Biofuel production in Europe - Potential from lignocellulosic waste

The objective of this study is to analyze the biofuel potential in Europe from lignocellulosic waste (wood waste and paper and cardboard waste). Ethanol from fermentation and Fischer-Tropsch (FT) diesel from gasification are the two biofuels considered. As those biofuels are not yet commercially available, the optimal locations of the production plants have to be determined. The analysis is carried out with a geographic explicit model that minimizes the total cost of the biofuel supply chain. A mixed integer linear program is used for the optimization. The results show that ethanol production plants are selected in a majority of the studied cases. Ethanol plants are mainly set up in areas with a high heat demand and/or high electricity or heat price, whereas FT diesel production plants are set up in areas where the heat demand is low all year round. A high cost for emitting CO2 as well as high transport fossil fuel prices favor the selection of FT diesel over ethanol production plants. With a CO2 cost of 100 Euros/tCO2 applied, the biofuel production from waste can potentially meet around 4% of the European transport fuel demand

CHP or biofuel production in Europe?

In this study, the opportunity to invest in combined heat and power (CHP) plants and second-generation biofuel production plants in Europe is investigated. To determine the number and type of production plants, a mixed integer linear model is used, based on minimization of the total cost of the whole suply chain. Different policy scenarios are studied with varying values of carbon cost and biofuel support. The study focuses on the type of technology to invest in and the CO2 emission substitution potential, at constant energy prices. The CHP plants and the biofuel production plants are competing for the same feedstock (forest biomass), which is available in limited quantities. The results show that CP plants are preferred over biofuel production plants at high carbon costs (over 50 EUR/tCO2) and low biofuel support (below 10 EUR/GJ), whereas more biofuel production plants would be set up at high biofuel support (over 15 EUR/GJ), irrespective of the carbon cost. Regarding the CO2 emission substitution potential, the highest potential can be reached at a high carbon cost and low biofuel support. It is concluded that there is a potential conflict of interest between policies promoting increased use of biofuels, and policies aiming at decreased CO2 emissions

Combining expansion in pulp capacity with production of sustainable biofuels – Techno-economic and greenhouse gas emissions assessment of drop-in fuels from black liquor part-streams

Drop-in biofuels from forest by-products such as black liquor can help deliver deep reductions in transport greenhouse gas emissions by replacing fossil fuels in our vehicle fleet. Black liquor is produced at pulp mills that can increase their pulping capacity by upgrading some of it to drop-in biofuels but this is not well-studied. We evaluate the techno-economic and greenhouse gas performance of five drop-in biofuel pathways based on BL lignin separation with hydrotreatment or black liquor gasification with catalytic synthesis. We also assess how integrated biofuel production impacts different types of pulp mills and a petroleum refinery by using energy and material balances assembled from experimental data supplemented by expert input. Our results indicate that drop-in biofuels from black liquor part-streams can be produced for ~80 EUR2017/MWh, which puts black liquor on the same footing (or better) as comparable forest residue-based alternatives. The best pathways in both production routes have comparable costs and their principal biofuel products (petrol for black liquor gasification and diesel for lignin hydrotreatment) complement each other. All pathways surpass European Union's sustainability criteria for greenhouse gas savings from new plants. Supplementing black liquor with pyrolysis oil or electrolysis hydrogen can improve biofuel production potentials and feedstock diversity, but better economic performance does not accompany these benefits. Fossil hydrogen represents the cheaper option for lignin hydrotreatment by some margin, but greenhouse gas savings from renewable hydrogen are nearly twice as great. Research on lignin upgrading in industrial conditions is recommended for reducing the presently significant performance uncertainties

Sustainable aviation fuels – Options for negative emissions and high carbon efficiency

