policies and measures to promote sustainable bioenergy

Part-financed by the European Union (European Regional Development Fund and European Neighbourhood and Partnership Instrument)

Policies and measures to promote sustainable bioenergy production and use in the Baltic Sea Region

Michael Krug Freie Universität Berlin

Environmental Policy Research Centre

Workshop Bioenergy Promotion for Iran

Berlin – 24/25 October, 2014


My presentation

• The project Bioenergy promotion

• Sustainable bioenergy production and use – the EU policy framework

• Actual initiatives and policy measures

• Lessons for policy


The project Bioenergy Promotion and its extension

• Project co-financed by EU Baltic Sea Region Programme (INTERREG IVB)

• Duration: Feb 2009- Jan 2012, extension stage Feb 2012-Jan 2014

• 33 partner organisations from 10 countries, extension stage: 13 partners

• 17 demo regions, extension stage 7

• National & regional authorities, chambers of industry/commerce/agriculture research institutes & universities

• Website: http://www.bioenergypromotion.org/

http://www.bioenergypromotion.org/


Policy • Sustainability principles & criteria for the BSR • National policy reports • Recommendations for the new EU financing instruments

• Dialogue with EU COM and energy utilities • Policy dialogue with CBSS Expert Group Baltic 21

Demo regions • Regional potential analyses • Identification of pilot projects • Regional strategies and concepts • Capacity development

The project Bioenergy Promotion – key activities

Opportunities of bioenergy for sustainable development

• Key contribution to reach the EU 2020 RES target (20%)

• Balancing source for variable electricity from fluctuating energy sources (e.g. biogas)

• Energy security and diversification of energy mix

• Lifecycle GHG emissions savings

• Job creation/business development, particularly in rural areas

• Community development and citizens’ involvement

• Regional added value creation (e.g. income, taxes)

• Potential synergies with other policy objectives (waste management, water management, biodiversity etc.)

Sustainability risks of bioenergy

• Energy cropping can negatively affect biodiversity, soil quality, water use/quality, carbon balance e.g. by intensive fertilizer/pesticide use, direct and indirect land use change)

• Unsustainable forest management (e.g. related to whole tree harvesting, stump/dead wood extraction) can have negative effects for biodiversity, nutrient balance, soil quality and soil carbon

• Deforestation and forest degradation (e.g. South America, Asia, Central Africa)

• Social risks (e.g. food security, land grabbing, rising prices for land)


Bioenergy promotion: sustainability principles & criteria

Energy service

Final energy

Con- version

Economic issues

Social issues

Biodiversity

Culti vation/ extraction

Pro- cessing

Energy efficiency

Climate change mitigation efficiency

Resource efficiency (ecosystem impact, material efficiency)

Land use

Source: EC 2014

GHG savings for forest based biomass pathways

Values are based on the default GHG emission values. SRC = Short Rotation Coppice. The calculations are based on GHG data from eucalyptus cultivation in tropical areas. Stemwood (NG) = pellets produced using natural gas as process fuel, all the other pathways are based on wood as process fuel (case 2a).

Source: EC 2014

GHG savings for biogas/biomethane pathways

Values are based on default GHG emission values. Values higher than 100% represent systems in which credits from improved agricultural management more than offset any supply chain emission. Values lower than 0% indicate systems which emit larger amounts of GHG than the fossil fuel comparator.

Sustainability risks of bioenergy – the case of using silage maize for biogas in Germany

• Dynamic market development (2004-2011) mainly due to attractive feed in tariffs and renewable raw material bonus

• Maize and other energy crops dominant feedstock

Undesirable developments Reduced crop variety, insufficient crop rotations, cultivation on sub-optimal soils Risks for biodiversity, soil quality, water resources Pressure to convert permanent pasture and peatland even in protected areas causing significant carbon emissions Inefficient energy use Increasing land rental/purchase prices


Pellet imports from non EU countries (tons/month)

Source: Jossart 2013, Bloomberg New Energy Finance, Eurostat

Wood pellet trade streams 2012/2020

Source: ECOFYS 2013

EU policy framework for the sustainability of biofuels and bioliquids (I)

Renewable Energy Directive (2009/28/EC) • Contains binding sustainability standards to be met in order to count towards

the mandatory RES targets and to benefit from financial support.

