Biofuels: The Next Generation: The Energy Technology Roadmap
Biofuels: The Next Generation: The Energy Technology Roadmap
Biofuels: The Next Generation: The Energy Technology Roadmap
Supported by
At the second in a series of three high-level academic
policy debates on the energy R&D challenge, The Energy
Difference, key ideas and recommendations have emerged
to better leverage Europe’s opportunities and challenges for
next-generation biofuels.
Words
David Pringle
Design
Peter Koekoek
Editorial production
Gail Edmondson
Photography
Bernard De Keyzer
www.sciencebusiness.net
Supported by Hosted by
BIOFUELS: THE NEXT GENERATION
Executive Summary
Solar panels, wind turbines and electric cars have become the Certain types of second-generation biofuels are based on waste
most visible symbols of a global shift to renewable energies. and residues that can be harvested without altering current
But bioenergy holds significant potential to help speed the agricultural land use patterns. Others will require the use of
transition to a more sustainable and secure energy system. By genetically modified organisms (GMOs). Policy makers may
2050, a new generation of sustainable biofuels could provide therefore need to launch an informed public debate on GMOs
over a quarter of the world’s total transport fuel, according in specific relation to biofuels, including clarification of the
to a recent report by the International Energy Agency. different forms of genetically modified organisms, such as crops
And biomass-based fuels offer the only viable low-carbon on open release, through to bacteria or fungi, which might only
alternative to high energy density liquid fuels, including diesel be used in contained systems, and the risks posed.
and jet fuel.
A new generation of biofuels “done well” can play an increasing
To achieve that scenario, researchers are developing fuels from role in sustainable mobility over the next decade, and reduce
wastes, residues and non-fuel crops that are environmentally demand for oil – a strategic policy imperative. At the same
and socially sustainable. But a number of scientific and policy time, innovations needed to produce sustainable biofuels
hurdles remain. At a 28 June 2011 Science|Business symposium, could benefit the agricultural sector broadly, leading to more
researchers, industry experts and policymakers debated the productive and environmentally sound land use.
challenges of bringing second-generation biofuels to market – a
key requirement for meeting Europe’s goals for cutting carbon But harmonised policies for biofuels deployment – including
emissions in transportation. The symposium was the second standards, regulation and sustainability criteria – will be vital
in a three-part series of high-level academic policy debates on to ensure their market success. Mandates must focus on truly
energy R&D in Brussels, supported by BP. sustainable biofuels, those with low carbon emissions and a low
cost structure.
The good news: new technologies and practices are leading to
more-sustainable biofuels. Significant commercial rollout by The timing for a renewed focus on bioenergy innovation and
2020 is feasible, as long as public support to ensure their market sustainable biofuels agenda is propitious. The European
deployment remains a priority. But these second-generation Commission’s Strategic Energy Technology Plan has laid out
biofuels will require a complex systems-based approach to an ambitious 10-year plan to invest in renewable energies,
developing innovation policy. A biofuel that slashes carbon including a €9 billion in public-private partnerships for bioenergy
emissions, for example, is not sustainable if its production technologies and demonstration plants. As the Commission
provokes regional water shortages or compromises biodiversity. and national governments decide in the coming years where
to channel public funds, they have an important opportunity
The criteria to measure the sustainability of any given biofuel to speed progress towards Europe’s renewable energy goals
must cover a wide range of environmental and social factors by encouraging biofuels done well, or those which are truly
and include metrics on resource use efficiencies (such as total sustainable, based on a systems approach to energy innovation.
energy inputs versus outputs, crop yields versus inputs, etc) as
well as direct and indirect environmental impacts. Researchers This report summarises the half-day of debate at the symposium
will have to tackle the development of sophisticated land and and offers key ideas and recommendations to accelerate the
water management systems, plant productivity increases and deployment of sustainable biofuels. While we quote some
land optimisation – challenges that extend far beyond the of our 35 roundtable guests in this report, their opinions are
technology of engineering biofuels and encompass agricultural personal and we do not wish to imply they endorse all or any of
and forestry policy. At the same time, policymakers must ensure the individual suggestions for change presented here. Our list
that the transport industry, energy suppliers and environmental of recommendations emerged from the debate and the force of
groups contribute their expertise to the development of second- individual ideas. The symposium took place at the Royal Flemish
generation biofuels. Academy of Belgium for Science and the Arts.
