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Biofuels: Policies, Standards and Technologies World Energy Council 2010 For sustainable energy. 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. Biofuels: Policies, Standards and Technologies World Energy Council 2010 8 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
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