Minimum lifecycle GHG savings of 35% (2017: 50%; 60% for new installations)

No conversion of land with high biodiversity value

No conversion of land with high carbon stock (forested areas, wetland, peat land)

Reporting requirements referring to soil, water, air quality, social criteria

Indirect land use change not considered yet

By now 19 certification systems approved to demonstrate compliance

EU Commission proposal COM(2012)595

Limit the contribution of conventional food-based biofuels (i.e. from cereals, sugars, oil crops) to the renewable energy target in transport to 5%

Increase of the minimum GHG saving threshold for new installations to 60% (2014)

Indirect land use change to be included in the reporting of fuel suppliers and MS

Incentives for advanced biofuels with no or low land use change: algae, straw, waste resources etc. (multiplication factor of 4!)

EU policy framework for the sustainability of biofuels and bioliquids (II)

EU policy framework for solid and gaseous biomass used in electricity, heating and cooling (I)

Biomass Report COM 2010(11) Non-binding recommendations for MS

Member states which introduce sustainability schemes shall in principle apply the same criteria as contained in the RED for for biofuels/bioliquids

Methodology and GHG default values for some bioenergy chains

National support schemes to differentiate in favour of plants with high conversion efficiencies

Sustainability schemes shall apply only to larger energy producers

EU policy framework: solid and gaseous biomass used in electricity, heating and cooling (II)

Decision of binding criteria to be postponed for the period after 2020

Updated GHG values and calculation methodology

70% lifecycle GHG savings as “good practice”

Limited sustainability risks

Further research to assess the role of biomass pathways that can lead to negligible or negative GHG savings or other sustainability impacts

EU COM Staff Working Document SWD (2014)259

Biomass used for electricity, heating and cooling - actual developments

• Only few sustainability schemes following the EU recommendations (e.g.

UK, BE, NL)

• Industry-led sustainability initiatives (e.g. Sustainable Biomass Partnership, E.ON, Drax, regional and municipal energy companies)

• Voluntary sustainability agreements (e.g. negotiated agreement Vattenfall-Berlin, Green Deal on sustainability reporting for solid biomass/NL)

• Global initiatives (e.g. GBEP, Roundtable of Sustainable Biomaterials)

• Sustainability standards (e.g. ISO 13065, CEN TC383, Blue Angel)

• Certification systems (e.g. ENPlus, ISCCplus, Green Gold, FSC, PEFC)

Policies and measures to support sustainable bioenergy production and use in the BSR

Integration of sustainability considerations into support schemes

Special boni for using environmentally beneficial material (e.g. manure, landscape management material) under feed in tariff systems (DE, LV)

Financial support in favour of highly efficient cogeneration plants (e.g. CHP bonus DE, heat premium FIN)

Minimum energy efficiency requirements for bioenergy plants (DE, LV, LT)

Negotiated agreements (DE)

Guidelines for wood energy harvesting (FIN, SE)

R&D programmes for environmentally sound energy crops (DE)

Governments rely mainly on cross-sector legislation (e.g. ambient air/water/soil protection, nature conservation etc.)

None of the governments in the BSR has introduced any binding sustainability scheme following EU COM recommendations

Some conclusions from Bioenergy Promotion

• The use of renewable energy sources is not sustainable per se

• Biomass is a renewable, but constrained natural resource with comparatively high demand of land. Its use should be as efficient as possible.

• Consider full life-cycle impacts as well as direct and preferably indirect effects. Integrate sustainability considerations into support schemes.

• The most promising pathways from a Sustainable Development perspective are those that use locally available residues as well as organic waste streams and which employ efficient conversion processes.

