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Mgmt 9, 170–185 (2002) Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/csr.20
REGIONAL INDUSTRIAL RECYCLING NETWORK IN ENERGY SUPPLY – THE CASE OF JOENSUU CITY, FINLAND
Jouni Korhonen,1 * Heikki Niemel¨ inen2 and Kyosti Pulliainen2 a ¨
Lahti Polytechnic, Finland University of Joensuu, Finland
considered and the experience from this Finnish case is discussed in terms of wider application of IE in local/regional economic energy systems. For future research on the theme, it is suggested that regional industrial ecology may beneﬁt from regional economics theory and, vice versa, regional economics theory may ﬁnd a new area of application in regional industrial ecology. Copyright 2002 John Wiley & Sons, Ltd and ERP Environment.
Received 14 March 2001 Revised 9 November 2001 Accepted 13 January 2002
Industrial recycling networks offer an example of the practical application of some of the industrial ecology (IE) principles. In the industrial ecosystem and eco-industrial park approaches the material cycles and energy cascades in a natural ecosystem serve as the metaphoric vision for a local/regional industrial system in which waste material and waste (residual) energy are utilized through cooperation between the actors in the system. In this paper, a local/regional recycling network scenario is presented with the energy supply system of the city of Joensuu in Finland. The conditions of success include the co-production of heat and electricity (heat and power, CHP), waste energy utilization for industrial steam and renewable ﬂow use as fuel. Some difﬁculties in the industrial ecosystem-type development of the system are discussed. Methodological suggestions for industrial ecosystem and eco-industrial park case studies are
* Correspondence to: Dr Jouni Korhonen, Department of Economics, University of Joensuu, PO Box 111, 80101 Joensuu, Finland. E-mail: jouni.korhonen@joensuu.ﬁ
Copyright 2002 John Wiley & Sons, Ltd and ERP Environment.
INTRODUCTION – ON THE ECONOMICS OF THE WORLD’S ENERGY PRODUCTION DEVELOPMENT
nergy production and use is an important focus point for environmental and ecological economics, environmental policy and industrial or corporate environmental management, because on a global scale, it still relies to a large extent on the use of non-renewable and emission intensive fossil raw materials. Carbon dioxide (CO2 ) emissions
Third. such as an energy supply system with various producers and industrial as well as household consumers instead of an individual company. Heat and electricity are needed practically everywhere to support residential requirements as well as industrial processes. a process. the effort is to consider the potential in and facilitate the emergence of a local co-operative material and energy ﬂow management scenario. We consider this approach with a case of an existing situation and with a scenario for arranging a local/regional energy supply system into waste utilization. an individual product or a waste ﬂow. particularly with the local/regional industrial ecosystem (IE) or eco-industrial park (EIP) concepts. environmental concerns have raised awareness on the need to substitute the non-renewables with renewables or with waste fuels to control the risks involved. The ﬁnal part of the paper identiﬁes conditions of success of the recycling efforts and discusses some of the problems involved. Corp. the industrial revolution has substituted the use of renewables and biomass with non-renewable fossil fuels such as coal and oil.g. First. Ltd and ERP Environment RESEARCH QUESTION It seems that the already existing examples of fossil fuel reduction need to be identiﬁed more clearly and documented in order to beneﬁt when developing environmental policy and material and energy ﬂow management for energy systems in other parts of the world. Second. Initial suggestions for methodology on local recycling network research are brieﬂy considered. In these cases. In the local industrial ecosystem vision. the substitution between fossil fuels and renewable fuels is simply impossible.g. Copyright 2002 John Wiley & Sons. We also suggest that industrial ecology and industrial ecosystem studies could gain from regional economics theory and. concerns for environmental issues. the emissions. Responsib. The important point in IE is that the focus is on the environmental burden of the system as a whole. If we consider the evolution of global energy production and fuel use from the perspective of environmental or ecological economics. 170–185 (2002) 171 . in addition. there still exist regions in the outskirts of urban conglomerates where the use of renewable sources for energy has been and continues to be the only available alternative. Neither environmental awareness nor environmental policy and management have played any major role in the energy decisions of these areas or rural areas. which have been discussed under the emerging ﬁeld of industrial ecology. Fourth. regions and locations where already for decades considerable amounts of these fuels have been substituted with renewable ﬂows. acidiﬁcation. but it must be noted that most of these arrangements have been made on the basis of straight economic proﬁtability calculations with few. with climate change. there are countries. Mgmt 9. Environ. therefore. in which companies and other actors involved use each other’s waste material and waste (residual) energy ﬂows. regional economics theory could ﬁnd a new area of application in industrial ecosystem case studies. The case comes from the region and the city of Joensuu located in Eastern Finland. Soc. Renewable ﬂows have been the only alternative. vice versa. of course. during the last two decades.REGIONAL INDUSTRIAL RECYCLING NETWORK IN ENERGY SUPPLY increase the risk of climate change and other emissions from fossil fuel use such as sulphur dioxide (SO2 ) create various forms of environmental burden. if any. e. policy and management. This paper adopts an approach for local industrial recycling networks. and. This has been considered as economical. despite the fact that approximately 80% of the world’s energy production is still based on fossil fuels. because it has been possible to rapidly produce large amounts of energy from fossil fuels that have higher energy content than biomass fuels. e. the following points deserve attention. Renewable natural resources and (renewable) waste fuels can reduce the fossil fuel consumption.
