Reports published by Task 40 between 2007-2010

Opportunities and barriers for international bioenergy trade

The aim of this report [643 KB] is to provide up-to-date overview of what market actors currently perceive as major opportunities and barriers for the current and future development of international bioenergy trade. The work focuses on three internationally traded bioenergy commodities: bioethanol, biodiesel and wood pellets. Data was collected through an internet-based questionnaire, which was completed by 141 respondents. Results show that import tariffs and sustainability criteria are perceived as major barriers for the trade of bioethanol (and to a lesser extend of biodiesel), while logistics are seen as an obstacle mainly for wood pellets. Development of technical standards was deemed more as an opportunity than as a barrier for all three commodities. Phytosanitary measures were not an issue for any of the investigated commodities, but may prevent the trade of other (mainly solid and unrefined) biomass, such as wood chips. Most important drivers were high fossil fuel prices and climate change mitigation policies. Concluding, some barriers for bioenergy trader are commodity specific, and will need specific actions to overcome. As a first step, import tariffs for biofuels could be reduced or abolished, linked to multi-national trade agreements and harmonization (including provisions on technical standards and sustainability requirements) which might provide the necessary preconditions for further sustained growth of international bioenergy trade.

A shortened version of this report has been submitted to Energy Policy. This background report contains additional information, including the original survey and all answers provided by the respondents. Preferably, please use the following reference for citation:

Junginger, M., van Dam, J., Zarrilli, S., Ali Mohamed, F., Marchal, D., Faaij, A., Opportunities and barriers for international bioenergy trade. Manuscript submitted for publication in Energy Policy, May 2010.


Updated overview of bioenergy sustainability certification initiatives published

The report [1,812 KB] includes an extensive overview and update on relevant certification initiatives and systems for biomass and bioenergy certification, based on the year of 2009. Examples of included initiatives are the roundtable initiatives (RSB, RTRS, BSI, etc), forestry standards (FSC, PEFC), agricultural standards (SAN, GlobalGAP) and specific voluntary standards for bioenergy (ISCC, NTA8080). Every initiative gives a description of the context, status and organization structure. This is followed by a description of its principles, criteria and indicators. The report is the background document from the paper Dam et al (2010), From the global efforts on certification of bioenergy towards an integrated approach based on sustainable land use planning (submitted to the Journal of Renewable and Sustainable Energy Reviews). This article provides a comparison between the systems, followed by an overview of current bottlenecks, and required activities, to come to a harmonized, efficient system to guarantee the sustainability of biomass and bioenergy.


World Bio-trade Equity Fund Study

Investing in bioenergy (and especially in bioenergytrade) is not generally well understood in the investment community. The objective of this study [273 KB] was to explore the possibility for the creation of a Bio-trade Equity Fund. Such a fund could be to invest in projects that promote world trade in biomass while yielding a rate of return commensurate with risk. Projects could include: improving ground-based biomass feedstock supply systems, such as advanced chipping systems and inland ships; building biomass conversion plants, such as for pellets, BioOil, 2nd generation ethanol and torrefied wood; and enhancing bio-product transportation systems, such as port improvements, purpose built loaders, and specialized biofuel ships. The study concludes that such a fund could be feasible, and outlines a possible business plan, including the setup of the fund, a time schedule and example projects a fund could invest in. It is anticipated that such a fund could result in meaningful volumes of biomass transported where they are needed most in the next 10 years to achieve renewable fuel targets. It in turn would result in the creation of jobs in developing nations, commercialization of new technologies, and ultimately reduction in worldwide GHG emissions. In case you would like to receive more information, please contact the main author of the study, Doug Bradley.


2nd Generation Biofuels and Trade - an exploratory study

A study [1,582 KB] by Douglas Bradley, Luc Pelkmans and Dieter Cupyers examines the potential supply and demand of 2nd generation biofuels up until 2030, and discusses various impacts on biofuel trade, ranging from cost advantages over shipping capacities and routes to policy impacts. It is an explorative study, highlighting the possible effects of large scale market penetraiton of lignocellulose-based transport fuels, but also highlights the large number of variables and uncertainties determining these developments. Also the impact of the global recession and the role of bio-refineries are briefly discussed.


A global overview of vegetable oils, with respect to biodiesel

The main objectives of this study [558 KB] are: i) to present a global overview of the main vegetable oils (palm, soybean, rapeseed, sunflower), ii) identify the main market trends; iii) identify the major players of the vegetable oil markets (exporters and importers), iv) assess the role of biodiesel in the vegetable oil markets; v) identify major policy developments and possible future trends. The study, written by Frank Rosillo-Calle, Arnaldo Walter and Luc Pelkmans, provides a comprehensive overview on these topics.


World Biofuel Maritime Shipping Study

Increasing long-distance transport of biomass and biofuels will put new demands on maritime shipping capacity. This study [1,151 KB] written by Task 40 members examines two maritime shipping markets (dry bulk, and liquid bulk), and discusses properties of tradable biomass, current and prospective future biomass shipping lanes, shipping capacity and prices, and concludes with an outlook and shipping needs.


