Biomass Technology Review
Biomass Technology Review
Biomass Technology Review
cruciblecarbon
consulting
(This page left blank intentionally for the purposes of double sided printing and page alignment)
BIOMASS TECHNOLOGY REVIEW:
PROCESSING FOR ENERGY AND
MATERIALS
PREPARED BY
CRUCIBLE CARBON
FOR
SUSTAINABILITY VICTORIA
APRIL 2008
© 2008
Disclaimer
The professional advice of Crucible Carbon contained in this report is prepared for the use of the addressee
and for the purposes specified in the report. The report is supplied in good faith and reflects the knowledge,
expertise and experience of the consultants involved. The report is free to be published, quoted or
disseminated to any other party provided that due acknowledgement is given to Sustainability Victoria and
Crucible Carbon. However, no responsibility is accepted for any loss occasioned by any person acting or
refraining from action as a result of reliance on the report.
In conducting the analysis in the report Crucible Carbon has endeavoured to use the best information available
at the date of publication, including information supplied by the client. Crucible Carbon’s approach is to develop
analyses from first principles, on the basis of logic and available knowledge. Techno-economic data, including
capital estimates, are indicative only. It is highly recommended that data be validated and that independent
project-specific advice be obtained before making any commercial decisions. Unless stated otherwise, Crucible
Carbon does not warrant the accuracy of any forecast or prediction in the report. Although Crucible Carbon
exercises reasonable care when making forecasts and predictions, factors such as future market behaviour are
uncertain and cannot be forecast or predicted reliably.
MR MARK BARBER
SUSTAINABILITY VICTORIA
L28 URBAN WORKSHOP
50 LONSDALE, MELBOURNE 3000
EMAIL: [email protected]
www.sustainability.vic.gov.au
MR MATTHEW WARNKEN
CRUCIBLE CARBON
PO BOX 705, GLEBE NSW 2037
Tel: +61 2 9571 4511, Fax: +61 2 9571 4522,
Email: [email protected]
Website: www.cruciblecarbon.com
EXECUTIVE SUMMARY
This report is designed for those who want to better understand biomass processing options as a business
opportunity for production of bioenergy and material products.
A future carbon neutral society will still require carbon based products and services, such as high energy
density fuels, organic materials, chemicals and reductants, which are now primarily sourced from fossilised
coal, oil and gas.
Biomass is the originator of fossil carbon sources and can therefore produce similar energy and material
products with the distinction that the carbon in biomass is recently sourced from the atmosphere and
therefore is part of an intrinsically balanced carbon cycle.
The report is focussed on primary technology options for biomass with guidelines for addressing critical
issues and identifying major strategic opportunities.
Biomass Processing
Biomass processing technologies capture value from biomass in different ways because biomass
resources have varying ratios of distinctly different molecular structures (essentially water soluble
carbohydrates, water insoluble carbohydrates and hydrocarbons). Value adding technology must be
tailored to the biomass type to achieve optimum outcomes.
Lignocellulosic material (woody biomass) is overwhelmingly the most common form of biomass in
agricultural, industrial, municipal, forest and natural environments. Tree based lignocellulosic biomass can
be essentially harvested on demand therefore offers the most stable and scalable primary resource for
biomass technologies. The abundance of lignocellulosic biomasses provides strategic advantages to the
thermal technologies and to emerging cellulosic fermentation.
There are six generic technologies for energy conversion based on: direct combustion for power;
anaerobic digestion for methane rich gas; fermentation of sugars for alcohols; oil exaction for biodiesel;
pyrolysis for biochar, gas and oils; and gasification for syngas. These can then be followed by an array of
secondary processing options depending on specific final products.
Anaerobic digestion, fermentation and oil extraction are suited to specific biomasses that have easily
extractable oils and sugars or high water contents. Such biomass resources are mainly associated with
the food chain and are strategically constrained (limited availability and/or competition for land). Digestion,
oil extraction and fermentation of sugars are all well established commercially.
Thermal technologies such as direct combustion, pyrolysis and gasification, can effectively process all
forms of biomass, including complete utilisation of lignocellulosic materials. Combustion and gasification
of biomass for heat and power is commercially proven. Of the thermal processing options, pyrolysis
provides the most flexible product platform, being able to generate solid, liquid and gas outputs roughly
analogous to their coal, oil and gas fossilised counterparts. However, there are still relatively few
commercial pyrolysis operations using biomass feedstocks.
