The document describes examples of missions, visions and strategies based on the potentialpiloting models defined in report 3.2. It is based on status of interest amongst thestakeholders, and the information, figures and challenges which were discussed in the reportD 2.1 Stakeholder interests. The different service models will request different missionsdepending on the stakeholder in charge of the model. Also visions and strategies could bedifferent depending on the composition of services (core business) offered within each pilot aswell as the additional services offered by sub suppliers and the network connected to the pilot.In the report D2.1 Stakeholders interests, the following 5 different piloting models aresuggested:Type 1 Joint venture of industry, retailers and contractorsType 2 Joint venture of construction/renovation, industry and architect/engineering companiesType 3 Complementary businesses expand their business into renovationType 4 Joint venture of type house producer, bank and home owner associationType 5 Energy/building consultant, real estate agent and financing institutions, e.g. bankIn this report we have described mission, vision and market strategies for 4 existing orproposed models; The Project Manager by Bolig Enøk, from Norway (type 1), ENRA concept(type 2) and K-Rauta & Rautia (type 3) from Finland, and ProjectLavenergi (type 2) fromDenmark. Cleantech by Dong Energy (type 3) from Denmark is also addressed, but notdescribed in detail. As there is no concrete examples representing two of the models fromD2.1 (types 4 and 5), we have made a theoretical exercise in developing mission, vision andmarket strategies for type 5 model, while type 4 is not handled.It may be concluded that there are commercial actors in different parts of the value chainwhich see an opportunity in developing different approaches of “one stop shops” for energyefficient holistic renovations. The concepts are still in a development phase and differ inrespect to how they are organised (as supply side). We may say that the pilots in the differentcountries also find inspiration from each other through this research project. Due to thecomplexity of a holistic renovation project, it is a prerequisite with good partnerships even inthe development phase. In all identified models there is however one main actor taking thelead and ownership to the business model.Independent of the business model the responsible company needs to make some strategicchoices. The starting point is the SWOT analysis which sums up all major challenges for therespective business model. How the strategies should be developed is described in this report.Although the main target group for this report is companies seeing an interest in developingbusiness models for renovation, we found some important issues identified in the SWOTanalysis which the authorities may influence including lack of interest in the market (need ofmore public attention through holistic campaigns), fragmented solutions (stop subsidisingsingle measures without a holistic plan), serious vs unserious companies (need of certificationsystems to build credibility), cost focus leads to limited renovation (need of subventionschemes for holistic retrofitting including tax deduction measures) and finally lack incompetence within companies (need of support to training and collaboration acrosscompanies).

Extensive utilisation of logging residues, straw, and energy crops will lead to short transportation distances and thus low transportation costs. The average distance of transportation of biomass to a large-scale conversion slant. suitable for electricitv or methanol uroduction using 300 000 drv tonne biomass vearlv, will be about 30 km in Sweden, if the conversion plant is located at the centre of ihe biomass production area. The estimated Swedish biomass potential of 430 PJ/yr is based on production conditions around 2015, assuming that 30% of the available arable land is used for energy crop production. With present production conditions, resulting in a biomass potential of 220 PJ/yr, the transportation distance is about 42 km. The cost of transporting biomass 30-42 km will be equivalent to 20-25% of the total biomass cost. The total energy efficiency of biomass production and transportation will be 9597%, where the energy losses from transportation are about 20%. Biomass transportation will contribute less than 10% to the total NO,, CO, and HC emissions from biomass production, transportation, and conversion

In this study we analyze the life cycle primary energy use of a wood-frame apartment building designed to meet the current Swedish building code, the Swedish building code of 1994 or the passive house standard, and heated with district heat or electric resistance heating. The analysis includes the primary energy use during the production, operation and end-of-life phases. We find that an electric heated building built to the current building code has greater life cycle primary energy use relative to a district heated building, although the standard for electric heating is more stringent. Also, the primary energy use for an electric heated building constructed to meet the passive house standard is substantially higher than for a district heated building built to the Swedish building code of 1994. The primary energy for material production constitutes 5% of the primary energy for production and space heating and ventilation of an electric heated building built to meet the 1994 code. The share of production energy increases as the energy-efficiency standard of the building improves and when efficient energy supply is used, and reaches 30% for a district heated passive house. This study shows the significance of a life cycle primary energy perspective and the choice of heating system in reducing energy use in the built environment.

