Biofuels: Policies, Standards and Technologies World Energy Council 2010

Biofuels: Policies, Standards and Technologies

Officers of the World Energy Council Biofuels: Policies, Standards and Technologies World Energy Council 201010 Pierre Gadonneix

Chair Copyright © 2010 World Energy Council Francisco Barnés de Castro Vice Chair, North America All rights reserved. All or part of this publication may be used or Norberto Franco de Medeiros reproduced as long as the following citation is included on each Vice Chair, Latin America/Caribbean copy or transmission: ‘Used by permission of the World Energy Council, London, www.worldenergy.org’ Richard Drouin Vice Chair, Montréal Congress 2010 Published 2010 by:

C.P. Jain World Energy Council Chair, Studies Committee Regency House 1-4 Warwick Street London W1B 5LT United Kingdom Younghoon David Kim Vice Chair, Asia Pacific & South Asia ISBN: 978 0 946121 03 8

Jorge Ferioli Chair, Programme Committee

Marie-José Nadeau Vice Chair, Communications & Outreach Committee

Abubakar Sambo Vice Chair, Africa

Johannes Teyssen Vice Chair, Europe

Abbas Ali Naqi Vice Chair, Special Responsibility for Middle East & Gulf States

Graham Ward, CBE Vice Chair, Finance

Zhang Guobao Vice Chair, Asia

Christoph Frei Secretary General Biofuels: Policies, Standards and Technologies World Energy Council 2010 3 Foreword

Skyrocketing prices of crude oil in the middle of has been grown in Brazil since its first the first decade of the 21st century accompanied settlements centuries ago and has the lowest by rising prices for food focused political and production costs compared to other raw public attention on the role of biofuels. On the materials. It would be difficult to replicate these one hand, biofuels were considered as a unique natural, traditional and technical factors potential automotive fuel with a bright future, on elsewhere in the world. The report presents a the other hand, biofuels were accused of global picture but focuses on the Americas. I competing with food production for land. The would like to thank the members of the Task truth must lie somewhere in-between and is Force for their contributions to this effort, in strongly dependent on the individual particular my colleagues from Argentina, Analia circumstance in different countries and regions. Acosta and Raul Reimer, Ian Potter from As food and energy are closely interconnected Canada, Francesca Pigliapochi from Italy, and often compete with each other for other Gerardo Bazan from Mexico, Bamidele Solomon resources, such as water, the World Energy from Nigeria, Ulf Svahn from Sweden and Council - following numerous requests of its Richard Davis from the United States. The Task Member Committees - decided to undertake an Force has also benefitted from the shared independent assessment of biofuels policies, wisdom of Raffaello Garafalo and Luciana technologies and standards. Tomozei from the European Biodiesel Board and Trevor Vyze from the International A Task Force on biofuels was set up by WEC in Standards Organisation. Finally, I would like to late 2008 and I was delighted to chair it over the extend my appreciation to Elena Nekhaev and past year or so. It was a challenging group effort Catriona Nurse from the WEC London which resulted in this report. From the beginning Secretariat for their support and guidance and to the Task Force established a certain criteria for the Chairman of the WEC Brazilian Member its work which included issues related to the Committee, Mr. Norberto de Franco Medeiros diversity of energy supply, standardisation of for my nomination as the Chair of the Task biofuels, trade policies, sustainability of biofuels Force. production and use and other topical matters with the ultimate objective of promoting a better I sincerely hope that this report will become a understanding of the basic fundamentals which succinct reference for both the decision-makers will define the future of biofuels worldwide. and the general public.

In many peoples’ minds biofuels, ethanol in particular, are closely associated with Brazil which is today a leading producer not only of biofuels but also vehicles which run on biofuels. This is a unique combination and Brazil draws clear benefits from it. Ethanol in Brazil is Sergio Fontes, Petrobras, Brazil produced commercially from sugar cane that

Biofuels: Policies, Standards and Technologies World Energy Council 2010 4

Task Force Membership

Chair: Mr. Sergio Fontes, Petrobras, Brazil

Members:

Argentina Ms. Analia Acosta Repsol-YPF

Mr. Raúl Reimer Repsol-YPF Canada Mr. Ian Potter Alberta Research Council Colombia Mr. Hans Ronald Moreno ECOPETROL

Egypt Mr. Abed Elmallahy Egyptian Ministry of Petroleum Italy Mr. Franco Cotana Centro di Ricerca sulle Biomasse Ms. Francesca Pigliapochi ALPHA TRADING Japan Mr. Kenichiro Saitoh Nippon Oil Corporation Mexico Mr. Gerardo Bazán PEMEX Nigeria Prof. Bamidele Ogbe Solomon National Biotech Development Agency Mrs. Rose Gidado National Biotech Development Agency Mr. Austin Amaechi Executive Reach NIGERIA Swaziland Mr. Henry Shongwe Ministry of Natural Resources and Energy Sweden Mr. Ulf Svahn Swedish Petroleum Institute USA Mr. Ron Wood B&V Energy Mr. Richard Davis Research Triangle Institute

International organisations: Mr. Raffaelo Carafalo EBB European Biodiesel Board Ms. Luciana Tomozei EBB European Biodiesel Board Mr. Trevor Vyze ISO International Standards Organisation

World Energy Council: Ms. Elena Nekhaev

Biofuels: Policies, Standards and Technologies World Energy Council 2010 5

CONTENTS

Foreword 3

Task Force Membership 4

Executive Summary 7

1. Introduction 15

2. Biofuels in the Global Energy Scene 20

3. Production and End-Use Technologies 32

4. Market, Financial Issues and Criteria 54

5. Standards, Policies and Regulation 64

6. Sustainability Criteria 76

7. Conclusions and Recommendations 77

Acronyms/Abbreviations

Annexes

Bibliography

References

Biofuels: Policies, Standards and Technologies World Energy Council 2010 6

Biofuels: Policies, Standards and Technologies World Energy Council 2010 7 Executive Summary

The use of biofuels is growing around the world and technologies are expected to increase and a debate between biofuels supporters and efficiencies even further. opponents is intensifying. Given the rapidly increasing demand for energy which is projected st Technology is a key factor to enhance both to double by mid 21 century, it is expected that food and bio-energy production and increase biofuels will become an important part of the the output without adverse economic and global energy mix and make a significant environmental implications. contribution to meeting energy demand. Drivers for a wide introduction of biofuels vary across One of the main goals of developing the biofuels the world and include a broad range of issues sector is sustainability. The sustainability driver from land-use to energy security, to economics is based on the three pillars of economic, social and environment. The main challenge for the and environmental sustainability. In economic future is to develop biofuels which do not terms, biofuels production has to be cost- compete with the food chain, which are effective and competitive. In social terms, sustainable and efficient both in terms of costs biofuels development can create a massive new and energy, and for which the carbon footprint is demand in the agricultural economy. As biofuels a net gain. The study focuses primarily on production is an agricultural process, the same biofuels for transportation and is divided into elements and inputs contribute to its overall seven Chapters. efficiency as for existing agricultural production Background systems. The idea of using biofuels in an internal International Standards combustion engine dates back to 1929 when Many barriers that today constrain world trade in Rudolph Diesel first fired his newly invented biofuels can be removed by introducing diesel engine with raw vegetable (peanut) oil. international specifications and standards. Not However, Diesel and others discovered that only must properties of final biofuels products be fuelling a diesel engine with vegetable oils could harmonised but also methodologies for reduce atomisation, lower heating value and measuring these properties. International bodies worsen combustion and cause other long-term such as the International Standards problems including pump wear and carbon/coke Organisation (ISO) are the appropriate forum to deposits. discuss this subject with participation of all stakeholders. In recent years, biofuels producers have achieved significant improvements in crop ISO is currently working on developing certain production and processing efficiencies and biofuels standards, and the outcomes of this today the volume of biofuels produced in a effort are eagerly awaited. The subsequent specific planted area is several times higher International Standards will help the broad than it used to be. Improved production methods development of biofuels worldwide.

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Global Outlook for Biofuels Despite the projected tripling of biofuels According to the latest official statistics, global production from 20 Mtoe in 2005 to almost production of biofuels reached a record level of 60 Mtoe in 2015 and over 90 Mtoe in 2030, over 34 Mtoe in 2007 accounting for 1.5% of their share in the total road-transport fuel is total road related fuel consumption. Preliminary not expected to surpass 4-5% by 2030. Biofuels production costs still remain figures for 2008 suggest the total production comparatively high and substantial cost increase to nearly 39 Mtoe. There are a number reductions are required for cost types to of reasons for the strong interest in biofuels become commercially competitive. which is currently spreading around the world and driving increasing production of biofuels. These reasons include the need to diversify Impact on food prices supply sources, mitigate the impacts of crude oil The spreading concerns about the impact of price volatility, reductions in biofuels production increasing production of biofuels, possible costs and growing concerns about the global competition for agricultural land and impact on environment. In some regions, development the food prices require a holistic assessment policies also play an important role. since there is a number of various factors at play, including poor management of the In terms of land use, the projected growth in agricultural sector during the last decades, biofuels production would lead to an increase in unfavourable weather conditions, lack of the arable land used for biofuels from about 1% investment in production capacity and of total available land today to approximately infrastructure, distorted agricultural markets and 2.5% in 2030. the dismantling of support policies for domestic market in developed countries which all might Currently, two countries: Brazil and USA have contributed to the recent increases in food account for nearly 80% of global biofuels prices all over the world. production. Both countries produce mainly bioethanol: USA from maize and Brazil from The United Nations Food and Agriculture sugar cane. In the next few decades, global Organisation estimated in 2008 that biofuels demand for transport fuel is expected to grow accounted for approximately 10% of the recent significantly – by up to 55% by 2030 compared food price increases around the world. In certain to 2004. This will accelerate the growth in countries biofuels have had a more significant demand for biofuels, as they are expected to impact on food prices, however it was mainly make an increasing contribution to meeting because of national agricultural support future energy needs of the mankind. programmes and protectionist measures rather than increased production of biofuels.

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The key success factors for the future of biofuels are developed in areas that do not affect the use will be gradual expansion in cultivated land and of the basic resources of agricultural considerable increases in agricultural ecosystems such us soil, water, air and productivity. This will require a broad political biodiversity. In addition, taking into account the commitment, including introduction of badly climate and geographical diversity, initiatives for needed land reforms, better irrigation, use of the use of semi-arid soils and other marginal fertilizers and further development of transport lands could be implemented for the benefit of infrastructure. supporting the development of rural populations in poor regions. The development of second-generation biofuels based on conversion of cellulosic resources, Analysis of areas today used for conventional such as grasses, sawdust and fast growing crops production which are planned to be trees from non-food sources that can help to converted into biofuels producing areas is an limit the direct competition between food and important starting point for the evaluation. biofuel that is associated with mostly first- generation biofuels should be a priority for Generally, in many countries, the land used sustainability of biofuels. today for agriculture and biofuels production accounts for a small share of the total arable The use of appropriate biotechnological tools land. and techniques for improving the plants yield, drought tolerance and multiplication Large-scale production of biofuels could offers the best solution in case of unforeseen increase the price of agricultural commodities. adverse environmental conditions. This would benefit farmers, but might increase food prices. Farmers could also produce their Land Use own fuels. The expected continued growth in the A major debate continues around the world use of biofuels would increase global demand about biofuels production and its impact on for agricultural products and result in the traditional agriculture, i.e. the perceived creation of new jobs in harvesting, processing, competition for land and the risk of displacing distribution, etc. A biofuels industry that is local production of human and animal food by and where farmers produce fuel for their own biofuels. use would produce direct and multiple benefits to a rural community. Soil productivity has also Although land devoted to fuel production could been increasing all the time, due to better reduce land available for food production, this is chemical fertilisers, physical fertility and more at present not a serious problem. In the longer efficient water economy. term, lignocellulosics are likely to become the primary source of biofuels. It is important in each Agricultural practices that are environmentally particular case to evaluate the sustainability of sustainable, socially accepted and that promote raw material production to ensure that biofuels efficient use of energy should be supported. All

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possible energy crops in each region should be significant part of the year, including peat assessed, including the second generation land. biofuels crops.  Permanent grassland, i.e. rangelands and pasture land which have been under Geography and logistics grassland vegetation and pasture use for at least 20 years and are not classified as A general assessment of opportunities for forest. biofuels production should include basic information such as location, associated Biofuels for Transportation transport and relevant infrastructure logistics. In the past few years there have been important Some countries have their production base far advances in the field of alternative transportation from the main consumption centres and ports, in fuels, primarily bioethanol and biodiesel. Only other countries it is the opposite. The origin of biodiesel and bioethanol are considered in this the crops or vegetable oils used for biofuels report due to their similar inherent properties production is another aspect. Are they produced compared to fossil-based fuels, especially auto- in the country or coming from other regions of ignitibility. There is a longer-term potential for the world? other biofuels such as biobutanol and biogas but little research effort has been seen in either For instance, in Argentina the raw material is regular or small engines. produced in an area located 500 km from the biofuels processing plants but these plants, on Bioethanol is an alcohol, made by fermenting the other hand, are located close to the ports any biomass with a high content of and this is an unusual and beneficial situation. carbohydrates through a process similar to beer Biofuels production shall not rely on raw material brewing. Today, bioethanol is made from coming from areas such as: starches and sugars. In the future, cellulose and  Forests where there has not been significant hemicellulose fibrous material will be used. human interference or where the last human intervention was long ago and where the Biodiesel is made by combining alcohol natural species and processes have re- (usually bioethanol) with vegetable oil, animal established themselves. fat, or recycled cooking grease. These materials contain triglycerides and other components  Areas designated for nature protection depending on type. Some of the feedstocks are purposes, unless evidence is provided that palm oil, coconut oil, canola oil, corn oil, the production of biofuels does not interfere cottonseed oil, flex oil, soy oil, peanut oil, with those purposes. sunflower oil, rapeseed oil and algae. It can be  Forests and rainforests, unless they are used as an additive to reduce vehicle emissions managed using sustainable practices. or in its pure form as a renewable alternative  Wetlands, i.e. land that is covered with or fuel for diesel engines. In the near future, saturated by water permanently or for a agricultural residues such as corn stover (the

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stalks, leaves, and husks of the plant) and Issues related to Engines and wheat straw will also be used. Engine/Fuel Interface Combustion characteristics of biofuels are Fuel blends different from those of regular fuels due to: Flexible-fuel vehicles (FFVs) can operate on any  differences in fuel flow, blend of bioethanol with gasoline up to 100%  physical phase change, (E100). About seven million FFVs are currently  fuel atomization to chemical reaction, and used in the USA running on fuel with 85%  heat exchange. bioethanol (E85). US auto companies have In addition to combustion issues, replacing committed to manufacturer a larger number of fossil-based fuels with biofuels can lead to other FFVs, in a wide variety of models, to be concerns about engine performance, durability available at prices competitive with conventional and fuel storage. vehicles. The effects of replacing fossil-based fuels Not all diesel engine manufacturers however with biofuels depends on the inherent cover biodiesel use in their warranties. Biodiesel properties of the fuels and engine operating contains about 8% less energy per gallon than principles. petroleum diesel.

Algae biodiesel Technology Outlook for Biofuels While algae biodiesel has the same The recent developments in biofuels suggest characteristics as conventional fuel, the that the rapid growth of biofuels use could production process can be also used to capture continue for decades. CO2 from power stations and other industrial plants (synergy of coal and algae). The potential for biofuels is particularly large in tropical countries, where high crop yields and Moreover algae biodiesel production can be lower costs for land and labour provide an combined with wastewater treatment and economic advantage. It has been estimated that nutrient recycling, where polluted water (cleaned worldwide sugar cane production could by algae) acts as a nutrient in their growth. But be expanded so that crop alone could displace most importantly is that today algae biodiesel jet about 10 percent of gasoline use worldwide. fuel represents the best potential answer for the sustainability of the aviation industry.

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Biofuels Investment and Climate Change traditional petroleum refineries that are Regulations expensive. Calls for global carbon regulations are growing. The Conference of the Parties 15 (COP15) held Establishing biofuel technical standards in Copenhagen in December 2009 was would, over the long run, help reduce capital expenditures for large and small refiners, expected to reach a global far-reaching benefit new participants in the refining agreement to replace the Kyoto Protocol. This business, and help capital markets develop did not happen, although certain progress has more specific products for syndicating debt been achieved on a number of points. for biofuel refining.

The Life Cycle Assessment (LCA) of the The application of certification schemes requires production of biofuels for energy applications or careful consideration of all factors involved. other end uses represents the tool most widely Early in the conception and the development used for the GHG balance accounting. stage, it is crucial to develop or to follow sound sustainability principles and criteria. Certification Further, the debate on climate change is likely to work is often criticised for lacking substance and produce regulations world-wide that will structure and the following main issues have encourage and/or subsidise biofuel investments. been identified: To help overcome the risk of oil price volatility  scope inconsistencies undermining investment in biofuels, regulators  implementation inconsistencies will need to enact particular policies to  market failures encourage investment into biofuels.  costs barriers  trade limitations. In general, as an alternative to oil, biofuels are not a safe investment today. As a potential help Finally, the market players will determine the to climate change regulation, biofuels look like a relevance of different standards. They will good investment. decide upon their individual needs (imports/exports into/from different countries, Technical Standardisation marketing purposes, costs etc.). Although major refiners like ConocoPhillips, British Petroleum/BP and others blend currently biofuels into transportation fuels like gasoline and diesel, this is not supported by sufficient technical standards which would allow and facilitate robust growth of biofuels on a global scale. Large, well- established refiners have the wherewithal to blend different source types into current transport fuels, but it typically requires new additions to

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Conclusions and Recommendations If biofuels continue their rapid growth around the The world´s transport system is based on one globe, the impact on the agricultural sector can single fuel - oil and today there does not seem be significant. Increased jobs and economic to be any realistic alternative to oil. Demand for development for rural areas in both oil is expected to grow for decades to come, industrialised and developing countries is one along with the overall demand for energy. possibility, if governments put the appropriate Biofuels can help meet this demand, and even if policies in place and enforce them. The more they will not replace oil, they should be regarded involved farmers are in the production, as an integral part of the energy mix. processing, and use of biofuels, the more likely they are to benefit from them. Supportive government policies have been essential to the development of modern biofuels. In regions where access to modern forms of Countries seeking to develop domestic biofuel energy is limited or absent, government and industries will be able to draw important development agency support for small-scale lessons—both positive and negative—from the biofuel production can help provide clean, industry leaders, in particular Brazil, the United accessible energy that is vital for rural States and the European Union. development and poverty alleviation.

Biofuel policies should focus on market While it is recognised that biofuels have the development and facilitate sustainable capacity to reduce greenhouse gas emissions international biofuel trade. Free movement of compared to fossil fuels, their production and use biofuels around the world should be coupled are not entirely without environmental with social and environmental standards and implications. Depending on the crop type and a credible system to certify compliance. other factors, carbon emissions are not always lower than for traditional fuels. Tax incentives have been used effectively in Biofuels can play a significant role in the context Brazil, Germany, the United States and other of a broader transformation of the transportation countries to spur biofuel production and reduce sector but alone they will not solve all of the biofuel prices at the pump. The enormous world’s transportation-related energy problems. purchasing power of governments has been used successfully in a number of countries to To achieve their full potential in providing expand the market for various products. security of supply, environmental and social benefits, biofuels need to represent an Consumer demand could be a powerful driver increasing share of total transport fuel of the renewable fuels market. Strategies to compared to oil. increase the public’s awareness about biofuels include various forms of public education, such as formal awareness campaigns, public announcements, university research, etc.

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1. Governments should pursue efforts that 7. Each country should strive to develop lead to diversification of transport fuel open and free markets for biofuels, sources to improve economic, energy although grandfathering subsidies, and environmental security. tariffs and other tools might be needed until domestic markets have been 2. Agricultural policies should balance the established. need for food and water supplies with biofuels production. 8. All agricultural policies and strategies are based on local, national or in some 3. When performing analysis of fuel source cases regional circumstances and they and type, a cradle-to-grave LCA is include the mix of environmental (land, necessary for understanding of water, climate), social (population, economic, energy and environmental education) and economic (infrastructure, impacts using a common, objective and governance) factors. It is therefore transparent methodology. impossible to develop “one-size-fits-all” policies for biofuels production. 4. Governments should conduct research to gain a better understanding of 9. Identifying the right place of biofuel impacts of biofuels production and use production in the agricultural economy, on public health and local environment, including choices of the actual types as for other energy sources. (diesel from vegetable oil, ethanol from sugar or starch crops, solid biofuels 5. Governments and industry should invest from wood or grass sources) is a in biofuels research and development to significant policy challenge. stimulate breakthrough technologies and share best practices and 10. While it is recognised that biofuels have technologies for biofuels production and the capacity to reduce greenhouse gas use. emissions compared to fossil fuels, their production and use are not entirely 6. Governments should pursue policies to without environmental implications. encourage private sector investment Depending on the crop type and other into commercial scale production of factors, carbon emissions are not always biofuels – for proven technologies, lower than for traditional fuels. including incentives for scaling-up

technology from pilot to demonstration to commercial scale.

Biofuels: Policies, Standards and Technologies World Energy Council 2010 15 1. Introduction

The use of biofuels is growing around the world Chapter 3 summarises information about the and a debate between biofuels supporters and various aspects defining opponents is intensifying. development of biofuels: geography, feedstocks, production and end-use Responding to the interest of its members in this technologies, issues related to topic, the World Energy Council (WEC) engine/fuel interface, energy convened a Task Force to examine the biofuels efficiency and a technology outlook markets and identify the main production for near and longer term. technologies in use today and in the future and Chapter 4 addresses markets, financial issues the main barriers to an accelerated development and criteria, petroleum price volatility, and deployment of biofuels. The objective was vegetable oil market dynamics, to establish a set of recommendations for policy supply and demand fundamentals. and decision-makers around the world to enhance understanding of biofuels. This report Chapter 5 reviews standardisation, general was produced from contributions of the WEC policies and regulations, in particular Task Force members from several countries. the examples of EU and Brazil. Each member had to cover a certain topic and Chapter 6 discusses sustainability principles all contributions were reviewed and agreed in and criteria, including Life Cycle the Task Force meetings. Assessment, economic and environmental aspects. The study focuses primarily on biofuels for transportation and is divided into seven Chapter 7 summarises the main messages and Chapters: presents conclusions and recommendations. It was recognised that in each country, biofuels Chapter 1 introduces general concepts and were facing specific issues, e.g. climate, basic information about biofuels, economic or supply security. It was agreed that including international the Task Force would not conduct specific case standardisation, classification and studies of Life Cycle Analysis (LCA), but would certification issues and lays down the highlight the importance of LCA and formulate guiding principles adopted by the recommendations for further discussions. Task Force. Chapter 2 looks into the future of biofuels, The Task Force would focus on the most including land use and impacts on developed biofuels markets in North and South food prices, and presents brief case America to identify the drivers and success studies from eight countries. factors for a large-scale production and use of biofuels and development of new and efficient

technologies.

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Technology is a key factor to enhance both food and bioenergy production and increase the output without adverse economic and environmental implications.

Intensive collaboration with other international programmes lacked consistency and largely organisations active in this area was followed the crude oil prices. established, in particular, with International Standards Organisation (ISO) and the European In recent years, biofuels producers have Biodiesel Board (EBB). achieved significant improvements in crop production and processing and today the Background volume of biofuels produced in a specific The idea of using biofuels in an internal planted area is several times higher than it used combustion engine dates back to 1929 when to be. Improved production methods and Rudolph Diesel first fired his newly invented technologies are expected to increase diesel engine with raw vegetable (peanut) oil. efficiencies even further. However, Diesel and others discovered that fuelling a diesel engine with vegetable oils could In terms of the environmental impact, all biofuels reduce atomisation, lower heating value and are not the same and not always the most worsen combustion and cause other long-term secure or cheapest way to reduce greenhouse problems including pump wear and carbon/coke gas (GHG) emissions, but taking into account deposits. that over 20% of all anthropogenic GHG emissions originate in transport and their share The effects of replacing fossil-based fuels with is growing rapidly, biofuels provide an attractive biofuels depend on the inherent properties of the way of reducing emissions fairly quickly. fuels and engine operating principles. The first large-scale use of biofuels began in Brazil where Security of supply has also become more bioethanol was initially mixed with gasoline. At important, given the increasing price volatility of that time, the main driver for biofuels crude oil. The uncertainty about the availability development was not the replacement of fossil and the price of crude oil has focused attention fuels but the reduction of imbalances between on alternative transport fuels. One of the most production and demand for sugar in the relevant alternatives is biofuels. international markets. Brazil was a huge sugar producer and exporter and the price volatility of One of the main goals of developing the biofuels sugar caused severe difficulties in the country’s sector is sustainability. The sustainability driver economy. is based on the three pillars of economic, social and environmental sustainability. In economic The oil markets in the late sixties and early terms, biofuels production has to be cost- seventies consolidated the motivation to develop effective and competitive. In social terms, biofuels as a possible replacement for fossil biofuels development can create a massive new fuels, especially in countries that were heavy demand in the agricultural economy. crude oil importers like Brazil. Following oil crises, a number of countries began to develop Sustainability criteria also demonstrates, among and implement biofuels programmes, but these other aspects, how different forms of energy perform in terms of energy efficiency and

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environmental impacts. As biofuels production is biofuels from wood or grass sources) is a an agricultural process, the same elements and significant policy challenge. inputs contribute to its overall efficiency as for existing agricultural production systems. All agricultural policies and strategies are based on local, national or in some cases It is a well-known fact that different types of regional circumstances and they include the biofuels as well as different production mix of environmental (land, water, climate), technologies for the same biofuel can have very social (population, education) and economic different energy efficiencies. When deciding (costs, infrastructure, governance) factors. It which type of biofuel to grow and where, energy is therefore impossible to develop “one-size- efficiency must be taken into consideration and fits-all” policies for biofuels. weighed against GHG savings and other criteria. The criteria for decision making may be general, When the harvested biomass is entering the based on the three pillars of sustainability, but actual biofuel production process, there are the relative weight given to economic, social and further decisions to be made, as different environmental aspects should be a matter for technological options perform differently in terms local decision making. For example, in areas of of energy use. Given a relatively limited exceptional biodiversity, the weight of availability of biomass, energy efficiency environmental considerations will likely to be assessment of the entire biofuel cycle should be different from that applied in areas with dense an essential part of the overall assessment of and poor rural populations. different alternatives. Subsidies for biofuels feedstock can also distort Intensive agricultural systems based on the markets. They may contribute to inefficient most advanced technologies and knowledge allocation of resources, and thus lead to management, use less inputs per unit distortion of food markets. production than many other systems. The challenge addressed by the science-based Another key issue is compatibility. Biofuels need agricultural industry is to maximize productivity to be compatible with current vehicles and while reducing the use of land, water and transport logistics. This means that a fuel needs chemical inputs. The key to that goal is held by to meet current fuel specifications and can be the dissemination of the latest technological blended into current fuel or use the same advances in the life sciences worldwide. logistics. Fuel properties also need to be sufficient to be compatible with future engine Identifying the right place of biofuel production in designs. the agricultural economy, including choices of the actual types (diesel from vegetable oil, International Standards ethanol from sugar or starch crops, solid Many barriers that today constrain world trade in biofuels can be removed by introducing

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international specifications and standards. Not maize, etc.) or sugary feedstocks (sugarcane, only must properties of final biofuels products be sugar beet). harmonised but also methodologies for measuring these properties. International bodies Already from the above separation one can such as the International Standards distinguish two different product markets: the Organisation (ISO) are the appropriate forum to diesel car fleet and the petrol cars segment. discuss this subject with participation of all stakeholders. Certification Certification is the practical implementation of ISO is currently working on developing certain the standard or of the principles and criteria that biofuels standards, and the outcomes of this should be achieved. This step requires a effort are eagerly awaited. The subsequent tracking method and a labeling process, and it International Standards will help the broad implies a third party assessment of the development of biofuels worldwide. management procedures with respect to a certain standard. When it comes to fuel quality, specifications for biodiesel require particularly close attention. Guiding Principles This is due to the large variety of vegetable oils The difficulty of reconciling various information and animal fats that can be used for biodiesel source types, technical standards and production, and the variability in fuel immaturity of markets made the work on this characteristics that can occur with fuel produced report challenging. To address these challenges from this feedstock. The European Union and the Task Force established a set of guiding the United States have developed their own principles. unique biodiesel standards. The guiding principles of this report aim at a Classification common framework for public and private sector In a simplified way, biofuels can be sub-divided entities to consider and focus their efforts into two large categories: substitute for diesel related to biofuels development and (biodiesel) and substitute for petroleum deployment. These principles are: (ethanol). This division is based on the key properties of the two products. On the one hand,  Diversify supply of transport fuels, enhance biodiesel (which replaces diesel in cars) is security of supply, mitigate economic produced from oil rich plants (e.g. rapeseed, volatility related to oil price fluctuations, and sunflower, algae, etc.) by mixing the vegetable improve global environment through oil (90%) with methanol (10%) in the process sustainable biofuels practices. called trans-estherification. On the other hand,  Identify technical criteria which can be used bioethanol (which replaces petrol in cars) - also to standardise production of biofuels through known as alcohol - is produced through the different processes from different feedstocks. fermentation of sugar from cereals (wheat,

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 Pursue trade policies that support the  Conduct a cradle-to-grave LCA for growing use of regional transportation fuels. evaluation of economic, energy and  Foster the development of a sustainable environmental impacts using a common, biofuels industry through favourable tax, objective and transparent methodology. trade and public policy measures without  Utilise existing literature to advance impeding the development of a global understanding of biofuels (see References marketplace for biofuels. and Bibliography).  Cultivate the competitive advantages of  PROVISO: data quality is most robust for regional and national biofuels feedstocks biofuels source types that have commercial (sugar cane, corn, cassava, sorghum, wheat, scale production. Biofuels that are at etc.), but not at the expense of destabilising demonstration scale have more technical fuel or food markets. information than those at pilot scale.  Strengthen the investment flowing into biofuel development through transparency in public sector requirements and technological breakthroughs.

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2. Biofuels in the Global Energy Scene

Share (%) of Biofuels in Road Transport 2008

Source: WEC/Enerdata

Global Outlook for Biofuels environment. In some regions, development policies also play an important role. According to the latest official statistics, global production of biofuels reached a record level of This has encouraged many countries to over 34 Mtoe in 2007 accounting for 1.5% of advance their biofuels development plans and total road related fuel consumption. Preliminary increase production targets. It is widely figures for 2008 suggest the total production expected that globally production of biofuels will increase to nearly 39 Mtoe. There are a number continue growing in the coming years, although of reasons for the strong interest in biofuels at somewhat slower rates reflecting the which is currently spreading around the world downturn in global economic activities in 2008, and driving increasing production of biofuels. concerns about biofuels economic and These reasons include the need to diversify environmental sustainability, food prices and supply sources, mitigate the impacts of crude oil other aspects. price volatility, reductions in biofuels production costs and growing concerns about the global

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The International Energy Agency (IEA) In terms of land use, the projected growth would estimates an average annual growth rate of 7%, lead to an increase in the arable land used for which means that by 2030 biofuels would biofuels production from about 1% of total account for about 5% of the total road transport available land today to approximately 2.5% in fuel demand, compared to approximately 2% 2030. today. USA which already today is the world’s largest consumer of biofuels will increase its Currently, two countries: Brazil and USA consumption even further. Europe will lead the account for nearly 80% of global biofuels global growth in demand in the coming years, production. Both countries produce mainly and bioethanol will account for the dominating bioethanol: USA from maize and Brazil from share of this growth. sugar cane.

Table 1: World Biofuels Consumption (Mtoe) 2004 2010 2015 2030 OECD 8.90 30.50 39.00 51.80 North America 7.00 15.40 20.50 24.20 United States 6.80 14.90 19.80 22.80 Canada 0.10 0.60 0.70 1.30 Europe 2.00 14.80 18.00 26.60 Pacific 0.00 0.30 0.40 1.00 Transition Economies 0.00 0.10 0.10 0.30 Russia 0.00 0.10 0.10 0.30 Developing Countries 6.50 10.90 15.30 40.40 Developing Asia 0.00 1.90 3.70 16.10 China 0.00 0.70 1.50 7.90 India 0.00 0.10 0.20 2.40 Indonesia 0.00 0.20 0.40 1.50 Middle East 0.00 0.10 0.10 0.50 Africa 0.00 0.60 1.10 3.40 North Africa 0.00 0.00 0.10 0.60 Latin America 6.40 8.40 10.40 20.30 Brazil 6.40 8.30 10.40 20.30 World 15.50 41.50 54.40 92.40

Source: IEA World Energy Outlook, 2006 / updated 2009

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Europe, on the other hand, produces mainly global trade policies and domestic subsidies, in biodiesel and today accounts for nearly 90% of particular in Europe and North America. world biodiesel output. Today biodiesel is referred to as FAME. Biodiesel production in Some countries have set targets for domestic Europe is growing fast, mainly due to high use of biofuels, either for use as pure fuel or subsidies and other incentives offered by blended with conventional fuel. In more than ten governments. China and India are also major countries, oil companies are required to add a producers of biofuels, bioethanol in particular. certain percentage of biofuels to the regular fuel they are selling. The official targets for the share In the next few decades, global demand for of biofuels in the total road transport fuel transport fuel is expected to grow significantly – consumption demonstrate significant variations by up to 55% by 2030 compared to 2004. This across countries. The European Union, for will accelerate the growth in demand for example, aims at 10% biofuels of the total road biofuels, as they are expected to make an transport demand by 2020. Brazil, on the other increasing contribution to meeting future energy hand, targets to raise its production of needs of the mankind. bioethanol by 40% between 2005 and 2010.

Demand for biofuels will grow all over the world, To achieve these targets and objectives, but particularly in developing countries, while governments offer a wide array of support USA and Europe are expected to remain the measures and incentives, including special loan biggest consumers of biofuels. The majority of and grant programmes, tax credits, tax penalties biofuels will continue to be produced and on refineries which are not using biofuels, road consumed domestically, although the tax exemption and others. international trade in biofuels is also expected to increase significantly. Bioethanol produced from Despite the projected tripling of biofuels sugar cane will account for the major share of production from 20 Mtoe in 2005 to almost exports, and Brazil is expected to remain the 60 Mtoe in 2015 and over 90 Mtoe in 2030, leading bioethanol exporter for the coming their share in the total road-transport fuel is not expected to surpass 4-5% by 2030. decades. Biofuels production costs still remain comparatively high and substantial cost Besides the Americas and Europe, there are a reductions are required for cost types to number of other countries, mainly in Africa and become commercially competitive. Asia, which have the potential to become major producers and exporters of biofuels. South-East A number of factors will influence the future of Asian countries which are large palm oil biofuels, in particular the use of available arable producers could develop competitive biodiesel land for their cultivation, more efficient production and export business. Their success, agricultural production methods, and however, would to a large extent depend on the development of more advanced biofuels technologies. Developments in the global oil

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market will continue to be the most influential a more significant impact on food prices, factor driving the biofuels industry. A few however it was mainly because of national clarifications of the terminology used in the agricultural support programmes and report: protectionist measures rather than increased production of biofuels. “First-generation biofuels” are biofuels made from sugar, starch, vegetable oil, or animal fats Some projections indicate that the global using conventional technology. demand for food is expected to double over the next 50 years and this would mean that food “Second-generation biofuels” are produced in production will be primarily focused on available processes which can use a variety of non-food land and technology. The key success factors crops. These include waste biomass, the stalks for the future of biofuels will be gradual of wheat, corn, wood, and special-energy-or- expansion in cultivated land and considerable biomass crops. increases in agricultural productivity. This will require a broad political commitment, including “Third generation biofuels” are crops which introduction of badly needed land reforms, better require further research and development (R&D) irrigation, use of fertilizers and further to become commercially feasible, such as development of transport infrastructure. perennial grasses, fast growing trees and algae. The development of second-generation biofuels Impact on food prices based on conversion of cellulosic resources, The spreading concerns about the impact of such as grasses, sawdust and fast growing increasing production of biofuels and possible trees from non-food sources that can help to competition with agricultural land and impact on limit the direct competition between food and the food prices require a holistic assessment biofuel that is associated with mostly first- since there is a number of various factors at generation biofuels should be a priority for play, including poor management of the sustainability of biofuels. agricultural sector during the last decades, unfavourable weather conditions, lack of The use of appropriate biotechnological tools investment in production capacity and and techniques for improving the plants infrastructure, distorted agricultural markets and yield, drought tolerance and multiplication the dismantling of support policies for domestic offers the best solution in case of unforeseen market in developed countries which all might adverse environmental conditions. have contributed to the recent increases in food prices all over the world. The United Nations Food and Agriculture Organisation estimated in Land Use 2008 that biofuels accounted for approximately A major debate continues around the world 10% of the recent food price increases around about biofuels production and its impact on the world. In certain countries biofuels have had traditional agriculture, i.e. the perceived competition for land and the risk of displacing

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production of human and animal food by and where farmers produce fuel for their own biofuels. use would produce direct and multiple benefits to a rural community. Soil productivity has also Although land devoted to fuel production could been increasing all the time, due to better reduce land available for food production, this is chemical fertilisers, physical fertility and more at present not a serious problem. In the longer efficient water economy. term, lignocellulosics are likely to become the primary source of biofuels. It is important in each No-Till Farming has reduced fossil fuel particular case to evaluate the sustainability of consumption, decreased carbon dioxide raw material production to ensure that biofuels emissions (due to the absence of tillage) and are developed in areas that do not affect the use promoted carbon sequestration (due to the of the basic resources of agricultural increase in organic material). No-Till Farming ecosystems such us soil, water, air and production system is based on the absence of biodiversity. In addition, taking into account the tillage, crop rotations and stubble coverage on climate and geographical diversity, initiatives for the soil surface, and it has changed the old the use of semi-arid soils and other marginal production patterns into a new type of lands could be implemented, for the benefit of agricultural process that reconciles the supporting the development of rural populations increases in productivity with good in poor regions. environmental practices.

