Lignocellulosic Ethanol: The Path to Market

The cost effective production of transport fuels from biomass is essential if the EU aspiration to substitute 10% of transport fuels with sustainable alternatives by 2020 is to be met. The hope, voiced by the Parliament’s Industry and Energy Committee, is that at least 40% of the 2020 target will come from second-generation biofuels, and therein lies the challenge: second-generation conversion technologies are not yet commercial. Multiple pathways are being investigated around the globe, but dominant pathways have yet to emerge and business models have yet to be proven. Nevertheless, expectations are running high and there has been significant investment in R&D in the US, Europe and Asia. The production of ethanol from lignocellulosic biomass is commercially and environmentally one of the most promising options, and in 2007 the US Department of Energy (DOE) provided more than US$1 billion toward lignocellulosic ethanol (LE) projects. Their goal was to make the fuel cost competitive at$1.33 per gallon, when deployed at scale, by 2012. The majority of studies also suggest that LE will result in superior greenhouse gas savings compared to ethanol produced from starch. Despite favourable predictions for cost and environmental performance, market deployment requires practical and plausible development paths that are able to support progress from existing small-scale demonstration plant to large industrial installations. Moreover, these development paths must be sufficiently attractive to persuade developers and investors that lignocellulosic ethanol remains an opportunity worth pursuing

Prioritising the best use of biomass resources: conceptualising trade-offs

02.09.13 KB. Ok to add report to Spiral. Authors hold copyrightUsing biomass to provide energy services is one of the most versatile options for increasing the proportion of renewable energy in the existing system. This report reviews metrics used to compare alternative bio-energy pathways and identifies limitations inherent in the way that they are calculated and interpreted. It also looks at how companies and investors approach strategic decisions in the bio-energy area. Bio-energy pathways have has physical and economic attributes that can be measured or modelled. These include: the capital cost, operating cost, emissions to air, land and water. Conceptually, comparing alternative pathways is as simple as selecting the attributes and metrics you consider to be most important and ranking the alternative pathways accordingly. At an abstract level there is good agreement about which features of bio-energy pathways are desirable, but there is little agreement about which performance metrics best capture all the relevant information about a bio-energy pathway. Between studies there is also a great deal of variation and this impedes comparison. Common metrics describe energetic performance, economic performance, environmental performance (emissions, land and water use), and social and ecological performance. Compound metrics may be used to integrate multiple attributes but their highly aggregate nature may make them difficult to interpret. Insights that may be drawn from the analysis include:

The UK bio-energy resource base to 2050: estimates, assumptions, and uncertainties

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The greenhouse gas emissions performance of cellulosic ethanol supply chains in Europe

<p>Abstract</p> <p>Background</p> <p>Calculating the greenhouse gas savings that may be attributed to biofuels is problematic because production systems are inherently complex and methods used to quantify savings are subjective. Differing approaches and interpretations have fuelled a debate about the environmental merit of biofuels, and consequently about the level of policy support that can be justified. This paper estimates and compares emissions from plausible supply chains for lignocellulosic ethanol production, exemplified using data specific to the UK and Sweden. The common elements that give rise to the greatest greenhouse gas emissions are identified and the sensitivity of total emissions to variations in these elements is estimated. The implications of including consequential impacts including indirect land-use change, and the effects of selecting alternative allocation methods on the interpretation of results are discussed.</p> <p>Results</p> <p>We find that the most important factors affecting supply chain emissions are the emissions embodied in biomass production, the use of electricity in the conversion process and potentially consequential impacts: indirect land-use change and fertiliser replacement. The large quantity of electricity consumed during enzyme manufacture suggests that enzymatic conversion processes may give rise to greater greenhouse gas emissions than the dilute acid conversion process, even though the dilute acid process has a somewhat lower ethanol yield.</p> <p>Conclusion</p> <p>The lignocellulosic ethanol supply chains considered here all lead to greenhouse gas savings relative to gasoline An important caveat to this is that if lignocellulosic ethanol production uses feedstocks that lead to indirect land-use change, or other significant consequential impacts, the benefit may be greatly reduced.</p> <p>Co-locating ethanol, electricity generation and enzyme production in a single facility may improve performance, particularly if this allows the number of energy intensive steps in enzyme production to be reduced, or if other process synergies are available. If biofuels policy in the EU remains contingent on favourable environmental performance then the multi-scale nature of bioenergy supply chains presents a genuine challenge. Lignocellulosic ethanol holds promise for emission reductions, but maximising greenhouse gas savings will not only require efficient supply chain design but also a better understanding of the spatial and temporal factors which affect overall performance.</p

The commercial performance of cellulosic ethanol supply-chains in Europe

<p>Abstract</p> <p>Background</p> <p>The production of fuel-grade ethanol from lignocellulosic biomass resources has the potential to increase biofuel production capacity whilst minimising the negative environmental impacts. These benefits will only be realised if lignocellulosic ethanol production can compete on price with conventional fossil fuels and if it can be produced commercially at scale. This paper focuses on lignocellulosic ethanol production in Europe. The hypothesis is that the eventual cost of production will be determined not only by the performance of the conversion process but by the performance of the entire supply-chain from feedstock production to consumption. To test this, a model for supply-chain cost comparison is developed, the components of representative ethanol supply-chains are described, the factors that are most important in determining the cost and profitability of ethanol production are identified, and a detailed sensitivity analysis is conducted.</p> <p>Results</p> <p>The most important cost determinants are the cost of feedstocks, primarily determined by location and existing markets, and the value obtained for ethanol, primarily determined by the oil price and policy incentives. Both of these factors are highly uncertain. The best performing chains (ethanol produced from softwood and sold as a low percentage blend with gasoline) could ultimately be cost competitive with gasoline without requiring subsidy, but production from straw would generally be less competitive.</p> <p>Conclusion</p> <p>Supply-chain design will play a critical role in determining commercial viability. The importance of feedstock supply highlights the need for location-specific assessments of feedstock availability and price. Similarly, the role of subsidies and policy incentives in creating and sustaining the ethanol market highlights the importance of political engagement and the need to include political risks in investment appraisal. For the supply-chains described here, and with the cost and market parameters selected, selling ethanol as a low percentage blend with gasoline will maximise ethanol revenues and minimise the need for subsidies. It follows, therefore, that the market for low percentage blends should be saturated before markets for high percentage blends.</p