Pyrolysis outputs are mainly used in basic heat and power applications, with developments underway to
produce higher quality transport fuels through the further refining of biocrude. Pyrolysis char (biochar) can
be used for energy, metallurgical reduction, activated carbon, or for carbon sequestration in soils.
Evaluating Opportunities
The success of bioenergy projects depends fundamentally on sustainable biomass supply, techno-
economically viable processing and a societal licence to operate
Given the pressures of climate change along with rising oil and gas prices, major investments in bioenergy
technologies can be expected in the coming decade. This will especially occur in high potential emerging
technologies (lignocellulose to liquids) with accelerating improvements in technical performance, capital
intensity, energy efficiency and product development.
Bioenergy has already advanced to the point that there are a wide range of opportunities for viable
business development based on proven technologies (especially combustion, digestion, fermentation and
oil extraction). The opportunities will greatly expand as pyrolysis and cellulose fermentation of
lignocellulosic biomass become more established in the coming years.
The report presents a sustainability scorecard for bioenergy projects to help address the critical issues
encountered when developing a project around specific biomass resources, selecting process technology
for targeted markets and obtaining support from stakeholders.
Sustainable biomass supply is critically dependent on land, water and biodiversity management. This
includes minimising the use of prime agricultural land, maximising soil fertility and carbon sinks, ensuring
balanced nutrient cycles and water budgets while promoting regenerative practices with respect to native
habitats and ecosystems in impacted regions. There are strategic sustainability advantages of biomass
sourced from multispecies native assemblages.
A viable processing business is critically dependent on security and availability of feedstock supply,
selecting technologies that are capital effective and demonstrated for the feedstock and product
applications as well as clear market insight and strategies. Critical to business success is the ability to
balance risk and innovation in what is certain to be a dynamic environment with respect to emerging
technologies, emission standards, feedstock competition, carbon trading and oil prices.
Securing a societal licence to operate involves alignment with government policy, proactive engagement
with local communities and regional development, and participation in the wider public debates on energy
futures and the environment.
A sustainability evaluation tool is of course no substitute for detailed analysis of the financials and all other
aspects of the business case. Weaknesses identified by the sustainability scorecard do not necessarily
mean a project should be abandoned, but rather that the issues should prompt fresh thinking, innovation
and better risk management responses.
Bioenergy is strategically attractive because it has the potential to be carbon neutral, or even better
(carbon negative) when combined with sequestration. However, robust carbon and sustainability
accounting on a complete life cycle basis is needed to defend the environmental credentials and
greenhouse benefits of bioenergy projects.
GLOSSARY
GJ Gigajoule – unit of energy corresponding to 109 Joules
N2O Nitrous Oxide – a potent greenhouse gas released by the bacterial breakdown of soil
nitrogen and combustion
Alcohol Alcohols are hydrocarbons with an –OH group attached somewhere to the carbon
chain. Hydrogen bonding means that alcohols form liquids at much shorter chain
lengths than hydrocarbons, and are more water soluble with a lower energy density
than hydrocarbons
Anaerobic Digestion Biological degradation via microorganisms of carbonaceous material in the absence of
oxygen to methane (CH4) and hydrogen (H2)
Bioenergy Technically any thermal or electrical energy sourced from the oxidation of biofuels,
sometimes limited to specifically referring to electricity generated from biofuels
Biofuel Technically any biologically derived solid, liquid or gaseous fuel for use in combustion
applications, but sometimes limited to referring specifically to transport fuels
Biomass Any living or recently living material – typically composed of insoluble carbohydtrates
(lignocellulose). Other important components of biomass are soluble sugars/starch,
proteins and lipids
Calorific Value Calorific value refers to the amount of energy released during the combustion of a fuel
Carbohydrates Molecules usually of biological origin consisting of carbon, hydrogen and oxygen.