Analysis of areas today used for conventional Agricultural practices that are environmentally crops production which are planned to be sustainable, socially accepted and that promote converted into biofuels producing areas is an efficient use of energy should be supported. All important starting point for the evaluation. possible energy crops in each region should be assessed, including the second generation Generally, in many countries, the land used biofuels crops - to promote the sustainable today for agriculture and biofuels production production (e.g. non-conventional oil seed and accounts for a small share of the total arable lignocelluloses materials). land. Environmental impact assessment of biofuels production should be completed to evaluate all Large-scale production of biofuels could phases of the biofuels cycle, from the selection increase the price of agricultural commodities. of the basic raw materials to the production This would benefit farmers, but might increase techniques and technologies. food prices. Farmers could also produce their own fuels. The expected continued growth in the When examining biofuels production and use of biofuels would increase global demand consumption patterns in a variety of countries, it for agricultural products and result in the is important to take into account the fact that creation of new jobs in harvesting, processing, ecosystems, biodiversity, production methods distribution, etc. A biofuels industry that is local

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and social environment, including impact on A Bioenergy Program 2007/2010 is being internal and cross-border migration, differ widely implemented with the participation of the throughout the world. Thus, each particular area Faculty of Agrarian Sciences, the Faculty of or country involved in biofuel production should Applied Sciences to the Industry and the be assessed individually. Faculty of Engineering of the National University of Cuyo, together with Argentina´s Biofuels in selected countries National Institute of Agricultural Technology Due to its great biodiversity, climate and (INTA) and YPF S.A. This program is now geography, the North, Central and South involved in the main INTA National American region has become the most Bioenergy Program, NBP which works through national projects and coordinates important biofuels producer and supplier in the actions within INTA and with external actors world. In particular, USA, Brazil and Argentina at a national and international level. There are at present the leading actors in the market has been significant increase in harvest and and have a much greater potential for the crushing capacity in recent years. No-Till production and development of non- Farming has been adopted as the leading conventional biofuels than many other countries. practice for sowing. 80% of total soy agriculture is involved in this practice. The following country case studies and Table 2 present summary information on biofuels for Brazil Argentina, Brazil, Canada, Colombia, Italy, Japan, Mexico, Nigeria and Sweden. Brazil has a total area of 851,000,000 hectares and is one of the biggest countries in the world. More detailed country information is included in It has a population of 190,273,300 (2008 Annex 1. estimate), which means 45 hectares per capita. Brazil has a large-scale biofuels programme, Argentina which focuses on the two most important There is no particular area allocated transportation fuels: gasoline and diesel. specifically for biofuels production. From the Bioethanol productivity has shown a huge total soybean harvest a part is used as raw increase since the late seventies when the material for SME production. Mandatory bioethanol Program, PROALCOOL, was blending of 5% (biodiesel and bioethanol) introduced. When it begun, bioethanol will be introduced on 1 January 2010. YPF productivity was 4.6 litres/ha and today it is 7.6 started blending biodiesel in fossil fuels in litres/ha. Brazil can become a large bioethanol June 2007. The biofuels market is highly exporter. In 2007, bioethanol production was regulated and features investment subsidies, 22,500,000 m3 while demand reached tax relief, distribution quotas and other 3 instruments. The main production 19,000,000 m , and exports accounted for 3 technologies in use include Desmet 3,500,000 m . Ballestra, Lurgi and a domestic range.

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In 1993 a law was passed requiring 22% US$1.5 billion in incentives over nine years bioethanol addition to gasoline. Today, this to producers of renewable alternatives to requirement is more flexible and requires gasoline and diesel fuel. between 20 and 25% based on bioethanol availability. Biodiesel can be produced from a The incentives are primarily for producers to "bridge the gap" between the current number of raw materials and the choice of the production level and the 3,000 million source is made depending on its availability and tonnes/year that will be needed to meet the incentives that the Brazilian government. 2012 targets, which were set by the Biodiesel program is considered as a way to government in December 2006 and passed increase social and economic benefits for small, into law in May 2008: Reaching an average mainly family agriculture. of 5% renewable content in gasoline by 2010 and 2% renewable content in diesel fuel and Fuel selection by consumers that have flexible heating oil by 2012. fuelled vehicles is predominantly price-oriented, although there are some consumers who Federal incentives provided through excise consistently chose gasoline or bioethanol. tax exemptions, amounting to US$0.10 per Flexible fuel vehicle fuel consumption is higher litre for bioethanol and US$0.04 per litre for with bioethanol than with gasoline, and there is biodiesel. A National Biomass Expansion Program providing US$140 million in a break-even point which defines the price contingent loan guarantees to encourage differential for filling up vehicle with gasoline or financing for new plants that produce bioethanol. bioethanol from biomass material such as crop residues. Canada Government Programmes include: However, statistics show that Canada imported about 100 million litres of total The eco Agriculture Biofuels Capital bioethanol (all grades – potable and  Initiative (ecoABC) is a federal US$200 denatured) in 2006, exclusively from the million, four-year capital grant program United States. Several Canadian companies that provides funding for the construction import biodiesel from the United States as or expansion of transportation biofuel well. production facilities. It appears funding is focused on cellulosic bioethanol. Under the North American Free Trade  The ecoENERGY for Biofuels Initiative, Agreement (NAFTA), there is a free trade of which will invest up to US$1.5 billion over renewable fuels among the United States, nine years from 2007 to boost Canada's Mexico, and Canada. However, Canada has production of biofuels. a tariff on bioethanol imported from Brazil  The ecoAUTO Rebate Program (US$0.05 per litre). encourages Canadians to buy fuel- efficient vehicles, including FFVs. It offers In July 2007, the Canadian government rebates from US$1,000 to US$2,000 to announced that it would provide up to people who, beginning March 20, 2007,

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buy or enter a long-term lease (12 months or more) for a fuel-efficient vehicle.

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Table 2: Summary of land use and biofuels production in selected countries

LAND USE PER CAPITA LAND USE Total land area used for biofuel Total land area Cultivated land area Land Hectares Cultivated land Hectares (ha) Hectares (ha) (ha) Hectares (ha) Hectares (ha) Share of total Argentina 276,689,000 31,900,000 11.5% 6.83 0.79 n/a Brazil 851,000,000 66,600,000 7.8% 4.47 0.35 6,700,000 Canada 909,350,700 35,912,247 3.9% 27.58 1.09 n/a Colombia 114,174,800 3,962,761 3.4% 2.60 0.09 100,000 Italy 30,100,000 12,900,000 42.8% 0.52 0.22 414,300 Japan 37,792,300 4,671,000 12.3% 2.95 0.36 0 Mexico 197,255,000 21,900,000 11.1% 1.77 0.19 n/a Nigeria 92,000,000 34,000,000 36.9% 0.61 267.20 15,132,000 Sweden 41,100,000 2,647,700 6.4% 4.46 0.29 140,000

Production costs Total demand (m3) Total supply (m3) Exports Imports (US$/litre) Argentina n/a 800.000 (Jan’10) 2.400.000 1.100.000 0 Brazil ethanol: 0.29-.37 19,000,000 22,500,000 3,500,000 0 diesel: 0.65 Canada ethanol: 715,500,00 0 n/a 100 millio biodiesel: 97,700,000 Colombia n/a 1,050,000 1,050,000 0 0 Italy 180/t 170.000 170.000 170.000 10.000 Japan n/a 8,880,000 0 0 8,880,000 Mexico 1.10 n/a 50% biodiesel: 300 60 Nigeria n/a bioethanol:38 80 0 Sweden n/a ethanol: 359,000 ethanol: 359,000 0 ethanol: 288,0 FAME: 130,000 FAME: 130,0000 FAME: 100,0

Colombia

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Colombia’s production of biofuels is based Japan mainly on sugar beet/cane and for biodiesel Japan does not have any domestic production of follows the NTC5444 standard. Government is biofuels and has only recently begun to import phasing in mandatory blend for biodiesel: them. In 2007 it imported 8,880,000 tonnes of ETBE. 2008 (B5) in the Northern part of Colombia 2009 (B5) in the whole country In its National Energy Strategy developed by 2010 (B10) METI, Japan has set targets for automotive fuel 2012 (B20) which will help achieve its overall objectives, And for bioethanol: including reduction of its dependence on 2006 (E10) except north of the country petroleum in the transport sector to about 80% 2010 (E10) provided the domestic production by 2030. can meet demand in the country (E14) is being studied The five main components of the strategy subset “Next Generation Automobile Fuel Initiative” are Battery, Hydrogen, Clean Diesel, Italy Biofuels and ITS. Biodiesel Financial law requires a mandatory blending Introduction of bioethanol has been started and of 1% by 2007 (calorific value compared to a country-wide development programme for automotive fuels), 2% by 2008, and 3% by production of bioethanol from lignocellulose will 2009. The requirement for 2010 is still being start in 2008. defined. System of certificates is in place for Clean diesel promotion has also been started monitoring of mandatory targets. and development of new diesel fuels: GTL, Penalty of 600 € per certificate (1 certificate FAME and BHD is about to commence. = 10 gcal).

Mexico Bioethanol Produced only for export to Northern As many other developing countries, Mexico Europe. ETBE is the second application to is approaching biofuels mainly from a social reach the mandatory target of the financial perspective. In 2007, Mexico took specific law introduced in 2007. It is difficult to actions in order to incorporate biofuels into estimate the volume of ETBE traded in Italy its energy mix, based on three principles: today, but from 2009, companies will be increase energy security, boost rural required to enter the biofuels blending data development and reduce negative online directly on the Ministry’s website. environmental impacts, without jeopardizing Standards in use: BIODIESEL EN14214. food availability.

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Government has also created the Bioenergy Mexico is a large automotive fuels Commission, including the Ministry of consumer. In 2008, demand exceeded 780 Energy, the Ministry of Agriculture, the thousand barrels a day of automotive Ministry of Environment and Natural gasoline as well as almost 300 thousand Resources, the Ministry of the Economy and barrels a day of diesel. In real terms, Mexico the Treasury. consumes twice as much gasoline as the

United Kingdom and 40% more diesel than Across the country, Mexico has more than Canada. 600 thousand hectares of sugarcane and

approximately 60 sugar refineries, which Despite being a large oil producer, Mexico’s produce nearly 5 million tonnes of sugar a transport sector relies heavily on imports: year. Some of these refineries already have more than 43% of automotive gasoline distilleries with output capacity of 167 comes from abroad, whilst diesel imports thousand cubic meters (167 million litres) of reached 18% in 2008. bioethanol per year, including 33 thousand

cubic meters (33 million litres) of anhydride Petróleos Mexicanos (PEMEX) is the only bioethanol. However, a large percentage of state-owned petrol company, entitled to this production is for the pharmaceutical and produce, distribute and sell automotive fuels the liquor industry. across all the country. During the last few

years, there have been a number of studies Furthermore, Mexico imports more than 50% to determine the feasibility of the use of of its bioethanol requirement. During the last biofuels in Mexico. couple of years, Petróleos Mexicanos has

performed a series of studies in order to In February 2008, Mexico approved the Law assure the technical feasibility of using for the Promotion and Development of bioethanol in its gasoline mix. Biofuels. This law aims to create confidence

and attract private investments, under a Results have shown that using bioethanol in legal framework that defines the role of the small amounts does not significantly affect State in guiding, coordinating and promoting either the performance of vehicles, or the the development of biofuels. distribution systems.

The main objective of this law is to promote An important issue related to the introduction the production of raw materials for the of bioethanol in Mexico is the setting of a development of a biofuels industry, including competitive price. Today, the price of agriculture, forest, waterweed and bioethanol using sugarcane in Mexico rises biotechnological processes. This should not to approximately US$1.6 per gallon, risk Mexico’s food security and sovereignty, compared to US$1.3 or US$0.5 per gallon in as established by the Law for Sustainable the US or Brazil, respectively. In this sense, Rural Development. the price conditions in Mexico are still far

from competitive compared to more Finally, in order to promote and coordinate technologically advanced countries. all the activities under this law, the Mexican

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The extent of arable land holds promise for Currently, Mexico produces small amounts of biodiesel, primarily for research purposes. producing energy crops. These energy crops In 2007, Mexico produced about 70 barrels are not edible and as such cannot affect the of biodiesel per day, less than 0.02% of the food chain. Nigeria also produces an estimated domestic demand for regular diesel. Similar 285.1 million tonnes of manure from her to bioethanol, the Mexican Ministry of livestock population of 245.9 million, which can Energy recommended the gradual yield about 3 billion cubic meter of biogas introduction of biodiesel in the country. annually. This is more than 1.25 million tonnes of fossil fuel oil per annum. Other possible Nigeria biomass resources include aquatic plants such as water hyacinth and municipal wastes, both of The biomass energy resource base of Nigeria is which constitute major environmental problems. estimated to be about 144 million tonnes per year. This includes wood, forage and shrubs, animal wastes and wastes arising from forestry, agricultural, municipal and industrial activities as well as aquatic biomass.

Nigeria’s land area is about 79.4 million hectares of which 71.9 million hectares can be considered to be arable. This shows a huge potential for the production of biomass since an estimated 94% of Nigerian households are engaged in crop farming. Nigeria’s aggregate annual crop production of 93.3 million tonnes of major crop yields far more quantity of straws, chaff, leaves and other biomass materials.

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General Aspects For instance, in Argentina the raw material is Biofuels development has different drivers: the produced in an area located 500 km from the need to diversify energy mix, mandatory biofuels processing plants but these plants, on requirement for blending with conventional fuels, the other hand, are located close to the ports government support for the production, use and and this is an unusual and beneficial situation. marketing of biofuels, legal frameworks and Biofuels production shall not rely on raw material agricultural policies, just to name a few. coming from areas such as:  Forests where there has not been significant In order to identify the most critical issues for the human interference or where the last human sustainable production of biofuels around the intervention was long ago and where the world, certain criteria should be taken into natural species and processes have re- account. This should include all phases of the established themselves. biofuels cycle, from the selection of the basic  Areas designated for nature protection raw materials to the production techniques and purposes, unless evidence is provided that technologies, to end-use and emissions related the production of biofuels does not interfere to the entire process. It appears particularly with those purposes. crucial to establish an up-to-date, objective and transparent Biofuels Life Cycle Analysis  Forests and rainforests, unless they are framework at the international level. managed using sustainable practices. Ecosystems, biodiversity, production methods  Wetlands, i.e. land that is covered with or and social environment, including impacts on saturated by water permanently or for a internal and cross-border migration, differ widely significant part of the year, including peat throughout the world. Different countries attach land. different priorities to these issues.  Permanent grassland, i.e. rangelands and Geography and logistics pasture land which have been under A general assessment of opportunities for grassland vegetation and pasture use for at biofuels production should include basic least 20 years and are not classified as information such as location, associated forest. transport and relevant infrastructure logistics. Energy Crops Some countries have their production base far Energy crops are generally plants, trees or other from the main consumption centres and ports, in herbaceous biomass which are grown and other countries it is the opposite. The origin of harvested specifically for energy production and the crops or vegetable oils used for biofuels use. production is another aspect. Are they produced in the country or coming from other regions of the world?

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Biofuels Feedstocks Catalysts and Neutralisers To ensure sustainable future for the biofuels Catalysts may be base, acid or enzyme industry it is important to identify all possible material. Catalysts are required in biodiesel energy crops in each region, including the production to initiate the esterification reaction second generation crops (e.g., non-conventional and promote an increase in the solubility to oil seed and lignocelluloses materials) and allow the reaction to proceed at a reasonable algae. Intensive research, development and rate. investment should be in place to increase the production of biofuels. There are three The most common catalysts used are strong “generations” of biofuels: mineral base such as sodium hydroxide (NaOH) and potassium hydroxide (KOH). After the  “First-generation biofuels” are biofuels made reaction, the base catalyst must be neutralized from sugar, starch, vegetable oil, or animal with a strong mineral acid. fats using conventional technology. The basic feedstocks for the production of first Biofuels for Transportation generation biofuels are often seeds or grains such as wheat, which yields starch that is In the past few years there have been important fermented into bioethanol, or sunflower advances in the field of alternative transportation seeds, which are pressed to yield vegetable fuels, primarily bioethanol and biodiesel. Only oil that can be used in biodiesel. biodiesel and bioethanol are considered in this report due to their similar inherent properties “Second-generation biofuels” production  compared to fossil-based fuels, especially auto- processes can use a variety of non food ignitibility. There is a longer-term potential for crops. These include waste biomass, the other biofuels such as biobutanol and biogas but stalks of wheat, corn, wood, and special- little research effort has been seen in either energy-or-biomass crops. Second generation regular or small engines. (See ANNEX 2 for (2G) biofuels use biomass to liquid more detail) technology including cellulosic biofuels from non food crops. Many second generation Biogas biofuels are under development such as Biogas is used as transportation fuel in a biohydrogen, biomethanol, DMF, Bio-DME, number of countries although in Europe it is only Fischer-Tropsch diesel, biohydrogen diesel, Germany, Sweden and Switzerland that use mixed alcohols and wood diesel. biogas-fuelled vehicles to a somewhat  “Third generation” feedstocks are crops significant extent. which require further research and For example, in Sweden, in 2008 approximately development (R&D) to become commercially 15,000 cars and hundreds of buses and trucks feasible, such as perennial grasses, fast were running on biogas. There are about 100 growing trees, and algae. They are designed service stations in the country selling biogas. exclusively for fuels production and are Biogas accounted for 0.3% of the total car fuel commonly referred to as “energy crops”.

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consumption, while Bio85 accounted for 0.4% the water dew point can be adjusted before or and Bio95 for 2%. after the upgrading (depending on process).

In Germany, there are approximately 720 Biogas can be used in both heavy duty and light service stations, while Switzerland has 88 and duty vehicles. Light duty vehicles can normally Austria 48. By 2010, all petrol stations in run both on natural gas and biogas without any Sweden will be required to offer customers modifications whereas heavy-duty vehicles either ethanol or biogas. without closed loop control may have to be modified if they are to run both on biogas and Biogas is produced from four main sources: natural gas.  Sewage treatment plants  Landfills To promote the use of biogas, biogas vehicles  Cleaning of organic industrial waste streams enjoy special benefits in many Swedish cities,  Mesophilic and thermophilic digestion of for example: organic waste. • Free parking • Lower tax on biogas vehicles when used in commercial traffic Anaerobic digestion processes are often • No tax on biogas as vehicle fuel successfully applied to clean the liquid waste • Exemption from road tolls for biogas streams from food industries and other vehicles. industries with large organic effluent. It s • Special lanes for biogas taxis estimated that around 25% of biogas produced • Financial support for investment in biogas in Europe comes from industrial wastewater vehicles plants. Municipal organic waste is an important raw material for production of biogas but so far Bioethanol is an alcohol, made by fermenting only 2% of the total production in Europe comes any biomass with a high content of from municipal organic waste. carbohydrates through a process similar to beer brewing. Today, bioethanol is made from Biogas has to be upgraded to natural gas quality starches and sugars. In the future, cellulose and in order to be used in normal vehicles, designed hemicellulose fibrous material will be used. for using natural gas. The most common technologies for biogas upgrading are the water Bioethanol is currently the most commonly used scrubber technology and the PSA technology. biofuel in an internal combustion engine and in fact, many countries have gasoline fuel Gas upgrading is normally performed in two standards that require 10% and 20% bioethanol steps where the main step is the process that blends. Depending on the controlled parameters

removes the CO2 from the gas. Minor in the manufacturing process, properties of fuel contaminants (e.g. sulphur compounds) are bioethanol can be varied and therefore, a

normally removed before the CO2-removal and standard is required.

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Bioethanol is mostly used as a direct blending hemicellulose. Lignin makes up the bulk of the agent or/and as ETBE, with gasoline to increase remaining dry mass. The plant (cellulose) octane and oxygenation and cut down carbon materials used as feedstock include: monoxide and other emissions. There are two  Plant wastes from industrial processes broad groups of bioethanol feedstocks referred (e.g. paper and pulp). to as the “first” and the “second” generation  Forest wood wastes (e.g. chips and feedstock. The majority of the first generation of sawdust from lumber mills, dead trees, and feedstocks for bioethanol production are those tree branches). that are also widely grown for food and animal  Energy crops grown specifically for fuel feed, hence the current debate about biofuels production, such as switchgrass, impact on food.” (See ANNEX 3 for more detail). Miscanthus, Poplar, and  Municipal Solid Waste (e.g. old The first generation of biofuels feedstocks newspapers). include: Biodiesel is made by combining alcohol i. Saccharine (Sugar Containing) Materials - (usually bioethanol) with vegetable oil, animal These are currently being used for the fat, or recycled cooking grease. These materials production of sugar, or they have high contain triglycerides and other components component of simple sugar. These feedstocks depending on type. Some of the feedstocks are are the easiest to convert to bioethanol and they palm oil, coconut oil, canola oil, corn oil, are: cottonseed oil, flex oil, soy oil, peanut oil,  Sugar Cane sunflower oil, rapeseed oil and algae. Table 3  Sugar Beet shows oil production averages of some crops.

 Sweet Sorghum Table 3: Oil Production Averages of Some Crops  Fruits (eg. Grapes, apple, pineapples, pears, oranges, etc.) Plant Oil kg/ha ii. Starchy Materials -These feedstocks are rich Oil palm 5,000 in starch, a form of complex sugar. They can Coconut 2,260 look as grains or tubers and include: Cereals Jatropha 1,590 such as Corn (Maize), Guinea Corn (Sorghum), Millet, Wheat, Rice, Barley, Cassava, Potatoes Rapeseed 1,000 etc. Peanut 890 Sunflower 655 iii. Cellulose Materials – This is a much more Soybean 375 complex sugar polymer found in plant materials crystalline in structure (lignin), and resistant to Hemp 305 hydrolysis. Roughly, two-thirds of the dry mass Corn 145 of plant materials are a form of cellulose and

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It can be used as an additive to reduce vehicle material compatibility concerns associated with emissions or in its pure form as a renewable B100. B20 can be used in nearly all diesel alternative fuel for diesel engines. In the near equipment and is compatible with most storage future, agricultural residues such as corn stover and distribution equipment. B20 and lower-level (the stalks, leaves, and husks of the plant) and blends generally do not require engine wheat straw will also be used. modifications.

Bioethanol Not all diesel engine manufacturers however Flexible-fuel vehicles (FFVs) can operate on any cover biodiesel use in their warranties. Biodiesel blend of bioethanol with gasoline up to 100% contains about 8% less energy per gallon than (E100). About seven million FFVs are currently petroleum diesel. used in the USA running on fuel with 85% bioethanol (E85). US auto companies have B100 - or other high-level biodiesel blends can committed to manufacturer a larger number of be used in some engines built since 1994 with FFVs, in a wide variety of models, to be biodiesel-compatible material for parts such as available at prices competitive with conventional hoses and gaskets. B100 use can increase vehicles. nitrogen oxides emissions, although it greatly reduces other toxic emissions. All vehicles manufactured since 1978 can run on E10. Current warranties for conventional Bioethanol production vehicles do not however cover damages if cars Bioethanol is produced by fermenting sugars are run on levels of bioethanol higher than E10. mainly from cereals such as wheat, maize, In Brazil, given its high use of bioethanol, triticale, rye, barley and from sugar cane or conventional gasoline vehicles are designed to sugar beet. As for biodiesel, the production run on high bioethanol content in gasoline (E25). techniques of bioethanol evolved in time through Table 4 shows some of the feedstocks, their sustained investment in research and annual bioethanol yield and their greenhouse development. gas saving effect compared to petrol. Advanced generations of bioethanol fuel offer Biodiesel the prospect of sourcing energy from an even Biodiesel can be legally blended with petroleum wider range of feedstock. These feedstocks diesel in any percentage. The percentages are include non-food crops such as grasses; designated as B20 for a blend containing 20% agricultural residues such as cereal straws and biodiesel and 80% petroleum diesel, B100 for corn stover; industrial, municipal and 100% biodiesel, and so forth. commercial wastes and processing residues such as brewer’s grain; and forest products and Using B20 (20% biodiesel and 80% petroleum residues such as wood and logging residues. diesel) provides substantial benefits but avoids many of the cold-weather performance and

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Greenhouse Annual Yield Crop gas savings Comments (Litres/Hectare) (% vs Petrol)

Low input perennial grass. Bioethanol production Miscanthus 7,300 37 - 73 depends on development of cellulosic technology. Low input perennial grass. Breeding efforts underway to increase yields. Higher biomass Switchgrass 3,100 – 7,600 37 - 73 production possible with mixed species of perennial grasses. Fast growing tree. Completion of genomic Poplar 3,700 – 6,000 51 - 100 sequencing project will aid breeding efforts to increase yields Long season annual grass. Newer processing plants burn residues not used for bioethanol to Sugar Cane 5,300 – 6,500 87 - 96 generate electricity. Only grows in tropical and subtropical climates. Low input annual grass. Grows in tropical and Sweet temperate climates, but highest bioethanol yield 2,500 – 7,000 No data sorghum estimates assume multiple crops per year. Does not store well. High input annual grass. Only kernels can be processed using available technology. Development Corn 3,100 – 3,900 10 - 20 of commercial cellulosic technology would allow stover to be used and increase bioethanol yield by 1,100 - 2,000 l/ha

Table 4: Selected Bioethanol Feedstocks and Their Annual Yields

Compared with conventional feedstocks, it is particularly difficult to conduct it properly, production of bioethanol from new feedstocks and this calls for the highest industrial standards requires different technological (pre) treatment: to ensure the quality of biodiesel. Today, biodiesel produced or marketed in Europe Bringing down the learning curves and should meet the specifications of the CEN decreasing production costs is a common goal standard EN 14214. for the research in new technologies in both biodiesel and bioethanol industries. However Biodiesel is also produced from animal fats and this can only be achieved if a favourable policy used cooking oils (UCOs). Many European mix provides investors with a required return on producers use recovered vegetable oil and investment. animal fats from food processing, as they are readily available waste products and produce Biodiesel production biodiesel with extremely beneficial greenhouse Biodiesel is commonly produced worldwide as gas savings. “Fatty Acid Methyl Ester” (FAME), derived from recycled or virgin vegetable or animal fats and Several of the biggest biodiesel producers in oils. Although the transesterification process Europe are agricultural businesses who add does not imply a complicated chemical reaction,

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value to their oilseed products and processing In addition to combustion issues, replacing capacities by converting oil to biodiesel. fossil-based fuels with biofuels can lead to other concerns about engine performance, durability Similarly, many are involved in the and fuel storage. petrochemical industry as biodiesel production produces glycerine suitable for the cosmetics The effects of replacing fossil-based fuels and pharmaceutical industries. Biodiesel with biofuels depends on the inherent production also results in increased availability properties of the fuels and engine operating of oilseed cake used for protein in animal feeds. principles.

Algae biodiesel Bioethanol Applications While algae biodiesel has the same characteristics as conventional fuel, the Bioethanol is the most commonly used biofuel production process can be also used to capture for spark ignition (gasoline) engine applications due to similar auto-ignitability properties to those CO² from power stations and other industrial plants (synergy of coal and algae). of gasoline fuel. Currently, 5% of gasoline fuels sold in the US have been blended with ethanol. Algae oil production per acre is extremely high In addition, unlike biodiesel, oxidative stability is and does not even require agricultural land as it not a major problem for bioethanol. Since most can be grown in the open sea, open ponds or on small engines are spark ignition, the future of industrial land in photo bioreactors. Moreover bioethanol in small engine applications appears algae biodiesel production can be combined to be very promising. (See Annex 4 for more with wastewater treatment and nutrient detail) recycling, where polluted water (cleaned by Bioethanol can also be used as an additive in algae) acts as a nutrient in their growth. But most importantly is that algae biodiesel jet fuel diesel engines to enhance combustion and represents the best potential answer for the reduce some emissions in spite of differences in auto-ignitability as compared to diesel fuels. It is sustainability of the aviation industry today. useful to compare the properties of ethanol to Issues related to Engines and regular gasoline and diesel fuels, Table 5. Engine/Fuel Interface Bioethanol generally has a higher auto- Combustion characteristics of biofuels are ignitability than gasoline, which is measured by different from those of regular fuels due to: octane number. It has a greater octane number  differences in fuel flow, (ON) than regular gasoline surrogates and  physical phase change, incomparably higher ON than diesel fuels. In  fuel atomization to chemical reaction, and addition, bioethanol has lower viscosity, wider  heat exchange. flammability limit and lower flash point than

those of both gasoline and diesel.

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Table 5: Fuel properties comparison.

(Highlighted portion indicates important parameters for auto-ignitability)

Property Bioethanol Gasoline No. 2 Diesel

Chemical Formula C2H5OH C4 to C12 C3 to C25 Molecular Weight address the challenges of using ethanol/ethanol 46.07 100–105 ≈200 Carbon blends in both SI and CI engines. Common 52.2 85–88 84–87 Hydrogen disadvantages of applying ethanol to both SI 13.1 12–15 33–16 and CI engines are lower power output, greater Oxygen 34.7 0 0 HC emissions (specific types), phase separation Specific gravity,and material60° F/60° compatibility. F 0.796 0.72–0.78 0.81–0.89 Density, lb/gal @ 60° F 6.61 6.0–6.5 6.7–7.4 Boiling temperature, °F 172 80–437 370–650 Research octane no. 108 90–100 -- Motor octane no. 92 81–90 -- (R + M)/2 100 86–94 N/A Cetane no.(1) -- 5–20 40–55 Fuel in water, volume % 100 Negligible Negligible Water in fuel, volume % 100 Negligible Negligible Freezing point, °F -173.2 -40 -40–30b Centipoise @ 60° F 1.19 0.37–0.44a 2.6–4.1 Flash point, closed cup, °F 55 -45 165 Reid vapour pressure, psi 2.3-2.5 8-15 0.2 Blending Reid vapour pressure, psi 18-22 8-15 -- Heat of Vaporization, Btu/lb @ 60° F 362-400 140-170 ≈100 Higher Heating Value, Btu/lb (liquid fuel-liquid water) 12,800 18,800–20,400 19,200–20000 Lower Heating Value, Btu/lb (liquid fuel-water favor) 11,500 18,000–19,000 18,000–19,000 Auto-ignition temperature, °F 793 495 ≈600 Flammability limits, vol% 3.3-19.0 1.0-8.0 - Btu/lb air for stoichiometric mixture @ 60° F 44 ≈10 ≈8 Mixture in vapour state, Btu/cubic foot @ 68° F 92.9 95.2 96.9c Fuel in liquid state, Btu/lb or air 1,280 1,290 – Specific heat, Btu/lb °F 0.57 0.48 0.43 Stoichiometric air/fuel, weight 9 14.7a 14.7 Volume % fuel in vaporized stoichiometric mixture 6.5 2 –

Biofuels: Policies, Standards and Technologies World Energy Council 2010 40 Table 6: Summary of benefits and drawbacks in using bioethanol as a gasoline substitute

Benefits Drawbacks Categories Advantages Reason Disadvantages Reason

Operability in high compression ratio engine due to its high octane Less power output Less heating value Engine Better combustion Increases in volumetric (per mass) performance efficiency efficiency from cold manifold Possibly poor combustion Faster laminar flame speed characteristics Phase separation of oxygenated fuels Possibly lean combustion

More complete combustion/ lean – combustion Higher particular HC Unique ethanol Lower HC and CO emissions, such as oxidation path (without consideration of Less aromatic octane acetaldehyde (ethanol), evaporative emissions) enhancers formaldehyde, methane, Lower emissions related Emissions ethylene and acetone to aromatic compounds Less volatile organic Higher carcinogenic Lower VOC emissions compounds evaporative emissions (for High evaporative (for ethanol blends) the blends with small-to- pressure/ Distillation Lower sulfur contents Derived from organic medium ethanol fractions) temperature feedstocks

High volatility Vapour lock (only for the blends with small-to- Presence of water E20 can reduce injector Synergistic effects of high medium ethanol fractions) Oxy polarity/ Water Engine durability tip for a gasoline direct latent heat and aromatic and Phase separation contamination/ Ionic injection engine. sulfur content reductions Material compatibility (both contamination such as metal and elastromer) chloride ions or acetic acid

Storage and Leakage from storage Water content and

Handling corrosion electricity conductivity

Bioethanol as a Gasoline Substitute Issues with Bioethanol – All Applications Bioethanol in gasoline engine applications is There have already been some solutions to today the most practical and widely used biofuel address the challenge of using ethanol/ethanol and is potentially the most feasible renewable blends in both SI and CI engines. Common replacement for small gasoline engine disadvantages of applying ethanol to both SI applications (Table 6). and CI engines are lower output, greater HC emissions (specific types), phase separation Bioethanol in Diesel Engines and material compatibility. Despite the fact that the cetane (reverse of octane) numbers of ethanol and diesel fuels are The lower energy content (of both FAME at the different extreme ends, adding ethanol to biodiesels and ethanol) cannot be altered; diesel fuel has been done in order to enhance however, the amount of injected fuels in each combustion efficiency and reduce some cycle can be increased by redesigning and emissions. The ethanol-diesel blend is referred presetting an engine so that load specification is to as e-diesel. satisfied.

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HC emissions (especially acetaldehyde, gasoline light front composition to mitigate formaldehyde, methane, ethylene and acetone) volatility increase caused by bioethanol addition. that occur due to the oxidation of ethanol-related Another approach to reduce evaporative fuel can probably be reduced by lean emissions is to avoid using plastic material for a combustion, which can be generated with either fuel system as permeability of ethanol through air enrichment or EGR dilution. plastic material is high.

Phase separation is perhaps the most salient Finally, a canister can be used to purify the drawback to ethanol use, causing blend vented air through fuel. However, backfire of a degradability and therefore poor combustion canister is possible and troublesome, and occur quality. The primary solution is to have a dry especially with old canisters that have HC distribution system or add either emulsifier or buildup. co-solvent additives. Gasoline composition, hydrocarbon families, also have an important Cold weather startability is another major role in ethanol/gasoline mixture stabilization. problem of using enriched-to-pure ethanol blends in an SI engine, caused by inherently Real-time blending of separated ethanol and high latent heat of evaporation and low Reid gasoline is another possibility to solve phase Vapour Pressure (RVP). separation problems. This can be done by using a modified carburetor. Material Adding VOC is one solution; however, it compatibility problems are caused by oxy- increases VOC related emissions. Another polarity of ethanol, which enhances solution is to install a reliable heating device to a dissolvability, electric conductivity and water fuel system. The drawbacks to this solution are affinity of the blends. cost and start-up retardation. In CI engines, pre-combustion and multi-injection can be used Bioethanol is incompatible with elastomeric and to mitigate the risk of having severe combustion some metallic materials (such as aluminum, caused by too long ignition delay time. zinc, tin, lead-based solder or brass). Since material compatibility is caused by the polar Phase separation can be prevented by removing nature of bioethanol, the best solution to this water from the fuel. Also, adding some problem is to avoid incompatible materials emulsifiers, additives and aromatics also although selected lubricants might partially prevents phase separation of diesel-bioethanol reduce the severity of the problem. blends.

