Biofuel Value Chains Research Articles

A regionalized social life cycle assessment of a prospective value chain of second-generation biofuel production

The German Bioeconomy focuses on innovation and in particular on the smart mobilization of resources to produce high-value-added bio-based products, processes and services. In the case of the production of biofuels, the demand for reducing fossil fuel utilization has placed the focus on second-generation biofuel value chains, which mobilize residual streams as their main biomass feedstocks. However, while the environmental impacts of these value chains have been studied using life-cycle approaches, little attention has been given to their social implications. This work aims to fill this gap by assessing the potential social hotspots associated with the production of second-generation biofuel through a prospective case study in Eastern Germany. We use the RESPONSA framework, a regionalized social life cycle assessment developed specifically for assessing value chains of the German Bioeconomy. The results for 22 social indicators reveal that while biofuel production generates employment opportunities, aspects such as working conditions, support for professional qualification, and workers’ participation have an overall poor social performance. The results lead to conclude that socioeconomic issues related to advanced biofuel production persist, exhibiting a socioeconomic disparity, with employment creation being the only area of socioeconomic benefit. Yet, there is a contradiction between job creation and addressing broader social issues in the biofuel industry, which underlines the need for a balanced approach to reconcile environmental objectives with social development. These results provide an opportunity to discuss how to mitigate the negative social impacts of second-generation biofuel production in the region.

Optimized utilization of Salix—Perspectives for the genetic improvement toward sustainable biofuel value chains

AbstractBioenergy will be one of the most important renewable energy sources in the conversion from fossil fuels to bio‐based products. Short rotation coppice Salix could be a key player in this conversion since Salix has rapid growth, positive energy balance, easy to manage cultivation system with vegetative propagation of plant material and multiple harvests from the same plantation. The aim of the present paper is to provide an overview of the main challenges and key issues in willow genetic improvement toward sustainable biofuel value chains. Primarily based on results from the research project “Optimized Utilization of Salix” (OPTUS), the influence of Salix wood quality on the potential for biofuel use is discussed, followed by issues related to the conversion of Salix biomass into liquid and gaseous transportation fuels. Thereafter, the studies address genotypic influence on soil carbon sequestration in Salix plantations, as well as on soil carbon dynamics and climate change impacts. Finally, the opportunities for plant breeding are discussed using willow as a resource for sustainable biofuel production. Substantial phenotypic and genotypic variation was reported for different wood quality traits important in biological (i.e., enzymatic and anaerobic) and thermochemical conversion processes, which is a prerequisite for plant breeding. Furthermore, different Salix genotypes can affect soil carbon sequestration variably, and life cycle assessment illustrates that these differences can result in different climate mitigation potential depending on genotype. Thus, the potential of Salix plantations for sustainable biomass production and its conversion into biofuels is shown. Large genetic variation in various wood and biomass traits, important for different conversion processes and carbon sequestration, provides opportunities to enhance the sustainability of the production system via plant breeding. This includes new breeding targets in addition to traditional targets for high yield to improve biomass quality and carbon sequestration potential.

An Assessment of Liquid Biofuel Value Chains from Heavy-Metal Contaminated Feedstock

The present work aims to identify alternative liquid biofuel value chain scenarios utilizing heavy metal (HM)-contaminated biomass feedstocks. The analysis is based on breaking down existing liquid biofuel value chains, focusing on the required adaptations needed for clean biofuel production. State-of-the-art and emerging liquid biofuel production options are reviewed. The potential implications caused by the HM load in the biomass feedstock are analyzed along the whole biofuel production chain, which includes pre-processing, conversion and post-processing stages. The fate of the most common HM species present in contaminated biomass is identified and graphically represented for advanced (second generation) biofuel conversion processes. This information synthesis leads to the description of alternative value chains, capable of producing HM-free biofuel. This work goes a step further than existing reviews of experiments and simulations regarding heavy metal-contaminated biomass (HMCB) valorization to biofuels since feasible value chains are described by synthesizing the findings of the several studies examined. By defining the adapted value chains, the “road is paved” toward establishing realistic process chains and determining system boundaries, which actually are essential methodological steps of various critical evaluation and optimization methodologies, such as Life Cycle Assessment, supply chain optimization and techno-economic assessment of the total value chain.