In nature. However. analogously to a local natural ecosystem. the virgin input as well as the waste and emission outputs from the system as a whole is reduced. a local ecosystem operates according to material cycles and energy cascades. the actors involved utilize each other’s waste material and residual energy ﬂows through co-operation. Instead of competition.¨ J. fungi) (see Husar. Responsib. JOENSUU CITY ENERGY SUPPLY SYSTEM As with all analogies or metaphors. 2001b). when designing industrial structures. To minimize the side-effects of recycling such as transportation and the consumption of energy. when waste serves as a resource with value to the actors involved. it seems that such a co-operative industrial system. 1998. It is clear that the development of cooperative industrial ecology-type material and energy ﬂow structures is always dependent on the various situational factors that are distinct for the region and for the industrial system in question. 2000. The appeal in the concept lies in the analogy with a natural ecosystem. In a local industrial ecosystem. techniques and tools now applied in corporate environmental management. where the system as a whole is a more important focus point than an individual actor. process or product. KORHONEN H. 2001b). 2001a. Baas. Soc. Gertler and Ehrenfeld. 1994). with the IE literature and with the few case studies it can be concluded that an optimal local industrial ecosystem facilitates the emergence of material cycles and energy cascades for utilizing the wastes of the actors in the system. approaches. 170–185 (2002) 172 . The IE analogy is perhaps easiest to understand and grasp with the local industrial recycling network perspective. but in addition rely on. Indeed. Cote and Cohen-Rosenthal. 1996. PULLIAINEN INDUSTRIAL ECOLOGY AND RECYCLING NETWORKS Industrial ecology as a ﬁeld and the industrial ecosystem approach as its most commonly used practical application surfaced into popular industrial environmental management discussion with the publication of a Scientiﬁc American article by Frosch and Gallopoulos in 1989 (‘Strategies for manufacturing’). i. It seems that in philosophical or metaphoric Corp.g. should aim. Ehrenfeld and Gertler. The potential in the highly visualized picture of a local industrial ecosystem is obvious. 1997a. Ltd and ERP Environment Some features that under certain conditions can yield industrial ecosystem-type development can be discussed (Korhonen. their usefulness must be carefully considered. 2001a. 1998). If successful. waste material and residual energy utilization through co-operation with producers (plants). IE might provide a vision toward which environmental policy instruments. cooperation partners) for waste could contribute to the stability and to the continuation of the recycling activity of the system and could hence secure its sustainability. Environ. consumers (animals) and decomposers or recyclers (bacteria. an industrial ecosystem would not only recycle. 2000. 1995. materials and energy (wastes) that originate from and are also consumed within the geographical boundaries of the local system (Korhonen.e. the approach of an eco-industrial park or a local industrial ecosystem (Cote and Hall. e. but it must be acknowledged that any kind of universal design principles will be very difﬁcult to construct for regional industrial networks that naturally are different from each other. Mgmt 9. the diversity in the actors involved and in their material and energy ﬂows would result in co-operation and interdependent relations between the companies. Copyright 2002 John Wiley & Sons. taxes or direct legislation. could constitute a common goal or a desired outcome of the various strategies. The system would also include a diversity of ﬁrms as well as other societal actors such as a municipal organization or households. NIEMELAINEN AND K. Diversity in the supply of waste (suppliers) and demand (customers. when one actor departs for example.
saw mill and pulp mill wood wastes. 1991. 1997). 1996. Schwarz and Steininger. 1992). to Central Europe. Mgmt 9.. 1999. Environ. Finland can present suitable conditions with which one can develop the concept and consider sustainable material and energy ﬂow arrangements in practice..g.g. In practical terms. Korhonen et al. Lappalainen and H¨ nninen. 1992. and this has reduced the costs of the district heating network (Korhonen et al. paper wastes etc). 2000). some argue that peat can be deﬁned as a slowly renewable natural resource in Finland and it can also serve as a carbon sink (see Selin. This has secured the economics of district heating networks that require heavy investments (Myllyntaus. another middle class size city of a a approximately 80 000 inhabitants located in southern Finland (Korhonen et al. Savolainen et al. 1993). the most famous being the Kalundborg industrial district in Denmark (Tibbs. Figure 1 describes the utilization of waste material and residual energy within the Corp. Therefore. As noted above. The forest ecosystem is able to bind more carbon dioxide from the atmosphere than the amount of carbon that is released through cuttings and natural drain (Kauppi et al. Of course. 1999).. In the Finnish industries. Waste material and residual energy utilization is now relatively common in Finnish cities. to Germany. Responsib. In this part of the paper.g. e. among which the district heating system is the most important in terms of supplied energy in Finnish towns and other densely populated areas such as Joensuu city and Jyv¨ skyl¨ . Joensuu is the centre of eastern Finland.g.. for instance. the Joensuu city energy supply system in Finland is presented to serve as an example of a recycling network. the annual cuttings of the forests are less than the annual growth. the ﬁrms have developed complex waste material and waste energy utilization networks through spontaneous and self-organized development in the course of 30 years. 1999). Because of the winter. 2000). Korhonen. a university and a region with forest products.. the experiences on the application of the industrial ecosystem approach are still very limited. which is paper. of imported fossil coal and oil. e.REGIONAL INDUSTRIAL RECYCLING NETWORK IN ENERGY SUPPLY terms. There are also energy intensive sectors. the success of the approaches that the concept yields must be considered in light of the ability to reduce the environmental burden of an industrial (societal) system. forest. Ltd and ERP Environment the annual use of peat is less than its growth if integrated over all peatlands in Finland. In Finland. Soc. of which the other one is sustainable while the other one is not (Ehrenfeld. One should also note that Finland is a northern country with a cold winter. where the demand for heat (process steam) extends beyond the cold part of the year. is exported. One-third of the land area in the country is covered by peatlands and Copyright 2002 John Wiley & Sons. Around 90% of the main product of the forest industry. In Kalundborg. There are vast renewable natural resources and a low population density in the country. Ehrenfeld and Gertler. e. 1997a. These sectors provide various forms of wastes that are suitable as local fuels in energy production (e. with a population of approximately 55 000. 170–185 (2002) 173 . the utilization of wastes and the sustainable use of local renewable resources have been enhanced by the increase in the price of round-wood in the market and the high costs of imported fossil fuels such as coal and oil. black liquors. The consumption of external fuels in the Jyv¨ skyl¨ a a energy supply system. 1999. a in a certain local peatland. metal and plastic industries and vast forest and peat reserves. Gertler and Ehrenfeld. is 40% lower than it would be without waste utilization strategies. industrial ecology can be very fruitful for the comparison of two material and energy ﬂow based systems. The forest industry corresponds to approximately 30% of the national exports. the reproduction of the amount of extracted peat can take thousands of years. Only few documented case studies exist on the local industrial ecosystem. there exists demand for heating systems. pulp and paper production. 1994.
