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Narration: This presentation will introduce you to biofuels and their relationship to forestry. You will also learn about the implications for investments in the forestry sector.

This presentation will introduce you to biofuels and their relationship to forestry. You will also learn about the implications for investments in the forestry sector.

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Narration: The presentation is divided into five sections.

The first section of this presentation covers the terminology and typology of biofuels; it will then describe some examples of tree-based biofuels. Next, you will learn about markets and market trends for biofuels and their interaction with global commodity markets. Finally, you will learn about biofuel policies in some countries.

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Narration: Biofuels can be broadly defined as solid, liquid, or gas fuel consisting of, or derived from, recently dead biological material, most commonly plants. This distinguishes it from fossil fuel, which is derived from long dead biological material.

Biofuel can be broadly defined as solid, liquid, or gas fuel consisting of, or derived from, recently dead biological material, most commonly plants. This distinguishes it from fossil fuel, which is derived from long dead biological material.

Source: www.wikipedia.com

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Narration: There are three main types of biofuels. First-generation fuels are biofuels made from sugar, starch, vegetable oil, or animal fats using conventional technology. Second generation biofuels are made from a variety of non-food crops, including waste biomass, the stalks of wheat, corn, wood, and special-energy or biomass crops using biomass-to-liquid technology. Third generation biofuels are made from algae. They are also called oilgae.

There are three main types of biofuels. First-generation fuels are biofuels made from sugar, starch, vegetable oil, or animal fats using conventional technology. Second generation biofuelsare made from a variety of non-food crops, including waste biomass, the stalks of wheat, corn, wood, and special-energy or biomass crops (for example miscanthus) using biomass-to-liquid technology. Many second generation biofuels are under development such as biohydrogen, biomethanol, DMF, Bio-DME, Fischer-Tropsch diesel, biohydrogen diesel, mixed alcohols and wood diesel. Third generation biofuels are made from algae, they are also called also known as oilgae.

There are three main types of biofuels. First-generation fuels are biofuels made from sugar, starch, vegetable oil, or animal fats using conventional technology. Second generation biofuelsare made from a variety of non-food crops, including waste biomass, the stalks of wheat, corn, wood, and special-energy or biomass crops (for example miscanthus) using biomass-to-liquid technology. Many second generation biofuels are under development such as biohydrogen, biomethanol, DMF, Bio-DME, Fischer-Tropsch diesel, biohydrogen diesel, mixed alcohols and wood diesel. Third generation biofuels are made from algae, they are also called also known as oilgae.

Source: www.wikipedia.com

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Narration: Biodiesel is the most common biofuel used in Europe. It is produced from oils or fats using transesterification and is a liquid similar in composition to petro-diesel. Oils commonly used include animal fats, vegetable oils, soy, rapeseed, jatropha, mahua, mustard, flax, sunflower, palm oil, hemp, field pennycress, pongamia pinnata and algae. Its chemical name is fatty acid methyl (or ethyl) ester (FAME). Oils are mixed with sodium hydroxide and methanol (or ethanol) and the chemical reaction produces biodiesel (FAME) and glycerol. One part glycerol is produced for every 10 parts of biodiesel.

The next few slides will describe the most common first generation biofuels: biodiesel, bioalcohol and biogas. Biodiesel is the most common biofuel used in Europe. It is produced from oils or fats using transesterification and is a liquid similar in composition to petro-diesel. Oils commonly used include animal fats, vegetable oils, soy, rapeseed, jatropha, mahua, mustard, flax, sunflower, palm oil, hemp, field pennycress, pongamia pinnata and algae. Its chemical name is fatty acid methyl (or ethyl) ester (FAME). Oils are mixed with sodium hydroxide and methanol (or ethanol) and the chemical reaction produces biodiesel (FAME) and glycerol. One part glycerol is produced for every 10 parts of biodiesel.

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Narration: Biologically produced alcohols, most commonly ethanol, and less commonly propanoland butanol, are produced by the action of micro-organisms and enzymes through the fermentation of sugars, starches or cellulose. Alcohol fuels are produced by fermentation of sugars derived from wheat, corn, sugar beets, sugar cane, molasses and any sugar or starch that alcoholic beverages can be made from, such as potatoes and fruit waste. Cellulosic ethanol production uses non-food crops or inedible waste products, which has less of an impact on food supply. One such product is lignocellulose, which is the woody structural material of plants. This feedstock is abundant and diverse, and in some cases - as with citrus peels or sawdust - the products have disposal problems.

