IPCC scientists call on bioenergy and biofuels to help combat global warming

The Intergovernmental Panel on Climate Change (IPCC) today released the Summary for Policy Makers of its long-awaited Synthesis Report. In it, the IPCC synthesises the conclusions contained in the three previous reports of the Fourth Assessment, namely those that deal with the scientific evidence for climate change, its likely impacts and possible mitigation and adaptation options.

The UN's climate panel states that climate change is 'unequivocal', man made and - this is new - may bring 'abrupt and irreversible' impacts. This means that the window to mitigate and adapt is closing quickly. It also implies that strategies that were specifically designed to deal with the eventuality of 'abrupt climate change' will now have to be implemented.

These strategies draw on carbon-negative bioenergy and biofuels, specially designed for the worst case scenario of abrupt climate change. The IPCC therefor explicitly recognizes the concept of 'bio-energy with carbon storage' (also known as BECS, negative emissions energy or as 'biomass coupled to CCS') as well as techniques aimed at increasing soil carbon storage. Through biochar and terra preta systems, the latter objective can be coupled to the production of carbon-negative biofuels, which effectively store carbon in soils.

The IPCC says that without extra measures, carbon dioxide emissions will continue to rise; they are already growing faster than a decade ago, partly because of increasing use of coal. The IPCC's economic analyses say that trend can be reversed at reasonable cost.

In the section on mitigation, the scientists of the IPCC present key mitigation options per economic sector. The bioeconomy is called on to play a major role in all of the sectors contributing to global warming - from the use of energy crops to replace fossil fuels, over biofuels for transport, to biogas production from manure and to biomass coupled to carbon capture and storage. An overview:

For the energy and transport sector, bioenergy and biofuels are set to play a key role. The IPCC suggests the use of renewable heat and power, from bioenergy, and combined heat and power (CHP) obtained from integrated biomass power plants as key options to replace fossil fuels and to make heating and power generation more efficient. In the transport sector, the use of liquid renewable fuels and second generation biofuels is encouraged. Likewise, hybrids and a gradual move to electric vehicles is proposed, which would blend in well with carbon-negative bioenergy.

Biofuel blending policies and CO2 standards for road transport are seen as policies that have shown to be environmentally effective. Likewise, a reduction of fossil fuel subsidies and taxes or carbon charges on fossil fuels are instruments that can contribute. For renewable power and heat, feed in tariffs, renewable energy obligations and producer subsidies have been shown to work to promote their uptake.

Most importantly, the IPCC scientists finally recognize carbon-negative energy, also known as 'biotic CCS', 'bio-energy with carbon storage' or 'negative emissions energy'. This most radical of emission reduction concepts is based on coupling bioenergy and biofuel systems to carbon capture and storage (CCS). Nuclear power, ordinary biofuels or renewables like wind and solar power are all 'carbon-neutral' at best, that is, they do not add new CO2 to the atmosphere. Carbon-negative bioenergy and biofuels go much further: they take historic emissions out of the atmosphere.

Scientists have been calling for equal opportunities for biotic CCS and negative emissions biofuels. See for example Stefan Grönkvist, Kenneth Möllersten and Kim Pingoud's article: "Equal Opportunity for Biomass in Greenhouse Gas Accounting of CO2 Capture and Storage: A Step Towards More Cost-Effective Climate Change Mitigation Regimes" published recently in Mitigation and Adaptation Strategies for Global Change. The IPCC scientists have finally taken their collegues' call to heart:
energy :: sustainability :: biomass :: bioenergy :: biofuels ::carbon capture and storage :: negative emissions :: bioeconomy :: climate change :: global warming :: IPCC ::

The agriculture, forestry and waste management sectors offer major opportunities for the bioeconomy to help cut back greenhouse gas emissions.

In agriculture, improved crop and grazing practises to enhance soil carbon storage are called on. One of the prime techniques to achieve this is to convert energy crops into biofuels while retaining part of their biomass in the form of biochar which is then sequestered in soils. This is an effective technique not only to add carbon to soils, but to strengthen their capacity to retain organic carbon.

Morever, these carbon-negative biofuels and their biochar component have shown to reduce fertilizer needs for crops, to result in more efficient utilization of fertilizers and to improve the efficiency of water use in agriculture. These two demands - improved efficiency in the use of fertilizers and water - are seen by the IPCC as important instruments to reduce the carbon footprint and inefficiency of agriculture.

Livestock and manure management to reduce methane (CH4) levels too forms an important mitigation strategy, which implies, amongst other things, applications for the production of biogas from manure.

Finally, the IPCC scientists also call for the production of dedicated energy crops to replace fossil fuel use. A lot of work from the scientific community is going into the development of next generation energy crops. And many energy plantations aimed at producing biomass as substitute for fossil fuels are being established.


In the forestry sector, the IPCC again sees the utilization of forestry resources for bioenergy as a key global warming mitigation strategy. It specifically points at the development of tree species with improved carbon storage capacity. The first of these special trees have meanwile been engineered - Eucalyptus (previous post), a prime tropical energy crop, and Dahurian Larch, found in Northeastern Asia and Siberia (more here). When such trees which take more carbon dioxide out of the atmosphere are coupled to carbon-negative bioenergy and biofuel production, a giant leap towards radically negative emissions energy and fuel systems can be obtained (and the era of fourth generation biofuels would be opened.)

Last but not least, the bioeconomy is set to play a key role in the waste management sector. Biogas from landfills is seen as a mitigation option, as is controlled waste water treatment, which allows the use of bioenergy production by means of Microbial Fuel Cells (MFCs) which purify water while generating energy from the waste it contains. Finally, the use of biocovers and biofilters is encouraged to optimise CH4 oxidation.

In the buildings sector, lots of improvements can be made by drawing on bioproducts and bioenergy. The IPCC calls for more efficient heating and cooling systems, which opens a specific role for bioenergy based polygeneration systems. Improved insulation of buildings can be achieved by, amongst other options, a greater reliance on wood in the construction of homes. An example of such a green wood-based building would be Britain's 'most efficient' and cleanest public building, the Dalby Forest visitor centre in North Yorkshire, which is entirely built from wood and heated by biomass (previous post).

Turning to the developing world, improved cooking stoves are seen as key to reduce the contribution of poor households to global warming. Biopact reports regularly on this subject: the replacement of open fires by efficient biogas cooking systems or improved stoves for the use of modern biofuels (such as ethanol gelfuels, biopropane, or biokerosene) could make a direct difference in improving the health of millions of women and children in poor rural households, as well as reducing the unsustainable use of forest and wood resources, and the emissions generated by these primitive forms of energy use.


In the industrial sector, two main suggestions imply a role for the bioeconomy. First and foremost the substitution of carbon-intensive materials by more renewable ones (e.g. biopolymers for the production of plastics, instead of petroleum).

