Life cycle GHG emissions in the EU biofuels legislation Luisa Marelli and Robert Edwards

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Life cycle GHG emissions in the EU biofuels legislation 1 Luisa Marelli and Robert Edwards European Commission DG Joint Research Centre (JRC) Institute for Energy and Transport

Directive 2009/28/EC (RED) Policy framework Directive 2009/30/EC (FQD) 10% target for RES in transport 10% GHG reduction by fuel suppliers (6% through alternative fuels) Sustainability Criteria and Life-cycle GHG emissions calculation identical in the two Directives 2 GHG Impact Minimum 35% GHG Emissions saving (50% from 2017, 60% from 2018) Biodiversity Land use Good agricultural conditions Not be made from raw materials obtained from biodiverse areas (including primary forests) Not be made from land with high carbon stock (i.e. wetlands, forested areas ) Not be grown on peatlands Requirement for good agricultural conditions and social sustainability

LCA METHODOLOGY GHG emissions saving calculated by: 3 1. Actual values Methodology in Annex V - RED Total emissions from the use of fuel: E b = e ec + e l + e p + e td + e u e sca e ccs e ccr e ee, GHG SAVING = (E f E b )/E f (min. 35%) Where E f = emissions from the fuel comparator E = total emissions from the use of the fuel; e ec =emissions from cultivation of raw materials; e l =annualised emissions from carbon stock changes caused by land-use change; e p =emissions from processing; e td =emissions from transport and distribution; eu = emissions from the fuel in use; e sca = emission saving from soil C accumulation via improved agricultural management; e ccs = emission saving from carbon capture and geological storage; e ccr = emission saving from carbon capture and replacement; e ee = emission saving from excess electricity from cogeneration.

4 if you can t (or don t want to) calculate actual emissions for your batch of biofuels (and are not in a recognised voluntary scheme) (and you r LUC emissions are zero) 2. Default values (if e l 0) Values listed in Annex V - RED JRC calculates the default values of GHG emissions from different biofuels from different feedstocks (Values now in Annex V from JEC WTW input database) Values in annex V will likely be updated soon JRC expert consultation on 22-23 November

Example of default values in Annex V - RED Biofuel production pathway Typical GHG emission saving Default GHG emission saving sugar beet ethanol 61 % 52 % wheat ethanol (process fuel not specified) wheat ethanol (lignite as process fuel in CHP plant) wheat ethanol (straw as process fuel in CHP plant) 32 % 16 % 32 % 16 % 69% 69% sugar cane ethanol 71% 71% rape seed biodiesel 45% 38% 5 = Typical + 40% increase on the estimated processing emissions palm oil biodiesel (process not specified) palm oil biodiesel (process with methane capture at oil mill) 36% 19% 62% 56% waste wood ethanol 80% 74%

6 3. Combination of 1 + 2 Disaggregated default values in Annex V Cherry-picking (1): an ad-hoc combination of disaggregated default + actual values can give lower emissions: Example: If your emissions from cultivation are > default value, You can make an actual value for processing emissions (avoiding the 40% safety-factor increase) But take the default value for cultivation...to get lower possible emissions

7 Default values do not include: - emissions for farm machinery manufacture - energy for irrigation - emissions from LUC LUC emissions (e l ): Commission s decision on Guidelines for the calculation of land carbon stocks (2010/335/EU of 10/06/2010) based on JRC work:

8 N 2 O emissions from cultivation: (Now default values in disaggregated e ec factor) JRC methodology: combined Stehfest&Bouwmanstatistical model with IPCC Tier1 Approach - Mineral fertilizer data based on IFA - Input data from several global databases and is disaggregated on a ~9km grid - Harmonized method for all feedstocks, global application is possible. - Cover a wide range of potential biofuel feedstock defined by the EU Commission

Main uncertainties: 9 1. Allocation of emissions between fuel and co-products, in proportion to their energy content (Lower Heating Value) Issues: Most of the emissions from soy cultivation and crushing is attributed to the meal Definition of LHV in the directive: There are 2 definitions for moist material: 1. Heat from burning the dry part of the material (not including the energy in steam in the exhaust) 2. Heat of the entire co-product stream, i.e. Like (1) but subtracting the energy to evaporate the water in the material The Commission says in a 2010 Communication: for allocation you must use the second definition

Main uncertainties: Consequences of allocation using the wet LHV definition 10 - In case of ethanol, the LHV depends on its dilution (while dry LHV is a fixed quantity per dry-matter mass of material) - The Lower Heat Value of wet materials decreases. Therefore wet by-products (like undried DDGS) get less allocation than dry ones JRC emissions calculation tool works internally with the first definition, and all per MJ results are per MJ LHV of the dry matter Fortunately, for (dry) final fuels there is only one LHV