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RECOMMENDATIONS TO BREAK THE BIOFUELS LOGJAM
For policymakers
■■ Develop an integrated, long-term policy framework for biofuels that
addresses health, energy, environment, agriculture and transport issues
■■ Set clear long-term targets for regulating CO2 emissions
■■ Harmonise biofuels standards, regulation and sustainability criteria across
Europe to overcome fragmented markets
■■ Use the Common Agricultural Policy to incentivise farmers to collect their
agricultural residues and to produce feedstocks for sustainable biofuels
■■ Integrate carbon offsets from biofuels into the Emissions Trading System
■■ Tap structural funds in key regions to support biofuel demonstration projects
■■ Commission independent research to establish the impact of biofuels on
food prices
■■ Mandate the use of the most sustainable biofuels for transport. Fuels should
be ranked on rigorous sustainability criteria which reflect total resource
efficiency
■■ Target market incentives specifically at the import and production of
sustainable biofuels with low carbon emissions and a low cost structure
■■ Educate the public on the use of GMOs
Here’s a tough problem in innovation policy. You have an So-called first-generation biofuels are widely used in Brazil, the
important alternative energy source in development and the US and some other countries, but policymakers everywhere are
technology is maturing. The challenge is getting it to market. concerned about their impact on food prices and biodiversity,
Which production process should be used? How much will and say they lack good information on second-generation
people pay for it? How should it be regulated? How should fuels. Advanced biofuels based on lignocelluose address these
product standards be set? And who will fund demonstration? concerns, but some solutions rely on genetically modified
In short, how do you get this technology out of the lab and plants, generating further controversy.
into the market?
The European Commission’s Strategic Energy Technology (SET)
That’s the conundrum of second-generation biofuels today. Plan acknowledges the key role bioenergy will play in the
Around the world, a first generation of biofuels derived from transition to a more sustainable energy system. It envisions
crops has been on the market for more than a decade, but a bioenergy will contribute 14 per cent of Europe’s energy mix by
backlash against fuels that appear to compete with food or 2020, including up to 10 per cent of transport energy, up from
result in destruction of rainforests has weakened public support 4 per cent in 2009.
for biofuels in general and slowed investment. More sustainable
solutions are in the offing, but everybody involved – regulators, Biofuels are the main alternative for reducing carbon emissions
industry, investors, researchers – is uncertain how to proceed. from cars, trucks, tractors, planes and ships, which for now
The result is a pressing need for an informed debate about require liquid fuel. In May, the International Energy Agency
second-generation fuels. published a roadmap projecting that biofuels can meet 27
per cent of global transport’s fuel demands by 2050, up from
“The ethanol industry has effectively stalled around the world… 2 per cent today. The development of renewable energies has
there is very little new capacity being developed anywhere, be become even more urgent as support for nuclear power wanes
it from sugar cane in Brazil or grains in the US and Europe,” said following the recent crisis at the Fukushima Daiichi nuclear
Oliver Mace, technology, strategy and regulatory affairs manager plant in Japan.
at BP Biofuels, speaking on 28 June 2011 at a Science|Business
symposium, The Energy Technology Roadmap: The Case of But to tap the potential of advanced biofuels, policymakers
Biofuels. must tackle the ethical dilemma. “You are damned if you do and
damned if you don’t,” said Jeremy Woods of Imperial College
The challenge of bringing second-generation biofuels to market London, who is co-director of the interdisciplinary Porter
highlights the difficulties of developing new energy technologies, Alliance and chair of the UK working group of the Scientific
explored in a three-part series of symposia on energy R&D Committee on Problems of the Environment.
organised by Science|Business. The first symposium, The
Energy Difference, took place in Brussels earlier in the year,
on 11 March. At the second symposium in June, researchers,
industry experts and policymakers debated how to best support
innovation in second-generation biofuels – a key requirement
for meeting Europe’s goals for cutting carbon emissions from
transport.