Secondly, and this is a field of growing interest to the bioenergy community, the replacement of fossil fuels by biofuels in the large industrial sectors like the cement, and iron industry. Major initiatives are underway to utilize biomass instead of coal in these sectors, with the added advantage that if their CO2 emissions are captured and sequestered (CCS), negative emissions energy becomes possible once again. For examples of the substitution of coal by biomass in the cement industry, see here and here. For a large EU-funded research project into the use of biomass for the production of green iron and steel, named ULCOS (Ultra Low CO2 Steelmaking), see this previous post.


The IPCC thus sees an important role for the bioeconomy to contribute to a reduction of greenhouse gas emissions, in all economic sectors held responsible for climate change.

The panel's scientists say the reversal to a low carbon economy needs to come within a decade if the worst effects of global warming are to be avoided.

The findings will now feed into the Bali talks on the UN climate convention and the Kyoto Protocol which open on 3 December.


References:
Intergovernmental Panel on Climate Change: Summary for Policymakers of the AR4 Synthesis Report [*.pdf] - November 17, 2007.


The three previous Fourth Assessment Report publications by the IPCC's three working groups are discussed here:
Biopact: IPCC Fourth Assessment Report: climate change 'very likely' caused by humans - [Working Group I], February 02, 2007

Biopact: IPCC Fourth Assessment Report: current and future impacts of climate change on human and natural environments - [Working Group II], April 06, 2007

Biopact: IPCC Fourth Assessment Report: mitigation of climate change - [Working Group III], May 04, 2007


On carbon-negative biofuels and bioenergy, see:
The studies by the Abrupt Climate Change Strategy (ACCS) group.

Peter Read and Jonathan Lermit: "Bio-Energy with Carbon Storage (BECS): a Sequential Decision Approach to the threat of Abrupt Climate Change", Energy, Volume 30, Issue 14, November 2005, Pages 2654-2671.

Noim Uddin and Leonardo Barreto, "Biomass-fired cogeneration systems with CO2 capture and storage", Renewable Energy, Volume 32, Issue 6, May 2007, Pages 1006-1019, doi:10.1016/j.renene.2006.04.009

Stefan Grönkvist, Kenneth Möllersten, Kim Pingoud, "Equal Opportunity for Biomass in Greenhouse Gas Accounting of CO2 Capture and Storage: A Step Towards More Cost-Effective Climate Change Mitigation Regimes", Mitigation and Adaptation Strategies for Global Change, Volume 11, Numbers 5-6 / September, 2006, DOI 10.1007/s11027-006-9034-9

Christian Azar, Kristian Lindgren, Eric Larson and Kenneth Möllersten, "Carbon Capture and Storage From Fossil Fuels and Biomass – Costs and Potential Role in Stabilizing the Atmosphere", Climatic Change, Volume 74, Numbers 1-3 / January, 2006, DOI 10.1007/s10584-005-3484-7

David Tilman, Jason Hill, Clarence Lehman, "Carbon-Negative Biofuels from Low-Input High-Diversity Grassland Biomass", Science, 8 December 2006: Vol. 314. no. 5805, pp. 1598 - 1600, DOI: 10.1126/science.1133306

James S. Rhodesa and David W. Keithb, "Engineering economic analysis of biomass IGCC with carbon capture and storage", Biomass and Bioenergy, Volume 29, Issue 6, December 2005, Pages 440-450.

Further reading:
Biopact: IPCC to warn of 'abrupt' climate change: emergency case for carbon-negative biofuels kicks in - November 16, 2007

Biopact: Carbon-negative bioenergy is here: GreatPoint Energy to build biomass gasification pilot plant with carbon capture and storage - October 25, 2007

Biopact: A quick look at 'fourth generation' biofuels - October 08, 2007

Biopact: Green steel made from tropical biomass - European project - February 08, 2007

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Brazil's CTC releases third generation of sugarcane varieties that yield up to 38 percent more profit

Brazil's universities and scientific organisations are world leaders in researching, developing and breeding sugarcane varieties. It was Brazil that first sequenced the energy crop's genome, and the country plants more of the genus than any other country. It also houses the world's largest library of genetic information on different sugarcane species. Now six new varieties have been developed [*Portuguese] by the Centro de Tecnologia Canavieira (CTC), which yield around 20% more biomass and contain higher levels of saccharose - the disaccharide that ends up as table sugar and ethanol. This results in increased profits per hectare of between 12.5 and 38 percent.

Breeding a sugarcane variety merely for increased biomass productivity does not suffice, says Marcos Casagrande, coordinator of plant breeding at the CTC. What use is a 20 percent increase in biomass when the variety has low levels of saccharose, cannot be harvested mechanically or is susceptible to diseases? To make a new variety worthwile for the production of sugar, bioenergy and ethanol, all of these factors must be targeted and combined in such a way that the new crop improves on all of them. A tall order indeed.

But the CTC delivered when it launched its third generation of sugarcane varieties for producers of different regions in the country's Center-South. The new varieties are called CTC10 through to CTC15, yielding more biomass with a higher saccharose yield.

The CTC's new varieties of the grassy crop are suitable for a specific region of the large country, known for its varied regional climatic conditions, its different soils and its different planting and harvesting seasons. The key to increased productivity is to develop varieties with the precise genetic material to match best with a specific region, and to plant them in the correct place. If this condition is not met, basic actions like correct fertilisation and cutting the cane at the optimal moment of maturation are in vain.

But what matters most, says Tadeu Andrade, director of Research & Development at the CTC, is the question as to whether a new variety will net more profits. And indeed, CTC 10 to CTC 15, bring in considerable more profits because the 'liquid margin' (margem líquida de contribuição) is much higher than current varieties.

According to Rubens Braga Júnio, statistician at the CTC, the 'liquid margin' represents the net profits generated by a given amount of sugar-rich juice harvested per hectare that can be processed into finished products like ethanol or sugar, after all costs for farm inputs (preparation, plantation, treatment, harvest and transport of the cane to the processing plant) and processing inputs have been subtracted. The liquid margin is averaged over a five-year period, the ideal life-cycle of sugarcane, which is a semi-perennial.

For CTC10 to CTC15 the liquid margin is between 12.5 to 37.85 percent higher than the conventional RB and SP varities that were developed by Brazilian universities and the Institute Agronômico de Campinas (IAC), which cover half of the sugarcane planted in the country:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: sugar :: genetics :: plant breeding :: sugarcane :: Brazil ::

An example, CTC11 yields an average of 8.43 percent more biomass per hectare compared to existing varieties, but the liquid margin is R$539 (€210/$308) or 37.85 percent higher than the average. This is due because of a better performance on all parameters that count in sugar and ethanol production: higher saccharose content, better harvesteability and processing and improved tolerance to diseases, reducing the risk of losing harvests - a factor against which producers hedge, which costs money.

For the CTC, the success can be measured by the growing number of distributers and producers that join its program and offer its new varieties to planters. In 2004 the Center had 73 associates. Today the number has reached 163, which results in the CTC's sugarcane plants covering 54.4 percent of the total harvested in Brazil.


