Straw in Skåne - The imminent development of the Skåne straw market triggered by the Örtofta Biomass Boiler

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Biomass energy production is changing the dynamics of energy and agriculture. Straw, which was once considered a waste product, is now being used to fuel straw biomass boilers. These boilers have existed for some time as small-scale, low capacity farm boilers. In 2010 Lunds Energi Koncern will build a 145 MWh biomass boiler in Örtofta, Sweden. The 80,000 tons of straw required a year will create an exogenous shock to the small straw market. This paper explores the commoditization and market development of straw in Skåne. Straw boilers in Denmark, the United Kingdom, and Spain are examined for influential factors. A discussion of price indicators is presented, along with an analysis of economic triggers which could influence the regional price of straw. Local conditions and attitudes are also provided by a Skåne farmer survey. The circumstances pertinent to this case indicate a rapidly incr...