Abstract
A greenhouse gas (GHG) emission reduction obligation system has been implemented in the Swedish road transport sector to promote the use of biofuels. For transportation fuel suppliers to fulfil this obligation, the volume of biofuel required decreases with decreasing life cycle GHG emission for the biofuel, linking lower GHG emission to higher economic value. The aim of this study was to investigate how the economic competitiveness of a Swedish emerging lignocellulosic-based ethanol production system would be influenced by the reduction obligation. The life cycle GHG emission for sawdust-based ethanol was calculated by applying the method advocated in the EU Renewable Energy Directive (RED II). The saving in GHG emissions, compared with fossil liquid transportation fuels, was 93% for a potential commercial production system in southern Sweden. This, in turn, will increase the competitiveness of sawdust-based ethanol compared to the mainly crop-based ethanol currently used in the Swedish biofuel system, which has an average GHG emission saving of 68%, and will allow for an almost 40% higher price of sawdust-based ethanol, compared to the current price of ethanol at point of import. In a future developed, large-scale market of advanced ethanol, today’s GHG emission reduction obligation system in Sweden seems to afford sufficient economic advantage to make lignocellulosic ethanol economically viable. However, in a short-term perspective, emerging lignocellulosic-based ethanol production systems are burdened with economic risks and therefore need additional economic incentives to make a market introduction possible.
Highlights
In 2018, the Swedish Government imposed an obligation on the road transportation sector to reduce the greenhouse gas (GHG) emissions from fossil fuels
This reduction obligation means that fuel suppliers in Sweden are required to blend biofuels into fossil fuels to achieve an overall reduction in GHG emission for the fuel blend compared to a fossil fuel comparator
The ethanol produced from sawdust will have a life cycle GHG emission of 6.7 g CO2 -equivalents (CO2-eq) /MJ in the base case, which is equivalent to a GHG emission reduction of 93% compared to the fossil fuel reference value of 94 g CO2-eq /MJ given in RED II
Summary
In 2018, the Swedish Government imposed an obligation on the road transportation sector to reduce the greenhouse gas (GHG) emissions from fossil fuels. This reduction obligation means that fuel suppliers in Sweden are required to blend biofuels into fossil fuels to achieve an overall reduction in GHG emission for the fuel blend compared to a fossil fuel comparator. The lower the GHG emission of the biofuel, the lower the amount needed to achieve the required overall reduction in emission. This creates an economic advantage for biofuels with low life cycle GHG emissions. All biofuels must fulfil the sustainability criteria set out in RED II, including a GHG emission saving of at least 65% compared to the fossil fuel comparator of 94 g
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