Policy dilemma
Despite that conundrum, the US has moved more decisively to Specifically, European governments need to reward innovation
create incentives for advanced biofuels, including mandates for that leads to carbon emission reductions through better-
using lignocellulosic biofuels. To keep pace with next-generation performing biofuels. Policies to bridge the last step to full
biofuels research, Europe needs to bolster R&D efforts and commercialisation should be consistent across Europe. They
channel support to demonstration plants. Above all, it needs could include higher premiums for second-generation biofuels
a clearer policy framework and strong commitment to trigger with strong sustainability characteristics and the potential, when
investment by industry. fully deployed, to be produced at lower costs. Sustainability
criteria must also be sufficiently strict.
Citing the large capital costs, technology challenges and
regulatory and market risks, experts at the symposium agreed Lars Christian Hansen, regional president Europe of Novozymes
the European Commission and Member States need to move and chair of the steering committee of the European Biofuels
quickly to set clear long-term guidelines, harmonise standards Technology Platform, agreed progress will depend on Europe’s
and regulations, and apply rules uniformly across all Member ability to develop a clear framework for investors to gauge risks
States to spur investment by industry. and returns. “We need the long-term policy… then industry is
going to figure it out.”
“You will get much more investment if you have certain policy
and uncertain technology. Right now, we have the opposite,”
said Jorgen Henningsen, senior energy and climate advisor at
the European Policy Centre. “Unless the policy framework is
improved, there won’t be the research.”
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Beyond food versus fuel
The conflict over using food crops for fuel, triggered by first- One major problem is that while information about advances in
generation biofuels such as corn-based ethanol, has led second-generation biofuels is appearing in scientific journals, it
scientists to search for “sustainable” second-generation biofuels is not feeding through into the public debate. The lack of clear
based on grasses, plants, wood and residues that do not directly public information exacerbates the policy impasse. “There is
compete with food crops and can be grown on marginal lands. a scarcity of knowledge among the members of the European
Parliament… The complexity of the renewable energies is a
Scientists working on second-generation biofuels are pioneering key issue,” said Csaba Tabajdi, a member of the European
a whole-life-cycle approach to the research and development Parliament’s Committee on Agriculture and Rural Development.
of new energy sources, analysing total energy inputs needed
for their production and their direct and indirect impact on the
environment. “We are starting to think much more holistically
about land and the products of land,” said Jeremy Woods. “We
are embarking on a new transition in energy R&D. In that sense,
energy R&D and biofuels link a whole set of issues that haven’t
been linked before.”
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“Farmers just can’t take the level of risk that
may be required at that end of the value
chain. The only way we have found to solve
this so far is to participate in the whole
value chain from the fields and the crops
right through to the marketplace… We have
actually done that in Brazil.”
- David Eyton at BP.
The SET plan calls for €9 billion of public and private money to
be invested in bioenergy R&D over the next 10 years, primarily
to build up to 30 pilot and pre-commercial demonstration plants
across Europe. But the majority of the funding must come from
industry and Member States’ R&D budgets.
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The facts on genetically modified organisms (GMOs)
Some of the most promising approaches to bringing the production
cost down for advanced biofuels rely on genetic science which includes
advanced breeding strategies and genetically engineered organisms.
■■ GMOs are plants, animal, bacteria or fungal species whose genetic structure (DNA)
has been modified by scientists. Genetic modifications occur constantly in nature
and drive evolution.
■■ A GMO is created by adding genes from another species to carry out a specific role
or produce a chemical that is not produced by the organism. This modification may
make plants more productive or more disease resistant.
■■ In the case of biofuels, researchers are working to modify some bacterial species to
ferment five-carbon sugars as well as the six-carbon sugars they are able to ferment.
The goal is to help bring costs down on sustainable biofuels.
■■ The release of GMOs into the environment remains highly controversial in Europe
where concerns about the leakage of traits conferred by the genetic modification
of one species into, for example, weeds, perhaps now outweighs the food safety
concerns that originally dominated public debate.