Climate change mitigation of drop-in biofuels for deep-sea shipping under a prospective life-cycle assessment

The shipping sector is seeking options to reduce its emissions of greenhouse gases (GHGs) and achieve ambitious climate change mitigation goals. Unlike short-sea shipping that can rely on electrification of coastal vessels, drop-in biofuels are among the most promising options for deep-sea shipping decarbonization. However, environmental sustainability analyses of marine biofuels are limited, and usually do not include the influence of future changes in the background energy system nor the climatic effects of near-term climate forcers (NTCFs). In our study, we assess the climate change mitigation potential of various marine biofuels produced from forest residues in Norway (a country with ambitious plans for emission reduction from shipping) using a prospective life-cycle assessment (LCA) where the projected trends in the energy and transport sectors are integrated with improvements in the biofuel value chain for the next decades (2030–2050). Relative to fossil-based alternatives, climate mitigation potentials of biofuels range from 65% to 85% with short-term (GWP20) and to 78%–87% with long-term (GTP100) climate impacts. The inclusion of NTCFs reduces the mitigation benefits of biofuels in the short term, while it slightly increases them in the long term. The explicit modeling of technology and socio-economic changes under future policy scenarios indicates a reduction in the climate impacts of biofuels by up to 54% in 2050 when compared to the current situation. The amount of residues potentially available in Norway is sufficient to meet the present demand for liquid fuels in deep-sea shipping, thus providing yearly climate mitigation of 0.9–1.1 million tons of CO2-eq (equal to 6–7% of today's climate impacts from the entire transport sector in the country). Our analysis shows the large climate change mitigation potential of drop-in biofuels, and it provides new quantitative estimates that can help guiding a sustainability shift in the deep-sea shipping sector.

Advanced Biofuel Value Chains through System Dynamics Modelling and Competitive Priorities

The greatest challenge in accelerating the realisation of a sustainable and competitive bioeconomy is to demonstrate that enshrining sustainability principles at the very heart of a production line can generate value and improve its overall system. Strategies for reducing emissions, pollutants, indirect land use change or soil depreciation are all perceived as costs or necessary inconveniences to comply with stringent, climate change-focused policy frameworks. System dynamics modelling and competitive priorities are tools that can accurately and intelligently expand on the cross-value chain approach, which integrates both technical and environmental performances, to address the issue of harmonising sustainability and technical operations as one overall dimension of performance. A stock-and-flow model is developed to map a full biofuel value chain and quantitatively and coherently integrate factors of emissions, carbon, land, production, and technology. As such, environmental and operational impacts of innovative practices are measured, and subsequently linked to a qualitative framework of competitive priorities, as defined by transparency, quality, innovation and flexibility. Sustainability and productivity functions are found to reinforce each other when all competitive priorities are optimised. Equally, the framework provides a clear understanding of trade-offs engendered by value chain interventions. Advantages and limitations in the accessibility, scope and transferability of the multi-pronged analytical approach are discussed.

Biofuel value chains and contractual relationships

One of the main issues in growing energy crops for the production of liquid biofuels, at global level, is the availavility of land to do so (S. C. Trindade, 2010). Some nations in temperate areas do not count on those productivity rate as those as the ones presented by tropical countries (S. Trindade, 2005).

Biofuel value chains and contractual relationships

The following section will present a complete description of how value chains work within the biofuel industry and how legal and informal arrangements are establish to ease these chains’ functioning. This description is particularly useful to understand how benefits and responsibilities are distributed from a socioeconomic perspective.

Perspectives and economics of combining biomass liquefaction with solar PV for energy storage and electricity production

ABSTRACT This article provides perspectives on the opportunities and challenges of integrating biomass liquefaction plants (pyrolysis, hydro-pyrolysis, hydrothermal liquefaction, liquefaction in hydrocarbon solvents, etc.) with intermittent renewables such as wind and solar photovoltaic (PV) to provide energy storage and support the development of biofuel production. A techno-economic model is used to assess the levelized cost of electricity from a plant that integrates solar PV with bio-crude production from pyrolysis and its combustion in an engine. The analysis finds that the LCOE for solar PV and biomass pyrolysis is in the range of 65 to 85 USD/MWh when using woody biomass feedstocks, making the scheme competitive with solar PV and lithium-ion batteries. This article also discusses how the integration of biomass liquefaction with intermittent renewables can aid the development of liquid biofuel value-chains by increasing bio-crude supply and supporting the establishment of biorefineries.

