‘Sustainable International BioEnergy Trade:
Securing supply and demand’
The Bioenergy Group (BEG)
Imperial College London
Centre for Energy Policy and Technology (ICEPT)
Contact: f.rosillo-calle@imperial.ac.uk

The driving force behind the expansion in bioenergy is the potential it holds in providing an affordable and practical renewable source of energy for energy security, climate change mitigation and rural development. Biomass resources are potentially a very large sustainable energy resource. Various scenarios have estimated the bioenergy potential for the period 2025-2050, at between 67EJ and 450EJ (1), and 440 EJ/yr (10.12Gtoe) (2). This compares with the current use of biomass to supply about 55EJ of primary energy.

Given the growing importance of biotrade in the rapidly expanding international bioenergy sector, both positive and negative outcomes are highly possible. Bioenergy has been utilised primarily at local levels and in situ (e.g. forestry and pulp and paper industries), and historically, little has been traded, either nationally or internationally. However, bioenergy already comprises a significant and an integral part of local trade, both for small-scale domestic and industrial uses e.g. approx 100 PJ (50 PJ in Europe) is traded internationally, mainly in Northern Europe and Canada. International trade makes sense only in the case of large-scale modern industrial applications e.g. heat and power generation, fuel ethanol, bio-diesel, etc. where logistics can be tightly integrated.

Currently the most promising areas for international trade are: i) woodchips for heat and power, i) ethanol fuel (currently confined mostly to bilateral agreements), and iii) charcoal and briquettes, traded in value-added markets (e.g. restaurants). Ethanol seems to be one of the most realistic options for establishing a truly global bioenergy trade, at least within the present decade, with over three billion litres traded in 2004, with Brazil and the USA as the main exporters, and Japan and EU the main importers.

Potential benefits for the UK

In February 2003, the British Government agreed to reduce GHG emissions by 20% in 2010 and by 60% by 2050. Bioenergy remains one of the key components for the provision of low carbon energy in the transport, electricity and heat sectors. The key national instruments for incentivising these bioenergy markets are either in place or under active development e.g. the Renewables Obligation and the proposed Renewable Transport Fuels and Heat Obligations. Biomass is likely to be the major potential source of low carbon energy in the UK. However, given its limited indigenous potential, a significant share may need to be secured through sustainable and reliable imports. However, the mechanisms for ensuring sustainability are not yet in place.

Given this uncertainty, the added value to the UK of participation in Task 40 includes:
• Gaining an understanding of existing and potential global trade patterns and supply sources.
• Influencing policy developments in emerging trade agreements e.g. WTO, WB, FAO.
• Shaping future bioenergy trade e.g. accreditation/certification issues.
• Sharing early information on international biotrade and experiences with key world players.

Imperial College London (IC) and the Bioenergy Energy Group (BEG) will act as the focal point for UK activities within IEA Task 40 through BEG. BEG has considerable research experience in the bioenergy field and has contributed to a large number of projects, in virtually every aspect of biomass energy development (field research, technology appraisal, policy development, etc.) around the world.

IC/BEG will do so led by a stakeholder group to ensure that the inputs to Task 40 are representative of all of the UK-relevant institutions and actors. Funding institutions will be able to participate in the steering committee led by the stakeholder group. Relevant deliverables:

• An analytical summary of the task meetings including its relevance to the UK bioenergy sector.
• Full minutes and copies of presentations made for each task meeting.
• UK and international policy updates- focusing on the impacts on imports and exports of bioenergy into and out of the UK. These updates will include ‘horizon scanning’ activities summarising areas of particular risk and opportunity for UK commercial activities.
• We will highlight key activities on carbon accreditation, environmental impact assessment and benchmarking.

Through these deliverables funding institutions will have the opportunity to input comments and feedback into the Task at all levels. This will also provide interaction with the key international organisations involved with setting the regulatory and policy environment for all aspects of biotrade, including, the EU, FAO, World Bank and WTO.

For further information see:
http://www.iccept.imperial.ac.uk/research/bioenergygroup/beg.html



Contact persons are Frank Rosillo-Calle, Jeremy Woods, and Ausilio Bauen.

(1) See Hoogwijk et et al (2001) A review of assessment on the future global combustion of biomass energy, 1st World Biomass Congress- Biomass Energy & Industry, Sevilla, Spain.
(2) See IPCC-TAR (2000) Climate change 2001: Mitigation, Mentz et al (eds), 3rd Assessment of the IPCC, Cambridge University Press