In SI engines, bioethanol-gasoline blends have higher volatility, increasing vapour lock potential and evaporative emissions especially in the hot summer. One effective solution is to control the utilization period of ethanol blends or to change

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Table 7: Summary of benefits and drawbacks in using biodiesel as a diesel substitute

Benefits Drawbacks Categories Advantages Reason Disadvantages Reason

Less power output Lower power density (per mass) Engine Better combustion Additional oxygen in fuel Relatively higher viscosity and performance efficiency Poor atomization heavier molecular weight

Reducing THC, CO Better combustion due to additional oxygen Less sulfur content, Inherent properties Increased NO Hotter combustion due to Emissions compared to diesel Less sulfur x additional oxygen Increase NOx after- treatment efficiency Derived from organic Biodegradability substances

Oxy-polarity in esters makes Broken seals biodiesel a good solvent High pour point and cloud point Poor operability in cold temperatures Can be used in a new weather Dissolved residuals from a fuel diesel without major Same auto-ignitibility Engine tank that used to be filled with modification range as diesel durability Fuel system 100% diesel Reduced wear of Enhanced lubricity encumbrance Escaping fuel from a metallic components combustion chamber Engine oil degradability Decompose during ignition Injection tip delay time and high cloud point temperature

Storage and More difficult to catch Sensitive to water, temperature, High flash point Fuel degradability Handling file microbial creatures and oxygen

Biodiesel Applications Advantages The adoption of biodiesel/diesel blends is very The outstanding advantage of using biodiesel promising since properly designed blends have blends as engine fuel is their adaptability to a proven to have better combustion efficiency and diesel engine without any major engine lower emissions than diesel fuel alone. modification, especially when a limited fraction of However, some properties of biodiesel and biodiesel is introduced to the blend. engine durability problems limit the maximum The maximum amount of biodiesel blended with fraction of biodiesel. Biodiesel has good lubricity regular diesel depends on engine models. Newer and can be used to improve lubricity of diesel engine models from large engine manufacturers fuel. can tolerate (and warranty) as high as 20% Biodiesel as a Diesel Substitute biodiesel in the blend. However, use of B20 or higher fractions of biodiesel requires some Biodiesel can be used as a direct substitute for precautions on fuel degradability, fuel filters, cold diesel, or in a blend with diesel. Table 7 weather operation, and maintenance. presents the advantages and drawbacks of using biodiesel as a diesel substitute. Several Additional oxygen in Fatty Acid Methyl Ester technical improvements on both fuels and (FAME) biodiesels improves fuel oxidation engines are still required, which might lead to (combustion), leading to more spontaneous slightly higher costs of operating a diesel engine combustion and better combustion efficiency. At with biodiesels. the same time, it reduces the total energy content of the fuel by ~10% (on a mass basis) primarily because oxygen carries less energy than heavy hydrocarbon molecules.

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This is the primary reason for reduction of engine The high lubricity of biodiesel extends the power output when using 100% (neat) biodiesel. lifetime of fuel injection systems as well as However, at lower biodiesel fractions, there is metallic components that have sliding contacts some discrepancy in the literature about the with each other. Finally, it is safer to handle and effect on power output – some studies show store biodiesel at high temperature as biodiesel higher power output whilst others report a has a high flash point due to its composition of reduction. non-volatile fatty acid methyl esters (FAME). This is likely due to the combined effects of In recent years, for environmental reasons, a better efficiency and lower heating value. number of countries have been reducing Furthermore, engine power output can be significantly the amount of sulphur contained in affected by other parameters (e.g. intake automotive fuels. In the specific case of diesel, it manifold conditions, fuel temperature, injection is now common to find diesel with 15 parts per timing, and flow inside a cylinder). million of sulphur rather than 300, 500 or even 1,000 parts per million which used to be the More complete combustion of biodiesel can norm in the 1990’s. substantially reduce unburned hydrocarbon (HC) and carbon monoxide (CO) emissions. However, a negative side effect of reducing However, biodiesel can increase NOx emissions sulphur in regular diesel is a significant as the combustion temperature is higher. NOx decrease in lubricity. Therefore it is necessary emissions can be reduced by replacing some of to add chemical components to maintain the the FAME biodiesel with kerosene or Fischer- required standards. It has been proved that the Tropsch diesel. In addition, for an engine with a use of biodiesel, in relatively small amounts (0.5 catalytic converter, inherently low sulphur in – 2.0 % in volume), can help significantly biodiesel leads to a better NOx catalytic increase lubricity, even to similar levels once conversion efficiency and therefore, after- obtained using regular chemical additives. treatment from a biodiesel engine probably emits less NOx. Issues with Biodiesel Fuel lubricity helps prevent engine wear and Engine durability is the real challenge of using extends engine life. In regular diesel fuels, the biodiesel blends as an engine fuel. Oxy-polarity natural sulphur content enhances lubricity. of esters makes biodiesel a good solvent, However, tighter sulphur regulations have causing two major problems. Firstly, caused lubricity problems. Fortuitously, elastomeric seal degradability can increase, biodiesels derived from vegetables oils have an including swelling, shrinkage, embrittlement and ultra low sulphur level yet also have high changes in physical properties such as lubricity. Better lubricity is attributable to oxy- hardness and tensile strength. polarity if esters and high molecular weight of fatty acid chains. Secondly, high solubility of biodiesel could cause fuel system encumbrance especially

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when used in an engine normally operated with Poor atomisation can be solved by redesigning regular diesel fuels. During the use of the an injector and reducing fuel viscosity. Engine regular diesel fuels, deposits accumulate in the durability problems due to the use of biodiesel fuel tank. Addition of biodiesel loosens these require some modifications on both engines and deposits and re-introduces them into the fuel fuels. stream. Although some additives can improve cold High cloud point and pour point temperatures of temperature properties of biodiesel, further biodiesel reduce thermal stability and limit the improvement is still necessary for reliable cold weather operability of both pure biodiesels operation in cold weather areas. and blends. Problems at the injector tip might occur when using biodiesel, which with soybean Despite greater amounts of NOx emissions biodiesels can break down at 430C to 480C. produced from biodiesel combustion, they are not deemed problematic for an engine with a This indicates the potential to decompose during catalytic converter. In fact, NOx emissions ignition delay time which could cause deposits produced by a biodiesel engine with a catalytic at the injector tip, thereby shortening the life converter might be lower than a regular diesel time and could cause injector failures. engine due to the lower sulphur content of biodiesel. It is difficult to store biodiesel over a long period of time due to fuel degradability which can be Preventing an external flame from entering a divided into four main categories: hydrolysis, fuel tank is important due to the extended thermal degradability, biological degradability flammability limit and lower flash point. The risk and chemical degradability. Since biodiesel is can be mitigated by a flame arrestor. It is very sensitive to water, temperature, microbial necessary to evaluate the effects of biofuels on action and oxygen, unpleasant changes of the transport sector. Engines should be biodiesel properties can occur rapidly (within a designed for or adapted to using biofuels. few months). Technology Outlook for Biofuels Potential Solutions The recent developments in biofuels suggest Engine power reduction when using biodiesel that the rapid growth of biofuels use could can be avoided by using a blend instead of neat continue for decades. biodiesel. In addition, some engine The potential for biofuels is particularly large in configurations (such as intake conditions and tropical countries, where high crop yields and injection timing) can be adjusted to obtain the lower costs for land and labour provide an power output such that it satisfies the power economic advantage. It has been estimated that requirements for particular applications. worldwide sugar cane production could be expanded so that crop alone could displace about 10 percent of gasoline use worldwide.

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Table 8: Feedstock Logistics and Technology R&D Needs

Feedstock System Logistics Design and Management

 Design of Feedstock collection, Storage, and Pre-processing system will be based on: o Enhanced systematic economic analysis of cost reduction options o Feedstock type o Support a wider variety and larger quantity of feedstocks o Regional geography o System ownership structure

 Challenges: o Improving soil productivity o No water environments o Reduced labour cost o Reduced fuel costs

Research and Technology Development Needs

Near Term (2008-2012) Long Term (2012-2025+)

 New technologies required to support efficient,  R&D on biofuel feedstocks with low water economic and sustainable biomass collection demand and handling. Includes:  Improving the utility of crop residues

o Harvesting equipment designed specifically  Hydrogen production for biomass to bioenergy applications o Nutrient recycling o Feedstock movement processes o Advanced harvesters for residue collection o In-forest grinders o Technologies for effective separation of oils, proteins and carbohydrates o Fractionation technology o Improved feedstock analysis

 Regional specific feedstock yield research to identify which species/crops provide best biofuel/energy for a specific local condition  GIS and remote sensing for land use planning

 Gray water and water treatment  Algae feedstocks

The expansion in biofuels production and use  Pre-processing/grinding equipment that will require the development of new equipment transforms feedstocks to the proper moisture and methods to collect, store and pre-process content, bulk density, viscosity, and quality. biomass in a manner acceptable to biorefineries. These include:  Transportation of feedstocks from the field to  Harvesters and collectors that remove the biorefinery. feedstocks from crop land and out of forests.  Storage facilities that support a steady supply of biomass to the biorefinery, in a manner that prevents material spoilage.

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Table 9: Research and Technology Development Needs

Near Term (2008-2012) Long Term (2012-2025+)

 General:  General o Process integration o Integrated carbon capture and storage o Pollution control equipment o Use co-products as chemical feedstocks o Conversion processes to transform proteins  Biochemical conversion and lignin’s into co-products o More cost effective processes o Ionic liquids supercritical fluid membrane o Increase the variety of products available o Consolidated bioprocess one-stop shop o Increase scale of systems o Minimise water use and waste water  Catalysts: generated o Development of highly selective o Improved use of C-5 and C-6 sugars thermochemical catalysts o Development of improved mixed alcohol  Thermochemical conversion catalysts o More cost effective processes o Reduction in environmental impacts of production o Gasification . Enhanced feed systems . Lower tar production . Economics at smaller scale . Gas cleaning . Better synthesis catalysts

o Pyroloysis liquids . Improve qualities of biofuels . Separation by or after pyrolysis . Oil upgrading and extraction . Catalysts o More thermo-tolerant biological catalysts o Highly selective catalysts to improve efficiency

While many of the high priority technical barriers  Thermo-chemical – where will need to focus on reducing the currently high pyrolysis/gasification technologies costs of harvesting, pre-treatment and produce a synthesis gas from which a separations, the hurdles that must be overcome wide range of long carbon chain biofuels fall into the following two main areas: Logistics can be reformed. and Technology R&D needs.  Biochemical conversion – in which Processing/Conversion Science and enzymes and other miocro-organisms Technology are used to convert cellulose and hemi cellulose components of the feedstocks  Processing and conversion includes a range to sugars prior to their fermentation to of activities from separations in the pre- produce ethanol processing/processing stage to conversion of biomass feedstocks into useful fuels. A high priority for activities is in the development if modular pre-treatment, processing and  The production of biofuels from feedstocks fractionalization methods. These “on-farm” can be achieved through two very different methods can reduce feedstock transportation processing routes. They are: and overall life-cycle costs.

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 For actual biofuel production, the challenge is related wild relatives to crops through embryo to reduce the cost. rescue and in vitro fertilisation or plant protoplast fusion.  However, to reduce the cost, there needs to be wider product usage and consumption. Molecular marker technology is useful for assisting and accelerating selection by Productivity Improvement in Agriculture conventional breeding. It is a powerful way to through Biotechnology identify the genetic basis of traits and is used to Agriculture is expected to feed an increasing construct linkage maps to locate particular global population, which may reach 8 billion genes that determine beneficial traits. Using people by 2020, of whom 6.700 billion will be molecular markers, genetic maps of great detail living in developing countries. Although the rate and accuracy have been developed for many of population growth is steadily decreasing, the crop species. increase in absolute numbers of people to be fed may still put a significant strain on the world Markers are particularly useful for analysing the agriculture. (See ANNEX 5 for more detail) influence of complex traits like plant productivity and stress tolerance and are being employed to The technological challenge is to achieve this develop suitable cultivars of the major crops. agricultural productivity improvement without destroying the global natural resource base. Generation of genetically modified transgenic New technologies, such as biotechnology, if plants with a range of added traits uses properly focused, offer a responsible way to advanced recombinant DNA techniques enhance agricultural crop productivity for now including genetic engineering and cloning. and the future. Several transgenic cultivars of major food crops, such as soybeans, maize, canola, potatoes and The main biotechnological applications in crop papayas, have been commercially released biotechnology include tissue culture, marker- incorporating genes for resistance to herbicides, assisted selection and transgenic technology. insects and viruses. Tissue culture includes micropropagation; embryo rescue; plant regeneration from callus It is estimated that the global area planted with and cell suspension; and protoplast, anther and transgenic crops has risen from 1.7 million microspore culture, which are used particularly hectares in 1996 to 44.2 million hectares in for large-scale plant multiplication. 2000.

Micropropagation has proved especially useful Crop improvement continues to benefit from in producing high quality, disease-free planting advances in plant molecular biology and material of a wide range of crops. Tissue culture genomics. The completion of the genome also provides the means to overcome sequence of the mustard (Arabidopsis thaliana) reproductive-isolating barriers between distantly and rice and the continuing work on functional

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genomics has tremendous direct benefits both resource conservation such as an Integrated for dicotyledons and monocotyledons. Nutrient Management Supply system needs to be fully realised. The increase in understanding of gene regulation and expression will allow crops to be Livestock production looks to raise the quantity modified to provide food, fibre, medicine and of livestock in circulation such as beef cattle, fuel as well as tolerance to environmental sheep, and hogs and establish dairy farms, stresses. The tools are in place to meet future poultry/egg farms, and animal specialty farms, food demand through increases in crop such as apiaries (bee farms) and aquaculture productivity with less land and water to meet the (fish farms). Crop production includes the demand of the population increase. growing of cash grains, such as wheat, corn, and barley; field crops, such as cotton and It is however, important to recognise that tobacco; vegetables and melons; fruits and nuts; transgenic gene escape and genetic erosion and horticultural specialties, such as flowers and and new products of biotechnology can cause ornamental plants. possible environmental risks. Mainly involving genetically modified crops; such concerns have With the growing demand to increase food been raised. Adequate bio-safety regulations, production, the pressure falls on farmers to risk assessment of transgenic crops and improve on farm practices. The first objective establishment and compliance with appropriate would be to tackle declining soil quality, caused mechanisms and instruments for monitoring use by soil tillage. As a result, No Till/Conservation are needed to ensure that there will be no Agriculture (NT/CA) has been developed. harmful effects on the environment or for the users. This is an effective technique in reducing soil degradation. Using this method, crop residues With the growing global population, the demand or other organic amenities are retained on the for food and cash crops will continue to soil surface and sowing/fertilising is done with increase. However, this growth curve may not minimal soil disturbance. herald an increase in resources, e.g. available farmland, as has been the case in past years. A Although some obstacles may present synergy of resources and farm practices would themselves during a transition to this practice, be required to achieve significant improvement previous experience seems to indicate that in yield based on new plant varieties and many problems are temporary and become less farming technologies. important as the no-till system matures and equilibrates. Judicious use of crop rotation, Productivity must increase on all farmland, not cover crops and same soil disturbance may help just in highly productive areas. More variety and reduce agronomic risks. Farmers switching to assortment of crops other than the three key continuous no-till must often seek new cereals need to be developed. The potential for knowledge and develop new skills and

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techniques in order to achieve success with this IPM is an ecologically based strategy focussing different way of farming. on long-term solution of pest-control by a combination of techniques such as biological Integrated Pest Management control, habitat manipulation, modification of The awareness of the effect of globalisation on agronomic practices, and use of resistant crop the environment, pressure from activist groups varieties. Using a single tactic to control a and concerned citizens, governments and specific organism does not constitute IPM, even producers must increase food production if is an essential element of the IPM system. without damaging the ecological foundations of Integration of multiple pest suppression agriculture. This underlies the need for the techniques is probably the best way of generation and diffusion of new technologies to sustaining long-term crop protection. produce sufficient food to protect the environment and human health. An integrated Pesticides may be used to remove/prevent the pest management (IPM) system incorporates target organism, but only when assessment by such technology. means of monitoring and scouting indicates they are needed to prevent economic damage. Pest Insect pests, diseases and weeds are the major control tactics, including pesticides, should be constraints limiting agricultural productivity. carefully selected and applied to minimise risks to human health, beneficial and non-target Almost a fifth of overall crop production is lost to organisms, and the environment. insects. Emerging problems such as insecticide resistance, secondary pest outbreak and The foundation for this system is the creation of resurgence further add to the cost of plant a database of susceptible pest types and their protection. effects. Information obtained from this database aids selection of the best possible combinations In developed countries, losses in production are of the pest-control methods. on the rise. New cropping patterns and intensive agricultural practices have led to the emergence IPM also looks at the continuous pest resistance of new pests. To combat this, IPM systems breeding process, using genetic techniques to apply a combination of pest control strategies, combat pathogens with the ability to co-evolve particular to the region involved. These include with their host. This is a peculiarity among plant the use of biological, chemical, cultural and pathogens. An example of this is the resistant variety controls. IPM is thus more incorporation of genetic material from Bacillus complex to implement, as it requires skill and thuringiensis (Bt), a naturally occurring understanding of pest monitoring and dynamics, bacterium, in cotton, makes the plant tissues and en masse co-operation by producers for this toxic to the insect pests. to be effective. An IPM should also include crop production practices that make the environment less

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susceptible to pests. Crop rotation, fallowing, botanicals are broad-spectrum pesticides and manipulation of planting and harvesting dates, are generally less harmful to the environment, row spacing and destruction of old crop debris because of their quick degrading property. They are some examples of cultural methods used to are less hazardous to transport but the major manage pests. Planting of cover crops, nectar- advantage is that these can be formulated on- producing plants and inter-planting of different site by the farmers themselves. crops to provide habitat diversity to beneficial insects are important management techniques. Integrated Plant Nutrient Management & Supply (INMS) Examples of an IPM system practised include Continuous crop production without adequate the placement of plastic-lined trenches in potato management tends to reduce nutrient reserves fields to trap migrating Colorado beetles, in the soil. If left unchecked, this cumulative installation of dead as well as live bird perches depletion leads to a reduction in agricultural in cotton and chickpea fields has proved production and crop yield, soil fertility and effective in checking the bollworm infestation. degradation. Techniques to conserve and add These constitute some physical control nutrients to the soil by the application of organic measures. Biological control measures of IPMs or inorganic fertilisers can help to maintain and include augmentation and conservation of increase soil nutrient reserves. natural enemies of pests such as insect predators, parasitoids, parasitic nematodes, However, one must note that an over supply of fungi and bacteria. nutrients can cause serious problems including harm to end-product consumers, damage to the Direct chemical control measures would involve plants themselves, etc. The relative low cost of the spraying of pesticides, which are used to fertiliser is also a problem in that it leads some keep the pest populations below economically farmers to apply them in amounts far exceeding damaging levels when they cannot be controlled plant needs, as well as in quantities far by other means. Pesticides include both exceeding the soil capacity to hold nutrients. synthetic and plant-derived pesticides. Ideally, pesticides should be used as a last resort in IPM An Integrated Plant Nutrient Management and programmes because of the potential negative Supply (INMS) system has been developed in effect on the environment. many countries and research institutes to strike this balance. Botanical pesticides are a potential replacement for their synthetic counter-parts and can be The application of regulated measures for both prepared in various ways, e.g. as simple as raw organic and non-organic fertilisers is one crushed plant leaves, extracts of plant parts, and approach by an INMS system to correct chemicals purified from the plants; pyrethrum, nutritional imbalance. This not only increases neem, tobacco, garlic, and pongamia crop yield, but also reduces the need to cultivate formulations are some examples. Some unsustainable marginal lands. In Kenya, the

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application of nitrogenous fertiliser on nitrogen- of research, extension, evaluation and poor soils increased maize yields from 4.5 to 6.3 dissemination of technologies. metric tonnes per hectare, while application of a less-appropriate fertiliser increased yields to Different climate, soil types, crops, farming only 4.7 tons per hectare. practices and technologies mandate that a correct balance of nutrients necessary for any Incorporating the use of (manmade) non-organic one farm may be quite different from that for a fertilisers is a crucial resource-tool of INMS. farm in a different location. In Africa for example, Governments involved in support of INMS the challenge is intimidating because of severe programs can boost production potential by climatic and soil conditions and the diversity of enacting policies/programs making organic and smallholder farmers. inorganic fertilisers easily available and affordable. Successful INMS adoption programs thus must facilitate an exchange of information between An INMS system also looks at utilising waste as farmers, extension programs, and researchers an extra plant nutrient source. Although this is a that help these participants learn about what relatively poor substitute for commercial actually works for farms in their area. Adoption fertilisers, wastes, in the form of urban sludge, programs also require greater monitoring and improve soil structure and both contain testing of plants and soils to ensure that INMS secondary and micronutrients as well as NPK. establishes the best environment for plant growth. In addition to the above, the use of waste (especially treated waste) as a supplement to A paradigm shift to organic agriculture fertilisers is economically viable as it reduces Organic agriculture, according to USDA the cost of disposal and health risks associated definition, is a system that is managed in with landfill disposal. This is extremely beneficial accordance with the Organic Foods Production to farmers who cannot afford inorganic Act and regulations to respond to site specific fertilisers. conditions by integrating cultural, biological and mechanical practises that foster cycling of An INMS system also looks at reducing the resources as well as promoting ecological occurrence of volatilisation, a process by which balance and conserving biodiversity. crops lose nitrogen into the atmosphere. This aids improving the efficiency of nutrient uptake This involves a set of practices in which the use by crops. New techniques, such as deep of external inputs is minimised. Synthetic placement of fertilisers and the use of inhibitors pesticides, chemical fertilisers, synthetic or urea coatings, have been developed to preservatives, pharmaceuticals, GM organisms, address this problem. sewage sludge and irradiation are all excluded. Interest in organic agriculture has been boosted An Integrated Nutrient Management Supply by public concern over pollution, food safety, system requires a range of factors in the areas

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human and animal health, and by the value set and crop rotation, conserves soil and water on the environment. resources and builds soil organic matter and biological processes. Pests and diseases are In developed countries, like Germany, kept at bay by crop association, symbiotic government subsidies have helped to make combinations and other non-chemical methods. organic agriculture economically viable. Water pollution is reduced or eliminated. In the late 20th century, the total area of organic Although yields are often 10% to 30% lower land in Europe and the United States tripled, than in conventional farming, organic agriculture albeit from a very low base. However, many can provide excellent profits. In industrialised European countries have ambitious targets for countries, consumer premiums, government expansion, with the result that Western Europe subsidies and agro-tourism boost incomes from may have around a quarter of its total organic farms. In developing countries, well- agricultural land under organic management by designed organic systems can give better yields, 2030. profits and returns on labour than traditional systems. Large supermarket chains such as Tesco, Wal- mart, Asda, etc have bought into this recent Organic agriculture also has social benefits. It organic explosion, compelling them to invest uses cheap, locally available materials and more as potential demand far outstrips supply. usually requires more labour, thereby increasing In many industrial countries, sales are growing employment opportunities. This is a at 15% to 30% per annum. The progress of considerable advantage in areas where or when organic agriculture is fostered by certified there is a labour surplus. By rehabilitating inspection agencies on clearly defined methods. traditional practices and foods, organic agriculture can promote social cohesion. Certain Organic agriculture offers many environmental policy measures are essential for the progress benefits. Agrochemicals can pollute of organic agriculture to continue. groundwater, disrupt key ecological processes such as pollination, and harm beneficial micro- Support for agriculture is increasingly shifting organisms and cause health hazards to farm from production goals to environmental and workers. Modern monoculture using synthetic social goals, a trend that could favour organic inputs often harms biodiversity at genetic, agriculture. Agreed international standards and species and ecosystem levels. The external accreditation are needed to remove obstacles to costs of conventional agriculture can be trade. substantial. Other key areas to look at include: In contrast, organic agriculture sets out to enhance biodiversity and restore the natural  Improved marketing strategies. ecological balance. It encourages both spatial  Improved agro-forestry systems. and temporal biodiversity through inter-cropping

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 Improving irrigation and water harvesting Practices would involve routine hormone systems enables farmers to produce more therapy, artificial insemination through crops per drop, and multiply their incomes biotechnology, a deeper understanding of through high-value products. animal genetic make-up for improved disease control, adaptation to environmental stresses  An improved seed system/use of improved and increased production. Intensive systems of crop varieties. stall-feeding can be expected to continue and Livestock production would also need a accelerate in areas where land availability is significant boost to meet demand as they not scarce, leading to less soil damage and faster only supply meat, dairy products and eggs, but fattening. also wool, hides and other industrial goods. Livestock production can be closely integrated A continued shift in production methods can be into mixed farming systems as the end-users of envisaged, away from extensive grazing crop by-products in addition to acting as sources systems and towards more intensive and of organic fertiliser, ploughing and transport. industrial methods. Mixed farming, in which Selection and breeding and improved feeding livestock provide manure and draught power in regimes, could lead to faster fattening and larger addition to milk and meat, still predominates for animals. cattle. As populations and economies grow, these multipurpose types of farming will tend to make way for more specialised enterprise.

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Attracting substantial finance and investment is world-wide adoption of competitively priced a prerequisite for scaling up the development of biofuels. biofuels internationally. The challenge is to Generally, the development of biofuels on a introduce the right policy frameworks and global scale makes a lot of sense. So what then financial tools to enable biofuels to achieve their can and should be done about the diversity of market potential. source types available for biofuels and the diversity of geographical assets (e.g. Brazilian Capital flows to the market environment which sugar cane, American corn, India’s cassava, demonstrates strength, clarity and stability: That Africa’s sorghum, Europe’s wheat, etc)? How will environment must be specific enough to Brazil’s sugar cane be used in the United States improve the bankability of projects and provide or how will African sorghum be used in Europe or conditions for steady market growth. Rules and how will American corn be used in Asia? incentives need to be stable and sustained for a duration that reflects the financing horizons of Petroleum price volatility the projects. During the era of oil dominance, the price of oil has always been of great interest. The link It is important to note that at the early stages of between the early economic development and development of the biofuels – or any other - the access to energy has given the price of oil a technology, supplementary incentives that great importance on a global scale. More support technology innovation are required in recently, given a better understanding of the order to provide an environment that rewards consequences of climate change, a new entrepreneurial activity. dimension of the oil price has emerged.

A framework which fosters local ownership, Petroleum is a highly concentrated energy production, processing and use can enhance resource, and the world’s current transportation commitment to biofuels. Development of strong systems are almost completely dependent on it. domestic credit markets is a necessary element As a result, the world economy is (or could be) in the financing chain to enable businesses to at risk if oil supplies are disrupted in any of the access finance for their activities. This requires relatively few countries that are significant oil both capacity building and improved information exporters. exchange. As a result of concentrated wealth, social At present, there is no robust global market for tensions, and inadequate political institutions, biofuels, only a few weak regional markets. There many of these countries are less-than-secure are two reasons for this. First, an international suppliers of the world’s most vital commodity. technical standardization of biofuels has not yet Biofuels promise to bring a much broader group taken place. Second, protectionist policies of countries into the liquid fuel business, developed in producing nations have prevented diversifying supplies and reducing the risk of disruption.

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Since biofuels can practically be produced demand from Asia, China in particular, around in most regions of the world, the risks inherent in 2004 started a price rally that was discontinued transporting them over long distances will be only by the crash in the global economy in 2008. reduced, too. In the long run, this is likely to help stabilize fuel prices. The US dollar exchange rate, given its dominating role in oil transactions globally, will As for any other commodity, the oil price is have an immediate effect on the oil price. This fundamentally based on two drivers: supply and price effect will of course vary from one country demand. The history though, has proven that to another as a consequence of its exchange not only these two drivers have an impact on the rate against the dollar. Nevertheless the dollar price. oil price will rise when the trade weighted dollar exchange rate falls, and vice versa. A range of other factors, including the US dollar exchange rate, oil inventories, refinery capacity, Other factors contributing to a volatile oil price geopolitical and other unexpected events, include psychological factors as well as human psychology and behaviour, availability of inventories. The mere perceived risk of substitute energy sources, and developments in shortages in the market is sometimes enough the financial sector, all have an impact on the oil for price increase. price. During the first years of the 21st century Typical features of oil business are its highly production capacity was close to balancing the technological and complex nature, with long demand. This made the market nervous due to term investment commitments, cyclical the insufficient spare capacity, in case of a developments, high fixed and low variable costs. major incident. Inventories are also of importance. Among other things they give a The supply and demand are the key factors. clear signal about the supply situation. Over the years, supply disruptions or rapidly Increasing inventories normally show that the changing demand fluctuations have affected the market is well supplied and that the risk of a oil price significantly. In 1974 and later in 1978, supply crisis is low and vice versa. the use of oil as a part of the political agenda had significant impacts on the oil price. The The difference between the full cost barrel for increased prospecting and later production of oil the highest marginal production and the lowest in other regions, such as the North Sea, Alaska marginal variable cost is significant. The and the Mexican Gulf ensured a long period of estimate of US$80 per barrel for oil sand increasing production capacity. investments and other front edge production technologies is not out of the ordinary, Combined with a decreasing demand after the compared to the marginal variable cost of less second oil crisis in the late seventies, this led to than US$10 per barrel. a long period of large overcapacity and low oil prices. The unexpectedly quick increase in

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Figure 1: Soybean price development 2008-2009

The role of the financial sector in oil price setting Biofuels as an Alternative to Oil has been broadly debated during the 2008 Despite potential future supply constraints, the economic crisis. OPEC has stated very clearly recent global economic slowdown forced the that it blames the financial sector for the strong price of oil down to the point where it seriously volatility in the market during 2008. Others undermined the expectations of continuously argue that the financial sector can never high oil prices. In July 2008, when the oil price influence such a market to the extent that it was US$147 per barrel, it was unthinkable that drives the price. within six months it could fall back to US$30.

Substitutes as well as the general price elasticity Such volatility undermines investor confidence of the product are also of concern. The energy and the expectations that future supply and market has a number of border areas where the demand constraints will push oil prices to a point consumer could chose between different types where alternatives, like biofuels become and of energy for the same application. remain lucrative. Consequently, alternative fuel projects become less attractive to the financial Prices and price development trends of, for markets because they require large cash example, coal, natural gas, biomass, biofuels commitments. and other primary energy resources have an impact on the oil price and vice versa. The price Vegetable Oil Markets’ Volatility elasticity of certain products within the The high volatility which has always been a petroleum sector is extremely low. Aircrafts, for feature of financial markets, has been growing instance, must today use a globally even stronger in the past few years and it has standardised product and there are no gradually spread towards commodities markets. substitutes available.

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Figure 2: Soybean oil (red line) and London ICE gasoil (black line) prices

Vegetable oil markets and raw metals have been Figure 2 clearly demonstrates the spread always lead by physical drivers and real factors between Soybean oil price (red line) and London and the prices have been set by the match ICE gasoil (black line). This could be considered between real supplies and demand. Moreover, as a proxy of the trend for the mark up by biofuel vegetable oil price has also been influenced by producer/seller. There are some periods in the weather conditions which have a significant which the price of raw materials outpaces that of effect on harvests. gasoil causing a contraction of the mark up and the risk of a loss. Lately, the trend of vegetable oils prices has been strongly influenced by speculation and this has Examination and implementation of hedging resulted in an non-linear trend, hardly connected strategies is crucial to ensure profits. There are to the real economy. numerous financial instruments which can Today, careful monitoring of vegetable oils mitigate risks. On the supply side, there is the prices is essential for biofuels producers. It has possibility to establish contracts defined as “open” become absolutely necessary for them to which offer traders the opportunity to fix the understand the contextual aspects which have vegetable oil price in a period of low prices, while an impact on oil and vegetable oil prices. The oil on the sellers’ side, it is possible to negotiate price influences their sales since it affects derivatives that offer protection against the biofuels prices, while vegetable oil prices downturn of oil price. Prudent hedging strategies influence the supply side since they affect the have been of key importance during the first half price of raw materials. of 2009.

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Financial Requirements for Developing To finance a commercial scale biofuels refinery Commercial Scale Biofuels Production the off-take risk is of greater significance. For There are two ways to pay for the development example, if a production facility were built on of a commercial scale refinery hrough financing speculation, the expected financial risk would be or cash. Before considering funding options, it much greater and the cost of capital would is necessary to understand the demand for increase. At present, as a result of the 2008- biofuels. All references below are in terms of 2009 financial crisis the financing of a barrels of oil equivalent (boe) and not in tonnes. speculative biofuels production facility is almost impossible. However, if “off-take” contracts Demand for Biofuels (also known as off- were signed guaranteeing that buyers would take) purchase the biofuels, financing would be much At present, demand for biofuels has mainly been easier. a function of government regulations and mandates. The actions taken by governments Financing Commercial Scale Biofuels have been necessary to develop the demand for Refineries biofuels. The financial crisis of 2008 and 2009 has made Their supportive policies and regulatory actions developing biofuels refineries more difficult. To will be needed going forward if biofuels are to understand the issues related to financing contribute on a considerable scale to commercial scale fuel facilities other fossil fuel transportation fuels mix. If regulatory support and biofuels based alternative fuel facilities have were withdrawn, it is not at all clear that biofuels been examined. would be able to compete with the current oil derived transport fuel products. In 2007, a project finance team was assembled for a 5,000 barrel a day coal-to-liquids project to In order to build a commercial scale biofuels be built in the United States. The expected refinery it is necessary to understand the role of capital expenditure was US$800 million or the off-take risk. If a developer of a biofuels US$160,000 per barrel per year. refinery determined to pay cash for the facility it is necessary to know the demand of the product. Currently a 35,000 to 53,000 barrel per day As such, off-take analysis is performed by project is in the planning stage for a different developers to ensure that adequate return on coal-biomass-to-liquids project in the U.S. The investment is possible for the investment. Small expected capital expenditure is US$5 billion or commercial facilities have been built without US$94,000 to US$143,000 per barrel. financing, but most, if not all, major facilities required financing.

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In Qatar, the 120,000 barrel per day Shell Pearl require the loan to be syndicated by investment gas-to-liquids facility final costs are expected to banks in an effort to diversify risk for all lenders. be US$18 billion or US$129,000 per barrel. Finally, the Abengoa Madison bioethanol facility Given the large CAPEX requirements and the in the United States is expected to produce high cost of money, securing syndicated loans is approximately 5,480 barrels a day and cost quite difficult without certainty that demand for US$200 million or US$37,000 per barrel. your alternative fuel is guaranteed.

Although there is a large capital expenditure Further, oil price volatility has undermined the difference between the fossil fuels based interest of investment banks to risk placing alternatives and corn-based biofuels, the capital capital into biofuels facilities unless government costs are still significant. loan guarantees and mandates are in place.

Former U.S. Secretary of Energy James Using Cash for Developing Commercial Schlesinger has stated on several occasions Scale Biofuels Refineries that actual CAPEX costs are more valuable Paying cash for the development of commercial indicators than projected CAPEX costs because scale biofuels refineries has been done in cases the best laid plans are ultimately changed by where production was quite small in relative real circumstances. Therefore, the analysis terms to existing oil refineries. Going forward, it below is based on published data of real is unlikely that biofuels developers will develop projects and not planned projects. production facilities unless governments continue developing supportive regulatory Using the CAPEX rates of the Pearl GTL (high actions. cost example) and the Abengoa Biofuels facilities (low cost example), a 100,000 barrel a Production of Biofuels day plant for GTL would cost US$13 billion; for  In 2007, Brazil produced over 4.5 billion the biofuels facility it would cost US$3.7 billion – gallons of sugar-based bioethanol these figures do not factor input price increases, (294k bbl/d refined equivalent). commodity availability or cost of money  In 2007, the United States produced over calculations and only represent 1/8th of one 6.5 billion gallons of corn-based bioethanol percent of displaced oil usage. Although, other (424k bbl/d refined equivalent). fuels sources have different capital costs, the Pearl and Abengoa projects were used to  In 2008, the United States produced an provide a high and low cost case study. estimated 250 million gallons of biodiesel (15.5k bbl/d). Given that the capital costs for Abegoa are  In 2008, Europe produced 1.5 billion gallons US$3.7 billion, in the current financial of biodiesel (93k bbl/d) environment, financing of this magnitude would

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Oil Price in Dollars

160

140

120

100 s 80 Dollar 60 40

0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09

Although the world markets recovered to some Further, oil and natural gas price declines have extent by late summer 2009, the world-wide led energy companies to scale back investment economic distress that began in 2007 in new projects. Even the strongest oil emphasises the significant risk involved in companies, like Exxon and Shell, have scaled developing alternative fuel projects, including back development of some oil projects to biofuels, due to the possibility that falling oil ensure that they can adequately meet economic demand can cause oil prices to plummet. The consequences of the worldwide slowdown. result of this most recent economic contraction caused credit to tighten and banks to The lack of investment by the oil companies is deleverage. The consequence of the tighter likely to lead to future oil supply constraints, credit markets and deleveraging of banks meant which will push oil prices higher, in time that the financial health of corporations had significant debt, government subsidy, loan become, at least for a period of time, gauged by guarantees, supportive regulation, climate- “free cash flow” and “low debt” metrics. change legislation and/or higher prices than US$30 per barrel. The volatility in oil prices from July 2008 to August 2009 (US$147 to US$30 to US$70) has The chart below shows the extreme price made it more costly for energy companies to volatility of oil. Two recently released reports access the credit markets. addressing the role of futures trading and speculation in the price of oil come to conflicting

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conclusions. The Masters’ Report, authored by contract holder is obliged to provide or receive hedge fund manager Michael Masters, released 1,000 barrels of oil. in August 2008 used data available from the Commodities and Futures Trading Commission Those who hold contracts through expiration are (CFTC). trading the “real commodity” and not just a “paper contract.” Such data is necessary for The report indicated that institutional investors understanding of the actual fundamentals of oil poured US$60 billion into oil futures from trading on the futures exchanges and the January to May of 2008, thereby causing a “velocity” of the paper contracts. steep increase in the oil price. Masters went on to saying that “we have clear evidence that fund The CFTC Report also recommends that a new flow pushed prices up and the fund flow pushed data collection division be established to help prices down.” collect more specific data.

