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Are we running on empty on Biofuels?
Biofuels and Climate Change

Presentation by

AGHAM
Samahan ng Nagtataguyod ng Agham at Teknolohiya para sa Sambayanan
What is climate change?
   Accelerated warming of surface due to human-
    related releases of greenhouses gases




                Projections of Surface Temperature Change
Accelerated temperature change

1900’s – hottest century
2005 and 1998 – hottest years;
1995 to 2006, (except 1996) =
Top 12 hottest years since 1850


Increase in temperature
in the last 50 years was
0.13 degrees centigrade/decade
which is twice faster
than the last 100 years
of 0.6 degrees centigrade
Greenhouse Gases

Carbon dioxide CO2 -           54.9% second most common GHG.
makes up about 25% of the natural greenhouse effect. Burning of
oil and gas (for heat, transportation, industry), cement
manufacturing, deforestation and other land uses. Also occurs
naturally through photosynthesis, volcanoes, forest fires.
Methane CH4 -        third most common GHG ; Oil and gas
production, coal mining, rice paddies, dams, landfills. Occurs
naturally as things decompose and from livestock digestion.
Nitrous oxide N2O -              Burning of oil, gas, coal, and wood,
fertilizers, coal mining. Also occurs naturally.
OTHERS: Water vapor, Sulfur hexafluoride SF6,
Perfluocarbons PFCs, Hydroflurocarbons HFCs
Adverse Impacts
   Agriculture
     • Productivity in tropics/subtropics; food shortage
   Water Resources
     • Water availability + quality; floods and droughts;
       hydropower sources
   People's Health
     • Vector and water borne disease, heat stress, nutrition, EWE
       deaths
   Coastal Areas and Fisheries
   Species and Natural Areas
     • Biodiversity loss
   Forests
   Human Displacement
Malaria and Climate

                                                                Relationship between
                                                                temperature and malaria
                                                                parasite development time




      Climate suitability for stable malaria transmission across the diverse topography of Zimbabwe,
            based on United Kingdom Meteorological Office (UKMO) global climate scenarios



        2000                                                    2050




Source: Patz, Jonathan A. and Olson, Sarah H. (2006) Proc. Natl. Acad. Sci. USA 103, 5635-5636
Hurricanes/Typhoons
                                         (Category 4/5)




Source: Science Magazine, Sep 16, 2005
2020s   Crop Yield
         Change
         Source: IPCC TAR




2080s
Developing countries are
        most vulnerable
   Impacts are worse
    −   Lower capacity to adapt
    −   Lack of financial, institutional and
        technological capacity and access to
        knowledge
   Impact disproportionately upon the poorest
    countries and the poorest persons within
    countries
    −   Exacerbating inequities in health status and
        access to adequate food, clean water and
        other resources.
The poor face greatest
challenges from climate
change
                                                        4,000




    2 billion people in




                           Number affected (Millions)
                                                       3,000



    developing countries
                                                                                                Dev'ed
                                                                                                CIT
                                                        2,000
                                                                                                Dev'ing

    affected by climate                                                                         LDC



    related disaster in
                                                        1,000




    the 1990s.                                              -
                                                                1970s   1980s   1990s   2000s


   The rate has
    doubled this decade.
Consumption per capita 2006




Tonnes oil
equivalent



                   Souce: BPStatistical Review of World Energy
Top CO2 emissions
   United States and TNCs
GHGs in RP
   1999, Philippines emitted
    75,998,000 metric tons of
    CO2 or 0.3% of world total
    emission.
   From 1990 to 1999 our CO2
    emission increased by 72%.
Loss of forest cover

   Deforestration
   Mining
What are biofuels?

    Transport fuels from organic
    material
    −   biodiesel (vegetable oils)
    −   bioethanol (sugar and starch)

    Research to commercialise
    “second-generation” biofuels
    from woody material, grasses
    and waste.
    −   ligno-cellulosic matter,
        biomass
Biofuels Act 2006

    Mandate for all gasoline
    users and oil companies to
    blend the fuel they sell with
    either biodiesel or bioethanol

    5% blending of Ethanol into
    Gasoline while 1% Biodiesel
    in Petro diesel for the first 4
    years upon signing of the Bill
    into Law
Biofuels Act stated objectives

    Develop and utilize indigenous renewable and
    sustainably-sourced clean energy sources to
    reduce dependence on imported oil;

