Rural development and bioenergy—experiences from 20 years of development in Sweden

Activities have been going on for a number of decades in Sweden in the field of job creation, rural development and development of local economies through the use of bioenergy. This paper relates the experience of different strategies of rural development projects over a 20-year period based on the rapid development of biofuel use, especially wood fuel use in Sweden. A successful strategy for people and companies involved, has been to specify the products and services opposed to bulky raw material production and to integrate them into the companies operations. Another success factor has been size rationalisation. Systems thinking with respect to the market and in different environmental values in the environmental cycle have also been successful. In the future, there will probably be room for different niche companies that can meet the needs of the market that the strongly rationalised companies cannot. This study calls for new studies of direct employment effects and multipliers. Continued internationalisation of the biofuel market will give greater competitiveness and press down prices among local producers. The strong competition will mean that the survivors will be those who are flexible and have activities and products integrated and apply systems thinking where contact will be with different parts of the chain and not only with the production of the raw material.