At the same time, the CFTC issued their own Geopolitical Events report on 11 September 2008 and stated, “While It is fairly obvious that oil prices are influenced oil prices rose during the period of 31 December by geopolitical events. 2007 to 30 June 2008, the activity of commodity index traders during this period reflected a net  On 6 June 2008, when bullish sentiment for decline of swap contracts as measured in oil was high on Wall Street, the standardized futures equivalents.” Transportation Minister in Israel stated that conflict with Iran was inevitable - oil prices In essence, the CFTC indicated that actual level increased by ten dollars. of investment in futures trading declined during  On 25 June 2008, militants in the Niger Delta this period. The CFTC also stated that they called off their unilateral ceasefire and lacked sufficient data to understand the role of resumed hostilities - oil prices increased by the oil futures market on oil pricing. Therefore, five dollars. it can be concluded that because the Master’s report uses data from the CFTC, it does not  On 8 August 2008 when Russia and Georgia have the evidence to support the claim that fund entered in the military and political conflict flows pushed prices up and down. where the Baku-Tbilisi-Ceyhan pipeline carries one million barrels of oil per day - oil At present, the CFTC lacks the specific data for prices declined nearly by five dollars. any meaningful conclusions on the role of futures trading in the oil price movements. For example, the CFTC collects data on the number of open futures contracts, but does not collect the data on the number of contracts that are held through expiration. Upon expiration, the

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 On 13-16 September 2008 Nigerian militants In general oil producers, IOCs and NOCs, sell attacked oil facilities throughout the Niger oil directly to refiners and distributors. The price River Delta causing nearly 115,000 barrels a at which these contracts are executed depends day of crude to be “shut-in” - oil prices fell upon the spot price of oil, the oil futures market from US$101 to US$91. It is likely that and specific business relationships. Oil market sentiment becomes a factor in producers also engage in selling supply on the geopolitical events which lead to volatility in futures market to lock in prices and to hedge oil prices. Given these challenges, it is against price volatility. difficult to quantify the impact of geopolitical events on the price of oil. Yet, it is obvious Generally, contracts are established to provide that a disruption of Saudi production will have maximum revenue for producers in their a greater impact on world prices than the relationship with distributors and refiners. It has disruption in Nigeria. been suggested by energy industry that oil producers become price-takers in a price

increasing environment and price-setters in a Oil Producers price decreasing environment. Although the oil production figure helps establish the price, concerns over OPEC and Supply and demand fundamentals non-OPEC supply capacity also influences the Debates rage over peak-oil theories. This study market. During the oil supply shocks of the leaves this argument aside. However, it is 1970s excess capacity in Saudi Arabia was over unclear how accurate supply projections can be

18%, in 2007, it was considered less than 3%. made since there is a lack of transparency in oil reserves data and data provided by oil Given the economic crisis at the end of the producing countries. Without independently 2008-2009 and falling demand, spare capacity audited data of oil producing countries, an numbers are hard to determine, but they are understanding of supply and demand probably greater than 3%. Figures related to oil fundamentals and their impact on oil prices is supply are hard to find. The lack of transparency almost impossible. in oil supply figures is due to the unwillingness of oil producers to share oil supply data and this makes it difficult to define the real relationship between oil supply and volatility of oil price.

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Oil Price as a Risk to Investors Biofuels Investment and Climate Change At present, all publicly announced plans to Regulations develop commercial scale alternative Calls for global carbon regulations are growing. transportation fuel facilities in the United States The Conference of the Parties 15 (COP15) held require private financing. According to bankers in Copenhagen in December 2009 was interviewed for this study, “off-take” risk needs to expected to reach a global far-reaching be clearly understood. To interpret, investors agreement to replace the Kyoto Protocol. This need to understand who will buy the fuel and for did not happen, although certain progress has how much. been achieved on a number of points.

If the facility is being built on the speculation that Further, the debate on climate change is likely to transportation fuel demand will absorb the produce regulations world-wide that will alternative fuel being created, then investors will encourage and/or subsidize biofuel investments. study the oil, gasoline and distillate markets to To help overcome the risk of oil price volatility understand the supply and demand undermining investment in biofuels, regulators fundamentals. will need to enact particular policies to encourage investment into biofuels. All respondents stated that fear of an oil supply glut will cause a low oil price, which in turn will Production mandates can provide a floor of undermine the alternative fuel profitability, is the production for biofuels thereby removing the single greatest risk in these projects. If the “off-take” risk – this has been done in many project has no long-term contractual buyer of the countries. Loan guarantees and subsidy are fuel, then investors demand higher returns for other tools available to regulators. putting their capital at risk. At present, no proposed project – other than bioethanol In general, as an alternative to oil, biofuels is not projects because of MBTE regulation, subsidy a safe investment today. As a potential help to and the renewable fuels mandate of EISA 2007 climate change regulation, biofuels looks like a – has a long-term contracted buyer or secure good investment. demand.

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International Standards for Liquid In this respect, ISO/TC 28/SC7 has focused on Biofuels a role of information collection and monitoring Among the factors currently limiting the he work of other standards bodies. As this is not development of regional and global biofuels the usual objective of an ISO committee markets, the lack of comprehensive and developing International Standards, this role generally adopted international standards is may be reviewed in the future. most important. To address the need for common sustainability The International Standards Organisation (ISO) criteria, the ISO members from Germany and is currently working on developing certain Brazil (DIN and ABNT respectively) circulated a biofuels standards, and the outcomes of this proposal for a new Project Committee to effort are eagerly awaited. The subsequent develop a single ISO standard. The voting International Standards will help the broad results among the ISO members were development of biofuels worldwide. successful and a committee was established in this area. The Committee’s work is at an early The proposal for ISO standards on liquid stage, and so far the following has been agreed: biofuels has been reviewed by ISO members and their stakeholders, and follows on Scope the work done under the International Biofuels Standardisation in the field of sustainability Forum (IBF), a tripartite group involving Europe, criteria for production, supply chain and USA and Brazil. application of bioenergy. This includes terminology and aspects related to the In 2007, the IBF circulated a white paper: sustainability (e.g. environmental, social and Internationally Compatible Biofuel Standards economic) of bioenergy. which, as the title suggests, focused on the  Inventory of initiatives; need for the existing standards to be compatible with each other. The IBF does not, in the  Terminology; paper, indicate whether single, harmonized  Greenhouse gases; International Standards are possible or needed by the market.  Environmental aspects;  Social aspects; ISO has established a committee on liquid biofuels under ISO/TC 28/SC 7 and the group  Economic aspects; met for the first time in January 2009 in Brazil.  Verification and auditing; The discussions at the meeting served to confirm a number of conclusions of the  Indirect effects. IBF white paper.

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Classification The so-called “Fischer-Tropsch” technology, In a simplified manner, biofuels can be sub- which is an integral part of the BTL process, is divided into two large categories: biodiesel and an advanced biofuel conversion technology that bioethanol. This division puts forward the key comprises gasification of biomass feedstocks, properties of the two products. On one hand cleaning and conditioning of the produced biodiesel (which replaces diesel in cars) is synthesis gas, and subsequent synthesis to produced from oil rich plants (e.g. rapeseed, liquid (or gaseous) biofuels. Originally, this sunflower, algae, etc.) by mixing the vegetable process was used for the production of liquid oil (90%) with methanol (10%) in the process fuels from coal (CTL) and natural gas (GTL). called trans-estherification; on the other hand The CTL, GTL and BTL production pathways bioethanol (which replaces petrol in cars) is also are usually referred to as “XTL” fuels. known as an alcohol and is produced through the fermentation of sugars from cereals (wheat, Biodiesel from animal fats and used cooking oils maize, etc.) or sugary feedstocks (sugarcane, UCOs: Many European producers also use sugar beet). (See ANNEX 6 for more detail) recovered vegetable oil and animal fats from food processing as it is a readily available waste New production techniques or pathways have product and produces a biodiesel with extremely been recently developed. These are sometimes beneficial greenhouse gas savings. Several of referred to as “second” generation biodiesel: the biggest biodiesel producers in Europe are Hydro-treated vegetable oils (HVOs): New agricultural producers who add value to their technologies provide for the hydrogenation of oilseed products and processing capacities by vegetable oils (HVOs) and animal fats into a converting oil to biodiesel, similarly many are paraffinic biodiesel, which presents near involved in the oleo chemical industry as identical chemical properties with conventional biodiesel production produces glycerine suitable diesel. Although hydro-treated vegetable oils in for the cosmetics and pharmaceutical industries. Europe are produced in free-standing facilities, Biodiesel production also results in increased this process can build on existing oil refinery availability of oilseed cake used for protein in infrastructures. To avoid any confusion with animal feeds. processes used in the food industry sector, the term « hydro-treatment » is preferred to « Certification hydrogenation». Certification is the practical implementation of the standard or of the principles and criteria that Biomass to liquid (BTL) is a multi step process are aimed for. This step requires a tracking to produce liquid biofuels from biomass. method and a labelling process and it is known Contrary to currently used biodiesel pathways as the certification of the product under (FAME and hydro-treated vegetable oils and assessment. Certification is the practice that fats), the Biomass-to liquid process aims at implies third party assessment of the using whole plants (biomass), including management procedures with respect to a agricultural and forest residues. certain standard.

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A good or service that is required to comply with new additions to traditional petroleum refineries a certain standard has to pass through the that are expensive. certification procedure. Here, the product will be translated from the pool of unidentified goods/ Establishing biofuel technical standards services into the smaller category of labelled would, over the long run, help reduce capital goods. The product will be recognizable and its expenditures for large and small refiners, compliance with the standard in question will be benefit new participants in the refining business, and help capital markets develop indubitable. more specific products for syndicating debt for biofuel refining. Certification is the final step in the chain. However in order to fully develop the certification phase, one should discuss the The application of certification schemes requires previous segment, which is the traceability or careful consideration of all factors involved. the chain of custody. Early in the conception and the development stage, it is crucial to develop or to follow sound Certification initiatives sustainability principles and criteria. Certification Certification confirms practical implementation of work is often criticized for lacking substance and the standard or the principles and criteria that structure and the following main issues have should be achieved. This requires a tracking been identified: method and a labeling process, and it implies a  scope inconsistencies third party assessment of the procedures with  implementation inconsistencies respect to a certain standard.  market failures  costs barriers So far, certification exercises have been  trade limitations. completed and implemented with success in the

following fields: agricultural (crops, vegetables, fruits, etc.), forestry or electricity. In the biomass Standardization of sustainably grown sector, several initiatives have been created for biomass for biofuels the certification of bio-energy or biofuels. Since the production of biofuels in general is so strongly related to agricultural activities, the Technical Standardization European production in particular follows the EU Although major refiners like ConocoPhillips, Common Agricultural Policy that governs all British Petroleum/BP and others blend currently environmental standards of agricultural biofuels into transportation fuels like gasoline and production. diesel, this is not supported by sufficient technical standardization which would allow and facilitate Therefore the sustainability of European robust growth of biofuels on a global scale. biodiesel and bioethanol is guaranteed by the Large, well-established refiners have the Cross-compliance rules followed by the wherewithal to blend different source types into current transport fuels, but it typically requires

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European Farmers and by all social and all biomass production horizontally, regardless economical standards of developed economies. of the final use. If this key point is disregarded, then the whole purpose of sustainability As a result the European Production of biofuels standards is lost. If only a small part of the does not contribute to deforestation or land production of biomass is being done in line with degradation due to existing management the sustainable practices and the rest is done practices and stringent national environmental through deforestation, biodiversity losses and in legislation in the European Member States. poor social conditions, then sustainability is Additionally, agricultural potential in new nothing more than a market failure. member states is finally becoming productive under the Common Agricultural Policy and In this context, one optimal approach is to European or private investment. harmonize the minimum binding requirements in the field of biomass for energy and to A need for standardization of horizontally apply these requirements to all the sustainable production of biomass biomass production regardless of the end use. Although biomass production in Europe rightfully This approach should base itself therefore on claims the highest sustainability practices in the the requirements already in place at EU level social, environmental and economical areas, a and in USA, Brazil, Malaysia, Indonesia, level playing field must be created at a planetary Argentina, etc. scale. The market will therefore incline the balance Secondly, it is senseless to standardize towards a meta-standard that follows the practices only in one sector of agriculture, where legislation pathway or towards a more stringent in fact the major sustainability concerns are voluntary standard. In the field of biofuels in omnipresent. Thirdly, major risks are present or Europe, players face an obligation to market the foreseeable in the future from a sustainability product and the legislation has already set very perspective. These risks can be found in high sustainability principles. As a result, there is different locations and present local/regional no clear reason why players should set the specificities. sustainability threshold even higher. They already face the highest possible challenges Finally, it is important to consider the different compared to any other field of activity and they legislations, the different regulatory frameworks embrace these challenges courageously. but also the numerous voluntary initiatives that govern the biomass applications, especially for Finally, the market players will determine the the biofuels end use. relevance of different standards. They will decide upon their individual needs Against this background, clear universal rules (imports/exports into/from different countries, have to be defined for sustainable practices. At marketing purposes, costs etc.). the same time the rules have to be applied for

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It is crucial to remember that costs are the main The main critiques or limitations brought forward drivers for all economic activities which will so far are as follows: include now more and more corporate and social responsibility (CSR), and sustainability - scope inconsistencies: sustainability aspects. In a cost and CSR-driven economy, the principles, criteria and indicators are inadequate; role for voluntary higher standards will remain not all stakeholders involved in the sustainability clearly mitigated. Defining the sustainability process; criteria for biomass for energy applications is a complex process which has crucial market - implementation inconsistencies: implications. In the end, if not designed monitoring and verification systems are correctly, sustainability and certification inadequate or even impractical for on-site schemes will undoubtedly trigger significant auditing; market disruptions. - market failures: the proliferation of labels and The state of the art of sustainability research for certificates undermines the substance of biomass for energy shows a complex framework sustainability initiatives; consumers cannot in which voluntary and mandatory schemes co- make informed choices; exist. This framework must only be considered as a snapshot. New initiatives and certification - costs barriers: overburdening small schemes are announced regularly while the producers leads to a market exit; the process of developing knowledge in this field will implementation of any scheme adds a cost to endure. the overall production; when an individual operator is bound to comply with multiple However, while analysing the features of schemes, he will be unable to cover costs; existing sustainability initiatives and the prospects for the future ones, it is important to - trade limitations: a sustainability and or consider all limitations in implementation, the certification system should not limit trade; drawbacks and the risks involved. however it should follow the legislation in force.

Risks and limitations in development Infant Industry Support and implementation of certification It is usual for countries to consider policies to schemes support infant critical industries. Biofuels is both The application of certification schemes requires an infant industry as well as a critical industry in careful consideration of all factors. Early in the many countries. With the oil price volatility of the conception and development stage, it is crucial past few years, many countries have made to follow sound sustainability principles and energy security arguments while others claim that criteria. Parallel certification work is often environmental demands require the development criticised by stakeholders for lacking substance. of biofuels and many countries claim both. Regardless of the justification, supportive policies

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for infant industries are used to meet domestic It is at this point, where supply constraints will political realities. encourage policy makers to open up the market to foreign suppliers. This would then allow those These policies, in many ways, are helping countries who have an absolute-advantage1 to develop the regional markets for the biofuels become global suppliers. industry, but if maintained for too long, they can undermine the development of a global market for The best example to help explain how the biofuels as a fungible commodity with petroleum. biofuels market can develop past the infant This would lead to less protection, not more. industry policies is the history of the oil market. As oil was discovered in the Middle East and Brazilian sugar-based bioethanol and American Southeast Asia, countries like the United corn-based bioethanol provide an excellent case Kingdom and the Netherlands established study for how these policies work. In the United preferential import agreements with companies States, tariffs have been placed on imported such as the Anglo-Persian Oil Company (British bioethanol. Petroleum/BP) and Shell, respectively, in an effort This was designed to help the American corn to protect national interests. industry develop bioethanol to meet domestic These policies helped develop the infant oil demand. Many arguments were made in the market in the U.K., the Netherlands, and the United States for why these tariffs should be whole of Europe. Eventually, the global market established, and the two loudest were “energy grew because other countries engaged in similar security” and the “buy American” mantra. practices until the markets became more developed and sophisticated. Once the markets In Brazil, where sugar-based bioethanol can be matured the preferential policies of the U.K., the produced and shipped for less than American Netherlands and others gave way to a more corn-based bioethanol, this looks like a punitive robust global market. tariff directed at Brazil to keep them from entering Most important is that industry leaders and policy the U.S. market. In many ways this is accurate, but it is not the whole story. The United States is makers understand that supportive infant industry attempting to protect an infant industry in order to policies help develop a marketplace on a regional basis. Without these policies it is unlikely that have domestic capacity for production of fuels which helps strengthen economic and energy these regional markets would develop and these security. are a prerequisite for a global market. Countries like Brazil have an absolute advantage More importantly, the tariffs allow for the infant industry to gain strength during the time that it as they can produce biofuels from sugar cheaper helps develop demand. Ideally, the development than biofuels can be developed in other countries, and that is good for the world. Brazil’s climate of the corn-based bioethanol market will reach a point where demand grows past domestic supply and tropical conditions allow it to be to biofuels capacity. what Saudi Arabia is to oil. . .

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At the earliest opportunity, those countries that provide energy, economic and environmental have in place infant industry supportive policies to security over the long-term. This means that help their young biofuel industries should begin to infant industry policies should make room for allow room for imports from countries that can imports from countries that can provide provide low priced quality biofuels. Such an technically adequate supply for lower costs than approach would help regional markets mature domestically produced biofuels. into global markets and allow for biofuel This, of course, would also help importing consuming nations to benefit from lower prices countries lessen dependence upon petroleum by and greater diversification. diversifying the source of type of the fuel. Finally, allowing for imports of biofuels in consuming Encouraging Comparative Advantages countries would help establish a global marketplace and reduce costs. This does not Countries that have an absolute advantage in have to come at the expense of domestic biofuels production should encourage the production as it may be determined beneficial to development of regional markets and infant maintain domestic support and open markets. industries in other countries. Although counter- intuitive, large supplier countries, stand to gain The EU Biofuels Policy And Regulatory the most as the world grows from regional Landscape markets to a global market place for biofuels. In a strive to alleviate climate change related environmental degradation as well as the Further, these countries should recognize that increasing scarcity of conventional energy they can be instrumental in the development of sources, the European Commission set in 2003 biofuels world-wide by providing technology and the basis for the promotion of the use of intellectual capital to other countries that would renewable energy in transport. This legislative like to transform unused arable land into fuel act was entitled the “Biofuels Directive”2 as it producing crops. mainly laid down indicative targets3 for biofuels As supplier countries build these markets they use in transport in the European Union from can position themselves through cooperative 2005 up to 2010. (See ANNEX 7 for more detail) agreements to provide product at lower costs through an already established “down-stream” Concomitantly the European Commission laid distribution system. This downstream distribution down a comprehensive fiscal framework taking system is developed on a regional basis and that into account the emergence of these new provides another incentive for supplier countries commodities. Since mineral fuels undergo a to help other countries develop regional biofuel special fiscal treatment, incurring excise taxes, capacities. the European Commission conceived a particular legal fiscal scheme for the promotion Allowing Room for Absolute Advantage of biofuels. As decision makers establish different policies to encourage and incentivize the development of biofuels, they should consider how they can best

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Accordingly, Member States had been given the all renewable energies an a target of at least possibility to create a detaxation system for 10% for biofuels (meaning that the renewables biofuels. The Council supported this framework mix used to attain the overall 20% target shall and unanimously approved the Energy Taxation contain at least 10% of renewable energy in Directive. transport in all Member States).

In 1998, the European Commission defined The first directive on biofuels 2003/30/EC specifications for fuels (petrol, diesel, gas-oil) for The European Commission intensified its transport ensuring a high level of human climate change mitigation work in the recent protection and environment preservation5. years, while at the same time considering the need for improved security of supply and In 2007, the European Commission has sustained rural development. Standing in the initiated the revision of these standards by cross-road of these three challenges, biofuels including also biofuels for better climate change have been acknowledged for their advantages mitigation. As a result of the new changes, fuel and accordingly the European Commission build suppliers will be bound to reduce their a framework for their promotion. The first move greenhouse gas emissions, including by towards an EU biofuels policy was represented blending biofuels in the conventional fuels. by the European Commission Green Paper “Towards a European strategy for the security of In 2008, the European Commission released the energy supply” published in November 2000. major legislative act that is defining the evolution of the European biofuels sector in the next ten In May 2003 Directive 2003/30/EC on the years. The main provisions of the Renewable promotion of the use of biofuels or other Energy Directive are the following: renewable renewable fuels for transport was adopted. Its energy for all sectors and especially for the provisions require Member States to introduce transport sector will have to follow binding legislation and take the necessary measures to targets for 2020; sustainability criteria are ensure that, as from 2005, biofuels account for a imposed for the first time upon a series of minimum proportion of the fuel sold on their products, namely for biofuels; a certification territory. scheme for sustainable biofuels will be put in place; a promotion scheme for advanced More specifically, the Directive sets EU reference biofuels pathways has been developed. targets on the basis of which Member States shall set their national indicative targets. In practice, Binding targets for renewable energy in Member States must ensure that the minimum transport (10% in all Member States) and for share of biofuels sold on their markets is 2% by renewable energy in final energy consumption 31 December 2005 at the latest, and 5.75% by (20% in all Member States). The Commission December 2010. Although the targets were proposal confirmed the conclusion of the March “indicative”, it was anticipated that these 2007 Energy Council defining a 20% target for objectives would have a strong political value and would influence the choice of EU countries.

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Moreover Member State setting lower objectives The reason pointed out by who proposed this law would have had to justify this to the European was that since 1986 there was in force in Brazil Commission on the basis of objective criteria. emissions legislation and all vehicles produced to comply with this legislation were designed to run Also the “Biofuels” Directive provided that with a mixture of bioethanol/gasoline (22% Member States should submit before 1 July each bioethanol) and if the amount of bioethanol in year a report to the Commission, detailing the gasoline changed these vehicles will not meet the measures taken to promote the use of biofuels emissions limits. and other renewable fuels, the national resources allotted to the production of biomass for energy The law issued in 1993 was modified and today purposes other than transport and the total bioethanol content in gasoline is a fixed amount quantities of fuels for transport sold in the course but it can go from 20% to 25% in volume. of the year. The purpose of the reporting Bioethanol content in gasoline, is a fixed amount requirement was for the Commission to first defined by an Agricultural Ministry decree and is present the progress achieved to the European dependent of bioethanol production/availability, Parliament and to the Council and secondly, to and must be between 20-25% in volume. evaluate the potential for legislative updates. At the beginning of the ethanol programme the Biofuels use regulations in Brazil Brazilian economy was controlled by the Biofuels specifications have always been an government which set prices and the oil industry issue of the petroleum regulatory agencies, (1) (2) (3) was a monopoly. As the economy became more CNP , DNC and now ANP . Biofuels content open, ethanol programme experienced a in fossil fuels were under CNP and DNC decision drawback and ethanol shortages emerged. up to 1993. In 1998, when the Country was being Today the Brazilian economy has been liberated prepared to open the petroleum market, was and the government is no longer involved in created the ANP (Agencia Nacional de Petroleo, price setting and it uses taxation to promote the Gás Natural e Biocombustíveis). This regulatory use of biofuels. agency has more duties then the previous one including regulations on oil and gas production. Biodiesel Program began in mid of 2003 when a In 1980 was agreed between Petrobras and task force was created by the Government to automotive industry, under CNP authority, to study biodiesel production viability. In 2004 ANP increase Brazilian gasoline octane number by issued regulations regarding biodiesel adding up to 20% volume of bioethanol to specification and regulations to organize gasoline and starting a lead phase down in the productive sector. At the end of 2004 Brazilian country. Petrobras gasoline became lead free in Government began officially the biodiesel 1989 without any legislation issued for this. In program. 1993 was issued a law that mandated that all gasoline sold in Brazil must contain 22% volume The original schedule established that: in 2005 a of bioethanol. 2% biodiesel addition would be optional, in 2008 a 2% biodiesel addition would be mandatory and

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in 2013 a 5% biodiesel addition would be  US$800 million for biomass in applied mandatory too. This original schedule was research, development, demonstration and changed and in July of 2008 a 3% biodiesel deployment activities addition became mandatory and in July of 2009 a 4% biodiesel addition became mandatory.  US$300 million for the Alternative Fueled Biodiesel commercialization is done by auctions Vehicles Pilot Grant Program coordinated by ANP and Petrobras and REFAP S.A. are the buyers and biodiesel producers are  US$400 million for Transportation the sellers Electrification

Biodiesel programme in Brazil has an important  US$1.52 Billion for a competitive solicitation social aspect by promoting family biodiesel for a range of industrial carbon capture and feedstock production and giving priority for energy efficiency improvement projects poorest areas of the country. Government uses taxation as a way to promote the biodiesel  US$6 billion appropriation to support programme focusing these two aspects: family US$60 billion in loan support for smart grid feedstock production in some Brazilian areas. and biofuel facilities.

CNP (Conselho Nacional de Petroleo – National 2010 Budget of the United States Petroleum Council)  2010 budget plans to double investment in DNC (Departamento Nacional de Petróleo – basic sciences in energy. National Petroleum Department) ANP (Agencia Nacional de Petróleo, Gás e  Loan guarantees and investment into Biocombustíveis – National Agency for Petroleum, Gas and Biofuels) Renewable Energy Projects, Transmission Projects, and Carbon Sequestration Government Regulations & Investment Projects that avoid, reduce, or sequester air in Technology pollutants and greenhouse gases while simultaneously creating green jobs and In general government regulation and contributing to long-term economic growth investment into biofuels helps develop a biofuels and international competitiveness. market. The information below is provided on new investment and regulatory action in the  Invests in Clean Energy Technologies to United States with regard to biofuels. reduce dependence on foreign oil and American Investment in Biofuels accelerate the transition to a low-carbon economy.  2009 American Recovery & Reinvestment Act American Subsidies and Tariffs Subsidies  Dept of Energy receives US$16 billion in a supplemental appropriation

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 Blenders’ Credit – US$.45 per gallon – country, both from maize and in the future from Expires 31 December 2010. the extensive lignocellulosic resources such as agricultural straws and wood. The US Congress  Biodiesel Income Tax Credit - US$1.00 per approved a very ambitious Renewable Portfolio gallon – Expires 31 December 09. Standards (RPS).

 Small Ethanol Producer Credit - US$1.5 The potential of biofuels for transportation is million ann. – Expires 31 Dec 2010. however quite finite; current global food production corresponds to a primary energy  E85 Infrastructure Credit – Max US$30k content of about 30 EJ/yr, while crude oil alone annually – Expires 1 January 2010. is around 160 EJ/yr. Thus the projected large growth of ethanol from maize in the USA could  Infrastructure Dev. Grants - US$200 million use up to 40% of today’s crop (up from around ann. - 2010 budget? 16%). The USA is the swing producer of maize, contributing about 40% to internationally-traded  Depreciation Allowance for Cellulosic corn Biomass Ethanol Plant – 50% in first year. Accelerated depreciation becomes tax In terms of the environmental impact, the incentive - Expires 31 December 2012. production of ethanol from corn is only marginally energy-positive at about 1.4:1, but Tariffs sugarcane in Brazil has a ratio of about 8 units of renewable liquid fuel to one of fossil energy  Ad Valorem Import Tariff - approximately input. Brazil has phased out most agricultural US$.036 per gallon. subsidies to its sugar industry, but the agricultural sectors of the USA and the EU still  Secondary Tariff - US$.54 per gallon used receive large subsidies for agricultural products, to offset Blenders’ Credit for non-U.S. and including ethanol and other biofuels. non-Caribbean countries. (note: Ethanol imports from countries that are part of the The US spends about US$5billion per year at North Atlantic Free Trade Agreement, present. Agricultural subsidies have been Caribbean Basin Initiative, and Andean challenged during the Doha round of World Trade Preference Act may not be subject to Trade Organization negotiations as being bad the secondary duty provided the ethanol is for the environment (by encouraging intensive fully produced with feedstocks from those agriculture) and for their negative effects on the nations). development of agriculture in third-world countries. In 2006 as crude oil prices were rising, the Many of these countries would be capable of President of the United States of America in his becoming major players (using Brazilian biofuels “State-of-The Union” address pledged increased as an example) if there were neither subsidies support for ethanol production across the

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nor tariff barriers such as the US$ 143/m3 (54 economies and, like ethanol, production has c/US gal) imposed by the USA on Brazil. leapt in the last few years Biodiesel The estimated output for 2006 at 7.5 mt is The second-generation biodiesel is often called equivalent to 6.8 mtoe or 0.3 EJ energy ‘renewable diesel’ and is produced by treating equivalent. While the energy balance for vegetable oil with hydrogen over catalysts in oil rapeseed biodiesel is around 4 units of energy refineries, to either blend or be co-processed for each unit of fossil input, it can be as high as with ‘fossil diesel’. The resultant product can be 8:1 for high-yielding palm oil biodiesel. used in the range of B5 – B50. As a fuel, the FAME biodiesel has about 90–95% of the The processing of both rapeseed and soy volumetric energy content of regular diesel, and produces considerable quantities of co-product in combustion reduces some of the particulate meal which is used as an animal feed. The and carbon monoxide emissions. growing fuel market is introducing distortions into the animal-feed supply system, which is The effect on NOx is not so clear cut, with many also having to accommodate increasing studies showing a slight increase. amounts of dried distillers’ grains and solubles (DDGS) from the corn-ethanol production In addition to vegetable oils, animal fats such as system. The two largest producers of palm oil tallow and waste grease can also be converted are Malaysia and Indonesia and in 2006, the two to FAME; they are the lowest-cost resources countries agreed to limit the development of available, mainly in urban areas. further facilities to 6 mt of palm oil capacity to be The commercial resource base for vegetable able to evaluate the expansion. oils comprises about 20 different species with soybean oil, palm/palm kernel oil, sunflower, rapeseed (Colza), and coconut oils being the largest sources.

Despite the current minority position of biodiesel relative to ethanol, the adoption of mandates in several countries will fuel a large growth in the near future. Brazil, for example, has a nationwide mandate for B2 in 2008 resulting in an estimated 1.1 hm3 demand for biodiesel (935 kt).

The EU mandates for 5.75% biofuels in the transportation sector by 2010 are driving the rapid growth of biodiesel in the major EU

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Sustainability of Bioenergy However, there are individual indicators which enable verification and auditing. The primary goal of developing the biofuels sector is sustainability. The sustainability driver Sustainability is regarded as a threefold is based on the three pillars of economic, social paradigm, entailing social, economical and and environmental sustainability. environmental dimensions. Defining the sustainability criteria for biomass for energy Subsidies for production of biofuels feedstock applications is a complex process which has can distort markets. They may contribute to crucial market implications. inefficient allocation of resources, and thus also In the end, if not designed correctly, sustainability have a negative impact on food markets. and certification schemes will undoubtedly trigger significant market disruptions. This is finally what Defining the sustainability criteria for biofuels all stakeholders are committed to avoid in any is a complex task which may have crucial environmental-related field that is ruled by the implications for market development. Broad “precautionary principle”. stakeholder involvement and comprehensive consultation are necessary for a balanced A sustainability standard should account for all and feasible outcome of the process. three fields, while adding specifications on the greenhouse gas emissions savings, lifecycle assessment, chain-of-custody, verification and This is not an attempt to create a sustainability auditing. standard per se. On the contrary, it is an attempt to create a framework presenting the main Energy sustainability principles and criteria, based on existing Energy sustainability means the provision of standards. energy in such a way that it meets the needs of the present without compromising the ability of Finally, it is necessary to look into the future generations to meet their needs. greenhouse gas emissions savings and Sustainable energy sources are most often accounting principle. This principle is drafted in considered to be renewable energy sources, accordance with key policy indications facilitating including biofuels, and also energy efficiency and the inclusion of legislative provisions in future conservation. sustainability meta-standards. Social sustainability Sustainability principles and criteria Social sustainability reflects how the production The sustainability principles are the overarching and use of biofuels, including transport goals which form the actual sustainability applications, impacts local development. In framework. One level below in the sustainability particular, social sustainability aims to ensure that structure, there is criteria for each principle. The the human rights, land rights and land use rights criteria specifies the concrete aspects of each are respected. It also addresses issues like principle. (See ANNEX 8 for more detail)

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labour standards, safety standards and especially production (as far as GHGs and energy agriculture and local development, balances are concerned) and the ranking of best performing pathways. (See ANNEX 9 for more

detail) Economic sustainability The economic sustainability is a prerequisite for However in the same biofuels production sustainable production of biofuels for energy pathway, LCA studies produce very different applications including transportation. Economics results. That is why it is essential to carefully is about the efficient use of resources, usually design a reference study, especially when it expressed in monetary terms. constitutes scientific underpinning of legislative measures which have far-reaching implications The concept of economic sustainability is subject, for the industry. on all levels, to different inputs and outputs. The economic sustainability of a nation is subject to the whole economy on local, national and Considering all LCA studies conducted so international level. far, a transparent and objective study to evaluate the performance of biofuels Environmental sustainability worldwide becomes essential to accurately Environmental sustainability addresses issues reflect the genuine performances of biofuels. related, but not restricted to biodiversity, land preservation, water and soil preservation. One example of biofuels LCA study was Greenhouse gas emissions reductions performed by the Commission Joint Research The GHG aspects have been triggering Centre, in collaboration with EUCAR and important debates and controversies. We limit CONCAWE1 (referred herein as the JEC study), ourselves to underlining the main discussion which was integrated in the recently adopted EU points that are consistently at the core of the Renewable Energy Directive. sustainability standardization process. The JEC study has therefore been elaborated The Life Cycle Assessment (LCA) of the by experts from the mineral oil and automotive production of biofuels for energy applications or industries, without input from the agricultural and other end uses represents the tool most widely bioenergy sectors. As a result, the scientific used for the GHG balance accounting. foundation of the new Renewable Energy Directive is still questioned by stakeholders for a Principles for an objective LCA of lack of balanced contributions from all parties biofuels and in all areas of expertise. A considerable number of LCA studies have been conducted for the assessment of biofuels In light of the above example, an objective production in Europe and other parts of the reference LCA study detailing the performances world. The purpose is to investigate and of biofuels is needed in a twofold perspective: evaluate the environmental impacts of biofuels The Renewable Energy Directive, an essential

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piece of European legislation, should be based energy demands and overall energy efficiencies on a study that was commonly accepted by all for processes and/or final products. Life Cycle stakeholders as being objective, balanced, Assessment studies so far presented the results transparent and reflecting reality. in a comparative way: biodiesel/bioethanol pathways versus the regular diesel which finally The JEC study needs therefore to be turned into enables all readers to correctly estimate the an EU scientific reference for biofuels LCA, biofuels potential to greening the transport including the expertise from farmers and sector worldwide. bioenergy producers. Understanding the overall energy requirements Given the growing importance international of biodiesel is key to describe biodiesel made trade flows of biofuels and bioenergy, there from vegetable or animal, new or used oil, as a is an increasing need to create an “renewable energy” source. In general, the more internationally acceptable unified system fossil energy required producing a fuel, less we measuring the sustainability and the GHG can say that this fuel is “renewable”. Thus, the performance of biofuels. renewable nature of a fuel can vary across the spectrum from “completely renewable” (i.e., no Against the background of a lack of consistent fossil energy input) to non-renewable (i.e., fossil data and methodologies used world-wide and energy inputs as much or more than the energy the availability of a multitude of balanced, yet output of the fuel). not fully updated Biofuels Life Cycle Assessments, it appears particularly crucial to This section focuses on the review of the life start working towards an up-to-date objective cycle assessment and the energy efficiency assessment of biodiesel. The approach and transparent Biofuels Life Cycle Analysis Study established at international level. embraced is to compare for every indicator (e.g. fossil fuel ratio) biodiesel with the petroleum A common and transparent approach, including diesel specified by the European Standard EN all interested stakeholders at international level, 590. is necessary in order to draw any meaningful conclusion from the comparison of different The most relevant indicators reviewed for biodiesel and diesel EN 590 are: life cycle biofuels chains with corresponding fossil fuels. Objective figures and methodologies must be energy demand and inventory, fossil fuel elaborated to enable international measurement inventory, fossil fuel ratio, energy efficiency of the production and the distribution of both fuels. of biofuels sustainability. Next, a sensitivity analysis has been conducted Biodiesel Life Cycle Assessment (LCA) Studies in order to understand the changes in indicators’ provide an opportunity to quantify the total values in different alternative scenarios. Lastly, greenhouse gas emissions and savings for the technical aspects of end-use technologies different biodiesel pathways. Also they quantify are explained.