    Mitigate toxic and greenhouse gas (GHG)
    emissions;

    Increase rural employment and income; and

    Ensure the availability of alternative and
    renewable clean energy without any detriment
    to the natural ecosystem, biodiversity and
    food reserves of the country.
Biofuels Act objectives

    Replacing fossil fuels with
    biofuels could provide
    environmental benefits
    −   decrease in air pollution (sulfur
        oxides, nitrous oxides, ground-
        level ozone, global-warming
        pollutants, and others)
    −   decrease water pollution from
        petroleum spills
    −   decrease in land destruction
        from oil drilling
Reduction of fossil fuel
                byproducts

    Advocates say that petroleum
    refining has many toxic
    byproducts
    −   heavy metals, xylene,
        benzene, etc.

    These would be replaced with a
    very short list of less toxic
    byproducts of biorefineries
    −   Ethanol production byproducts
BIOFUELS RUSH

    European Union has mandated that 10% of
    transportation fuels be derived from plant
    biomass by 2020.

    In the United States, George Bush stated a
    goal of replacing 20% of U.S. transportation
    fuel with ethanol by 2017.

    China, Japan, India and other countries are
    also working towards fueling their
    burgeoning economies with biofuels.

    Brazil is already producing 40% of
    transportation fuels from sugar cane ethanol
    and soya biodiesel.
Potential of the ethanol
                                  market




Source: EIA/DOE, Comissão Européia; Copersucar
Possible environmental impacts

    Efficiency in energy production

    Increased water use

    Increased fertilizer and
    pesticide use

    Reduction of greenhouse
    gases emission

    Effect on soil and water
    quality;

    Food crop conversion

    Forest conversion
Energy costs in producing
                biofuels

    Hidden cost in fossil fuels production: from
    plant material millions of years old

    Biofuels depend on conversion of energy
    crops to fuels
    −   Net energy value (NEV) of at least 1.3 to 1.67
        (USDA) for corn to ethanol

    However, other costs could make the net
    energy value negative
    −   fermentation/distillation process,
        subsidies, environmental
        pollution/degradation costs
Increased water use

    The water demand of a large
    biofuel facility does have the
    potential to significantly impact
    local water supplies

    Large hectarage converted to
    biofuel production without
    massive irrigation facilities

    Clearing of rain forest and other
    habitats of high nature value for
    biofuel production can cause
    environmental damage.
Increased water pollution

    Ethanol plants discharge
    more concentrated
    sediment- and nutrient
    water back into the
    environment

    TDS (total dissolved solids)
    and chloride levels can rise
Increase in fertilizer use

    Biofuel production rely heavily on petroleum
    inputs
    −   Ammonia fertilizer, etc
    −   Nitrogenous compounds is a major source of
        to ground water and surface water pollution.

    Possible soil abuse and water pollution
    should be avoided

    Increased petroleum inputs might offset
    greenhouse gas reductions
Greenhouse gas emissions

    Biofuels are not “clean” burning;
    they are just a bit of “cleaner”
    burning

    Carbon based fuels still
    contribute air pollutants

    Not the cheapest way to get
    greenhouse gas savings
    −   One of the few measures that
        can be done alongside
        improvements in vehicle
        efficiency
New crops for biofuels

    BT Corn, Jathropa, Grass plants, other perennial
    energy crops (coconuts)

    What are the long term and large scale effects of
    planting these crops?
    −   Effects on food
        production& food security
    −   On agrarian reform
    −   On its long term
        economic value
Deforestation, monoculture
        plantations, and loss of
              biodiversity

    Brazil – planned expansion of sugar cane production,
    from current 6 M has. to 30M has. More

    Argentina – more than 500,000 has of forest lands
    converted to soya plantations (1998-2002)

    Nicaragua -200,000 has slated for palm oil for
    biodiesel

    Indonesia and Malaysia – expansion of palm oil
    plantations further threatened populations of
    orangutan, rhinoceros, tigers and other animals on
    brink of extinction

    Clearing of Peat Forests in SEA
Biomass energy
   Biomass Energy (2002)
     −   Bagasse, charcoal, coconut
         and rice residues,
         wood/wood waste, animal
         waste (78.84-131 mmboe)
   Biofuels Act
     −   5% Ethanol in gasoline, 1%
         biodiesel in first 4 years
     −   Target of 110 ML of
         biodiesel/year
     −   Biofuels for export
   Dependence on foreign
    imported technology to
    process biofuels
Government's grand mega-sale

