Parratt & Associates Scoping Biorefineries: Temperate Biomass Value Chains

Actions to deliver Biorefineries and Biomass Value Chains

Achieving a vision for the development of a bioeconomy in Australia, based on renewable and sustainable biomass transformation, will require a reformation in the way industry, community and governments work. The opportunity is large and the challenge is equally as large. The following actions broadly cover different aspects of the value chain where government can impact the rate and scale of development.

Innovation

1. 
   The proposed Biorefinery Institute should be supported with a broader remit to work closely with the NCRIS Facility in Mackay and expanded to enable research and development into biobased chemicals and materials. The Institute must have access to a demonstration scale facility capable of both thermo-chemical and fermentation transformation of biomass.
   
2. 
   The Biorefinery Institute should cover all aspects of the value chain not just the end processing to bioproducts. In much the same way as an integrated Cooperative Research Centre, industry partners engaged in each part of the value chains should be involved in the Biorefinery Institute. Appropriate Rural Development Corporations should be encouraged to co-fund the Institute.
   
3. 
   Australian SMEs and mid-sized companies should be provided assistance to access technologies and to develop partnerships with international companies and organisations, as part of the National Enabling Technology Strategy.
   
4. 
   Efforts should be made to ensure that Australian companies, researchers and entrepreneurs are globally engaged to leverage international knowledge, value chains and companies to access markets, products and technologies. Expanding programs such as the bilateral science and technology grants and international ARC Linkage grants would provide some assistance. Importantly, there should be a link into the European Union Framework and initiatives such as CLIB2021 (www.CLIB2021.com )
   
5. 
   Research collaborations, nationally and internationally, should be targeted for additional funding support to ensure access to the latest R&D. Such efforts should be linked to companies and a technology roadmap.
   
6. 
   The government should examine and adopt strategies to stimulate the utilisation of biobased products in government procurements, thereby building consumer confidence, acceptance and demand for biobased products, similar to the US bio-preferred plan (www.biopreferred.com).
   

Investment

1. 
   The venture funds supported by the Federal government should be obliged to consider proposals that encompass biobased products such as chemicals and materials.
   

7. 
   In conjunction with industry, the government should develop and adopt a strategy that will actively promote and facilitate the position of Australia as a preferred location for investment in biorefineries.
   
8. 
   The government should develop innovative investment instruments that provide opportunities for industry to lower the risks associated with the large infrastructure costs for environmentally sustainable value added industries in the biobased economy.
   
9. 
   CPRS and RET mechanisms should be expanded to include all products originating from renewable biomass transformation.
   
10. 
    Regulations and legislation can slow investment in parts of the value chain, e.g. transport and storage of biomass, environmental impacts statements. These should be considered as a package across the industry to ensure consistency and certainty for investors.
    

Sustainability

1. 
   An internationally accepted and recognised environmental sustainability framework is needed for the development of biomass for use in biobased renewable products including chemicals and fuels.
   

11. 
    A whole of government approach is necessary for the development of the industry and the coordination of activities of government and research providers. This could be achieved by way of an interdepartmental committee or through a single department or steering group under COAG being given responsibility for the development of an industry implementation and development strategy.
    

Although a clear economic case for biorefineries in Australia remains uncertain, this Study concludes that the role for Government is mainly in the support for R&D to fill technological gaps. For the future, Governments might consider the merits of environmental and social benefits to determine whether these are sufficient to warrant more direct support towards biomass production.

Table of contents

Contents
Executive Summary		3
Chapter 1.	Introduction	15
1.1	What this report is about?	15
1.2	Target audience	16
1.3	Background	16
1.4	Aims and objectives of the report	17
1.5	Methods used	18
Chapter 2.	The National and International context for Biomass Value Chains and Biorefineries	19
2.1	Context setting	19
2.2	Significance of oil industry to Biorefineries and Biomass Value Chains	20
2.3	Biorefineries and the Demand for Chemicals	22
2.4	Biorefineries and Greenhouse Gas Emissions	23
2.5	Biorefineries, land and water	24
2.6	Biorefineries and the application of Industrial Biotechnology (IB)	25
2.7	Biobased Products – Increasing Value Creation in a Bioeconomy	27
Chapter 3.	Biomass Assessments in Temperate Australia	31
3.1	National assessments	32
3.2	Regional assessments	35
3.3	Estimated costs and amounts of biomass from forests and crop residues produced	37
3.4	Indicative costs associated with production, harvest and transport	43
Chapter 4.	Biorefineries and Technology	50
4.1	Pre‐treatment technologies	51
4.2	Conversion technologies	52
4.3	Commercial Australian lignocellulosic biorefineries development	56
4.4	Commercial international lignocellulosic biorefinery development	56
4.5	Cost of infrastructure and operating Bio‐Refineries	57
Chapter 5.	Biobased Products from Temperate Biomass	67
5.1	Markets for Biobased Products	68
5.2	Platform Biobased Chemicals	69
5.3	The International Market for Biobased Products	72
5.4	Global demand for bio‐based platform chemicals	73
5.5	Sources of Biomass for Biobased Products	75
5.6	Biocatalysis and Chemical Catalysis Market	76
5.7	Domestic Industrial Biobased products Manufacturers and Market Conditions	77
5.8	Research and Development across the Value Chain	79
Chapter 6.	Policy and Legislative Framework	86
6.1	Overview	86
6.2	Bio‐Energy Regulatory Assessment Systems and Sustainability Framework	87
6.3	Greenhouse gas emission reduction and sustainability	90
6.4	International Situation for Bioenergy as a Sustainable energy source	91
6.5	Skills Capability Development and Employment	96
Chapter 7.	Challenges and Opportunities for Temperate Biomass Value Chains	101
7.1	Valuing the Temperate Biomass Value Chain	101
7.2	The Role of Government	103
7.3	Challenges	107
7.4	Conclusion	110