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For this section the CIEMAT study performed for Fossil Energy Ratio = Fuel Energy/Fossil Energy Inputs the Spanish Environment Ministry was reviewed. Its LCA model shows that 1.2007 MJ of primary energy is used to make 1 MJ of petroleum diesel If the fossil energy ratio is equal to 1, then the fuel. This corresponds to a life cycle energy fuel is non-renewable. A fossil energy ratio of efficiency of 83.28%. Ninety-three percent of the “one” means that no loss of energy occurs in the primary energy demand is for extracting crude process of converting the fossil energy to a oil from the ground. About 88% of the energy useable fuel. For fossil energy ratios greater shown for crude oil extraction is associated with than 1, the bigger the ratio, the more the energy value of the crude oil itself. The “renewable” becomes the fuel. As a fuel crude oil refinery step for making diesel fuel approaches being “completely” renewable, its dominates the remaining 7% of the primary fossil energy ratio approaches “infinity.” In other energy use. words, a completely renewable fuel has no fossil energy inputs. Removing the feedstock energy of the crude itself from the total primary energy allows us to From a policy perspective, these considerations analyze the relative contributions of the process are valuable. Policymakers want to understand energy used in each life cycle. Process energy the extent to which a fuel increases the demand represents 20% of the energy. Using “renewability” of our energy supply. Another the total primary energy reported in the CIEMAT implication of the fossil energy ratio is the Study, question of climate change. Higher fossil energy ratios (that means that the fuels are more from renewable sources) imply lower net CO2 Life Cycle Energy Efficiency = 1 MJ of Fuel Product Energy/1.2007 MJ of emissions. This is a secondary aspect of the Primary Energy Input = 0.8328 ratio, as we are explicitly estimating total CO2 emissions from each fuel’s life cycle. Life Cycle Inventory of Biodiesel and Petroleum Nevertheless, the fossil energy ratio serves also Diesel ultimately available in the petroleum as a verification tool for the calculations of the diesel fuel product. About 90% of the total CO2 life cycle emissions (since the two process energy is in refining (60%) and indicators should be correlated). extraction (29%). The next largest contribution to total process energy is for transporting foreign Petroleum Diesel Life Cycle Energy crude oil to domestic petroleum refiners. Demand In order to point out the biodiesel versus Biodiesel Life Cycle Energy Demand petroleum diesel energy efficiency and fossil fuel Compared on the basis of primary energy ratio, several LCA studies done by research inputs, biodiesel and petroleum diesel are institutes, consultancies, regional or national essentially equivalent. Biodiesel has a life cycle administration across the EU have been energy efficiency of 80.55%, compared to examined. 83.28% for petroleum diesel. The slightly lower

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efficiency reflects a slightly higher demand for a process that occurs on a geologic time scale. process energy across the life of cycle for This difference in the dynamic nature of solar biodiesel. energy utilization is the key to the definitions of renewable and non-renewable energy. One MJ of biodiesel requires an input of 1.2414 MJ of primary energy, resulting in a life cycle For Diesel 590 the production stage which is energy efficiency of 80.55%. Biodiesel is most energy consuming is extraction, followed comparable to petroleum diesel in the by refining and distribution of fuel to the filling conversion of primary energy to fuel product stations. energy (80.55% versus 83.28%). The largest contribution to primary energy (87%) is the For the biodiesel production from new vegetable vegetable oil4 conversion step because this is oils, the most energy intensive stage in the where we have chosen to include the feedstock production is cultivation. The trans-etherification energy associated with the soybean oil itself. stage (where the oil and the methanol are mixed for obtaining biodiesel) actually saves energy from a system expansion perspective. Fossil Energy Ratio = 1 MJ Fuel Energy/1.1995 MJ of Fossil Energy Input = 0.8337 From all the pathways in this category, soy oil is consuming both most primary energy (44,64 MJ/kg) and most fossil energy (25,63 MJ/kg), Life Cycle Energy Inventory of Biodiesel while sunflower oil requires the smallest amount and Petroleum Diesel both for the total primary (23,58 MJ/kg) and for 4 fossil energy (14,34 MJ/kg). Also rapeseed oil is Energy contained in the soybean oil itself efficient, requiring only 26,86 MJ/kg primary represents, in effect, the one place in the energy and 15,58 MJ/kg fossil energy. biodiesel life cycle where input of solar energy is accounted for. Total radiant energy available to When biodiesel is produced from used oils, the soybean crops is essentially viewed as “free” in energy (total primary and fossil) consumption is the life cycle calculations. It becomes an incontestably reduced compared to diesel or element accountable in the life cycle only after it biodiesel from new vegetable oils. Moreover, it has been incorporated in the soybean oil itself. is considered that the collection of used oils is energy neutral despite existing stringent laws This is analogous to counting the feedstock requiring special collecting and disposal of all energy of crude petroleum as the point in its life used oils as waste. cycle where solar energy input occurs. Petroleum is essentially stored solar energy. The difference between petroleum and soybean oil as sinks for solar energy is their time scale. While soybean oil traps solar energy on a rapid (“real time”) basis, petroleum storage represents

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Fossil fuel inventory and fossil energy  ADEME, 2002: Rapeseed: 3,03 and ratio of biodiesel and petroleum diesel unflower: 3,16 Biodiesel has a positive fossil energy ratio  - IFEU, 2000: Rapeseed: 5,46 and because most of its feedstock requirements (on Sunflower: 5,837 average 90 %) are renewable (i.e. the oil is of vegetal nature). On the basis of fossil energy  - Wiewls, 2004: Rapeseed: 5,24 inputs, biodiesel enhances the effective use of  - Rollefson et al, 2002: Rapeseed:2,06 this finite energy resource. Fossil energy demand for the conversion step is almost twice  - Ecobilan 2002: Rapeseed: 2,99 and that of its process energy demand, making this Sunflower: 3,16 stage of the life cycle the largest contributor to  - USDA, 1998: Biodiesel uses 0.3110 MJ of fossil energy demand, after the cultivation step. fossil energy to produce one MJ of fuel product; this equates to a fossil energy Another assumption in the literature is to have ratio of 3.215. In other words, the biodiesel natural gas derived methanol for the conversion life cycle produces more then three times step. This reveals an opportunity for further as much energy in its final fuel product as it improvement of the fossil energy ratio by uses in fossil energy. substituting natural gas-derived methanol with renewable sources of methanol, ethanol or other Energy Efficiency of the production and alcohols. distribution of diesel EN-590 and biodiesel from crude and used vegetable The basic hypothesis for calculation of the fossil oils fuel inventory is that the biodiesel is produced The final energy (primary and/or fossil) is from different origins and the fossil fuel is greater than the total input energy used to accounted for in all stages apart from the produce the final fuel. The exceptions are the distribution one. Diesel EN-590 and the B5 (diesel EN-590 blended with 5% Biodiesel) from both crude and The results of the CIEMAT 2006 study show that used vegetable oil. there is a 4 to 1 ratio of final fuel to fossil fuel for the biodiesel from crude vegetable oils Logically, the more biodiesel is blended, the and a 44.4 to 1 ratio for the biodiesel from higher are both the energy efficiency and the used oils. The fossil energy ratio for diesel EN- fossil fuel ratio. 590 is 1 which means that for 1 MJ of final energy 1 MJ of fossil energy is required. Sensitivity analysis The purpose of conducting a sensitivity analysis Other studies carried by research institutes or is to clarify the relevance of the variables used universities show similar results for the fossil in the main analysis. The way to perform the energy ratio calculated on the same basis (MJ sensitivity analysis is to elaborate alternative final fuel/MJ fossil energy): scenarios and to test alternative hypothesis.

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Accordingly the results will confirm or infirm the The other important aspect of end-use variables and the main results. technologies is the engine-specific comparisons between the two fuel alternatives (biodiesel and As it was expected, when using the economic petroleum diesel). By analysing any database value method of allocation for the by-products, (e.g. the biodiesel database used by the USDA the energy used in the process increased Study 12), a simple conclusion can be considerably, but especially in the one-oil extrapolated: emissions will vary considerably biodiesel fuels (not the oil mixes). Accordingly according to the type of fuel used, to the engine, the energy efficiency and the fossil energy ratios etc. are worsening. Against this background, as a technical aspect End-Use Technologies of conducting end-use technologies analysis, it Some consideration is necessary on the end- is absolutely necessary to choose a particular use technologies of the fuels modelled in the type of engine and to compare the use of large majority of studies. This assessment is different types of fuels in that engine, or to using some basic assumptions of the end-uses chose a particular fuel blend and to compare its to consider, such as: performance using different engines.

 Use of biodiesel and low-sulphur diesel This study analysed in a comparative approach fuel in modern urban diesel buses the energy efficiency and the fossil fuel ratio of biodiesel and of diesel EN 590. It was  Fleet use only (a consequence of the conducted by surveying the relevant literature previous assumption) and concluded that the energy efficiency of biodiesel is almost the same as the energy  Engine-specific comparisons efficiency of the diesel EN 590.

For the relevance of any end-use technologies However the crucial difference between the two analysis, it is important to limit the end-uses of fuels is in the fossil fuel ratio, the studies cited the fuels to a single application. Bus applications showing a fossil fuel ratio very positive for examples have been chosen due to the wide biodiesel (in a range of 2.06 – 5.46 MJ of final availability of information. primary energy/MJ fossil energy). Consequently, these results show that biodiesel is once again Moreover, introducing this limitation to bus demonstrating its unquestionable renewable applications, allows the use of the best available nature and benefits. empirical database on biodiesel. Urban buses applications are called “fleets” and they have a That study analysed in a comparative approach central fuelling system. the energy efficiency and the fossil fuel ratio of biodiesel and of diesel EN 590. The study concluded that the energy efficiency of biodiesel

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is almost the same as that of diesel EN 590.  During fermentation of bioethanol, carbon However the crucial difference between the two dioxide is released, and large quantity of fuels lies in the Fossil Fuel Ratio which was water used for hydrolyses and fermenting. considerably more positive for biodiesel (in a  Distillation produces heat, i.e. thermal range of 2.06 – 5.46 MJ of final primary pollution. energy/MJ fossil energy). These results confirm the renewable nature and benefits of biodiesel. Environmental impacts also include the following: Environmental Issues Generally Associated with Biofuels  Agrochemicals used in the farming of Biofuels and other forms of renewable energy energy crops. are used to control and decrease emissions  Emissions from growing the feedstock (e.g. associated with production and use of various petrochemicals used in fertilizers and fuels. Carbon neutral means that the carbon transport of water). released during the production and use of biofuels is re-absorbed by the plants. Adequate  Emissions from transporting the feedstock policies and economic instruments should help and water to the processing plant. ensure that biofuels commercialisation, including  Emissions from processing the feedstock. the development of new cellulosic technologies, is sustainable.  Emissions from the change in land use of the area where the fuel feedstock is grown. When land is cleared, vegetable matter that  Emissions from transportation of the absorbs GHG is removed, and therefore CO2 biofuels from the processing plant to the emitted by the vehicles used for clearing land point of use. adds to higher emissions.  Carbon dioxide produced at the tail pipe. The most common issues include:  Emissions generated by controlled burning  Agricultural residues left after seeds of the plantation for harvesting, instead of removal (e.g. cobs, pods, stems etc) add to using mechanical harvesting. the environmental problems. While it is recognised that biofuels have the  Combustion of biodiesel and bioethanol capacity to reduce greenhouse gas emissions

produces CO2 and some other gases. compared to fossil fuels, their production and use are not entirely without environmental  The presence of oxygen in biodiesel implications. Depending on the crop type, carbon improves combustion and therefore balance is not always smaller than for fossil fuels. reduces hydrocarbon, carbon monoxide and particulate emissions but oxygenated fuel tends to increase nitrogen oxide emissions.

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Standardisation of sustainably grown As a result the European production of biofuels biomass for biofuels does not contribute to deforestation or land Since the production of biofuels in general is degradation due to existing management closely related to agricultural activities, the practices and stringent environmental legislation production in Europe follows the EU Common in the European Member States. Agricultural Policy rules that lay down all environmental standards for agricultural Sustainable biofuel production practices production. would not hamper food and fibre production nor cause water or environmental problems but would actually enhance soil fertility. Therefore the sustainability of European

biodiesel and bioethanol is guaranteed by the

Cross-compliance rules followed by the

European Farmers and by all social and economical standards of developed economies.

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The world´s transport system is based on one polluting, and more diversified global single fuel - oil and today there does not seem to transport sector. be any realistic alternative to oil. Demand for oil is expected to grow for decades to come, along Biofuel policies should focus on market with the overall demand for energy. Biofuels can development and facilitate sustainable help meet this demand, and even if they will not international biofuel trade. The geographical replace oil, they should be regarded as an disparity between production and demand for integral part of the energy mix. biofuels will require the reduction in barriers to biofuel trade. Free movement of biofuels around To achieve a rapid increase in biofuels production the world should be coupled with social and that can be sustained over the long term, policies environmental standards and a credible system that are consistent, long-term and supported by to certify compliance. broad stakeholder participation are needed. They should also be a part of larger transportation Tax incentives have been used successfully in goals. Increasing efficiency still remains Brazil, Germany, the United States and other the cheapest way to alleviate the pollution and countries to spur biofuel production and reduce security risks associated with petroleum use. biofuel prices at the pump. The enormous Supportive government policies have been purchasing power of governments has been essential to the development of modern biofuels used successfully in a number of countries to over the past two decades. Blending expand the market for various products. regulations, tax incentives, government purchasing policies and other measures have Use of vehicles and fuels that are certified under been used to support biofuels. Development of sustainability schemes by governments could infrastructure and technologies have been most provide a powerful market driver. Local successful in increasing biofuels production. governments can switch entire fleets to run on Countries planning to develop domestic biofuel biofuels. National governments could gradually industries will be able to draw important increase the share of vehicles fueled by biofuels lessons—both positive and negative—from the up to 100 percent; except for military vehicles. industry leaders, in particular Brazil, the United States, and the European Union. Consumer demand could be another powerful driver of the renewable fuels market. Strategies Introducing new energy crops will require to increase public awareness about biofuels particular attention from governments in include various forms of public education, such designing their national agricultural policies that as formal awareness campaigns, public have a significant impact on the choice of which announcements, university research, etc. crops to grow. It is also essential that governments promote biofuels within the context Low-interest, long-term loans and risk of a broader transition to a more-efficient, less guarantees are required to facilitate the development of commercial refineries and “biorefineries.

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“Safety and certainty in oil lie in variety and variety alone”

Winston Churchil

If biofuels continue their rapid growth around the To achieve their full potential to provide supply globe, the impact on the agricultural sector will security, environmental, and social benefits, be significant. More jobs and stronger economic biofuels need to represent an increasing share development in rural areas in both industrialized of total transport fuel relative to oil. and developing countries is a distinct possibility. The more involved farmers are in the 1. Governments should pursue efforts that production, processing, and use of biofuels, the lead to diversification of transport fuel more likely they are to benefit from them. sources to improve economic, energy and environmental security. In regions where access to modern forms of energy is limited or non-existent, governments 2. Agricultural policies should balance the and development agency support for small-scale need for food and water supplies with biofuel production can help provide clean, biofuels production. accessible energy that is vital for rural development and poverty alleviation. 3. When performing analysis of fuel source and type, a cradle-to-grave LCA is Also as renewable fuel use becomes more necessary for understanding of widespread, opportunities for countries with economic, energy and environmental more developed biofuels industries to export impacts using a common, objective and their technologies will expand. transparent methodology.

Since biofuels may be categorised as 4. Governments should conduct research agricultural goods under the WTO Agreement to gain a better understanding of on Agriculture, industry may seek an exemption impacts of biofuels production and use from the Agreement’s restrictions on domestic on public health and local environment, price supports. as for other energy sources.

Alternatively, if biofuels are categorized as 5. Governments and industry should invest industrial goods, they may qualify for treatment in biofuels research and development to as “environmental goods.” To be included in stimulate breakthrough technologies such a category they should be required to meet and share best practices and strict environmental standards for their technologies for biofuels production and production. use.

Governments should promote biofuels within the context of a broader transformation of the transportation sector, since biofuels alone will not solve the world’s transportation-related energy problems.

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6. Governments should pursue policies to 9. Identifying the right place of biofuels encourage private sector investment production in the agricultural economy, into commercial scale production of including choices of the actual types biofuels – for proven technologies, (diesel from vegetable oil, ethanol from including incentives for scaling-up sugar or starch crops, solid biofuels technology from pilot to demonstration from wood or grass sources) is a to commercial scale. significant policy challenge.

7. Each country should strive to develop 10. While it is recognized that biofuels have open and free markets for biofuels, the capacity to reduce greenhouse gas although “grandfathering” subsidies, emissions compared to fossil fuels, their tariffs and other tools might be needed production and use are not entirely until domestic markets have been without environmental implications. established. Depending on the crop type and other factors, carbon emissions are not 8. All agricultural policies and strategies always lower than for traditional fuels. are based on local, national or in some cases regional circumstances and they include the mix of environmental (land,

water, climate), social (population, education) and economic (infrastructure, governance) factors. It is therefore impossible to develop “one-size-fits-all” policies for biofuels.

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Abbreviations and Acronyms

103 kilo (k) kg kilogram 106 mega (M) km2 square kilometre 109 giga (G) LNG liquefied natural gas 1012 tera (T) LPG liquefied petroleum gas 1015 peta (P) m metre 1018 exa (E) m/s metres per second 21 10 zetta (Z) m2 square metre AC alternating current m3 cubic metre API American Petroleum Institute mm millimetre b/d barrels per day mt million tonnes bbl barrel mtoe million tonnes of oil equivalent bcf billion cubic feet NGO non governmental organisation bcm billion cubic metres Nm3 normal cubic metre 9 billion 10 OECD Organisation for Economic Co-operation boe barrel of oil equivalent and Development C Celsius OPEC Organisation of the Petroleum Exporting cf cubic feet Countries cm centimetre R&D research and development CNG compressed natural gas RD&D research, development and demonstration CO2e carbon dioxide equivalent R/P reserves/production DC direct current t tonne (metric ton) FAO UN Food and Agriculture Organization tC tonnes carbon ft feet tce tonne of coal equivalent g gram toe tonne of oil equivalent GEF Global Environment Facility tpa tonnes per annum GHG greenhouse gas trillion 1012 h hour UN United Nations ha hectare UNDP United Nations Development Programme IEA International Energy Agency WEC World Energy Council J joule WTO World Trade Organization kcal kilocalorie

Biofuels: Policies, Standards and Technologies World Energy Council 2010 89 Conversion Factors and Energy Equivalents

Basic Energy Units Electricity

1 joule (J) = 0.2388 cal 1 kWh of electricity output = 3.6 MJ = approx. 860 1 calorie (cal) = 4.1868 J kcal (1 British thermal unit [Btu] = 1.055 kJ = 0.252 kcal) Representative Average Conversion Factors WEC Standard Energy Units 1 tonne of crude oil = approx. 7.3 barrels 1 tonne of oil equivalent (toe) = 42 GJ (net 1 tonne of natural gas liquids = 45 GJ (net calorific value) = 10 034 Mcal calorific value) 1 tonne of coal equivalent (tce) = 29.3 GJ (net 1 000 standard cubic metres of natural gas = 36 calorific value) = 7 000 Mcal GJ (net calorific value) Note: the tonne of oil equivalent currently 1 tonne of uranium (light-water reactors, open employed by the International Energy Agency cycle) = 10 000–16 000 toe and the United Nations Statistics Division is 7 1 tonne of peat = 0.2275 toe defined as 10 kilocalories, net calorific value (equivalent to 41.868 GJ). 1 tonne of fuel wood = 0.3215 toe 1 kWh (primary energy equivalent) = 9.36 MJ = Volumetric Equivalents approx. 2 236 Mcal 1 barrel = 42 US gallons = approx. 159 litres 1 cubic metre = 35.315 cubic feet = 6.2898 barrels

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Biofuels: Policies, Standards and Technologies World Energy Council 2010 91

List of Annexes

ANNEX No. Title Author Organisation

ANNEX 1 Country Case Studies

ANNEX 2 Automotive Fuel Quality Kenichiro Saitoh Nippon Oil Corporation Regulations and Strategies in Japan

ANNEX 3 Various Biofuels Feedstocks Prof. Bamidele National Biotechnology and the Associated Issues Ogbe Solomon Development

ANNEX 4 Biofuel Applications in Internal Dr Ian J. Potter Alberta Research Combustion Engines Council

ANNEX 5 Challenges and Opportunities Prof. Bamidele National Biotechnology Productivity Improvement in Ogbe Solomon Development Agriculture

ANNEX 6 Classification, Certification and Raffaello EBB - European Standardization Including GAROFALO Biodiesel Board Lifecycle Assessments of Biofuels

ANNEX 7 The EU Biofuels Policy and Raffaello EBB - European Regulatory Landscape GAROFALO Biodiesel Board

ANNEX 8 Sustainability Criteria for Raffaello EBB - European Biomass and Biofuels GAROFALO Biodiesel Board

ANNEX 9 LCA Studies for the Harmonisation Raffaello EBB - European of International Biofuels GAROFALO Biodiesel Board Sustainability Assessment

ANNEX 10 Energy Efficiency and End-Use Raffaello EBB - European Technologies of Biodiesel Production GAROFALO Biodiesel Board

Biofuels: Policies, Standards and Technologies World Energy Council 2010 92

Biofuels: Policies, Standards and Technologies World Energy Council 2010 93 Bibliography

Alakangas, Eija. Valtanen, et al. (2006). "CEN by-case. To protect household consumers, technical specification for solid biofuels- examples of so-called "high-quality" fuels are Fuel specification and classes." Biomass & given as an informative annex A of CEN/TS Bioenergy 30: 908-914. 14961. This paper describes the fuel specifications and classes of solid biofuels, The European Committee for Standardization, which was published in April 2005 CEN (TC335) is currently preparing 30 technical specifications for solid biofuels. The two most Alakangas, Eija. Vesterinen, et al. (2006). important technical specifications being "Efficient trading of biomass fuels and developed deal with classification and analysis of fuel supply chains and business models for market actors by networking." specification (CEN/TS 14961) and quality China. European bioenergy network, assurance for solid biofuels (CEN/TS 15234). EUBIONET 2 was established in 2005 and it The classification of solid biofuels is based on concentrates on biofuel markets and fuel supply their origin and source. The fuel production chains in Europe. The EUBIONET 2 is a two chain of fuels shall be unambiguously traceable year project funded by EU in the framework of back over the whole chain. The biofuels are Intelligent Energy - Europe Programme. The divided into the following sub-categories for project aims to give a clear outlook of the classification: (1) woody biomass, (2) current and future biomass fuel market trends in herbaceous biomass, (3) fruit biomass and (4) Europe; provide feedback on the suitability of blends and mixtures. The purpose of CEN 335 biofuel standards for trading of classification is to allow the possibility to biofuels; give well-analysed estimation on differentiate and specify biofuel material based techno-economic potential of the biomass fuel on origin with as much detail as needed. The volumes to the year 2010 based on the existing quality classification in a table form was studies and experts' opinions; enhance biomass prepared only for major traded solid biofuels: fuel trade and technology transfer by networking briquettes, pellets, exhausted olive cake, wood of different actors; analyse, select and describe chips, hog fuel, wood logs, sawdust, bark, and the most suitable trading and business models straw bales. Additionally, a general table was for small and large scale biofuel supply chains compiled for other biofuels. The most significant for heat and power production by taking into properties are normative, and shall be stated in account the environmental aspects and the fuel specification. The classification is sustainability; enhance biomass use by flexible, and hence the producer or the cooperation and information dissemination with consumer may select from each property class different market actors in the fuelutilisation the classification that corresponds to the chain. produced or desired fuel quality. This so called "free classification" does not bind different Alakangas, E., T. Lensu, et al. "Review of the characteristics with each other. An advantage of present status and future prospects of this classification is that the producer and the standards and regulations in the bioenergy consumer may agree upon characteristics case-

Biofuels: Policies, Standards and Technologies World Energy Council 2010 94

field." Alakangas, E., M. Sc, et al. "The binding quality criteria for the production and European pellet standardisation." provisioning and energetic use of biogenic solid The European Committee for Standardization, fuels. Because of this, the EU Commission has CEN, is currently preparing about 30 technical authorized the European Committee for specifications for solid biofuels (TC335). The Standards (CEN) to become active in the field of aim is to promote the trade of biofuels, so that standards for biogenic solid fuels. In the last 18 the customer and the seller can unanimously months with inclusion of all the EU member define the quality of solid biofuels. Finland is states and with financial support of the EU leading the preparation of technical Commission a program has been worked out specifications; Fuel specification and classes with respect to developing test and quality and Quality assurance under Working group 2 standards for biomass. This activity is (WG). Preparation fo testing methods for pellet assembled within the technical committee "Solid durability and other physical properties is carried Biofuels" (CEN/TC 335). The committee is out by WG4 lead by Sweden. WG3 prepares divided into working groups WG 1 "Terminology, standards for sampling and sample reduction Definition, and Description" (one standard); WG and WG5 analysis of chemical properties both II "Fuel Specifications, - Classes, and -Quality chaired by the Netherlands. WG1, terminology Assurance" (two standards); WG III "Taking and definitions, chaired by Germany, has Samples and Sample Reduction" (two already finalised their work. This paper handles standards); WC IV "Physical-Mechanical Tests" classification and specification of wood pellets (ten standards); and WG V "Chemical Tests" and testing of pellet durability. (nine standards. The activities of the CEN/TC 335 are supported in the CEN member states by Anonymous (2000). "Energy Forum. New so-called panel committees (Spiegel-Komitees). technical committee, "Solid Biofuels", Since 1998 scientists are working under founded. Standards for biogenic solid fuels." coordination of the University of Stuttgart on the Brennstoff, Warme, Kraft 52: 7-8. platform for a standardization of biogenic solid fuels. Supported by the Agency of Renewable Biogenic solid fuels are natural products and as Raw Materials, it performs advance work for such have variable properties. Up to now there CEN. It wants to work out for the first time have been no quality standards for them relating binding quality standards for biofuels. to their use as energy. Facility operators were hard put to procure the proper fuel. To solve this Anonymous (2004). "New York State sets 25 problem, for the first time for all of Europe percent renewable energy goal." Biocycle 45: binding quality and test standards for biofuels 60. Anonymous (2007). "Industrial are being developed. Despite efforts by biotechnology policy agenda for Europe." governments biogenic solid fuels up to now Industrial Biotechnology 3: 36-47 have been only slightly used to cover energy Industrial biotechnology (or, as known in demands in Germany. This is due to a Europe, white biotechnology) has thepotential to considerable information deficit, to high costs form the basis of a future EU Knowledge-Based compared with fossil fuels, and to the lack of BioEconomy (KBBE) and make European

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society both more sustainable and more Forestry, and Biofuels) are properly planned, competitive. But to realize this potential, a funded, and implemented within the Framework number of policy steps must be taken. This 7 program and at member state level through, report puts forward concrete policy proposals for for instance, the European Research Area the EU to encourage the development of a Network (ERA-Net). Within this context, it is KBBE. Of primary importance is the need to important to foster the synergies among the develop policy coherently across the EU and to various participating sectors, for example, by coordinate its implementation. There are many stimulating publicprivate partnership and policy strands and activities which relate to industry participation in general, promoting biotechnology (e.g., biofuels, research and interdisciplinary research, and striving to avoid innovation, climate change, sustainable fragmentation and duplication of programs. This development, Common Agricultural Policy left cooperation must also extend downstream bracket CAP right bracket reform, Environmental todemonstration projects, in particular, to enable Technologies Action Plan left bracket ETAP the development of flexible, research-oriented right bracket ); these must be harmonized for pilot plants to validate the concept of integrated consistency and efficiency. Appointment of a and diversified biorefineries. Appropriate funding KBBE coordinator by the Commission to bring schemes will be needed to allow multicompany together activities in the various Directorates consortia to collaborate in such precompetitive General (DGs) is essential. At the same time, a activities (first-of-kind biorefmeries). Moving KBBE task force is needed to coordinate EU beyond the research phase, there are practical member state programs. It is equally important steps which can be taken to facilitate the move that the policy be based on sound evidence. towards bioprocessing in manufacturing. A Data gathering, collation, and analysis underpin necessary prerequisite is the assurance of a the whole process: Good policy cannot be secure and affordable supply of biomass, for formulated without good data. At the other end which a combination of policy, innovation, and of the policy-making process, a comprehensive financial incentives will be needed. With the roadmap is needed to chart the way towards the supply of feedstock assured, conversion of biobased economy and allow both coherent existing industrial processes to biobased ones implementation and good impact evaluation. can be encouraged through streamlined With the enabling policy framework in place, full regulatory processes (akin to the Fast Track support then has to be given to innovation in system used by the US Environmental biotechnology in general, and white Protection Agency), assessing the opportunities biotechnology in particular. This is a research- for biobased processes and products to driven activity, and Europe must build upon its contribute and benefit from the EU's Climate strengths in the area. This means, in particular, Change Policy and providing market-based ensuring that the various relevant Strategic mechanisms to overcome investment hurdles. Research Agendas (SRAs) from the KBBE- This manufacturing push can be further related Technology Platforms (particularly enhanced through market-pull effects. Demand Sustainable Chemistry, Plants for the Future, can be raised in a number of ways: for example

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by setting appropriate public-sector procurement among the investment community in order for standards, short-term positive price funds to be made available more easily. The discrimination, or promotional labeling of necessary communications program is a vital products (e.g., "biobased") . While all these part of the overall stakeholder outreach effort. actions will have a positive effect, they will be But this in itself will not be sufficient. Because of more effective if supported by a coherent the particular difficulties of raising capital for communications plan to raise awareness of the SMEs, a new investment model will be needed potential of industrial biotechnology, the use of which sits between loans and conventional renewable resources, and the benefits the private equity, to provide finance along with KBBE will bring. The plan should take account equitable risk sharing. As the industrial of all major stakeholders, including industry, biotechnology sector becomes increasingly policy makers, consumers, farmers, and the successful, venture capital will become more investment community, but early-stage available. In conclusion, to establish a (upstream) open engagement with the general sustainable KBBE in Europe, efforts are needed: public is particularly important. Smaller To establish a coherent European Policy companies make up an important part of this Agenda for industrial biotechnology and the relatively young biotechnology sector, and it is KBBE To stimulate and support innovation in they who will provide much of the necessary plant science and industrial biotechnology To innovation. Because of their early stage of promote production and use of biobased development, there are a number of hurdles products and processes To create awareness they find more difficult to overcome than larger among all stakeholders To improve investment companies do. Small-to-medium enterprises in KBBE-related SMEs (SMEs) need help, in particular, to reduce the cost of intellectual property protection. Anonymous (2008). "Fueling bioenergy Ultimately, a single European Community patent endeavors." Resource, Engineering & Technology for a Sustainable World 15: 15- will provide the answer, but in the meantime, a 27. specific SME application process is needed at The planned bioenergy-related programs and the European Patent Office (EPO). Early-stage endeavors across North American colleges and search costs could also be reduced by universities have been summarized. The introducing a searchable database flagged for colleges and universities are addressing the industrial biotechnology applications. While need for interdisciplinary approaches to supply intellectual property forms the basis of the growing market for renewable energy, and innovation, finance is needed to derive value ASABE group members within the ivory towers from it. Proof-of-concept work is often funded by are at the front. ASABE members have fostered grants for start-up companies, and SMEs could the development of bioenergy by selecting benefit from a similar grant system for work on energy and energy management as a top environment-friendly technologies. More strategic focus. ASABE is focusing on generally, greater awareness of the potential of developing an environmentally sustainable the industrial biotechnology sector is needed technology for biomass feedstock production,

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delivery, and the very processes for converting effects, could reach 123,000 jobs in 2012, biomass to energy. ASABE is encouraging 383,000 in 2016, and 807,000 by 2022.: revisions to existing standards and engineering Investments in advanced biofuels processing practices that relate to bioenergy, and is plants alone could reach dollar 3.2 billion in identifying needed new standards. Auburn 2012, rising to dollar 8.5 billion in 2016, and University Center for bioenergy and bioproducts dollar 12.2 billion by 2022.: Cumulative is emphasizing the system approaches in all investment in new processing facilities between research and extension efforts to develop the 2009 and 2022 could total more than dollar 95 value added product solutions to local and billion.: Direct economic output from the community problems. advanced biofuels industry, including capital investment, research and development, Anonymous (2009). "Economic impact of US technology royalties, processing operations, advanced biofuels production to feedstock production, and biofuels distribution, 2030."Industrial Biotechnology 5: 40-52. is estimated to rise to dollar 5.5 billion in 2012, The US Renewable Fuel Standard (RFS) for dollar 17.4 billion in 2016, and dollar 37 billion transportation fuels sets minimum levels of by 2022.: Taking into consideration the indirect renewable fuels that must be blended into and induced economic effects resulting from gasoline and other transportation fuels from direct expenditures in advanced biofuels 2006 to 2022. Specific requirements for blending production, the total economic output effect for advanced biofuels,1 including cellulosic biofuels the US economy is estimated to be dollar 20.2 and biomass-based diesel, begin at 0.6 billion billion in 2012, dollar 64.2 billion in 2016, and gallons per year in 2009 and rise to 21 billion dollar 148.7 billion in 2022.: Advanced biofuels gallons in 2022. The RFS levels for advanced production under the RFS scenario could reduce biofuels production will drive the creation of a US petroleum imports by approximately dollar major new industry, creating a foundation for 5.5 billion in 2012, dollar 23 billion in 2016, and future technology development and commercial nearly dollar 70 billion by 2022. The cumulative growth. To estimate the economic implications total of avoided petroleum imports over the of the emergence of this industry, Bio-Era period 2010-2022 would exceed dollar 350 conducted a meta-analysis of nearly two dozen billion. The Bio-Era model was also used to studies of economic impacts of biofuels assess the economic implications of a scenario production, developed a model to analyze in which total US biofuels production grows to economic output and job creation, and applied 60 billion gallons by 2030, with 15 billion gallons this model to analyze the economic impact of of conventional biofuels production and 45 increasing US advanced biofuel production to 21 billion gallons of advanced biofuels production. billion gallons per year by 2022. This analysis This analysis concludes that: Approximately yielded the following conclusions: Direct job 400,000 jobs would be directly created in the creation from US advanced biofuels production advanced biofuels industry, with total could reach 29,000 jobs by 2012, rising to employment creation in the US economy totaling 94,000 by 2016, and 190,000 by 2022.: Total job 1.9 million jobs.: Direct economic output from creation, accounting for economic multiplier

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advanced biofuels production would rise to filter plugging point, the kinematic viscosity at 40 dollar 113 billion by 2030. The total economic degree C and the density at 15 degree C. output effect would be dollar 300 billion.: Principal component analysis was used to Biomass feedstocks in this scenario could be perform a qualitative analysis of the spectra and provided by a mix of agricultural and forest partial least squares regression to develop the wastes and dedicated energy crops, providing a calibration models between analytical and total of 470 million dry tons of biomass by 2030 spectral data. The results support that NIR using existing crop and forest land.: The spectroscopy, in combination with multivariate average cost of advanced biofuel production at calibration, is a promising technique applied to the plantgate in 2030 would be dollar biodiesel quality control, in both laboratory and 1.88/gallon, including all operating costs, industrial-scale samples. overhead, and capital recovery Baptista, Patricia. Felizardo, et al. (2008). Azevedo, R. (2007). Ethanol and biodiesel "Multivariate near infrared spectroscopy and Brazil: standards and technical models for predicting the iodine value, specifications. Presentation power point at CFPP, kinematic viscosity at 40 degree C the International Conference on Biofuels and density at 15 degree C of biodiesel." Standards. Baptista, Patricia. Felizardo, et al. Talanta 77: 144-151. (2008). "Multivariate near infrared Biodiesel is one of the main alternatives to fossil spectroscopymodels for predicting the diesel. It is a non-toxic renewable resource, methyl esters content in biodiesel." which leads to lower emissions of polluting Analytica Chimica Acta607: 153-159. gases. In fact, European governments are Biodiesel is one of the main alternatives to fossil targeting the incorporation of 20% of biofuels in diesel. It is a non-toxic renewable resource, the fossil fuels until 2020. Chemically, biodiesel which leads to lower emissions of polluting is a mixture of fatty acid methyl esters, derived gases. In fact, European governments are from vegetable oils or animal fats, which is targeting the incorporation of 20% of biofuels in usually produced by a transesterification the fossil fuels until 2020. Chemically, biodiesel reaction, where the oils or fats react with an is a mixture of fatty acid methyl esters, derived alcohol, in the presence of a catalyst. The from vegetable oils or animal fats, which is European Standard (EN 14214) establishes 25 usually produced by a transesterification parameters that have to be analysed to certify reaction, where the oils or fats react with an biodiesel quality and the analytical methods that alcohol, in the presence of a catalyst. The should be used to determine those properties. European Standard (EN 14214) establishes 25 This work reports the use of near infrared (NIR) parameters that have to be analysed to certify spectroscopy to determine some important biodiesel quality and the analytical methods that biodiesel properties: the iodine value, the cold should be used to determine those properties. filter plugging point, the kinematic viscosity at 40 This work reports the use of near infrared (NIR) degree C and the density at 15 degree C. spectroscopy to determine some important Principal component analysis was used to biodiesel properties: the iodine value, the cold perform a qualitative analysis of the spectra and