• Promote multiple uses of biomass and integrated bioenergy systems, cascading systems, industrial and agricultural symbiosis systems

• Avoid inefficient uses of biomass (e.g. co-firing of pellets in electricity only plants, biogas for electricity without surplus heat utilization)

Thank you very much for your attention! [email protected]

Additional slides [email protected]


Category Sustainability scheme/initiative Minimum GHG savings (%) Fossil fuel comparator

EU sustainability framework for solid/gaseous biomass

Biomass Sustainability Report COM (2010)11 35%

EU-wide fossil fuel comparators for different technologies

National/regional sustainability schemes

UK Renewable Obligation 2015: 66% 2020: 72% 2025: 75%

EU wide fossil fuel comparator for electricity

Cramer criteria/Corbey Commission (NL) 70% National fossil fuel comparator for electricity

Corporate sustainability schemes and voluntary agreements

Initiative Wood Pellet Buyers 60% Reference fossil fuels

Agreement between the city state of Berlin and Vattenfall Europe 50%

EU-wide fossil fuel comparators in accordance with COM(2010)11

Green Deal (NL) 60% Reference fossil energy

Project based initiatives

Biomass Futures (IEE)

55% (2015) 60% (2020) 75% (2030)

Natural gas

Bioenergy Promotion (EU Baltic Sea Region Programme) 80% Fossil fuel based

energy systems


Feed in tariffs for electricity from biomass and biogas (in ct/kWh, 1/2014)

Source: BMU (2013) Assumption: Plant commissioned in 2014, tariff digression of 2% p.a. (except bonus for input material)

Capacity

Solid biomass and biogas (except from bio-waste) Special category: Fermen-

tation of bio-waste

Special category: Fermen-tation of manure ≤ 75 kW

Bonus for electricity from

bio-methane Basic

remuneration Bonus for input material

Category E1 Category E2

(Environmentally beneficial material)

Energy crops etc.

Bark, forest residues

Straw landscape management material, etc.

Manure

≤ 75 kW 13,73

6.0 8.0 15.37 24.01 ≤ 700 Nm3/h: 3.0 ≤ 1,000 Nm3/h: 2.0 ≤ 4,000 Nm3/h: 1.0

≤ 150 kW 6.0 8.0 15.37 -

≤ 500 kW 11.81 6.0 8.0 15.37 -

≤ 750 kW 10.56 5.0 2.5 8.0 6.0 13.45 -

≤ 5 MW 10.56 4.0 2.5 8.0 6.0 13.45 -

≤ 20 MW 5.76 - - - - 13.45 -

Characteristics of sustainable bioenergy systems

• Priority for the use of residues, by-products and organic waste

• High GHG savings, contribute to the decarbonisation of the energy system

• Efficient use of natural resources (land, soil, water etc.)

• Efficient production and use of biomass and bioenergy (energy yield ratio + energy conversion efficiency)

• Closed material & nutrient cycles (e.g. use of digestate, wood ash recycling)

• Local use of biomass, low transportation requirements

• System approach

• Lifecycle approach (land use, harvesting, conversion, transmission and use)

• Distributed, combined & multiple uses of biomass

• Contribute to strengthen regional economy and regional value creation

Part-financed by the European Union (European Regional Development Fund and European Neighbourhood and Partnership Instrument) Source: Rykmanns 2011, EC 2010

GHG savings of selected bioenergy routes 80%

Biogas plants in Germany 1992-2014


What is a ”bioenergy village”?

• In Germany 148 “bioenergy villages” • >50% of electricity and heat demand

covered by RES, particularly bioenergy

• often with small scale DH grids based on biogas and woody biomass plants

• Local citizens are actively involved in developing the ideas and making the decisions; • The plants are at least partly owned by the heat customers or local farmers • The biomass is of local origin and value is created locall; • Energy efficiency measures are considered and implemented


Bioenergy village Jühnde

policies and measures to promote sustainable bioenergy

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