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Industrial Biotechnology and Biomass Utilisation INDUSTRY 2 2 Industrial strategies to enhance diversification and competitiveness in the Kingdom of Saudi Arabia Partners in Building a Promising Industrial Future UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria Telephone: (+43-1) 26026-0, Fax: (+43-1) 26926-69 UNITEEDD NATATIIOONNSS E-mail: [email protected], Internet: http://www.unido.org IINDUUSSTRRIIAAL DEEVVEELLOPPMMEENNTT OORRGGANAINZIATZAIOTINON Industrial Biotechnology and Biomass Utilisation Prospects and Challenges for the Developing World STOCKHOLM ENVIRONMENT INSTITUTE UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria Telephone: (+43-1) 26026-0, Fax: (+43-1) 26926-69 UUNNITITEEDD N NATATIOIONNSS E-mail: [email protected], Internet: http://www.unido.org ININDDUUSSTTRRIAIALL DDEEVVEELLOOPPMMEENNTT OORRGGAANNIIZZATATIIOONN Industrial Biotechnology and Biomass Utilisation Prospects and Challenges for the Developing World UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna, 2002007777 -i- This publication has not been formally edited. The views expressed therein, the designations employed as well as the presentation of material in this paper do not imply the expressions of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Designations such as “industrialized“, and “developing” countries are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not imply endorsement by UNIDO. Material in this publication may be freely quoted or reprinted, but acknowledgement is requested, together with a copy of the publication containing the quotation or reprint. -ii- AcknowlAcknowledgementsedgements This report was written by Francis X. Johnson (SEI). Claudia Linke-Heep (UNIDO) provided overall guidance and supervised the compilation of the various components of the report. Valuable inputs and comments were provided by Jan Van Dam (University of Waginengen), Seetharam Annadana (Consultant), and George Tzotzos (UNIDO). The participants in the Expert Group Meeting that was held at UNIDO HQ in December 2005 provided useful ideas and feedback; Elizabeth Abela Hampel and Jade Anne Paterson (UNIDO) provided follow-up summaries and information from that meeting. Gokul Ramamurthy (TERI, India) provided useful information on ecological and environmental impacts. Fiona Zuzarte (SEI) assisted with scientific editing and structuring of the report. Financial and institutional support was provided through UNIDO, with additional support provided by the Stockholm Environment Institute and the Swedish International Development Cooperation Agency (Sida). The opinions expressed in the report are strictly those of the author(s) and in no way reflect the views of UNIDO, SEI, or Sida. -iii- -iv- CONTENTS Preface ..................................................................................................................................... vii Part one. Overview of Issue Addressed 1. Introduction ..................................................................................................... 3 2. Biomass Resources for Energy and Industry ................................................ 5 3 Biomass Conversion ....................................................................................... 11 4. Environment sustainability ............................................................................. 16 5. Market Development ...................................................................................... 19 6. Trade, Financing, and Investment ................................................................ 30 7. Conclusion ...................................................................................................... 33 Part two. Scientific Papers 1. Co-Products from the Sugarcane Agroindustry by Eng. Antonio Valdes Delgado, Ph.D .......................................................... 37 2. Opportunities for Bio-Based Products in the Brazilian Sugarcane Industry By Karl Heinz LEIMER ..................................................................................... 53 3. Opportunities and Challenges for Industrial Biotechnology in South Africa by J.W. Webster and R.T. ................................................................................ 69 4. Challenges and Opportunities for Biofuels Production, Marketing, Economics and Policy Implications in Southern Africa by Francis D. Yamba ....................................................................................... 81 5. Certification of Bioenergy from the Forest: Motives and Means by Rolf Björheden ........................................................................................... 97 6. Governance of Industrial Biotechnology: Opportunities and Participation of Developing Countries by Victor Konde and Calestous Juma ........................................................... 107 7. The Forgotten Waste Biomass; Two Billion Tons for Fuel or Feed by Jonathan Gressel and Aviah Zilberstein .................................................. 121 8. Global Markets And Technology Transfer for Fuel Ethanol: Historical Development and Future Potential by Frank Rosillo-Calle and Francis X. Johnson ............................................. 133 9. Coconut Industrialization Centers by Edmundo T. Lim – Philippine ................................................................... 149 Part three. Summary of Plenary Sessions ....................................................... 161 Annex. List of Participants ............................................................................... 172 -v- -vi- Preface UNIDO, as the United Nations’ specialized agency on industrial development in developing countries, has a particular interest in the impact of industrial biotechnology on its clients. The cleaner industrial processes that biotechnology can support are important in all key industrial sectors, including food, textiles, leather, wood and energy. Cleaner industrial processes through the application of biotechnology also help to reduce negative environmental impacts that might otherwise occur. Through international cooperation and technology transfer, industrial biotechnology has a valuable role in supporting the International Conventions, particularly the Stockholm Convention on Persistent Organic Pollutants (UNEP-POPs), the U.N. Convention to Combat Desertification (UNCCD), and the U.N. Framework Convention on Climate Change (UNFCCC). An Expert Group Meeting on “Industrial Biotechnology and Biomass Utilisation: Prospects and Challenges for the Developing World” was convened at UNIDO’s headquarters, Vienna, Austria in December 2005. The Meeting included presentations and discussions on potential key focal areas for UNIDO’s support to developing country policy makers on industrial biotechnology applications. Its objective was to analyse relevant policy and technology issues and initiate follow up actions intended to fill information gaps and generate awareness at the government and industrial levels. This report is a follow-up to that meeting, with the intention of supporting ideas for the creation and/or deployment of technology platforms and policy frameworks for biomass conversion and industrial development. The report is divided into three parts. Part I provides an overview and background on the emerging bio-economy, with emphasis on the role of agricultural biomass resources for industrial biotechnology and renewable energy in supporting sustainable development and economic competitiveness. Part II provides nine papers that illustrate representative issues related to resource use, conversion options, and the development of new product markets. Part III provides documentation from the workshop, including summaries of presentations and information on the workshop participants. A full review of broad and complex issues such as these is beyond the scope of this brief report; the focus here is on some of the key technology and policy issues related to the choice of feedstocks and technology conversion platforms for bioenergy and industrial biotechnology in developing countries. The examples and case studies used are intended to illustrate the way in which the bio-economy derives its value from a broad array of biomass resources, including various agricultural and industrial residues, municipal waste, forest plantations, natural forests, and agricultural crops. The heterogeneity of biomass along with the many potential conversion paths and market applications has wide-ranging economic and environmental implications. The introduction and expansion of biotechnologies within the different industrial sectors can only be achieved when the institutional setting in a given country includes the appropriate policies, socio-economic frameworks and legal mechanisms. UNIDO’s private sector development initiatives—including investment, technology acquisition and adaptation programmes—aim to ensure that such aspects are considered at local, regional and global levels. In short, industrial biotechnology and bioenergy are at the heart of UNIDO’s programmes to promote clean and sustainable industrial development in developing countries.
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