e. households. NIEMELAINEN AND K. In the scenario. KORHONEN H. consumers. PULLIAINEN Landfill gas District Kuhasalo waste (CH4) for uel fuel heat water treatment plant (waste (internal biogass energy) utilisation for Sirkkala power energy) plant household Separated . 2000. 1997). It also generates industrial steam to be used in the Schauman plywood mill and in the Valio dairy and milk product factory located in the same block as Copyright 2002 John Wiley & Sons. The picture is based on a scenario that is currently (spring 2001) being considered by the companies and the public authorities in the city (City of Joensuu. Soc. a in which the waste energy from electricity production is used for district heat and for industrial process heat and steam instead of dumping the energy into the local water system or into air. The Joensuu Energy Company. 1997. Lehtil¨ et al. The use of imported fossil coal and oil is virtually non-existent. or Table 1. services. to all consumer households. electricity from waste and industrial waste steam (fuel derived efficiency 82%) fertilizer Wood waste as fuel from 0 Waste Waste ash km (10% of heat as for fertilizer Local the Sirkkala process agriculture fuels) steam Valio Schauman milk plywood mill products factory Kontiosuo landfill electricity The city. from a national electricity grid. industry Renewable flows as fuels from 10-80 km: -peat (50% of the Sirkkala fuels) -forest residues (40%) Figure 1. services.g. the fuel input and the fuel procurement distances of the energy supply system are given (City of Joensuu. we shall discuss the other alternatives and the ﬁnal decision made in the region. The use of external fuels is non-existent.¨ J. 0 km 1000 GW h Corp. the rest of which will be bought from elsewhere. produce and distribute electricity and district heat to the city. local renewables (within the radius of 10–80 km) and residual energy in the Joensuu energy supply system. many of the described elements in Figure 1 are already in place in the Joensuu energy supply system. Responsib. the Sirkkala power plant and its owner.. In Table 1. In the last part of our paper. consumers. Ltd and ERP Environment the power plant. services and industry. The plant’s capacity meets the requirement for all heating and two-thirds of the electricity need. Cogen. 10–80 km 400 GW h (40%). households. Environ. The system is able to supply all of the district heat and process heat required and approximately 60% of the electricity demand of the local actors Joensuu city energy supply system. Fuel input to Joensuu energy supply system and the fuel procurement distances Peat Forest residues Waste wood Total 500 GW h (50%)/year. The power plant applies the method of co-production of heat and electricity (CHP. 2000).co-production of wastes for fuels solid particles heat. Approximately 50% of the fuels are local peat resources derived from within the radius of approximately 10–80 kilometres. because the remaining 50%. industry The city. 10–60 km 100 GW h (10%). 170–185 (2002) 174 . However. 2000). Mgmt 9. Utilization of waste material.
A similar study on the Jyv¨ skyl¨ city energy supply a a system showed that the CHP method and the input waste wood fuel share of 20% (the rest mainly peat) created a situation in which the SO2 emissions are more than 50% lower and the CO2 emissions more than 30% lower than without these two features of waste utilization (waste heat. of the fuel demand is met with local wood wastes. the emissions are relatively low. Biomass and other heterogeneous fuels such Corp. Soc. Minor amounts of other wastes. Environ. CH4 ) is transferred through pipelines. The remaining 15% is released in the form of waste water into the local Pielinen river ecosystem. district heat and industrial steam (i. solid material particles are separated from the municipal and industrial waste waters and manufactured into solid products suitable for fuels in the Sirkkala power plant (alternatively for fertilizer in the local agricultural farms). from waste heat). enables a relatively diverse fuel basis. Because Table 2. Renewable ﬂows as fuels The Sirkkala power plant applies the technique of ﬂuidized bed burning. As noted above. the SO2 and CO2 emissions of the energy supply system are presented. which. The Sirkkala power plant can achieve a fuel efﬁciency of up to 85%. e..g. SOME CONDITIONS OF SUCCESS In the following section. because of the combined production of electricity. the wastes also include the remaining 15% fraction of the fuel energy that cannot be utilized. Responsib. In addition. where only electricity is produced. SO2 and CO2 emissions and incineration ash output of the Joensuu energy supply system SO2 emissions CO2 emissions Incineration ash 520 t/year 440 000 t 12 000 t no fossil fuels are used in the Sirkkala plant. In a local Kuhasalo waste water treatment plant. A small fraction of the fuels can be gathered from local Kontiosuo landﬁlls when biogas (methane. The ash is transported and placed in the Kontiosuo landﬁll of the city. In Table 3. when compared with older techniques of pulverized coal burning in use in many power plants. Energy produced and the fuel efﬁciency of production in the Joensuu energy supply system (based on fuel use in Table 1) Electricity District heat Industrial process steam Total Fuel efﬁciency 82% Copyright 2002 John Wiley & Sons. about 40% of the energy embedded in the fuels can be utilized while the rest is dumped as waste (heat) into the environment. oils from the machines of the power plant or hazardous wastes. are generated. The Schauman plywood mill wood wastes constitute 10% of the fuels and forest residues from cuttings located within the radius of approximately 60 kilometres constitute up to 40%.REGIONAL INDUSTRIAL RECYCLING NETWORK IN ENERGY SUPPLY possibly up to 60%. Mgmt 9. The waste water treatment plant also recovers biogas from the sewage and waste waters to satisfy its own demand for heat and electricity. waste wood) (Korhonen et al. incineration ash is created in the energy production in Sirkkala. 170–185 (2002) 230 GW h (28%)/year 480 GW h (59%) 110 GW h (13%) 820 GW h 175 . These activities are likely to increase in the near future and further substitute the peat use of the energy supply system. The ﬁnal section presents some initial proposals for research methodology in the light of IE and EIP case studies. In a normal power plant. Ltd and ERP Environment Table 3. some conditions of success of the Joensuu system are considered in terms of waste utilization and these are compared with the difﬁculties involved. 1999).e. Table 2 describes the energy production in the Sirkkala power plant based on the fuel input of peat and waste wood in Table 1.