Mitigating the climate impact from aviation remains one of the tougher challenges in adapting society to fulfill stated climate targets. Long-range aviation cannot be electrified for the foreseeable future and the effects of combusting fuel at high altitude increase the climate impact compared to emissions of green-house gasses only, which further limits the range of sustainable fuel alternatives. We investigate seven different pathways for producing aviation biofuels coupled with either bio-energy carbon capture and storage (BECCS), or bio-energy carbon capture and utilization (BECCU). Both options allow for increased efficiency regarding utilization of feedstock carbon. Our analysis uses process-level carbon- and energy balances, with carbon efficiency, climate impact and levelized cost of production (LCOP) as primary performance indicators. The results show that CCS can achieve a negative carbon footprint for four out of the seven pathways, at a lower cost of GHG reduction than the base process option. Conversely, as a consequence of the electricity-intensive CO2 upgrading process, the CCU option shows less encouraging results with higher production costs, carbon footprints and costs of GHG reduction. Overall, pathways with large amounts of vented CO2, e.g., gasification of black liquor or bark, as well as fermentation of forest residues, reach a low GHG reduction cost for the CCS option. These are also pathways with a larger feedstock and corresponding production potential. Our results enable a differentiated comparison of the suitability of various alternatives for BECCS or BECCU in combination with aviation biofuel production. By quantifying the relative strengths and weaknesses of BECCS and BECCU and by highlighting cost, climate and carbon-efficient pathways, these results can be a source of support for both policymakers and the industry

Cost optimization of biofuel production – The impact of scale, integration, transport and supply chain configurations

This study uses a geographically-explicit cost optimization model to analyze the impact of and interrelation between four cost reduction strategies for biofuel production: economies of scale, intermodal transport, integration with existing industries, and distributed supply chain configurations (i.e. supply chains with an intermediate pre-treatment step to reduce biomass transport cost). The model assessed biofuel production levels ranging from 1 to 150 PJ a−1 in the context of the existing Swedish forest industry. Biofuel was produced from forestry biomass using hydrothermal liquefaction and hydroprocessing. Simultaneous implementation of all cost reduction strategies yielded minimum biofuel production costs of 18.1–18.2 € GJ−1 at biofuel production levels between 10 and 75 PJ a−1. Limiting the economies of scale was shown to cause the largest cost increase (+0–12%, increasing with biofuel production level), followed by disabling integration benefits (+1–10%, decreasing with biofuel production level) and allowing unimodal truck transport only (+0–6%, increasing with biofuel production level). Distributed supply chain configurations were introduced once biomass supply became increasingly dispersed, but did not provide a significant cost benefit (<1%). Disabling the benefits of integration favors large-scale centralized production, while intermodal transport networks positively affect the benefits of economies of scale. As biofuel production costs still exceeds the price of fossil transport fuels in Sweden after implementation of all cost reduction strategies, policy support and stimulation of further technological learning remains essential to achieve cost parity with fossil fuels for this feedstock/technology combination in this spatiotemporal context

Evaluating fuel switching options in the Swedish iron and steel industry under increased competition for forest biomass

Significant use of forest biomass in the iron and steel industry (ISI) to mitigate fossil CO2 emissions will affect the biomass availability for other users of the same resource. This paper explores the market effects of increased forest biomass competition when promoting the use of forest-based bio-products in the ISI, as well as the interactions between the ISI and the forest industries. We employ a soft-linking approach that combines a geographically explicit techno-economic energy system model and an economic partial equilibrium model of the forest industries and forestry sectors. This allows for iterative endogenous modelling of new equilibrium price developments for different biomass assortments, determining locational choice of bio-products and assessing optimal bio-products technology choices. The results indicate an upward pressure on biomass prices when bio-products are introduced in the ISI (up to 62%), which affects both forest industries and the ISI itself. Prudence is thus warranted not to render bio-production investments uneconomical ex-post by neglecting to include potential price effects in investment decisions. The estimated price effects can be mitigated by increased domestic biomass supply, adjustments of international trade or by revising relevant policies. Even though the results suggest that the price effects will affect the geographical preferences for individual bio-production plants, proximity to the ISI production facility and integration benefits are more important than the proximity to cheaper biomass feedstocks. Product gas production integrated at ISI sites emerges as particularly attractive, while charcoal production exhibits sensitivity to fluctuating markets, both regarding resulting cost for the ISI, and preferred production locations

Power-to-gas and power-to-liquid for managing renewable electricity intermittency in the Alpine Region

