Biomass role in achieving the Climate Change & Renewables EU policy targets. Demand and Supply dynamics under the perspective of stakeholders . IEE 08 653 SI2. 529 241 Deliverable 3.5: Biomass availability & supply analysis Summary of main outcomes for policy makers Authors: IIASA: Alterra: CRES: Hannes Böttcher Berien Elbersen Efthimia Alexopoulou July, 2011 Content Content ......................................................................................................................................................... 2 Preface.......................................................................................................................................................... 3 1 Introduction .............................................................................................................................................. 4 2 Methodology ............................................................................................................................................ 4 2.1 Review of previous studies (WP3.2 and 3.3) .......................................................................................... 4 2.2 Predicting the availability of biomass and modelling biomass supply (WP3.4, 3.5) .............................. 4 2.3 List of deliverables .................................................................................................................................. 6 3 Findings ..................................................................................................................................................... 6 3.1 Review of biomass studies ..................................................................................................................... 6 3.2 Assesment of 4F crops (Efi) .................................................................................................................... 6 3.3 Assessment of availability (Berien) ......................................................................................................... 8 3.4 Modelling biomass supply .................................................................................................................... 12 4 Overall conclusions ................................................................................................................................. 12 5 References .............................................................................................................................................. 12 2 Preface This publication is part of the BIOMASS FUTURES project (Biomass role in achieving the Climate Change & Renewables EU policy targets. Demand and Supply dynamics under the perspective of stakeholders IEE 08 653 SI2. 529 241, www.biomassfutures.eu ) funded by the European Union’s Intelligent Energy Programme. [Text about this publication] The sole responsibility for the content of this publication lies with authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained therein. 3 1 Introduction The aim of Work Package 3 (WP3) of the Biomass Futures project is to provide a comprehensive strategic analysis of biomass supply options and their availability in response to different demands in a timeframe from 2010- 2030. This is achieved by making a comparative inventory of existing studies, and synthesising the results in terms of economic supply estimates that are most realistic and likely given various policy and development scenarios as specified in WP7. Supply of biomass as addressed by WP3 includes existing biomass streams (including waste) and potential new streams from non food crops and 4F crops, i.e. crops for producing food, feed, fiber and fuel as raw materials for energy and industrial applications. This report concisely summarises the approach and results of the modelling of biomass supply under WP 3 for policy makers and other stakeholders 1. The output provided by WP3 can be summarised in four points: Overview of the main factors influencing the biomass potential and availability under different regional circumstances for a variety of feedstocks. Prediction and spatial distribution of biomass potentials for EU per region including economic supply curves as input for WP7. Competitive biomass supply patterns for different biomass chains and different scenarios. An assessment of impacts of biomass use under different scenarios on trade patterns and environmental parameters. 2 Methodology 2.1 Review of previous studies (WP3.2 and 3.3) Biomass Futures builds on the results of previous studies (EUBIONET, RENEW, REFUEL, BEE, Elobio, 4F crops, etc.). Biomass Futures reviews the main biomass potential studies performed at national, EU27 and global levels scrutinizing the existing assessment studies in terms of assumptions, data and definitions used. The methodology for the assessment of selected biomass studies foresees a categorization into different types of studies to make the studies more comparable. The assessment distinguishes further between technical, economic, competitive economic and implementation potentials given various policy and environmental constraints. As different sectors - food, feed, fibre and fuels – compete for land, biomass crops