Biofuels and Biomass

Rethinking biofuels in Australia

Associate Professor Victoria Haritos The role of advanced biofuels THE ROLE OF ADVANCED BIOFUELS Greater yield on (conventional) crops

Type Cellulosic Conventional Total (+ Conv) Wheat 35 54 68 Maize 73 113 141

Ethanol Sugarcane (T) 157 324 438 Convert conventional to Soybean 21 41 47 higher production Canola 33 45 54 advanced biofuels crops Biodiesel Oil palm (T) 129 278 329 Switchgrass 88 148 Elephant grass 193 325

Grasses Napier grass (T) 738 1242 Willow 44 74 Utilise marginal land Poplar 62 104

Coppice Eucalyptus 80 135 Values from: Nizsami and Ismail (2013) Life‐cycle assessment of biomethane from lignocellulosic biomass Alcohol Animal fats (Methanol)

Oil waste streams Transesterification Biodiesel

Waste cooking oil Hydrotreatment Diesel (HVO) Plant oil Hydrogen Sugars Fermentation Ethanol

Diesel

Refining Gasoline

Kerosene Alcohol Animal fats (Methanol)

Oil waste streams Transesterification Biodiesel

Waste cooking oil Hydrotreatment Diesel (HVO) Plant oil Hydrogen Sugars Fermentation Ethanol Plant biomass (lignocellulose) Enzyme Cellulosic Diesel Refining Gasoline Other biomass

Lignin Kerosene

Protein Alcohol Animal fats (Methanol)

Oil waste streams Transesterification Biodiesel

Waste cooking oil Hydrotreatment Diesel (HVO) Plant oil Hydrogen Sugars Fermentation Ethanol Plant biomass (lignocellulose) Enzyme Cellulosic Diesel Pyrolysis Refining Gasoline Other biomass Biochar Lignin Kerosene

Protein FT Biogas Methanol MSW Organics Syngas Methanol synthesis Conversion Biosolids DME Conversion Other Fermentation Ethanol Fertiliser Methane synthesis Digester Biomethane Alcohol Animal fats (Methanol)

Oil waste streams Transesterification Biodiesel

Waste cooking oil Hydrotreatment Diesel (HVO) Plant oil Hydrogen Sugars Fermentation Ethanol Plant biomass (lignocellulose) Enzyme Cellulosic Diesel Algae Pyrolysis Refining Gasoline Other biomass Biochar Lignin Kerosene

Oil based feedstocks

EU Sub‐group on advanced biofuels (2017) Building up the future cost of biofuels

LEK Consulting (2011) Advanced biofuels study: Strategic directions for Australia ECONOMIC VIABILITY – ‘FIRST OF A KIND’ PLANTS

SGAB – European Union sub‐group on advanced biofuels

IRENA – International Renewable Energy Agency

EU Sub‐group on advanced biofuels (2017) Building up the future cost of biofuels CARBON EMISSIONS FROM BIOFUELS

International Energy Agency (2008) From 1st to 2nd generation biofuel technology ‘BIG CELLULOSE’ ERA

2014 EU Wheat USA fibre Corn Stover/cobs BRAZIL 2016 Sugar cane fibre 2014 plants all 80 – 100 ML/Y (Raizen 40 ML/Y) ‘BIG CELLULOSE’ ERA

EU Sub‐group on advanced biofuels (2017) Building up the future cost of biofuels ‘BIG CELLULOSE’ ERA CURRENT STATUS Beta Renewables – Inactive (Bankrupt) Currently owned by Versalis Abengoa ‐ Inactive (Bankrupt) Currently owned by Synata Bio

DuPont – Inactive (Sold) Currently owned by Verbio POET‐DSM –Active

EU Sub‐group on advanced biofuels (2017) Building up the future cost of biofuels GranBio – Inactive Looking to reopen Raizen ‐Active CELLULOSIC ETHANOL – ALTERNATIVE DIRECTIONS Conventional large scale Clariant Praj Industries