The Centro de Tecnologia Canavieira is the leading sugarcane research institute in Brazil, developing new varieties with improved processing efficiency and yield. It is further involved in phytosanitary research, biotechnology, agronomy, agricultural and industrial mechanisation as well as sugar, bioenergy and biofuel production itself.

The CTC is a non-profit whose aim is to disseminate knowledge, best practises and inputs to the sugarcane sector in Brazil.

References:
EthanolBrasil: Novas variedades de cana rendem 38% mais - November 8, 2007.

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IPCC to warn of 'abrupt' climate change: emergency case for carbon-negative biofuels kicks in

In a very important development, the Intergovernmental Panel on Climate Change (IPCC), which is finalising its landmark synthesis report on global warming, is set to warn of the threat of 'abrupt' climate change. The wording by the UN's climate advisory panel is highly significant because it implies that radical strategies to mitigate the worst effects of these 'abrupt' shifts must now kick in.

These emergency strategies, developed specifically for the grim scenario of 'Abrupt Climate Change' (ACC) consist of systems based on carbon-negative bioenergy. The Abrupt Climate Change Strategy Group (ACCS), whose mandate is to study ACC and its mitigation, writes that this concept, also known as 'bioenery with carbon storage' (BECS), is one of the few cost-effective and safe geo-engineering options that can be implemented at once and globally. If applied widely, BECS systems can radically reduce greenhouse gas emissions and bring back atmospheric CO2 levels by mid-century.

The ACCS was launched in the wake of the G8's Gleneagles Summit in 2005, to study strategies to cope with "abrupt" forms of global warming. The IPCC's new wording gives credence to the ACCS concepts. This is what ACCS scientists said in one of their papers:

Abrupt Climate Change (ACC - NAS, 2001) is an issue that ‘haunts the climate change problem’ (IPCC, 2001) but has been neglected by policy makers up to now, maybe for want of practicable measures for effective response, save for risky geo-engineering. A portfolio of Bio-Energy with Carbon Storage (BECS) technologies, yielding negative emissions energy, may be seen as benign, low risk, geo-engineering that is the key to being prepared for ACC.

Under strong assumptions appropriate to imminent ACC, pre-industrial CO2 levels can be restored by mid-century using BECS. - Peter Read and Jonathan Lermit

So how do carbon negative bio-energy and biofuels work? They are easy to understand. Bioenergy and biofuels production is coupled to soil sequestration of biochar or to geosequestration of carbon dioxide. As biomass grows, it takes up CO2 from the atmosphere, as a carbon capturing machine. When this biomass is then used to replace fossil fuels, and burned in power plants or transformed into liquid fuels, and at the same time the carbon contained in it is captured and stored underground (either in geological formations or in agricultural soils), the net result is negative emissions.

Ordinary biofuels, nuclear power or renewables like solar or wind can never become carbon-negative and do not suffice to tackle 'abrupt climate change'. They are 'carbon-neutral' at best. Negative emissions are only achieveable with biomass coupled to carbon capture and storage (schematic, click to enlarge). By now, Biopact readers are familiar with the concept.

The fact that the IPCC has uttered the most dreadful words imaginable in the context of global warming, namely 'abrupt climate change', means carbon-negative bioenergy now has implicit backing from the leading authority on global warming. Biopact is developing a leaflet introducing BECS to wider audiences who are still not familiar with the concept. It will be available before the end of the month. The case for BECS has finally arrived.

Meanwhile, check out the following introductory scientific sources to learn more about the concept:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: carbon-negative :: bio-energy with carbon storage :: negative emissions :: global warming :: abrupt climate change :: IPCC ::

• Peter Read and Jonathan Lermit: Bio-Energy with Carbon Storage (BECS): a Sequential Decision Approach to the threat of Abrupt Climate Change, Energy, Volume 30, Issue 14, November 2005, Pages 2654-2671.
• Stefan Grönkvist, Kenneth Möllersten, Kim Pingoud, "Equal Opportunity for Biomass in Greenhouse Gas Accounting of CO2 Capture and Storage: A Step Towards More Cost-Effective Climate Change Mitigation Regimes", Mitigation and Adaptation Strategies for Global Change, Volume 11, Numbers 5-6 / September, 2006, DOI 10.1007/s11027-006-9034-9
• Noim Uddin1 and Leonardo Barreto, "Biomass-fired cogeneration systems with CO2 capture and storage", Renewable Energy, Volume 32, Issue 6, May 2007, Pages 1006-1019, doi:10.1016/j.renene.2006.04.009
• Christian Azar, Kristian Lindgren, Eric Larson and Kenneth Möllersten, "Carbon Capture and Storage From Fossil Fuels and Biomass – Costs and Potential Role in Stabilizing the Atmosphere", Climatic Change, Volume 74, Numbers 1-3 / January, 2006, DOI 10.1007/s10584-005-3484-7
• David Tilman, Jason Hill, Clarence Lehman, "Carbon-Negative Biofuels from Low-Input High-Diversity Grassland Biomass", Science, 8 December 2006: Vol. 314. no. 5805, pp. 1598 - 1600, DOI: 10.1126/science.1133306
• James S. Rhodesa and David W. Keithb, "Engineering economic analysis of biomass IGCC with carbon capture and storage", Biomass and Bioenergy, Volume 29, Issue 6, December 2005, Pages 440-450.

And the introductions at the Abrupt Climate Change Strategy Group.

Further references:
Biopact: Carbon-negative bioenergy is here: GreatPoint Energy to build biomass gasification pilot plant with carbon capture and storage - October 25, 2007

Biopact: A quick look at 'fourth generation' biofuels - October 08, 2007

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Zimbabwe opens first biodiesel plant to ease catastrophic fuel shortages in farm sector

High oil prices are disastrous for poor, oil importing agrarian countries, because they limit the production and marketing of food and drive up prices of all other products and services. Zimbabwe's president Robert Mugabe therefor commissioned the first biodiesel production plant in the oil-starved country, vowing that because of biofuels, Zimbabwe would "never collapse." The biodiesel plant's output is primarily intended to ease dramatic fuel shortages in the farming sector. Agriculture is an energy intensive economic sector and thus the project makes sense. In a country like Zimbabwe, biofuel production boosts food production instead of limiting it.

The country's dependency on imported fuels is a major constraint to virtually all economic activities, particularly the agrarian reform programme as the Zimbabwean government drives a rural modernisation programme whose success hinges on fuel availability. The biodiesel project is a culmination of years of research. In 2004, the Reserve Bank of Zimbabwe commissioned a biodiesel project at the Harare Polytechnic under which it procured a test vehicle, bio-reactor chemicals and other logistical support facilities, culminating in the "convincing" certification that biodiesel was a feasible option for Zimbabwe (previous post). The project will not just benefit the fuel sector, but is expected to have a positive impact on the rest of the economy as well through the creation of synergies.

