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A SUSTAINABLE and RELIABLE ENERGY SOURCE a Review of Status and Prospects

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This report was jointly prepared for IEA Bioenergy by the Energy Bioenergy – a Sustainable Research Centre of the Netherlands (ECN), E4tech, Chalmers University and Reliable Energy Source of Technology, and the Copernicus Institute of the University of Utrecht. The purpose of the report MAIN REPORT was to produce an authoritative review of the entire bioenergy sector aimed at policy and investment decision makers. The brief to the contractors was to provide a global perspective of the potential for bioenergy, the main opportunities for deployment in the short and medium term and the principal issues and challenges facing the development of the sector. IEA Bioenergy IEA BIOENERGY: ExCo: 2009:06 1 BIOENERGY – A SUSTAINABLE AND RELIABLE ENERGY SOURCE A review of status and prospects Lead authors: Ausilio Bauen (E4tech); Göran Berndes (Chalmers University of Technology); Martin Junginger (Copernicus Institute of the University of Utrecht); Marc Londo (ECN) and François Vuille (E4tech) Contributing authors: Robert Ball (E4tech); Tjasa Bole (ECN); Claire Chudziak (E4tech); André Faaij (Copernicus Institute of the University of Utrecht) and Hamid Mozaffarian (ECN) KEY MESSAGES Bioenergy is already making a substantial contribution to meeting global energy demand. This contribution can be expanded very significantly in the future, providing greenhouse gas savings and other environmental benefits, as well as contributing to energy security, improving trade balances, providing opportunities for social and economic development in rural communities, and improving the management of resources and wastes. Bioenergy could sustainably contribute between a quarter and a third of global primary energy supply in 2050. It is the only renewable source that can replace fossil fuels in all energy markets – in the production of heat, electricity, and fuels for transport. Many bioenergy routes can be used to convert a range of raw biomass feedstocks into a final energy product. Technologies for producing heat and power from biomass are already well-developed and fully commercialised, as are 1st generation routes to biofuels for transport. A wide range of additional conversion technologies are under development, offering prospects of improved efficiencies, lower costs and improved environmental performance. However, expansion of bioenergy also poses some challenges. The potential competition for land and for raw material with other biomass uses must be carefully managed. The productivity of food and biomass feedstocks needs to be increased by improved agricultural practices. Bioenergy must become increasingly competitive with other energy sources. Logistics and infrastructure issues must be addressed, and there is need for further technological innovation leading to more efficient and cleaner conversion of a more diverse range of feedstocks. Further work on these issues is essential so that policies can focus on encouraging sustainable routes and provide confidence to policy makers and the public at large. Disclaimer: Whilst the information in this publication is derived from reliable sources and reasonable care has been taken in the compilation, IEA Bioenergy and the authors of the publication cannot make any representation or warranty, express or implied, regarding the verity, accuracy, adequacy or completeness of the information contained herein. IEA Bioenergy and the authors do not accept any liability towards the readers and users of the publication for any inaccuracy, error, or omission, regardless of the cause, or any damages resulting there from. In no event shall IEA Bioenergy or the authors have any liability for lost profits and/or indirect, special, punitive, or consequential damages. 2 TABLE OF CONTENTS KEY MESSAGES 2 EXECUTIVE SUMMARY 6 Introduction 6 Biomass Resources 6 Biomass Conversion Technologies 8 Bioenergy Markets 10 Interactions with Other Markets 12 Bioenergy and Policy Objectives 12 Lessons for the Future 13 A Sensible Way Forward 14 CHAPTER 1: INTRODUCTION 15 1.1 Objectives and Scope of the Report 16 1.2 Structure of the Report 16 CHAPTER 2: BIOMASS RESOURCES AND POTENTIALS 17 2.1 Overview of Biomass Feedstocks and Global Technical Potentials 17 2.1.1 Technical biomass potential 17 2.1.2 Key factors infl uencing technical biomass potential 18 2.1.3 Biomass potential taking into account several sustainability constraints 19 2.2 Regional and Short-term Biomass Utilisation Scenarios 21 2.3 Environmental and Other Aspects of Energy Crop Production 22 2.3.1 Water availability and competition 22 2.3.2 Environmental functions of bioenergy production 23 2.3.3 Biodiversity 24 2.3.4 The agricultural sector, crop improvements and GMOs 24 2.3.5 Climate change