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What Are Second-Generation “Sustainable” Biofuels
There is no universal agreement on the definition of second-generation
fuels, but the term generally encompasses fuels from wastes, residues
and non-food crops (ie lignocellulose to fuel) that are environmentally
and socially sustainable.
First-generation biofuels are those made from food crops. They are made from the
fermentation of sugar cane, sugarbeet or cereals into ethanol and from the esterification
of vegetable oils into biodiesel.
The principles defining a sustainable biofuel should include the following metrics:
■■ Carbon conservation
■■ Preservation of biodiversity
■■ Soil conservation
■■ Sustainable water use
■■ Air quality
■■ Compliance with applicable laws
■■ Contracts and subcontractors
■■ Fair labour practices
■■ Social issues including health and safety
■■ Land rights
Criteria for each metric should be measured and verified against an agreed set of
internationally accepted standards.
The technologies for second-generation biofuels are maturing but commercialisation will
depend on the price of oil, the price of enzymes needed to convert feedstocks to fuel and
financial incentives. If governments support these technologies and address economic
and market issues, second-generation biofuels are likely to be commercially competitive
without subsidies around 2020.
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The global R&D challenge in second-generation biofuels
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Fixing the policy framework
Harmonised policies for biofuels deployment are vital to “There is insufficient discrimination in policy at the moment
speeding new sustainable fuels to market. “Industry will around the key attributes that we want biofuels to have,” said
never say ‘no’ to money, but really what is needed right now Paul Jefferiss, head of policy, BP. “If we can identify what those
is the policy framework,” said Novozyme’s Hansen. Instead of attributes are and reward and incentivise those attributes, then
providing huge subsidies to industry, he said the Commission we will see industry investing in that general direction.” The
should focus on creating a positive environment for investors, attributes, he added, are the potential for significant carbon
including guidelines for sustainability, harmonised standards abatement, and the potential for cost reduction and then
and EU-wide regulations. sustainability in various forms but with clear, quantifiable and
verifiable metrics and indicators.
Hansen said EU policymakers should take two steps. First, they
should ensure the necessary biomass is in place by using the
Common Agricultural Policy to incentivise farmers to collect an
appropriate share of their agricultural residues or produce crops
for advanced biofuels. They should also introduce much more
effective mechanisms to incentivise a shift towards the best-
performing biofuels, including a specific mandate for advanced
biofuels. If policymakers treat all biofuels equally, participants
argued, the sector won’t necessarily shoulder the risks involved
in a continual evolution to more sustainable biofuels.
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Creating sustainable fuels
Because most biofuels in use today are derived from crops Some scientific studies that indicate concerns about a dramatic
that could also be used for food, they have triggered growing impact of biofuels on food prices are over-exaggerated. Jeremy
concerns over future food shortages and spiralling food prices. Woods of Imperial College London believes the growing use
of biofuels may have only contributed a few per cent to the
“Is it ethical to produce biomass if there is a scarcity of food increase in food prices in recent years, noting that the rising
in a lot of countries in the world?” MEP Csaba Tabajdi asked price of crude oil has had a much greater impact. “The future
the symposium. “In thirty years, there will be two more billion of agriculture is very sensitive to fuel prices,” he said, pointing
people in the world, but there will be a scarcity of food, a out that greater use of second-generation biofuels may actually
scarcity of fresh water. We should find a balance between these keep a lid on food prices by lowering the use of fossil fuels in
two elements.” fertilisers, tillage, harvesting, transport, storage and cooking.
“There is a huge global resource of biomass. Eighty per cent
One way through the current impasse would be to run carefully is in the form of lignocellulose material. [Converting a fraction
targeted trials aimed at addressing policymakers’ concerns that into energy] is a enormous prize if done well, if done in a
about the land-use implications of second-generation biofuels. sustainable way,” Woods told the symposium.
For example, so-called suitability studies could determine
the extent to which dedicated fuel crops, such as willow,
miscanthus, switchgrass and agave, can be grown on marginal
or degraded land and how they can be integrated into the
existing agricultural and ecological systems.
