Greenhouse Gas Balances for the German Biofuels Quota Legislation

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ifeu Institute for Energy and Environmental Research Heidelberg Germany Greenhouse Gas Balances for the German Biofuels Quota Legislation Methodological guidance and default values Horst Fehrenbach on behalf of Umweltbundesamt (UBA) Germany GBEP Task Force Meeting GHG Methodology Oct 9-10 2007 Washington D.C. State Department

Introduction In Germany: law of a mandatory biofuel quota (Biofuel quota act) effective since January 2007. (following the EU Directive 2003/30/EG) An R+D project on behalf of Federal Environment Agency (UBA) is started to work out a set of criteria for sustainable biomass production and use. GOAL: to deliver input to the GBEP process (originally); now also: to deliver input according to the requirements of the Biofuel quota act. Intensive discussion and exchange with similar activities in the Netherlands, UK other European states and the EU.

Introduction Requirements Biofuel Quota Act: the federal government is authorised to modify the actually acknowledged quota by regarding the real GHG savings. multiplication of the annually sold amount of a specific biofuel with a correction factor. a minimal level of CO 2 savings for the biofuels is required, sustainable cultivation of agricultural land. protection of natural habitats. Authorization to concretize these requirements by an ordinance (first draft): Biofuel sustainability ordinance.

General principles of the GHG tool Biofuel quota act authorises the government to introduce a multiplication factor for different biofuels based on their GHG savings. Multiplication factor 0 x % 100 % Min. GHG GHG reduction reduction

R+D Project: Themes The current state of proposed themes and principles to be addressed by a certification system for sustainable biomass. 1 There has to be a significant contribution to greenhouse gas mitigation! 2 Land use practices and land use changes driven by biomass production shall not lead to significant ecological impacts! 3 Increased biomass production shall not lead to worse social-economic situations!

R+D Project: Principles The current state of proposed principles: 1 Significant contribution to greenhouse gas mitigation! 2 Effects from indirect land use changes (competition) have to be considered. 3 Loss of habitats of high conservation value shall be prevented 4 Loss of biodiversity shall be prevented (incl. criteria considering farmland biodiv. and GMO) 5 Negative impacts on soil. water and air shall be minimized 6 Local population shall not drawbacks but participate in opportunities 7 Ownership has to be respected 8 Respect internationally required social standards

General principles of the GHG tool Considering all steps of the life cycle chain Setting default values Transparent calculation model with transparent co-product consideration

General principles of the GHG tool Default values: The emission of GHG shall be calculated in the unit kg CO 2 equivalent / GJ of fuel. A differentiation has to be made for using default values and using singular case values. The default values are based on conservative but realistic cases for Germany. They have to be applied if no certified singular case values are available. The default values are configured in a modular way according to the different steps of the biofuel production system.

General principles of the GHG tool Default values: definition of conservative Number of distinct cases conservative cases better cases ------- Worse cases

General principles of the GHG tool Biofuel production steps 1. direct land use change (LUC) 2. production of biomass 3. transport of biomass 4. conversion step I 5. transport between steps 6. conversion step II 7. transport to fuel storage for admixture (refinery) 8. Indirect land use change Considered in calculation carbon balance: (C storage in crop system minus C storage in previous system). time span 20 years; avoided N 2 O, CH 4 emissions from previous system; caused N 2 O, CH 4 in case of burnings. GHG emissions from fuel use. fertilizers and pesticide production; in case: energy for irrigation; N 2 O, CH 4 emissions from crop system Depending on the system GHG emissions from energy supply. fuel use. auxiliary materials. Depending on the system (might be missing) GHG emissions from energy supply. fuel use. auxiliary materials. Depending on the system risk adder (currently in further elaboration)

General principles of the GHG tool Considering co-products: There are various options to consider co-products. From all these the most appropriate are judged to be Allocation based on energy figures (i.e. lower heat value) Allocation based on market values (prices) Delivering credits for substitution of other products Each option shows specific advantages and disadvantages. One important requirement is: minimize arbitrariness!