Besides reducing fuel costs for farmers, Zimbabwe's peasants are set to benefit in a second way as a new and ready market for oil seeds emerges. Industry in general and the motoring public are also expected to operate better after the launch. The plant is being commissioned just in time for the festive season and the beginning of the summer cropping season, periods during which demand for fuel is very high.

As a nation we have once again demonstrated that the ill-fated sanctions against the innocent people of Zimbabwe can never subdue our resilience and inner propulsion to succeed and remain on our feet as a nation. Soon, our economy will be paying us back the dividends of the seedlings of progression we are planting across different productive sectors. - Robert Mugabe

The Transload biodiesel plant, located 15 kilometres (10 miles) northwest of Harare, is a joint venture between a Zimbabwean and South Korean firm. The plant has a capacity of 100 million litres of biodiesel annually. The main feedstocks are cotton seed, soya beans, jatropha and sunflower seed.

Zimbabwe imports some 4.7 million barrels of oil per year. Of this, the biodiesel plant would replace more than 630,000 barrels, roughly 13 percent, and save the country 80 million US dollars per year directly. Indirect savings due to smoother food production and lowered inflation have not been disclosed.

As a people, we have demonstrated that the dark clouds of our hard times, particularly those sown by Western destructive forces, have their silver lining by way of not just strengthening our resilience, but also of deepening our scientific research and stimulating our innovativeness. - Robert Mugabe

Zimbabwe is in the throes of an unprecedented economic crisis characterised by high inflation perched at nearly 8,000 percent, mass unemployment and chronic shortages of fuel. Fuel stations often go for months without deliveries while long queues form at the few that do receive supplies.

Mugabe's fusion of a discourse on energy security and political independence is not that far fetched: high oil prices and fuel dependence can literally destroy the economies of energy intensive, poor, oil importing countries like Zimbabwe. These developments are "exogenous" factors to which only biofuels offer an "endogenous" antidote. This is why the green fuels are often put in the ideological and geopolitical framework of economic independence and energy security.

The effect of high oil prices
More fundamentally, in least developed countries, record oil prices affect all sectors of the economy, but in particular the argricultural sector. In Zimbabwe, more than 65 percent of all people are employed in this sector. For the wealthiest countries (non-oil producing OECD), oil imports make up less than 2% of GDP, whereas for African oil importing nations this was more than 10% of GDP in 2006 (more here *.doc). In poor oil importing countries, oil price rises of the current magnitude imply a significant reduction of economic growth rates, an erosion of trade balances, rising unemployment, the destruction of the effects of debt relief efforts, and a hike in inflation rates. Of the 47 poorest countries, 38 are net importers of oil, and 25 are fully dependent on imports (more here). Zimbabwe belongs to the latter group. But there is more:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: biodiesel :: oil :: energy independence :: energy security :: food :: agriculture :: rural development :: Zimbabwe ::

If coupled with low foreign reserves some of the effects of current high oil prices are: decreased import capacity, lower consumption and investment, lower production and employment. And as always, the poor are hit hardest as they face lower employment prospects, higher inflation (fuel, transportation, basic goods), and cuts in government spending on social services (in a recent report, when oil stood at around US$ 60 per barrel, the UN found that some of the poorest countries are already forced to spend six times as much on imported oil as on such fundamental social services as health care and education (earlier post). According to an African Development Bank document on the effects of high oil prices on African societies:

Lower employment prospects and the higher inflation rate will lower the purchasing power of the poor who have fewer (if any) instruments to hedge against the oil price increase. The biggest impact will be through higher price of kerosene which is used for cooking and lighting. The poor will also be affected by higher transportation costs. Clearly, higher petroleum costs will increase commuting costs and, especially in the case of agricultural economies, the cost of getting the crops to the markets.

Given the limited availability of foreign exchange, these poor oil-importing countries face a number of options. Consumers and firms could decide to reduce their oil consumption but since the demand for oil is highly inelastic in the short-term, they may be compelled to reduce their consumption of other imported goods. Doing so could undermine economic growth especially if capital goods imports are affected.

Alternatively, countries could try to access foreign currencies to fill the gap and finance the energy bill. However, obtaining funds from private markets, bilateral and multilateral sources must be consistent with medium-term sustainability and sound debt management. In highly indebted poor countries, the only solution to fill the financing gap, and not to weaken growth, is to obtain grants or highly concessional loans. More importantly, governments will have to consider sustainable financing plans as all evidence points to oil remaining at high prices.

High oil prices will also exert a heavy toll on the budget both on the revenue and expenditure sides. On the revenue side, the tax base will be eroded if the profitability of oil-consuming companies is adversely affected and if unemployment increases. Expenditure could increase wherever governments subsidize oil products, or programs, which make intensive use of petroleum products. In that regard, an important question is if there should be complete pass-through of the oil price increase.

Governments are under heavy pressure to intervene to cushion the effect of the oil price increase. If the price of oil is not mean-reverting, price controls will lead to ever increasing losses which will ultimately be borne by current or future tax payers.

Subsidies to public utilities can also worsen the consolidated government budget deficit. In many countries electricity is produced using oil and is sold by law below its cost of production. In this case, the government will have to bear the additional expenditure from a higher oil bill. If the government does not have the resources to do so (for instance, if foreign reserves are too low), it may have to resort to rolling blackouts which have very adverse effects. Moreover, governments will themselves face higher energy bills through their own activities and that of state-owned companies.

Central banks may be tempted to tighten their monetary policy in reaction to the increase in inflation. Previous oil price shocks have produced significant increases in real interest rates which undermined domestic investment, pushed countries deeper into recession and produced stagflation. Furthermore, a rising fiscal deficit, combined with increasing public expenditures due to petrol consumption by public entities, can prompt the authorities to use monetary creation to finance the additional expenditures. As the increase in the price of oil is akin to a supply shock, an accommodating monetary policy would contribute to inflation. Non-inflationary policies are needed to avoid hyperinflation and to maintain monetary credibility.

Zimbabwe hopes that by relying on locally produced biofuels, which are expected to be less costly than imported refined petroleum products, some of the potentially disastrous effects of these many problems can be averted.

Mugabe blames the economic collapse of his country on targeted sanctions imposed on him and members of his ruling elite by the European Union and the United States following presidential polls in 2002 which the main opposition and Western observers say were rigged.

Picture: soldiers guard the Transload biodiesel plant on the outskirts of Harare. Credit: AFP.

References:
Agence France Press: Mugabe commissions Zimbabwe's first biodiesel plant - November 15, 2007.

The Herald (via AllAfrica): Zimbabwe: Government to Launch Biodiesel Plant Today - November 15, 2007.

Biopact: High oil prices disastrous for developing countries - September 12, 2007

Ralf Krüger: Impact of high oil prices on oil-importing countries in Africa [*.pdf], UNECA Project LINK meeting, Fall 2006, Geneva.

African Development Bank Group: Can Struggling African Economies Survive Escalating Oil Prices?

African Development Bank Group: High Oil Prices and the African Economy [*.doc] - Concept paper prepared for the 2006 African Development Bank Annual Meetings Ouagadougou, Burkina Faso.