have to be used as efficiently as possible in order to minimize the competition for land. Energy crops (or non-food crops) can be converted into a number of different products. Many crop species are multipurpose and yield more than one product, for example hemp (both oil and soil biomass or oil and fibres) and cereals (ethanol and soil biomass from straw or ethanol and straw as a feed product). Within Biomass Futures, we consider the following common energy crops : oil crops, cereals, starch and sugar crops, cellulose crops, and solid energy crops or lignocellulosic crops. The options of ‘4F crops in EU27 are reviewed in terms of land availability/ suitability, rotation possibilities, yields, biomass quality characteristics, and options of yield improvement through biotechnology. 2.2 Predicting the availability of biomass and modelling biomass supply (WP3.4, 3.5) Land availability and related biomass availability and the availability of by- and waste products are steered by a range of key factors, such as current and future land use, accessibility, recovery rates, costs, competing uses, etc.. Taking such factors into account is essential for the estimation and mapping of potentials and the translation into realistic supplies. Biomass Futures identifies the main factors 1 Readers that are interested in more detailed descriptions of our work can find the extensive deliverables report summarised here at: http://www.biomassfutures.eu/work_packages/work_packages.html. 4 determining potential and supply of different biomass sources and based on these quantifies biomass potentials and maps them spatially. As part of this process we consider basic sustainability constraints that are informed by work under WP4. This task is central for the completion of other tasks in WP3 but also other WPs. An iterative process with several steps of internal and external review ensures that maps and potential are not only realistic but also appropriate for further analyses and assessments within Biomass Futures. Following this methodology, Biomass Futures delivers a spatially detailed and quantified overview of EU biomass potentials mapping the technical potentials of the different feedstocks at Nuts 2 level and synthesising the results in terms of economic supply estimates (costsupply curves). The availability maps, cost information and basic sustainability constraints are fed into an integrated economic land use model (GLOBIOM). By doing this, the static supply curves of individual feedstocks are brought into competition and contrasted with the demand scenarios. Only by integrating the static supply curves into a dynamic model of land use, issues of future land use change, trade, leakage, indirect land use effects and economic viability related to biomass supply can be assessed. In addition to the basic (supply related) sustainability criteria that already underlie the static supply maps, more complex sustainability constraints can be assessed in the integrated land use model. These include economic indicators (such as the development of food price indices) and sustainability issues related to land use change. This approach builds an important bridge between the static supply maps and the energy demand models of WP5. Figure 1 describes this interplay between the different work packages. Figure 1: Flow chart of Biomass Futures modeling work. Legend: Steps of the analysis 1.Market and demand analysis (WP2), 2.Scenarios of bioenergy demand (WP 5), 3.Availability maps and technical potential (WP3.4), 4.Cost supply curves for biomass feedstocks (WP3.4), 5.Demand projection by feedstock (WP 5), 6.Assessment of technical impacts of technology mix (WP 5), 7.Assessment of technical potential (WP 3.4), 8.Assessment of economic potential (WP 3.5), 9.Assessment of sustainable potential (WP 4, 3.5). Exchange with stakeholders on model assumptions in workshops (WP6, 7) includes the topics Demand (A), Availability (B), Sustainability (C), and Supply (D). The brought white arrowws between the models symbolise the harmonisation of model assumptions. 5 2.3 List of deliverables D 3.1 Database with a systematic overview of the main characteristics of the main biomass resource studies and their main differences and similarities in terms of types of biomass feedstock assessed, and type of assumptions made. D 3.2 Report on the role of 4F cropping options in determining future biomass potentials, including sustainability and policy related issues. D 3.3 Spatially detailed and quantified overview of EU biomass potential taking into account the main criteria determining biomass availability from different sources. D 3.4 Biomass supply patterns for the different biomass types at EU27 and Member States levels. D 3.5. Report summarizing the main outcomes of the WP relevant for policy makers. 