Large-scale deployment of renewable energy sources (RES) plays a central role in reducing CO2 emissions from energy supply systems, but intermittency from solar and wind technologies presents integration challenges. High temperature co-electrolysis of steam and CO2 in power-to-gas (PtG) and power-to-liquid (PtL) configurations could utilize excess intermittent electricity by converting it into chemical fuels. These can then be directly consumed in other sectors, such as transportation and heating, or used as power storage. Here, we investigate the impact of carbon policy and fossil fuel prices on the economic and engineering potential of PtG and PtL systems as storage for intermittent renewable electricity and as a source of low-carbon heating and transportation energy in the Alpine region. We employ a spatially and temporally explicit optimization approach of RES, PtG, PtL and fossil technologies in the electricity, heating, and transportation sectors, using the BeWhere model. Results indicate that large-scale deployment of PtG and PtL technologies for producing chemical fuels from excess intermittent electricity is feasible, particularly when incentivized by carbon prices. Depending on carbon and fossil fuel price, 0.15−15 million tonnes/year of captured CO2 can be used in the synthesis of the chemical fuels, displacing up to 11% of current fossil fuel use in transportation. By providing a physical link between the electricity, transportation, and heating sectors, PtG and PtL technologies can enable greater integration of RES into the energy supply chain globally

Possibilities for CO2 emission reduction using biomass in European integrated steel plants

Iron and steel plants producing steel via the blast furnace-basic oxygen furnace (BF-BOF) route constitute among the largest single point CO2 emitters within the European Union (EU). As the iron ore reduction process in the blast furnace is fully dependent on carbon mainly supplied by coal and coke, bioenergy is the only renewable that presents a possibility for their partial substitution. Using the BeWhere model, this work optimised the mobilization and use of biomass resources within the EU in order to identify the opportunities that bioenergy can bring to the 30 operating BF-BOF plants. The results demonstrate competition for the available biomass resources within existing industries and economically unappealing prices of the bio-based fuels. A carbon dioxide price of 60 € t−1 is required to substitute 20% of the CO2 emissions from the fossil fuels use, while a price of 140 € t−1 is needed to reach the maximum potential of 42%. The possibility to use organic wastes to produce hydrochar would not enhance the maximum emission reduction potential, but it would broaden the available feedstock during the low levels of substitution. The scope for bioenergy integration is different for each plant and so consideration of its deployment should be treated individually. Therefore, the EU-ETS (Emission Trading System) may not be the best policy tool for bioenergy as an emission reduction strategy for the iron and steel industry, as it does not differentiate between the opportunities across the different steel plants and creates additional costs for the already struggling European steel industry

We need stable, long-term policy support! — Evaluating the economic rationale behind the prevalent investor lament for forest-based biofuel production

Uncertain and unstable policy support has often been claimed to be a major cause of the slower than expected deployment of technologies for production of advanced biofuels. We investigate the economic rationale of this claim by applying a real options framework incorporating uncertainties regarding energy prices, investment costs, and prevalence of policy support, in terms of an economic support per produced unit of biofuel depending on the greenhouse gas (GHG) mitigation potential. Six industrially relevant forest-based technologies for production of drop-in biofuels were evaluated. The technologies were integrated with a pulp mill and an oil refinery and are at different stages of their technical development. The results show that there is a limited economic rationale behind the claim that policy uncertainties are a major source for the stalled deployment of forest-based biorefinery technologies. Only technologies that require very high policy support to become economically viable, with associated low likeliness of investment, showed any significant sensitivity to the policy uncertainty. The results show that the stalled deployment is mainly related to the uncertainties regarding investment costs and future energy prices — and not related to the specific policy uncertainty. The results show that the stalled deployment is mainly related to the uncertainties regarding investment costs and future energy prices. This results in technologies with lower sensitivity with respect to these uncertainties have a larger chance of becoming commercially relevant investment options. The findings show that reduced policy uncertainty will neither lead to earlier investments nor improve the commercial viability of emerging biorefinery technologies. Literature citing policy uncertainty as the main hindrance for commercial deployment cannot do so from an economic perspective without simultaneously investigating the impacts from investment cost and market price uncertainties. Additionally we find that if policy support is intended to promote investment in technologies with high GHG performance, it must be directed specifically to these technologies, otherwise, it is more beneficial to invest in technologies with more favourable conditions for investment and operational costs, but lower GHG performance