Bio-trade & Bioenergy Success Stories

Task 40 members have compiled an overview of bio-trade and bioenergy success stories, covering ethanol and biodiesle in the US, wood pellets in Canada and Austria, and pyrolysis oil in Canada, including an analysis of important preconditions and drivers, barriers overcome, and possible future developments. The study is available here [815 KB] for free download.


Comprehensive global pelet and sawdust resource assessment

The study “Global Wood Pellets Markets and Industry: Policy Drivers, Market Status and Raw Material [3,558 KB] " covers the recent market and industry developments over the last decade for the most existing and emerging wood pellets markets, with the special focus on the situsation in mid-2007.


Market Evaluation: Fuel Ethanol

The ethanol markets report [347 KB] written by Arnaldo Walter et al. aims at evaluating the development of fuel ethanol market as automotive fuel up to 2030 and the potential for international biotrade. Based both on forecasts of gasoline consumption and on targets/mandates of fuel ethanol use it is estimated that the fuel ethanol demand can reach 272 Gl in 2030 (from 33 Gl in 2005), displacing 10% of the estimated demand of gasoline at that year. The analysis was developed explicitly considering fuel ethanol consumption and production in USA, EU 25, Japan, China, Brazil and in the rest of the world (ROW-BR). Then, an exploratory exercise was developed in order to evaluate the potential international trade in 2030. In case of extreme protective policies to preserve the interests of farmers in USA and EU, imported volumes by USA, EU, Japan and China would reach 24 Gl, less than 20% of the estimated consumption of fuel ethanol in these countries/regions. In case USA and EU set quotas equivalent to 30% of their estimated consumption of ethanol, imports would be increased to 45.9 Gl (38% of the estimated consumption). It is estimated that Brazil alone could supply this demand by 2030, but other countries in the world – mostly developing countries – have potential to be large-scale producers and exporters of fuel ethanol during the following 25 years.

Bioenergy and biomass trade: Evaluation of models’ suitability for analysing international trade of biomass and bioenergy products

This report [212 KB] evaluates existing international economic models of the forest sector, the agricultural sector and/or the energy sector in order to assess their strong and weak points for analysing international trade of biomass and bioenergy products. The overview is mainly focused on public models used by academia, based on publicly available data sources. These models usually have a time horizon of several decades. Commercial trade models, which typically have a time horizon of month or a few years, are not considered.

INTERNATIONAL BIOENERGY TRADE - scenario study on international biomass market in 2020

The markets of biomass for energy are developing rapidly and becoming more international. A remarkable increase in the use of biomass for energy needs parallel and positive development in several areas, and there will be plenty of challenges to overcome. The main objective of the study [672 KB] was to clarify the alternative future scenarios for the international biomass market until the year 2020, and based on the scenario process, to identify underlying steps needed towards the vital working and sustainable biomass market for energy purposes. Two scenario processes were conducted for this study. The first was carried out with a group of Finnish experts and the second involved an international group. A heuristic, semi-structured approach, including the use of
preliminary questionnaires as well as manual and computerised group support systems (GSS), was applied in the scenario processes. The scenario processes reinforced the picture of the future of international biomass and
bioenergy markets as a complex and multi-layer subject. The scenarios estimated that the biomass market will develop and grow rapidly as well as diversify in the future. The results of the scenario process also opened up new discussion and provided new information and collective views of experts for the purposes of policy makers. An overall view resulting from this scenario analysis are the enormous opportunities relating to the utilisation of biomass as a resource for global energy use in the coming decades. The scenario analysis shows the key issues in the field: global economic growth including the growing need for energy, environmental forces in the global evolution, possibilities of technological development to solve global problems, capabilities of the international community to find solutions for global issues and the complex interdependencies of all these driving forces.

Sustainable Forest Biomass Supply Chains

This study [342 KB] was undertaken to gain an understanding of the potential long-term costs to develop forest residue sources in Canada. Cost experience in other countries, in particular Finland and Sweden, are reviewed to assess for planning purposes what the long term anticipated costs might be to acquire forest residue in Canada, and use this assessment to estimate the amount of forest biomass that might be available for domestic purposes and exports. Based on costs in existing supply chains and on evidence from recent trials, the estimated cost to pre-pile, chip and transport roadside residues, including costs related to forest management, is $46/ODt for 100 km. This should fall to under $44 by 2010 as the chain tightens up. Canadian supply chain costs for roadside chipping are projected to fall to $40/ODt by 2015. Estimated costs to bundle and transport roadside biomass 100 km are $50/ODt in 2007-08, $42/ODt in 2010, and $37/ODt by 2015, as the effects of learning and process and equipment improvements are felt. Based on the local demand and logistic limitations of the various parts of Canada, it is estimated that overall, 11 million ODt biomass in Canada may be available for export.