Costs and profitability of crops for bioeconomy in the EU

The bioeconomy is the cornerstone of the EU’s policy for shifting economic and societal trends towards circularity and low carbon arrangements. Europe has several crops that can be used as raw materials for this purpose, however pressure on land which might displace other activities and industrial competition for cost efficient raw materials remains a challenge. Hence, ensuring good yielding capacity and examining the likelihood to produce more by exploiting low quality, unused land can present significant opportunities to increase sustainable, locally sourced supply and at the same time offer profitable solutions to both industry and the farmers. This paper estimates the production costs of fourteen crops (oil, sugar, starch and lignocellulosic) and analyses how their profitability can be influenced by yield increases and cultivation in low quality land. Results show that there are profitable options for all crops under current market prices and land types except for cases in countries where crop productivity is rather low to sustain farm incomes. The analysis confirms that Europe has plenty crop options as raw materials for bioeconomy. Decision makers however must ensure future research and policy support are oriented towards sustainable yield increases and accelerate rehabilitation of land that is unused and of low quality

Competitive priorities to address optimisation in biomass value chains: the case of biomass CHP

Policy and industry decision makers place high priority on the contribution of biomass to the emerging low carbon, circular economy. Optimisation of performance, from the perspectives of environmental, social and economic sustainability and resource efficiency, is essential to successful development and operation of biomass value chains. The complexity of value chains, which comprise interrelated stages from land use to conversion and multiple end products, presents challenges. To date, decision makers have approached from the viewpoints of single market sectors or issues, such as market shares of bioeconomy and reduction of carbon emissions to mitigate climate change. This approach does not achieve a full understanding of value chains and their competitive priorities, limits consumer awareness, and poses risks of sub-optimal performance and under-development of potential local capacity. This paper presents a conceptual framework that combines value chain analysis and competitive priority theory with indicators suitable to measure, monitor and interpret sustainability and resource efficiency at value chain level. The case of biomass Combined Heat and Power (CHP) is used to illustrate how optimisation strategies can be focused to address challenges in value chain stages which will lead to better performance and uptake of sustainably sourced, widely accepted biomass options

Policy measures for sustainable sunflower cropping in EU-MED marginal lands amended by biochar: case study in Tuscany, Italy

The aim of this study is to evaluate economic support measures based on current EU policies affecting the profitability of large-scale deployment of biochar for sunflower cultivation in dry marginal lands in Italy, paving the way to large scale carbon sequestration in the EU Mediterranean region. Two cases were considered: i) straight biochar use and ii) biochar in combination with compost (COMBI: 20% biochar and 80% compost mass fraction), at application rates of 5 and 10 Mg ha−1 respectively. Based on realistic estimations of achievable crop-yield performances by biochar and COMBI addition to dry soils, the effect of current policies on the economic viability of biochar deployment and farmers’ income has been investigated. Using a cost-model we identified the required levels of support, in the form of (i) area subsidies for crop cultivation, (ii) tradable carbon certificates (credits), and (iii) REDII-compliant biofuel support for Aviation and Maritime, so to make biochar and sunflower cultivation in EU MED dry marginal lands competitive for sustainable crop-based biofuels. Results show that, by employing existing policy instruments, sufficient income can be generated for famers to recover marginal land, sequester large amount of carbon by BECCS at costs (∼82 € Mg−1 of CO2) falling at or below the typical range of CCS measures, as well as offer additional environmental and socio-economic positive benefits. The combination of currently operational economic mechanisms from the Common Agricultural Policy, the Climate Policy, and the Renewable Energy Directive II can: i) maintain domestic farming activities, ii) support the implementation of biochar projects at local level, iii) contribute to achieve EU and national biofuel targets without generating ILUC impacts and iv) achieve unprecedent potential for carbon sequestration. However, prior to large-scale deployment, targeted on-site R&D actions aimed at validating biochar effects under local conditions (soil, climate, crops) are recommended, together with training and capacity building activities for local farmers