the second for industrial steam and the third for district heat. The climatic conditions and other factors that create demand for district heating. NIEMELAINEN AND K. PULLIAINEN as waste derived fuels can be used in the production of energy. to the city district heating networks. e. a normal electricity plant can achieve a fuel efﬁciency of approximately 40–45%. Responsib. the city could provide household wastes (source separated) to be used as fuels in the forest industry energy production. Ltd and ERP Environment Industrial steam production from waste energy As noted above. There are 11 large local forest industry systems in Finland called ‘integrates’. The often cited Kalundborg system (Ehrenfeld and Gertler. that use non-renewable and emission intensive fossil fuels (imported) as the system input. Lehtil¨ et al. it is likely that the EU targets for CHP will rise considerably in the near future. which can offset the environmental gains that are achieved through advanced recycling because of economic growth. from saw mills. Given certain conditions. The share of co-generation from the total national electricity generation in 1999 was 50% in Denmark. concentrated demand. 1997. while the EU average is approximately 8% (Cogen.g. 40% in The Netherlands and 35% in Finland.¨ J. e. pulp mills) utilization for the industrial electricity and heat demand. close proximity and increase in the energy efﬁciency. Co-production of heat and electricity The CHP method has been applied on a large national scale in only three countries in the world. In addition. 1997a) is an example of a waste utilization network. In the Joensuu system. which apply the CHP method and wood waste (e. a coal-ﬁred power plant and an oil reﬁnery.. It can be argued that the power plant is highly advanced in environmental terms when its fuels are considered. Soc. The ability of the system to rely entirely on renewable ﬂows as inputs is important in terms of the industrial ecosystem approach. The waste heat from electricity production is used for district heat and industrial process heat/steam. 2000. the energy can be utilized in three quality. KORHONEN H. Environ. The utilization of waste energy from electricity production for district heating is an environmentally benign alternative for energy supply of many regional energy systems. In other words. The Sirkkala plant can have an efﬁciency of up to 85%. the wood waste from the forest industry operation could be used as fuel in the city energy supply system. The old Schauman power plant that is currently producing energy for the Schauman plywood mill has a lower efﬁciency compared with the new plant and it is able to produce energy only for industrial requirements.g. Because of combined production of the three products.g. the waste heat from these industrial systems could be sold outside. through sustainable use of local renewables (peat) and waste ﬂows the demand for heat and electricity within a city of 55 000 inhabitants can be satisﬁed. exist in many parts of the industrialized world. Copyright 2002 John Wiley & Sons. 1997). Kalundborg still relies on two key actors. The fourth level is released into the local water ecosystem. Correspondingly. the fuel efﬁciency of the city energy supply system can be increased and the emissions are easier to monitor and manage. Mgmt 9. Because of a the UN framework convention on climate change and the Kyoto protocol. The energy Corp. Many of these are located near a city or a residential concentration. There is only one main source of emissions in the proposed scenario. The integrated production model of the system could open the eyes of environmental policy planners and industrial managers towards wider combination of heavy industrial systems and end-consumption systems such as city or residential heat and electricity supply. All the fuels are local renewable ﬂow resources and the use of imported fossil fuels is non-existent. 170–185 (2002) 176 . temperature and pressure levels: the highest level for electricity.