   Expected foreign
    investments
    −   P177 billion potential investment
        in the renewable energy sector for
        2004-2013 (60% of the P295
        billion in investments)
   EPIRA: IPPs, SPUG
   SPEX in Malampaya
    −   45 % Shell, 45 % ChevronTexaco
    −   10% to be sold
Foreign monopoly firms in energy
Oil
      Shell (US/Dutch), Caltex/Chevron-Texaco (US),
      Petron/ARAMCO (US,Saudi) , TOTAL (French)
Energy
      Mirant (US), KEPCO (Korean), East Asia (UK),
      JAPEX, Forum Asia, Tokyo Consortium
Biofuels
      Saudi Aramco – $300 M expansion for Mindanao
      ethanol plant
      Bronzeoak Phils. (British) – San Carlos Bioenergy
      Inc. (Negros Occ.) bioethanol plant
      Marubeni (Japan) – studying bioethanol plant
      investment
      Toyo Engineering (Japan) – targets 600,000 Ha. for
      coco-biodiesel production

ADB, WB-IMF, AusAID, USAID, AGILE
Petroleum Service Contracts:
    Sold/for sale
   Malampaya (Shell/Chevron Texaco)
   Exxon Mobil in Mindanao, a consortium of BHP
    Billiton (Australia),
   Amerada Hess Ltd. (US), Unocal Sulu (US) Ltd. and
    Sandakan Oil II, LLC in the Sulu Sea
   Alcorn Gold Resources Corp., Trans-Asia Oil and
    Energy Development Corp. and PetroEnergy
    Resources Corp. in the East Visayan basin off
    Leyte island
   EF Durkee and Associates in the Cagayan Valley
    region (Piat-San Jose area)
   Laxmi Organic Industries Ltd. (India) in the
    Mindoro-Cuyo basin west of Mindoro island
   in West Palawan (Ottoman Energy Ltd.,
    Australasian Energy Ltd. and Trans-Asia Oil and
    Energy Development Corp)
   Nido Petroleum Philippines Ltd. off-Palawan
   off-Mindoro with Petronas Carigali
   Philippine National Oil Co.-Exploration Corp.,
   Cagayan basin : Aragorn Power Corp.,
   South Cebu : Phil-Mal Petroenergy Corp.
   Ottoman Energy Ltd. in Northewest Palawan.
Service not profit

Philippines rich in energy
sources
Nationalization not privatization
 Ensure people’s welfare
 Strategic planning for sustained
 growth
People's control over energy
resources
Build R&D capacity in energy
technologies

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Biofuels Climate Change 2008 C