Social considerations for the cultivation of industrial crops on marginal agricultural land as feedstock for bioeconomy

Marginal agricultural land (MAL) has received much attention in research and policy formation as a potential resource for cultivating biomass for energy and biobased products. However, it is still unclear whether biomass from MAL meets the requirements of social sustainability. This study develops a conceptual linkage between value-chain analysis and social life-cycle analysis (S-LCA), and assesses both positive impacts (handprints) and negative impacts (footprints). A participatory approach including interviews and surveys was used to understand views and perceptions of the relevant stakeholders. A systemic strategy was applied to analyze value-chain activities, understand challenges, and identify competitive advantages and disadvantages. For S-LCA, the variety of impacts and indicators was met through a literature review and a consistent scoring system. The cultivation of perennial crops on MAL tends to cause skepticism among stakeholders, who are concerned about long-term commitment and biodiversity risks. Annual crops, on the other hand, are perceived by all stakeholder categories as very promising opportunities across all impact categories and indicators. They can facilitate income diversification and offer smart sustainable cropping options through crop rotation, agroforestry, etc. Most of the technological pathways examined are highly innovative, have a low technological readiness level, and are still at the early market development stage. As such they are ranked by stakeholders as medium opportunities for short-term implementation. In contrast, pyrolysis to industrial heat, ethanol from switchgrass, insulation material from hemp, and biogas/biomethane from sorghum are considered opportunities with good chances of being implemented in the short term. © 2022 The Authors. Biofuels, Bioproducts and Biorefining published by Society of Industrial Chemistry and John Wiley & Sons, Ltd

Opportunities for low indirect land use biomass for biofuels in Europe

Sustainable biofuels are an important tool for the decarbonisation of transport. This is especially true in aviation, maritime, and heavy-duty sectors with limited short-term alternatives. Their use by conventional transport fleets requires few changes to the existing infrastructure and engines, and thus their integration can be smooth and relatively rapid. Provision of feedstock should comply with sustainability principles for (i) producing additional biomass without distorting food and feed markets and (ii) addressing challenges for ecosystem services, including biodiversity, and soil quality. This paper performs a meta-analysis of current research for low indirect land use change (ILUC) risk biomass crops for sustainable biofuels that benefited either from improved agricultural practices or from cultivation in unused, abandoned, or severely degraded land. Two categories of biomass crops are considered here: oil and lignocellulosic. The findings confirm that there are significant opportunities to cultivate these crops in European agro-ecological zones with sustainable agronomic practices both in farming land and in land with natural constraints (unused, abandoned, and degraded land). These could produce additional low environmental impact feedstocks for biofuels and deliver economic benefits to farmer

Increasing biomass resource availability through supply chain analysis

Increased inclusion of biomass in energy strategies all over the world means that greater mobilisation of biomass resources will be required to meet demand. Strategies of many EU countries assume the future use of non-EU sourced biomass. An increasing number of studies call for the UK to consider alternative options, principally to better utilise indigenous resources. This research identifies the indigenous biomass resources that demonstrate the greatest promise for the UK bioenergy sector and evaluates the extent that different supply chain drivers influence resource availability. The analysis finds that the UK's resources with greatest primary bioenergy potential are household wastes (>115 TWh by 2050), energy crops (>100 TWh by 2050) and agricultural residues (>80 TWh by 2050). The availability of biomass waste resources was found to demonstrate great promise for the bioenergy sector, although are highly susceptible to influences, most notably by the focus of adopted waste management strategies. Biomass residue resources were found to be the resource category least susceptible to influence, with relatively high near-term availability that is forecast to increase – therefore representing a potentially robust resource for the bioenergy sector. The near-term availability of UK energy crops was found to be much less significant compared to other resource categories. Energy crops represent long-term potential for the bioenergy sector, although achieving higher limits of availability will be dependent on the successful management of key influencing drivers. The research highlights that the availability of indigenous resources is largely influenced by a few key drivers, this contradicting areas of consensus of current UK bioenergy policy

