Scenario on Bioenergy Development in Australia GSB Convention for the Asia-Oceania Region: Kuala Lumpur 14 – 16th June 2010 Andrew Braid, Sustainable Biomass Production Project CSIRO Sustainable Ecosystems Australia – not only cities and beaches Images: ScienceImage CSIRO GSB Convention for the Asia-Oceania Region 1 Australia - many landscapes Images: ScienceImage CSIRO GSB Convention for the Asia-Oceania Region Australia – has significant energy resources • Significant coal, natural gas and uranium resources – major export commodities • Oil – net importer of oil • Australia’s energy consumption – Coal 40%, Petroleum products 34%, Natural gas 22%, Renewables 5% GSB Convention for the Asia-Oceania Region 2 Australia – a dry continent GSB Convention for the Asia-Oceania Region Current Bioenergy Production in Australia • Bioenergy is currently a small part of the Australian energy mix Biofuel Production 2007-2008 (ML) Fuel Ethanol 100 Biodiesel 68 Total Biofuels 168 • Total biofuels produced in 2008 - 0.45% of automotive IEA Bioenergy, 2009 gasoline and diesel consumed Electricity from biomass under RET in Australia that year at 2008 (GWh) • Total electricity produced from biomass under RET in 2008 0.5% of electricity generated in Australia that year Bagasse 1050 Black liquor 154 Wood waste 141 Municipal/Ag solid waste Total Electricity 98 1443 ABARE, 2010 GSB Convention for the Asia-Oceania Region 3 What could be done: Calculating potential bioenergy based on current Australian production systems Method developed by the CSIRO Sustainable Biomass Production team: • Calculate the full potential harvest of all feedstocks in the current agricultural and forestry production systems • • • • Starch – cereal grains Sucrose – sugar cane sugar Oil – canola, tallow, waste cooking oils Lignocellulose – stubble, forest/plantations, waste wood • Estimate the maximum amount of feedstocks that could be diverted to bioenergy production • Apply environmental constraints e.g. the amount of stubble and plantation residues to leave in the field for nutrient cycling, soil protection, no use of native forests etc • Take maximum amount available with diversion of export material to bioenergy GSB Convention for the Asia-Oceania Region What could be done: Calculating potential bioenergy based on current Australian production systems Results: Biofuels First generation feedstocks ML • Potential ethanol as a percentage of automotive gasoline consumed in Australia • From starch & sugars 49% • From lignocellulose 65% Starch & sugars to ethanol 9100 • Potential biodiesel as a percentage of automotive diesel consumed in Australia • From vegetable oils 5% Lignocellulose to ethanol • Note: We DO NOT advocate diversion of food exports to bioenergy production. Veg oils to biodiesel Total 925 10,025 ML Bagasse 345 Stubbles 9790 Plantation products 1970 Total 12,105 GSB Convention for the Asia-Oceania Region 4 What could be done: Calculating potential bioenergy based on current Australian production systems Results: Electricity • Alternative use of biomass - take all potentially available lignocellulosic feedstocks and use for electricity generation. Lignocellulose feedstocks for electricity TWh Bagasse 1.8 Stubbles 28.2 Plantation products 11.5 Total electricity 41.5 • Potential total electricity ~ 16% of the electricity generated in Australia in 2008. Image: ScienceImage CSIRO GSB Convention for the Asia-Oceania Region What could be done: Future expansion through dedicated energy feedstocks Significant future expansion of the bioenergy industries in Australia will require dedicated, purpose-grown, reliable sources of feedstocks Examples: • Mallee eucalypt species • Oilseeds – Canola, Mustard (Brassica juncea), Pongamia (Pongamia pinnata) • Algae GSB Convention for the Asia-Oceania Region 5 Dedicated energy feedstocks - Mallee • Australian native ~ 200 mallee eucalypt species • Multipurpose plantings in existing crop lands: • reduce waterlogging and salinity in Western Australia’s wheat belt • revegetate cleared cropping land • provide carbon sinks • provide bioenergy, biochar, eucalyptus oil • Optimal planting in alleys uses < 10% crop lands - small impact on food production • Bioenergy potential – Mallee could contribute ~ 9% Australia’s electricity or as ethanol ~ 24% of automotive gasoline (CSIRO SBP) Images: ScienceImage CSIRO GSB Convention for the Asia-Oceania Region Dedicated energy feedstocks – oilseeds • Canola and mustard (Brassica juncea) • Used as break crops for disease control in wheat production • Mustard being developed for use in low-rainfall (300 – 500 mm/pa) cropping areas and for regional biodiesel production • Increased oilseed crop rotations will impact wheat production Brassica juncea test plot (Image: farmonline.ord) • Pongamia • Already growing around northern Australian rivers • Active research on development but no Australian production figures available • Limited available growing areas GSB Convention for the Asia-Oceania Region Image: Tom Jovancovic CSIRO 6 Dedicated energy feedstocks – algae • Algae research in Australia • Algal Fuels Consortium, Murdoch University, James Cook University, CSIRO • CSIRO SBP estimate of potential production based on locations with: • CO2 source – power stations, coalseam methane, human or animal waste • High sun exposure • Sea water • Potential production (large variation due to lack of established production systems) 800 to 4,600 ML biodiesel