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partial least squares regression to develop the to have limited environmental effectiveness on calibration models between analytical and their own. Technology-transfer agreements are spectral data. The results support that NIR likely to have similar properties unless the level spectroscopy, in combination with multivariate of resources expended is large, in which case calibration, is a promising technique applied to they could be environmentally significant. biodiesel quality control, in both laboratory and Technology-specific mandates or incentives industrial-scale samples. could be environmentally effective within the applicable sector, but are more likely to make a Bonazza, B. (2007). US biofuels standards cost-effective contribution when viewed as a and regulations. Presentation power point at complement to rather than a substitute for the International Conference on Biofuels flexible emissions-based policies. These results Standards. Brazil, T. T. F. "European Union, and Unites States of America." Whitepaper indicate that TOAs could potentially provide a on Internationally Compatible Biofuel valuable contribution to the global response to Standards. Cahill, B. (2007). European climate change. The success of specific TOAs biofuels standards and regulations. will depend on their design, implementation, and Presentation power point at the International the role they are expected to play relative to Conference on Biofuels Standards. Carlin, A. other components of the policy portfolio. "Why a Different Approach Is Required if Global Climate Change Is to be Controlled Doraswami, U. (2008). "The European Efficiently or Even at all." William & Mary Biofuels Challenge." on 4(10): 2008-2008. Environmental Law and Policy Review. De Biofuels have become a global household word Coninck, H., C. Fischer, et al. (2008). due to the raging debate on their use between "International technology-oriented agreements to address climate change." policymakers, non-governmental groups Energy Policy 36(1): 335-356. (NGOs), producers, public and the media. The Much discussion has surrounded possible subject was an important issue at the recent G8 alternatives for international agreements on summit held in Tokyo where soaring food prices climate change, particularly post-2012. Among and shortages held centre-stage. It also caused these alternatives, technology-oriented headlines when an article in The Guardian, agreements (TOAs) are perhaps the least well quoting extracts from an unpublished World defined. We explore what TOAs may consist of, Bank Report, claimed that biofuels were why they might be sensible, which TOAs already responsible for hiking the food prices up by exist in international energy and environmental 75%.1 Biofuels have generated an array of governance, and whether they could make a reports and proposals from both EU valuable contribution to addressing climate governments and NGOs on the benefits versus change. We find that TOAs aimed at knowledge damages that large-scale production of biofuels sharing and coordination, research, would cause. Europe in particular has been a development, or demonstration could increase quick starter in adopting biofuel targets. As part the overall efficiency and effectiveness of of the European Union’s (EU) ‘green’ international climate cooperation, but are likely commitment, politicians have made speedy

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commitments towards technologies that seem to several studies as contributing to food shortages offer solutions to the twin problems of climate and an increase in food prices the world over. change and Europe’s dependence on imported Due to this, their use has been passionately energy. However, the media have recently opposed by social and environmental groups strongly suggested that the EU to be leading to a fiery media debate on their real backpedalling on the implementation of its potential. This has also led to the formulation of biofuels targets.2 However, the main reasons certain sustainability criteria that biofuels must galvanising the growth of the European biofuel ideally meet. All biofuels are no longer equal. market remain unchanged. They are: rising oil There is beginning to be a distinction between prices and geopolitical undercurrents first- and second-generation biofuels. Although it surrounding global oil production and distribution will be some time before second-generation strategies; climate change; government biofuels are available, these are seen as being subsidies such as Europe’s Renewable Energy important future contributors to the alternatives Sources (RES) Directive. The biofuels industry for fossil fuels. This report briefly outlines what has, since its inception, drawn encouragement first- and second-generation biofuels are; from government support. Yet in early July describes the different types of biofuels currently 2008, there have been suggestions of the EU in use; and outlines the political and backtracking on the adoption of their ambitious environmental reasons for their importance. It biofuels target. For instance, EU MEPs backed examines the drivers and obstacles to the a proposal to obtain just 4% of road transport market, outlines trends in the European market fuels from renewable sources by 2015. The 27- such as production heading to Eastern Europe, nation EU’s official line still remains that it will and analyses the media backlash and furore adhere to the target of obtaining 10% of motor over the food vs. fuel debate. Additionally, the vehicle fuel from renewable sources by 2020. report examines the sustainability criteria for This forms a vital component of the overall goal biofuels, touches on the emerging new of the EU to reduce carbon emissions by 20%.3 technologies, and highlights examples of There have been growing signs from individual industry entrepreneurship. governments, however, that the tide supporting the biofuels industry could well be turning. The Energies, W. "Overview and British Government has said it would ‘proceed Recommendations on Biofuel Standards for Transport in the EU."Heinimö, J. and E. cautiously’ over the introduction of biofuels, Alakangas (2006). Solid and Liquid Biofuels taking into account The Gallagher Report which Markets in Finland–a study on international looked at the knock-on effects of biofuel biofuels trade. IEA Bioenergy Task production.4 Recently there have also been This study considered the current situation of reports that some French politicians have solid and liquid biofuels markets and questioned the biofuels policy. Germany, for its international biofuels trade in Finland and part, has already done away with tax breaks for identified the challenges of the emerging green fuels. Biofuels have been both seen as an international biofuels markets for Finland. The alternative to fossil fuels and implicated in fact that industry consumes more than half of

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the total primary energy, widely applied purposes; to analyze the business situation for combined heat and power production (CHP) and the producers, to examine to what extent a high share of biofuels in the total energy product standards and environmental consumption are specific to the Finnish energy certification instruments were used within the system. One third of the electricity is generated industry, and to make an estimate on future in CHP plants. AS much as 27% of the total potentials and possibilities for the pellet industry. energy consumption is met by using wood and The study was conducted in the form of a peat, which makes Finland the leading country questionnaire survey to the manufacturers of in the use of biofuels. Finland has made a fuel pellets in Sweden and the results are based commitment to maintain greenhouse gas on answers from 55 % of the producers, emissions at the 1990 level at the hightest accounting for 86 % of the total production during the period 2008-2012. The Finnish capacity. The results indicate a rapidly energy policy aims to achieve the target, and a expanding production capacity and at the same variety of measures are taken to promote the time a strained raw material situation. The use of renewable energy sources and especially production increased with as much as 260 % woodfuels. from 2001 to 2007, and the planned capacity expansion totals 708 000 annual tonnes, or over Hess and Glenn (2006). "Push for biofuels 40 % of the capacity for 2007. During the same seen in farm bill." Chemical & Engineering period, the competition for raw materials was News 84: 29-31. Höglund, J. The Swedish getting more intense; one third of the producers fuel pellets industry: Production, market and standardization, Sveriges experience the raw material situation as the lantbruksuniversitet. largest threat to the production and the majority The production and demand for wood-based of firms have evaluated alternative raw materials fuel pellets has increased considerably both in in response to the increased competition. Sweden and internationally the recent years. Among the alternatives examined are for Today Sweden is one of the leading nations example roundwood and pulp wood. The when it comes to production and use of fuel majority (47 %) of the production go to small- pellets. Despite the favorable development great scale consumers. The greatest part (74 %) of all challenges wait. The all time high production of pellets manufactured are produced according to saw mill by-products is not enough to satisfy the the Swedish Standard, but among the small- growing demand for by-products, resulting in scale producers the use of standardization is increasing raw material prices and competition. low. More than one fifth of the production is Seen in a historic context, the pellet industry has certified according to FSC and PEFC (scarcely been characterized by fluctuations in supply and 300 000 tonnes). The low degree of certification demand and uncertainty about how changes in depends in a first instance on the fact that 53 % governmental subsidies and the development of of the producers do not use environmentally competitive substitutes will affect the situation. certified raw materials but ultimately on the low This study presents a broad overview of the demand for environmental certified pellets. Swedish pellet industry. The study had three Today the pellet industry is very dependent on

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the demand and supply balance for other forest compliant countries report more land use, land industry products, a dependence that in a future use change and forestry. perspective should be abandoned in favor of alternative and forest industry independent raw Junginger, M., A. Faaij, et al. "Opportunities materials. To avoid the risks associated with and barriers for sustainable international bioenergy trade and strategies to overcome overbuilding capacity, a greater share of the them." A report prepared by IEA Bioenergy Swedish production should go to the expanding Task 40. international market. Trade of Biomass and Bioenergy (Biotrade) can provide a stable and reliable situation for Johnson and Eric (2009). "Goodbye to carbon neutral: Getting biomass footprints sustainable production of biomass fuels, right." Environmental Impact Assessment become a source of additional income and Review 29: 165-168. increased employment (e.g. for rural Most guidance for carbon footprinting, and most communities) and may contribute to the published carbon footprints or LCAs, presume sustainable management of natural resources. that biomass heating fuels are carbon neutral. For importers, biotrade may assist to fulfil GHG However, it is recognised increasingly that this is emission reduction targets in a costeffective incorrect: biomass fuels are not always carbon manner, diversify their fuel mix and lead to a neutral. Indeed, they can in some cases be far more sustainable energy production. Stimulated more carbon positive than fossil fuels. This flaw by the renewable energy policies in several in carbon footprinting guidance and practice can countries, rising oil prices and a wish for be remedied. In carbon footprints (not just of diversification of supply, in most Task 40 biomass or heating fuels, but all carbon member countries, growth rates of 10-20% per footprints), rather than applying sequestration year (and above) have been observed in credits and combustion debits, a 'carbon-stock international trade of biomass and bioenergy. change' line item could be applied instead. Not However, a multitude of different barriers only would this make carbon footprints more currently exist, hampering the development of accurate, it would make them consistent with international bioenergy trade. These include UNFCCC reporting requirements and national economic, technical, logistical, ecological, reporting practice. There is a strong precedent social, cognitive, legal, and trade barriers, lack for this change. This same flaw has already of clear international accounting rules and been recognised and partly remedied in statistics, and issues regarding land availability, standards for and studies of liquid biofuels (e.g. deforestation, energy balances, potential biodiesel and bioethanol), which now account conflicts with food production and local use vs. for land-use change, i.e. deforestation. But it is international trade. To address these barriers, a partially or completely missing from other number of issues have been identified for further studies and from standards for footprinting and consideration: To ensure biomass sustainability, LCA of solid fuels. Carbon-stock changes can it is recommended for actors in the various be estimated from currently available data. bioenergy routes both in importing and exporting Accuracy of estimates will increase as Kyoto countries to seek agreements on short-term

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(minimum) sustainability criteria, and to support well as their current use is analysed and a long-term development of international discussed in the context of the overall energy standards for important and generally accepted system. The result of this analysis shows that issues. Some of the Task 40 members advocate there are still unused potentials, which can an international certification system for biomass contribute significantly to cover the energy embedded in (inter)national regulations, while demand within the EU-15. The most important others would preferably see a voluntary markets for solid biofuels are analysed in detail; approach. For market transparency, Task 40 markets for solid biofuels with low, medium, and recommends to the IEA, UNCTAD, WTO and large variations of fuel properties. This national trade organisation to include (new) investigation shows that biofuels with essentially biomass types in their statistics, and to include uniform fuel properties have shown the most the final application (e.g. energy, chemical impressive market developments in recent feedstock, fodder etc.) where possible. years. The main prerequisite to achieve this Furthermore, it is recommended that the various significant growth in market volume has been standards that are applied today are developed standardisation of the fuel properties. Therefore into internationally accepted quality standards biofuel standardisation is seen as a major key for specific biomass streams (e.g. CEN biofuel issue to develop the markets. standards). To stimulate international trade, Task 40 identifies import barriers for certain Kaphengst, T., M. S. Ma, et al. (2009). "At a biomass and biofuels types to be a major tipping point? How the debate on biofuel standards sparks innovative ideas for the obstacle for a smooth further development of general future of standardisation and international bioenergy trade. Some Task certification schemes." Journal of Cleaner members emphasise that on the short-term, Production. local industries should also be given the Consumer demand for environmentally and opportunity to develop innovative and improved socially responsible products is the driving force processes for biomass and biofuels production. behind the expansion of competing certification Other task members stress that such a process systems. Paradoxically, this has led to an should be coupled to a phase-out agenda with increasingly crowded marketplace for labels and clearly defined quotas. confusion among stakeholders such as producers, retailers and buyers, rather than Kaltschmitt, Martin. Weber, et al. (2006). providing clear and reliable product information "Markets for solid biofuels within the EU-15." Biomass & Bioenergy 30: 897-907. as intended. The situation has sparked a debate Biomass is seen as a very promising option for about the future of certification schemes and the fulfilling the environmental goals defined by the need for a more streamlined system. This article European Commission as well as various explores some of the innovative ideas coming national governments. The goal of this paper is from the current discussion regarding biofuel to analyse the possibilities for energy provision certification and standardisation and outlines from biomass in general and from solid biofuels how those ideas can be applied to create a in particular. The potentials of solid biofuels as

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global generic standard-setting scheme for the historical development since the beginnings natural resources. in Austria and the volumes produced today in the world, the main raw materials used, key fuel Knoef, H. and J. Ahrenfeldt (2005). Handbook properties and standards. It highlights the fuel's biomass gasification, BTG Biomass environmental advantages and different Technology Group. marketing strategies applied as well as key The Handbook on Biomass Gasification is factors of micro- and macro-economic meant to disseminate the results of the considerations. European Gasification Network (GasNet) to a wider audience, which started in 2001 with Liska, Adam J. Cassman, et al. (2008). funding of DG TREN. The gasification network "Towards standardization of life-cycle was clustered to the pyrolysis network, metrics for iofuels: Greenhouse gas comprising the Thermonet project with 36 emissions mitigation and net energy yield." members of all EU countries including Journal of iobased Materials & Bioenergy 2: Switzerland. Each Network had its own work 187-203. aniatis, K. (2007). EC Policy on biofuels specifications. Presentation power programme, but both ha also a common focus of point at he International Conference on addressing commercialisation issues and Biofuels Standards.Market, S. B. "Technical providing support for more rapid and more Specifications for Solid Biofuels." effective implementation of all the technologies Belbo, H. 2006. Technical Specifications for in the market place. The Handbook describes Solid Biofuels. Evaluation of the new echnical specific topic discussed thoroughly within Specifications provided by CEN/TC 335 in the GasNet and additional chapters on more Swedish Biofuel Market. asters Thesis. The general aspects of biomass gasification main objective of this thesis was to determine to including gasification of pyrolysis oil, market which xtent the new terminology standard and assessments, economics, legislative impacts, fuel specification standard provided by he health and safety, tar standardisation and European Committee for Standardization (CEN) incentives for bio-energy through gasification. have penetrated the wedish biofuel market and Authors and co-authors have been invited to to which extent they fit the need of its users. contribute in various Two urveys and six interviews were performed. One survey was addressed to large cale Korbitz and W (1999). "Biodiesel production producers, suppliers and consumers of solid in Europe and North America, an biofuels, the other survey was dressed to encouraging prospect." Renewable energy 16: 1-4. producers and suppliers of equipment for As used already by Rudolf Diesel in 1912 plant upgrading and ombustion of solid biofuels. The oils represent not a new alternative fuel interviewees were actors from different stages n compared to fossil sources, but only by the force the biofuel supply chain: 1) Medium-scale log of the oil supply shocks in the 70s a new wood producer; 2) Large scale roducer and development of Biodiesel was triggered. This supplier of solid woodfuels for large scale paper gives a review of the political background, consumers; 3) Large cale straw firing DH-plant;

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4) Actor providing measurement services of US Summit on 30 April 2007, creating the larges cale biofuel deliveries; 5) Large scale Transatlantic Economic Council (TEC), they producer of upgraded solid biofuels. esults from praised themselves for opening a new era in the surveys indicate that ca two thirds of the transatlantic regulatory cooperation. biofuel actors and one hird of the equipment Transatlantic integration and growth were said producers know about the existence of at least to be enhanced and efforts to reduce barriers to one of the entioned standards. Still only a few of transatlantic trade and investment redoubled. the respondents use any of the standards. However, after two meetings of the TEC with Some nonconformity between information only modest achievements, enthusiasm has required by the biofuel factors and information faded quickly and finger pointing has begun provided of the standards was discovered. Net anew. What went wrong? calorific value is highly demanded by both producers and consumers and should be Obernberger, Ingwald. Brunner, et al. (2006). obligatory information for most kinds of solid "Chemical properties of solid biofuelssignificance and impact." Biomass & biofuels. Content of heavy metals and Cesium Bioenergy 30: 973-982. 137 should be stated if it is high enough to The chemical composition of solid biofuels (as cause risk for restrictions regarding ash defined in left bracket Directive 2000/76/EC of recycling in crop land and forest. Ash melting the European Parliament and of the Council on temperature is demanded for many kinds of the Incineration of Waste. In: European fuels and ash melting is seen as a problem Commission, editor. Official Journal of the causing wear and stoppages by 80% of the European Communities, vol. L 332; 2000. p. 91- respondents making combustion equipment. 111 right bracket and left bracket CEN/TC 335- Some of the interviewees were sceptical to the WG2 N94. Final draft. European Committee for idea of several threshold values on the different standardization, editor. Solid biofuels-fuel fuel properties. Many of the threshold values is specifications and classes. Brussels, Belgium; suggested to be rejected, except from cases 2003. right bracket has manifold effects on their where they are motivated by restrictions thermal utilisation. C, H and O are the main regarding contamination of ash, risk for air components of solid biofuels and are of special emissions or where solid biofuels are intended relevance for the gross calorific value, H in for usage by unskilled people at household addition also for the net calorific value. The fuel level. Key words: Solid biofuels, standards, fuel N content is responsible for NOx formation. NOx quality Author’s address: Helmer Belbo, emissions belong to the main environmental Department of Bioenergy, SLU, P.O. Box 7061 impact factors of solid biofuel combustion. Cl Mildner, S. and O. Ziegler (2009). "A Long and S are responsible for deposit formation and and thorny road." Intereconomics 44(1): 49- corrosion and are therefore relevant for a high 58. plant availability. Furthermore, Cl causes HCl as When the European Union and the United well as PCDD/F and S SOx emissions and both States agreed on the Framework for Advancing elements are involved in the formation of Transatlantic Economic Integration at the EU- aerosols (submicron particle emissions). The

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ash content influences the choice of the Quotas, W., T. Continues, et al. (2009). appropriate combustion technology and "REFERENCES TO OTHER TOPICS." influences deposit formation, fly ash emissions Environmental Policy and Law 39(1): 75-76. UNEP: Development of Biofuels Standards and the logistics concerning ash storage and UNEP is in the process of obtaining global ash utilisation/disposal. Major ash forming stakeholder... Rao, Y. (2007). Biofuels elements (Al, Ca, Fe, K, Mg, Na, P, Si, Ti) are of Standards and Regulation in India. relevance for the ash melting behaviour, deposit Presentation power point at the International formation and corrosion. In addition, volatile Conference on Biofuels Standards. Ribeiro, elements such as Na and K are main Nubia. Pinto, et al. (2007). "The role of constituents of aerosols. Volatile minor elements additives for diesel and diesel blended (As, Cd, Hg, Pb, Zn) play a major role in (ethanol or biodiesel) fuels: A review." Energy & Fuels 21: 2433-2445. gaseous and especially aerosol emissions as Around the world, there is a growing increase in well as in deposit formation, corrosion and ash biofuels consumption, mainly ethanol and utilisation/disposal. Either partly or non-volatile biodiesel as well as their blends with diesel that minor elements (Ba, Co, Cr, Cu, Mo, Mn, V) are reduce the cost impact of biofuels while of special relevance for ash utilisation. The retaining some of the advantages of the present paper discusses the influence of biofuels. This increase is due to several factors chemical fuel properties on biomass combustion like decreasing the dependence on imported plants as well as possibilities and petroleum; providing a market for the excess recommendations for controlling them. production of vegetable oils and animal fats; Purvis, N. (2004). Climate Change and the using renewable and biodegradable fuels; L20 Options for Non-Emission Target reducing global warming due to its closed Commitments, Post-Kyoto Architecture: carbon cycle by CO2 recycling; increasing Toward an L. lubricity; and reducing substantially the exhaust Iodine value (IV) limitation of biodiesel is emissions of carbon monoxide, unburned currently one of the most discussed topics within hydrocarbons, and particulate emissions from the different world-wide biofuel specifications. diesel engines. However, there are major Claims concerning engine operability on high IV drawbacks in the use of biofuel blends as NOx feedstocks and biodiesel are interrelated. Also, tends to be higher, the intervals of motor parts the limitation of feedstock is a major problem for replacement such as fuel filters are reduced and producers as well as for biodiesel trade. In this degradation by chronic exposure of varnish context, it might be time to re-evaluate the IV deposits in fuel tanks and fuel lines, paint, parameter. Based on available data, reports, concrete, and paving occurs as some materials and experience in this field the enclosed are incompatible. Here, fuel additives become considerations maybe will help to answer the indispensable tools not only to decrease these (admittedly provocative) question: Is IV limitation drawbacks but also to produce specified still appropriate? products that meet international and regional standards like EN 14214, ASTM D 6751, and DIN EN 14214, allowing the fuels trade to take

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place. Additives improve ignition and incompatible fuels are shipped to an increasing combustion efficiency, stabilize fuel mixtures, number of locations. Further, because biofuels protect the motor from abrasion and wax will typically be produced near the bio- deposition, and reduce pollutant emissions, feedstocks—which are currently not typically among other features. Two basic trends are served by pipeline systems—trucking, rail, and becoming more relevant: the progressive barge infrastructure may expand until and reduction of sulfur content and the increased unless new pipelines are built. Finally, the use of biofuels. Several additives' compositions different blendstocks required for different may be used as long as they keep the basic regions will reduce the fungibility of petroleum chemical functions that are active. liquid fuels, thereby reducing trade and increasing price volatility, similar to the effects in Rotman, D. (2008). "New federal biofuel the United States of a proliferation of gasoline standards will distort the development of blends in response to Clean Air Act air quality innovative energy technologies." standards. These and other unintended effects TECHNOLOGY REVIEW-MANCHESTER NH- 111(2): 90-90. Rusco, F. W., W. D. Walls, et al. and additional capital expenditures raise serious "BIOFUELS, PETROLEUM REFINING, AND questions about the efficacy of rapid expansion THE SHIPPING OF MOTOR FUELS." of biofuel use and also call for policy makers to A number of Asian and European countries, the consider negotiating biofuel production and U.S. federal government, and numerous blending standards to reduce the eventual individual U.S. states and localities have number of incompatible liquid fuels. proposed or mandated use of biofuels—such as ethanol made from corn or biodiesel made from Rutz, D. (2007). "BioFuel SWOT-Analysis." soybeans or other crops—partly in an effort to WIP Renewable Energies–2007 1. reduce greenhouse gas emissions and reduce consumption of petroleum products. These In times of shrinking fossil energy resources, mandates call for biofuels to be blended in biofuels are a visible alternative for satisfying varying proportions with traditional gasoline or today’s transport needs. Among many others, diesel and, in some cases, allow or require the main advantages of biofuels are their different biofuel standards. To maintain engine potential to reduce greenhouse gas emissions performance and emissions requirements, and their contribution to secure energy supply. varying biofuel blends and standards will require On the other hand, the production of biofuels is changes to gasoline and diesel blendstocks that land and cost intensive. In order to get an biofuels are mixed with. The manufacture of overview of advantages and disadvantages of these different blendstocks will require biofuels, a SWOT analysis was conducted in the modifications to the refining infrastructure. In framework of the project Biofuel Marketplace. addition, changes to blendstocks will further This analysis addresses biofuels in comparison balkanize the mix of liquid fuels and put with fossil fuels and in comparison with each additional strain on an already stressed pipeline other. It will serve as a basic document for and storage infrastructure as smaller batches of creating a favorable policy framework to

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promote biofuels. The project Biofuel highlighted by stakeholders and authorities. Marketplace (www.biofuelmarketplace.com) Consequently large efforts have been made on provides a biofuel information portal combined biofuel standardisation in the European Union: with a supply and demand information system (a since 2003 a common European standard for web-based biofuel marketplace) in order to biodiesel exists. Also the standardisation for provide a forum where Europe’s biofuel bioethanol proceeded. The Technical stakeholders can promote their technologies, Committee number 19 of CEN is working very exchange ideas, sell and buy biofuel products, hard to issue a common European standard for disseminate results of national, international and bioethanol. A first draft is already publicly European research activities and raise available. The development and implementation awareness of the public and the professional of standardisations diminishes trade barriers, community. Recent European advances, pro-motes safety, increases compatibility of projects, products, results and patents are products, systems and services, and promotes screened at strategic, management and common technical understanding. All standards technological levels and the commercially help build the 'soft infrastructure' of mod-ern, feasible results of European initiatives are fed innovative economies. They provide certainty, into the Biofuel Marketplace to be made references, and benchmarks for design-ers, available for all European stakeholders through engineers and service providers. They give 'an the project website. optimum degree of order' (CEN 2006). Thus standards are of vital importance for producers, Rutz, D. and R. Janssen (2006). Overview suppliers and users of biofuels. A standard is a and Recommendations on Biofuel Standards prerequisite for the market introduction and for Transport in the EU, WIP Renewable commercialisation of new fuels. Energies. His report gives an overview on biofuel Samson, R., S. B. Stamler, et al. (2008). standards for transport in the European Union. It "Analysing Ontario biofuel options: will outline the most recent developments in Greenhouse gas mitigation efficiency and biofuel standardisation to inform producers of costs." BIOCAP Foundation of Canada, biofuels and related technologies, traders, prepared by REAP Canada. online: Biocap politicians and other stakeholders who are inter- Canada< http://www. biocap. ested in this subject. With the advancement and ca/reports/BIOCAP- REAP_bioenergy_policy_incentives. pdf. expansion of the European Union, generally the Fuels made from biological feedstocks rather role of national standards has been increasingly than coal, oil or natural gas have attracted taken over by international standards, primarily widespread interest from policy makers, European standards. These European investors and consumers. A key attraction of standards are developed by the European biofuels is the promise to address priorities such Committee for Stan-dardization (CEN). As the as energy security, climate change and rural market share of biofuels increased considerably economic development. In recent years, in the last few years, the need for specifications concerns about climate change have taken and standards of these biofuels has been

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centre stage, dominating the press, affecting 2Goldman School of Public Policy University of elections in Australia, and winning former U.S. California, Berkeley 9/X/08 3corresponding Vice-President Al Gore both an Oscar for Best author: [email protected] Executive Documentary Film and the 2007 Nobel Peace Summary To reduce global warming and in Prize. Given the current importance of the pursuit of other goals, renewable fuel standards climate change issue, this study compares the (RFS’s) in Canada, the UK, Germany, and cost effectiveness of various alternative energy elsewhere, and the California low carbon fuel policy incentives in mitigating greenhouse gas standard (LCFS), directly or implicitly require emissions in the Province of Ontario. The report blenders of transportation fuels to use fuel concludes that solid biofuels offer the least components such as bioethanol in their expensive biofuel strategy for government products. These components must be shown to incentives to reduce greenhouse gas emissions have lower GHG emissions than conventional in the province of Ontario. petroleum on the basis of life cycle assessment (LCA). Most of these programs go beyond Schober, S. and M. Mittelbach (2007). "Iodine mitigating climate change by addressing a broad value and biodiesel: Is limitation still set of criteria that are intended to support social, appropriate?" Lipid Technology 19(12). economic, and ecological welfare, loosely Iodine value (IV) limitation of biodiesel is categorized under the word sustainability. currently one of the most discussed topics within Environmental, economic and social the different world-wide biofuel specifications. sustainability criteria can be inferred from three Claims concerning engine operability on high IV main sources: the academic literature; feedstocks and biodiesel are interrelated. Also, government frameworks aimed at setting the limitation of feedstock is a major problem for sustainability policies for biofuels; and non- producers as well as for biodiesel trade. In this government organizations supporting context, it might be time to re-evaluate the IV development of biofuels that meet their parameter. Based on available data, reports, preferred set of sustainability criteria. We and experience in this field the enclosed develop a set of operational definitions of considerations maybe will help to answer the especially important sustainability criteria for (admittedly provocative) question: Is IV limitation biofuels, and from this a list of possible still appropriate? sustainability reporting requirements for the LCFS in near and longer-term time frames: • Spatari, S. and K. Fingerman (2008). "Sustainability and the Low Carbon Fuel carbon storage, • biodiversity conservation, • soil Standard." Research Report for the conservation, • sustainable water use, • air California Air Resources Board, in pollution, • food security, • labor issues, and • preparation. land rights issues. Since unconventional Sustainability and the Low Carbon Fuel petroleumbased fuels, primarily those developed Standard Sabrina Spatari1,3, Michael O’Hare2, from the Canadian oil sands, are expected to Kevin Fingerman1, Daniel Kammen1,2, Alex E. also gain market share in coming years, we also Farrell1 1Energy and Resources Group examine fuel production sustainability metrics

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and reporting requirements for those fuels. The those arrived at by probabilistic (Monte Carlo) dimensionality, local specificity, and data simulation. The two approaches yield demands for an integrated assessment of comparable results but possibilistic modelling sustainability usable in the LCFS (and by offers significant advantages with respect to implication, in other RF programs as well) are computational efficiency. The net energy daunting. We discuss implementation structures balance of CME is estimated to be by which a regulator could include these approximately 36 MJ kg-1, significantly higher dimensions of fuel performance and find that at than the 28 MJ kg-1 net energy typical of this point Spatari et al 9-X-08 p. 2 existing rapeseed oil methyl ester (RME) relevant to the knowledge is too weak for sustainability U.K standards to be designed with sufficient robustness, and might require regulators to Temmerman, Michael. Rabier, et al. (2006). adopt a disclosure-only monitoring program, "Comparative study of durability test methods for pellets and briquettes." with the consideration of regulating in the future. Biomass & Bioenergy 30: 964-972. 1.0 Introduction Different methods for the determination of the Stapel, C. (2007). Vehicle Emissions as a mechanical durability (DU) of pellets and Basis for Fuel Specifications. International briquettes were compared by international round Conference on Biofuels Standards, robin tests including different laboratories. The European Commission, Bruxelles, February. DUs of five briquette and 26 pellet types were Tan, Raymond R. Culaba, et al. (2002). determined. For briquettes, different rotation "Application of possibility theory in the life- numbers of a prototype tumbler and a calculated cycle inventory assessment of biofuels." DU index are compared. For pellets testing, the International Journal of Energy Research 26: study compares two standard methods, a 737- 745. tumbling device according to ASAE S 269.4, the Data uncertainty issues have constrained the Lignotester according to ONORM M 7135 and a widespread acceptance of life-cycle analysis second tumbling method with a prototype (LCA) and related methods. This is particularly tumbler. For the tested methods, the important in the LCA of fuels due to the wide repeatability, the reproducibility and the required range of available feedstocks and processing minimum number of replications to achieve options. Despite recent attempts at given accuracy levels were calculated. standardization, there remain persistent doubts Additionally, this study evaluates the relation about the general validity of LCA results, often between DU and particle density. The results due to uncertainties about data quality. This show for both pellets and briquettes, that the paper demonstrates the application of possibility measured DU values and their variability are theory as a tool for handling life-cycle inventory influenced by the applied method. Moreover, the data imprecision for the case of the net energy variability of the results depend on the biofuel balance of coconut methyl ester (CME) as a itself. For briquettes of DU above 90%, five biodiesel transport fuel. Results derived using a replications lead to an accuracy of 2%, while 39 possibilistic computation are contrasted with replications are needed to achieve an accuracy

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of 10%, when briquettes of DU below 90% are Tripartite, T. F. and E. U. A. Ue (2007). White tested. For pellets, the tumbling device Paper on Internationally Compatible Biofuel described by the ASAE standard allows to reach Standards, December. acceptable accuracy levels (1%) with a limited This report gives an overview of standardisation number of replications. Finally, for the tested of solid biofuels and of equipment for biofuel pellets and briquettes no relation between DU utilisation as well as ideas and proposals for and particle density was found. development of additional standards related to the bioenergy field. Existing standards have Thephun, P. (2007). Biofuels Standards and been analysed for their suitability in biofuel trade Regulation in Thailand. Presentation power and usage. During this analysis and in contacts point at the International Conference on with numerous biofuel professionals, needs and Biofuels Standards. Tian, Y. S., L. X. Zhao, et ideas for further standards wer identifed and al. (2007). "Status of solid biofuel standards collected. Included are short summaries of both of EU." Kezaisheng Nengyuan(Renewable published standards and standards under Energy Resources) 25(4): 61-64 development in Europe. The European So far, EU has established a solid biofuels organisation for standardisation, CEN, is in the standard system, which includes five aspects process of develping a whole seriew of such as terminology; specifications and classes, standards for solid biofuels. There are also CEN and quality assurance; sampling and sample equipment standards and guidelines, both reduction; Physical (or mechanical) test; published and under development. Beside DEN chemical test and etc., 26 technical regulations standards there are national standards in most have been issued. At present, China still lacks countries. A short description of each standard solid biomass fuel standards. Therefore, is presented including contact information. learning from the European Union standard, and building our solid biomass fuels standard system Türk, A., H. Schwaiger, et al. "AN are of great significance. So far, EU has ASSESSMENT OF TRADING MECHANISMS established a solid biofuels standard system, AS A METHOD FOR INCREASING LIQUID which includes five aspects such as terminology; BIOFUELS IN THE ROAD TRANSPORT specifications and classes, and quality SECTOR." assurance; sampling and sample reduction; The road transport sector is currently excluded Physical (or mechanical) test; chemical test and from the EU-ETS and is unlikely to be included etc., 26 technical regulations have been issued. until 2020. Abatement costs for biofuel-related At present, China still lacks solid biomass fuel measures in the transport sector are higher than standards. Therefore, learning from the in other sectors. Therefore an inclusion into the European Union standard, and building our solid EU-ETS represents a risk that transportation biomass fuels standard system are of great companies will purchase allowances from other significance. sectors, leading to higher CO2 prices within the EU-ETS. This would also reduce incentives to mitigate emissions in the transport sector itself. Policy options include regulation, market based

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instruments such as emissions trading and policy instruments. At the same time, large provision of information. Policy makers will need consumption volumes and the advent of to decide whether to focus on limiting emissions innovative production technologies make it from the transport sector or to increase use of possible for Member States to promote specific biofuels. A cap & trade scheme would be the types of biofuels, depending on their main appropriate instrument to reduce emissions. To objectives and natural potentials. This will increase biofuel use, regulation would be the require complementary instruments such as appropriate instrument. Inclusion of emission subsidies for production facilities, user reductions from the transportation sector via a incentives or feedstock subsidies. baseline & credit approach would favor biofuels and could lead to more flexibility and lower Yamane and Koji (2006). "Trends and future costs. Such an approach could also be specially of biofuels." Review of Automotive Engineering 27: 039-047. designed to address issues of sustainability and Despite a rapid worldwide expansion of the to accelerate the implementation of new biofuel industry, there is a lack of consensus technologies. This approach was taken in within the scientific community about the California and this paper illustrates that it could potential of biofuels to reduce reliance on also be the way forward for the EU. petroleum and decrease greenhouse gas (GHG) Wiesenthal, T., G. Leduc, et al. (2009). emissions. Although life cycle assessment "Biofuel support policies in Europe: Lessons provides a means to quantify these potential learnt for the long way ahead." Renewable benefits and environmental impacts, existing and Sustainable Energy Reviews 13(4): 789- methods limit direct comparison within and 800. between different biofuel systems because of Biofuel consumption in the EU is growing rapidly inconsistencies in performance metrics, system but major efforts will need to be undertaken if boundaries, and underlying parameter values. the EU's objectives for 2010 and beyond are to There is a critical need for standardized life- be achieved. This article analyses the strengths cycle methods, metrics, and tools to evaluate and weaknesses of different biofuel support biofuel systems based on performance of policies based on the experiences gained in feedstock production and biofuel conversion at pioneering countries and explores scenarios for regional or national scales, as well as for their possible impacts in the long-term. It comes estimating the net GHG mitigation of an to the conclusion that important pre-conditions individual biofuel production system to such as fuel standards and compatibility with accommodate impending GHG-intensity engines are in place or being introduced on an regulations and GHG emissions trading. EU-wide basis. Current and future policy support Predicting the performance of emerging biofuel therefore focuses on creating favourable systems (e.g., switchgrass; cellulosic ethanol) economic or legal frameworks to accelerate the poses additional challenges for life cycle market penetration of biofuels. The ambitious assessment due to lack of commercialscale targets endorsed in terms of biofuel market feedstock production and conversion systems. shares require the implementation of efficient Continued political support for the biofuel

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industry will be influenced by public perceptions of the contributions of biofuel systems towards mitigation of GHG emissions and reducing dependence on petroleum for transportation fuels. Standardization of key performance metrics such as GHG emissions mitigation and net energy yield are esservtial to help inform both public perceptions and public policy.

