Fall Newsletter 2011 Sustainability Solid Biomass Finalsergiougarte
1. The bioeconomy in Europe generated €2 trillion in annual turnover in 2009 and employed 21.5 million people, half in agriculture. However, uncertainties remain regarding sustainability standards and policies for solid biomass and biobased products.
2. While trade in solid biomass is growing, the European Union currently only requires sustainability proofs for biofuels, not solid biomass, resulting in differing approaches among member states. There is a need for more comprehensive and standardized sustainability criteria for solid biomass.
3. The wood pellet market has grown significantly but lacks uniform approaches to supply contracts, product specifications, and sustainability, which a new wood pellet exchange in Amsterdam aims to address. However, long-term
This document discusses targets and criteria for biofuels and bioenergy in the Netherlands. It outlines the Netherlands' commitment to reducing greenhouse gas emissions and details current bioenergy usage. Concerns about the sustainability of biofuels production are addressed through EU and national certification requirements. The Netherlands aims to source 10% of transport energy from renewable sources by 2020 through increased electric vehicles, biogas, and sustainable first and second generation biofuels.
When it comes to the bio-based product market, are we climbing the slope of enlightenment or stuck in the trough of disillusionment? It’s now nearly 20 years since polylactic acid entered the market as a promising new commodity plastic, so what’s changed and is the industry developing as quickly as expected?
Bio-based products compete in a world dominated by fossil derived chemicals and materials. These fossil derived incumbents have the market advantage of proven technology and mature value chains, only through long-term innovation can bio-based products hope to build a significant market share.
However, too often innovation is considered solely in the context of technical development. A far more complicated series of actions is required to transform an inventions or scientific discovery into a product or process which provides value, in other words, something innovative.
A key requirement for successful innovation is the legitimacy of the activity. Without legitimacy, policy and funding support is likely to remain poor and market demand will fail to materialise.
In this presentation we’ll look at the current bio-based product market and ask if its proponents are doing enough to convince stakeholders of its legitimacy.
The document summarizes a presentation by David Newman from the Bio-based and Biodegradable Industries Association (BBIA) about developing the bioeconomy in the UK. Newman argues that the UK is not currently a major player in the bioeconomy despite having strong research, infrastructure, and expertise. He outlines three key actions needed to boost the UK bioeconomy: 1) improving waste management and the soil-to-soil loop, 2) implementing green public procurement policies, and 3) promoting behavioral changes through bans, taxes, and incentives. Newman claims these actions could create more jobs, investment, exports and reduce imports, CO2 and waste.
Fall Newsletter 2011 Sustainability Solid Biomass Finalsergiougarte
1. The bioeconomy in Europe generated €2 trillion in annual turnover in 2009 and employed 21.5 million people, half in agriculture. However, uncertainties remain regarding sustainability standards and policies for solid biomass and biobased products.
2. While trade in solid biomass is growing, the European Union currently only requires sustainability proofs for biofuels, not solid biomass, resulting in differing approaches among member states. There is a need for more comprehensive and standardized sustainability criteria for solid biomass.
3. The wood pellet market has grown significantly but lacks uniform approaches to supply contracts, product specifications, and sustainability, which a new wood pellet exchange in Amsterdam aims to address. However, long-term
This document discusses targets and criteria for biofuels and bioenergy in the Netherlands. It outlines the Netherlands' commitment to reducing greenhouse gas emissions and details current bioenergy usage. Concerns about the sustainability of biofuels production are addressed through EU and national certification requirements. The Netherlands aims to source 10% of transport energy from renewable sources by 2020 through increased electric vehicles, biogas, and sustainable first and second generation biofuels.
When it comes to the bio-based product market, are we climbing the slope of enlightenment or stuck in the trough of disillusionment? It’s now nearly 20 years since polylactic acid entered the market as a promising new commodity plastic, so what’s changed and is the industry developing as quickly as expected?
Bio-based products compete in a world dominated by fossil derived chemicals and materials. These fossil derived incumbents have the market advantage of proven technology and mature value chains, only through long-term innovation can bio-based products hope to build a significant market share.
However, too often innovation is considered solely in the context of technical development. A far more complicated series of actions is required to transform an inventions or scientific discovery into a product or process which provides value, in other words, something innovative.
A key requirement for successful innovation is the legitimacy of the activity. Without legitimacy, policy and funding support is likely to remain poor and market demand will fail to materialise.
In this presentation we’ll look at the current bio-based product market and ask if its proponents are doing enough to convince stakeholders of its legitimacy.
The document summarizes a presentation by David Newman from the Bio-based and Biodegradable Industries Association (BBIA) about developing the bioeconomy in the UK. Newman argues that the UK is not currently a major player in the bioeconomy despite having strong research, infrastructure, and expertise. He outlines three key actions needed to boost the UK bioeconomy: 1) improving waste management and the soil-to-soil loop, 2) implementing green public procurement policies, and 3) promoting behavioral changes through bans, taxes, and incentives. Newman claims these actions could create more jobs, investment, exports and reduce imports, CO2 and waste.
