Parratt & Associates Scoping Biorefineries: Temperate Biomass Value Chains

6.3 Greenhouse gas emission reduction and sustainability

The recently published, Novozymes sponsored World Wildlife Fund (WWF) report in September 2009²²⁰, and associated published data, suggests that industrial biotechnology could generate greenhouse gas reductions of between 1 and 2.5 billion tonnes per year by 2030. Again the extent to which this can be traced back to the development of value chains from biomass and bio-refineries will be dependent on the technology and conversion processes utilised. Increased industrial process efficiency, substitution of oil-based materials and adoption of a ‘closed-loop” economy where materials are re-used in turn, could significantly reduced industrial greenhouse gas emissions.

However, the actual impact will largely depend on the extent of supporting policies and strategies. According to the WWF report, these policies should;

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  support existing and new efficiency-enabling solutions to fully capitalise on their short-term potential;
  
• 
  anticipate and nurture the progression towards large scale biomaterial and closed-loop systems; and
  
• 
  ensure that the supply of industrial biotechnology feedstock land is managed according to principles of sustainability.
  

The approaches foreshadowed by the WWF report are embedded in the actions and work being undertaken by the International Energy Agency (IAE).

Three key Commonwealth Departments will have a significant impact on the development of biorefineries and bioproducts, Climate Change and Energy Efficiency (DCCEE), Agricultural, Fisheries and Forestry (DAFF) and Department of Environment, Water, Heritage and the Arts (DEWHA). A common theme across each of these departments is that of sustainability for any biomass production and transformation. The challenge for each was a perceived lack of coordination, as well as potential conflict on implementation priorities on a whole of government strategy. Evaluation on sustainability criteria is embedded in any application of technology or change of land use that may be required for a biorefinery to be established. DAFF and DEWHA work together to review changes to land use and natural resource management. DEWHA works through two agencies on the assessment of chemicals; Australian Pesticides and Veterinary Medicines Authority and the National Industrial Chemicals Notification and Assessment Scheme.

DEWHA has been examining a number of issues relating to biomass production for fuels²²¹. The areas under consideration are;

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  Land clearing and deforestation
  Particular note is made of the ‘gap’ in the legislation on the use of wood waste attracting no REC when exported for use in bioenergy plants offshore, yet they attract the equivalent in some importing countries. Plantation forests, not excluded under the RET legislation can and have been targeted by international companies to provide biomass. Appropriate sustainable harvesting standards need to be developed. The renewable energy target legislation excludes utilisation of native forests waste.
  
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  Biodiversity
  Concerns over the lack of protection for pristine and biodiversity-rich grasslands.
  
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  Water
  Access to sustainable water supplies for both biomass production and processing is under scrutiny. Potential use of recycled water as an alternative source for biomass production and processing.
  
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  Soils
  Biochar (a product of thermochemical transformation of biomass) has attracted considerable attention as for carbon soil replenishment. The claimed benefits of Biochar have yet to be substantiated by research.
  
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  Air quality
  State-based legislation covers areas of air quality that may need review for biofuels.
  
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  Source material for biomass
  Several applications have been made for the introduction or cultivation of existing weeds. Particular attention has been focussed on the Giant Reed (Arundo dona, a noxious weed declared under the Noxious weeds Act 1993); Jatropha curcus (already present in Australia however it is a listed weed in some states); and Miscanthus giganteus. There is significant interest in the US, Europe and Asia in Misc. giganteus, as it is very rapid growing plant, producing significant biomass per hectare and which is a sterile hybrid and can be propagated from rhizomes.
  

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6.4 International Situation for Bioenergy as a Sustainable energy source

The recently released IEA Report – Bioenergy – A sustainable and reliable energy source (2010)²²² recognised the need for policy support to overcome the obstacles to the development of a sustainable industry. The following table sets out the significant drivers behind policies for the countries studied.

