Bioethanol in Israel:Global context, Research, Planning and Policy

Ofira Ayalon, Efrat Elimelech -S. Neaman Institute, TechnionMiriam Lev-On, Perry Lev-On -The LEVON Group, LLC, California, USA

Jonathan Spenser-TerraVerde AgricultureHaim Zaban-Zenovar Consultants Ltd

1

Energy Forum at SNI

- Initiated in 2006 and led by Prof. Gershon Grossman andcoordinated by Dr. Ofira Ayalon.

- Created a professional platform for discussions related to thefield of energy in Israel.

- A report is published after each forum meeting,summarizing the highlights of the proceedings.

- Each report provides relevant information regarding activitiesin Israel and abroad, with operational conclusions.

- The reports are designated for decision makers and anyother public organizations, with the aim of raising nationalawareness of the potential contribution of these issues to theIsraeli energy market.

Energy Forum Meetings To-Date

1. Electricity from Photovoltaic Systems

2. Combined Heat and Power (Cogeneration) Systems

3. Waste to Energy (WTE)

4. Solar energy for the production of heat

5. Renewable energy R&D needs

6. Efficiency and Energy Savings in Air Conditioning Systems

7. Biofuels for energy

8. Demand Side Management

9. The role of Israel in the global bioethanol market

10. Environmental and health impact of natural gas use in Israel

11. Energy balanced building

12. Energy in the water sector

13. Solar thermal power stations in Israel

/Neaman/il.org.neamanhttp://www.National Planning, Environment and Infrastructure

Biofuels as an Energy Resource

Significance• Decrease the dependence on oil• Increase the world's security in several aspects:

environmental, economic and geo-political.• The Biofuels market is developing rapidly and has a

potential to reach over $100 Billion a year• Creating major economic opportunities that should induce

intensive R&D activities.Bioethanol Considerations• Today’s automobile engines can only operate with ethanol

mixtures up to 10%.• New Flexible-fuel vehicles will be be able to utilize both

gasoline and ethanol fuels of any concentration .

Terminology

• 1st generation: Traditional process in which alcohol and oilare extracted from edible feedstock: corn, sugar cane, canola.

• 1.5 generation: Traditional process. Non-edible feedstock,such as: castor and Jetropha.That feedstock competes with the food market by consumingwater and land.

• 2nd generation: Ethanol derived from non-food cellulosicfeedstock (agricultural biomass and residues) inthermochemical or enzymatic process

• 2.5 generation: Extracting biofules from algae and waterplants using advanced processes.

• 3rd generation: Future technologies, such as: hydrogen,butanol etc.

Investing in cleantech

• 2005- US $ 820 billion

• 2006- US $ 2,350 billion

• 2007- US $ 3,478 billion

• 2008- US $ 7,584 billion

Source: Greentech Media

Cleantech VC investments, 2008(millions)

1 billion US$ in 2008 !1 billion US$ in 2008 !

Biofuelsfuels for Energy ProductionSNI Energy Forum, Oct. 2007

Participants were divided into three workgroups:(1) Field Crops,(2) Water Crops, and(3) Production Processes

Main recommendations:(1) Mapping(2) Consortium(3) R&D cooperations

Bioethanolethanol in IsraelSupported by the GM foundation

• Examines global trends in the bioethanolmarket

• Reviews the potential advantages and theanticipated shortcomings of Israel adopting anational bioethanol strategy and the planningit would require.

• Evaluates whether bioethanol could beused to partially replace fossil fuels

• Assesses bioethanol in the context of nearterm pollution mitigation strategies whencompared to other policy options.

Report Conclusions –Global Context

• New policies ought to focus on biofuels feedstocksthat do not require the use of productive land orscarce water resources

• Policies ought to incentivize the use of feedstocksbased on cellulosic waste products in order tomaximize the advantage of “second generation”biofuels.

• Policies should incentivize – and expeditepermitting –biofuels production processes that arebased on combined heat and power generationfrom the biomass residual of the feedstock

Report Conclusions –Global Context (cont’d)

• Policies should be based on “SustainabilityPrinciples” that will encourage R&D,demonstration, reward investments leading topositive impacts of biofuels production and use

Report Conclusions –Israeli Context

• Biofuels classified either as 1st or 1.5th generationare not relevant to Israel (not enough water, notenough land)

• Immediate Bioethanol production in Israel isrelevant only if it serves a deliberate, short-term,energy security policy objective

Main ConclusionsAgricultural Products and Waste

• The vast majority of starch is imported toIsrael

• Agricultural land and available water areutilized mainly for wheat inventory, fodderfor animal feed and edible grains

• Possible bioethanol mandates will have torely on imported feedstock or importedfinished ethanol or bioethanol

Cellulosic Feedstock in Israel

RemarksExpected available

cellulose('000 MT/year)

Retrievable(%)

Potentialamount

('000 MT/year)Origin

Agriculture

Utilized150Wheat hay

Utilized412Forage

Unutilized3030%100Agricultural by -products

Forest and Municipal Pruning

Unutilized5040%125Wood and branchesfrom forests

Unutilized10020%500Municipal prunings

1801,287Grand Total

Cellulosic Feedstock in Israel

• 880,000 T of cellulosic feedstock originatingfrom agricultural by-products, forest andgarden waste (180,000 T) and municipal solidwaste (700,000 T) could be made available forbioethanol production.

• The majority (75%) of this amount willoriginate from MSW and a quarter from forestand municipal pruning

Main Barriers

• Israel could supply almost 10% of its projectedgasoline demand by utilizing agricultural andmunicipal wastes as feedstock for bioethanolproduction, provided energy efficient processes areutilized including full utilization of process residualfor combined heat and power production.

• Lack of efficient and economical technology is abarrier for solving both energy and waste problems.

Main Barriers – R&D

• Israel should focus on R&D and demonstration ofadvanced agricultural technologies and biotechnologyincluding a multi-faceted R&D effort of usingcellulosic by-products from agricultural operationsand municipal waste as feedstock for bioethanol

• Lack of focus

• Lack of financing

• Lack of cooperation

Sustainable Biofuels

means to reduce private transport. environmental impact

Thank you!

Qs?