In this study we investigate the effects of post-use material management on the life cycle carbon balance of buildings, and compare the carbon balance of a concrete-frame building to that of a wood-frame building. The demolished concrete is either landfilled, or is crushed into aggregate followed by exposure to air for periods ranging from 4 months to 30 years to increase carbonation uptake of CO2. The demolished wood is assumed to be used for energy to replace fossil fuels. We calculate the carbon flows associated with fossil fuel used for material production, calcination emission from cement manufacture, carbonation of concrete during and after its service life, substitution of fossil fuels by recovered wood residues, recycling of steel, and fossil fuel used for post-use material management. We find that carbonation of crushed concrete results in significant uptake of CO2. However, the CO2 emission from fossil fuel used to crush the concrete significantly reduces the carbon benefits obtained from the increased carbonation due to crushing. Stockpiling crushed concrete for a longer time will increase the carbonation uptake, but may not be practical due to space constraints. Overall, the effect of carbonation of post-use concrete is small. The post-use energy recovery of wood and the recycling of reinforcing steel both give higher carbon benefit than the post-use carbonation. We conclude that carbonation of concrete in the post-use phase does not affect the validity of earlier studies reporting that wood-frame buildings have substantially lower carbon emission than concrete-frame buildings.

In this study we analyze the effect of thermal mass on space heating energy use and life cycle primary energy balances of a concrete- and a wood-frame building. The analysis includes primary energy use during the production, operation and end-of-life phases. Based on hourby- hour dynamic modeling of heat flows in building mass configurations we calculate the energy saving benefits of thermal mass during the operation phase of the buildings. Our results indicate that the energy savings due to thermal mass is small and varies with the climatic location and energy efficiency levels of the buildings. A concrete-frame building has slightly lower space heating demand than a wood-frame alternative, due to the benefit of thermal mass inherent in concrete-based materials. Still, a wood-frame building has a lower life cycle primary energy balance than a concrete-frame alternative. This is due primarily to the lower production primary energy use and greater bioenergy recovery benefits of the wood-frame buildings. These advantages outweigh the energy saving benefits of thermal mass. We conclude that the influence of thermal mass on space heating energy use for buildings located in Nordic climate is small and that wood-frame buildings with CHP-based district heating would be an effective means of reducing primary energy use in the built environment.

The energy flows associated with the materials comprising a building can be a significant part of the total energy used in a building's life cycle. Buildings have finite life spans, and the materials from demolished buildings can be either a burden that must be disposed, or a resource that can be used. In this paper we analyse the end-of-life energy impacts of concrete, steel and wood. End-of-life options considered include reuse; recycling; downcycling; energy recovery; and disposal in landfill. We follow the life cycles of the building materials from the acquisition of natural resources through to the end of the product's life cycle. We identify possibilities and constraints for integrating more effective end-of-life material processing options into existing industrial systems.

Here we analyze the life cycle primary energy implication of retrofitting a four-storey wood-frame apartment building to the energy use of a passive house. The initial building has an annual final energy use of 110 kWh/m(2) for space and tap water heating. We model improved thermal envelope insulation, ventilation heat recovery, and efficient hot water taps. We follow the building life cycle to analyze the primary energy reduction achieved by the retrofitting, considering different energy supply systems. Significantly greater life cycle primary energy reduction is achieved when an electric resistance heated building is retrofitted than when a district heated building is retrofitted. The primary energy use for material production increases when the operating energy is reduced but this increase is more than offset by greater primary energy reduction during the operation phase of the building, resulting in significant life cycle primary energy savings. Still, the type of heat supply system has greater impact on primary energy use than the final heat reduction measures.

In this study, we analyze the impact of ventilation heat recovery (VHR) on the operation primary energy use in residential buildings. We calculate the operation primary energy use of a case-study apartment building built to conventional and passive house standard, both with and without VHR, and using different end-use heating systems including electric resistance heating, bedrock heat pump and district heating based on combined heat and power (CHP) production. VHR increases the electrical energy used for ventilation and reduces the heat energy used for space heating. Significantly greater primary energy savings is achieved when VHR is used in resistance heated buildings than in district heated buildings. For district heated buildings the primary energy savings are small. VHR systems can give substantial final energy reduction, but the primary energy benefit depends strongly on the type of heat supply system, and also on the amount of electricity used for VHR and the airtightness of buildings. This study shows the importance of considering the interactions between heat supply systems and VHR systems to reduce primary energy use in buildings.