Biologically produced alcohols, most commonly ethanol, and less commonly propanol and butanol, are produced by the action of micro-organisms and enzymes through the fermentation of sugars, starches (the easiest method), or cellulose. Alcohol fuels are produced by fermentation of sugars derived from wheat, corn, sugar beets, sugar cane, molasses and any sugar or starch that alcoholic beverages can be made from, such as potatoes and fruit waste. Cellulosic ethanol production uses non-food crops or inedible waste products, which has less of an impact on food supply. One such product is lignocellulose, which is the woody structural material of plants. This feedstock is abundant and diverse, and in some cases - as with citrus peels or sawdust - the products have disposal problems.

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Narration: Biogas is produced by the process of anaerobic digestion of organic material by anaerobes. It can be produced either from biodegradable waste materials or by the use of energy crops fed into anaerobic digesters to supplement gas yields. The solid by-product, digestate, can be used as fuel or fertiliser. Biogas contains methane and can be recovered from industrial anaerobic digesters and mechanical biological treatment systems. Landfill gas is a less clean form of biogas which is produced in landfills through naturally occurring anaerobic digestion. If landfill biogas escapes into the atmosphere it is a potent greenhouse gas. Many different crops can be used to produce biogas. Some of the most frequently used include maize, Sudan grass, millet, and white sweet clover.

Biogas is produced by the process of anaerobic digestion of organic material by anaerobes. It can be produced either from biodegradable waste materials or by the use of energy crops fed into anaerobic digesters to supplement gas yields. The solid by-product, digestate, can be used as fuel or fertiliser. Biogas contains methane and can be recovered from industrial anaerobic digesters and mechanical biological treatment systems. Landfill gas is a less clean form of biogas which is produced in landfills through naturally occurring anaerobic digestion. If landfill biogas escapes into the atmosphere it is a potent greenhouse gas. Many different crops can be used to produce biogas. Some of the most frequently used include: maize, Sudan grass, millet and white sweet clover.

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Narration: This diagram shows the various types of bioenergy and how they are related. The three main uses are biofuels for transportation, electricity , and heating. The feestoscks include vegetable oils, sugar and starch, wood-based or ligno-cellulosic materials, and biomass. Feestocks derived from forestry activities include trees and shrubs in forests and wood recovered from previous years.

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Narration: This table shows some indicative yields of fuels produced from different crops. Sugar beets grown in France have the highest yields of ethanol at 714 gallons per acre, with wheat at the lower end at 277 gallons per acre. For biodiesel, oil palm has the highest yield, of 508 gallons per acre. Soybean has the lowest yield at around 50 gallons per acre. However, these numbers could vary widely depending on how the crops are cultivated.

This table shows some indicative yields of fuels produced from different crops. Sugar beets grown in France have the highest yields of ethanol at 714 gallons per acre, with wheat at the lower end at 277 gallons per acre. For biodiesel, oil palm have the highest yield, of 508 gallons per acre. Soybean has the lowest yield at around 50 gallons per acre. However, these numbers could vary widely depending on how the crops are cultivated.

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Narration: Palm oil is a very productive crop with the highest production per hectare of any biodiesel feedstock at 5,000 litres per hectare. It is an edible oil with huge international market. Palm oil is best suited for production in humid tropics and there is considerable concern about the conversion of tropical forests, especially peat forests, into palm oil plantations. One major user of palm oil, Unilever, just announced that it will only source palm oil that is certified as sustainable from the year 2010.

Palm oil is a very productive crop with the highest production per hectare of any biodiesel feedstock at 5,000 litres per hectare. It also has a high melting point requiring more processing and has a low blending rate. It is an edible oil with huge international market. Palm oil is best suited for production in humid tropics and there is considerable concern about the conversion of tropical forests, especially peat forests, into palm oil plantations. The Roundtable on Sustainable Palm Oil was created to develop industry standards and certification systems to reduce the negative image of palm oil. One major user of palm oil, Unilever, just announced that it will only source palm oil that is certified as sustainable from the year 2010.

