentives for transitioning from fossil fuels to biofuels. Simultaneously the wood related industries were growing, using increasing amounts of wood as fuel and providing black liquor to the industry as bi-product. Finally, taxation of other energy sources, has contributed to the increase of biofuel usage, as taxes on fossil fuels have increased since 1990. One of the examples is carbon dioxide tax, introduced in 1991, as a measure to reduce Sweden's environmental impact. Same year a three party agreement was signed to invest 950 million Swedish Krona in bioheat facilities. The forestry sector, which uses various forms of wood, makes up 90% of the biomass in Sweden. This includes parts of trees that cannot be used for timber or paper production. Recycled wood is considered biofuel too. The other 10% of biomass comes from waste, industry bi-products, biogas and farmable fuels.

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