Each month we review the latest news and select key announcements and commentary from across the biobased chemicals and materials sector including biodegradable and compostable plastic
This document discusses feeding a bioeconomy through the use of sustainably harvested biomass. It notes that biomass can play a significant role in meeting climate targets if prioritized for the most valuable end-uses. However, excessive biomass consumption could damage sustainability efforts, so careful policy management is needed to guide biomass to its most needed uses. The document also explores options for using biomass to produce fuels, chemicals, and materials while following principles of cascading use and carbon capture and storage to contribute to climate change mitigation.
Nnfcc market review bio based products issue twentyfive april 2014NNFCC
This document provides a summary of the April 2014 issue of the NNFCC Market Review on biobased products. It discusses research and developments in areas such as wood biorefining, industrial biotechnology, platform chemicals, and new product developments. Key highlights include a new biobased chemistry network in the US, simplified certification for biobased sugarcane, and new technologies for producing chemicals like adipic acid and glucaric acid from renewable feedstocks.
The role of biomass in the drive to Net-Zero?NNFCC
At the UK Biomass Biorefinery Network (BBNet) Annual Conference 13-15th October 2021, NNFCC's Director and Lead Consultant on Biobased Products, Dr Adrian Higson, gave a presentation:
'The role of biomass in the drive to Net Zero?'
The UK Government aims to achieve net-zero carbon emissions by 2050. The Climate Change Committee (CCC) conclude that sustainable biomass can play a significant role in achieving this, providing it is prioritised for the most valuable end-uses.
In this study, some typical cases are presented where promotion mechanisms for advanced
biofuels have had an impact on markets and trade, or may be anticipated to impact markets
and trade in the future.
This presentation was delivered on the 21st March 2013 at SINTEF in Trondheim, Norway. It looks at the developing bioeconomy with a focus on the biobased chemical and polymers market.
The document discusses the European Union's strategy for a sustainable bioeconomy. It defines bioeconomy as an economy using biological resources and waste as inputs for food, industrial, and energy production. The strategy has three pillars: 1) investment in bioeconomy research, innovation, and skills; 2) developing bioeconomy markets and competitiveness through sustainable production and converting waste; and 3) reinforced policy coordination and stakeholder engagement. Examples of research areas include developing bioplastics from forest resources and alternative fish feeds. The strategy aims to create jobs and green growth through more efficient resource use, such as converting food waste to bioenergy.
Bio-based products - Opportunities and ChallengesNNFCC
The document discusses opportunities and challenges for bio-based products derived from renewable biological resources. It notes that while biomass has strengths like carbon capture and reduced fossil fuel usage, developing bio-based products faces hurdles around feedstock processing and competition. Overcoming issues like feedstock supply and demonstrating environmental benefits could help realize opportunities to develop bio-chemical markets and supply chains. However, challenges remain around resource requirements, technological progress, and market development timelines.
The document discusses challenges and actions related to sustainable consumption and production (SCP). It summarizes the SCP/Sustainable Industrial Policy Action Plan adopted by the European Commission in 2008. The plan aims to promote more resource efficient and green growth through better products, smarter consumption, leaner production, and global cooperation. It establishes forums and initiatives to engage stakeholders on issues like energy efficiency, labeling, and sustainable supply chains. The challenges of measuring progress, incentivizing sustainable behaviors, and addressing global SCP are also noted.
The complexity and diversity of issues on the table of EU policy makers is set to increase in the coming months. This comes on top of European challenges old and new which threaten the very essence of the European Union project.
Read on to learn about the latest policy developments with this monthly alert from our team in Brussels. For real-time updates, follow @MSL_Brussels or reach out to us on Twitter @msl_group.
From Brussels to Paris and Beyond - ON Energy Report November '15MSL
MSLGROUP's latest edition of ON Energy Report looks at the evolving European Energy landscape in the context of the forthcoming jamboree that is COP21. With carbon reduction at the top of the agenda, we take a look at some of the challenges and opportunities that we face, and some of the communications needs that the industry has to grapple with.
For future updates, please contact Nick Bastin, Partner, CNC and Head of MSLGROUP’s EMEA Energy Practice at nick.bastin@cnc-communications.com.
Do share your queries/feedback with our team at @CNC_comms or reach out to us on twitter @msl_group.
2015: A Critical Year for the Energy Union - MSLGROUP Energy Report March '15MSL
MSLGROUP's latest edition of ON Energy Report looks at how 2015 will be a year of change for the European energy landscape across markets, politics, regulation and innovation.
The sixth report from MSLGROUP's European Energy practice, “2015: a year of unprecedented change?" carries in-depth commentary from the company's energy experts in Brussels, France, Italy, Sweden, the Netherlands and the UK. We hope you enjoy this latest snapshot from across the European energy communications landscape.
For future updates, please contact Nick Bastin, Partner, CNC and Head of MSLGROUP’s EMEA Energy Practice at nick.bastin@cnc-communications.com.
Do share your queries/feedback with our team at @CNC_comms or reach out to us on twitter @msl_group.