  • 1. Are we running on empty on Biofuels? Biofuels and Climate Change Presentation by AGHAM Samahan ng Nagtataguyod ng Agham at Teknolohiya para sa Sambayanan
  • 2. What is climate change?  Accelerated warming of surface due to human- related releases of greenhouses gases Projections of Surface Temperature Change
  • 3. Accelerated temperature change 1900’s – hottest century 2005 and 1998 – hottest years; 1995 to 2006, (except 1996) = Top 12 hottest years since 1850 Increase in temperature in the last 50 years was 0.13 degrees centigrade/decade which is twice faster than the last 100 years of 0.6 degrees centigrade
  • 4.
  • 5. Greenhouse Gases Carbon dioxide CO2 - 54.9% second most common GHG. makes up about 25% of the natural greenhouse effect. Burning of oil and gas (for heat, transportation, industry), cement manufacturing, deforestation and other land uses. Also occurs naturally through photosynthesis, volcanoes, forest fires. Methane CH4 - third most common GHG ; Oil and gas production, coal mining, rice paddies, dams, landfills. Occurs naturally as things decompose and from livestock digestion. Nitrous oxide N2O - Burning of oil, gas, coal, and wood, fertilizers, coal mining. Also occurs naturally. OTHERS: Water vapor, Sulfur hexafluoride SF6, Perfluocarbons PFCs, Hydroflurocarbons HFCs
  • 6. Adverse Impacts  Agriculture • Productivity in tropics/subtropics; food shortage  Water Resources • Water availability + quality; floods and droughts; hydropower sources  People's Health • Vector and water borne disease, heat stress, nutrition, EWE deaths  Coastal Areas and Fisheries  Species and Natural Areas • Biodiversity loss  Forests  Human Displacement
  • 7.
  • 8. Malaria and Climate Relationship between temperature and malaria parasite development time Climate suitability for stable malaria transmission across the diverse topography of Zimbabwe, based on United Kingdom Meteorological Office (UKMO) global climate scenarios 2000 2050 Source: Patz, Jonathan A. and Olson, Sarah H. (2006) Proc. Natl. Acad. Sci. USA 103, 5635-5636
  • 9. Hurricanes/Typhoons (Category 4/5) Source: Science Magazine, Sep 16, 2005
  • 10. 2020s Crop Yield Change Source: IPCC TAR 2080s
  • 11. Developing countries are most vulnerable  Impacts are worse − Lower capacity to adapt − Lack of financial, institutional and technological capacity and access to knowledge  Impact disproportionately upon the poorest countries and the poorest persons within countries − Exacerbating inequities in health status and access to adequate food, clean water and other resources.
  • 12. The poor face greatest challenges from climate change 4,000 2 billion people in Number affected (Millions)  3,000 developing countries Dev'ed CIT 2,000 Dev'ing affected by climate LDC related disaster in 1,000 the 1990s. - 1970s 1980s 1990s 2000s  The rate has doubled this decade.
  • 13. Consumption per capita 2006 Tonnes oil equivalent Souce: BPStatistical Review of World Energy
  • 14. Top CO2 emissions  United States and TNCs
  • 15. GHGs in RP  1999, Philippines emitted 75,998,000 metric tons of CO2 or 0.3% of world total emission.  From 1990 to 1999 our CO2 emission increased by 72%.
  • 16. Loss of forest cover  Deforestration  Mining
  • 17. What are biofuels?  Transport fuels from organic material − biodiesel (vegetable oils) − bioethanol (sugar and starch)  Research to commercialise “second-generation” biofuels from woody material, grasses and waste. − ligno-cellulosic matter, biomass
  • 18. Biofuels Act 2006  Mandate for all gasoline users and oil companies to blend the fuel they sell with either biodiesel or bioethanol  5% blending of Ethanol into Gasoline while 1% Biodiesel in Petro diesel for the first 4 years upon signing of the Bill into Law
  • 19. Biofuels Act stated objectives  Develop and utilize indigenous renewable and sustainably-sourced clean energy sources to reduce dependence on imported oil;  Mitigate toxic and greenhouse gas (GHG) emissions;  Increase rural employment and income; and  Ensure the availability of alternative and renewable clean energy without any detriment to the natural ecosystem, biodiversity and food reserves of the country.
  • 20. Biofuels Act objectives  Replacing fossil fuels with biofuels could provide environmental benefits − decrease in air pollution (sulfur oxides, nitrous oxides, ground- level ozone, global-warming pollutants, and others) − decrease water pollution from petroleum spills − decrease in land destruction from oil drilling
  • 21. Reduction of fossil fuel byproducts  Advocates say that petroleum refining has many toxic byproducts − heavy metals, xylene, benzene, etc.  These would be replaced with a very short list of less toxic byproducts of biorefineries − Ethanol production byproducts
  • 22. BIOFUELS RUSH  European Union has mandated that 10% of transportation fuels be derived from plant biomass by 2020.  In the United States, George Bush stated a goal of replacing 20% of U.S. transportation fuel with ethanol by 2017.  China, Japan, India and other countries are also working towards fueling their burgeoning economies with biofuels.  Brazil is already producing 40% of transportation fuels from sugar cane ethanol and soya biodiesel.