Table 6-1: Key Motivations for Bioenergy Policy

Country	Objectives
	Climate Change	Environment	Energy Security	Rural Development	Agricultural Development	Technological Process	Cost Effectiveness
Brazil	X	X	X	X	X	X
China	X	X	X	X	X
India			X	X		X	X
Mexico	X	X	X	X		X
South Africa	X		X	X
Canada	X	X	X			X
France	X		X	X	X
Germany	X	X		X	X	X	X
Italy	X		X		X
Japan	X	X			X	X
Russia	X	X	X	X	X	X
UK	X	X	X	X			X
US		X	X	X	X	X
EU	X		X	X	X	X

Source: IEA Bioenergy, Bioenergy – A Sustainable and Reliable Energy Source, MAIN REPORT²²³

The report suggests that a main driver for bioenergy policies is cost reduction achieved through market introduction of bioenergy technologies that are directly competitive with existing fossil-based fuels. However, until this time, public financial support for the development of the industry is critical whilst new developments are explored and scale-up is achieved. Public support would allow the achievement of the more global objectives of addressing climate change, energy security, environment and rural development.

In an effort to understand, and advise on the role a policy and legislative framework can impact on an industry, the IEA applied the research by Ros²²⁴ to bioenergy and bioproducts. This is captured in Figure 6-1 that proposes varying policy regimes depending on the status of the technology and market deployment. Application of this model to bio-product development in Australia suggests that there is insufficient government assistance at all stage of the technology cycle. This issue has been addressed in the Australian context by Wait²²⁵ in his recent discussion paper to the Clean Energy Council. Currently, only indirect support is provided as a consequence of the support for the ethanol and biodiesel developments. This is primarily being funded through DRET with little consideration of the technological or capital requirements necessary for bioproduct development to proceed in unison with biofuels programs. NCRIS, Cooperative Research Centres, ARC Centres of Excellence and the National Enabling Technology Programs provide excellent leverage for research and development; however, there are a number of gaps for biobased products, including the lack of research infrastructure.

The policy position in relation to with biomass transformation for bioproducts currently sits across a number of Commonwealth departments and the States with little co-ordination. In fact, some policies are arguably at odds with the development of the industry other than for certain forms of bioenergy e.g. RET.

Figure 6-1: Overview of Policy Instruments

Source: IEA Bioenergy, Bioenergy – A Sustainable and Reliable Energy Source MAIN REPORT

A set of common lessons proposed from the work of the IEA on policy development and implementation.

1. 
   Policy initiatives should be part of a broader long-term vision.
   

12. 
    Given the long-term nature of the industry and technology development processes policies should reflect a long-term continuity and predictability.
    
13. 
    Policy initiatives should reflect the variable nature of the stages of development of the bioenergy and bioproducts technologies.
    
14. 
    Access to markets is critical for the success of bioenergy technologies. National standards for globally traded products and access to markets such as dual-fuel vehicles are essential. The current Council of Australian Governments (COAG) processes to harmonise chemicals regulations and legislation will be beneficial to the industry in Australia. Any standard should meet criteria that are credible, enforceable, clear, simple and transparent.
    
15. 
    All biofuels and biobased products will depend upon feedstock availability. Specific support for the on-going productivity improvements in agricultural, forestry and waste sectors will be crucial. Figure 6-2 from the IEA report identifies key relationships that should be considered in any policy development. The linkages are complex and cross many sectors and portfolios and yet no single model can describe all the relationships that need to be understood and considered. Table 6-1 and the following diagram provide an overview of both the drivers and the demand for careful policy developments.
    

Figure 6-2: Overview of key relationships relevant to assessment of bioenergy potentials

Source: IEA Bioenergy – A Sustainable and Reliable Energy Source - MAIN REPORT.²²⁶

The IEA report, in highlighting the above relationships, places emphasis on the need to understand the complex relationships between the critical societal concerns of food, energy and water. Addressing these concerns requires a whole of government approach. There is an opportunity for the Commonwealth to take a lead in this respect both through the COAG processes and by leadership through direct policy implementation.