An important option in the Swedish context to reduce its net emissions of carbon dioxide (CO2) is the increased use of biomass for energy and material substitution. On fallow agricultural land additional production of biomass would be possible. We analyse biomass production systems based on Norway spruce, hybrid poplar and willow hybrids and the use of this biomass to replace fossil energy and energy intensive material systems. The highest biomass production potential is for willow in southern Sweden. Fertilisation management of spruce could shorten the rotation lengths by about 17%. The fertilised production of Norway spruce with use of harvested timber for construction and use of remaining woody biomass for heat and power production gives the largest reductions of carbon emissions per hectare under the assumptions made. The use of willow for heat and power and of fertilised spruce for a wood product mix lead to the highest fossil primary energy savings in our scenarios. Spruce cultivations can achieve considerable carbon emission reductions in the long term, but willow and poplar might be a good option when fossil energy savings and carbon emission reductions should be achieved in the short term.

An important option in the Swedish context to reduce its net emissions of carbon dioxide (CO2) is the increased use of biomass for energy and material substitution. On fallow agricultural land additional production of biomass would be possible. We analyse biomass production systems based on Norway spruce, hybrid poplar and willow hybrids and the use of this biomass to replace fossil energy and energy intensive material systems. The highest biomass production potential is for willow in southern Sweden. Fertilisation management of spruce could shorten the rotation lengths by about 17%. The fertilised production of Norway spruce in southern Sweden with use of harvested timber for material or construction gives the largest reductions of carbon emissions per hectare in the long term. The use of willow and poplar for heat and power and of fertilised spruce for construction lead to the highest fossil primary energy savings in southern and central Sweden. Short-rotation willow and poplar are a good option when fossil energy savings and carbon emission reductions should be achieved in the short term.

The complex fluxes between standing and harvested carbon stocks, and the linkage between harvested biomassand fossil fuel substitution, call for a holistic, system-wide analysis in a life-cycle perspective to evaluate the impacts offorest management and forest product use on carbon balances. We have analysed the net carbon emission under alternativeforest management strategies and product uses, considering the carbon fluxes and stocks associated with tree biomass,soils, and forest products. Simulations were made using three Norway spruce (Picea abies (L.) Karst.) forest managementregimes (traditional, intensive management, and intensive fertilization), three slash management practices (no removal, removal,and removal with stumps), two forest product uses (construction material and biofuel), and two reference fossilfuels (coal and natural gas). The greatest reduction of net carbon emission occurred when the forest was fertilized, slashand stumps were harvested, wood was used as construction material, and the reference fossil fuel was coal. The lowest reductionoccurred with a traditional forest management, forest residues retained on site, and harvested biomass was used asbiofuel to replace natural gas. Product use had the greatest impact on net carbon emission, whereas forest management regime,reference fossil fuel, and forest residue usage as biofuel were less significant.

Using wood as a building material affects the carbon balance through several mechanisms. This paper describes a modelling approach that integrates a wood product substitution model, a global partial equilibrium model, a regional forest model and a stand-level model. Three different scenarios were compared with a business-as-usual scenario over a 23-year period (2008-2030). Two scenarios assumed an additional one million apartment flats per year will be built of wood instead of non-wood materials by 2030. These scenarios had little effect on markets and forest management and reduced annual carbon emissions by 0.2-0.5% of the total 1990 European GHG emissions. However, the scenarios are associated with high specific CO₂ emission reductions per unit of wood used. The third scenario, an extreme assumption that all European countries will consume 1-m³ sawn wood per capita by 2030, had large effects on carbon emission, volumes and trade flows. The price changes of this scenario, however, also affected forest management in ways that greatly deviated from the partial equilibrium model projections. Our results suggest that increased wood construction will have a minor impact on forest management and forest carbon stocks. To analyse larger perturbations on the demand side, a market equilibrium model seems crucial. However, for that analytical system to work properly, the market and forest regional models must be better synchronized than here, in particular regarding assumptions on timber supply behaviour. Also, bioenergy as a commodity in market and forest models needs to be considered to study new market developments; those modules are currently missing

