• Project Overview
• Steering Committee
• Work Groups
  • WG Member Lists
  • WG1 Biomass
  • WG2 Conversion
  • WG3 End Use
  • WG4 Sustainability
  • WG5 Marketing
• Biofuels Mirror Group
• National Biofuels TPs
• Stakeholders

• SRA/SDD
• European Industrial Bioenergy Initiative
• R&D&D Mapping
• Plenary Meetings
  • SPM3 2010
  • SPM2 2009
  • SPM1 2008
• Workshops
• Consultations
• KBBE & ETPs
  • European TPs Info
  • Related ETP Links
    • Sustainable Chemistry
    • Forest-Based Sector
    • Plants for the Future
    • Hydrogen and Fuel Cell
    • ERTRAC
  • BeCoTeps
  • Star-COLIBRI
  • ERA-NET Bioenergy
  • ESFRI EWG

• General Information
• R&D&D Funding
• Global Biofuels
  • Global overview
  • North America
  • South America
• Biomass Resources
  • Energy crops
  • Forestry
  • Agricultural Residues
  • Waste streams
  • Algae
• Fuel Production
  • Second Generation
    • Biomass to Liquid (BtL)
    • Cellulosic ethanol
    • BioDME/Methanol
    • BioSNG
    • Bio-oil/Bio-crude
    • Bioelectricity/CHP
    • Algal biofuels
    • Catalysis
    • Biohydrogen
    • Butanol
  • First Generation
    • Biodiesel
    • Bioethanol
    • ETBE
    • SVO
    • Biogas/Landfill Gas
• Use of Biofuels
  • Road Transport
    • Cars
    • Freight
  • Boats and shipping
  • Aviation
  • Trains
• Biofuels Legislation
• Biofuels Markets
• Sustainability
  • Certification
  • Environmental impact
  • Land availability
  • Food vs fuel
  • Indirect effects

Global biofuels - an overview

The R&D&D of biofuels value chains in Europe is considered by the EBTP in the context of all aspects of global biofuels:

• Availability and sustainablility of feedstocks at a local and global level
• Growth in production and use of biofuels worldwide
• Commercilisation of innovative bioconversion technologies
• End Use of biofuels for road, air, rail and shipping
• Public and private investment
• Potential impacts on communities both within and outside the EU27

Availability and sustainability of feedstocks at a local and global level

A wide range of feedstocks are available globally for biofuel production including energy crops (e.g. Miscanthus, Jatropha, Short Rotation Copice), wastes (e.g. waste oils, food processing wastes, etc), agricultural residues (straw, corn stover, etc), forestry residues and novel feestocks, such as algae.

The impacts of growing populations and climate change, mean there is increasing local and global competition for land, feedstocks and water for food production (crops and livestock), non-food crops (e.g. plant oils for soap production, timber for construction), and bioenergy (heat and power).

At the same time, biodiversity (species of plants and animals) need to be conserved, and forested areas must be protected as they act as importrant habitats and carbon sinks. In other words, the forests store large amounts of carbon in vegetation and soil. If areas are cleared for logging, grazing, crop production or roads, the carbon is released into the atmosphere and habitat is lost.

In order to ensure that communities, biodiversity and land are protected a number of certification schemes and sustainability initiatives have been put in place for biofuels. These include initiatives by trade organisations, civil societies (NGOs), and government bodies. Further details are provided by the links below.

Sustainability links

Certification links

Growth in production and use of biofuels worldwide

Various projections for global growth of biofuels production to 2020 have been made by international organisations, independent consultants and biofuels associations.

World Fuel Ethanol Production 2008

The report 'Global Biofuel Market Analysis' by RNCOS estimates that Brazil and the US accounted for 87% of global biofuel production in 2008, driven by government support.

The RNCOS report forecasts that biodiesel production will grow at a Compound Annual Growth Rate (CAGR) of 6% from 2009 to 2018, with bioethanol production increasing at 5% CAGR over the same period. The report predicts significant growth potential for biofuels in India and China.

This prediciton is reinforced by the OECD (Organisation for Economic Co-operation and Development) and UN FAO food agency, which projected that global ethanol production would double between 2007-2017 reaching 125 billion litres. Biodiesel is predicted to increase from 11 billion litres to 24 billion litres over the same period (these forecasts assumed that there would not be major changes in US or EU policies supporting the production and use of biofuels through tax incentives and blending targets).