or 4% to 25% of Australia’s diesel consumption GSB Convention for the Asia-Oceania Region Australia – land-use-change and available land Legislation to protect native vegetation and limited irrigation water would likely limit the available land for expansion of bioenergy production to the areas identified as “grazing modified pastures” and “dryland cropping and dryland horticulture”. GSB Convention for the Asia-Oceania Region 7 Sustainability issues in the production of bioenergy in Australia • No significant sustainability issues with current biofuel and bioenergy production based on waste streams and residues - C-molasses, waste starch, used cooking oils, bagasse, waste wood etc. • Expanding the use of stubble and plantation materials will need constraints to mitigate potential environmental impacts. • Expansion of multi-purpose agricultural plantings – e.g. Mallee, could produce significant amounts of biomass with minimal land-use-change or effect on food production, improve biodiversity and regenerate saline sinks • Expansion of dedicated bioenergy plantations e.g. pongamia, would require land-use-change and would most likely impact food production, biodiversity and water GSB Convention for the Asia-Oceania Region Sustainability research – CSIRO SBP team • Major Australian review of the sustainability issues: “Sustainable Production of Bioenergy” • Review of international frameworks • Overview of relevant Australian policies • Options for way forward in Australia • Other sustainability research • Sustainability of stubble harvesting • Road-mapping sustainable aviation fuel (SAF) production in Australia • RSB Pilot Project on certification of an Australian ethanol plant GSB Convention for the Asia-Oceania Region 8 Australian policies – Commonwealth Government Policies relevant to bioenergy development • Carbon Pollution Reduction Scheme (CPRS) • A price on carbon is seen by industry as a major driver for the development of bioenergy in Australia. Legislation of the CPRS has been delayed until 2013 • Energy White Paper • The Commonwealth government has developed an Energy White Paper which included a Biofuels Review. Release of the Energy White Paper has been delayed with the decision on the CPRS. • Renewable Energy Target • To produce 20% (45,000 GWh) of Australia’s electricity from renewable sources (solar, wind, biomass etc) by 2020. Incentive – tradeable Renewable Energy Certificates (RECs). • Regulations specify sustainably produced biomass eligible for RECs GSB Convention for the Asia-Oceania Region Australian policies – Commonwealth Government Policies relevant to bioenergy development (cont). • Clean Energy Initiative (DRET) • Example: $15M funding of the Second Generation Biofuels Research and Development Program (Gen2) • Fuel Tax (excise) – Australian Taxation Office • Biodiesel and Ethanol carry the normal fuel excise of 38.143 cents/litre • These are 100% offset by the Ethanol Production Grant and the Energy Grants Cleaner Fuels Scheme to encourage biofuel production • From July 2011 the offsets will start phasing down at 20% per year. • Biofuel Mandates • The Commonwealth Government has NOT set mandates for biofuels or bioenergy • Sustainability Framework and/or Sustainability Assessment Schemes • At this time the Commonwealth Government does not have a process that oversees the sustainability of bioenergy products in Australia GSB Convention for the Asia-Oceania Region 9 Australian policies – State and Territory Governments • Mandates or targets • New South Wales (NSW) • Volumetric Ethanol Mandate – currently 4%, rising to 10% in all regular unleaded petrol from July 2011. • Queensland • 5% ethanol in all regular unleaded petrol from January 2011 • Victoria and Western Australia • 5% biofuel targets for 2010 • Regional Development • State and Territory Governments see bioenergy as a potential contributor to regional development • Sustainability Framework and/or Sustainability Assessment Schemes • NSW has legislated that biofuels under the mandate must meet the Roundtable on Sustainable Biofuels (RSB) Standard GSB Convention for the Asia-Oceania Region In Conclusion: • Australia is a large, mainly dry continent with significant fossil energy resources. The development of the bioenergy industries in Australia is small. • Commonwealth and State government support for the development of bioenergy industries is variable and differs between governments. • There is significant potential in Australia for sustainable production of lignocellulosic biomass for bioenergy from agricultural and plantation residues, and multi-purpose plantings in dryland cropping areas GSB Convention for the Asia-Oceania Region 10 Acknowledgements Thank you to: • Global Sustainable Bioenergy and Prof. Ramlan Abd. Aziz, Chairman of the Local Organizing Committee for the invitation to speak today. • Dr. Zainul Akmar Zakaria and his associates for their assistance in arranging for my visit. and: The CSIRO Sustainable Biomass Production team: Deborah O’Connell, John Raison, Damien Farine, Barry May, Michael O’Connor, Michael Dunlop, Alexander Herr, Joely Taylor, Luis Rodriguez, Peter Campbell, Michael Poole, Debbie Crawford, Tom Jovanovic GSB Convention for the Asia-Oceania Region CSIRO Sustainable Ecosystems Dr Andrew Braid Phone: 02 6242 1638 Email: Andrew.Braid@csiro.au Thank you Contact Us Phone: 1300 363 400 or +61 3 9545 2176 Email: Enquiries@csiro.au Web: www.csiro.au 11