17th ICABR Conference
INNOVATION AND POLICY FOR THE BIOECONOMY
Navigating in the Fog: Biofuels
Production and Sustainable
Development
Simona Lubieniechi and Stuart Smyth
University of Saskatchewan
Outline






Rationale for research
Introduction
Background
Study design and methodology
Results and analysis
Conclusions
Rationale for research


Expert Delphi survey identified the leading
economic and regulatory barriers for the
Canadian biofuels industry (Lubieniechi and
Smyth, 2011).
Top three barriers identified:



The absence of a co-ordinated and integrated
federal-provincial policy framework;
Lack of technological development for 2nd generation
biofuels;
An integrated biofuel industry vision within
sustainable development policies.
Introduction: Sustainability



“…development that meets the needs of the present
without compromising the ability of future generations
to meet their own needs.” (UN – WCED).
When sustainability frameworks and initiatives are
applied to biofuels, sustainability should comprise
environmental, economics and social categories,
effects and indicators (Hecht et al., 2009).
Sustainability is based on the interdependence
between human societies and the natural
environment (Fiksel et al., 2012).
Introduction: Certification schemes


Biofuel certification schemes started as solution
to sustainability concerns.
Increase in the number of certification schemes,
employing different criteria, areas of definitions,
approaches and methodologies (Scarlat and
Dallemand, 2011):


‘+’ biofuel certification schemes can lead to standards
improvement and beneficial competition;
‘-’ inconsistent schemes, loose performance
parameters and different overall requirements for
different types of biofuels.
Background: Canadian biofuel industry



Biofuel producers in the US and EU are required to
meet environmental sustainability standards
Unlike the EU and US, Canada relies on a voluntary
certification program to promote sustainability in the
biofuels industry (Elbehri et al., 2013)
In 2010, the Canadian federal government developed
non-binding ‘Guiding Principles for Sustainable
Biofuels in Canada’ that refer to legal, environmental
and social concerns.

Goal: to identify and acknowledge ‘areas of best practices
and Canadian strengths related to sustainable biofuels
production’ (Natural Resources Canada, 2010; Mondou and
Skogstad, 2012).
Background: Canadian biofuel industry

Canada participates in developing common
sustainable practices in three global initiatives GBP,
GSBP and ISO.

The US and EU sustainability criteria are expected to
gradually affect all biofuel producers, biofuel markets
and even all agricultural commodity markets (FAO,
2012).

Difficult for Canadian ethanol producers to export into
the US or EU biofuels market and will need to adopt
the global market requirements.
Background: EU

The EU sustainability criteria (2010) are set out in the Renewable
Energy Directive and concentrate on GHG savings, high biodiversity
value land, high carbon stock land and agro-environmental practices.

Initially required: 20% share of renewable energy in final energy
consumption and a 10% share of energy from renewable sources in
transport by 2020.

In 2012, the EC amended the legislation, capping the share of 1st
generation biofuels at 5%.

Motivations: stimulate advanced biofuel development, consider ILUC
factors when assessing biofuels GHG performance, etc.

Biofuels must emit a minimum of 35% less GHG than fossil fuels
replaced, 50% by 2017.
Background: the US

US biofuel mandates require renewable fuels that satisfy
environmental sustainability criteria such as GHG emissions savings
relative to fossil fuels and ILUC restrictions.

Two main policies: Renewable Fuels Standards 1 and 2
 Introducing lifecycle GHG performance threshold standards, so
renewable fuels emit fewer GHG than the fuel replaced

Sustainability requirements in the RFS2 refer to restrictions on the
GHG emissions of renewable fuels, types of feedstock used, types of
land that can be used to grow and harvest the feedstocks.

The RFS2 requires specific GHG emission reductions: 20% for 1st
generation, 50% for advanced and 60% for cellulosic biofuels.

The methodology used for calculating GHG emissions should include
all lifecycle GHG emissions of fuel, including ILUC emissions
Background: Brazil

Brazil is considered to be the worlds’ most efficient ethanol
producer (Sorda et al., 2010; Solomon, 2010).




Advantages: its history of ethanol use, well established infrastructure
and low cost feedstock.
Industry is viable largely without government subsidies (Nass et al.,
2007, Solomon, 2010).
The Brazilian ethanol mandates: initially increased from 18% to 25%,
but decreased in 2011 to 20% due to low sugar cane production and
low ethanol supply.
Environmental and social aspects:


Mechanization of the harvest and phasing out of the sugarcane
burning, higher efficiency in water use, investing in pipelines for
ethanol transportation and using sugarcane residues for electricity
production.
Criticisms due to the low quality manual preformed jobs, low wages
and child labour, these issues have been addressed through
government social programs.
Background: Delphi study design and
methodology