Biopact: Zimbabwe's jatropha project receives US$11.6 million - May 18, 2007

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World's largest ethanol producer switches from natural gas to cleaner, cheaper biomass

Some biofuel skeptics have said that the production of the fuels requires large inputs of fossil fuels, and that rising energy prices will therefor severely impact profitability. Others have said biofuel production can just as well become entirely green, when fossil inputs are replaced by renewables, some of which have become competitive with fossil energy. In Brazil this is already being done routinely by utilizing waste biomass as the primary energy source for powering the ethanol factories.

Now the world's largest ethanol producer, South Dakota based POET, announced it is switching from natural gas to biomass to power the fuel production process at one of its plants. The switch will allow the facility to double its ethanol output without increasing fossil fuel usage. This intervention doubles the renewable energy balance of the biofuel and shrinks its overall carbon footprint since biomass is cleaner than natural gas.

What is more, with rising crude oil and natural gas prices, the switch represents a 'huge savings' POET officials said.

The POET Biorefining plant in Chancellor, South Dakota, is undergoing an expansion that will increase production capacity from 50 to 100 million gallons per year. The expansion includes construction of a solid waste fuel boiler that will use woody biomass as an alternative energy source that will generate enough steam to produce more than half of the expanded plant's power needs. The boiler system is expected to be operational by the third quarter of 2008. Mueller Pallets of Sioux Falls will supply the woodchip fuel for the boiler.

Poet's Chancellor plant plans to use 150 to 350 tons of waste wood per day, which it will store in one of two onsite storage bins. A reclaiming system will pull it out of the silos and into the solid waste fuel boiler, a box measuring about 70 feet tall, 20 feet wide and 15 feet deep. The heat will be used to boil water to make steam. The steam travels through a pipe into the plant, where it will replace up to 60 percent of the natural gas previously used to power the production process.

The solid waste fuel boiler will allow us to double our production capacity without increasing our natural gas usage. We will be reducing our operating costs by using a green fuel source to produce a domestic, green transportation fuel for America. - Rick Serie, General Manager of POET Biorefining - Chancellor

Waste wood from pallets, construction sites and area landfills will be the primary biomass fuel source for the solid waste fuel boiler. POET Biorefining - Chancellor has contracted with Mueller Pallets of Sioux Falls to provide the 150-350 tons of wood per day. The company, long a recycler of used transport pallets, has increased operations to accommodate POET's woodchip needs. Not only has Mueller begun acquiring and grinding waste wood from area landfills, but the company is also reaching out to tree services companies, contractors and other private sources to acquire and re-cycle waste wood at no charge to the providers.

It's a win-win situation. By recycling instead of disposing of waste wood, companies, cities and towns in the region will together save hundreds of thousands of dollars in landfill costs yearly. And while saving raw materials from disposal, the fuel product we process will help reduce the need for natural gas. - Margie Mueller, president of Mueller Pallets

POET Alternative Energy Engineer Jim Geraets said the solid waste fuel boiler will be outfitted with state-of-the-art pollution control equipment that exceeds state and federal standards and continuously monitored. Ethanol is one of the best tools we have to fight pollution from vehicles, Geraets says, and at POET we're always looking for ways that we can make the ethanol production process even more environmentally-friendly:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: natural gas :: wood :: waste :: renewable energy balance :: carbon balance :: climate change ::

Poet will evaluate the pilot project and says it would expand it to its other plants if it is proven to be successful.

POET Biorefining - Chancellor started operations in March, 2003. Last year, the facility produced 51 million gallons of ethanol and 160,000 tons of Dakota Gold Enhanced Distillers Nutrition products. The facility is in the midst of an expansion that will increase the production capacity to 100 mgpy. Construction on the expansion is expected to be completed in Q1 2008 and the solid waste fuel boiler is expected to be complete in Q3 2008. The construction will necessitate the hiring of approximately 20 additional employees for the facility, which is already the largest employer in the town.

POET, the largest ethanol producer in the world, is an established leader in the biorefining industry through project development, design and construction, research and development, plant management, and marketing. Formerly known as Broin, the 20-year old company currently operates 21 production facilities in the United States with six more in construction or under development. The company produces and markets more than 1.1 billion gallons of ethanol annually.

Picture: waste wood from the local industrial and forestry sector will be the biomass source used to power POET's Chancellor biorefinery. Credit: POET.

References:
POET: POET to power ethanol plant expansion with alternative energy source - November 15, 2007.

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Eco2 Biomass to build 40MW biomass power plant in the UK

Renewable energy company Eco2 Biomass has submitted a planning application to the North Kesteven District Council in Linconlnshire to develop a new 40 MW straw fired renewable energy plant near the town of Sleaford. The £80 (€112/US$164) million station would generate enough climate friendly power for 90,000 homes each year and create 80 jobs in the Sleaford area. The project would save 250,000 tons of CO2 each year and create a market for straw worth £6million a year. The ash from the plant would be recycled for fertilizer.

Public consultation
Two public exhibitions held at the end of July, showed considerable support for the project. Surveys revealed that almost 90% of people were concerned about the effects of global warming and felt that action needed to be taken. In reference to the project itself, over half of those who attended the public exhibitions, were in support of the plant, while 22% were neither in favour nor against the project. Two thirds of all who attended believed that the project would have significant environmental benefits.

However, the BBC reports that a 'not in my backyard' sentiment, that plagues so many renewables projects, has now emerged. Some local citizens fear lorries bringing the straw to the plant would clog local roads. Moreover, the main building would be built close to the local football club's ground and would be the equivalent of a 12-storey block of flats. The station's architectural and landscape design has been conceived in such a way that it blends in with the environment, using 'sympathetic' materials, layout and colors - the developers say.

Wind turbines, biomass power plants and nuclear facilities - renewables and clean energy sources that can help tackle climate change - increasingly face tough questioning from locals whose immediate environment is often impacted by such facilities. However, a public consultation process often succeeds in convincing the citizens of the benefits of the project and of the larger context in which it must be placed. Still, public consultations and thorough social impact assessments remain a sine qua non for the long term success of any type of large industrial project.

Andrew Toft, commercial director for Eco2, said he welcomed tough questions being asked:

This is part of the democratic process that we have to go through. We submitted our proposals in July and an online poll showed 77% in favour. The difficulty is that as time goes on the people who think it's a good idea fall away and those who are against it come forward.

The public exhibitions gave members of the community the opportunity to ask Eco2 Biomass’s project team questions about the project and have a look at the proposed plans for the plant:
energy :: sustainability :: biomass :: bioenergy :: straw :: climate change :: public consultation :: social impact assessment :: United Kingdom ::

Many who attended felt that their questions had been answered and that they had a better understanding of the importance of the project, ECO2 says. From its perspective, it learned a lot about what concerns the community have about the project and the developers are confident that the planning application deals with those issues fully.