Processes using Integration with 1st generation woody biomass (‘bolt‐on’ technology) Existing plants: Biorefineries: Quad County Corn Processors BIOFOREVER Little Sioux Corn Processors Sweetwoods Combined methodologies: New innovations: ICM Element D3MAX – Process Edeniq ‐ Enzymes CURRENT PARTNERS FIRST COMMERCIAL BIOFUELS Graanul Biotech (Estonia) Supply of wood biomass FOCUSSED BIOREFINERY MetGen Oy (Finland) Supply of Enzymes Initiated by a breakthrough by Sweetwater Energy Tecnaro GmbH (Germany) Post‐processing of lignin Inc. Armacell (Germany) Production of elastomeric foams • Sunburst pre‐treatment technology Recticel N.V. (Belgium) Lignin in polyurethane foams  Record conversion of over 94% of sugars Global Bioenergies (France) Fermentation to bio‐isobutene  Highly pure lignin stream 2B Srl (Italy) Life Cycle Assessment Vertech Group (France) Viability analysis Spinverse Oy (Finland) Project management Agricultural 2002 Biomass Plastics Lab 2004 MSW Forest Biosolids Biomass Pilot 2006

2008

$$ Demo 2010 SYNGAS 2012 Commercial 2014

2016 Methanol Growth ETHANOL 2002 Total equity + grants funding of over $750M Lab 2004 Enerkem Varennes – Quebec • Pilot 2006 $230M investment round (2018) • Government of Quebec to contribute $38M towards 2008 facility Demo 2010 Rotterdam JV (Shell, Air Liquide, AkzoNobel and Shell) 2012 • Final investment decision late 2019 Commercial 2014 Sinobioway group ‐ $125M equity investment 2016 • Acceleration of expansion to build over 100 facilities in Growth China by 2035

Further plans in USA and Spain BIO-CRUDE PROCESSES IN AUSTRALIA

Wastewater biosolids

Scale plant ‐ $12 mill Thermochemical Northern Oil Refinery Hydrotreatment

Cellulosic biomass Initial scale plant 2009 100 t/a plant

1,000 t/a plant 2011 10,000 t/a plant 2013 catalytic Process demonstration hydrothermal to Canfor (Cat‐HTR) technology 2015 JV with Canfor established (pulp) 3 pathways to 2017 commercialisation ‐ JV with Armstrong established (EOL plastic) All scheduled to begin construction 2019/2020 Aus JV with Stop Waste – iQ Renew (EOL plastic/tyres) 2019

In discussions with Neste CONCLUSIONS

GHG emissions benefits of biofuels vary Versatility of renewable feedstocks with feedstock and process and biofuels production pathways Advanced bioethanol has new innovations on horizon in several different directions Commercial viability is the main ‘technical’ challenge $$ Thermochemical methods now maturing Several companies at commercialisation or growth stage

20 Rethinking biofuels in Australia

Dr Diane Kraal To re‐think government policies that would encourage investment in innovative biofuels research toward economic and environmentally sustainable outcomes. RQ1: Policy narrative. Can prior Australian studies on biofuels inform todays policy? database search, content analysis

RQ2: Fiscal support. What type of fiscal support could encourage biofuels research, innovation and investment in Australia? database search Energy Justice principles: availability, affordability, due process, transparency and accountability,

sustainability, intra‐ and inter‐generational equity,

and responsibility.

Source: adapted from: Heffron and McCauley, ‘The Concept of Energy Justice Across the Disciplines’ (2017). Snapshot below from the 6 selected studies…

ii. O'Connell, D., Batten, D., O’Connor, M. et al. (2007). Biofuels in Australia - Issues and Prospects: A Report for the Rural Industries Research and Development Corporation (RIRDC). Canberra: RIRDC. Economic Political Environmental 7 main citations, 2010‐2016; more minor citations

Raises -Sustainable issues about impacts on land Economics energy and water. of bio-based security, -Sees GHG and products regional climate change opportunities as drivers for and health. biofuels industry.

iii. Australian Academy of Technological Sciences and Engineering (ATSE). (2008). Biofuels for Transport: A Roadmap for Development in Australia. Melbourne: ATSE. Economic Political Environmental 5 main citations, 2009‐2015; more minor citations -Raises issues of food versus fuel.

-The positives for G1 biofuels, such as huge tracts of Not an Concerns level poor-quality economic over energy land, magnificent report security sunlight, abundant saline water – translate into negative impacts on the environment. Figure 1. Word cloud from ‘Biofuels for Transport’, ATSE (2008). • Around 2007, stability in government energy policy was the norm.

• Prior studies relied on that norm: that there would a carbon trading system. GHG emissions were an issue to be addressed by government.