International trade in ethanol is expected to grow rapidly over the next decade, mainly with exports from Brazil to the US and EU. However, growth in international trade in biodiesel is anticipated not to grow significantly due to technical issues, issues surrounding trade in plam oil, policies such as the introduction of B-99 'anti-dumping' duties, and increased national production of biodiesel by consuming countries.

The European Biodiesel Board estimates that European Union biodiesel production totaled 7.7 million metric tons (approximately 3 billion gallons) in 2008, comprising 78% of the biofuels consumed in the EU. The EBB estimates the EU is responsible for 65% of the world’s biodiesel output.

European Biodiesel Production 2008

A much publicised report by Pike Research forecast that combined biodiesel and ethanol markets will reach $247 billion in sales by 2020, up from just $76 billion in 2010. The report predicts "three big waves" will hit the market: waste oils (2010), Jatropha-based fuels (2014), and algae-based biodiesel (2016). However these are dependent on the development and demonstration of new technologies and supply chains. Hence the timeframes may be ambitious for a tripling of biofuel production, particularly given the concerns about sustainability of biofuels, which have led to a 'softening' of biofuels targets in the EU (now 10% RES in transport by 2020 including bioelectricity and biofuels).

China

A presentation on Biofuel Market Development in China was made by Lin Gan of the Centre for International Climate and Environmental Research (CICERO), Norway at the Roundtable on Sustainable Biofuels, Sào Paulo, November 2008.

The presenatation indicates that China is already the world's third largest producer of ethanol (90% from corn) and has ambitious growth targets for ethanol and biodiesel. There is growing interest in the use of non food crops, with two large state oil companies involved in demonstration projects based on Jatropha. There is a need for reduction in energy-inputs and an introduction of sustainabiltiy criteria, but there is extensive potential for second generation production from wastes and residues.

"China National Cereals, Oils and Foodstuffs Corp. (COFCO) is investing 50 million Yuan (U.S.$6.5 million) to build a cellulosic ethanol pilot plant. The plant in Zhaodong, in the northeastern province of Heilongjiang, will have an annual capacity of 5,000 tonnes. Another cellulosic ethanol pilot plant with a production capacity of 10,000 tonnes is being planned in the Yucheng area of Shandong." (Source: APEC Biofuels).

India

In 2006, India accounted for 4% of global ethanol production (2m kilo litres) from sugar cane and has plans to expand its production of biofuels. R&D&D on Cellulosic Ethanol is increasing with PRAJ Industries developing technology for cellulosic etahnol. Reliance Life Sciences is also active in developing biodiesel (from Jatropha and other non-food oil seed crops), ethanol (from cellulosic biomass) and biobutanol.

In February 2009, India and the US exchanged a memorandum for cooperation on biofuels development, covering the production, utilization, distribution and marketing of biofuels in India.

Russia

Information on biofuels in Russia is provided by the Russian National Biofuels Association

Australia

In depth information about biofuels production in Australia is available from the Biofuels Association of Australia

In August 2009, The Australian Government's $15 million Second Generation Biofuels Research and Development Program was awarded to seven projects (pending negotiations).

Japan and Asia Pacific

In comparison to Brazil, the US and Europe biofuels industry in Japan is in its infancy. A background to biofuels in Japan and other countriesis provided by Asia Pacific Economic Cooperation (APEC)

Countries covered include: Australia, Brunei, Canada, Chile, China, Chinese Taipei, Hong Kong (China), Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, The Philippines, Russia, Singapore, Thailand, United States, and Viet Nam.

Other links:

Key OECD graphs biofuels production

OECD Report: Developments in Bioenergy Production across the World - Electricity, Heat and Second Generation Biofuels (431 Kb)

Global Biofuels Centre

BioTop reports on biofuels in Latin America

Interactive Latin American Biofuels Map

 

Commercialisation of innovative bioconversion technologies

The development of markets for second generation (2G) biofuels is dependent on the availability of sustainable feedstocks (improving public acceptance of biofuels) and the demonstration and commercialisation of value chains based on new bioconversion technologies.

In Europe, the EBTP has developed a Strategic Research Agenda for biofuels (due to be updated by early 2010), and has made proposals for a European Industrial Bioenergy Initiative (EIBI) outlining plans for pre-commercial demonstration of value chains for production of 2G biofuels.

The United States is making substantial investments to bring second generation biofuels to market, particularly cellulosic ethanol, as outlined in the National Biofuels Action Plan (PDF 5.0 Mb).

in May 2009 the US DOE announced plans to Invest $786.5 Million in Recovery Act Funds in Biofuels. The funding for biorefineries includes a $480 million solicitation for pilot- and demonstration-scale "integrated" biorefineries, which produce advanced biofuels, biobased products, and heat and power in a single integrated system. In July the DOE announced 2009 $85m funding for development of algae-based biofuels and advanced, infrastructure-compatible biofuels.