The plant will would be built on Boston Road, to the east of Sleaford in Lincolnshire, and will be designed to generate renewable electricity by burning straw in a highly efficient, clean combustion process. Operation will take place continuously throughout the year and is expected to export over 300,000 MWh of green energy into the local grid.

The fuel supply chain for the plant is expected to inject over £6m a year into the region, and the plant will create approximately 80 jobs - 30 of which will be created in the direct running of the plant and a further 50 in regards to fuel supply.

This biomass plant is the flagship development for Eco2 Biomass. Considerable effort has been put into the design of the plant, which features a high quality architectural treatment using sympathetic materials enhanced by landscaping and extensive planting of indigenous species.

The application for planning permission was accompanied by a full environmental statement covering all aspects of the plant including transportation, landscape and visual impact, ecology and nature conservation, noise, air quality, archaeology and heritage.

References:
Eco2: Planning application submitted for new biomass renewable energy facility in Sleaford - September 11, 2007.

BBC: Straw power plant sparks dispute - November 16, 2007.

Sleaford Renewable Energy Plant, dedicated project website.

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U.S. and China working on biofuels pact

The United States and China are working on a pact to promote the use of biofuels to reduce greenhouse gas emissions and strengthen energy security. They could announce the agreement as early as next month, an American official said today in Beijing. It would be Washington's first such pact in Asia, following similar agreements with Brazil and Sweden.

The agreement would call for cooperation in research, producing crops for fuel and other areas, said Alexander Karsner, U.S. Assistant Secretary of Energy Efficiency and Renewable Energy. He was in Beijing for talks with officials from the National Development and Reform Commission (NDRC), China's top economic planner, to discuss the promotion of renewable energy sources.

We have concluded an agreement for exchanging expertise, technical assistance and technology development on energy efficiency. That agreement is mature and we are now moving to implementation. [...] Through our agreement with China, we hope to transfer this knowledge and expertise. [...] We had a very productive, lengthy and engaging dialogue on a wide range of issues, things of mutual concern like energy markets, global climate change, price of oil and studies of science and technology between the two countries. - Alexander Karsner, U.S. Assistant Secretary of Energy Efficiency and Renewable Energy

The United States and China are the world's biggest oil consumers and producers of carbon dioxide and other gases that scientists say trap the sun's heat and are raising global temperatures. In its latest World Energy Outlook, the IEA said the People's Republic will become a larger emitter than the U.S. this year. The agency also projects that in a business as usual scenario, global CO2 emissions will jump from 27 gigatonnes in 2005 to 42 Gt in 2030, with China alone accounting for 42% of the increase. In a high growth scenario, this share will increase to a whopping 49%, more than the rest of the world combined (except India) (graph, click to enlarge and previous post).

Karsner said he and Chinese officials talked about a meeting next month in Indonesia of environment officials from 80 countries to discuss a replacement for the Kyoto Protocol on emissions reductions. He said he did not bring up Washington's insistence that Beijing, a major emissions source, accept binding limits. China has rejected emissions caps, saying it prioritises economic development and poverty alleviation, but says it remains committed to trying to curb greenhouse gas emissions as much as possible (earlier post):
energy :: sustainability :: ethanol :: biodiesel :: biobutanol :: biomass :: bioenergy :: biofuels :: China :: United States ::

A biofuels agreement could be announced at the Dec. 12 meeting of the Strategic Economic Dialogue, a high-level U.S.-Chinese forum on trade and other issues, Karsner said. He declined to give details, saying they still are being discussed.

"China is a natural, as would be India, to enhance cooperation on biofuels," he said.

China has promoted wind power, biomass, biogas, biofuels and solar energy in hopes of reducing environmental damage from heavy use of coal and oil to fuel its booming economy. The communist government also wants to curb reliance on imported energy, which it sees as a strategic weakness.

China already is the third-largest producer of biofuels after the United States and Brazil, which account for 80 percent of global production, according to Karsner.

Recently the country announced a new plan to boost international cooperation in the development of renewables (earlier post). The plan is part of its $256 billion development strategy for renewable energy launched earlier this year which aims at increasing the proportion of renewable energy to 10 percent of total consumption by 2010, and to 15 percent by 2020. Renewables currently account for just 1 percent of China's total primary energy production (previous post).

References:
Xinhuanet: U.S. energy official: Sino-U.S. biofuel agreement in the works - November 16, 2007.

Associated Press: US, China Working on Biofuel Pact - November 16, 2007.

Biopact: IEA WEO: China and India transform global energy landscape - demand, emissions to grow 'inexorably' - November 08, 2007

Biopact: China unveils $265 billion renewable energy plan, aims for 15% renewables by 2020 - September 06, 2007

Biopact: China: poverty reduction, energy security more important than capping emissions - November 12, 2007

Biopact: China launches project to enhance international cooperation on new and renewable energy - November 14, 2007

Biopact: Brazil and U.S. sign biofuels cooperation agreement - March 09, 2007

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Large European ethanol maker hit by cheap Brazilian imports

German bioethanol producer Verbio says a combination of cheap imports from Brazil and high grain prices means commercial production of bioethanol in Germany is hardly possible. In a sense, this is good news, because it clearly demonstrates the need for and benefits of a 'Biopact' - a win-win strategy that allows developing countries to make use of their comparative advantages at producing efficient, sustainable and affordable biofuels, and European citizens to import them instead of making their own highly unsustainable and inefficient biofuels from grains, which drives up food prices.

Under such a Biopact, poor countries with large land and labor resources and urgently in need of economic and agricultural opportunities can help lift millions of the rural poor out of misery (previous post). Objectively speaking, they have all the resources needed to produce a very large amount of biofuels, in an explicitly sustainable manner (more here and here). With good policies and trade reform, such a mutually beneficial exchange relationship is possible. Important think tanks and international organisations - the FAO, the IEA (and here), the Global Bioenergy Partnership (and here), the UNIDO, the WorldWatch Institute and many others - have called for such a win-win situation. What is more, it would make an end to the unnecessary 'food versus fuel' debate, which is precisely driven by the fact that EU/US producers use grains like corn and wheat to make ethanol, while blocking far more efficient and less costly biofuels from the South.

Verbio posted [*German] a €600,000 net loss in January-September 2007 against a €25.7 million net profit in the same year-ago period. Nine month 2007 sales fell to €307.1 million from €325.7 million. The company said it had only produced on average about 50 percent of its total 300,000 tonnes annual German bioethanol production capacity in the first nine months of 2007. Bioethanol was produced at a loss because it could not compete with imports from Brazil and because its grain feedstock had reached record prices - the result of Europe's very own biofuel sector which utilizes grains instead of efficient tropical energy crops.