The article provides an overview of agricultural biomass potential and utilization in the Western Balkans. It notes that while agricultural production is significant, agricultural biomass remains underutilized compared to woody biomass. Issues include higher costs of combustion technologies for agricultural biomass due to its lower energy value and higher ash content. Only a portion of harvesting residues can be removed to preserve soil fertility. Governments in the region do not sufficiently encourage agricultural biomass utilization.
The document discusses biofuels as an alternative to fossil fuels for reducing transport carbon emissions in the East of England region. It finds that while biofuels can significantly reduce emissions, their impacts depend on production methods and sustainability standards. The region has potential to support biofuel production through crops, refineries, and research centers. The report recommends the panel promote expertise in the region to advance biofuels, raise public awareness of their benefits, and encourage development of sustainability standards.
Nnfcc market review biofuels issue twentyfive april 2014NNFCC
This document provides a summary of the April 2014 issue of the NNFCC Market Review, which summarizes the latest news from across the biofuels market. The document discusses recent policy developments in the EU regarding state aid for renewable energy projects. It also summarizes news about the bioethanol, biomethane, advanced biofuels, and events sections of the market review.
This document provides an overview of the Hands off the Land project which aims to raise awareness about land grabbing in Europe. It documents cases of transnational land grabs in various countries and presents fact sheets and studies. The project is a joint initiative of several organizations working to end land grabbing. It acknowledges funding support from the European Commission but notes that the views expressed are those of the partner organizations, not the EC.
A Foreseeable Disaster: The European Union’s agroenergy policies and the glob...FIAN Norge
The European Union's Renewable Energy Directive mandates that 20% of the EU's overall energy and 10% of transport energy come from renewable sources by 2020. While the directive supported development of "second generation" agrofuels, member states' plans show the transport target will be met through first generation agrofuels like biodiesel and bioethanol. Despite claims that newer technologies could produce agrofuels more sustainably, these second generation fuels have so far proven more difficult and energy-intensive to develop than expected.
This document discusses challenges and the future of biofuels. It summarizes that while biofuels can help reduce greenhouse gas emissions and increase fuel security, their production and use has limits and risks increasing food prices and displacing people. Factors like drought have also contributed to rising food costs. Sustainable production that protects communities and the environment is important. Ireland is supporting biofuel development through tax relief and plans a biofuels obligation in 2009. The EU may set a 10% biofuels target by 2020 but sustainable criteria are still being developed.
Nnfcc market review biofuels issue nineteen october 2013NNFCC
The document provides a summary of developments in the global biofuels market in October 2013. Key points include:
1) The world's largest cellulosic ethanol refinery plant was inaugurated in Crescentino, Italy, marking the commercialization of advanced biofuels in Europe.
2) However, the EU advanced biofuel industry suffered a setback when proposed reforms to biofuel mandates were delayed for at least another year due to upcoming elections.
3) In the US, the LIBERTY cellulosic ethanol plant is nearing completion and several states are now offering the public E15 blended fuel at pumps, indicating growing acceptance of biofuels.
Each month we review the latest news and select key announcements and commentary from across the biobased chemicals and materials sector including biodegradable and compostable plastic
This document discusses feeding a bioeconomy through the use of sustainably harvested biomass. It notes that biomass can play a significant role in meeting climate targets if prioritized for the most valuable end-uses. However, excessive biomass consumption could damage sustainability efforts, so careful policy management is needed to guide biomass to its most needed uses. The document also explores options for using biomass to produce fuels, chemicals, and materials while following principles of cascading use and carbon capture and storage to contribute to climate change mitigation.
Nnfcc market review bio based products issue twentyfive april 2014NNFCC
This document provides a summary of the April 2014 issue of the NNFCC Market Review on biobased products. It discusses research and developments in areas such as wood biorefining, industrial biotechnology, platform chemicals, and new product developments. Key highlights include a new biobased chemistry network in the US, simplified certification for biobased sugarcane, and new technologies for producing chemicals like adipic acid and glucaric acid from renewable feedstocks.
The role of biomass in the drive to Net-Zero?NNFCC
At the UK Biomass Biorefinery Network (BBNet) Annual Conference 13-15th October 2021, NNFCC's Director and Lead Consultant on Biobased Products, Dr Adrian Higson, gave a presentation:
'The role of biomass in the drive to Net Zero?'
The UK Government aims to achieve net-zero carbon emissions by 2050. The Climate Change Committee (CCC) conclude that sustainable biomass can play a significant role in achieving this, providing it is prioritised for the most valuable end-uses.
In this study, some typical cases are presented where promotion mechanisms for advanced
biofuels have had an impact on markets and trade, or may be anticipated to impact markets
and trade in the future.
This presentation was delivered on the 21st March 2013 at SINTEF in Trondheim, Norway. It looks at the developing bioeconomy with a focus on the biobased chemical and polymers market.