A framework for profitability evaluation of agroforestry‐based biofuel value chains: An application to pongamia in India

AbstractBiofuel production from oilseed trees in small‐scale agroforestry systems is considered as a strategy for energy security, rural development and ecosystem services provision in low‐income countries. However, the economic potential of these systems remains unclear, as profitability studies commonly ignore key methodological issues such as quantitative uncertainty analysis, full accounting for opportunity costs, and inclusion of all value chain actors. This study addresses these methodological shortcomings and develops a framework for quantifying the long‐term financial performance of agroforestry‐based biofuel value chains. The framework is applied to a case in South India, to calculate profitability of pongamia (Millettia pinnata) cultivation and processing. The results show that pongamia cultivation has limited financial potential, and is only profitable in small‐scale settings, in the middle to long term and for a subset of farmers. If biodiesel is envisaged as the end product, the value chain requires substantial fiscal and marketing support to be economically viable. For current prices, financial performance is much higher if the seed oil is marketed instead of processed to biodiesel. Increased mechanization, increased yields and optimized agroforestry set‐ups might improve financial outcomes and reduce risks for both farmers and processors. These findings are case‐specific, while the developed framework opens the door to comprehensive investigation of the financial performance of other oilseed tree species and in other regions.

Evolution in inter-firm governance along the transport biofuel value chain in Maritime Silk Road countries

We investigate how value chain governance can evolve in the transport biofuel sector beyond logistics and operations optimization, drawing on cases of eighteen manufacturers in four Belt and Road countries. We find that key motivations for vertical integration include control of strategic factors such as security of supply and gaining access to the retail market, subject to inter-institutional and intra-organizational barriers. We contribute to a theory of governance mode selection by suggesting plural governance mode offers a key strategic choice under institutional constraints. In BRI countries, plural mode could be less disruptive when integrating value chains.

Redesigning oilseed tree biofuel systems in India

Liquid biofuel production has been widely promoted as a rural development strategy in the South. Yet, the development of biofuel value chains faces many context-specific challenges. In this empirical study we use a labelled choice experiment to assess smallholder farmer preferences for alternative production systems, value chain organisations and market developments for a biofuel program using oilseed trees (neem (Azadirachta indica), pongamia (Millettia pinnata), mahua (Madhuca longifolia)) in Karnataka state, India. Our results demonstrate that biofuel programs can benefit from ex ante analyses to improve their design. We find that most farmers (71%) are likely to adopt biofuel trees in most scenarios, especially species with relatively high yields, low labour requirements and high oilseed prices. Nevertheless, value chain reorganization through contracting and labour provision proves to be the key lever to stimulate adoption. This calls for further research on effective contract design and implementation, and for developing alternative business models. Our results imply that next to high opportunity costs of land, also high opportunity costs of labour can be a barrier to biofuel tree adoption. If biofuel programs are to succeed, they have to move beyond the idea of smallholder biofuel production on marginal lands with surplus labour.

The Character of Emerging Biofuel Value Chains: Focus on the Chisumbanje Sugarcane Bio-ethanol Chain in Zimbabwe

The investments in large scale sugarcane production for processing into ethanol fuel that have occurred in Zimbabwe have generated debate in the media and the public in general. This paper characte...

The rise and fall of foreign private investment in the jatropha biofuel value chain in Ghana