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Narration: Jatropha oil is produced from the seeds of the Jatropha curcas, a plant that produces a non-edible oil and can be grown drier areas and with fewer external inputs than some other sources of biodiesel. Jatropha is the oil of choice for biodiesel production in India and is currently being heavily promoted around the world. It is possible to get relatively high oil production from jatropha, but this varies with the use of irrigation and high levels of fertiliser. Jatropha is only competitive with other crops in situations where there are high international oil prices coupled with lower food prices.

Jatropha is another example of a tree-based biofuel source. It produces a non-edible oil and can be grown drier areas and with fewer external inputs than some other sources of biodiesel. Jatropha is the oil of choice for biodiesel production in India and is currently being heavily promoted around the world. It is possible to get relatively high oil production from jatropha, but this varies with the use of irrigation and high levels of fertiliser. An economic analysis for Kenya suggests that Jatropha is only competitive with other crops in situations where there are high international oil prices coupled with lower food prices, as was the case in 2008.

Narration: Two other common crops that are alternatives to jatropha are neem and pongamia. These next two slides will discuss some of the pros and cons of these species. The pros and cons of any biofuel crop will vary depending on where geographically the crops will be planted. What is best for wet saline soils in India would not be the same as for arid wastelands in Africa. Any of these crops run the risk of pushing people off wastelands as they are suitable for poor quality land. The neem tree is already widely cultivated and harvested. It is a multiple use species and all parts of the tree are harvested for uses ranging from fuelwood to medicines. Neem is very drought tolerant. However, it is a highly invasive species and there is currently no technology for harvesting the seeds. In some cases this may not be a negative as it will reduce its attractiveness as a crop in labour-expensive countries, thereby providing work in countries where labour is inexpensive. However, the seeds deteriorate rapidly once they have fallen from the trees. Because the seeds are collected in the wet season, local storage facilities are required.

Two other common crops that are alternatives to Jatropha are neem and pongamia. These next two slides will discuss some of the pros and cons of these species relative to Jatropa. The pros and cons of any biofuel crop will vary depending on where geographically the crops will be planted. What is best for wet saline soils in India would not be the same as for arid wastelands in Africa. In addition, any of these crops run the risk of pushing people off of wastelands as they are suitable for poor quality land. The neem tree is already widely cultivated and harvested. Although it is native to India, Myanmar, Bangladesh, Sri Lanka and Pakistan, it is found and used throughout the tropics and sub-tropics. It is a multiple use species and all parts of the tree are harvested for uses ranging from fuelwood to medicines. Neem is very drought tolerant. However, It is a highly invasive species and there is currently no technology for harvesting the seeds. In some cases this may not be a negative as it will reduce its attractiveness as a crop in labour-expensive countries, thereby providing work in countries where labour is inexpensive. However, the seeds deteriorate rapidly once they have fallen from the trees. Because the seeds are collected in the wet season, local storage facilities are required.

Narration: Pongamia is considered one of the least invasive biofuel options. It is native to a range of countries including India, Sri Lanka, Indonesia, China, and northern Australia. At the same time, it is still easily cultivated and it is considered unsuitable for cultivation near sensitive areas such national parks. Mechanical processing is possible. Pongamia grows well in poor soils with no fertiliser requirements and produces on average more oil that jatropha per hectare at 2,100 litres per hectare compared to 1,300 litres per hectare. However, while pongamia is drought tolerant, it may not do well in extremely dry climates.

Pongamia is considered one of the least invasive biofuel options. It is native to a range of countries including India, Sri Lanka, Indonesia, China, and northern Australia. At the same time, it is still easily cultivated and it is considered unsuitable for cultivation near sensitive areas such national parks. Mechanical processing is similar to that used for macadamia nuts. Pongamiagrows well in poor soils with no fertiliser requirements and produces on average more oil that jatropha per hectare at 2,100 litres per hectare compared to 1,300 litres per hectare. However, while pongamia is drought tolerant, it may not do well in extremely dry climates.

Sources:

http://www.nature.com/news/2007/071010/full/449652a.html

http://www.invasives.org.au/biofuels.html

http://www.cilr.uq.edu.au/pages.aspx?id=132

http://www.biofuelgenomics.com/biofuel_species.html

http://www.wikipedia.org/

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Narration: As you see in this slide, world ethanol production has been steadily increasing. The top 10 ethanol producers are listed here, starting with the number one producer, the United States.

