Triple bottom line study of a lignocellulosic biofuel industry

Abstract

AbstractGrowing concerns about energy security and climate change have prompted interest in Australia and worldwide to look for alternatives of fossil fuels. Among the renewable fuel sources, biofuels are one such alternative that have received unprecedented attention in the past decade. Cellulosic biofuels, derived from agricultural and wood biomass, could potentially increase Australia's oil self‐sufficiency. In this study, we carry out a hybrid life‐cycle assessment (LCA) of a future cellulose‐refining industry located in the Green Triangle region of South Australia. We assess both the upstream and downstream refining stages, and consider as well the life‐cycle effects occurring in conventional industries displaced by the proposed biofuel supply chains. We improve on conventional LCA method by utilising multi‐region input–output (IO) analysis that allows a comprehensive appraisal of the industry's supply chains. Using IO‐based hybrid LCA, we evaluate the social, economic and environmental impacts of lignocellulosic biofuel production. In particular, we evaluate the employment, economic stimulus, energy consumption and greenhouse gas impacts of the biofuel supply chain and also quantify the loss in economic activity and employment in the paper, pulp and paperboard industry resulting from the diversion of forestry biomass to biofuel production. Our results reveal that the loss in economic activity and employment will only account for 10% of the new jobs and additional stimulus generated in the economy. Lignocellulosic biofuel production will create significant new jobs and enhance productivity and economic growth by initiating the growth of new industries in the economy. The energy return on investment for cellulosic biofuel production lies between 2.7 and 5.2, depending on the type of forestry feedstock and the travel distance between the feedstock industry and the cellulose refinery. Furthermore, the biofuel industry will be a net carbon sequester.