The article draws on the multi-level perspective (MLP) and global value chain (GVC) frameworks to analyse the drivers and trajectories of foreign private investment in biofuel production in Ghana. It is based on a narrative of the evolution of a niche for jatropha production in Ghana in the period 1995–2016 including company case studies. The factors analysed relating to MLP are alignment of expectations, network formation, and learning and knowledge sharing, and those relating to GVC are chain structure, governance, ownership, and access to land and capital. High entry barriers for creating a new agriculture-based value chain for global biofuel markets, i.e. high volume requirements, high capital needs, and market risks contributed to the collapse of the jatropha sector in Ghana. A low level of learning and knowledge sharing between jatropha actors in Ghana, alongside weak public R&D support, reduced access to technical and managerial information. Confirming previous GVC research on biofuels, policy and NGOs had a stronger influence on the jatropha value chain than in typical agricultural chains. Moreover, global drivers and the strategies and capabilities of foreign investors can strongly influence the development of a new biofuel value chain in a developing country. The latter points complement previous research on jatropha, which highlights politico- economic factors such as land tenure, regional and local power relations, and the interests of donors and NGOs. The study exemplifies a non- evolutionary niche development that goes beyond the European experiences of industrial niche development on which the MLP framework was first established. The importance of investors and policy at different levels of the value chain illustrate the synergies in combining the MLP and GVC frameworks in research on energy transitions in developing countries.

Using the ecosystem service approach to determine whether jatropha projects were located in marginal lands in Ghana: Implications for site selection

The concept of marginal land is often used to justify land availability and inform land allocation for biofuel projects. However, marginal lands can provide other valuable ecosystem services. Using interviews with multiple stakeholders and fieldwork in three collapsed biofuel projects in Ghana, this paper shares perspectives on how the ecosystem service approach (ESA) can offer a better basis for selecting land for biofuel projects. Expert interviews with key stakeholders (e.g. Lands Commission) in biofuel value chains in Ghana highlight the lack of consensus of what constitutes marginal land, with two dominant interpretations coming up; (i) land unsuitable for food production and (ii) land unsuitable for cost-effective agricultural production. Both interpretations however do not reflect the ecosystem services lands provide, as well as the significant cultural values attached to them. Our empirical work shows that many ecosystem services are obtained from the supposedly marginal lands that are neglected from both interpretations, as well as the standard project planning and Environmental Impact Assessment (EIA) processes. We make the case that when compared to the current marginal land narrative, the ESA offers a better lens for understanding local land uses, in managing emerging tradeoffs and providing information for locating biofuel projects. Our findings suggest that expanding the scope of EIAs by integrating elements of the ESA can go a long way towards informing site selection for biofuel investments.

Biofuels in an Age of Cheap Oil: Community Capitals and Motivations to Participate in Biodiesel Value Chains

In this article we analyze the community capital implications of an emerging canola biofuel value chain within wheat-producing regions of the United States as radical changes are taking place in energy markets and prices drop. We analyze the intersections of the motivations that encourage and sustain value chain participation and stocks and investments of community capitals. We use the Community Capitals Framework (Flora et al. 2016) to analyze the ways that new biofuel value chains affect various types of capital within rural communities, and to understand the context, processes, and impacts of decision-making within the biofuel value chain. Interviews and focus groups with actors along the value chain including farmers, processors, transporters, plant breeders, extension professionals, and farm service suppliers identify motivational factors and how community resources affect participation decisions.

A techno-economic comparison of Fischer–Tropsch and fast pyrolysis as ways of utilizing sugar cane bagasse in transportation fuels production.

Due to limited biomass availability, the establishment of optimal route biofuel value chains (one conversion route for each feedstock) is a key prerequisite for a feasible bioenergy sector. This way, biorefineries can take advantage of the economies of scale and increase their economic potential. Therefore, techno-economic comparison between similar conversion processes for the utilisation of individual feedstocks is essential. To this effect, the present study focuses on the feasibility of two biomass to liquids (BtL) thermochemical conversion routes for the production of hydrocarbon fuels. Aspen plus software was employed to investigate a gasification followed by Fischer–Tropsch synthesis route (G-FT) and fast pyrolysis followed by hydroprocessing (FP-H) by developing process flowsheets and solving the associated mass, and energy balances. Based on the simulations, thermodynamic (energy/exergy analysis) and economic (financial and risk analysis) evaluations were carried out. Sensitivity analyses have been performed in order to define the key parameters of each conversion route. Sugar cane bagasse, the waste solid residue of the sugar cane milling process, was considered as feedstock at a flowrate of 100t/h. Based on the outcomes of the evaluations, the two alternatives were compared and it was concluded that, both energetically and financially, G-FT synthesis is the more efficient option.