Brazilian ethanol thus pushes inefficient biofuels out of the European market, despite a high import tariff and despite massive subsidies for European producers:

Brazilian bioethanol is currently available in Germany at around 55 cents a litre but we need at least 80 cents a litre to cover our production costs using grain. - Verbio statement

Brazil's ethanol is highly competitive - currently about a third to fifty percent less costly than oil - and made from sugarcane, grown in the South of the country (more here). The International Energy Agency analysed the way in which the fuel is produced and deemed it to be largely sustainable (previous post). Sugarcane ethanol also has a much stronger energy and greenhouse gas balance than ethanol made from corn or wheat. Whereas corn ethanol reduces carbon emissions by only a fraction compared to gasoline (some say it can even add more), sugarcane ethanol reduces emissions by up to 80 percent. Likewise, whereas the energy balance for corn ethanol is barely positive (1 to 1 / 1.2), that of Brazilian ethanol is very strong (between 1 to 8 and 1 to 10).

What is more, according to the FAO's latest Food Outlook sugar prices have actually declined during 2006 and 2007, despite a record output of ethanol (more here). All other major agricultural commodities have seen their prices increase, partly because US/EU producers use them to make inefficient biofuels. In short, ethanol from wheat and corn pushes up food prices, ethanol from sugarcane does not:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: grain :: wheat :: corn :: efficiency :: Brazil :: Germany ::

In September, Verbio had said it was cutting bioethanol production at its 200,000 tonne plant in Schwedt in east Germany because of high grain prices and low bioethanol demand. The spokesperson declined to say how much the Schwedt plant was now working under capacity but it was less than 50 percent. But she said Schwedt will continue some production.

The company also has a second bioethanol plant in Zoerbig in east Germany producing about 100,000 tonnes annually which is not affected by the decision to run down output at Schwedt. Verbio has also been hit by rising prices for German grain which it uses as feedstock for both plants.

Verbio has successfully tested use of untreated alcohol, sugar syrup and sugar molasses as alternatives feedstocks to the grain currently used. The problem is that the major oil companies do not really want to use bioethanol and that the compulsory blending quotas are so low, the spokesperson added. This meant it was not worthwhile changing to new feedstocks.

German biofuel industry associations are pressing the government to raise minimum 2008 blending levels to 2.6 percent from 2 percent. If demand is increased the German ethanol industry could produce the fuel using alternative raw materials.


References:
Verbio: Biodieselgeschäft profitabel, EBIT-Marge 5,9% – Ethanol weiterhin deutlich unter den Erwartungen – Ausblick bestätigt - November 14, 2007.

Guardian: German bioethanol firm hit by cheap Brazil imports - November 14, 2007.

Biopact: Worldwatch Institute: biofuels may bring major benefits to world's rural poor - August 06, 2007

Biopact: Brazilian ethanol is sustainable and has a very positive energy balance - IEA report - October 08, 2006

Biopact: Nature sets the record straight on Brazilian ethanol - December 09, 2006

Biopact: FAO forecasts continued high cereal prices: bad weather, low stocks, soaring demand, biofuels, high oil prices cited as causes - November 07, 2007

Biopact: NREL: Brazilian ethanol does not harm the Amazon - July 12, 2007

Biopact: Worldwatch Institute chief: biofuels could end global malnourishment - August 23, 2007

Biopact: FAO chief calls for a 'Biopact' between the North and the South - August 15, 2007

Biopact: Report: biofuels key to achieving Millennium Development Goals in Africa - August 02, 2007

Biopact: IEA chief: Europe and United States should import ethanol from developing world - October 16, 2006

Biopact: IEA chief economist: EU, US should scrap tariffs and subsidies, import biofuels from the South - March 06, 2007

Biopact: Stiglitz explains reasons behind the demise of the Doha development round - August 15, 2006

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CARMA: website reveals emissions from more than 50,000 power plants worldwide

A very interesting project, the Carbon Monitoring for Action (CARMA) database, offers the first global inventory of emissions from more than 50,000 power stations on the planet. Its data is compiled by the Confronting Climate Change Initiative at the Center for Global Development (CGDev), an independent and non-partisan think tank located in Washington, DC. CARMA offers a perfect starting point for conducting comparative studies on local, regional and global emissions generated from the power sector.

CARMA's database includes more than 50,000 power plants of different sizes, 4,000 power companies, and nearly 200,000 geographic regions in every country on Earth. Users can view carbon emissions data for the year 2000, the present, and future plans. And all of CARMA’s data is updated quarterly to reflect changes in plant ownership and planned construction. The maps and database show each power facility in a region and give the plant its own page that reveals its location, ownership, power production, and CO2 emissions. Users can select individual plants from interactive maps or lists, search for specific plants, or filter and sort the data in multiple ways. The data also show which type of fuel or primary energy input the power facility utilizes to generate electricity.

CARMA thus provides the world’s most detailed and comprehensive information on carbon emissions resulting from the production of electricity. Judging by the sheer number of red dots on the maps, the database shows that a transition to a cleaner, low carbon future is a tall order indeed. On a lighter note, CARMA, with its satellites and eyes in the skies, also offers the perfect place to indulge in power plant voyeurism.

We hope that CARMA will equip millions of concerned global citizens – consumers, investors, political leaders, managers, professionals, and community organizers – with the information they need to take action and build a low-carbon future. - CARMA

The initiative is based on the notion that public disclosure of critical information can have powerful effects on environmental performance. CGDev believes that the time is ripe for rapid reduction of carbon emissions, and CARMA is intended to be its contribution to this effort. As a think tank involved in addressing development questions, the CGDev is particularly concerned because global warming threatens to undermine the poverty-reduction efforts of many developing countries.

First results: Australians worst emitters
A first study based on CARMA has already yielded interesting results. It shows the extent to which developed countries produce more carbon dioxide per head than emerging economies. Australians were found to be the world's worst polluters per capita, producing five times as much CO2 from generating power as China. The US came second with eight tonnes of the greenhouse gas per head - 16 times more than that produced by India. The US also produced the most CO2 in total, followed by China:
energy :: sustainability :: fossil fuels :: biomass :: bioenergy :: nuclear :: renewables :: power plants :: climate change :: carbon emissions ::

CARMA points out that while US power plants emit the most CO2, releasing 2.5 billion tonnes into the atmosphere each year, Australian power stations are the least efficient on a per capita basis, with emissions of 10 tonnes, compared with the US's 8.2 tonnes.

China's power sector emits the second-highest total amount of carbon dioxide, pumping 2.4bn tonnes of the gas into the atmosphere annually. However, its emissions are only one fifth of Australia's when measured on a per capita basis.

CARMA's carbon worries
The bulk of humanity’s energy needs are currently met through the combustion of fossil fuels like coal, oil, and natural gas. About 60% of global electricity generation relies upon fossil fuels to generate the heat needed to power steam-driven turbines. Burning these fuels results in the production of carbon dioxide (CO2) – the primary heat-trapping, “greenhouse gas” responsible for global warming.

Over the past two centuries, mankind has increased the concentration of CO2 in the atmosphere from 280 to more than 380 parts per million volume, and it is growing faster every day. The atmospheric concentration of CO2 has not been this high for at least the past 650,000 years. As the concentration of CO2 has risen, so has the average temperature of the planet. Over the past century, the average surface temperature of Earth has increased by more than 1.3°F (0.74°C). If we continue to emit carbon without restraint, temperatures are expected to rise by an additional 6°F (3.4°C) by the end of this century.