World ethanol production has been steadily increasing, as shown in this slide. The top 10 ethanol producers in 2005 are listed here, which are, starting with the number one producer, the United States, followed by:

Brazil

China

India

France

Russia

South Africa

Spain

Germany

Thailand

Source: http://www.earth-policy.org/Updates/2006/Update55_data.htm#fig1.

Compiled by Earth Policy Institute from F.O. Licht data, cited in Suzanne Hunt and Peter Stair, "Biofuels Hit a Gusher," Vital Signs 2006-2007 (Washington, DC: Worldwatch Institute, 2006), pp. 40-41, and from F.O. Licht, "Ethanol: World Production, by Country," table, World Ethanol and Biofuels Report, vol. 4, no. 17 (9 May 2006), p. 395.

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Narration: Biodiesel production is also increasing. This slide shows the top 10 producers, starting with the number one producer, Germany.

Biodiesel production is also increasing. This slide shows the top 10 producers, starting with the number one producer, Germany, followed by:

France

United States

Italy

Czech Republic

Spain

Denmark

Poland

United Kingdom

Brazil

Source: http://www.earth-policy.org/Updates/2006/Update55_data.htm#fig1.Compiled by Earth Policy Institute from F.O. Licht data, cited in Suzanne Hunt and Peter Stair, "Biofuels Hit a Gusher," Vital Signs 2006-2007 (Washington, DC: Worldwatch Institute, 2006), pp. 40-41, and from F.O. Licht, "Ethanol: World Production, by Country," table, World Ethanol and Biofuels Report, vol. 4, no. 17 (9 May 2006), p. 395.

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Narration: Here are some examples of prices per litre for various fuels. Fossil fuel petrol and diesel, as of 2005, were still the least expensive fuel at 47-euro cents and 52-euro cents a litre. Biodiesel was the most expensive, at 74-euro cents a litre.

Here are some examples of prices per litre for various fuels. Fossil fuel petrol and diesel, as of 2005, were still the least expensive fuel at 47-euro cents and 52-euro cents a litre. Biodiesel was the most expensive, at 74-euro cents a litre.

Sources: MWV 2005, Eubia 2005

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Narration: The relationship between biofuel crops and food production is important and often controversial. In recent years, there has been a surge in both cereal and oil prices, which could be a new trend. In this slide, you can see the price rises for both commodities.

The relationship between biofuel crops and food production is important and often controversial. In recent years, there has been a surge in both cereal and oil prices, which could be a new trend. In this slide, you can see the price rises for both commodities.

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Narration: These pricing trends are influenced by variables in production, demand, trade and markets.

These pricing trends are influenced by variables in production, demand, trade and markets.

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Narration: Production and consumption of biofuels have been booming in recent years, with Brazil and the US leading in ethanol production. The EU is the largest producer and consumer of biodiesel.

Production and consumption of biofuels have been booming in recent years, with Brazil and the USA leading in ethanol production. The EU is the largest producer and consumer of biodiesel.

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Narration: The International Model for Policy Analysis of Agricultural Commodities and Trade -known as IMPACT - is a state-of-the-art model developed by the International Food Policy Research Institute to generate projections on global and regional food supply, demand, trade, and malnutrition. The IMPACT model has predicted the following changes in price by 2020. If expansion proceeds as currently planned, corn prices will increase by 26 per cent; sugar prices will increase by 12 per cent and the price of oilseeds will increase in price by 18 per cent. If this expansion is double what is currently planned, the prices will increase for these same products. The price of corn will increase by 72 per cent; the price of sugar by 27 per cent and the price of oilseeds by 44 per cent.

The International Model for Policy Analysis of Agricultural Commodities and Trade - known as IMPACT - is a state-of-the-art model developed by the International Food Policy Research Institute to generate projections on global and regional food supply, demand, trade, and malnutrition. The IMPACT model has predicted the following changes in price by 2020. If expansion proceeds as currently planned, corn prices will increase by 26 per cent; sugar prices will increase by 12 per cent and the price of oilseeds will increase in price by 18 per cent. If this expansion is double what is currently planned, the prices will increase for these same products. The price of corn will increase by 72 per cent; the price of sugar by 27 per cent and the price of oilseeds by 44 per cent.

