Global Perspective on Production of Biotechnology-based
Bioenergy and Major Trends
Simonetta Zarrilli
United Nations Conference on
Trade and Development - UNCTAD
Rome, 12 October 2007
Why Bioenergy?
• Economic growth and increasing population will
lead to 1.6% p.a. increase in global energy demand
between 2006 and 2030 (IEA, 2006)
• Increasing fossil fuels cost, energy security
concerns and climate change preoccupations have
motivated countries to explore alternative energy
sources, including bioenergy – energy produced
through the processing of biomass (any derived
organic matter available on a renewable basis): e.g.
biogas, bioethanol, biodiesel
• Concerns about high fossil fuels prices and energy
security and efforts towards climate change mitigation
are expected to feature highly in the international
agenda in the years to come. This will keep interest for
bioenergy high
Bioenergy perspective by 2050
• Bioenergy may satisfy 1/3 of the world’s
future energy needs  key alternative to
fossil fuels
• Represents 1-3 trillion US$ market value
worldwide
• Involves some 10% of the world land
surface (Copernicus Institute for Sustainable
Development and Innovation Management)
Biofuel Classification
First Generation (from sugars, grains, or seeds)
• Biodiesel
– rapeseed, soybeans, sunflowers, jatropha, coconut, palm, recycled cooking
oil
• Ethanol
– From grains or seeds: corn, wheat, potato
– From sugar crops: sugar beets, sugarcane
Second Generation (from lignocellulose: crop residues, grasses,
woody crops)
• Biological fuels
– Ethanol via enzymatic hydrolysis
• Thermochemical fuels (most made via “gasification”)
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–
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Fischer-Tropsch liquids (FTL)
Methanol, MTBE, gasoline
Dimethyl ether (DME)
Mixed alcohols
Green diesel
First Generation Biofuels
• Use of sugar or starch crops creates limitations:
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–
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Competition for food uses
Plants optimized for food, not energy
Only part of the plant is converted to biofuel
Co-product sales often important for acceptable
economics
• Only modest energy and GHG benefits, except
with sugarcane ethanol (due to greater utilization
of the above-ground biomass)
• Can blend with existing petroleum-derived motor
fuels – minimal infrastructure change
• Large-scale experience in Brazil and USA
• Relatively high costs (except sugarcane ethanol in
Brazil) due to high feedstock cost
• Cost penalties less severe at smaller scales
Second Generation Biofuels
• Made from lignocellulosic materials
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–
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Biomass that is generally not edible
Larger fraction of the plant is converted to fuel
Plants can be bred for energy characteristics (high yield, low
inputs)
• Two generic processing routes: biological or thermochemical
• Can blend with petroleum fuels in most cases
• Substantial energy/environment benefits compared with
most 1st generation biofuels due primarily to greater biomass
usability per unit land area
• Greater capital-intensity than 1st generation biofuels, but
lower feedstock costs  higher cost-scale sensitivity
 larger scale facilities needed for optimum economics
The role of biotechnology
Biotechnology is not a source of energy, but a scientific
method that provides tools to produce energy
•Biotechnology permits the
modification/selection of
plants to enhance their
conversion to fuels
•Biotechnology can be used
for yield increase, better
biomass quality, disease
resistance
Biotechnology can be used to
facilitate the manufacturing
process (from biomass to
biofuels)
Concerns related to
environment/biodiversity
protection
More acceptable for
consumers
The International Trade Dimension
• Biomass & biofuel trade has been limited in the past as
most of the production has been for domestic
consumption
• Several countries will not be in a position to produce
enough biofuels to satisfy their demand; some
countries/regions are endowed with conditions which
allow them to produce biofuels and feedstock
competitively 
production& international trade are expected to
escalate rapidly to satisfy increasing worldwide
demand
concerns about the sustainability of
biofuels development
Flows of ethanol in 2000 (thousand tons)
Flows of ethanol in 2004 (thousand tons)
Total trade of ethanol: 3 billion liters (2004)
Total production of ethanol: 51 billion liters (2006)
Biofuels Certification Initiatives
• National governments and regional groupings: Belgium, the
Netherlands, UK, Brazil, Canada, Germany, US-California,
European Commission
• Companies: e.g. Electrabel, Essent
• NGOs: e.g. WWF
• International Bodies and Initiatives
• International Networks and Roundtables: e.g. RSPO, RSPEPFL
What for?
Ensuring that biofuels/biomass production contribute to climate
change mitigation, improved energy security and rural development,
without having detrimental side-effects on food security, land use,
environmental protection, labour conditions, etc.
Specific concerns related to biotechnology
• Several certification systems do not allow the use of GMOs. These
are for example FSC for forest and all certification systems for
ecological agriculture
• EurepGAP certification program: (i) Planting of any GMO must
comply with all existing regulations in the countries of production
and consumption (ii) The use of GMO cultivars must be agreed
with individual customers prior to planting; (iii) Suppliers must
inform all customers of any developments relating to the use of
products derived from genetic modification before engagement
• Cramer report: no indicator has been included for GMOs. The
views with regard to GMOs are divided and the discussion about
this lies beyond the field of activity of the project group
Why is certification important?
• Market access and market acceptability
• Only certified biofuels may count
towards biofuel blending targets
• Only certified biofuels may benefit from
tax breaks and other incentives
WTO Implications
• The “Like products” issue
• “Less favourable treatment” (EC-Biotech case)
• The role of non-WTO law (Cartagena
Protocol)
• « Grey area »  WTO coverage of certain
labelling programmes
Development Implications
• Bionergy is a development opportunity for
developing countries, especially if appropriate
policies are put in place; “second” generation
technologies may alleviate some of the present
shortcomings
• Access and adaptation to technology
• Developing country involvement in
sustainability certification for biofuels/biomass
THANK YOU
Simonetta.Zarrilli@unctad.org
www.unctad.org/biofuels