The document discusses the European Union's strategy for a sustainable bioeconomy. It defines bioeconomy as an economy using biological resources and waste as inputs for food, industrial, and energy production. The strategy has three pillars: 1) investment in bioeconomy research, innovation, and skills; 2) developing bioeconomy markets and competitiveness through sustainable production and converting waste; and 3) reinforced policy coordination and stakeholder engagement. Examples of research areas include developing bioplastics from forest resources and alternative fish feeds. The strategy aims to create jobs and green growth through more efficient resource use, such as converting food waste to bioenergy.
Bio-based products - Opportunities and ChallengesNNFCC
The document discusses opportunities and challenges for bio-based products derived from renewable biological resources. It notes that while biomass has strengths like carbon capture and reduced fossil fuel usage, developing bio-based products faces hurdles around feedstock processing and competition. Overcoming issues like feedstock supply and demonstrating environmental benefits could help realize opportunities to develop bio-chemical markets and supply chains. However, challenges remain around resource requirements, technological progress, and market development timelines.
The document discusses challenges and actions related to sustainable consumption and production (SCP). It summarizes the SCP/Sustainable Industrial Policy Action Plan adopted by the European Commission in 2008. The plan aims to promote more resource efficient and green growth through better products, smarter consumption, leaner production, and global cooperation. It establishes forums and initiatives to engage stakeholders on issues like energy efficiency, labeling, and sustainable supply chains. The challenges of measuring progress, incentivizing sustainable behaviors, and addressing global SCP are also noted.
The complexity and diversity of issues on the table of EU policy makers is set to increase in the coming months. This comes on top of European challenges old and new which threaten the very essence of the European Union project.
Read on to learn about the latest policy developments with this monthly alert from our team in Brussels. For real-time updates, follow @MSL_Brussels or reach out to us on Twitter @msl_group.
From Brussels to Paris and Beyond - ON Energy Report November '15MSL
MSLGROUP's latest edition of ON Energy Report looks at the evolving European Energy landscape in the context of the forthcoming jamboree that is COP21. With carbon reduction at the top of the agenda, we take a look at some of the challenges and opportunities that we face, and some of the communications needs that the industry has to grapple with.
For future updates, please contact Nick Bastin, Partner, CNC and Head of MSLGROUP’s EMEA Energy Practice at nick.bastin@cnc-communications.com.
Do share your queries/feedback with our team at @CNC_comms or reach out to us on twitter @msl_group.
2015: A Critical Year for the Energy Union - MSLGROUP Energy Report March '15MSL
MSLGROUP's latest edition of ON Energy Report looks at how 2015 will be a year of change for the European energy landscape across markets, politics, regulation and innovation.
The sixth report from MSLGROUP's European Energy practice, “2015: a year of unprecedented change?" carries in-depth commentary from the company's energy experts in Brussels, France, Italy, Sweden, the Netherlands and the UK. We hope you enjoy this latest snapshot from across the European energy communications landscape.
For future updates, please contact Nick Bastin, Partner, CNC and Head of MSLGROUP’s EMEA Energy Practice at nick.bastin@cnc-communications.com.
Do share your queries/feedback with our team at @CNC_comms or reach out to us on twitter @msl_group.
The article provides an overview of agricultural biomass potential and utilization in the Western Balkans. It notes that while agricultural production is significant, agricultural biomass remains underutilized compared to woody biomass. Issues include higher costs of combustion technologies for agricultural biomass due to its lower energy value and higher ash content. Only a portion of harvesting residues can be removed to preserve soil fertility. Governments in the region do not sufficiently encourage agricultural biomass utilization.
The document discusses biofuels as an alternative to fossil fuels for reducing transport carbon emissions in the East of England region. It finds that while biofuels can significantly reduce emissions, their impacts depend on production methods and sustainability standards. The region has potential to support biofuel production through crops, refineries, and research centers. The report recommends the panel promote expertise in the region to advance biofuels, raise public awareness of their benefits, and encourage development of sustainability standards.
Nnfcc market review biofuels issue twentyfive april 2014NNFCC
This document provides a summary of the April 2014 issue of the NNFCC Market Review, which summarizes the latest news from across the biofuels market. The document discusses recent policy developments in the EU regarding state aid for renewable energy projects. It also summarizes news about the bioethanol, biomethane, advanced biofuels, and events sections of the market review.
This document provides an overview of the Hands off the Land project which aims to raise awareness about land grabbing in Europe. It documents cases of transnational land grabs in various countries and presents fact sheets and studies. The project is a joint initiative of several organizations working to end land grabbing. It acknowledges funding support from the European Commission but notes that the views expressed are those of the partner organizations, not the EC.
A Foreseeable Disaster: The European Union’s agroenergy policies and the glob...FIAN Norge
The European Union's Renewable Energy Directive mandates that 20% of the EU's overall energy and 10% of transport energy come from renewable sources by 2020. While the directive supported development of "second generation" agrofuels, member states' plans show the transport target will be met through first generation agrofuels like biodiesel and bioethanol. Despite claims that newer technologies could produce agrofuels more sustainably, these second generation fuels have so far proven more difficult and energy-intensive to develop than expected.