Photo: Jeremy Woods, Co-Director, Porter Alliance, Lecturer and chair, UK working group of
the Scientific Committee on Problems of the Environment (SCOPE), Imperial College London
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Figure 3: Global energy use in the transport sector (left) and use of biofuels
in different transport modes (right) in 2050 (BLUE Map Scenario)
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Seeking standardisation
Another key challenge for European policymakers is to Another related concern is whether drivers will buy biofuels at
harmonise biofuels standards across the continent – including the pump if they don’t understand what they are buying or are
standards for fuels and engines – to help both biofuel producers faced with a confusing array of options. “We need to consider
and users access economies of scale and lower costs. “We need the demand side of the equation – somebody has to buy these
the common introduction of biofuels in all Member States products and services,” noted Kyriakos Gialoglou, policy officer,
– that’s a key point,” said Muriel Desaeger, senior principal consumer policy, DG Health and Consumer Policy, European
technologist, Energy Research Group, Toyota Motor Europe. Commission. “We need to ensure people are not confused when
“The Member States have plans to move to 10 per cent of they are buying. We need to think about how to communicate
transport fuels from renewables. We have analysed them all in clearly what the sources are and we need to clarify the impact
detail and there are clearly not aligned. That will provide major of fuel on food.”
confusion for the consumers and for harmonisation of technical
developments.”
Building up the feedstock necessary to underpin a larger biofuel Most farmers are not prepared to take that kind of risk. That
sector is also going to need new thinking in the agricultural has led to some energy companies, which are experienced in
sector. That’s because most of the second-generation of biofuels high-risk capital projects, diversifying into farming. “Different
are derived from perennial plants rather than the annual plants players in the value chain have hugely different risk appetites,”
that are the mainstay of arable farming. As a result, farmers said BP’s Eyton. “Farmers just can’t take the level of risk that
may have to dedicate fields to specific crops for longer periods may be required at that end of the value chain. The only way
of time, incurring greater risk. we have found to solve this so far is to participate in the whole
value chain from the fields and the crops right through to the
“Farmers make the decision,” Angela Karp, director, Centre marketplace… We have actually done that in Brazil.”
for Bioenergy and Climate Change, Rothamsted Research, UK,
told the symposium. “They must be confident that when they One way to reduce the level of risk across the biofuels supply
plant the crop, there will be a market for it. If you commit to a chain would be to create a greater diversity of sources of
perennial crop, you are talking about 20 years minimum. If you feedstock and to develop a greater range of usage for each
change your policy two or three years after a farmer planted, it feedstock. But achieving that diversity is likely to depend on
leaves them completely stranded.” greater investment in biofuels R&D and demonstration plants.
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A systems approach to innovating in biofuels
Many of the problems of bringing second-generation biofuels Trading Scheme (by integrating carbon offsets from biofuels
to market lie outside the lab. Ultimately, the emergence of into the ETS). Governments should consider the potential role
biofuels as a significant source of energy for Europe may depend of biofuels in reducing oil demand and damping down oil price
on an unprecedented alliance between the energy sector, volatility. Finally, regulators need to set clear objectives on
the environmental movement, agriculture and the transport carbon emissions goals and harmonised rules across Europe.
industry. But this kind of cross-disciplinary collaboration is Clear rules are key to driving the innovation system for biofuels.
unlikely to happen without a clear vote of confidence in a new R&D programmes and incentives alone will not suffice.
generation of sustainable biofuels from European governments
– and a game plan for creating a harmonised European market. The first technologies for creating second-generation biofuels
are at hand – and more are in the pipeline. Researchers working
To create momentum for “biofuels done well”, policymakers in this field are pioneering a whole-life-cycle approach to
need to set up the missing regulatory framework, taking a energy R&D. But getting these sustainable biofuels to market
flexible approach that manages risk at both ends of the value will require a determined policy approach that bridges all the
chain, from farm to pump. Policies must also be better integrated interests touched by this promising technology.
with the Common Agricultural Policy, and with the Emissions
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The energy technology roadmap - The case of biofuels
Participants of the Science|Business symposium
Royal Flemish Academy of Belgium for Science and the Arts - Brussels, 28 June 2011
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