Regulating a global value chain with the European Union's sustainability criteria – experiences from the Swedish liquid transport biofuel sector

Despite promises that they can contribute toward more environmentally beneficial transportation there are many sustainability concerns about liquid transport biofuels. In response to pressure from civil society, the European Union (EU) has introduced sustainability criteria for biofuels. A hybrid regulatory system involving state and non-state actors stipulates that retailers and producers must comply to be eligible for fiscal support such as tax exemptions. Flexibility in the system allows choice between different means of compliance, including a range of voluntary schemes. We present an analysis of views within the Swedish liquid transport biofuel sector in 2012 – a year after the introduction of EU sustainability criteria. Using document analysis, official statistics, and a survey, we use four key structures of global value chains — input–output structure, territorial configuration, institutional framework, and firm-level chain governance structure — to structure an analysis of biofuel value chain coordination. This yields three main findings regarding how the Swedish liquid transport biofuel system operates within, and views, the new regulatory framework. Firstly that it uses a broad portfolio of feedstock mainly from within Europe, seemingly avoiding countries where any supply conditions may be in doubt; second, larger retailers and producers achieve compliance without the need to provide additional social sustainability information; third, that actors exhibit predominantly Eurocentric perspectives on sustainability, express confidence that their supply chains have strong ‘sustainability performance’ and desire long-term policy stability. We conclude that despite a deep critique of the sustainability of biofuels amongst civil society and academia, EU regulation allows for production systems that reflect a European- and climate change mitigation-centred view on biofuel ‘sustainability’.

Biofuels for a Greener Economy? Insights from Jatropha Production in Northeastern Ethiopia

Many observers view Jatropha as a miracle plant that grows in harsh environments, halts land degradation and provides seeds for fuel production. This makes it particularly attractive for use in Ethiopia, where poverty levels are high and the degradation of agricultural land is widespread. In this article, we investigate the potentials and limitations of a government-initiated Jatropha project for smallholders in northeastern Ethiopia from a green economy perspective. Data are based on a 2009 household survey and interviews with key informants, as well as on a 2012 follow-up round of interviews with key informants. We conclude that the project has not contributed to a greener economy so far, but has the potential to do so in the future. To maximize Jatropha’s potential, interventions must focus mainly on smallholders and pay more attention to the entire biofuel value chain.

The Evolutionary Dynamics of Biofuel Value Chains: From Unipolar and Government-Driven to Multipolar Governance

In this paper I propose to push the frontier of global value chain (GVC) governance analysis through the concept of ‘polarity’. Much of the existing GVC literature has focused on ‘unipolar’ value chains, where one group of ‘lead firms’ inhabiting a specific function in a chain plays a dominant role in governing it. Some scholars have explored the dynamics of governance in GVCs characterized as ‘bipolar’, where two sets of actors in different functional positions both drive the chain. I expand this direction further to suggest conceptualizing governance within a continuum between unipolarity and multipolarity Empirically, I do so by examining the evolutionary dynamics of governance in biofuel value chains, with specific focus on the key regulatory and institutional features that facilitated their emergence and expansion. First, I examine the formation, evolution, and governance of three national/regional value chains (in Brazil, the US, and the EU); then, I provide evidence to support a trend towards the increasing but still partial formation of a global biofuel value chain and examine its governance traits.

Biomass-to-bioenergy and biofuel supply chain optimization: Overview, key issues and challenges

This article describes the key challenges and opportunities in modeling and optimization of biomass-to-bioenergy supply chains. It reviews the major energy pathways from terrestrial and aquatic biomass to bioenergy/biofuel products as well as power and heat with an emphasis on “drop-in” liquid hydrocarbon fuels. Key components of the bioenergy supply chains are then presented, along with a comprehensive overview and classification of the existing contributions on biofuel/bioenergy supply chain optimization. This paper identifies fertile avenues for future research that focuses on multi-scale modeling and optimization, which allows the integration across spatial scales from unit operations to biorefinery processes and to biofuel value chains, as well as across temporal scales from operational level to strategic level. Perspectives on future biofuel supply chains that integrate with petroleum refinery supply chains and/or carbon capture and sequestration systems are presented. Issues on modeling of sustainability and the treatment of uncertainties in bioenergy supply chain optimization are also discussed.