Biofuels: Policies, Standards and Technologies World Energy Council 2010 114 Bibliography Biofuels Conversion Technologies

Anaerobic Digestion Adam J. Liska, H. S. Y., regulatory GHG reduction targets. These results Virgil R. Bremer, Terry J. Klopfenstein, suggest that corn-ethanol systems have Daniel T. Walters, Galen E. Erickson, substantially greater potential to mitigate GHG Kenneth G. Cassman, (2009). "Improvements emissions and reduce dependence on imported in Life Cycle Energy Efficiency and Greenhouse Gas Emissions of Corn- petroleum for transportation fuels than reported Ethanol." Journal of Industrial Ecology 13(1): previously. 58-74. Corn-ethanol production is expanding rapidly Ihrig, D. F., H. M. Heise, et al. (2008). with the adoption of improved technologies to "Combination of biological processes and fuel cells to harvest solar energy." Journal of increase energy efficiency and profitability in Fuel Cell Science & Technology 5. crop production, ethanol conversion, and Biomass production bc micro-algae is by a coproduct use. Life cycle assessment can factor of 10 more efficient than by plants, by evaluate the impact of these changes on which an economic process of solar energy environmental performance metrics. To this end, harvesting can be established. Owing to the we analyzed the life cycles of corn-ethanol very low dry mass content of algal suspension, systems accounting for the majority of U.S. the most promising way of their conversion to a capacity to estimate greenhouse gas (GHG) high exoergic and transportable form of energy emissions and energy efficiencies on the basis is the anaerobic production of biogas. On of updated values for crop management and account of this, we are developing such yields, biorefinery operation, and coproduct processes including a micro-algal reactor utilization. Direct-effect GHG emissions were methods for microalgal cell separation and estimated to be equivalent to a 48% to 59% biomass treatment, and a subsequent two-stage reduction compared to gasoline, a twofold to anaerobic fermentation process. First results threefold greater reduction than reported in from parts of this development work are shown. previous studies. Ethanol-to-petroleum The continuous feeding of the anaerobic output/input ratios ranged from 10:1 to 13:1 but process over several weeks using micro-algal could be increased to 19:1 if farmers adopted biomass is discussed in more details. The high-yield progressive crop and soil biogas is composed management practices. An advanced closed- loop biorefinery with anaerobic digestion of methane, higher hydrocarbons, carbon reduced GHG emissions by 67% and increased dioxide, and hydrogen sulphide. Using steam the net energy ratio to 2.2, from 1.5 to 1.8 for the reforming, it can be converted to a mixture of most common systems. Such improved carbon dioxide and hydrogen. These gases can technologies have the potential to move corn- be separated using membrane technology. It is ethanol closer to the hypothetical performance possible to form a closed carboncycle by of cellulosic biofuels. Likewise, the larger GHG recycling the carbon dioxide to the micro-algal reductions estimated in this study allow a process. The transportable and storable greater buffer for inclusion of indirect-effect land- hydrogen product is a valuable energy source use change emissions while still meeting and can he converted to electrical energy and

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heat using fuel cells. The simulation of such a the International Joint Power Generation process will be explicated. Copyright copy 2008 Conference. by ASME. A study is being conducted by Southern Company, Southern Research Institute, EPRI Cofiring Blevins, L. G. and T. H. Cauley Iii and the US Department of Energy to evaluate (2005). "Fine particulate formation during the feasibility, costs, and benefits of co-firing switchgrass/coal cofiring." Journal of switchgrass with coal in existing coal-fired power Engineering for Gas Turbines & Power plants. Switchgrass is a highly productive prairie 127(3): 457-463. grass native to the United States. The grass can Experiments to examine the eftects of be grown on marginal land, requires little biomass/coal cofiring on fine particle formation fertilization and weed control, and can be were performed in the Sandia Multi-Fuel maintained and harvested with standard farm Combustor using fuels of pure coal, three equipment. Energy production from a renewable combinations of switchgrass and coal, and pure biomass fuel offers reduced emissions, including switchgrass. For this work, fine particles with CO2, NOx, and SO2, as well as agri-business aerodynamic diameter between 10 mn and 1 benefits. The program includes farm, pilot-scale mum were examined. A constant solid-fuel combustor, and full-scale power plant studies. thermal input of 8 kW was maintained. The Three hundred acres of Alabama farmland have combustion products were cooled from 1200 to been planted with switchgrass, and costs and 420 degree C during passage through the 4.2 m techniques of grass production, harvesting long reactor to simulate the temperatures options, handling, and preparation are being experienced in the convection pass of a boiler. evaluated. To evaluate the possibility of co- Fine particle number densities, mass milling coal and grass, studies were conducted concentrations, and total integrated number and at Southern Company's pilot combustion facility mass concentrations at the reactor exit were to investigate the milling properties of the determined using a scanning mobility particle mixtures. Combustion studies, also conducted at sizer The fine particle number concentrations for the pilot facility, measured the effects of co-firing cofiring were much higher than those achieved methods and quantities on emissions, with dedicated coal combustion. However, the combustion stability, unburned carbon, and total integrated mass concentration of particles slagging and fouling. Results have been remained essentially constant for all levels of obtained on field processing and handling cofiring from 0% coal to 100% coal. The issues, as well as farm production costs. Pilot- constant mass concentration is significant scale tests of co-milling and combustion of because pending environmental regulations are blends of switchgrass with coal have been likely to be based on particle mass rather than successfully completed. An additional phase of particle size. Copyright copy 2005 by ASME. work yet to be completed is full-scale testing of switchgrass co-firing in a 60 MW power plant Boylan, D., S. Wilson, et al. (2001). Evaluation of Switchgrass Co-firing for boiler. For these tests, a pneumatic injection Utility Boiler Applications. Proceedings of system was designed and constructed at the

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site. In on-going testing, switchgrass is being with average costs ranging from dollar 20 to conveyed at up to 10% of the total heat input dollar 60/ton. Costs for states east of the through this system and introduced into the Mississippi River are largely unaffected by boiler boiler separately from the coal. Testing is replacement; Atlantic seaboard states represent scheduled to be completed by mid- 2001. the lowest cofiring cost of carbon mitigation. The central plains states west of the Mississippi Morrow, W. R., W. M. Griffin, et al. (2008). River are most affected by the boiler "National-level infrastructure and economic replacement option and, in general, go from one effects of switchgrass cofiring with coal in of the lowest cofiring cost of carbon mitigation existing power plants for carbon mitigation." Environmental Science & Technology 42(10): regions to the highest. We explain the variation 3501-3507. in transportation expenses and highlight regional We update a previously presented Linear cost of mitigation variations as transportation Programming (LP) methodology for estimating overwhelms other cofiring costs. copy 2008 state level costs for reducing CO2 emissions American Chemical Society. from existing coal-fired power plants by cofiring Styles, D. and M. B. Jones (2007). "Energy switchgrass, a biomass energy crop, and coal. crops in Ireland: Quantifying the potential This paper presents national level results of life-cycle greenhouse gas reductions of applying the methodology to the entire portion of energy-crop electricity." Biomass & the United States in which switchgrass could be Bioenergy 31(11-12): 759-772. grown without irrigation. We present incremental This study uses life-cycle assessment (LCA) to switchgrass and coal cofiring carbon cost of compare greenhouse gas (GHG) emissions mitigation curves along with a presentation of from dominant agricultural land uses, and peat regionally specific cofiring economics and policy and coal electricity generation, with fuel-chains issues. The results show that cofiring 189 million for Miscanthus and short-rotation-coppice willow dry short tons of switchgrass with coal in the (SRCW) electricity. A simple scenario was used existing U.S. coal-fired electricity generation as an example, where 30% of peat and 10% of fleet can mitigate approximately 256 million coal electricity generation was substituted with short tons of carbon-dioxide (CO2) per year, co-fired Miscanthus and SRCW, respectively. representing a 9% reduction of 2005 electricity Miscanthus and SRCW cultivation were sector CO2 emissions. Total marginal costs, assumed to replace sugar-beet, dairy, beef- including capital, labor, feedstock, and cattle and sheep systems. GHG emissions of transportation, range from dollar 20 to dollar 1938 and 1346 kg CO2 eq. ha-1 a-1 for 86/ton CO2 mitigated, with average costs Miscanthus and SRCW cultivation compared ranging from dollar 20 to dollar 45/ton. If some with between 3494 CO2 eq. ha-1 a-1 for sugar- existing power plants upgrade to boilers beet cultivation and 12,068 CO2 eq. ha-1 a-1 for designed for combusting switchgrass, an dairy systems. Miscanthus and SRCW fuel additional 54 million tons of switchgrass can be chains emitted 0.131 and 0.132 kg CO2 eq. cofired. In this case, total marginal costs range kWh-1 electricity exported, respectively, from dollar 26 to dollar 100/ton CO2 mitigated, compared with 1.150 and 0.990 kg CO2 eq.

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kWh-1 electricity exported for peat and coal fuel renewable energy option. Switchgrass (Panicum chains. 1.48 Mt CO2 eq. a-1 was saved from virgatum) grown as a biofuel has the potential to electricity production, and 0.42 Mt CO2 eq. a-1 provide a cash crop for farmers and quality was saved from displaced agriculture and soil C- nesting cover for grassland birds. In sequestration. The total reduction of 1.9 Mt CO2 southwestern Wisconsin (near lat. 42 degree 52 eq. a-1 represents 2.8% of Ireland's 2004 GHG prime , long. 90 degree 08 prime ), we emissions, but was calculated to require just investigated the impact of an August harvest of 1.7% of agricultural land area and displace just switchgrass for bioenergy on community 1.2% of the dairy herd (based on conservative composition and abundance of Wisconsin Miscanthus and SRCW combustible-yield grassland bird species of management concern. estimates of 11.7 and 8.81 t ha-1 a-1 dry matter, Harvesting the switchgrass in August resulted in respectively). A 50% increase in cultivation changes in vegetation structure and bird species emissions would still result in electricity being composition the following nesting season. In produced with an emission burden over 80% harvested transects, residual vegetation was lower than peat and coal electricity. Lower yield shorter and the litter layer was reduced in the assumptions had little impact on total GHG year following harvest. Grassland bird species reductions for the scenario, but required that preferred vegetation of short to moderate substantially greater areas of land. It was height and low to moderate density were found concluded that energy-crop utilisation would be in harvested areas. Unharvested areas provided an efficient GHG reduction strategy for Ireland. tall, dense vegetation structure that was copy 2007 Elsevier Ltd. All rights reserved. especially attractive to tall-grass bird species, such as sedge wren (Cistothorus platensis) and Combustion Henslow's sparrow (Ammodramus henslowii). L., B. L., M. T. R., et al. (1998). "The behavior When considering wildlife habitat value in of inorganic material in biomass-fired power harvest management of switchgrass for biofuel, boilers: Field and laboratory experiences." Fuel Process. Technol. 54: 47. L., T., S. R., et leaving some fields unharvested each year al. (2007). "Deposit characteristic after would be a good compromise, providing some injection of additives to a Danish strawfired habitat for a larger number of grassland bird suspension boiler." Fuel Process. Technol. species of management concern than if all fields 88: 1108. N., K. J., J. P. A., et al. (2004). were harvested annually. In areas where most "Transformation and release to gas phase of idle grassland habitat present on the landscape Cl, K and S during combustion of annual is tallgrass, harvest of switchgrass for biofuel biomass." Energy Fuels 18: 1385. Roth, A. has the potential to increase the local diversity M., D. W. Sample, et al. (2005). "Grassland bird response to harvesting switchgrass as a of grassland birds. biomass energy crop." Biomass & Bioenergy 28(5): 490-498. Ryu, C., Y. B. Yang, et al. (2006). "Effect of fuel properties on biomass combustion: Part The combustion of perennial grass biomass to I. Experiments - Fuel type, equivalence ratio and particle size." Fuel 85(7-8): 1039-1046. generate electricity may be a promising

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Moving bed combustion is commonly used for subsurface reservoirs is thought by many energy conversion of biomass. Conditions on scientists to be a reliable solution until emission- the moving bed can be conveniently free energy sources are developed and viable. represented by a time dependent fixed bed. The The current options for captured CO2 utilization present work experimentally investigates the are; Enhanced Oil Recovery (EOR), Enhanced combustion of four biomass materials having Coal Bed Methane Recovery (ECBM), different fuel properties in a fixed bed under fuel- Enhanced Gas Recovery (EGR), Food rich conditions. Temperature, gas composition processing applications, Mineral products, and mass loss curves identified two distinct Fertilizer manufacture, Algae growth promoter, periods as the combustion progresses in the Enhanced plant growth. The capture and bed: the ignition propagation and char oxidation. storage of CO2 continues to accelerate as new The effects of bulk density, particle size and air projects are initiated and existing projects flow rate on the combustion characteristics confirm the development scenarios. A crucial during the two periods are interpreted by using element in CO2 storage is reliable monitoring of the ignition front speed, burning rate, CO 2 migration behavior and storage volumes. percentage of mass loss, equivalence ratio and An innovative seismic monitoring techniques, temperature gradient. Different channelling of air has recently been awarded a U.S. Department was observed for small miscanthus pellets and of Energy (DOE) project that will examine the large wood particles due to the fast propagation application of timelapse (4D) seismic technology of the ignition front around a channel. The and advanced reservoir simulation to optimize elemental ash composition was also analysed, CO2 EOR operations. Well design, cementing, which explained the sintered agglomerates of completions techniques and long life cycle miscanthus ashes in terms of alkali index. copy mechanical integrity assurance are currently 2005 Elsevier Ltd. All rights reserved. subject of many R&D projects. Industry expertise also is being tapped in CO2 projects Sengul, M. (2006). CO2 sequestration - A safe across Europe and in Australia, including four transition technology. 8th SPE International major EU proposals under the Framework Conference on Health, Safety and Program Six and the Australian CO2CRC Orway Environment in Oil and Gas Exploration and Production 2006 8th SPE International Project. These projects address pertinent issues Conference on Health, Safety and in CO2 capture and storage such as site Environment in Oil and Gas Exploration and selection, storage monitoring and verification Production 2006. techniques, developing local CO2 storage sites Fossil fuel fired plants are responsible for the from hydrogen- and power-generation plants, one third of the carbon dioxide (CO2) emissions and industry training. In our paper framework of which thought to be a major contributor to the CO2 sequestration and vital aspects such as; current rise in the Earth's surface temperature. site selection, reservoir characterization, Reducing CO2 atmospheric concentrations by modeling of storage and long term leakage capturing emissions at the source - power plants monitoring techniques will be illustrated. or chemical units - and then storing them in

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Copyright 2006. Society of Petroleum 12.11.2002 with priority in Israel dated Engineers. 22.03.1999. Many more benefits to the customer than are in the patent text are highlighted in the Combustion – Fluidized Bed Boiler paper, including fresh water by desalination. In Yantovski, E. I. (2008). "Solar energy view of the active work in Italy on water cleaning conversion through seaweed photosynthesis using Ulva and contaminants in the water as and zero emissions power generation." Surface Engineering & Applied nutrients for an increase of the biomass Electrochemistry 44(2): 138-145. productivity, an additional target of the SOFT The present paper is aimed at describing a cycle might be incineration. Some suppositions "closed cycle" power plant scheme (Solar of the use of a desert surface for massive scale Oxygen Fuel Turbine (SOFT)) with macroalgae use of ponds are given. copy Allerton Press, Inc. (seaweed) cultivation in a pond, combustion of 2008. its organic matter in a fluidized bed boiler using Directly Burnable the Rankine cycle, and return of the combustion Yantovski, E. I. (2008). "Solar energy products to the pond to feed the algae. The conversion through seaweed photosynthesis oxygen used for combustion is released to the and zero emissions power generation." atmosphere during Surface Engineering & Applied Electrochemistry 44(2): 138-145. photosynthesis. It is further elaborated in a The present paper is aimed at describing a paper presented at ECOS2005 in Trondheim. "closed cycle" power plant scheme (Solar As a renewable fuel, the seaweed Ulva lactuca Oxygen Fuel Turbine (SOFT)) with macroalgae is selected. Its growth rate in many experiments (seaweed) cultivation in a pond, combustion of (in the literature) is 0.1-0.2 per day, the heating its organic matter in a fluidized bed boiler using value of its dry weight is 19 MJ/kg, and its the Rankine cycle, and return of the combustion optimal concentration in salt water is 1:1000. products to the pond to feed the algae. The The energy efficiency is less than in oxygen used for combustion is released to the photovoltaics, but the energy expenditures to atmosphere during photosynthesis. It is further construct the pond as a solar energy receiver elaborated in a paper presented at ECOS2005 are much less, so it gives some economic in Trondheim. As a renewable fuel, the seaweed benefits. For a power unit of 100 kW, the pond Ulva lactuca is selected. Its growth rate in many surface is about 4 hectare. The cultivation of experiments (in the literature) is 0.1-0.2 per day, seaweed in sea-water ponds is well developed the heating value of its dry weight is 19 MJ/kg, in Italy and Israel for water cleaning and and its optimal concentration in salt water is chemical production. Construction in the future 1:1000. The energy efficiency is less than in of a SOFT system near the Dead Sea in the photovoltaics, but the energy expenditures to Israeli desert would provide the country with construct the pond as a solar energy receiver needed power, chemicals, and fresh water using are much less, so it gives some economic solar energy. The system is protected by United benefits. For a power unit of 100 kW, the pond States Patten no. 6 477 841 B1 dated surface is about 4 hectare. The cultivation of

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seaweed in sea-water ponds is well developed of radiation power and residence time. in Italy and Israel for water cleaning and Pretreated solids were enzymatically hydrolyzed chemical production. Construction in the future and reducing sugars in the hydrolysate were of a SOFT system near the Dead Sea in the analyzed. Microwave radiation of switchgrass at Israeli desert would provide the country with lower power levels resulted in more efficient needed power, chemicals, and fresh water using enzymatic hydrolysis. The application of solar energy. The system is protected by United microwave radiation for 10 minutes at 250 watts States Patten no. 6 477 841 B1 dated to switchgrass immersed in 3% sodium 12.11.2002 with priority in Israel dated hydroxide solution (w/v) produced the highest 22.03.1999. Many more benefits to the customer yields of reducing sugar. Results were than are in the patent text are highlighted in the comparable to conventional 60 minute sodium paper, including fresh water by desalination. In hydroxide pretreatment of switchgrass. The view of the active work in Italy on water cleaning findings suggest that combined microwave-alkali using Ulva and contaminants in the water as is a promising pre-treatment method to enhance nutrients for an increase of the biomass enzymatic hydrolysis of switchgrass. productivity, an additional target of the SOFT cycle might be incineration. Some suppositions Fermentation Murnen, H. K., V. Balan, et al. of the use of a desert surface for massive scale (2007). "Optimization of Ammonia Fiber Expansion (AFEX) pretreatment and use of ponds are given. copy Allerton Press, Inc. enzymatic hydrolysis of Miscanthus x 2008. giganteus to fermentable sugars." Biotechnology Progress 23(4): 846-850. Enzymatic Hydrolysis Keshwani, D. R., J. J. Miscanthus x giganteus is a tall perennial grass Cheng, et al. Microwave pretreatment of switchgrass to enhance enzymatic whose suitability as an energy crop is presently hydrolysis. 2007 ASABE Annual International being appraised. There is very little information Meeting, Technical Papers 2007 ASABE on the effect of pretreatment and enzymatic Annual International Meeting, Technical saccharification of Miscanthus to produce Papers. v 15 BOOK 2007. 8p 077127. fermentable sugars. This paper reports sugar Switchgrass is a promising lignocellulosic yields during enzymatic hydrolysis from biomass for fuel-ethanol production. However, ammonia fiber expansion (AFEX) pretreated pretreatment of lignocellulosic materials is Miscanthus. Pretreatment conditions including necessary to improve its susceptibility to temperature, moisture, ammonia loading, enzymatic hydrolysis. The objectives of this residence time, and enzyme loadings are varied study were to examine the feasibility of to maximize hydrolysis yields. In addition, further microwave pretreatment to enhance enzymatic treatments such as soaking the biomass prior to hydrolysis of switchgrass and to determine the AFEX as well as washing the pretreated optimal pretreatment conditions. Switchgrass material were also attempted to improve sugar samples immersed in water, dilute sulfuric acid yields. The optimal AFEX conditions determined and dilute sodium hydroxide solutions were were 160 degree C, 2:1 (w/w) ammonia to exposed to microwave radiation at varying levels biomass loading, 233% moisture (dry weight

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basis), and 5 min reaction time for watersoaked fossil fuel use translates to 82-87% reductions in Miscanthus. Approximately 96% glucan and greenhouse gas emissions across all unblended 81% xylan conversions were achieved after 168 cellulosic biofuels. In urban areas, our study h enzymatic hydrolysis at 1% glucan loading shows net reductions for almost all criteria using 15 FPU/(g of glucan) of cellulase and 64 pollutants, with the exception of carbon p-NPGU/(g of glucan) of beta-glucosidase along monoxide (unchanged), for each of the biofuel with xylanase and tween-80 supplementation. A production option examined. Conventional and mass balance for the AFEX pretreatment and hybrid electric vehicles, when fueled with E85, enzymatic hydrolysis process is presented. copy could reduce total sulfur oxide (SO x)emissions 2007 American Chemical Society and American to 39-43% of those generated by vehicles fueled Institute of Chemical Engineers. with gasoline. By using bio-FTD and bio-DME in place of diesel, SOx emissions are reduced to Fermentation – ASPEN Plus Model Wu, M., Y. 46-58% of those generated by diesel-fueled Wu, et al. (2006). "Energy and emission vehicles. Six different fuel production options benefits of alternative transportation liquid were compared. This study strongly suggests fuels derived from switchgrass: A fuel life cycle assessment." Biotechnology Progress that integrated heat and power co-generation by 22(4): 1012-1024. means of gas turbine combined cycle is a crucial We conducted a mobility chains, or well-to- factor in the energy savings and emission wheels (WTW), analysis to assess the energy reductions. copy 2006 American Chemical and emission benefits of cellulosic biomass for Society and American Institute of Chemical the U.S. transportation sector in the years 2015- Engineers. 2030. We estimated the life-cycle energy Gassification Adler, P. R., M. A. Sanderson, consumption and emissions associated with et al. (2006). "Biomass yield and biofuel biofuel production and use in light-duty vehicle quality of switchgrass harvested in fall or (LDV) technologies by using the Greenhouse spring." Agronomy Journal 98(6): 1518-1525. gases, Regulated Emissions, and Energy use in Seasonal time of switchgrass (Panicum Transportation (GREET) model. Analysis of virgatum L.) harvest affects yield and biofuel biofuel production was based on ASPEN Plus quality and balancing these two components model simulation of an advanced fermentation may vary depending on conversion system. A process to produce fuel ethanol/protein, a field study compared fall and spring harvest thermochemical process to produce Fischer- measuring biomass yield, element Tropsch diesel (FTD) and dimethyl ether (DME), concentration, carbohydrate characterization, and a combined heat and power plant to co- and total synthetic gas production as indicators produce steam and electricity. Our study of biofuel quality for direct combustion, revealed that cellulosic biofuels as E85 (mixture of 85% ethanol and 15% gasoline by volume), ethanol production, and gasification systems for FTD, and DME offer substantial savings in generation of energy. Switchgrass yields petroleum (66-93%) and fossil energy (65-88%) decreased almost 40% (from about 7-4.4 Mg ha- consumption on a per-mile basis. Decreased 1) in winters with above average snowfall when

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harvest was delayed over winter until spring. sugar concentrations for mixtures of hardwood The moisture concentration also decreased (aspen, basswood, and red maple), a softwood (from about 350-70 g kg -1) only reaching low (balsam), and the energy crop switchgrass, with enough levels for safe storage by spring. About very good agreement. The results of this study 10% of the yield reduction during winter resulted show that there are not significant synergistic or from decreases in tiller mass; however, almost antagonistic effects by mixtures of woody 90% of the yield reduction was due to an biomass species on the kinetics of hemicellulose increase in biomass left behind by the baler. hydrolysis by dilute acid. Kinetic parameters Mineral element concentrations generally were developed for each woody biomass decreased with the delay in harvest until spring. species with xylose formation activation Energy yield from gasification did not decrease energies ranging from 76.19-171.20 kJ/mol, and on a unit biomass basis, whereas ethanol pre-exponential factors ranging from 2.19 production was variable depending on the multiplied by 108-7.73 multiplied by 1019 min-1. assessment method. When expressed on a unit Overall xylose yields for pure biomass species area basis, energy yield decreased. Biofuel ranged from approximately 66-88% with balsam conversion systems may determine harvest having the lowest yield and switchgrass timing. For direct combustion, the reduced producing the highest yield. copy 2008 mineral concentrations in spring-harvested American Institute of Chemical Engineers. biomass are desirable. For ethanol fermentation and gasification systems, however, Hydrocracking – [VGO] Bezergianni, S., A. lignocellulose yield may be more important. On Kalogianni, et al. (2009). "Hydrocracking of vacuum gas oilvegetable oil mixtures for conservations lands, the wildlife cover provided biofuels production." Bioresource by switchgrass over the winter may increase the Technology 100(12): 3036- 3042. desirability of spring harvest along with the Hydrocracking of vacuum gas oil (VGO) - higher biofuel quality. copy American Society of vegetable oil mixtures is a prominent process for Agronomy. the production of biofuels. In this work both pre- hydrotreated and non-hydrotreated VGO are Hemicellulose Hydrolysis Jensen, J., J. Morinelly, et al. (2008). "Kinetic assessed whether they are suitable fossil characterization of biomass dilute sulphuric components in a VGO-vegetable oil mixture as acid hydrolysis: Mixtures of hardwoods, feed-stocks to a hydrocracking process. This softwood, and switchgrass." AICHE Journal assessment indicates the necessity of a VGO 54(6): 1637-1645. pre-hydrotreated step prior to hydrocracking the The effects of woody biomass mixtures were VGO-vegetable oil mixture. Moreover, the investigated on the rates of hemicellulose comparison of two different mixing ratios hydrolysis by dilute acid. Very good agreement suggests that higher vegetable oil content favors between the model predictions and single hydrocracking product yields and qualities. species acid hydrolysis data confirmed the Three commercial catalysts of different activity validity of a pseudo first-order model approach. are utilized in order to identify a range of This model was then utilized to predict monomer products that can be produced via a

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hydrocracking route. Finally, the effect of stability may lead to increased performance of temperature on hydrocracking VGO-vegetable the process. oil mixtures is studied in terms of conversion and selectivity to diesel, jet/kerosene and Hydrothermolysis Suryawati, L., M. R. naphtha. Wilkins, et al. Effect of hydrothermolysis on ethanol yield from Alamo switchgrass using Hydrogen Production – Sulfur Deprived Algal a thermotolerant yeast. 2007 ASABE Annual Cultures Jorquera, O., A. Kiperstok, et al. International Meeting, Technical Papers 2007 (2008). "S-systems sensitivity analysis of the ASABE Annual International Meeting, factors that may influence hydrogen Technical Papers. v 15 BOOK 2007. 13p production by sulfur-deprived 077071. Chlamydomonas reinhardtii." International Switchgrass is a perennial grass that has Journal of Hydrogen Energy 33(9): 2167- potential as a feedstock for ethanol production. 2177. Using switchgrass for ethanol production would We built a metabolic map of the hydrogen reduce dependence on food crops, such as production process by the microalga corn, that are currently used for fuel ethanol. Hot Chlamydomonas reinhardtii, mathematically compressed liquid water was used to treat modeled this map in the S-systems formalism, Alamo switchgrass in a method called then analyzed the effect of variations in the hydrothermolysis to disrupt lignin, dissolve value of different model parameters on the hemicellulose, and increase accessibility of overall response of the system. The cellulose to hydrolysis enzymes. mathematical model exhibited behavior similar Hydrothermolysis was selected instead of other to that described in literature for photosynthetic common methods to minimize formation of algal hydrogen production by sulfur-deprived inhibitors, chemical use, and corrosion of algal cultures. This behavior consists of an initial process equipment. Three temperatures (190, phase during which oxygen is transiently 200, and 210 degree C) and hold times (10, 15, generated and then consumed, followed by an and 20 min) were used to pretreat Alamo anaerobic phase that is characterized by switchgrass at 10% solids to prepare it for SSF generation of hydrogen. Our analysis of the (Simultaneous saccharification and effect of independent variables on the hydrogen fermentation). Prehydrolyzate from switchgrass production process mostly agrees with previous treated at 190 degree C for 10 min had the work left bracket Horner J, Wolinsky M. A greatest xylan recovery in the hydrolyzate. From power-law sensitivity analysis of the hydrogen- all treatment conditions, less than 0.65 g/L producing metabolic pathway in glucose were released into the prehydrolyzate, Chlamydomonas reinhardtii. Int J Hydrogen indicating most glucose was retained as Energy 2002;27: 1251-1255 right bracket . cellulose in the solid substrate. HMF (5- Moreover, a more detailed study of the effects of hydroxymethylfurfural) and furfural formation in parameter modification (rate constants and the prehydrolyzate were found to be less than 1 kinetic order) indicated that genetic engineering g/L for all treatments. The highest theoretical of the hydrogenase expression, activity and yield of ethanol (82%, 18.6 g/L) was produced

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from switchgrass pretreated at 200 degree C to micromolar nickel concentrations at reduced and 10 min using SSF at 45 degree C with light intensity after a delay which minimizes thermotolerant yeast Kluyveromyces marxianus chlorophyll degradation and restores normal IMB 4 and 15 FPU cellulase/g glucan loading. growth rate. Nickel adaptation permits normal The glucan loading for SSF was 40 g/L. biomass accumulation while significantly increasing the rate of fermentative hydrogen Hydrogenase Carrieri, D., G. Ananyev, et al. production. Relative to nickel-free media (only (2008). "Renewable hydrogen production by extraneous Ni2 +), the average hydrogenase cyanobacteria: Nickel requirements for activity in cell extracts (in vitro) increases by 18- optimal hydrogenase activity." International fold, while the average rate of intracellular H2 Journal of Hydrogen Energy 33(8): 2014- production within intact cells increases 6-fold. 2022. Nickel is inferred to be a limiting cofactor for hydrogenase activity in many cyanobacteria Some species of cyanobacteria naturally grown using photoautotrophic conditions, produce hydrogen gas as a byproduct of particularly those lacking a high-affinity Ni2 + anaerobic fermentation at night using fixed- transport system. copy 2008 International carbon compounds that are produced Association for Hydrogen Energy. photosynthetically in daylight under aerobic conditions. The nutrient requirements for optimal Laboratory Fire Suspension Testing activity of these two systems of metabolic Capablo, J. n., P. A. Jensen, et al. "Ash energy production are different and in some Properties of Alternative Biomass." Energy & cases incompatible. Resolving these conflicting Fuels 0(0). The ash behavior during suspension firing of 12 needs has not been widely considered, yet is critical for application of cyanobacteria as alternative solid biofuels, such as pectin waste, mash from a beer brewery, or waste from efficient cell factories for hydrogen production. cigarette production have been studied and The filamentous nondiazotrophic cyanobacterium Arthrospira maxima ferments in compared to wood and straw ash behavior. Laboratory suspension firing tests were the dark both intracellular fixed-carbon performed on an entrained flow reactor and a compounds and added glucose, producing hydrogen exclusively via a bidirectional NiFe swirl burner test rig, with special emphasis on the formation of fly ash and ash deposit. hydrogenase. We show that the hydrogenase Thermodynamic equilibrium calculations were activity in cell extracts (in vitro) and whole cells (in vivo) correlates with the amount of Ni2 + in performed to support the interpretation of the experiments. To generalize the results of the the growth medium (saturating activity at 1.5 mu combustion tests, the fuels are classified MNi2 + ). This and higher levels of nickel in the medium during photoautotrophic growth cause according to fuel ash analysis into three main groups depending upon their ash content of stress leading to chlorophyll degradation and a silica, alkali metal, and calcium and magnesium. retarded growth rate that is severe at ambient solar flux. We show that A. maxima acclimates To further detail the biomass classification, the relative molar ratio of Cl, S, and P to alkali were

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included. The study has led to knowledge on ratio of peak load to the cutting plane area biomass fuel ash composition influence on ash (MPa) represented by the knife grid. Cutting transformation, ash deposit flux, and deposit energies were evaluated from the area under chlorine content when biomass fuels are applied loaddisplacement curves and expressed in for suspension combustion. moisture free basis mass-based energy (MJ/dry Mg) and new surface area-based energy (kJ/m Linear Knife Grid Device for Biomass 2). Overall results indicated that ultimate cutting Igathinathane, C., A. R. Womac, et al. Size stress and cutting energy of com stalks were reduction of wet and dry biomass by linear significantly (P less than 0.05) greater (2.2 knife grid device. 2007 ASABE Annual International Meeting, Technical Papers 2007 times) than that of switchgrass. Highmoisture ASABE Annual International Meeting, material required significantly greater stress and Technical Papers. v 11 BOOK 2007. 15p energy (1.3 times) than low-moisture material. 076045. Grid spacing produced significant difference in Linear action of forcing biomass materials cutting energy but not with ultimate cutting through a grid of interlocking knives is an stress. Energy values required in size reduction alternative method of size reduction, contrast to using linear knife grid device was much smaller rotary action involved in existing size reduction than that reported for similar biomass using machines. A laboratory-scale linear action knife other methods of size reduction. Therefore, a grid device prototype developed earlier was preprocessing machine, based on linear knife used to determine the size reduction grid principle, with 50 to 100 mm and greater characteristics of selected biomass, namely, grid spacing would be an efficient first stage size corn stalks and switchgrass at several material reduction for biomass materials. and operating conditions. This study was aimed at determining and comparing the ultimate Igathinathane, C., A. R. Womac, et al. (2008). cutting stresses and cutting energy variation "Knife grid size reduction to pre-process packed beds of high- and low-moisture between corn stalks and switchgrass, moisture switchgrass." Bioresource Technology 99(7): conditions (high- and low-moisture), knife grid 2254-2264. spacing (25.4, 50.8, and 101.6 mm), and packed A linear knife grid device was developed for first- bed depth (50.8, 101.6, and 152.4 mm). The stage size reduction of high- and low-moisture device is composed of ram- attached to switchgrass (Panicum virgatum L.), a tough, crosshead of universal testing machine (UTM), fibrous perennial grass being considered as a feed block - holds feed, knife grid - arranged at feedstock for bioenergy. The size reduction is by variable grid spacing, knife holder block - holds a shearing action accomplished by forcing a knife grid, and product block - collects product, thick packed bed of biomass against a grid of and the whole assembly is tested in UTM fitted sharp knives. The system is used commercially with 222.41 kN (5000 lb) load cell. New surface for slicing forages for drying or feed mixing. No area generated during size reduction was performance data or engineering equations are evaluated based on circle packing theory. available in published literature to optimize the Ultimate cutting stresses were evaluated as the machine and the process for biomass size

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reductions. Tests of a linear knife grid with aid the engineering design of size reduction switchgrass quantified the combined effect of equipment for commercial facilities. copy 2007. shearing stresses, packed bed consolidation, and frictional resistance to flow through a knife Microwave Boldor, D., S. Balasubramanian, grid. A universal test machine (UTM) measured et al. (2008). "Design and implementation of a continuous microwave heating system for load-displacement of switchgrass at two ballast water treatment." Environmental moisture contents: 51%, and 9% wet basis; Science & Technology 42(11): 4121-4127. three knife grid spacings: 25.4, 50.8, and 101.6 A continuous microwave system to treat ballast mm; and three packed bed depths: 50.8, 101.6, water inoculated with different invasive species and 152.4 mm. Results showed that peak load, was designed and installed at the Louisiana ultimate shear stress, and cutting energy values State University Agricultural Center. The varied inversely with knife grid spacing and effectiveness of the system to deliver the directly with packed bed depth (except ultimate required heating loads to inactivate the shear stress). Mean ultimate shear stresses of organisms present was studied. The targeted high- and low-moisture switchgrass were 0.68 organisms were microalgae (Nannochloropsis plus or minus 0.24, and 0.41 plus or minus 0.21 oculata), zooplankton at two different growth MPa, mass-based cutting energy values were stages (newly hatched brine shrimp-Artemia 4.50 plus or minus 4.43, and 3.64 plus or minus nauplii and adult Artemia), and oyster larvae 3.31 MJ/dry Mg, and cutting energy based on (Crassosstrea virginica). The system was tested new surface area, calculated from packed-circle at two different flow rates (1 and 2 liters per min) theory, were 4.12 plus or minus 2.06, and 2.53 and power levels (2.5 and 4.5 kW). Temperature plus or minus 0.45 kJ/m2, respectively. The profiles indicate that, depending on the species differences between high- and low-moisture present and the growth stage, the maximum switchgrass were significant (P less than 0.05), temperature increase will vary from 11.8 to 64.9 such that high-moisture switchgrass required degree C. The continuous microwave heating increased shear stress and cutting energy. system delivered uniform and near- Reduced knife grid spacing and increased instantaneous heating at the outlet, proving its packed bed depths required increased cutting effectiveness. The power absorbed and power energy. Overall, knife grid cutting energy was efficiency varied for the species present. More much less than energy values published for than 80% power utilization efficiency was rotary equipment. A minimum knife grid spacing obtained at all flow rate and microwave power of 25.4 mm appears to be a practical lower limit, combinations for microalgae, Artemia nauplii considering the high ram force that would be and adults. Test results indicated that needed for commercial operation. However, microwave treatment can be an effective tool for knife grid spacing from 50 to 100 mm and ballast water treatment, and current high greater may offer an efficient first-stage size treatment costs notwithstanding, this technique reduction, especially well suited for packaged can be added as supplemental technology to the (baled) biomass. Results of this research should palette of existing treatment methods. copy 2008 American Chemical Society.