Global bioenergy resources

Using biomass to provide energy services is a strategically important option for increasing the global uptake of renewable energy. Yet the practicalities of accelerating deployment are mired in controversy over the potential resource conflicts that might occur, particularly over land, water and biodiversity conservation. This calls into question whether policies to promote bioenergy are justified. Here we examine the assumptions on which global bioenergy resource estimates are predicated. We find that there is a disjunct between the evidence that global bioenergy studies can provide and policymakers' desire for estimates that can straightforwardly guide policy targets. We highlight the need for bottom-up assessments informed by empirical studies, experimentation and cross-disciplinary learning to better inform the policy debate

CORSIA Lower Carbon Aviation Fuels: An Assessment of the Greenhouse Gas Emission Reduction Potential

Curbing aviation emissions is clear goal for the aviation sector, but it is a challenging task. At international level, the ICAO CORSIA initiative promotes the use of alternative fuels as a means to decarbonise flights. Among alternative fuels, lower carbon aviation fuels (LCAF) have been proposed under CORSIA. LCAF refers to a fossil fuel, which have been produced in a way that results in at least 10% lower lifecycle GHG emissions compared to a benchmark value. This paper analyses potential LCAF solutions for reducing GHG emissions of kerosene production and evaluates them relative to the ICAO baseline of 89.0 gCO2eq/MJ of fuel. The study analyses the levers that can reduce GHG upstream emissions (emissions from crude oil production) and refining emissions as well. This study shows that no one lever can reduce emissions to a sufficient level to meet the requirement of being a CORSIA-eligible fuel, and therefore that the deployment of multiple levers needed. Since jet fuel comprises only around 10% of total refining output, the LCAF measures could support the implementation of large, high-abatement cost changes, such as refinery-wide carbon capture and storage that affects multiple fuels

The EU bio-based industry: Results from a Survey

Providing regular analysis and data is fundamental for policy makers and stakeholders to monitor the development of an economic sector and make the necessary decisions to maximize the benefits it generates, be them of economic, social or environmental nature. In this line, this report contributes to quantifying and benchmarking a relevant economic sector in the so-called European Union Bioeconomy, the bio-based industry. The use of biomass feedstock in this specific industry has the potential to contribute to Europe's industrial and economic growth while significantly reducing greenhouse gas (GHG) emissions, other environmental burdens, and resource dependency, through the displacement of fossil-based products with bio-based alternatives. The report focuses on a list of relevant and bio-based products and it is based on a survey of 133 companies, the full population, producing or about to produce these products (with turnover or employing labour in the EU). We find a high diversity of companies in terms of size, products and time in the market. Some companies' operations are entirely bio-based and for some other bio-based products represent a relatively small fraction of their operations. The population includes companies producing commodity and speciality chemicals and material goods into a wide range of sectors. Fifty companies answered a structured questionnaire of about 70 questions during the survey (in 2015). The response illustrates that there are a diverse set of active players ranging from large to micro companies, developing and producing a wide range of products from a wide range of feedstocks. The companies that responded to the survey report total bio-based product turnovers of the order of 6.8 billion EUR globally and 1.4 billion EUR in the EU. All respondents are positive about the outlook for growth in the industry. The response also indicates a rise in company activity since 2011, and there appear to be shifts in products being developed and produced, probably as a result of market testing, and technical development. The active European companies produce and sell globally, testimony of the global nature of the sector.JRC.J.4-Agriculture and Life Sciences in the Econom

Micro-algae cultivation for biofuels: Cost, energy balance, environmental impacts and future prospects

AbstractMicro-algae have received considerable interest as a potential feedstock for producing sustainable transport fuels (biofuels). The perceived benefits provide the underpinning rationale for much of the public support directed towards micro-algae research. Here we examine three aspects of micro-algae production that will ultimately determine the future economic viability and environmental sustainability: the energy and carbon balance, environmental impacts and production cost. This analysis combines systematic review and meta-analysis with insights gained from expert workshops.We find that achieving a positive energy balance will require technological advances and highly optimised production systems. Aspects that will need to be addressed in a viable commercial system include: energy required for pumping, the embodied energy required for construction, the embodied energy in fertilizer, and the energy required for drying and de-watering. The conceptual and often incomplete nature of algae production systems investigated within the existing literature, together with limited sources of primary data for process and scale-up assumptions, highlights future uncertainties around micro-algae biofuel production. Environmental impacts from water management, carbon dioxide handling, and nutrient supply could constrain system design and implementation options. Cost estimates need to be improved and this will require empirical data on the performance of systems designed specifically to produce biofuels. Significant (>50%) cost reductions may be achieved if CO2, nutrients and water can be obtained at low cost. This is a very demanding requirement, however, and it could dramatically restrict the number of production locations available