  • 23. Potential of the ethanol market Source: EIA/DOE, Comissão Européia; Copersucar
  • 24. Possible environmental impacts  Efficiency in energy production  Increased water use  Increased fertilizer and pesticide use  Reduction of greenhouse gases emission  Effect on soil and water quality;  Food crop conversion  Forest conversion
  • 25. Energy costs in producing biofuels  Hidden cost in fossil fuels production: from plant material millions of years old  Biofuels depend on conversion of energy crops to fuels − Net energy value (NEV) of at least 1.3 to 1.67 (USDA) for corn to ethanol  However, other costs could make the net energy value negative − fermentation/distillation process, subsidies, environmental pollution/degradation costs
  • 26. Increased water use  The water demand of a large biofuel facility does have the potential to significantly impact local water supplies  Large hectarage converted to biofuel production without massive irrigation facilities  Clearing of rain forest and other habitats of high nature value for biofuel production can cause environmental damage.
  • 27. Increased water pollution  Ethanol plants discharge more concentrated sediment- and nutrient water back into the environment  TDS (total dissolved solids) and chloride levels can rise
  • 28. Increase in fertilizer use  Biofuel production rely heavily on petroleum inputs − Ammonia fertilizer, etc − Nitrogenous compounds is a major source of to ground water and surface water pollution.  Possible soil abuse and water pollution should be avoided  Increased petroleum inputs might offset greenhouse gas reductions
  • 29. Greenhouse gas emissions  Biofuels are not “clean” burning; they are just a bit of “cleaner” burning  Carbon based fuels still contribute air pollutants  Not the cheapest way to get greenhouse gas savings − One of the few measures that can be done alongside improvements in vehicle efficiency
  • 30. New crops for biofuels  BT Corn, Jathropa, Grass plants, other perennial energy crops (coconuts)  What are the long term and large scale effects of planting these crops? − Effects on food production& food security − On agrarian reform − On its long term economic value
  • 31. Deforestation, monoculture plantations, and loss of biodiversity  Brazil – planned expansion of sugar cane production, from current 6 M has. to 30M has. More  Argentina – more than 500,000 has of forest lands converted to soya plantations (1998-2002)  Nicaragua -200,000 has slated for palm oil for biodiesel  Indonesia and Malaysia – expansion of palm oil plantations further threatened populations of orangutan, rhinoceros, tigers and other animals on brink of extinction  Clearing of Peat Forests in SEA
  • 32. Biomass energy  Biomass Energy (2002) − Bagasse, charcoal, coconut and rice residues, wood/wood waste, animal waste (78.84-131 mmboe)  Biofuels Act − 5% Ethanol in gasoline, 1% biodiesel in first 4 years − Target of 110 ML of biodiesel/year − Biofuels for export  Dependence on foreign imported technology to process biofuels
  • 33. Government's grand mega-sale  Expected foreign investments − P177 billion potential investment in the renewable energy sector for 2004-2013 (60% of the P295 billion in investments)  EPIRA: IPPs, SPUG  SPEX in Malampaya − 45 % Shell, 45 % ChevronTexaco − 10% to be sold
  • 34. Foreign monopoly firms in energy Oil Shell (US/Dutch), Caltex/Chevron-Texaco (US), Petron/ARAMCO (US,Saudi) , TOTAL (French) Energy Mirant (US), KEPCO (Korean), East Asia (UK), JAPEX, Forum Asia, Tokyo Consortium Biofuels Saudi Aramco – $300 M expansion for Mindanao ethanol plant Bronzeoak Phils. (British) – San Carlos Bioenergy Inc. (Negros Occ.) bioethanol plant Marubeni (Japan) – studying bioethanol plant investment Toyo Engineering (Japan) – targets 600,000 Ha. for coco-biodiesel production ADB, WB-IMF, AusAID, USAID, AGILE
  • 35. Petroleum Service Contracts: Sold/for sale  Malampaya (Shell/Chevron Texaco)  Exxon Mobil in Mindanao, a consortium of BHP Billiton (Australia),  Amerada Hess Ltd. (US), Unocal Sulu (US) Ltd. and Sandakan Oil II, LLC in the Sulu Sea  Alcorn Gold Resources Corp., Trans-Asia Oil and Energy Development Corp. and PetroEnergy Resources Corp. in the East Visayan basin off Leyte island  EF Durkee and Associates in the Cagayan Valley region (Piat-San Jose area)  Laxmi Organic Industries Ltd. (India) in the Mindoro-Cuyo basin west of Mindoro island  in West Palawan (Ottoman Energy Ltd., Australasian Energy Ltd. and Trans-Asia Oil and Energy Development Corp)  Nido Petroleum Philippines Ltd. off-Palawan  off-Mindoro with Petronas Carigali  Philippine National Oil Co.-Exploration Corp.,  Cagayan basin : Aragorn Power Corp.,  South Cebu : Phil-Mal Petroenergy Corp.  Ottoman Energy Ltd. in Northewest Palawan.
  • 36. Service not profit Philippines rich in energy sources Nationalization not privatization Ensure people’s welfare Strategic planning for sustained growth People's control over energy resources Build R&D capacity in energy technologies