170–185 (2002) DIFFICULTIES IN THE INDUSTRIAL ECOLOGY DEVELOPMENT OF THE SYSTEM Peat use The use of peat reserves for fuel must be seen as a problem of industrial-ecology-type system development in Joensuu. also for substituting peat fuels. 2000) revealed only minor impacts that arise because the plant releases waste heat in the form of water ﬂows to the Pielinen river ecosystem. Peat is. Waste heat in water The environmental impact assessment performed for the Sirkkala power plant project (City of Joensuu. The use of waste energy (and waste material) creates cost reductions. alternative options for the waste water disposal could be considered. contain the highest amount of bace cation (BC) nutrients. Responsib. However. in Finland. which can Corp. Soc. but forest residues. e. In theory. the ash contains cadmium and other heavy metals and the storage. a very slowly renewable natural resource. At Kalundborg. Substitutes for peat fuels could be developed through the use of household wastes from the city. although the reserves are vast in Finland. 1994). For instance. 1996). Mgmt 9. where the aim is to extent the utilization time and the economy of a resource. Ltd and ERP Environment 177 . demand for heating as well as for industrial energy. branches or needles.g. As noted above. the low population density with vast renewable resources. when increasing the share of industrial fuels derived from forest residues. This is because of the many situational factors. reduced growth of trees or acidiﬁcation can result when ash is used as fertilizer. However. in trees. because the costly and imported fossil fuels can be minimized. spreading and optimal release rate may cause problems. the burning technology for these peat substitutes exists.g. the amount of important nutrients that are isolated from the ecosystem nutrient cycle is increased. are not separated adequately. twists. e. Local conditions Finland may provide the ideal of industrialecosystem-type sustainable material and energy ﬂow structures with a fruitful testing ground. the separation of landﬁll gas for energy is a potential future option as well as the separation of solid particles from municipal waste waters that can be used as fuels. imbalances in the pH levels. the existence of industries that generate wastes that can be used as raw materials and for energy and costs of roundwood or imported fuels are contributing to the efforts to develop material cycles and employ energy cascades. such as calcium (Ca2+ ). Therefore. wood or paper originated. Environ. also in the forest ecosystem. the utilization of local forest residues from cuttings seems like a preferable alternative. Nutrient cycles of forest ecosystems From a perspective of CO2 and other emissions as well as the reduction of imported fossil fuels in the energy supply system. waste heat from energy production is used for heating a local ﬁsh farm. but these efforts are still only at an experimental level. magnesium (Mg2+ ). bark. Furthermore. For example. at most. Some studies have indicated that it is possible to use the power plant generated incineration ash (wood origin) as fertilizer in the forest ecosystem and in this way return some of the bace cation nutrients to the ecosystem cycle (Ranta et al. It will be very difﬁcult to determine whether the already high share of renewable ﬂows should be further increased by using the forest residues and hence risk a problem displacement in the nutrient removal.. but problems occur if the wastes. potassium (K+ ) and sodium (Na+ ).REGIONAL INDUSTRIAL RECYCLING NETWORK IN ENERGY SUPPLY utilization serves as an example of the cascade chain approach (Sirkin and ten Houten. the heat might reduce the natural formulation of ice in the river. Copyright 2002 John Wiley & Sons.
people ﬁnd it difﬁcult to accept heavy industrial arrangements near houses and prefer factories and plants to be isolated from households. Therefore. There seems to be no other technologically feasible and cost efﬁcient power plant technology that would result in smaller and lower pipes and smaller plant building. 2000). because emissions are distributed over larger geographical areas (which of course does not reduce the total amount of emissions). Some conﬂicting interests might occur if the Kontiosuo power plant were closed and substituted with the Sirkkala power plant and with the related system scenario described above. The fact that this new plant would derive approximately half of its fuel inputs from the local forest residues can be seen as a signiﬁcant Corp. In the spring of 2001. and perhaps in this way the control and operation costs could be reduced. KORHONEN H. Soc. only one power plant would exist in the region. Some argue that Fortum energy. one could close the operation of the boiler. which handles the distribution. Currently. 170–185 (2002) 178 . the described Sirkkala power plant is currently at a scenario level. which has been the owner of the Kontiosuo power plant currently in operation and supplying the energy to the city. 2000) it seems that perhaps the biggest public concern among the local inhabitants of Joensuu will arise because the power plant pipes are almost 80 metres high and hence affect the landscape and the aesthetic value of the neighbourhood. The environmental impact assessment for the project has been discussed in various forums (City of Joensuu. waste a a heat is used for heating local greenhouses and the horticultural centre (Korhonen et al. the Sirkkala power plant is a scenario. In the integrated scenario. Today industrial steam is produced separately in the old Schauman plywood mill boiler with lower fuel efﬁciency. As noted above. the Kontiosuo power plant produces energy for the city including electricity and district heat. in the Jyv¨ skyl¨ energy supply system. Therefore. 1999). Similarly. Economic and employment issues As noted above. Responsib. the high pipes might be preferable for the local inhabitants. we shall discuss the other alternatives and what was the ﬁnal decision. Copyright 2002 John Wiley & Sons.¨ J. improvements in the monitoring of the emissions could also be achieved. It might be in the company’s interests to produce the energy it distributes itself. the company was buying its energy from the Kontiosuo power plant and was only in charge of the distribution of electricity and district heat to the consumers. As noted above. Ltd and ERP Environment the situation is already relatively advanced in environmental terms. Some argue that. The main difference is the ability of the new proposed Sirkkala plant to integrate the production of electricity and district heat to the production of industrial steam. Environ.. The plant building is 50 metres high and it will be located quite near to the city centre. will lose in terms of markets and in terms of employment in Joensuu if the Sirkkala plant is established. but some views have also been presented arguing that the Kontiosuo power plant would continue to produce only electricity to be sold to Joensuu energy company. 1997a). Landscape and scenery On the basis of the publicly discussed environmental impact assessment for the Sirkkala power plant project (City of Joensuu. It has been argued in the discussion between the decision-makers in Joensuu that this new solution with the Sirkkala power plant is preferable to the Joensuu energy company. NIEMELAINEN AND K. because the town populations in Finland are still in many cases ﬁrst generation city dwellers. PULLIAINEN beneﬁt from increased growth and reproduction (Ehrenfeld and Gertler. On the other hand. Mgmt 9. In the last part of our paper. The material and energy ﬂow structure is to a large extent the same as in the proposed system driven by the Sirkkala power plant.