Main uncertainties: 11 2. Definition of point of allocation: The allocation applies immediately after a co-product and biofuel/bioliquid/intermediate product are produced at a process step [...] Cherry-picking (2): producers can split their process wherever suits them to give lowest apparent GHG emissions to the product Example: conventional bioethanol plant producing roughly the same amount of ethanol and DDGS

Example: ethanol plant 12 wheat fermentation WET DGS DDG drying DDG distillation and final ethanol drying 35% LHV (55%) steam at ~120C (45%) 65% LHV ethanol Splitting here the process : - Emissions from drying DDG disappear from the ethanol process - Emissions of ethanol distillation+drying partly allocated to wet DDGS WITHOUTH ANY REAL EMISSION SAVING!

Main uncertainties: 3. Definition of waste/residues : A processing residue is a substance that is not the end product(s) that a production process directly seeks to produce. It is not a primary aim of the production process and the process has not been deliberately modified to produce it. 13 RESIDUE/WASTE BY-PRODUCT No allocation Counts double (big) allocation by LHV Valuable as biofuel! Cheap! Some feedstocks defined as waste (e.g. animal fat) are instead used (e.g. in industrial steam boilers to heat the rendering plant). But if now used for bioenergy (with zero emissions) they are often substituted with fuel oil!

Harmonisation 14 Need to define and harmonize standard values, i.e. conversion factors from input data to GHG emissions 1. Significant variation possible in actual GHG values (RED 19.1.b) following RED Annex V.C Using same input values Caused by variation in standard values (or conversion factors / background processes ) to convert kg, MJ or m 3 into CO 2,eq 2. This causes a problem using actual GHG values Auditors can not check if standard values are correct Economic operators can choose most beneficial values to get better GHG performance of their biofuel without effectively improving the production chain!

BioGrace project Harmonise calculations of biofuel GHG emission http://www.biograce.net/ List of standard conversion values Software to allow stakeholders to perform calculations themselves 15 European Directives on (bio)fuels RED & FQD GHG Methodological aspects General methodology Detailed calculation rules BioGrace Economic operator Communications Data Generic models and data (LUC) Standard values Input data RED & FQD (JRC ) Results Default values Details on default values Actual values