3 Findings 3.1 Review of biomass studies The methodology for the assessment of selected biomass studies foresees a categorization into different types of studies to make the studies more comparable. The review of BEE and Biomass Futures of the selected studies resulted in categories for biomass types (Biomass from forestry, Energy crops, Biomass from agricultural residues, Biomass from waste, Total resource assessments) and potential types (Theoretical potential, Technical potential, Economic potential, Sustainable potential) and method types (Resource focussed statistical methods, Resource focussed spatially explicit methods, Demand driven cost supply methods, Demand driven energy and/or economic modelling methods and integrated assessments). After categorization remaining differences between studies are likely to originate from different input data used, scenario assumptions made and tools applied. More categories were planned for comparing scenarios assumptions (especially on markets, technologies etc.). However, no further categorizations for a detailed comparison of studies could be achieved. This is mainly due to the fact that detailed assumptions were not always displayed by the authors of the respective studies. If provided, the assumptions were too distinct for each study so that a categorization was not appropriate. A major conclusion of the Biomass Futures review of biomass assessments at EU country level is that parts of the differences between studies can be explained by an appropriate categorization of studies according to method, biomass type and potential types. Remaining discrepancies can be assessed by comparing individual studies only but not in a systematic manner due to lack of information provided by authors and individuality of assumptions. The original data base compiled in the review and a short description of methods and results con be found at the Biomass Futures webpage. 3.2 Assessment of 4F crops The current market demand for biofuels is covered by conventional crops like oilseeds and grains with limited quantities from lignocellulosic energy crops being used for heat and electricity, mainly in cofiring plants (UK, Finland, etc.). It is expected that during the next decade, tailored crop solutions will be more dominant in the bioenergy and biofuels markets as they can provide bioenergy products with characteristics that match the conventional (i.e. fossil based) end-products they replace. In addition, systems will make better use of existing bio-based resources through increasing their added value for fuel and products. Lignocellulosic crops have been under research & development for more than a decade. During the last two decades several lignocellulosic crops have been under research but so far only miscanthus and reed canary grass are being cultivated in EU27. Research has focused on improving specific traits and meet specific ecological and technology related requirements (i.e. adapt to arid climates, provide certain quality outputs, etc.). In the REFUEL study mentioned above, it is stressed that the introduction of 2nd generation biofuels form lingo-cellulosic feedstocks is hampered by the high initial investment costs and corresponding biofuel production costs of the first installations. 6 In 4FCrops five lignocellulosic crops have been selected for EU27 reed canary grass, miscanthus, switchgrass, giant reed and cardoon (the land allocation of five selected perennial crops in Europe that prepared in 4FCrops presented in Figure 2. Switchgrass is the only of the selected crops that can be successfully cultivated in all climatic zones apart from Nemoral one. Miscanthus has also has been proposed for most climatic zones apart from Nemoral and Mediterranean South. Giant reed and cardoon introduced as very promising energy crops for Mediterranean north and south, while reed canary grass is proposed as an appropriate crop for Nemoral and Continental climatic zone. Climatic zones and perennial grasses Atlantic north: Miscanthus and switchgrass Nemoral: reed canary grass Continental: miscanthus, reed canary grass, switchgrass Lusitanian: miscanthus, switchgrass Atlantic central: Miscanthus and switchgrass Mediterranean north: miscanthus, giant reed, switchgrass Mediterranean south: Giant reed, cardoon, switchgrass Figure 2: Climatic zones and perennial energy crops (source: www.4FCrops.eu) Reed canary grass and miscanthus have been inserted to European agriculture and the area of cultivation presented in detail in Figure 3. Reed canary grass is being cultivated in Finland and Sweden, while miscanthus is being cultivated in Austria, Germany, UK, France and Poland. In 4FCrops the yields of the five selected crops have been estimated in both agricultural and marginal land as well as when they cultivated with high and low inputs (Figure 4). 7 30000 25000 20000 miscanthus reed canary grass 15000 10000 5000 0 Austria Germany UK France Poland Sweden Finland EU27 Figure 3:Area of cultivation of miscanthus and reed canary grass in EU27. 40 Giant reed Marginal land & high inputs Marginal land & low inputs 36 32 Yields (t/ha) 28 Agricultural land & high inputs Agricultural land & low inputs reed canary grass Cardoon Switchgrass 24 20 16 12 8 4 Meditteranean south Mediterranean south Mediterranean north Atlantic north Atlantic central Mediterranean north Lusitanean Atlantic north Atlantic central Continental Nemoral 0 Climatic area Figure 4: Biomass yields (t/ha) of the selected perennial energy crops in each climatic zone (on both agricultural and marginal land as well as with high and low inputs). Based on this analysis, it is expected that these crops will have the major share of the market from 2020 to 2030 as genetic improvements and breeding take long time to become evident in crop production. As mentioned at the beginning of this report, this chapter is to be updated in the following months and at the end of the project, based on the discussions with the Supply and Policy stakeholder groups. 