such diverse regional networks seem to self-organize rather than arise out of a speciﬁc planning process. A functioning industrial ecosystem will be a complex structure with diverse ﬁrms and diverse material and energy ﬂows. petrochemical or food industries (see Lowe. The use of forest residues is considerably more employment intensive (separation. 1989) provide fruitful examples on existing and relatively long-term industrial ecosystemtype development in practice. this might be the most preferable solution for further substituting peat fuels in the new plant. supply systems. when compared with a situation in which all of the wood wastes are derived from plywood mills or saw mills. although important nutrients are removed from the ecosystem through forest residue use as fuels. Within this second approach. Jyv¨ skyl¨ . while others choose to describe existing cases and draw proposals for further development of other systems from these or build on the existing strengths when developing the actual system under study (Lowe. 1997). or a a Styria (Schwarz and Steininger. Some scholars try to map out initial design principles or suggestions with which one could intentionally plan a new eco-industrial park project from the beginning. With this amount of empirical material. Ltd and ERP Environment 179 . The formulation of the design principles could be pursued after the vision or the overall goal is more clearly identiﬁed and the conditions of success of various existing systems have been presented (see also Ehrenfeld and Gertler. If the entire wood waste share of the fuel input of Sirkkala plant (50%) could be satisﬁed with local forest residues. Frosch and Gallopoulos. A research project on a case study system could include the following steps: (i) Selecting a potential case study based on existing knowledge on recycling structures. Because the documented cases are still only few. In other words. recovery. for discussion see Johansson. 1997b. However. Hence. because waste utilization was economic. the Kalundborg system evolved without intentional plans or environmental management frameworks. pulp and paper sectors. it seems that it might be helpful to ﬁrst try to ﬁnd more of these examples of different existing systems for case studies and proceed with theory building alongside these. There seem to be two broad approaches in the research on local recycling networks. 170–185 (2002) METHODOLOGICAL IMPLICATIONS FOR RESEARCH ON INDUSTRIAL ECOSYSTEM CASES The concepts of eco-industrial park and industrial ecosystem are mostly at an early developing level with only a few observed case studies in practical industrial environmental management situations. energy Copyright 2002 John Wiley & Sons. transport etc) than the use of saw mill or plywood mill wood wastes. Soc. 1997. Responsib. Mgmt 9. This kind of case research can contribute to the building of the vision of a desired industrial ecosystem. It seems that many industrial contexts such as forest. it might be beneﬁcial for IE research to proceed with theory building from case studies in order to describe the spontaneous development of a case system or the successful outcomes of the development of this system in terms of cooperative waste utilization. Environ. some argue that in fact these cases do exist in many industrial systems or networks. 1997).REGIONAL INDUSTRIAL RECYCLING NETWORK IN ENERGY SUPPLY factor promoting local employment opportunities. For instance. up to 90–100 additional jobs could be created. 1997). 1997) seem to illustrate that the emergence of industrial ecosystem-type development has been natural or spontaneous development. waste management or industrial networks drawing from the documented Corp. documented and placed under the conceptual industrial ecosystem framework (Schwarz and Steininger. it is often argued that these cases are unique and only few. Experiences from Kalundborg. but only a few have been identiﬁed.
blocks of ﬂats and raw-houses is required (Korhonen and Savolainen. These may include the local conditions such as the existence of wastes that can be used. NIEMELAINEN AND K. Considering some of the most important conditions of success. and if they do the importance of IE studies becomes more evident. or ‘external conditions’ that have been vital for the evolution of the system.e. those with vast renewable natural resources. in industrial processes. 170–185 (2002) (ii) (iii) (iv) (v) (vi) Copyright 2002 John Wiley & Sons.g. every local or regional economic system in the world requires energy. even with petrochemical applications. with forest. technical capacity. Identifying the success of material cycles and energy cascades. electricity. provide a suitable testing ground for the theory. Identifying the most important places for improving waste utilization. heating of ofﬁce buildings. Soc. such as economics of scope and economics of scale and regulation. although a certain power plant already uses a relatively high amount of waste wood as its input. Correspondingly. all of these countries have local systems and regions in which a concentrated demand exists to make district heating networks economic. 2001). Responsib. process steam and heat or district heat. Of course. Local forest industry and energy systems can provide examples of relatively advanced waste material and waste energy utilization. or cases on eco-industrial parks and industrial recycling networks. Switzerland and Austria and the Eastern European countries as well as a large part of North America have such climatic conditions that district heating. Practically. but the Kyoto protocol and the international and national energy. and includes. Most of the Central European countries. the share of CHP in world’s energy supply systems is still relatively low. Environ. The common assumption seems to be that IE cases are rare and only certain local or regional systems. the number of documented cases. For example. the efforts by the companies and other actors in the system to substitute virgin resources with waste material and residual energy. Ltd and ERP Environment 180 . to focus more thoroughly on the above point (vi). However.g. cost or fuel price-related issues. factors related to ﬁrm location. There are many examples in the industrial world of successful waste utilization. The ﬁnal phase would try to generalize the experience from the case study and hence serve the cause of learning from the case in some other industrial ecosystem or an eco-industrial park project. TOWARD REGIONAL ECONOMICS OF INDUSTRIAL ECOLOGY Importance of documented case studies It can be important for industrial ecology case studies. those mentioned earlier in this article. e. regulatory structures. In addition to the conditions of success. unfortunately. such as UK. agriculture and food industries. outputs and wastes as well as other economic issues affecting the system. Rather. we argue that this is not the case. Germany. ownership structures and other situational factors. it could also seek users for its waste heat. i. as is the use of renewables or wastes to substitute for fossil fuels. costs and market conditions for raw materials. climate and environmental policy and legislation are very likely to affect this situation. the Corp. This is in order to use the experiences gathered from a certain case in another case and expand IE application. Belgium. Identifying prices. Drawing up a systems ﬂow picture in order to identify the main (waste) material and energy ﬂows and the societal actors that mobilize the ﬂows within the local/regional system boundaries. pulp and paper industries. e. Mgmt 9. for example. Further. for example with local ﬁsh farms or horticultural centres. the difﬁculties in further enhancing cooperative waste utilization could be discussed. is low. which is arranged into interdependent relations among the actors in the system.¨ J. KORHONEN H. PULLIAINEN cases in the literature. commercial buildings.