Installing energy-efficient windows and improving attic insulation enhances energy efficiency of detached houses. However, realization of the potential benefits depends on the adoption of such measures, which further depends on homeowners’ need and perception of the measures. To analyze these issues, we conducted a survey of 1500 owners of Swedish detached houses during May – July 2008. About 37% of homeowners, selected by Statistics Sweden (SCB) using stratified random sampling method, responded. The majority of respondents was satisfied with their existing windows and attic insulation and did not plan to improve the thermal performance of them over the next ten years. Homeowners who were dissatisfied were more likely to implement an energy efficiency measure. The most common reasons for dissatisfaction were poor performance of existing installations and/or high energy cost. We also studied homeowners’ perception of energy-efficient windows and attic insulation with respect to variables like annual energy cost, investment cost, and environmental benefits. Homeowners perceive that improved attic insulation had greater advantages than energy-efficient windows for a majority of such parameters. Furthermore, more homeowners would recommend attic insulation over energy-efficient windows to their friends and peers. Still, a higher proportion of respondents had planned to replace their windows rather than improving attic insulation. This trend may be because more homeowners were dissatisfied with their windows compared to attic insulation and hence may be more inclined to change their windows. Along with this the financial incentive available for installing energy-efficient windows may influence the adoption, as respondents gave high priority to investment cost in their adoption decision.

New technologies for biomass gasification are being developed which increase the potential to cogenerate electricity and may reduce costs compared with steam turbine technology. Cogeneration is a more energy-efficient way to convert biomass into heat and electricity than separate electricity and heat production. The potential to cogenerate electricity in the Swedish district-heating systems is estimated to be 20% of current electricity production when using combined cycle technology. The electricity and heat costs from cogeneration with biomass are higher than the costs from fossil fuel plants at current fuel prices when external costs are excluded.

In this study we explore the effects of end-use energy efficiency measures on different district heat production systems with combined heat and power (CHP) plants for base load production and heat-only boilers for peak and medium load productions. We model four minimum cost district heat production systems based on four environmental taxation scenarios, plus a reference district heat system used in Östersund, Sweden. We analyze the primary energy use and the cost of district heat production for each system. We then analyze the primary energy implications of end-use energy efficiency measures applied to a case-study apartment building, taking into account the reduced district heat demand, reduced cogenerated electricity and increased electricity use due to ventilation heat recovery. We find that district heat production cost in optimally-designed production systems is not sensitive to environmental taxation. The primary energy savings of end-use energy efficiency measures depend on the characteristics of the district heat production system and the type of end-use energy efficiency measures. Energy efficiency measures that reduce more of peak load than base load production give higher primary energy savings, because the primary energy efficiency is higher for CHP plants than for boilers. This study shows the importance of analyzing both the demand and supply sides as well as their interaction in order to minimize the primary energy use of district heated buildings.

There are many possible systems for recovering, refining, and transporting logging residues for use as fuel. Here we analyse costs, primary energy and CO2 benefits of various systems for using logging residues locally, nationally or internationally. The recovery systems we consider are a bundle system and a traditional chip system in a Nordic context. We also consider various transport modes and distances, refining the residues into pellets, and replacing different fossil fuels. Compressing of bundles entails costs, but the cost of chipping is greatly reduced if chipping is done on a large scale, providing an overall cost-effective system. The bundle system entails greater primary energy use, but its lower dry-matter losses mean that more biomass per hectare can be extracted from the harvest site. Thus, the potential replacement of fossil fuels per hectare of harvest area is greater with the bundle system than with the chip system. The fuel-cycle reduction of CO2 emissions per harvest area when logging residues replace fossil fuels depends more on the type of fossil fuel replaced, the logging residues recovery system used and the refining of the residues, than on whether the residues are transported to local, national or international end-users. The mode and distance of the transport system has a minor impact on the CO2 emission balance.

In this paper, we examine how an increased use of biomass could efficiently meet Swedish energy policy goals of reducing carbon dioxide (CO2) emissions and oil use. In particular, we examine the trade-offs inherent when biomass use is intended to pursue multiple objectives. We set up four scenarios in which up to 400 PJ/year of additional biomass is prioritised to reduce CO2 emissions, reduce oil use, simultaneously reduce both CO2 emission and oil use, or to produce ethanol to replace gasoline. Technologies analysed for using the biomass include the production of electricity, heat, and transport fuels, and also as construction materials and other products. We find that optimising biomass use for a single objective (either CO2 emission reduction or oil use reduction) results in high fulfilment of that single objective (17.4 Tg C/year and 350 PJ oil/year, respectively), at a monetary cost of 130–330 million €/year, but with low fulfilment of the other objective. A careful selection of biomass uses for combined benefits results in reductions of 12.6 Tg C/year and 230 PJ oil/year (72% and 67%, respectively, of the reductions achieved in the scenarios with single objectives), with a monetary benefit of 45 million €/year. Prioritising for ethanol production gives the lowest CO2 emissions reduction, intermediate oil use reduction, and the highest monetary cost.