3.3 Assessment of availability Figure 5 and Figure 6 provide a summary of the relative contribution every category can make to the total potential and the contribution of every country to the whole EU potential. It becomes clear from Figure 5 that the forest (41%) and waste (38%) sectors can contribute the lion share of the potential. 8 The remaining 21% are estimated to come from the agricultural sector and are scattered over many different smaller categories. Within the agricultural group the largest contribution is anticipated to come from straw, dedicated cropping and prunings. It should be noted that some of the waste resources such as paper cardboard waste have competing uses. Their use as bioenergy feedstock is therefore less likely; rather the contrary is the case for the primary and secondary agricultural and forest products. Those countries with large forest areas, population and/or agricultural sectors contribute most to the overall EU27 potential (see Figure 6). Total potential (KTOE) dry manure wet manure 1% 3% 6% 7% straw 0% 3% verge grass 1% prunings 26% 12% animal waste Organic waste from households and industry paper cardboard waste common sludges dedicated cropping 12% 23% 4% Additional harvestable roundwood Primary forestry residues 2% Black Liquor Figure 5: Summary of present EU biomass potential (KTOE) over categories. 9 AT Relative potential (KTOE) per EU country SI 1% SK 1% AT 3% UK 7% BG BL 1% 2% SE 8% BG BL CY 0% CY CZ CZ 2% DE DK DE 15% EE EL ES RO 5% DK 1% FR HU PT 2% EE 1% EL 1% PL 7% ES 5% IR IT LT LV MT NL NL 3% MT 0% LV 1% FI PL FI 7% PT RO SE LT 1% IT 13% SI IR HU 0% 1% FR 11% SK UK Figure 6: Overview of total EU potential per country. Biomass Futures combines the findings from the potential analysis with cost levels at which these are expected to be available. After all, the price-supply combination will eventually determine what the most interesting potential categories are. At the EU level, the biggest potential of around 200,000 KTOE biomass is available at a price ranging from 40 to around 200 Euro/TOE (see Figure 7 and Table 1). The cheapest biomass materials characterised by large potentials are wood waste, paper cardboard waste, biodegradable waste from households and industry, primary forestry residues and straw. The most expensive biomass feedstocks are biofuel crops and harvested wood. Maize and dedicated perennial energy crops are in the middle range. The above picture applies to the average EU situation. On a Member State level we have found large differences in price levels and types of feedstock available. This is reflected in the country specific costsupply curves provided in deliverable D3.3. When interpreting these it should be kept in mind that prices represent averages. This particularly applies to manure and straw prices whose levels are very much determined by scarcity, hence increasing in regions of limited supply while prices are zero or very low in regions of excess supply. In a country like e.g. Italy the average national price is still relatively high, while huge excess manure production exists in the Po-valley. The same applies to potentials; these are usually not evenly spread over countries. Especially for large countries like France, Germany, Poland etc., the national totals and averages can provide a misleading picture. However, for almost all potentials presented regional data are also available in this project. Further analysis of the results presented here will build on the regional figures. 10 EU cost-supply 300000 250000 KTOE 200000 150000 100000 50000 0 0 100 200 300 400 500 600 700 Euro/TOE Figure 7: Cost-supply of biomass potentials at EU-27 level. Table 1: Overview of biomass supply for whole EU at average prices. Euro/TOE Accumulated total KTOE Verge grass 36 1092 1092.4 0.5% Wood-waste 41 19521 18429.1 7.7% Common sludges 42 23220 3698.9 1.5% Paper cardboard 42 73634 50413.4 21.0% Dry manure 58 75239 1605.6 0.7% animal waste 96 78002 2762.8 1.2% Biodegradable municipal waste 96 103658 25656.0 10.7% prunings 118 110392 6733.9 2.8% Primary forestry residues 156 167629 57237.1 23.9% Straw 167 184096 16466.9 6.9% Perennials 2008 168 184460 364.2 0.2% Maize 2008 216 184969 508.8 0.2% Black liquor 217 198678 13708.7 5.7% wet manure 280 205406 6728.2 2.8% Additional Harvestable Roundwood 326 232003 26597.0 11.1% Sunflower 2008 399 232959 955.8 0.4% Cereals 413 234128 1168.8 0.5% Sugarbeet 2008 422 234182 54.8 0.0% RAPE 2008 605 239501 5318.6 2.2% 11 KTOE % total KTOE 3.4 Modelling biomass supply To be added when results of scenarios are available 4 Overall conclusions To be added when results of scenarios are available NOTE: This summary will be updated by October 30, 2011 to include the final results of the modelling on the specified scenarios. 12