Socio-economic opportunities from Miscanthus cultivation in marginal land for bioenergy

Substantial areas of agricultural land in south European countries are becoming increasingly marginal and being abandoned due to arid climate with prolonged summers and low rainfall. Perennial, lignocellulosic crops, such as Miscanthus, offer an outlet that couples agriculture with energy, creates employment, and increases profits from feedstock production in rural areas. This research paper follows an Input Output methodology and uses an econometric model to investigate the impact of crop yielding performance and marginal land to jobs and profit from the cultivation and supply of Miscanthus in low quality, marginal land in Italy and Greece. Two value chain cases are analysed: small scale Combined Heat and Power (CHP) and Fast Pyrolysis Bio Oil (FPBO). The cultivation of Miscanthus in both reference value chains exhibits good employment prospects, with smaller scale value chains creating more labour-intensive logistics operations. The activities can also generate substantial financial profit especially with higher crop yields. Results show a pronounced relationship between profitability and crop yield for both reference value chains - cultivation and supply operations become more profitable with increasing yield. It is, therefore, important to achieve higher yields through good cropping practices, while maintaining high levels of environmental sustainability

Advanced biofuel value chains through system dynamics modelling and competitive priorities

The greatest challenge in accelerating the realisation of a sustainable and competitive bioeconomy is to demonstrate that enshrining sustainability principles at the very heart of a production line can generate value and improve its overall system. Strategies for reducing emissions, pollutants, indirect land use change or soil depreciation are all perceived as costs or necessary inconveniences to comply with stringent, climate change-focused policy frameworks. System dynamics modelling and competitive priorities are tools that can accurately and intelligently expand on the cross-value chain approach, which integrates both technical and environmental performances, to address the issue of harmonising sustainability and technical operations as one overall dimension of performance. A stock-and-flow model is developed to map a full biofuel value chain and quantitatively and coherently integrate factors of emissions, carbon, land, production, and technology. As such, environmental and operational impacts of innovative practices are measured, and subsequently linked to a qualitative framework of competitive priorities, as defined by transparency, quality, innovation and flexibility. Sustainability and productivity functions are found to reinforce each other when all competitive priorities are optimised. Equally, the framework provides a clear understanding of trade-offs engendered by value chain interventions. Advantages and limitations in the accessibility, scope and transferability of the multi-pronged analytical approach are discussed

A value chain approach to improve biomass policy formation

Biomass value chains for energy, fuels and bio‐based products involve complex, cross sector interactions between their upstream and downstream stages. Overarching policymaking to date has included the use of biomass to deliver sector specific aims (e.g. climate change, energy, etc.) however, this is mostly planned without adjusting support across the most challenging stages of biomass value chains and exploiting specific advantages related to their geographic settings (e.g. domestic feedstocks, local markets, etc.). Policies to date have, therefore, resulted in fragmented, suboptimal biomass use and debates for sustainability and resource efficiency. This opinion paper arose from the project Strategic Initiative for Resource Efficient Biomass Policies Funded by the EU Commission. It discusses the development of a dedicated Biomass Policy Framework which applies the principles of value chain analysis in policy design to enable the market uptake of sustainable, domestic, resource efficient biomass solutions. Firstly, it explains how to provide context by identifying value chains which can offer competitive advantages for biomass mobilization, market infrastructures, rural and economic development within their geographic setting. Then the work builds on the context and prioritized value chains and further rationalizes policy needs and aims within individual value chain stages. This is done by identifying policy‐related challenges and gaps that constrain sustainable and resource efficient deployment of the selected value chains. Also, it suggests policy interventions that will overcome challenges, resolve gaps and as a result mobilize local biomass and improve market uptake. Finally, it discusses the contrasting paradigms for biomass policy formation within single sector target setting and the value chain approach of the Biomass Policy Framework and uses the case of low carbon biomass heat to illustrate the strengths of the suggested approach. The paper concludes with remarks for the concept of biomass value chain analysis in policy