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Ares(2019)2211208 - 28/03/2019 Good Practices Along the RESfuels Value Chain through mixed methods analysis D5.2 Good Practices Along the RESfuels Value Chain Author: Thomas Christensen, Asha Singh, Calliope Panoutsou Organisation Imperial College London City, Country London, United Kingdom Deliverable Information Grant Agreement Number 764799 Project Acronym ADVANCEFUEL Instrument CSA Start Date 1 September 2017 Duration 36 months Website www.ADVANCEFUEL.eu Deliverable Number D2.2 Deliverable Title Good practices along the RESfuels value chain Expected Submission M18 Actual Submission M18 Authors Thomas Christensen, Asha Singh, Calliope Panoutsou Reviewers Dissemination Level PU Public (PU), Restricted (PP), Confidential (CO) 1 ADVANCEFUEL at a glance ADVANCEFUEL (www.ADVANCEFUEL.eu) is a market research project formed by 8 partners from Chalmers University, Imperial College London (ICL), Leibniz Institute for Agricultural Engineering and Bioeconomy (ATB), Aalto University, The Agency for Renewable Resources (FNR), Energy Research Centre of the Netherlands (ECN), Utrecht University and Greenovate Europe aiming to facilitate the commercialisation of renewable transport fuels by providing market stakeholders with new knowledge, tools, standards and recommendations to help remove barriers to their uptake. The project focuses on advanced renewable fuels – defined as liquid biofuels produced from lignocellulosic feedstocks from agriculture, forestry and waste – and liquid renewable al- ternative fuels produced from renewable hydrogen and CO2 streams. As a way to support commercial development of these fuels, the project firstly develops a framework to monitor the current status, and future perspectives, of renewable fuels in Europe in order to better understand how to overcome barriers to their market roll-out. Following this, it investigates individual barriers through stakeholder consultations and discusses validation and potential solutions during stakeholder workshops. The project then examines the chal- lenges of biomass availability for second-generation biofuels, looking at non-food crops and residues, and how to improve supply chains from providers to converters. New and innovative conversion technologies are also explored in an effort to see how they can be integrated into energy infrastructure. Sustainability is a major concern for renewable fuels and as part of this report ADVANCEFUEL will look at socio-economic and environmental sustainability across the entire value chain, providing sustainability criteria and policy-recommendations for ensuring that renewable fuels are truly sustainable fuels. A decision support tool will be created for policy-makers to enable a full value chain assessment of renewable fuels, as well as useful scenarios and sensitivity anal- ysis on the future of these fuels. Stakeholders will be addressed throughout the project to involve them in a dialogue on the future of renewable fuels and receive feedback on ADVANCEFUEL developments to ensure ap- plicability to the end audience, validate results and ensure successful transfer and uptake of the project results. For instance, the Stakeholder Platform (accessible online) contributes to this objective. ADVANCEFUEL is thus a coordinated effort to support the development of new transport fuel value chains that can contribute to the achievement of the EU’s renewable energy targets and reduce carbon emissions in the transport sector to 2030 and beyond. To stay up to date with ADVANCEFUEL’s stakeholder activities, sign up at: www.ADVANCE- FUEL.eu/en/stakeholders 2 3 Contents 1. Introduction ............................................................................................... 6 1.1. Background .......................................................................................... 6 1.2. Approach and data collection ............................................................... 7 2. Good practices in advanced biofuel plants ............................................... 8 2.1. Overview of good practices .................................................................. 8 2.2. Environmental, economic and social performance per plant and development stage .....................................................................................13 2.2.1. Thermochemical plants ....................................................................14 2.2.2. Biochemical plants............................................................................22 2.3. Transferability of findings.....................................................................29 2.4. Concluding remarks and future work ...................................................32 3. Good practices in policies........................................................................33 3.1. Overview of policy landscape for advanced biofuels ...........................33 3.2. Good practice performance in policies ................................................42 3.3. Transferability of findings.....................................................................46 3.4. Concluding remarks and future work ...................................................49 4. Annexes ..................................................................................................50 4.1. Individual plant factsheets ...................................................................50 4.2. Individual country factsheets ...............................................................60 4.3. Interviewed stakeholders .....................................................................78 4.4. Questionnaire for plants ......................................................................79 4.5. Questionnaire for policy .......................................................................82 4.6. Methodology for Modelling Analysis Using Systems Dynamics Software ...................................................................................................................84 4 Summary This report presents Good practices cases in both the plant/biorefinery and policymaking arenas for the production and development of advanced renewable fuels. Its complementary report (D5.3) delivers a policy analysis with the aim of providing evidence on policy interventions which can be used to promote innovations across the RESfuels value chains. In the following months, the second version of this report (D5.6) shall further analyse the value of these Good practices through system dynamics modelling. The aim of this report is to inform stakeholders of what has been or is currently being carried out in industry and in policy making and how it facilitates the growing market uptake of ad- vanced renewable fuels from renewable sources (RESfuels) for the European road, aviation and marine transport sectors. Objectives 1. Presenting plant/biorefinery Good practices: • 10 plants from pilot, demonstration and commercial development stages are analysed through an environmental, economic and social lens to make the case for Good practices enacted for the production and implementation of RESfuels along the full value chain • Practices are measured against greenhouse gas emissions savings and sustainability measures, total production capacity and gross added value, and total employment gen- erated by the plants • 6 transferable practices as lessons learnt are presented to inform stakeholders • The Annex of this report includes the methodology behind systems dynamics analysis whereby practices will be further analysed (D5.6) with mixed methods 2. Presenting policy Good practices: • 12 renewable fuel policies are analysed from 10 different countries (Denmark, Finland, Germany, the Netherlands, Italy, Slovakia, Sweden, United Kingdom, Brazil, Canada), the European Union and the state of California in the US • Policy mechanisms employed and respective special provisions for aviation, marine and heavy-duty road transport for markets in initial, early and mature development stages are presented and assessed for their transferability • The preliminary assessment of good practice performance done jointly with interviewed stakeholders is measured against the quality of policy integration, strategy for market segments with limited alternatives for decarbonization and stakeholder engagement 5 1. Introduction 1.1.Background The European Union (EU) is committed to reduce greenhouse gas emissions (GHG) by 80-95% by 2050 compared to 1990 levels in line with the Paris Agreement to maintain temperature levels below 2oC, as compared to preindustrial levels. Renewable energy sources (RES) will have a major contribution to these targets. So far, the RES share in final EU consumption has in- creased from 8% in 2004 to 17% in 2016, while the first Renewable Energy Directive (2009) set a target of 20% by 2020 (RED, 2009/28/EC). Recently, the RED II recast has also set a binding Union target of at least 32% share of renewable by 20301 .Amongst the renewable energy sources, RESfuels are expected to contribute highly towards the decarbonisation of transport and their sustainable production is of outmost importance for the successful market develop- ment. According to the 2018 Bioeconomy Strategy published by the European Commission2, there are more than 800 biorefineries throughout Europe, with more than 360 producing liquid biofuels. Multi-product biorefineries can improve the efficiency of biomass utilisation by exploiting side- flows, reusing waste and resides and adding further value to materials beyond their energy source, such as using lignin