List of standard values from Biograce 1 GHG emission coefficients 1 Lower heating values (LHV s) 16 N-fertiliser 5880,6 g CO2,eq/kg N P2O5-fertiliser 1010,7 g CO2,eq/kg P2O5 K2O-fertiliser 576,1 g CO2,eq/kg K2O CaO-fertiliser 129,5 g CO2,eq/kg CaO Pesticides 10971,3 g CO2,eq/kg Seeds- rapeseed 729,9 g CO2,eq/kg Seeds- sugarbeet 3540,3 g CO2,eq/kg Seeds- sugarcane 1,6 g CO2,eq/kg Seeds- sunflower 729,9 g CO2,eq/kg Seeds- wheat 275,9 g CO2,eq/kg Natural gas (4000 km, Russian NG quality) 66,20 g CO2,eq/MJ Natural gas (4000 km, EU Mix quality) 67,59 g CO2,eq/MJ Diesel 87,64 g CO2,eq/MJ HFO for marine transport 87,20 g CO2,eq/MJ Methanol 99,57 g CO2,eq/MJ Hard coal 111,28 g CO2,eq/MJ Lignite 116,98 g CO2,eq/MJ Electricity EU mix MV 127,65 g CO2,eq/MJ Electricity EU mix LV 129,19 g CO2,eq/MJ Electricity (NG CCGT) 124,42 g CO2,eq/MJ Electricity (Lignite ST) 287,67 g CO2,eq/MJ Electricity (Straw CHP) 5,71 g CO2,eq/MJ CH4 and N2O emissions, steam from NG boiler 0,39 g CO2,eq/MJ CH4 and N2O emissions, steam from Lignite CHP 3,79 g CO2,eq/MJ n-hexane 80,50 g CO2,eq/MJ Phosphoric acid (H3PO4) 3011,7 g CO2,eq/kg Fuller's earth 199,7 g CO2,eq/kg Hydrochloric acid (HCl) 750,9 g CO2,eq/kg Sodium carbonate (Na2CO3) 1190,2 g CO2,eq/kg Sodium hydroxide (NaOH) 469,3 g CO2,eq/kg Hydrogen (for HVO) 87,32 g CO2,eq/MJ Pure CaO for processes 1030,2 g CO2,eq/kg Sulphuric acid (H2SO4) 207,7 g CO2,eq/kg Ammonia 2660,8 g CO2,eq/kg Cycle-hexane 723,0 g CO2,eq/kg Lubricants 947,0 g CO2,eq/kg Diesel 43,1 MJ/kg (0% water) Gasoline 43,2 MJ/kg (0% water) HFO for marine transport 40,5 MJ/kg (0% water) Ethanol 26,81 MJ/kg (0% water) Methanol 19,9 MJ/kg (0% water) FAME 37,2 MJ/kg (0% water) Syn diesel (BtL) 44,0 MJ/kg (0% water) HVO 44,0 MJ/kg (0% water) PVO 36,0 MJ/kg (0% water) n-hexane 45,1 MJ/kg (0% water) Hard coal 26,5 MJ/kg (0% water) Lignite 9,2 MJ/kg (0% water) Corn 18,5 MJ/kg (0% water) FFB 24,0 MJ/kg (0% water) Rapeseed 26,4 MJ/kg (0% water) Soybeans 23,5 MJ/kg (0% water) Sugar beet 16,3 MJ/kg (0% water) Sugar cane 19,6 MJ/kg (0% water) Sunflowerseed 26,4 MJ/kg (0% water) Wheat 17,0 MJ/kg (0% water) Animal fat 37,1 MJ/kg (0% water) BioOil (byproduct FAME from waste oil) 21,8 MJ/kg (0% water) Crude vegetable oil 36,0 MJ/kg (0% water) DDGS (10 wt% moisture) 16,0 MJ/kg (10% water) Glycerol 16,0 MJ/kg (0% water) Palm kernel meal 17,0 MJ/kg (0% water) Palm oil 37,0 MJ/kg (0% water) Rapeseed meal 18,7 MJ/kg (0% water) Soybean oil 36,6 MJ/kg (0% water) Sugar beet pulp 15,6 MJ/kg (0% water) Sugar beet slops 15,6 MJ/kg (0% water) 2 Transport efficiencies Truck for dry product (Diesel) 0,94 MJ/ton,km Truck for liquids (Diesel) 1,01 MJ/ton,km Truck for FFB transport (Diesel) 2,01 MJ/ton,km Tanker truck MB2218 for vinasse (Diesel) 2,16 MJ/ton,km Tanker truck with water cannons for vinasse (Diesel) 0,94 MJ/ton,km Dumpster truck MB2213 for filter mud (Diesel) 3,60 MJ/ton,km Ocean bulk carrier (Fuel oil) 0,20 MJ/ton,km Ship /product tanker 50kt (Fuel oil) 0,12 MJ/ton,km Rail (Electric, MV) 0,21 MJ/ton,km

17 Indirect land use change effects are not included But the RED and FQD include obligation to review the impact of ILUC to GHG emissions, and if needed to accompaign with a policy proposal by 2010 Commission s report (Dec.2010) concluded that: Although with uncertainties, ILUC can reduce GHG savings it should be addressed with precautionary approach Impact Assessment to be prepared by July 2011!

Commission s work on ILUC Modelling work: 18 IFPRI (MIRAGE-BioF) - 2010 JRC (AGLINK-COSIMO) - 2010 JRC (modelling comparison) - 2010 New IFPRI report in publication GHG Emissions: JRC Spatial Allocation Methodology - 2010 + new report in publication Other studies: DG ENER Literature survey - 2010 JRC studies available at: http://re.jrc.ec.europa.eu/bf-tp/index.htm

CONSULTATIONS: Public consultations on ILUC (2009 and 2010) followed by stakeholders meeting JRC experts consultations (February and November 2010) 19 In publication MORE ON JRC+IFPRI ILUC RESULTS S IN R. EDWARDS PRESENTATION THIS AFTERNOON

Identified policy options: 20 A) Taking no action while continuing monitoring B) Increase ther minimum GHG threshold Preferred by stakeholders as industries, farmers associations and 3 countries BF producers Not preferred by any specific stakeholder group C) Introduce additional sustainability requirements D) ILUC factors C1) Introducing requirements to reduce deforestation C2) measures to improve farming practices that reduce ILUC risks Assessed also in combintation with B) and C2) Supported by most stakeholders Assessed in combination with D) Supported by NGOs as potential exemption of option D) Preferred by most NGOs, a few stakeholders from non-biofuels sector and JRC experts consultation

CONCLUSIONS 21 Sustainability sine qua non condition for biofuels promotion in the EU No negative environmental and social impacts No negative impacts on food availability Life Cycle Analysis methodology is defined, but economic operators need additional tools (e.g. N 2 O emissions methodology) to calculate GHG emission savings Harmonised standard values and are necessary (and cherry picking must be avoided). Scientific studies indicated that ILUC affects GHG saving and should be acocunted for in legislation.