Climate change of that magnitude would likely have serious consequences for life on Earth. Sea level rise, droughts, floods, intense storms, forest fires, water scarcity, and cardiorespiratory and tropical diseases would be exacerbated. Agricultural systems would be stressed – possibly decimated in some parts of the world. A conservative estimate suggests that 30% of all species are at risk of extinction given current trends. It would be the greatest extinction of life on Earth since the K-T extinction event that destroyed the dinosaurs 65 million years ago. No one can imagine, never mind predict, the ecological consequences of such a radical loss of life.

Despite mounting evidence of the dangers posed by climate change, efforts to limit carbon emissions remain insufficient, ineffective, and, in most countries, non-existent. If the world is to avert the worst consequences of an altered climate, the status quo must change quickly. Given current trends and the best available scientific evidence, mankind probably needs to reduce total CO2 emissions by at least 80% by 2050. Yet each day emissions continue to grow.

In the absence of action on the part of governments, hundreds of millions of increasingly climate-conscious citizens can promote low-carbon alternatives by changing the ways they purchase, invest, vote, think, and live. CARMA thinks all we need is timely, accurate, publicly-available information about the choices we face. The Carbon Monitoring for Action website offers this information.

References:
CARMA project.

Center for Global Development: Confronting Climate Change Initiative.

BBCNews: Australians named worst emitters - November 14, 2007.

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The bioeconomy at work: Dow successfully completes testing phase for biobased polyols

In September, Dow Polyurethanes, a business group of The Dow Chemical Company, successfully completed preliminary development of natural oil based polyols (NOPs) for urethane formulations and will begin product sampling with a select group of customers immediately. Dow plans to begin market development scale production of the next-generation biobased polyols before the end of the year. The green polymer compound is made from soy oil, even though other natural oils will be used later on. Its production is based on a novel process dubbed RENUVA, which is carbon neutral and reduces fossil fuel inputs by up to 60 percent.

Polyols are compounds with multiple hydroxyl functional groups available for organic reactions. A molecule with two hydroxyl groups is a diol, one with three is a triol, one with four is a tetrol and so on. The main use of polymeric polyols is as reactants to make other polymers, such as polyurethanes. These materials are ultimately used in a wide variety of applications such as rigid and flexible foams, adhesives, sealants, coatings, elastomers and more. The biobased polyols made with RENUVA technology will help manufacturers of commercial and consumer products in the furniture and bedding, automotive, carpet and CASE (coatings, adhesives, sealants and elastomers) markets to more effectively differentiate themselves and meet their customers' growing demand for finished products that are both high quality and environmentally sound. With this polyol, the bioeconomy has now developed plant-based, renewable alternatives for most commonly used petroleum based polymer groups.

Producing polyurethanes from natural oil sources isn't a completely new concept, but Dow's approach is. The company developed a distinct, multi-step process - 'RENUVA' Renewable Resource Technology - to break down and functionalize the vegetable oil molecules, then reconstructs them in combination with traditional polyurethane molecules to achieve quality and consistency (schematic, click to enlarge). RENUVA creates polyols with a reduced impact on the environment. Life-cycle analysis done by researchers shows the technology is greenhouse gas neutral and uses 60% fewer fossil fuel resources than the conventional polyol technology. This technology enables products with high levels of renewable content and without the odor often associated with bio-based polyols.

Since first announcing its intention to conduct small-scale product testing of NOPs with select customers in June of 2005, Dow has continued to invest in further advancing the technology and capabilities of these next generation products. The company has now achieved the performance milestones necessary to support moving ahead to the market development scale production phase.

Our developmental work has reached the point where we are now able to produce natural oil based polyols that can match or exceed the performance of hydrocarbon-based products, and at fairly high levels of natural oil polyol content. Dow’s continued work in developing NOPs illustrates our continued commitment to pursuing practical technology options for small scale, economical and enviromentally advantaged feedstocks where they make sense, support our business strategies and, most importantly, meet the needs of our customers. - Pat Dawson, business vice president, Dow Polyurethanes

Early developers of NOPs experienced several performance challenges when incorporating NOPs into formulations such as retaining tensile strength, resiliency, and compression set. And, as they increased the level of NOPs in formulations, the processability of the foam was often compromised:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: soybeans :: polyol :: bioplastic :: biopolymer :: bioeconomy ::

Dow’s mastery of polyurethanes chemistry enabled it to make significant progress on many of these critical performance issues. The company achieved this improved level of performance by creating optimized blends of NOPs and propylene oxide polyols. By working with a select group of customers during this next phase, Dow will continue to refine the performance attributes of these products so that they meet specific customer needs.

To enable more extensive product sampling and scale-up of small, beta projects, Dow plans to begin market development scale production of soy-based polyols in 2007. Meanwhile, the company is exploring various production options to support additional capacity as customer demand for the products grow. Based on progress in this second phase, Dow will evaluate options for this new line of natural oil based polyols, which includes bringing on additional capacity and expanding into new applications and geographies.

Dow’s investment in natural oil based polyols is consistent with the company’s recently announced 2015 Sustainability Goals, one aspect of which calls for investment in products and technologies that will help reduce industry’s dependency on non-renewable resources. Natural oil based polyols can be made from soybeans, sunflower seeds or rapeseeds, although Dow’s technology currently focuses on a polyol that contains a significant percent of oil extracted from soybeans.

Dow’s intention is to ultimately develop a NOP-based multi-generational product line that provides customers with superior solutions to meet their needs in applications such as flexible slab, molded, and some CASE applications. In addition, other Dow businesses, such as Dow Automotive, are working with their customers to introduce natural oil polyols into automotive applications.

We now have the technology, the results and the capabilities to take the first step toward providing a full line of natural oil based polyols to customers around the globe. - Pat Dawson, business vice president, Dow Polyurethanes

Dow is the world’s largest producer of polyether polyols, a leading producer of quality aromatic isocyanates, such as MDI and TDI, and a major supplier of propylene oxide, an essential component of polyether polyols. Dow’s polyurethanes products and formulated systems are used in rigid foams, flexible foams, adhesives, sealants, coatings, and elastomers, as well as many other applications. Dow also offers the latest in polyol technology with its VORANOL VORACTIV polyols, part of an ongoing initiative by Dow to lead the industry in providing high-performance products with reduced VOC-emissions.

References:
Dow Polyurethanes: Cleaner, Greener, Performance Polyols - Enabled by Breakthrough Technology from Dow [*.pdf].

Dow Polyurethanes: Natural Oil-based Polyols for C.A.S.E Applications [*.pdf].

Dow Polyurethanes: Breakthrough Technology from Dow Polyurethanes Promotes Sustainable Chemistry and Excellent Product Performance - September 25

Dow Polyurethanes: Dow Polyurethanes Successfully Completes Testing Phase for Natural Oil Based Polyols - September 25

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