those costs that result from the implementation of measures required by environmental legislation can also be reduced in the IE vision. when the food product wastes at end-consumers are returned to the agricultural or cultivated ecosystem to participate in the very ﬁrst steps of the food product life in the ﬁeld. innovation opportunities. In addition to needed supply and demand. Regional economics studies colocation of companies and the beneﬁts that may arise for the individual ﬁrms and for the entire region in such a process. when reﬂected in the particular example of Joensuu city. e. Industrial ecology traces and measures the physical material and energy ﬂows of the regional economic actors. A ‘closed-cycle’-type development might be possible. 170–185 (2002) 181 . Even the marketability of the region as a ‘green region’ may be increased (for ‘regional green labels’ or ‘branding’. in chemical or pulp and paper industries. e. all countries in the world have economic systems that include these actors. although also successful utilization examples can be found.g. and there exists waste utilization potential and examples in all of these sectors. those in a regional energy supply system. As with the experiences from Kalundborg and from Corp. can help in explaining the development of the industrial ecosystem. It can also contribute to economics analysis. but it seems that regional economics and industrial ecology have been developing in isolation from each other in the literature.g. then. Agriculture and food industry life cycles produce many biowastes that can be used for composting or for fertilizer or through methane (CH4 ) and biogas treatment for energy. Responsib. Although the supply of renewables is relatively unique in Finland. In Finland. e. in energy systems.g. Literature on regional economics can contribute to study those factors that can provide a suitable ground for industrial ecosystem development. In particular. These include cooperation. then. Similarly. Industrial waste materials and waste energy can be used both for raw materials. Environ. Ltd and ERP Environment Regional economics.REGIONAL INDUSTRIAL RECYCLING NETWORK IN ENERGY SUPPLY demand extends beyond the cold part of the year and all of these countries have demand for economic and fuel efﬁcient CHP application in industry. Germany. clusters and industrial ecology Regional economics traces and measures the product ﬂows of the economic actors in a region and costs and market potential as well as employment questions related to these ﬂows. for paper production. Household wastes can be recycled for the material content. Industrial ecology. a regional ‘economic–environment win–win’-type system development can be possible. also studies the environmental impacts and virgin resource use of the regional product ﬂows. It is important to consider the energy potential of wastes to reduce the landﬁll burden. This is also true for many other European countries lacking landﬁll capacity. raw material and energy or transportation costs that are substituted with waste utilization within the local/regional system boundaries. Copyright 2002 John Wiley & Sons. wastes seem to exist everywhere. agriculture and manufacturing. Agricultural crop wastes can also be burned for energy. Regional economics. Consider three main economic sectors of a national economy: households. lower transportation costs and joint utilization of those services that the emergence of a network of companies has attracted to locate in the particular region. when suitable incineration techniques are in place. and often the potential or value in them is wasted.g. and for energy as in waste fuel based CHP application. because of EU and national legislation. see Welford and Gouldson. Practically. the prices of round-wood in the market and fuel costs have enhanced the use of local renewables and wastes in Finland to control or reduce the cuttings of forests and increase fuel efﬁciency. e. Soc. e. 250 or 300 landﬁlls will be closed in 5–10 years. Mgmt 9. Consider that successful waste utilization can reduce waste management costs. 1993).g. and in addition used as fuel. other parts of the world also have renewable natural resources that can be used as fuel. In theory.
Mgmt 9. The demand for electrical power had increased in the country to such an extent that it could no longer be met with the company’s nuclear and condensing coal plants. where no such cluster-type cooperation opportunities exist.g. e. Finland was the ﬁrst country in the world to adopt a CO2 tax and this meant that wood fuels became more competitive than peat fuels. a large investment (60 million FIM) was made on the technique of ﬂuidized bed burning. Michael Porter (1998. Clusters can enhance innovation. It was not economic to produce only electricity. Soc. because of cooperation and networking. by allowing companies to operate more productively in sourcing inputs. the district heat used in Joensuu was derived from several individual oil boilers and from a fuel peat boiler. In Joensuu. e. 170–185 (2002) 182 .g. Ltd and ERP Environment because the ongoing relationships between different companies within a cluster can help the participants to learn. In 2000. The inputs are local and there exists a sufﬁcient supply of these as well as suppliers to provide the inputs to the users. Planning industrial ecosystem investments How then to plan industrial ecology investments? When considering the location of a Corp. They increase productivity. In policy. also into the technique of ﬂuidized bed combustion. The national energy company Imatran Voima (currently Fortum Power and Heat) acknowledged the economics of CHP in the case of the Joensuu region. The diverse fuel basis also enabled the creation of a competitive situation between different suppliers and reduced risks involved when relying on a single fuel or on a single supplier. Copyright 2002 John Wiley & Sons. First. industrial ecology development can be described as self-organization and spontaneous development that has emerged because of economic reasons (Korhonen and Sn¨ kin. PULLIAINEN Jyv¨ skyl¨ . the increase in the productivity. Wood wastes are abundant in Finland and in Joensuu. it can be argued that the existence and supply of local wood fuels and their economics as well as the existence of demand and the cooperation beneﬁts in general created suitable preconditions for investments into CHP. has been enhanced in the Joensuu system through industrial ecosystem-type cooperation between the actors in the system. it was economic to apply CHP. the possible involvement of local agriculture to use waste water derived fertilizer indicates that industrial-ecology-type development can also yield opportunities to establish new areas of economic and business activity within the network. e. The CHP would be using domestic peat to substitute for imported and costly oil. a Before 1986. Cohen-Rosenthal. Furthermore. NIEMELAINEN AND K. related to efﬁciency in input and fuel input use. with a population of around 55 000. Rather. In addition. Third. while peat is not. wood is deﬁned as CO2 neutral. Second. In his theory on clusters. Porter asserts that clusters affect competition in three broad ways. about evolving technology. and recently. 