Biofuels: the RTFO, Mass Adoption and the Next Generation


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Review of next generation biofuels in the contect of the UK and the RTFO

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Biofuels: the RTFO, Mass Adoption and the Next Generation

  1. 1. NNFCCBiofuels: the RTFO, Mass Adoption and the Next Generation Dr Jeremy Tomkinson CEO NNFCC 8th November 2012
  2. 2. NNFCC What is an Advanced BiofuelSeveral definitions around – US: Must reduce life cycle emissions by 50%, but with mandated supply of 21bl gallons by 2022. Corn Starch ethanol excluded but stalk and husk will qualify – UK / EU: Most widely accepted is that adv fuels are derived from non food feedstocks such as wood, residues and wastes. NO mandated supply and no specific advanced biofuel policies aside of simple accountancy mechanisms in the RED – Some definitions have quoted a ‘drop in fuel’ but as many of these fuels use plant oils they would be unacceptable to be termed advanced
  3. 3. NNFCC Latest AdvancementsMany technology platforms currently under development in the US
  4. 4. NNFCC Why is the US attracting so much investment in Advanced Biofuels• Clear policy differentiation between 1st gen and advanced fuels• Increased target over and above 1st gen fuels mandated for the next 10 years at least• US Government has provided several financial mechanisms including grants and loan guarantees to lower investor risk• The double and quadruple counting will be heavily discounted by investors
  5. 5. NNFCC Improved Green House Gas Savings 180 159 163 160 140 120 115g CO2 eq/km 100 82 80 74 60 49 44 40 34 21 20 20 9 0
  6. 6. NNFCC Aviation fuel: The requirement is for a “drop in” kerosene • Expensive feedstock • Limited waste availabilities HRJ (HVO) • Sustainability and poor yield/ha • Emerging commercially • Expensive process • Not yet provenBiomass to liquids • Demo plants only now emerging • Potential to convert solid wastes • Shell/VirentHydrocarbons from • Heterotrophic algae (e.g. Solazyme, BP/Martek) • Expensive, need source of low cost waste sugars sugars • Sugars available from energy cane, starches and/or LC biomass
  7. 7. NNFCC Aviation fuel is disadvantaged vs power (RO) and road fuel (RTFO) 250 Product value, £/tonne dry biomass processed 200 150 100 50 0 power (direct power (gas power (IGCC) road fuel (at aviation fuel biomass firing) engine from from syngas current approx. syngas) RTFC price) - no elec fuel value RO value CCL value RTFO (2 certs where appropriate) EU ETS (from 2013)© NNFCC
  8. 8. NNFCC Sustainable Biofuels Need Market and Policy Certainty Non Land using biofuels are available now but more widespread adoption will require policy intervention viz • Timeframes at least to 2030 • Independent trajectory from 1st gen fuels - vol or energy based • A guaranteed financial mechanism – ideally one which helps to secure Capex and lower investor risk. Hard to see how counting 4 times will actually help in transition phase If we want high efficiency biofuels a clear strategy and delivery plan must be rapidly developed - these technologies will struggle unless policy helps to lower the financial risks8
  9. 9. NNFCC The NNFCC provides high quality, industry leading consultancy for more information contact us Email – Twitter - @NNFCC +44 (0) 1904 435182• Future Market Analysis • Technology evaluation & associated• Feedstock Logistics Planning due diligence• Sustainability Strategy • Project feasibility assessment Development • Policy and regulatory support