In Canada, the NextGen Biofuels Fund™, aims to bring biodiesel and cellulosic etahnol projects to market sooner by helping them bridge the high CAPEX (capital expenditure) gap to scale-up their technology solution to a large, demonstration-scale plant. 

Transatlantic research cooperation on advanced biofuels

Research cooperation also occurs between the US and EU, both through the involvement of EU companies and universities in Amercian biofuels development programmes and through joint initataives. For example, the EC-US task force on biotechnology research includes a Bio-based Products working group. The joint working group was established in 2004 to facilitate and coordinate collaborative (EU-US) research in molecular biology to create or improve biobased products and biofuels.

Research cooperation between the EU and South America is fostered through initiatives such as BioTop - Biofuels RTD Cooperation Latin America - Europe and FP7 Energy Second Generation Biofuels - EU Brazil Coordinated Call

 

End use of biofuels for road, air, rail and shipping

In the coming decades, biofuels will be required for road, air, rail and shipping. An integrated biofuels strategy is required for meeting the competing needs of these different transport types on national and international level.

For example, the Sustainable Aviation Fuel Users Group SAFUG brings toegther airlines from around the world, as well as sustainability projects, to create a path forward for the introduction of novel jet fuels. The aviation industry is also represented on the Steering Committee and Working Groups of the EBTP. The needs of the shipping and rail industries are being incoporated into the updated EBTP SRA/SDD.

 

Public and private investment

A combination of public and private investment will be needed to demonstrate and commercialise second generation biofuels on both sides of the Atlantic. In Europe, this objective will be supported by the European Industrial BioEnergy Initiative.While in the US, significant government funds are being provided to accelerate the develeopment of biofuels markets.

Venture Capital also plays an important role, as outlined in the presentation on Private Equity funding of advanced biofuels technologies: a European and North American outlook (271 Kb PDF) by New Energy Finance given at the EBTP Second Stakeholder PLenary Meeting (SPM2) in January 2008.

 

Potential impacts on markets and communities both within and outside the EU27

The impact of growing biofuels markets has the potential to provide new jobs and incomes throughout the supply chain from rural communities and farmers to biotechnology and engineering companies, and fuel producers and distributors across the world. The EU, the US, South America, emerging economies and developing nations, can all potentially benefit from the development of sustainable advanced biofuels.

The Report US Economic Impact of Advanced Biofuels Production: Perspectives to 2030 (pdf) analyzes how growth of an advanced biofuels industry will impact four areas critical to U.S. economic recovery, including job creation, economic output, energy security and investment opportunity. The report suggested that the advanced biofuels industry could create 29,000 new jobs and create $5.5 billion in economic growth over the next three years and could ultimatelty create 800,000 new jobs by 2022 with a positive effect on output of $148.7 billion. In this scenario, the cumulative total of avoided petroleum imports over the period 2010–2022 would exceed $350 billion.

Brazil and the Netherlands have signed a cooperation agreement on the sustainable production of biofuels. This will involve helping developing nations to establish sustainable biofuels crops.

The FP6 project COMPETE Competence Platform on Energy Crop and Agroforestry Systems for Arid and Semi-arid Ecosystems- Africa (COMPETE) aims to stimulate bioenergy implementation in arid and semi-arid regions in Africa.

The EU-Africa Energy Partnership also paves the way for cooperation on production of renewable energy resources including biofuels. The African Biofuels conference has also highlighted the development potential of biofuels, both as a means of reducing reliance on imports of fossil fuels and for export. However, food shortages, drought and social stability are still significant issues that have to be addressed in many regions of Africa.

In countries around the globe where 'social justice is not a high priority for government', there are concerns that land could be seized from rural communities or farmers could be forced to grow large areas of biofuel monocultures with little concern given to energy inputs, local food supply, water resources or health issues. This reinforces the need for a common set of sustainability standards to be applied across global biofuel supply chains. These standards need to cover all major energy crops and producer countries, and should be enforced by monitoring and certification. Such measures will help to protect vulnerable communities in developing nations, create a 'level playing field' for global trade in biofuels and increase the social acceptability of biofuels among consumers.

Global sustainability standards should equally be applied to biomass feedstocks for heat and power and other non-food bioproducts, while legislation should not severely constrain the development of advanced biofuels, which are needed to meet climate change targets and maintain the security of energy supply and future mobility in Europe.