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Hu, Z., Y. Wang, et al. (2008). "Alkali (NaOH) Nanobiocatalysis Kim, J., J. W. Grate, et al. pretreatment of switchgrass by radio (2008). "Nanobiocatalysis and its potential frequency-based dielectric heating." Applied applications." Trends in Biotechnology Biochemistry & Biotechnology 148(1-3): 71- 26(11): 639-646. 81. Nanobiocatalysis, in which enzymes are Radio-frequency (RF)-based dielectric heating incorporated into nanostructured materials, has was used in the alkali (NaOH) pretreatment of emerged as a rapidly growing area. switchgrass to enhance its enzymatic Nanostructures, including nanoporous media, digestibility. Due to the unique features of RF nanofibers, carbon nanotubes and heating (i.e., volumetric heat transfer, deep heat nanoparticles, have manifested great efficiency penetration of the samples, etc.), switchgrass in the manipulation of the nanoscale could be treated on a large scale, high solid environment of the enzyme and thus promise content, and uniform temperature profile. At exciting advances in many areas of enzyme 20% solid content, RFassisted alkali technology. This review will describe these pretreatment (at 0.1 g NaOH/g biomass loading recent developments in nanobiocatalysis and and 90 degree C) resulted in a higher xylose their potential applications in various fields, such yield than the conventional heating as trypsin digestion in proteomic analysis, pretreatment. The enzymatic hydrolysis of RF- antifouling, and biofuel cells. treated solids led to a higher glucose yield than the corresponding value obtained from Photo-bioreactor Ai, W., S. Guo, et al. (2008). conventional heating treatment. When the solid "Development of a ground-based space content exceeded 25%, conventional heating micro-algae photobioreactor." Advances in Space Research 41(5): 742-747. could not handle this highsolid sample due to The purpose of the research is to develop a the loss of fluidity, poor mixing, and heating photo-bioreactor which may produce algae transfer of the samples. As a result, there was a protein and oxygen for future astronauts in significantly lower sugar yield, but the sugar comparatively long-term exploration, and yield of the RF-based pretreatment process was remove carbon dioxide in a controlled ecological still maintained at high levels. Furthermore, the life support system. Based on technical optimal particle size and alkali loading in the RF parameters and performance requirements, the pre-treatment was determined as 0.25-0.50 mm project planning, design drafting, and and 0.25 g NaOH/g biomass, respectively. At manufacture were conducted. Finally, a alkali loading of 0.20-0.25 g NaOH/g biomass, demonstration test for producing algae was heating temperature of 90oC, and solid content done. Its productivity for micro-algae and of 20%, the glucose, xylose, and total sugar performance of the photo-bioreactor were yield from the combined RF pretreatment and evaluated. The facility has nine subsystems, the enzymatic hydrolysis were 25.3, 21.2, and including the reactor, the illuminating unit, the 46.5 g/g biomass, respectively. copy 2007 carbon dioxide (CO2) production unit and Humana Press Inc. oxygen (O2) generation unit, etc. The demonstration results showed that the facility

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worked well, and the parameters, such as Panti, L., P. Chavez, et al. A solar energy consumption, volume, and productivity photobioreactor for the production of for algae, met with the design requirement. The biohydrogen from microalgae. Proceedings of SPIE - The International Society for density of algae in the photo-bioreactor Optical Engineering Solar Hydrogen and increased from 0.174 g (dry weight) L-1 to 4.064 Nanotechnology II. v 6650 2007. g (dry weight) L-1 after 7 days growth. The The green microalga Chlamydomonas principle of providing CO2 in the photo- reinhardtii is proposed to produce hydrogen in a bioreactor for algae and removing O2 from the low-cost system using the solar radiation in culture medium was suitable for the demand of Yucatan, Mexico. A two-step process is space conditions. The facility has reasonable necessary with a closed photobioreactor, in technical indices, and smooth and dependable which the algae are firstly growth and then performances. Copy 2007 COSPAR. induced for hydrogen generation. Preliminary results are presented in this work with some Meireles, L. A., A. C. Guedes, et al. (2008). planning for the future. Different culture broths, "On-line control of light intensity in a microalgal bioreactor using a novel temperatures and light intensities were tested automatic system." Enzyme & Microbial for biomass and hydrogen production in Technology 42(7): 554-559. laboratory conditions. The first experiments in The influence of light intensity upon biomass external conditions with solar radiation and and fatty acid productivity by the microalga without temperature control have been Pavlova lutheri was experimentally studied using performed, showing the potential of this a novel device. This device was designed to technique at larger scales. However, some automatically adjust light intensity in a additional work must be done in order to photobioreactor: it takes on-line measurements optimize the culture maintenance, particularly in of biomass concentration, and was successfully relation with the temperature control, the light tested to implement a feedback control of light radiation and the carbon dioxide supply, with the based on the growth rate variation. Using said idea of keeping an economic production. device, batch and semicontinuous cultures of P. lutheri were maintained at maximum growth Skjanes, K., G. Knutsen, et al. (2008). "H2 rates and biomass productivities – hence production from marine and freshwater species of green algae during sulfur avoiding photoinhibition, and consequent waste deprivation and considerations for of radiant energy. Several cultures were run with bioreactor design." International Journal of said device, and their performances were Hydrogen Energy 33(2): 511-521. compared with those of control cultures Twenty-one species of green algae isolated submitted to constant light intensity; the biomass from marine, freshwater and terrestrial levels attained, as well as the yields of environments were screened for the ability to eicosapentaenoic and docosahexaenoic acids produce H2 under anaerobic conditions. Seven were calculated - and were consistently higher strains found positive for H2 production under than those of their uncontrolled counterpart. anaerobic conditions were also screened for the copy 2008 Elsevier Inc. All rights reserved. ability to produce H2 under sulfur (S)

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deprivation. In addition to the traditional model photobioreactor concept and assesses the species Chlamydomonas reinhardtii, C. economic viability of such technology given the noctigama (freshwater) and C. euryale (brackish current crude oil prospects. The majority of the water) were able to produce significant amounts data necessary for assessment are obtained of H2 under S-deprivation. These species were from published articles, with experimental also able to utilize acetate as a substrate for results providing the remaining necessary growth in light. The S-deprivation experiments information. Analysis results indicate that the were performed under photoheterotrophic photobioreactor would need to be constructed conditions in a purpose-specific designed and operate on the order of dollars per square bioreactor, and it was shown that an automated foot per year. Copyright copy 2007 by ASME. pH adjustment feature was essential to maintain a stable pH in the cultures. Several materials Photovoltaic Cells Gust, D., D. Kramer, et al. commonly used in bioreactors, such as rubber (2008). "Engineered and artificial photosynthesis: Human ingenuity enters the materials, plastics and steel alloys, had a game." MRS Bulletin 33(4): 383-387. negative effect on the survival of S deprived The process of engineered and artificial algae cultures. Unexpectedly, traces of H2 were photosynthesis activities are increasingly produced under Sdeprivation during O2 influenced by human related factors. Humans saturation in the cultures, possibly derived from have created direct ways for harnessing solar local anaerobic environments formed in algal energy, such as photovoltaic (PV) cells, which biofilms on the membranes covering the O2 produce energy in the form of electromotive electrodes. copy 2007 International Association force (emf, electricity). They are making for Hydrogen Energy. transformation progress with an aim to supplant Zemke, P. E., B. D. Wood, et al. (2007). fossil fuels to offer energy security and reduction Economic analysis of a vertical sheet algal in climate change can be performed at the photobioreactor for biodiesel production. intersection of technology and biology. Energy Proceedings of the Energy Sustainability conversion efficiency (ECE), which is a Conference 2007 Proceedings of the Energy fundamental parameter to determine the area Sustainability Conference 2007. needed to offer a specified amount of energy for The combination of a 100% increase in diesel human use, should be calculated using fuel prices since 2002 and a new insolation (incident solar energy) per year photobioreactor technology has renewed summed over diurnal and seasonal cycles. interest in producing biodiesel, a direct Some algae and cyanobacteria, which possess petroleum diesel fuel substitute, from significantly higher ECEs than terrestrial plants, microalgae. A new photobioreactor technology can also be used to achieve far better ECE by in which the microalgae are grown on vertically clustering them for biofuel production than by suspended membranes promises to increase growing terrestrial plants. algal productivity per acre ten-fold compared to microalgae ponds, and 400-fold compared to Sorption of Hexalent Chromium Basha, S., Z. soybeans. This paper describes the general V. P. Murthy, et al. (2008). "Biosorption of

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hexavalent chromium by chemically Bio-fuels are liquid or gaseous fuels made from modified seaweed, Cystoseira indica." plant matter and residues, such as agricultural Chemical Engineering Journal 137(3): 480- crops, municipal wastes and agricultural and 488. forestry by-products. Liquid bio-fuels being The sorption of hexavalent chromium by marine considered world over fall into the following brown algae Cystoseira indica, which was categories: (a) vegetable oils and biodiesels; (b) chemically-modified by cross-linking with alcohols; and (c) biocrude and synthetic oils. epichlorohydrin (CB1, CB2), or oxidized by Bioethanol can be produced from cellulose potassium permanganate (CB3), or only washed feedstocks such as corn stalks, rice straw, sugar by distilled water (RB) was studied with variation cane bagasse, pulpwood, switchgrass, and in the parameters of contact time, pH, initial municipal solid waste. Conversion technologies metal ion concentration and solid/liquid ratio. for producing bioethanol from cellulosic biomass They were used for equilibrium sorption uptake resources such as forest materials, agricultural studies with Cr(VI). The results indicate that residues and urban wastes are under biosorption equilibriums were rapidly established development and have not yet been in about 2 h. The Cr(VI) adsorption was strictly demonstrated commercially. Biodiesel fuel can pH dependent, and maximum removal of Cr(VI) be made from new or used vegetable oils and on biosorbents were observed at pH 3.0. The animal fats, which are non-toxic, biodegradable, maximum Chromium uptakes were 22.7, 24.2, renewable resources.The problems with 20.1 and 17.8 mg g-1, respectively, for CB1, substituting triglycerides for diesel fuels are CB2, CB3 and RB. The order of maximum mostly associated with their high viscosities, low Cr(VI) uptakes for various biomasses was CB2 volatilities and polyunsaturated character. greater than CB1 greater than CB3 greater than Different ways have been considered to reduce RB. A comparison of different isotherm models the high viscosity of vegetable oils. revealed that the Dubinin- Radushkevich (D-R) isotherm model fitted the experimental data best Khelfa, A., V. Sharypov, et al. (2009). based on R2, qmax and standard error (S.E.) "Catalytic pyrolysis and gasification of values and the mean energy of the sorption Miscanthus Giganteus: Haematite (Fe2O3) a values indicated that biosorption of Cr(VI) by C. versatile catalyst." Journal of Analytical and indica may be an ion exchange reaction. copy Applied Pyrolysis 84(1): 84-88. 2007 Elsevier B.V. All rights reserved. The present work describes the catalytic steam gasification and pyrolysis of Miscanthus × Thermochemical Balat, M. (2008). "Global Giganteus pellets. Alone or in combination, trends on the processing of bio-fuels." pyrolysis and gasification catalytic processes International Journal of Green Energy 5(3): lead nowadays to promising methods for the 212-238. production of energy and chemicals from The aim of the present paper is to investigate various biomass. In our best conditions, bio-fuels produced from biomass materials by thermochemical and biochemical methods and steam gasification at 850 °C in the presence of 3 the utilization trends of the products in the world. wt.% h aematite, leads to 94.8 wt.% of gases

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and 5.2 wt.% liquids in 20 min. The gases nitrogen containing compounds. High char composition (vol%) was: H2--45.7, CO--34.1, yields are produced. copy 2007 Elsevier Ltd. All CO2--14.7, CH4--4.2 and others--1.3. In the rights reserved. presence of steam, haematite an iron oxide used as catalyst is active in the gasification and Thermochemical – Pyrolysis Balat, M. (2008). hydrogen production, is able to breakdown the "Mechanisms of thermochemical biomass conversion processes. Part 1: Reactions of tar produced during the thermal degradation of pyrolysis." Energy Sources Part A-Recovery the biomass and leads to the partial oxidation of Utilization & Environmental Effects 30(7): phenols. The influence of catalyst in pyrolysis is 620-635. limited and only a decrease in liquids yields is The present work is a study on the pyrolysis observed. mechanisms of biomass structural constituents. Biomass resources include wood and wood Ross, A. B., J. M. Jones, et al. (2008). wastes, agricultural crops and their waste "Classification of macroalgae as fuel and its thermochemical behaviour." Bioresource byproducts, municipal solid waste, animal Technology 99(14): 6494-6504. wastes, waste from food processing, and A preliminary classification of five macroalgae aquatic plants and algae. The major organic from the British Isles; Fucus vesiculosus, components of biomass can be classified as Chorda filum, Laminaria digitata, Fucus cellulose, hemicelluloses, and lignin. The serratus, Laminaria hyperborea, and pyrolysis is thermal degradation of biomass by Macrocystis pyrifera from South America, has heat in the absence of oxygen, which results in been presented in terms of a Van Krevelen the production of charcoal (solid), bio-oil (liquid), diagram. The macroalgae have been and fuel gas products. Thermal degradation of characterised for proximate and ultimate cellulose proceeds through two types of analysis, inorganic content, and calorific value. reaction: a gradual degradation, decomposition, The different options for thermal conversion and and charring on heating at lower temperatures; behaviour under combustion and pyrolysis have and a rapid volatilization accompanied by the been evaluated and compared to several types formation of levoglucosan on pyrolysis at higher of terrestrial biomass including Miscanthus, temperatures. The hemicelluloses reacted more short rotation Willow coppice and Oat straw. readily than cellulose during heating. Of the Thermal treatment of the macroalgae has been hemicelluloses, xylan is the least thermally investigated using thermogravimetry (TGA) and stable, because pentosans are most susceptible pyrolysis-gc-ms. Combustion behaviour is to hydrolysis and dehydration reactions. investigated using TGA in an oxidising Dehydration reactions around 473 K are atmosphere. The suitability of macroalgae for primarily responsible for thermal degradation of the different thermal processing routes is lignin. Between 423 K and 573 K, cleavage of discussed. Ash chemistry restricts the use of alpha- and -betaaryl-alkyl-ether linkages occurs. macroalgae for direct combustion and Around 573 K, aliphatic side chains start splitting gasification. Pyrolysis produces a range of off from the aromatic ring. pentosans and a significant proportion of

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Boateng, A. A. (2005). Pyrolysis of alfalfa comparison of the various conversion routes stems and dedicated herbaceous energy identified under the initiative. crops in the national biomass initiative program. 2005 AIChE Spring National Boateng, A. A. (2007). "Characterization and Meeting, Conference Proceedings 2005 thermal conversion of charcoal derived from AIChE Spring National Meeting, Conference fluidized-bed fast pyrolysis oil production of Proceedings. switchgrass." Industrial & Engineering In order to tackle the challenges of developing a Chemistry Research 46(26): 8857-8862. biobased industry in the U.S., the 2000 biomass The charcoal coproduct associated with research and development act directs the US- pyrolysis oil (bio-oil) production can add DOE and USDA to integrate technology R&D economic value to the process operation if it can programs through the Biomass Initiative. Current be successfully employed as an activated conversion technologies under the initiative are biochar for soil amendment applications or can based on the sugar and the thermochemical be used as a combustion fuel to power the platform technologies. Between these two pyrolysis process or as a gasifier feedstock. platforms thermochemical conversion shows Although proposed, none of these have been nearer-time promise towards developing extensively studied. In this submission, the integrated bio-refineries in the US. Pyrolysis is surfaces and interfaces of the charcoal one process under this platform that has gained produced from making pyrolysis oil from attention because it can be used to produce switchgrass in a fluidized bed were pyrolytic oil intermediates that can be characterized to establish its usefulness as an subsequently refined to form valuable chemicals adsorbent material. Its reactivity in air and in and energy carriers such as hydrogen. The role CO2 were also determined to establish its which the choice of biomass plays in achieving potential as combustion fuel or gasification economic competitiveness compared with fossil feedstock. It was found that the surface areas fuel conversion is well documented and hence were low, typically 7.7 and 7.9 m2/g, 2 orders of research emphasis has been placed on magnitude of the areas encountered in activated dedicated energy crops. In this submission, the charcoal. Compounding this was high surface results of the pyrolysis of alfalfa stems and crystallinity of the structure as measured by X- certain herbaceous crops specifically, ray diffraction, thereby suggesting poor switchgrass and reed canary grass, which are characteristics as a sorption agent without identified under the biomass initiative program further activation. However, this does not as dedicated energy crops, are presented. The preclude its use for other soil applications pyrolysis was carried out in a PY-GC/MS system including carbon storage and as a nutrient to determine the effect of temperature and crop delivery substrate. Upon further pyrolysis in maturity on gas yield. The results show distinct helium, the charcoal yielded equal amounts of yield patterns and differences between the CO and CO2, exhibiting reaction kinetics similar alfalfa and the herbaceous forages. The to that of coal pyrolysis. Furthermore, reactivity information is useful for the evaluation and in CO2 and in air atmosphere resulted in activation energies of 8 411 and 11 487 J/mol,

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respectively. It appears that the charcoal could bond oxygen functionalities including C-C bonds be better used as combustion fuel or gasification thereafter. At less than 750 degree C, there feedstock than as an activated charcoal applied were modest increases in condensable gas yield for metal sorption for the fact that the latter and decrease in non-condensable gas due to application will require higher surface and differences in plant maturity at harvest. interfacial areas than measured. However, the effect of switchgrass physiological maturity on gas yield was statistically Boateng, A. A., K. B. Hicks, et al. (2006). insignificant at high temperatures. The energy "Pyrolysis of switchgrass (Panicum content of the noncondensable gas measured virgatum) harvested at several stages of was about 68% of the gross energy content of maturity." Journal of Analytical & Applied Pyrolysis 75(2): 55-64. the biomass for the early harvest crop and 80% The pyrolysis of switchgrass (Panicum virgatum) for the mature crop. The activation energy for of the cultivar, "Cave-in-Rock" harvested at the decomposition, estimated assuming first three stages of physiological maturity was order reaction kinetics, showed a linear increase studied in a PY-GC/MS system at the 600-1050 with plant physiological maturity. The results degree C temperature range. Under these demonstrate that physiological maturity at conditions, the decomposition was complete harvest of switchgrass biomass can result in within 20 s yielding char, and two sets of different concentrations of pyrolysis products at pyrolysis gas, condensable and non- different temperatures. These results also condensable. The former consisted of demonstrate the need for additional research acetaldehyde (CH3CHO), acetic acid with a broader array of herbaceous biomass (CH3COOH) and higher molecular weight materials to develop a better understanding of compounds possibly from the hydroxyl group the synergies of crop cultivation, harvesting and and from the methoxy groups of the cell wall processing of dedicated herbaceous biomass components. The non-condensable gases were energy crops during their thermochemical mainly CO, CO2 and C1-C3 hydrocarbons. For conversion. copy 2005 Elsevier B.V. All rights these, there was a 900 degree C temperature reserved. boundary where dramatic change occurred in Ji, L., L.-X. Zhang, et al. (2007). "Review on their evolution rates. Below this temperature, the progress of producing bio-fuel from CO2 decreased but CO and the C1-C3 microalgae." Shiyou Xuebao, Shiyou hydrocarbons increased almost linearly with Huagong/Acta Petrolei Sinica (Petroleum temperature. Above this temperature boundary, Processing Section) 23(6): 1-5. the hydrocarbons leveled off but there was a The sustainable and steady development of bio- rapid rise in CO and CO2 evolution at a constant fuels, including biodiesel and bio-oils, must CO/CO2 ratio. These suggest the appearance of secure stable and high quality raw materials, secondary or tertiary pyrolysis reactions while microalgae is one of them. In this paper, involving rearrangement and release of CO and the concept of microalgae was introduced and hydrocarbons prior to this temperature boundary the research and development about the and the release of CO and CO2 from the tightly production of biodiesel and bio-oils in the world

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were reviewed. The emphasis was put on the (DAEM) for biomass pyrolysis, based on a progress on the synthesis of microalgae by functional group analysis, which still does not genetic engineering, new reactor and coupling include the devolatilization, crosslinking process, as well as the production of bio-oil from competitive reactions. The predicted evaluation pyrolysis of microalgae and direct usage of data from this model were found to generally microalgae as fuel. Finally, the advantages and agree with that from TG-FTIR analysis. problems in making bio-fuel from microalgae However, the model still demands improvement were discussed. to accommodate secondary and cross-linking competitive reactions. copy 2007 American Tsamba, A. J., W. Yang, et al. (2007). Chemical Society. "Cashew nut shells pyrolysis: Individual gas evolution rates and yields." Energy & Fuels Yorgun, S. and Y. E. Simsek (2008). 21(4): 2357-2362. "Catalytic pyrolysis of Miscanthus multiplied Cashew nut shells are one type of the most by giganteus over activated alumina." abundant biomass tropical wastes, which can be Bioresource Technology 99(17): 8095-8100. used for energy generation. However, there is The catalytic effects of activated alumina lack of data for the thermal conversion process (Al2O3) on the pyrolysis of Miscanthus of cashew nut shells such as pyrolysis individual multiplied by giganteus, a new energy crop, gas products, yields, and reaction kinetics. In were investigated. Catalytic pyrolysis this research work, the pyrolysis processes of experiments carried out under static and cashew nut shells at low heating rates (10, 30, nitrogen atmospheres were performed in a and 100 K/min) were studied. fixed-bed reactor. The final pyrolysis Thermogravimetric analyzer coupled with a temperature was kept constant at 550 degree C Fourier transform infrared spectrometer (TG- in all of the experiments. The effect of catalyst FTIR) was used. The pyrolysis product yields loading (by weight of feedstock as 10%, 20%, obtained were compared with the available data 40%, 60%, 80% and 100%), heating rate (10 in the literature for wood and Miscanthus degree C and 50 degree C min-1), nitrogen flow Giganteus. It was found that cashew nut shells rate (50, 100, 150 and 200 cm3 min-1) on the have tars and volatiles at levels equivalent to pyrolysis conversion and product yields were those of wood pellets, both above the tar and investigated. The results were compared with volatile content of M. Giganteus. Further, kinetic those obtained in non-catalytic pyrolysis. parameters were obtained from the TG-FTIR Activated alumina catalyst has a strong results using an approach based on parallel influence on the Miscanthus multiplied by independent first-order reactions with a giganteus pyrolysis product and conversion Gaussian distribution of activation energies and yield. Furthermore, the catalytic bio-oils obtained following the Tmax method. The data obtained from catalytic pyrolysis under static and nitrogen through this approach included the identification, atmospheres were examined using elemental kinetics, and yield of each gas product analysis, column chromatography, Fourier precursor. These results are then used as input transform infrared (FTIR) and nuclear magnetic files for a distributed activation energy model

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resonance (1H NMR) spectroscopy methods. yielding useful parameters for future economic copy 2008 Elsevier Ltd. All rights reserved. and design studies. copy 2007 American Chemical Society. Thermochemical – Pyrolysis – Fast Boateng, A. A., D. E. Daugaard, et al. (2007). "Bench- Bridgeman, T. G., L. I. Darvell, et al. (2007). scale fluidized-bed pyrolysis of switchgrass "Influence of particle size on the analytical for bio-oil production." Industrial & and chemical properties of two energy Engineering Chemistry Research 46(7): 1891- crops." Fuel 86(1-2): 60-72. 1897. Two energy crops (switchgrass and reed canary The U.S. biomass initiative is counting on grass) have been processed using ball mills and lignocellulosic conversion to boost the quantities divided into two size fractions ( less than 90 of biofuels currently produced from starches in mum and 90-600 mum) and analysed using an order to achieve much needed energy security array of analytical techniques including in the future. However, with current challenges proximate and ultimate analysis, metal analysis, in fermentation of lignocellulosic material to calorific value determination, and plant ethanol, other methods of converting biomass to component analysis (cellulose, lignin and usable energy have received consideration hemicellulose contents). The results indicate nationally. One thermochemical technique, fast that smaller particles of the two grasses have a pyrolysis, is being considered by the Agricultural significantly higher concentration of inorganic Research Service (ARS) researchers of the matter and moisture content than larger USDA for processing energy crops such as particles. In contrast the larger size fractions had switchgrass and other agricultural residues, e.g., a higher carbon content, and lower nitrogen barley hulls and alfalfa stems for bio-oil content, with a resulting higher calorific value. (pyrolysis oil or pyrolysis liquids) production. A The volatile content was also higher in the larger 2.5 kg/h biomass fast pyrolyzer has been size fraction. The composition of the organic developed at ARS and tested for switchgrass content varied between the two size fractions, conversion. The unit has provided useful data most noticeable was the difference in cellulose such as energy requirements and product yields concentration which was approximately 50% that can be used as design parameters for higher in the greater than 90 mum sample. Two larger systems based on the processing of laboratory scale techniques, thermogravimetric perennial energy crops. Bio-oil yields greater analysis (TGA) and pyrolysis-GC-MS (py-GC- than 60% by mass have been demonstrated for MS), were used to study the significance of switchgrass, with energy conversion efficiencies these differences in thermal conversion. In py- ranging from 52 to 81%. The results show that GC-MS of reed canary grass, and switchgrass char yielded would suffice in providing all the to a lesser extent, the amounts of cellulose and energy required for the endothermic pyrolysis lignin decomposition products were higher for reaction process. The composition of the the larger particle size fraction. The differences noncondensable gas produced has been initially in cellulose contents were also apparent from characterized. Initial mass and energy balances the TGA studies, where different mass losses have been calculated based on this system, were seen in the cellulose decomposition region

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of the two size fractions. From the results of sewage sludge and leather wastes, have also these two techniques it was concluded that the been studied. In this review, the main (although differences in ash, and therefore catalytic metal not exclusive) emphasis has been given to contents, between the two size fractions, wood. The literature on wood/biomass pyrolysis, resulted in lower pyrolysis temperatures, lower both fast and slow, is surveyed and both the char combustion temperatures, and higher physical and chemical aspects of the resulting yields of catalytic pyrolysis decomposition bio-oils are reviewed. The effect of the wood products for the smaller size fractions. The composition and structure, heating rate, and implications of the results are discussed in terms residence time during pyrolysis on the overall of the bio-oil quality in fast pyrolysis and the reaction rate and the yield of the volatiles are predicted behaviour of the ash in combustion. It also discussed. Although very fast and very slow is suggested that pre-treatment by milling is one pyrolyses of biomass produce markedly different route that might be used routinely as a products, the variety of heating rates, feedstock quality improvement strategy in temperatures, residence times, and feedstock integrated biomass conversion processes. copy varieties found in the literature make 2006 Elsevier Ltd. All rights reserved. generalizations difficult to define, in regard to trying to critically analyze the literature. copy Mohan, D., C. U. Pittman Jr, et al. (2006). 2006 American Chemical Society. "Pyrolysis of wood/biomass for bio-oil: A critical review." Energy & Fuels 20(3): 848- Thermochemical – Pyrolysis – Slow 889. Gaunt, J. L. and J. Lehmann (2008). "Energy Fast pyrolysis utilizes biomass to produce a balance and emissions associated with product that is used both as an energy source biochar sequestration and pyrolysis and a feedstock for chemical production. bioenergy production." Environmental Considerable efforts have been made to convert Science & Technology 42(11): 4152-4158. wood biomass to liquid fuels and chemicals The implications for greenhouse gas emissions since the oil crisis in mid-1970s. This review of optimizing a slow pyrolysisbased bioenergy focuses on the recent developments in the wood system for biochar and energy production rather pyrolysis and reports the characteristics of the than solely for energy production were resulting bio-oils, which are the main products of assessed. Scenarios for feedstock production fast wood pyrolysis. Virtually any form of were examined using a life-cycle approach. We biomass can be considered for fast pyrolysis. considered both purpose grown bioenergy crops Most work has been performed on wood, (BEC) and the use of crop wastes (CW) as because of its consistency and comparability feedstocks. The BEC scenarios involved a between tests. However, nearly 100 types of change from growing winter wheat to purpose biomass have been tested, ranging from grown miscanthus, switchgrass, and corn as agricultural wastes such as straw, olive pits, and bioenergy crops. The CW scenarios consider nut shells to energy crops such as miscanthus both corn stover and winter wheat straw as and sorghum. Forestry wastes such as bark and feedstocks. Our findings show that the avoided thinnings and other solid wastes, including emissions are between 2 and 5 times greater

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when biochar is applied to agricultural land (2-19 emerged as one of the most promising sources Mg CO2 ha-1 y-1) than used solely for fossil for biodiesel production. It can be inferred that energy offsets. 41-64% of these emission algae grown in CO 2-enriched air can be reductions are related to the retention of C in converted to oily substances. Such an approach biochar, the rest to offsetting fossil fuel use for can contribute to solve major problems of air energy, fertilizer savings, and avoided soil pollution resulting from CO 2 evolution and emissions other than CO2. Despite a reduction future crisis due to a shortage of energy in energy output of approximately 30% where sources. This study was undertaken to know the the slow pyrolysis technology is optimized to proper transesterification, amount of biodiesel produce biochar for land application, the energy production (ester) and physical properties of produced per unit energy input at 2-7 MJ/MJ is biodiesel. In this study we used common greater than that of comparable technologies species Oedogonium and Spirogyra to compare such as ethanol from corn. The C emissions per the amount of biodiesel production. Algal oil and MWh of electricity production range from 91-360 biodiesel (ester) production was higher in kg CO2 MWh -1, before accounting for C offset Oedogonium than Spirogyra sp. However, due to the use of biochar are considerably below biomass (after oil extraction) was higher in the lifecycle emissions associated with fossil fuel Spirogyra than Oedogonium sp. Sediments use for electricity generation (600-900 kg CO2 (glycerine, water and pigments) was higher in MWh-1). Low-temperature slow pyrolysis offers Spirogyra than Oedogonium sp. There was no an energetically efficient strategy for bioenergy difference of pH between Spirogyra and production, and the land application of biochar Oedogonium sp. These results indicate that reduces greenhouse emissions to a greater biodiesel can be produced from both species extent than when the biochar is used to offset and Oedogonium is better source than fossil fuel emissions. copy 2008 American Spirogyra sp. copy 2008 Science Publications. Chemical Society. Miao, X. and Q. Wu (2007). "Study on Transesterification Hossain, A. B. M. S., A. preparation of biodiesel from microalgal oil." Salleh, et al. (2008). "Biodiesel fuel Taiyangneng Xuebao/Acta Energiae Solaris production from algae as renewable energy." Sinica 28(2): 219-222. American Journal of Biochemistry & Biodiesel fuels have received considerable Biotechnology 4(3): 250-254. attention in recent years as a renewable, Biodiesel is biodegradable, less CO2 and NOx biodegradable, and nontoxic fuel. Chlorella emissions. Continuous use of petroleum protothecoides is a microalgae that can be sourced fuels is now widely recognized as photoautotrophically or heterotrophically grown unsustainable because of depleting supplies under different regetal conditions. Heterotrophic and the contribution of these fuels to the growth of Chlorella protothecoides resulted in accumulation of carbon dioxide in the the accumulation of high lipid content of 55% in environment. Renewable, carbon neutral, cells, which was about 4 times that in transport fuels are necessary for environmental autotrophic cells (14%). Large amount of and economic sustainability. Algae have microalgal oil was efficiently extracted from

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these heterotrophic cells by using n-hexane. word, the approach including high-density Good quality of biodiesel was obtained from fermentation of Chlorella and enzymatic heterotrophic microalagl oil under the conditions transesterification process were set up and of acid catalyst with 56:1 molar ratio of methanol proved to be a promising alternative for to oil at temperature of 30 degree C in about 4 h biodiesel production. copy 2007 Springer- of reaction time. The biodiesel was Verlag. characterized by a density of 0.864 kg/L, the viscosity of 5.2 multiplied by 10-4 (40 degree C) Ultrasound Montalbo-Lomboy, M., G. and a heating value of 41 MJ kg-1. These Srinivasan, et al. Influence of ultrasonics in ammonia steeped switchgrass for enzymatic properties are comparable to conventional hydrolysis. 2007 ASABE Annual International diesel. The biodiesel from microalgal oil showed Meeting, Technical Papers 2007 ASABE much lower cold filter plugging point of -11 Annual International Meeting, Technical degree C in comparison with the diesel fuel, Papers. v 13 BOOK 2007. 12p 076231. which is better for engine start at lower The bioconversion of lignocellulosic materials temperature. Developing high lipid content into fuels is of great environmental and microalgae or 'bioengineering microalgae' would economic importance, because of the large be a new and the main way for biodiesel amounts of feedstock (est. over 1 billion tons per production in the future. year), the potentially low cost of this feedstock, and the potentially high net energy balance the Xiong, W., X. Li, et al. (2008). "High-density overall process. Switchgrass (Panicum virgatum fermentation of microalga Chlorella L.) is a candidate dedicated lignocellulosic protothecoides in bioreactor for microbio- diesel production." Applied Microbiology & feedstock in the US. However, lignocellulosic Biotechnology 78(1): 29-36. materials, including switchgrass, are hampered Agal-fermentation-based microbio-diesel by the recalcitrance of lignocellulose to production was realized through highcell- enzymatic degradation into fermentable sugars. density fermentation of Chlorella protothecoides Various types of pretreatment have been and efficient transesterification process. Cell developed to overcome this recalcitrance. In this density achieved was 16.8 g l-1 in 184 h and study, we examined sequential ammonia- 51.2 g l-1 in 167 h in a 5-l bioreactor by steeping and ultrasound pretreatment of performing preliminary and improved fedbatch switchgrass. The experimental variables culture strategy, respectively. The lipid content included ultrasound energy dissipation and was 57.8, 55.2, and 50.3% of cell dry weight source amplitude, biomass concentrations, and from batch, primary, and improved fed-batch antibacterial agents. Specifically, the 35-mL culture in 5-l bioreactor. Transesterification was samples received either 2000 J or 5000 J, while catalyzed by immobilized lipase, and the biomass concentration was at 10% and 30% conversion rate reached up to 98%. The (mass basis). Antibacterial agents were properties of biodiesel from Chlorella were employed to determine the extent to which comparable to conventional diesel fuel and sugars were being metabolized by naturally comply with US standard for Biodiesel. In a occurring bacteria in the unsterilized pretreated

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samples. Analytical glucose analysis was conducted to verify the amount of fermentable sugars released and low-vacuum SEM was used to establish the physical effect of ultrasonics on the biomass. The sequential ammonia steeping-ultrasonic pretreatment released about 10% more fermentable sugars than did ammonia steeping alone. However, the net energy balance (additional chemical in free sugars minus energy consumption of ultrasound process) was not favorable - this contrasts with Grewell's work using ultrasonics for enhancing sugar release from starches. We recommend further investigations on re-evaluating the design and conditions which could make ultrasonic work better as a lignocellulosic pretreatment.

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