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Biofuels Research Gap Analysis Report Biofuels Research Gap Analysis METROECONOMICA Economic and Environmental Consultants Final report to the Biofuels Research Steering Group ED45917 Issue Number 3 30 th July 2009 Biofuels Research Gap Analysis AEA/ED45917/Issue 3 Title Biofuels Research Gap Analysis Customer Department for Transport (on behalf of the Biofuels Research Steering Group) Customer reference Contract reference: PPRO 4/009/019 Confidentiality, While the Department for Transport (DfT) has made every effort to copyright and ensure the information in this document is accurate, DfT does not reproduction guarantee the accuracy, completeness or usefulness of that information and it cannot accept liability for any loss or damages of any kind resulting from reliance on the information or guidance this document contains. Queen’s Printer and Controller of Her Majesty’s Stationery Office, 2009, except where otherwise stated. Prepared by AEA Technology plc under contract to the DfT dated February 2009. This publication, excluding logos, may be reproduced free of charge in any format or medium for non-commercial research, private study or for internal circulation within an organisation. This is subject to it being reproduced accurately and not used in a misleading context. The copyright source of the material must be acknowledged and the title of the publication specified. For any other use of this material, apply for a Click-Use Licence at http://www.opsi.gov.uk/click-use/system/online/pLogin.asp or e-mail [email protected] This is a value added publication which falls outside the scope of the Core-Use Licence. AEA Technology plc accepts no liability whatsoever to any third party for any loss or damage arising from any interpretation or use of the information contained in this report, or reliance on any views expressed therein. File reference AEAT/ENV/R/2864. Reference number ED45917- Issue 3 AEA 329 Harwell Didcot Oxfordshire OX11 0QJ t: 0870 190 8441 f: 0870 190 5545 AEA ii AEA/ED45917/Issue 3 Biofuels Research Gap Analysis AEA is a business name of AEA Technology plc AEA is certificated to ISO9001 and ISO14001 Author Name Pat Howes (AEA), Judith Bates (AEA), Craig Jamieson (AEA), Susan O’Brien (AEA), J Webb (AEA) Nick Barker (AEA), Todd Sajwaj (AEA), Alison Pridmore (AEA). Steve Wiggins (ODI), Henri Leturque (ODI), Nick Dale (Metroeconomica). Thanks to Jeremy Woods (Themba/Porter Alliance), Mairi Black (Themba/Porter Alliance) Jess Chalmers (Winrock), Nigel Mortimer (North Energy) Daniel Kindred (ADAS) and Angela Johnson (RICARDO) for their contributions to the project. Approved by Name Sujith Kollamthodi Signature Date 30 th July 2009 AEA iii Biofuels Research Gap Analysis AEA/ED45917/Issue 3 Acknowledgements EC, DG RTD The core study team (AEA, ODI, ECN Metroeconomica, Winrock and Themba) EcoNexus would like to acknowledge and thank all EEA the individuals and organisations that have Energy Biosciences provided information and advice during Ensus this project (as listed below). The views Environment Agency expressed, however, are those of the EPA / OTAQ authors. EPSRC ESRC ADAS European Biofuels Technology Platform AFD FAO Agromet Inst Chinese Academy of FARA Agricultural Science FNR Airbus Freeman Spogli Institute Alfa-Bird Ford AMEDD Frontier Agriculture Austrian Biofuels Institute Futurol Bangor University GDF Suez BBSRC General Motors UK BERR German Marshall Fund Bioliq GoteborgEnergi Birdlife International Grain BP Greenergy British Embassy – Japan GTZ British Embassy – Philippines ICONE British Embassy – France ICRISAT British High Commission – Malaysia IEA Bioenergy Bundsamt fur Naturschult IFEU British Sugar IFPRI Carbon Trust IIASA CATIE Illinois University CBD Secretariat IMECAL CENBIO Inbicon (Dong Energy) Central Science Laboratory Indian Institute of Science Chemistry Innovation Limited INEOS BIO CHERMEC Institute for Agriculture & Trade Policy COMPETE Iowa State University Corning Incorporated JNCC CURES Johnson Matthey Technology Centre DAF JRC DECC LEI, NL DEFRA Limagrain UK Ltd Delphi Diesel Systems Low Carbon Vehicle Partnership Department for Innovation, Universities Mercedes-Benz UK and Skills MFC DfT Michigan State University Department of Energy, United States NERC Dutch Ministry for Environment NEST East Midlands Development Agency Neste Oil European Commission Netherlands – VROM AEA iv AEA/ED45917/Issue 3 Biofuels Research Gap Analysis New Energy Finance USDA Newcastle University USDOE NNFCC University of Aberdeen Northwest Regional Development Agency University of Bath OECD University of Birmingham Öko Institute University of Cambridge Ohio State University University of Copernicus OREGIN University of Essex Oxfam University of Guelph Paul Scherrer Institute University of Illinois Plymouth Marine