2001) deﬁnes clusters as ‘geographic concentrations of interconnected companies and institutions in a particular ﬁeld’ (p. 2001). there has been no speciﬁc ‘master a a plan’ or ‘IE management system’ in place in Joensuu. KORHONEN H. there are also signs of innovation opportunities that have emerged. Environ. the Joensuu regional economic system and its development provides signs that suggest that the points raised by Porter’s cluster theory may also be important for regional industrial ecology or for regional industrial recycling networks. Perhaps the recent experiments in utilizing biogas from landﬁlls or solid particles from municipal waste waters can serve as examples of this.g. 78). This enables a more diversiﬁed fuel basis. Arguably.¨ J. Electricity was bought from the national electricity grid. Responsib. Porter notes that within clusters it is easier for new companies to emerge and grow than when compared with isolated locations. The actors in the network use each other’s waste material and waste energy ﬂows. The CHP plant started its operation in 1986.
and to include IE better in regional economics literature and in policy planning and corporate environmental management. In terms of regional economics. Industrial ecology is not just about the tangible issues of material and energy ﬂows. the Sirkkala plant will not be built. The help from Joensuu Energy is also gladly acknowledged. It is not: note the conﬂicting interests and preferences of network actors and many other problems that relate to unique regional economic. it is possible to consider the optimal location for the plant to contribute to the sustainability of the industrial ecosystem and its long term operation. According to their view. Correspondingly. i. CONCLUSION We are not arguing. Soc.g. and many more isolated examples of IE-type development (e. However. 170–185 (2002) 183 . Responsib. 1998. Again. it is the question of regional planning and regional policy to ‘plan ahead’ and consider whether these preconditions exist in a certain region before making a capital intensive investment such as CHP. The Joensuu energy company chose to buy the Kontiosuo power plant from Fortum Power and Heat. REFERENCES Baas L. the large plant with high pipes would have endangered the scenery and the landscape of Joensuu. Ltd and ERP Environment from densely populated or heavily industrialized regions. the ‘human side of industrial ecology’ (see Cohen-Rosenthal. For this purpose. the documentation of cases is needed. the fuels need to be there in a certain local system to which to locate a CHP plant. For reducing transportation and associated energy use and emissions. Cleaner production and industrial ecosystems: a Dutch experience. the demand must exist in the local system. although not documented. nearly all of the waste utilization features presented in the Sirkkala system are in place in Joensuu although the Sirkkala scenario is now unlikely to happen. ACKNOWLEDGEMENTS This research has been supported by the Academy of Finland and the National Technology Agency. However. Before the investment is made it is much easier to ‘move the investment’ between different locations than it is to ‘create local conditions’ if they do not already exist. the ﬁnal decision that has just been made in Joensuu city (after the ﬁrst round of review of this article) indicates that there are also other factors that affect the localization of an investment or of a power plant. Mgmt 9. it is not environmentally benign to produce locally and consume globally. nor do we think it is necessary to argue. Neither is industrial ecology only a question of the economics of the system. these softer issues and the attitudes of people also affect such diverse structures and network systems as in the industrial ecosystem vision. it must also be noted that there are many cases of IE. However.e. the fuel or the input basis of production are local. We hope the Joensuu example can contribute to this effort. The fuel basis is in local/regional renewables and peat fuels and CHP is applied to satisfy the heat and electricity demand of the regional actors. Journal of Cleaner Production 6: 189–197. that IE is easy to achieve. Corp. social. Before the investment. It now seems. that in Joensuu. Therefore. There is potential to develop the IE approach further. In other words. 2001). ecological and cultural factors. one could use the notion of ‘plant localization optimization’.REGIONAL INDUSTRIAL RECYCLING NETWORK IN ENERGY SUPPLY CHP investment. traditions and a mind-set that is quite different Copyright 2002 John Wiley & Sons. This is mainly because the citizen groups and the NGOs in the city resisted the location of the plant so near to the centre of this small city. Environ. the local conditions seem to be the key for industrial-ecosystem-type development. It would seem that usually the preferred situation is that the raw material basis. waste utilization in different economic sectors). One could note that Joensuu inhabitants have rural origins.
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Soc. 80101 Joensuu. Copyright 2002 John Wiley & Sons.ﬁ Heikki Niemel¨ inen and Kyosti Pulliainen a ¨ can be contacted at the University of Joensuu. P. Faculty of Business Studies. Mgmt 9.O. Finland. 170–185 (2002) 185 . Finland.O. Jouni Korhonen (corresponding author) can be contacted at Lahti Polytechnic. FIN-15101. E-mail: Jouni. Department of Economics. Box 106. Lahti.REGIONAL INDUSTRIAL RECYCLING NETWORK IN ENERGY SUPPLY BIOGRAPHY Dr.Korhonen@lpt. Box 111. Responsib. Environ. P. Ltd and ERP Environment Corp.
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