Project Towards Sustainability Certification of Jatropha Biofuels in Mozambique

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Project partners: Project Towards Sustainability Certification of Jatropha Biofuels in Mozambique Agro Pecuária de Manica Lda Matthias Spöttle Jatropha Alliance, project manager Peter Vissers Partners for Innovation, senior partner Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Project co-financed by: Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 1

What is the aim of this project? Project Towards sustainability certification of Jatropha biofuels in Mozambique Project objective To build up knowledge for future certification of Jatropha biofuels through a benchmark pilot sustainability assessment, using existing sustainability criteria frameworks Timeline: 1 Oct 2009 30 Nov 2010 Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 2

Why this project? Reasons for the project: Fulfilling sustainability criteria has become a market requirement for biofuels Jatropha industry has little experience with sustainability standards Reasons for Mozambique as the country of choice: Advanced government policy on biofuels Existing cooperation with 3 Jatropha Alliance members having operations in Mozambique Suitability of Mozambican situation, soils, climate, population density, availability of unused cultivable land > to grow Jatropha Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 3

What is the approach and planning of the project? 2009 2010 Project activity Q4 Q1 Q2 Q3/Q4 1. Review sustainability standards + methodology X 2. Regional embedding X X X X 3. Data collection and compilation X 4. Sustainability assessment X 5. Interaction with European institutions X 6. Dissemination within Jatropha Industry X 7. Project management X X X X Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 4

Review sustainability standards Review and Pre-selection for Multi- criteria analysis Identifcation and review of 44 sustainability standards Benchmarking of 9 biomass tandards and 6 biomass-for energy standards against sustainability criteria of EU Renewable Energy Directive (RED) and UK Renewable Transport Fuel Obligation (RTFO) >> Analysis of 11 sustainability standards Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 5

Review sustainability standards Multi criteria analysis of selected standards Scoring for criteria 1 to 4: 0 = low, 1 = medium, 2 = high Scoring for criteria 5 to 7: 0 = low, 2 = medium, 4 = high Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 6

Review sustainability standards Main standards for the pilot sustainability assessment Roundtable on Sustainable Biofuels Version 1 (RSB): Fits the most with the needs of the companies and the sector, as its is supposed to become the important standard for biofuels. Covers all sustainability issues Developed activites towards a Jatropha-specific variant Supporting standard for Greenhouse Gas Emmissions Renewable Transport Fuel Obligation (RTFO): Has proven its success since 2 years of operation Provides clear guidance on carbon calculations >> Questionaires for each standard for the assessment Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 7

Data collection 3 Jatropha growing plantations are involved Company Province Location Actual size (2010) Target size (2015) Former Land Use M1 Elaion Africa Lda Sofala Dondo 65ha 65 ha Bush-Savanna, charcoal production M2 M3 Sun Biofuels Mozambique SA Agro Pecuaria de Manica Lda Manica Chimoio 2,000 ha 10,000 ha Tobacco Manica Gondola 40ha 40 ha Farm land, probably Portuguese Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 8

Pilot sustainability assessment Exemplary gap analysis against RSB (1/2) Approach: Answers within the RSB questionaire and provided documents are assessed and score points are given for the following grades: 1. Adequate: Sufficient proof to pass RSB criteria 2. Needs Improvement: Very close to adequate, but something is missing. 3. Needs Significant Improvement: Huge amount of work needed for improvement 4. Not covered: No info obtained for this areas 5. Not applicable Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 9

Pilot sustainability assessment Exemplary gap analysis against RSB (2/2) P12 Land rights P1 Legality 10 8 P2 Planning, monitoring, cont. improvement P11 Technology 6 4 P3 Greenhouse gases 2 P10 Air 0 P4 Human and labor rights P9 Water P5 Rural and local development GAP scores against RSB: 10: adequate 8: needs improvement 5: needs significant improvement 0: not covered P8 Soil P6 Food security P7 Conservation >> In this case the company would fail to meet RSB criteria Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 10

Pilot sustainability assessment Greenhouse Gas Emissions Stage Parameter 1 Jatropha Cultivation Fertilizer input, Diesel use, Pesticide input, Crop yield 2 Seed Transport Truck 3 Crushing of Jatropha seeds Plant yield, electricity used 4 Oil Transport Rail, Ship 5 Transesterification Biodiesel yield, Electricityused, NaturalGas, Additions,Glycerol, Potassium Sulphate 6 Biodiesel Transport Truck 7 Blending depot Electricity used 8 Blended Biodiesel Transport Truck 9 Fuel Filling Station Electricity used 10 Land Use Change Statusof the land in January2008 (RED) >> Assessing the carbon for the whole biodiesel chain Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 11

Pilot sustainability assessment Greenhouse Gas Emissions of other Chains GHG emissions (in g CO2 2-e/MJ fuel) 90 80 70 60 50 40 30 20 10 70% 63% 83% 56% 51% 38% 31% 19% 0% Explanation Figures of other crops are European Commision default values. Land use change is not included here Input of fertilisers is a main contributor to GHG emissions 0 Jatropha D1 Oils Jatropha RTFO default Waste oil Palm oil Sunflower Rape seed Soy bean Palm oil % shows GHG savings compared to fossile fuel Diesel Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 12

Recommendations for companies aiming for sustainability assessment (preliminary) (1/2) 1. In the business set-up and land acquisition stage: a. Ask a competent institute to do a comprehensive ESIA b. Carry out a thorough stakeholder consultation process (avoid minimalistic approach) and document it scrupulously c. Assess the carbon stock of the land before acquisition d. Make sure your business plan is realistic and viable in the long run (avoid that it is based on grants...) Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 13

Recommendations for companies aiming for sustainability assessment (preliminary) (2/2) 2. In the business operation stage: a. Install good operation practices (as all professional businesses) b. Adopt a ESMP and keep it updated c. Monitor ESMP implementation closely, document related activities meticulously (photos, records, inspections reports etc.) d. Master your GHG impact as well as the carbon finance rules e. Obtain your sustainability certificate 3. For companies considering sustainability certification: a. Contact us! (we are there to help you to make the right choices, on the basis of self assessment or quick GAP analysis) Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 14

Next steps 1. September: Finalise sustainability assessments. 2. Oktober: Workshop with the three companies in Mozambique 3. November: Finalise reports and fed back results into RSB and EU institutions. 4. Overall: Develop further projects to support Jatropha industry We offer capacity bulding in sustainability assessments to all interested Jatropha players! Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 15

Thank you for your attention! See our sustainability special on www.jatropha-alliance.org! Jatropha Alliance Matthias Spöttle Project Manager c/o GEXSI, Brunnenstraße 192 D-10119 Berlin, Germany Phone: +49 (30) 4000 4764-0 spoettle@jatropha-alliance.org www.jatropha-alliance.org Partners for Innovation BV Peter Vissers Senior Partner Cruquiusweg 20 1019 AT Amsterdam, the Netherlands Phone +31 (20) 6200511 p.vissers@partnersforinnovation.com www.partnersforinnovation.com (Workers at the Sun Biofuels plantation, having finished their day) Sustainable Access to Sustainable Energy, 27 September 2010, Moshi, Tanzania Jatropha Alliance 2010 16