Laboratory University of Leeds Porter Alliance / Cambridge University University of Loughborough Probec-GTZ University of Manchester Proforest University of Newcastle Purdue University of Nottingham Queen's University Belfast University of Sao Paulo RFA University of Southampton Ricardo University of Utrecht RSPO University of Wageningen Scottish Association for Marine Science University of Warwick St1 Biofuels Oy UPM Biofuels Stanford University USDA Stockholm Environment Institute Verdurous solutions Swedish Energy Agency Vireol plc Swiss Federal Office of Energy Virgin Atlantic Airways Technology Strategy Board VOSA The Ecosystem Center Wageningen The Nature Conservancy Wetlands International UKPIA Winrock UKERC World Bank UNCTAD WWF UNEP WWF Scotland UNEP-WCMC Yorkshire Forward UNICA, Brazil ZALF AEA v Biofuels Research Gap Analysis AEA/ED45917/Issue 3 Biofuels research programme scoping study Biofuel production is one of the options that governments have to help them develop more sustainable transport and meet international environmental targets. Research has shown that biofuels can reduce carbon emissions, yet they are currently a controversial area of science. Insufficient data exists to fully understand the impact of biofuel production on communities and the environment; and, whilst biofuels could be a powerful tool in reducing carbon emissions, they must be produced in a sustainable manner if they are not to do more harm than good. This study has identified a number of issues that need to be addressed in order for the Government to develop policies that will move the UK towards sustainable biofuel production. Its key findings are: An improved understanding is needed of the indirect impacts of biofuels, particularly indirect land-use change (ILUC), including: • modelling frameworks for ILUC. • the definition of “alternative” lands (idle, marginal, and degraded land) and “alternative” feedstocks (wastes, by-products and residues) and their contribution to reducing indirect effects. • the potential contribution of improvements in yield and productivity to decreasing indirect effects. • the potentially beneficial impact of biofuel co-product use on land-use pressures. An improved understanding is needed of the environmental, socio-economic and supply-chain impacts of biofuels, including: • modelling the impacts of expanded biofuel production on commodity markets. • monitoring the potential harm to poor and vulnerable people in developing countries arising as a result of higher prices for food on international markets, and from localised effects on access to land and working conditions of marginalised people resulting from domestic development of biofuel industries in the developing world. • assessing the promising potential of some developing countries with underused land to establish biofuel industries serving local, national and export markets. • understanding the direct effects of biofuels crops on soil and water resources. There is a need for research into developing vehicle, production and infrastructure technologies to meet longer-term biofuel and sustainability targets, including: • understanding the benefits of second-generation technologies and identifying which advanced technologies are most suited to the UK. • understanding the impact of higher biofuel targets on vehicle performance. • developing skills and training to support the biofuels industry. • researching vehicle compatibility issues. • understanding the impact of using biofuels in rail, air and sea transport. • developing knowledge transfer mechanisms between research and industry. • providing funding for new biofuels infrastructure overseas in regions which could be important for the development of biofuels for import into the UK. There are a number of cross-cutting research gaps that need to be addressed in order to support the development of a UK biofuels policy, including: • obtaining improved data to support modelling, analysis and policy development across a wide range of areas. • understanding the wider impacts of biofuels policies on markets. • research into “grandfathering provisions” (these allow for existing companies/organisations/plants/machinery to be temporarily outside incoming legislation). AEA vi AEA/ED45917/Issue 3 Biofuels Research Gap Analysis Executive Summary Biofuels are one of a number of options that governments have to enable us to develop more sustainable transport. Biofuels provide governments with the potential to address a number of important policy issues – they can help to reduce CO 2 emissions from the transport sector; they provide an opportunity to improve security of supply for transport fuels in many areas; and they offer options to support rural development. Based on these potential benefits, governments worldwide
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