This document discusses challenges and the future of biofuels. It summarizes that while biofuels can help reduce greenhouse gas emissions and increase fuel security, their production and use has limits and risks increasing food prices and displacing people. Factors like drought have also contributed to rising food costs. Sustainable production that protects communities and the environment is important. Ireland is supporting biofuel development through tax relief and plans a biofuels obligation in 2009. The EU may set a 10% biofuels target by 2020 but sustainable criteria are still being developed.
Nnfcc market review biofuels issue nineteen october 2013NNFCC
The document provides a summary of developments in the global biofuels market in October 2013. Key points include:
1) The world's largest cellulosic ethanol refinery plant was inaugurated in Crescentino, Italy, marking the commercialization of advanced biofuels in Europe.
2) However, the EU advanced biofuel industry suffered a setback when proposed reforms to biofuel mandates were delayed for at least another year due to upcoming elections.
3) In the US, the LIBERTY cellulosic ethanol plant is nearing completion and several states are now offering the public E15 blended fuel at pumps, indicating growing acceptance of biofuels.
The document provides a feasibility and financial study for a proposed biodiesel production laboratory project at the German-Mongolian Institute for Resources and Technology (GMIT). It discusses the worldwide and local biodiesel industries, analyzes the costs associated with establishing a small-scale biodiesel production facility, and models the financial viability of the proposed GMIT Biodiesel Project. The study concludes that under favorable pricing conditions, the project can sustain itself financially and provide educational benefits to students while also producing value for the local community through recycling of waste vegetable oil into biodiesel and other products.
Over the last decade, biomass of various kinds has become an increasingly commonly used fuel for electricity generation, particularly in the European Union, which mandated ambitious threshold targets for the share of renewables in total electricity generation.
Wood chips and pellets have taken a large share of biomass production, not just in Europe, but also parts of Asia as well. In fact, according to the US International Trade Commission, production of wood pellets in the US for export to these locations increased 400% between 2008 and 2014 to help meet the increased demand. The US International Trade Commission further states that, “estimates of global wood pellet consumption vary, but are currently in the range of 22 – 25 million metric tons (Mt) annually. This projected to rise to between 50 and 80 million Mt by 2020. At 19 million Mt in 2013, the EU accounted for 85 percent of global consumption of wood pellets.”
This white paper examines some of the challenges around managing and optimizing biomass supply chains and discusses Generation 10’s Commodity Manager as a comprehensive software solution to these challenges.
This document discusses the European Union's biofuels policy and its role in reducing greenhouse gas emissions from transportation. It outlines that transportation accounts for about a third of EU energy consumption and a quarter of emissions. The EU has promoted biofuels since 2000 to help decarbonize transportation, reaching a consumption level of 5-6% of liquid fuels. However, controversies have emerged around indirect land use changes from biofuel production and potential competition with food crops. In response, the EU adopted a new directive in 2015 to address these issues and better account for indirect emissions in its sustainability criteria for biofuels.
Sustainability Regulations Effects on ethanol tradepetitsuix
Presentation on effect of sustainability regulations on future world trade of ethanol made at the FO Licht World Ethanol Conference, Geneva 4th of November 2010
Seminar: Les Levidow & Helena Paul on biofuelsSTEPS Centre
Helena Paul, Econexus, and Les Levidow, Open University, give a STEPS Centre seminar on global biofuel crops; integrating an agri-energy industry, driving dispossession.
This document summarizes trends in global production of second generation biofuels. It discusses that commercial production of cellulosic biofuels began in 2015, with 67 second generation biofuel facilities now operating worldwide, over a third at commercial scale. The US has the most commercial second generation plants. The document reviews biofuel policies and production in regions including Africa, Asia, Europe, North America, and South America. Key challenges to further development include high capital costs and competition from low fossil fuel prices.
This document provides an overview of the Strategic Innovation and Research Agenda (SIRA) for the Bio-based Industries Joint Undertaking (BBI), a public-private partnership between the EU and the Bio-based Industries Consortium. The SIRA outlines 5 value chains for bio-based industries to develop by 2020 and 2030, focusing on advanced biofuels, chemicals, materials, and biorefineries using sustainable feedstocks. It also provides long-term strategic objectives for the bioeconomy, including increased biomass supply and job creation, reduced imports and emissions, and a more competitive bio-based market in Europe.
Nnfcc market review feedstocks issue nineteen october 2013NNFCC
This document summarizes the key events and announcements from the biomass feedstock sector reported in the NNFCC Market Review for October 2013. It provides an overview of developments in the areas of land use, wood, crops, and waste. Specifically, it highlights studies finding potential for bioenergy production from abandoned agricultural lands, reports concluding wood pellets can provide rapid carbon savings, expansion of the Canadian and US pellet industries, and estimates of multi-billion pound savings available from reducing waste in the UK grocery sector.
This annual report provides an overview of the activities of the European Biomass Association (AEBIOM) in 2014. It discusses AEBIOM's lobbying efforts, including position papers published on topics like energy dependency and security. It also describes AEBIOM's networks, including the European Pellet Council, which had a successful year for pellet certification under the ENplus scheme. The report summarizes key statistics on the growth of the European bioenergy sector.