The Delphi survey method is an adaptable research technique employed
as an iterative and interactive process that collects opinions on specific
issues or phenomena from an anonymous group of experts (Skulmoski, et
al., 2007).
The method allows for the gathering information and structuring a group
communication process with a large number of experts when there is
limited information on specific issues (Rowe and Wright, 1999).
2 rounds of the survey administered from May to Dec. 2012 using an
online survey tool.
Each round of the survey was available for 4 weeks with weekly
remainders.
First survey round comprised mainly open end questions seeking
respondents’ opinion on sustainable development of the Canadian biofuels
industry.
The second round aim was to rank the answers obtained in the first round
according to their importance.
Results and analysis
Table 1: Respondents demographics
Gender (F-M) Age range
(36-55)
Managers
Round 1
Round 2
Academics/
researchers
Round 1
Round 2
Work
11.1%-88.9%
55.6%
Private sector – 100%
0-100%
60%
Private sector – 100%
13.3%-86.7%
12.5%-87.5%
53.4%
50%
Academic – 80%
Academic – 100%
Education
MSc – 44.5%
PhD – 33.3%
MSc – 60%
PhD – 20%
PhD – 93.3%
PhD – 100%
Table 2: Importance of sustainability
Academia
Managers
Total
Range
Average
Range
Average
Range
Average
Economic sustainability for biofuels is
critical. Too much public sector
subsidization and support will not be
economically sustainable.
1-8
2.8
1-9
3.7
1-9
3.3
Sustainability is assumed to be based on
environmental, social, and economic
performance over time
1-6
2.9
1-7
4.2
1-7
3.6
New economic opportunity for such factors
as: new markets for biomass, employment,
potential for technological innovation,
economy diversification, export opportunity,
new value added, renewable energy source
3-8
5.4
1-6
4.0
1-8
4.7
Using life cycle assessment and carbon
footprint calculations to establish whether
biofuels are environmentally sustainable for
such factors as: climate change, water
availability, food availability, biodiversity,
energy security, land use efficiency, air
quality, GHG mitigation
1-11
4.3
1-10
5.3
1-11
4.8
Table 3: Priorities for sustainable development of
biofuels in Canada
Academia
Managers
Total
Range
Average
Range
Average
Range
Average
Biofuels to be cost competitive
with alternatives
1-19
6.8
1-14
4.8
1-19
5.8
Economic sustainability
1-19
8.2
1-7
3.3
1-19
5.8
Realistic prices on carbon
1-20
5.9
1-18
6.8
1-20
6.4
Government and industry should
increase net environmental and
societal benefits of biofuels
1-13
7.8
3-11
7.2
1-13
7.5
Substantial investment in
biomass feedstock R&D
2-18
6.6
1-14
8.5
1-18
7.6
Table 4: Sustainability challenges that biofuels best
address
Academia
Managers
Total
Range
Average
Range
Average
Range
Average
Environmental benefits such as
utilization of renewable resources
1-9
5.0
1-3
2.4
1-9
3.7
The need for an objective
analysis of economic and
environmental sustainability of
biofuel development in Canada
1-11
2.6
1-10
5
1-11
3.8
Climate change
3-12
5.3
2-8
4
2-12
4.7
Biofuels can potentially be
carbon neutral
2-12
5.4
1-9
4.6
1-12
5.0
Reduce reliance on fossil fuels
1-9
5.3
1-11
4.8
1-11
5.1
Table 5: Policy measures that enhance sustainability
Academia
Managers
Total
Range
Average
Range
Average
Range
Average
R&D invested into biofuels’
institutional, economics and
policy development
1-10
4.5
1-4
2.8
1-10
3.7
Price carbon emissions
1-7
2.6
1-15
4.8
1-15
3.7
Establish the metrics associated
with sustainability
3-8
5.6
1-8
5.0
1-8
5.3
Targeted carbon tax to support
sustainable development
1-12
6.4
1-12
6.0
1-12
6.2
Revenue neutral carbon tax would
put all fuels on even footing
3-15
7.9
1-11
4.5
1-15
6.2
Table 6: Communicating with the public
Academia
Managers
Total
Range
Average
Range
Average
Range
Average
Communicate objective
information without political
bias
1-8
4.9
1-10
5.5
1-10
5.2
Have a realistic price on carbon
1-19
6.4
1-11
4.5
1-19
5.5
Assess what really drives food
prices up
2-18
7.6
1-10
6.0
1-18
6.8
Show biofuels net benefits
4-11
7.0
1-15
7.3
1-15
7.2
Include market and non-market
benefits, economic and social
reasons
2-9
5.0
7-13
9.5
2-13
7.3
Table 7: Indicators/metrics to measure
sustainability
Academia
Managers
Total
Range
Average
Range
Average
Range
Average
Economic, social,
environmental impact
1-7
3.0
1-8
5.3
1-8
4.2
GHG
1-10
5.0
1-5
3.5
1-10
4.3
Measure economic impact
through cost-benefit analysis
1-9
3.1
2-10
7.3
1-10
5.2
Energy balance
1-11
6.1
1-11
4.8
1-11
5.5
Profitability
3-14
6.4
1-10
4.8
1-14
5.6
Policy implications/challenges




Respondents strongly indicated that economic
sustainability and environmental sustainability are
intricately connected
Competition in the trade of biofuels is increasing and
sustainability is becoming a marketing tool for biofuels.
Biofuel industry needs to be profitable to allow for
beneficial environmental impacts to develop and this is
mutually dependent upon environmental benefits
occurring to ensure profitability.
Sustainability criteria are an increasing part of the
regulatory environment for biofuels.
Conclusions



The relationship between sustainable
development and biofuel production is likely to
increase in importance, as is witnessed by
policies in the EU, US and Brazil.
Canada to develop a more definitive framework
for sustainable development to be globally
competitive.
This framework will need to be balanced
between economic sustainability and
environmental sustainability, as these concepts
are mutually inclusive.
This research has been funded by
Genome Canada and Genome Prairie
Thank you!