impacts 24 2.4 Biomass Supply Chains and Logistics 24 2.5 Key Messages for Decision Makers 26 CHAPTER 3: BIOENERGY ROUTES AND CONVERSION TECHNOLOGIES 27 3.1 Biomass – A Unique Renewable Resource 27 3.2 Characteristics of Bioenergy Routes 27 3.3 Biomass Pre-treatment and Upgrading Technologies 28 3.3.1 Pelletisation 28 3.3.2 Pyrolysis and hydrothermal upgrading 29 3.3.3 Torrefaction 29 3.4 Biomass for Heat Applications 29 3.4.1 Combustion 30 3.4.2 Gasifi cation 30 3.5 Biomass for Power and CHP Applications 30 3.5.1 Biomass combustion 31 3.5.2 Co-fi ring 32 3.5.3 Gasifi cation 32 3.5.4 Anaerobic digestion 32 3.6 Biofuels for Transport Applications 33 3.6.1 Defi nitions and development status 33 3.6.2 1st generation biofuels 33 3.6.3 2nd generation biofuels 35 3.6.4 3rd generation biofuels 36 3.7 Biorefi neries 37 3.7.1 Concept and defi nition 37 3.7.2 Development status and prospects 37 3.8 Key Messages for Decision Makers 38 3 CHAPTER 4: BIOMASS TRADE AND BIOENERGY MARKETS 40 4.1 Bioenergy Markets and Opportunities 40 4.1.1 Biomass-to-heat 41 4.1.2 Biomass-to-power and CHP 42 4.1.3 Biomass-to-biofuels 43 4.2 Trade in Biomass Energy Carriers 44 4.2.1 Main commodities traded and trading routes 45 4.2.2 Current and future trade volumes 46 4.3 Bioenergy and Commodity Markets 47 4.3.1 Introduction 47 4.3.2 Bioenergy and agro-forestry – relationships between competing sectors 47 4.3.3 Price impact estimates 48 4.3.4 Policy implications 50 4.4 Barriers to Deployment and Market Risks 51 4.4.1 Supply side risks and barriers 51 4.4.2 Technology risks and barriers 52 4.4.3 Market risks and barriers 52 4.5 Key Messages for Decision Makers 53 CHAPTER 5: BIOENERGY AND POLICY OBJECTIVES 55 5.1 Introduction 55 5.2 The Role of Bioenergy in the Stationary and Transport Energy Systems 55 5.3 Bioenergy and Climate Change Mitigation 56 5.3.1 Conclusions from lifecycle assessments and well-to-wheel analyses 56 5.3.2 Impact of direct and indirect land use change on greenhouse gas emissions 58 5.4 Bioenergy and Energy Security 60 5.5 Other Environmental and Socio-economic Aspects 61 5.6 Key Messages for Decision Makers 62 CHAPTER 6: MAKING POLICY FOR BIOENERGY DEPLOYMENT 64 6.1 Introduction 64 6.2 Common Lessons for Bioenergy Policy Making 65 6.3 Bioenergy Technology Support Instruments for Different Development Stages 65 6.3.1 Policies related to the RD&D phase 66 6.3.2 Policies related to early markets 66 6.3.3 Policies related to mass markets 67 6.4 Key Characteristics of Bioenergy Policies by Sector 67 6.4.1 Heat 68 6.4.2 Power generation 68 6.4.3 Biofuels 69 6.5 Other Policy Domains Relevant for Bioenergy 69 6.5.1 Agricultural policies 70 6.5.2 Forestry policies 70 6.5.3 Land use planning policies 70 6.5.4 Trade policies 70 6.5.5 Environmental policies 70 6.5.6 Communication with the public and education of relevant professional groups 71 6.6 Sustainability Policies and Certifi cation 71 6.6.1 Sustainability principles relating to bioenergy 71 6.6.2 Key characteristics of bioenergy certifi cation systems 71 6.6.3 Addressing indirect effects 72 6.7 Support for Bioenergy Policy 72 6.8 Key Messages for Decision Makers 72 4 REFERENCES 74 ANNEX 1: UNITS AND CONVERSION FACTORS 80 Annex 1.1 Energy Conversion Factors 80 Annex 1.2 Metric System Prefi xes 80 Annex 1.3 Currency Conversion Approach Adopted in this Report 80 ANNEX 2 : BIOMASS RESOURCES AND POTENTIALS 81 Annex 2.1 Overview of the Long-term Global Technical Potential of Bioenergy Supply 81 Annex 2.2 Biomass Yields of Food and Lignocellulosic Crops 82 Annex 2.3 Overview of Regional Biomass Production Scenario Studies 83 ANNEX 3: BIOENERGY ROUTES AND CONVERSION TECHNOLOGIES 85 Annex 3.1 Biomass Upgrading Technologies 85 Annex 3.2 Biomass-to-Heat Technologies 86 Annex 3.3 Biomass Combustion-to-Power Technologies 87 Annex 3.4 Co-fi ring Technologies 88 Annex 3.5 Biomass Gasifi cation Technologies 89 Annex 3.6 Anaerobic Digestion Technologies 90 Annex 3.7 Feedstock Yields for Sugar and Starch Crops used for Bioethanol Production 92 Annex 3.8 Production Costs for Different Biofuels 92 Annex 3.9 Renewable Diesel by Hydrogenation 93 Annex 3.10 Conversion Pathway of Lignocellulosic Material into Bioethanol 93 ANNEX 4: BIOMASS TRADE AND BIOENERGY MARKETS 94 Annex 4.1 Overview of Bioenergy Flows into Final Applications 94 ANNEX 5: BIOENERGY AND POLICY OBJECTIVES 95 Annex 5.1 Bioenergy, Land Use and GHG Emissions 95 ANNEX 6: MAKING POLICIES FOR BIOENERGY DEPLOYMENT 97 Annex 6.1 Key Characteristics of Several Biomass Sustainability Certifi cation Initiatives 97 Annex 6.2 Key Issues in Certifi cation System Implementation 98 Annex 6.3 Overview of Intergovernmental Platforms for Exchange on Renewables and Bioenergy 98 ANNEX 7: GLOSSARY OF TERMS AND ACRONYMS 101 ACKNOWLEDGEMENTS 108 5 EXECUTIVE SUMMARY INTRODUCTION 10% of global annual primary energy consumption.
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