The document discusses the future of the Common Agricultural Policy (CAP) and focuses on producing public goods through agriculture. It outlines challenges like climate change and calls for shifting CAP support towards market and fiscal instruments that incentivize ecosystem production and compensate farmers for related income losses. The new paradigm is the production of public goods like carbon sequestration and biodiversity protection through environmental markets and payments for eco-friendly farming practices.
The role of bioenergy in the uk's decarbonisation strategyDecarboN8
1) The document discusses the role of bioenergy in the UK's decarbonization strategy, with a focus on biofuels for transport.
2) It provides an overview of bioenergy, including types of biomass feedstocks and bioenergy pathways.
3) The UK has significant potential to increase domestic biomass production through agricultural and forestry residues as well as energy crops, but modeling shows biomass demands could exceed domestic supply.
The role of bioenergy in the uk's decarbonisation strategy
SQ Consult Fall Newsletter 2011
1. Newsletter SQ Consult - Fall 2011 issue
Biobased business: After international trade of biofuels, solid biomass flourishes.
Same risks, same solutions?
Jinke van Dami, Sergio Ugarteii, Laetitia Ouilletiii
Bio-based businesses keep steadily moving towards the creation of new food, industrial and energy
products. Various biomass streams, from different origin, and going through a variety of conversion routes,
cause different levels of environmental and social impacts. Pressure on arable land, peat lands, forested
regions, and water use is amounting high. Labour and property rights may be severely endangered in
countries of biomass origin, especially in those countries with weak law enforcement instruments or with a
poor track record on these issues. Key aspect for further development and upscale of these bio-based
businesses is to implementat proper sustainability proofs. The proof of biomass sustainability gives
confidence to consumers, and allows for the implementation of supporting policies by States.
The European Union requires sustainability proof for biofuels, but not for solid biomass. This policy gap
resulted in the fact that some Member States have defined their own –but differing- biomass sustainability
obligation. Also some of the largest energy utilities have defined their own voluntary programs. While trade
in solid biomass is growing and feedstock competition with second-generation biofuels is upcoming there is
an urgent need for a more comprehensive and more standardised approach to sustainability criteria for
solid biomass.
The principle of value in a bio-based economy
The EC supported Knowledge Biobased Economy (KBBE) network has estimated that the bio-based
economy in Europe had an annual turnover of 2 trillion Euros in annual turnover in 2009, and employed
21.5 million people, half of them in agricultural activities. These numbers are definitely worth attention of
entrepreneurs, utilities, petrochemical industries, and policy makers, especially in the midst of the current
economic crisis.
Dedicated programs implemented in the EU, the US, and other regions such as Canada, Japan and Malaysia,
are promoting industrial crops and other sources of biomass for high-value products such as biobased
materials for the health industry. At the same time we see South America and Africa to develop themselves
as supply regions.
Despite this rapid growth, the biomass industry is still volatile and unpredictable. Access to sustainable
feedstock in sufficient quantities, guaranteed quality and competitive prices is a market requisite to
develop a robust bio-based economy, but it is not sufficient to move towards a sustainable economy.
Determining the best and highest value use of biomass through smart cascading and reuse of waste
materials is a complex matter, though required. Value is established by anticipation of future demand and
benefits, foreseen changes in market and policies, competition, market substitution and consistent use of
the product. Doing so, while at the same time ensuring sustainability and food security, requires a joint
effort between economic operators and policy makers for levelling the playing field and for setting the
course of a bio-based economy.
1
2. The biofuels business has shown that uncertainties in policies and regulations cause the market to stagnate.
Companies await upcoming decisions that will have an effect on their future strategies. These uncertainties
should be avoided in the solid biomass market for electricity and heat now, and soon for the rest of
products in the bio-based economy. This is possible by providing clarity in long-term policy objectives
especially with regard to sustainability. A step-by-step approach can give the market a direction while the
specific requirements are designed with transparency and with the collaboration of stakeholders along the
way.
The case of biobased energy products
Pike Research forecasted a few months ago that worldwide capital investment in biomass infrastructure
will be maintained at around 30 billion USD annually for the next five years. Europe is by far the most
important market for wood pellets; biomass consumption for heat and power in Europe is expected to
double from now and until 2020. The wood pellets trade statistics from the European Biomass Association
(AEBIOM) show an increasing trade between various world regions; demands are not only increasing in
Europe and in the US but also in Asian countries such as Korea or Japan. Consumption of pellets in the
European Union steadily increased from 3.8 million tons in 2005 to 9.8 million tons last year. Production in
the EU grew from 2.6 million tons in 2005 to 9.2 million tons in 2010. EU imports in 2010 amounted 6
million tons, with Denmark, the Netherlands, Italy, Sweden and the UK as the largest importers. Canada,
the US and Russia were by far the main exporters to the EU, but recently also exports from South America,
Africa and Australia have started.
The wood pellets market and consumption has grown to such size now that large power producers have
occasionally the need to re-trade their pellets to keep storage costs under control. So far this has been very
complicated due to the lack of a uniform approach with respect to supply contractual terms, technical
specifications of the product, and sustainability principles applied by each company.