General principles of the GHG tool Considering co-products: e.g. RME vs. Diesel Advantages for RME Credit - Chem. glycerine -Chemicals - Thermal use range Allocation - Energy content - Mass -Price -3.5-3.0-2.5-2.0-1.5-1.0-0.5 0.0 t CO 2 equiv. / (ha*a)

General principles of the GHG tool Allocation of co-products: All inputs and outputs shall be attributed to the co-products by their share of the lower heat value. This is to minimize the arbitrariness for the objective of the Biofuel Quota Law because it provides a clear and measurable figure to be used as a rule for allocation. An energy figure is appropriate for allocation in this context because the Biofuel Quota Law is about the substitution of fossil energy. Biomass which stays on the land or is returned to it (directly or indirectly) is not treated as co-product but modelled in a closed loop. ( Cross compliance)

Basics of the GHG tool List of lower heat values (LHV): lower heating value lower heating value agricultural products MJ/kg d.m. MJ/kg o.s. intermediate products MJ/kg d.m. MJ/kg o.s. Wheat whole plant 17,1 13,5 Dried Distiller's Grains w. Solubles (DDGS) 21,8 16,0 grains 17,0 13,7 Sugar juice (45% saccharose) 19,0 7,0 straw 17,2 13,3 Bagasse (50% dm) 16,6 9,4 Maize (Corn) whole plant 16,5 14,3 Melasse 16,0 16,0 grains 21,4 17,4 rape seed oil 37,2 - straw 17,7 13,7 soy bean oil 36,6 - Sugar cane whole plant 17,0 11,0 palm oil 36,5 - cane 17,0 11,0 extraction cake from rape seed 19,0 15,0 Rape whole plant 21,8 17,0 extraction cake from soy bean 19,0 15,0 grains 26,5 21,8 fibrous cake from oil fruits 17,5 14,0 herbaceous residuals 17,0 14,7 palm kernels 28,0 28,0 Soy bean whole plant 18,0 14,5 final products grains 20,0 17,0 Ethanol 26,7 - herbaceous residuals 17,0 13,0 RME 37,2 - oil palm full fruit bunch 24,6 22,3 SME 37,0 - fruits 31,7 31,5 PME 36,6 - empty fruit bench 17,5 14,0 Glycerine (20% w after transesterif.) 17,0 13,4

Calculation example RME Direct / (indirect) land use Biomass production Transport of biomass Conversion step 1 Transp. betw. Conv. steps Conversion step 2 Transport to refinery Grassland Rapeseed 100 km Oil mill 100 km Transesterification 150 km 200 m 2 cultivation Lorry Truck Truck 68 kg Rapeseed 27,15 kg Rapeseed oil 26.88 kg RME 1 GJ RME 68 kg Rape straw 40,83 kg RES 2.53 kg Glycerine 54.9 48.8 0.7 12.1 0.21 8.2 0.3 kg CO 2 -Eq. 62,3% x 96% 62,3% x 96% 62,3% x 96% 62,3% x 96% 96% 96% 100% Allocation factor 31.8 29.1 0.4 7.6 0.2 7.6 0,3 kg CO 2 -Eq. Allocated Sum kg CO 2 -Eq. 78,1

Exemplary calculations exemplary values based on an allocation (LHV) : in kg CO 2 -eq./gj Ethanol from wheat (EU) corn (NAm) sugar cane (SAm) rapeseed oil (EU) Methylester from soy bean oil (SAm) palm oil (SEAs) Land use change 22.7 17.2 158.8 32.8 289.5 112.8 Production of biomass 19.3 15.3 19.5 29.1 12.9 6.6 Transport of biomass 0.6 0.6 1.5 0.4 0.5 0.1 Conversion step I - - 1.7 7.6 7.3 6.9 Transport betw. steps - - - 0.2 3.8 4.3 Conversion step II 34.3 23.0 1.0 7.6 7.7 7.7 Transport to refinery 0.4 4.8 5.5 0.3 0.3 0.3 indirect land use change Not yet implemented Total 77.3 60.8 188.1 78.1 321.9 138.7 Total w/o LUC 54.6 43.6 29.3 45.3 32.4 25.9

Calculation examples exemplary values based on an allocation (LHV) : kg CO2-Eq. per GJ Biofuel 200 180 160 140 120 100 80 60 direct land use change *) production of biomass transport of biomass conversion step I transport betw. conv. steps conversion step II transport to admixture grassland humide savannah grassland 322 kg CO2-Eq./GJ tropical rainforest *) direct land use change: values correspond to bad and non-sustainable cases; default values have to be in line with sustainability per definition. fossil reference systems gasoline: 85 kg/gj. Diesel: 86.2 kg/gj 30% saving 40 20 0 wheat corn Ethanol from sugar cane rapeseed oil soy bean oil palm oil FAME from

Sum-up Germany will establish a GHG methodology according to the Biofuel sustainability ordinance. The whole life chain including direct and indirect land use change is considered. Default values are set is case of missing specific data of producer. A harmonization within the EU is strongly supported.