• In 2007 Australia had changed to the Rudd government. Electorate was yet to endure the policy instability due to government changes in the Rudd-Gillard-Rudd era (2010- 2013) and the Abbott-Turnbull-Morrison era (2013 +…).

• Prior studies indicated a consistent call for government fiscal support for innovative biofuel research and development. Recent fiscal changes point to a negative effect on biofuel innovation investment…. • the 2014 repeal of the carbon tax • the long delay from the 2016 R&D tax incentive inquiry to the present holdup • the 2015 introduction of excise for biofuels • the introduction of biofuel mandates - but only in New South Wales (2007) and Queensland (2017) Lack of co-ordination between state and national governments, including the many and varied renewable energy grant schemes. • Energy policy stability urgently needed.

• For Australia, biofuels are a minor component. This gap in energy diversity needs to be redressed by government policy.

• The R&D tax incentive changes need to be passed through parliament.

• Federal and State co-ordination of grant schemes required. Rethinking biofuels in Australia

Dr Rowena Cantley-Smith Dr Rowena Cantley‐Smith

1. GLOBAL CONTEXT

2. AUSTRALIAN SNAPSHOT

3. SUSTAINABILITY & EU POLICY

4. EU LAWS & BIOFUELS CURRENT GLOBAL PERSPECTIVE • • electricity & transport sectors electricity & transport use intheheat, widespread Highly versatile - global renewableenergy consumption(50%) largestsource of (biofuels &biomass) - Bioenergy Bioenergy (biofuels andbiomass) 2017 is theoverlooked giant ofthe Dr Fatih Birol, Executive Director, International Energy Agency renewable energy field • • 2018‐23 renewable energyowingtoits widespread use. Remains the largestforecastsource of renewables intheglobal energymix Bioenergy forecastto leadgrowthintheuseof (2018)

Source: IEA, Renewables 2018 Report AUSTRALIAN SNAPSHOT

1. CURRENT ENERGY CONTRIBUTION

2. CURRENT REGULATION • Policies • Laws & Guidelines

3. WHERE TO FROM HERE? • Positive future for Bioenergy • Advanced sustainable bioenergy – including biofuels – key part of the decarbonisation transition

2016‐2017 Average annual growth • Barriers to advancement – inadequate national energy policy, Energy Consumption ‐ share 2016–17 10 years Bioenergy (2016‐17) PJ renewable energy laws, and targets %% % • Regulatory necessities going forward – lessons from other Biomass 205.4 54.2 5.0 ‐0.2 jurisdictions, for instance the EU… Biogas 15.0 4.0 ‐4.1 3.7 Biofuels 7.1 1.9 ‐5.3 5.3 EU RENEWABLE ENERGY MODERN BIOENERGY = BIOFUELS & BIOMASS

Renewable Energy 17%

Bioenergy 59%

Transport Biofuels 12% SUSTAINABILITY & ENERGY POLICY SUSTAINABLE BIOENERGY – KEY ADVANTAGES • Reduce lifecycle greenhouse gas (GHG) emissions • Avoid unacceptable social, environmental, & economic impacts of fossil fuel dependence • Contribute to energy supply security SUSTAINABLE BIOFUELS - KEY RISKS • Land use and land use change from bioenergy expansion may • Threatened food security (food vs fuel) • Reduce biodiversity – habitat/species loss • Land access, ownership, use, indigenous peoples’ rights • Carbon savings not assured Sustainability Criteria 2003 Biofuels Directive for Biofuels Specified EU Council Agreement on 20% RE & 10% biofuels New Renewable Energies 20 20 20 by 2020 Europe’s Directive (RED II) climate change opportunity

Climate Energy Package Commission Key EU proposal for a revised RED Energy‐Climate Renewable Energy Directive Policies Fuel Quality Directive Directive to & Laws Reduce ILUC for Certification Scheme for Biofuels & Sustainable Biofuels Bioliquids

Conclusions on 2030 Roadmap for moving to a Climate and Energy Renewable Energy: a competitive low carbon Policy Framework 2013 Green major player in the economy in 2050 Paper European energy market 36 KEY EU LAWS SUPPORTING BIOFUELS

Biofuels Directive 2003/30/EC

Fuel Quality Directive 2009/30/EC (FQD)

Renewable Energy Directive 2009/28/EC (RED) Directive to reduce ILUC for biofuels & bioliquids (EU) 2015/1513 (ILUCD)