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Narration: There is some concern that biofuel development will not actually have carbon benefits for extremely long periods of time. This chart illustrates the carbon debt (emissions) and carbon payback time for a number of different biofuel sources. The best scenario in the group is prairie biomass conversion to ethanol, which will take less than one year to reach carbon neutrality, as opposed to palm biodiesel produced from converted peatland palm plantations, which will take more than 400 years.

Carbon debt and years to repay biofuel carbon debt for nine scenarios of biofuel production. Means and standard deviations are from Monte Carlo analyses of literature-based estimates of carbon pools and fluxes. Upper graph: Carbon debt, including CO2 emissions from soils and aboveground and belowground biomass due to habitat conversion. Lower graph: Number of years after conversion to biofuel production required for cumulative biofuel greenhouse gas reductions, relative to fossil fuels they displace, to repay the biofuel carbon debt (Source: Sheilet al. 2009).

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Narration: The European Union in its Biofuels Directive, (established in 2003 and updated in 2006), has set the goal that by 2010, each Member State should achieve at least 5.75 per cent biofuel usage of all traffic fuel. By 2020 that figure should be 10 per cent.

The European Union in its Biofuels Directive, (established in 2003 and updated in 2006, has set the goal that by 2010, each Member State should achieve at least 5.75 per cent biofuel usage of all traffic fuel. By 2020 each Member State should achieve at least 10 per cent biofuel usage of all traffic fuel.

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Narration: In 2006, then US President George W. Bush said that the US is "addicted to oil“. He called for the replacement of 75 per cent of imported oil by 2025 with alternative sources of energy including biofuels. Since then, the US has introduced legislation to help achieve this. This is causing a significant agricultural resource shift away from food production to biofuels. American food exports have decreased, leading to an increase in grain prices worldwide, and US food imports have increased significantly.

In 2006, former US President George W. Bush said in a State of the Union speech that the US is "addicted to oil" and should replace 75per cent of imported oil by 2025 by alternative sources of energy including biofuels. A senior member of the House Energy and Commerce Committee Congressman Fred Upton has introduced legislation to use at least E10 fuel by 2012 in all cars in the US. The 2007-12-19 U.S. Energy Independence and Security Act of 2007 requires American “fuel producers to use at least 36 billion gallons of biofuel in 2022. This is nearly a fivefold increase over current levels.” This is causing a significant agricultural resource shift away from food production to biofuels. American food exports have decreased (increasing grain prices worldwide), and US food imports have increased significantly.

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Narrative: All of the ethanol fuel in the US is produced from corn. Corn is a very energy intensive crop: it requires one unit of fossil-fuel energy to create just 0.9 to 1.3 energy units of ethanol. Corn exports have remained the same for the last 30 years, whereas the use of corn as fuel ethanol has increased exponentially over the same period of time.

All of the ethanol fuel in the US is produced from corn. Corn is a very energy intensive crop, which requires one unit of fossil-fuel energy to create just 0.9 to 1.3 energy units of ethanol.

Source: http://www.earth-policy.org/Updates/2006/Update55_data.htm#fig1.Compiled by Earth Policy Institute from F.O. Licht data, cited in Suzanne Hunt and Peter Stair, "Biofuels Hit a Gusher," Vital Signs 2006-2007 (Washington, DC: Worldwatch Institute, 2006), pp. 40-41, and from F.O. Licht, "Ethanol: World Production, by Country," table, World Ethanol and Biofuels Report, vol. 4, no. 17 (9 May 2006), p. 395.

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Narration: Brazil’s 30-year-old ethanol fuel programme uses cheap sugar cane, mainly bagasseor cane-waste. This programme produces an approximate blend of 22 per cent ethanol that is used nationwide, plus 100 per cent anhydrous ethanol for four million cars. The Brazilian ethanol programme provided nearly 700,000 jobs in 2003. From 1975 to 2002 the programme cut oil imports by a cumulative undiscounted total of US $50 billion.

Brazil’s 30-year-old ethanol fuel programme uses cheap sugar cane, mainly bagasse or cane-waste, for process heat and power. By using modern equipment this programme produces an approximate blend of 22 per cent ethanol that is used nationwide, plus 100 per cent anhydrous ethanol for four million cars. The Brazilian ethanol programme provided nearly 700,000 jobs in 2003. From 1975 to 2002 the programme cut oil imports by a cumulative undiscounted total of US $50 billion.

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