On November 4 of this year, the Dutch power and gas exchange APX-Endex opened in Amsterdam the
world's first industrial wood pellets exchange. At the same time, they announced that they expect global
pellets market to grow to 40 million tons by 2020 compared to current 13 million. This is 200% growth in
only 8 years.
Wood pellets markets though depend on continuous government support. Pellets price is expected to
fluctuate around current 135 €/ton for at least two more years, while carbon price is set to sometimes less
than half. Government support is usually based on sustainability requirements; therefore uniform and
standardised approaches are needed – not only between countries but also between sectoral policies.
These new market requirements were not clearly foreseen two years ago when the European Renewable
Energy Directive (RED) was established. Now, a more common approach may be needed to harmonize the
role of biomass in the RED, the Fuel Quality Directive (FQD) and the Emissions Trade Scheme (ETS).
Upcoming solid biomass markets in an uncertain policy context
So far, sustainability standards have been mainly developed for biomass for energy purposes – and
especially for biofuels (read our summer 2010 and winter 2011 newsletters: “A new era of the Bioenergy
Industry: Sustainability criteria shaping the market” and “Roadmap to an organized global commodity
2
3. market of bioenergy carriers”). As it was concluded from the recent Consultation process at the European
Commission (EC), there is a large support for binding sustainability criteria for solid biomass. Replies on the
scope of these sustainability criteria were, however, mixed ranging from a simple copy of RED requirements
to solid biomass to a more extensive set of criteria including also principles of sustainable forest
management. No agreement has been reached so far. For the time being, the EC has given only a set of
recommendations concerning the sustainability of solid biomass (GHG savings, biodiversity protection, no
conversion carbon rich land, stimulate higher conversion efficiencies) and will assess its effectiveness by
end of 2011. However no final decision is expected yet. Similar uncertainties in levelling the playing field for
the growing wood pellet markets in the US exist, where no binding sustainability criteria for solid biomass
have been developed either.
Nonetheless, the EU Timber Regulation, coming into effect in 2013, will require producers to take concrete
steps that minimize the risk of putting illegally harvested timber and timber products on the EU market.
Producers will have to use a traceability system, which will enable the EU to ascertain the legality of the
products. A similar Law has been developed in the US (the Lacey Act) prohibiting the commerce in illegally
sourced plants and their products — including timber and wood products. It requires importers to declare
the country of origin of harvest and species name of all plants contained in their products.
For bio-based products, no quantification or qualification of sustainability criteria exists yet. The US
“Biobased Product Labelling Program” identifies biobased products based on its bio-based content. The
recently established CEN/TC 411 on bio-based products is planning to produce a package of standards on
terminology, determination of bio-based content, sustainability criteria and lifecycle analysis (LCA). Plans to
create a label of biobased products in Europe are under development as well.
Developments on EU-country level are not homogeneous either. National policies exist or are currently
developed in Belgium, the UK and in the Netherlands to safeguard the sustainability of solid biomass. The
Belgium systems in Wallonia and in the Brussels region are based upon avoided CO2 emissions with respect
to a defined reference and require a traceability of the supply chain. In the UK, the Renewable Energy
Certificates (ROCs) have to be linked to binding sustainability criteria as per 1 April 2013. The Netherlands
has the so called ‘green deal’ between the government and energy sector to keep the share of cofiring at
10% in period 2012-2015 with binding RED sustainability criteria. Various other European countries already
cover limited sustainability aspects (e.g. only on end-use efficiency or sourcing) in their national schemes.
The differences on EU member state level aim at meeting own national challenges. For the market, this
results however in a fragmentation of supply, higher costs and a separate sourcing of biomass if power
plants are in more than one market. SQ consult recently corroborated during a private assignment the
differences on national approach towards the verification of sustainability criteria for biofuels in a
benchmark of national systems.
It becomes obvious that a single set of sustainability criteria, and a limited and small number of standards
fully covering them, would be preferable for the real development of the bio-based economy.
Harmonization or proliferation?
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4. The market is anticipating on policy developments. Business-to-business standards to safeguard the
sustainability of solid biomass already exist for longer time. Well-known examples are the Green Gold Label
from RWE/Essent, the Drax sustainability requirements or the Laborelec system, all of them developed by
large energy utilities.
Green Gold Label Electrabel / Laborelec Drax
Strengths
Reliable experience in Sustainability principles Sustainability principles
implementation meet company and follow EC-RED
rd
national policy demands
3 party verification
Experience in
Standard is
implementation
independent from
Cost-effective and practical
company (open for
others)
Weaknesses
Some aspects (legal GHG calculation does not Experience in
compliance, socio- follow EC methodology implementation still
economic issues) not Wider sustainability limited
addressed or to principles only tested one No specific forest
certain limit. time based on other management principle
standards included
Some aspects not fully
rd
developed yet (e.g. 3
party verification)
Other examples of voluntary standards or initiatives are the NTA8080/8081, the “EN-plus” label for wood
pellets or the Blue Angel Label in Germany, who has recently included chips and pellets for stoves and
boilers.
The Biomass Exchange allows wood pellets to be certified under one of three utilities certification schemes
mentioned above. Though this is a good start, all these three systems are not compatible, and therefore
they do not help to the full establishment of an international commodity market.
Seven large energy companies have formed the International Wood Pellet Buyers Initiative (IWPBI). They
are Dong Energy of Denmark, Drax International of the UK, Germany's Eon, Laborelec/GDF Suez of Belgium,
RWE/Essent, Delta from the Netherlands, and Sweden's Vattenfall, all together covering 70% of the
European market share and consuming about half of global production of wood pellets,. IWPBI aims to
develop one common sustainability verification scheme, making use of existing national policies and
standards. On November 10 of this year, an IWPBI working group agreed on a set of sustainability criteria
for solid biomass. The proposed system is now waiting for the official approval by the utilities involved and
on an implementation plan. This market initiative may help to overcome intra-European differences.
Approval is expected by the end of this year. IWPBI hopes that the EC will then follow their standard.
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5. IWPBI Sustainability criteria
Verifiable with indicators
Principle 1: GHG: Greenhouse gas emissions savings of at least 60% with respect to fossil fuel
reference
Principle 2: CARBON STOCK: No biomass production at expense of carbon reservoirs
Principle 3: BIODIVERSITY: Biomass production does not interfere with nature protection
purposes
Supported by qualitative assessment
Principle 4: SOIL QUALITY: Soil quality must be maintained
Principle 5: WATER QUALITY: Water is not exhausted and negative impacts are avoided
Principle 6: AIR QUALITY: Negative impacts on air are avoided
Principle 7: LOCAL FOOD AND WATER SUPPLY: Food, or specific biomass essential for
community subsistence and water supply are not endangered
Principle 8: SOCIO ECONOMIC PERFORMANCE: Property rights are preserved, and there is
contribution to local prosperity, welfare of employees and local population
Covered separately
Principle 9: CORPORATE RESPONSIBILITY: Code of conduct is preserved
Other large utilities such as Electricité de France or Enel have started their analysis on these topics;
however they have not yet led to proposed criteria, and potentially, they could adopt a different set of
sustainability criteria for their operations.
The next step is to find or to create the scheme with the right governance structure and costs that could
implement the verification of above principles. This is not a simple task and may end up in different
requirements along the supply chain, as is currently the case for biofuels, resulting again in different levels
of assurance and possible distortion of the market. SQ Consult is currently studying these differences for
the seven voluntary systems approved by the European Commission for the biofuels market.
These developments show that Europe has now come to a point to decide whether the establishment of
sustainability criteria should be left to the market or not. Leaving it to the market creates a large risk for
proliferation of standards with different requirements; undermining the eligibility and reliability of systems
that are trustworthy. Companies may opt for the easiest certification option – or not at all – which will
hamper the competitiveness and mobilization of sustainable solid biomass.
We would strongly advise to the European Commission to uniform reliable sustainability obligations
through binding legislation. Sustainability obligations for solid biomass have to be well-founded and should
not be a simple one to one copy of the RED or of what is existing on the market. Furthermore, some
guidelines on governance structure and expected levels of assurance for the schemes verifying
sustainability obligations would be welcome to avoid the current problems that the biofuels are facing to
demonstrate their compliance with sustainability criteria.
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6. Strategies in the market
Although the existing harmonization initiatives are highly appreciated, they have their limitations in scope
in terms of geographical coverage (mainly northern Europe), product coverage (pellets) and stakeholder
coverage (large to medium markets). A European solution, preferable coordinated with US biomass
sustainability developments, could engage all stakeholders and countries involved in this discussion.
The lack of a common, long-term strategy on sustainability of biobased products for energy and materials
may lead to a competition of biomass resources, only based on prices and volumes. On policy level, clear
choices have to be made how resources can be optimally used and what is to be expected from the market.
A common European bioenergy market will create an efficient market with high liquidity and flexibility to
move products across borders.
Our expertise
SQ experts, Jinke van Dam, Sergio Ugarte and Laetitia Ouillet have contributed significantly to the research
of bioenergy and electricity sector business internationally, They have participated in the development of
sustainability criteria and its implementation and have proposed recommendations for further
harmonization and improvement of European biomass certification systems. They furthermore have
provided advice to global private energy companies in setting up their biomass strategies for their
businesses in Europe, the United States of America and other parts of the world.
We work on:
• Helping companies to define their long term strategy development for sustainable bioenergy production
and trade
• Positioning companies in the market; linking actors (region, ports, suppliers, end-users) in development
of a business approach
• Providing support in further development of policy guidelines and regulations;
• Impact assessments of bioenergy chains;
• Sustainability certification strategy roadmaps;
• International screening of biomass sourcing (potential, economics, conversion options)
Visit us at http://www.SQConsult.com
i j.vandam@sqconsult.com
ii s.ugarte@sqconsult.com
iii l.ouillet@sqconsult.com
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