Often containing sugars such as glucose arranged as either soluble polymers (starch
or glycogen) or insoluble polymers (cellulose). Partial oxygenation means that the
energy density of carbohydrates is approximately half that of hydrocarbons. Soluble
sugars are the main feedstock for alcohol production via fermentation
Carbon Sequestration The capture and medium-to-long term storage of atmospheric carbon (primarily
carbon dioxide) into carbon 'sinks' such as forests, soil, oceans and geological
formations
Cellulose An insoluble crystalline polymer of glucose and largest bulk molecular component of
plants. See Lignocellulose and Carbohydrates
Climate Change Variation in mean global temperature as a result of anthropogenic activities. Changes
include ice cover, ocean currents, rainfall, weather patterns and temperature
distributions. (Also referred to as global warming)
Cogeneration A generating facility that produces electricity and another form of useful thermal
energy (such as heat or steam) used for industrial, commercial, heating, or cooling
purposes
Coppice Trees or shrubs that are cut for re-growth at regular intervals to provide a sustainable
source of wood
Dryland Salinity Dryland salinity refers to the degradation of land due to increasing concentrations of
salt in soils and watercourses primarily attributed to rising water tables bringing
dissolved salts to the surface
Greenhouse Gases Air emissions that contribute to global warming. They include carbon dioxide (CO2),
methane (CH4=25 CO2e), nitrous oxide (N2O=296 CO2e) and other gases generated
during industrial processes
Hydrocarbons Molecules consisting of carbon and hydrogen arranged in a chain, branching or ring
structure; the basis of liquid transport fuels
Joule Standard measure of energy equivalent to the energy required to increase the
temperature of 1 gram of distilled water at standard temperature and pressure by 1
degree Kelvin
Life Cycle Analysis (LCA) A robust accounting of material and energy flows within well documented
system boundaries (refer to ISO1440 series standards). LCA’s may be used to
compare systems (processes and products) on common a functionality basis
Lignin An amorphous matrix molecule in plants containing linked aromatic rings. See
Lignocellulose
Lignocellulose An insoluble carbohydrate found in plant cell walls and therefore making up the
majority of plant derived biomass. Comprises cellulose fibres within a lignin matrix
with some hemicellulose to aid in bonding
Protein A soluble carbohydrate with high nitrogen and sulphur content carbohydrate like
polymers. Nitrogen and sulphur are often limiting nutrients to growth, so proteins are
well suited as an animal feed but not to many bioenegy uses
Pyrolysis Heating carbonaceous material in the absence of oxygen to produce char, oil and gas
outputs
Pyrolysis Oil Complex mixture of highly oxygenated hydrocarbons resulting from the thermal
depolymerisation of biomass in the absence of oxygen
Sustainability The ability to create value in society without systemic social or ecological degradation;
meeting the needs of today without jeopardising the needs of future generations
Syngas A mixture of Hydrogen (H2) and Carbon Monoxide (CO) produced by gasification that
can be combusted or used as chemical feedstock for synthesis reactions
Watt (W) Unit of power equivalent to 1 Joule of energy use per second
CONTENTS
Executive Summary .......................................................................................................................................................... i
Glossary........................................................................................................................................................................... iii
Contents............................................................................................................................................................................ v
Figures ............................................................................................................................................................................. vi
Tables .............................................................................................................................................................................. vi
1 Background and Introduction ............................................................................................................................ 1
2 Energy Biomass and Sustainability................................................................................................................... 2
2.1 An Overview of Energy in Victoria ...................................................................................................................2
2.2 Biomass Attributes...........................................................................................................................................3
2.3 Sustainability Considerations ..........................................................................................................................4
2.4 Biomass and Food Production Competition ....................................................................................................5
2.5 Overview of Near Future Carbon Pricing.........................................................................................................6
3 Biomass resources.............................................................................................................................................. 8
3.1 Biomolecular Constituents...............................................................................................................................8
3.2 Crops Containing Extractable Non-lignocellulosic Values...............................................................................9
3.3 Bulk Lignocellulosic Crops.............................................................................................................................10
3.4 Residues and Wastes....................................................................................................................................12
3.5 Productivity ....................................................................................................................................................13
3.6 Integration of Biomass Aspects .....................................................................................................................15
4 Biomass Technologies for Energy and Materials........................................................................................... 18
4.1 Direct Combustion .........................................................................................................................................19
4.2 Anaerobic Digestion ......................................................................................................................................20
4.3 Fermentation .................................................................................................................................................21
4.4 Oil Extraction .................................................................................................................................................23
4.5 Pyrolysis ........................................................................................................................................................24
4.6 Gasification....................................................................................................................................................27
4.7 Integration of Technology Aspects ................................................................................................................28
5 Evaluating Bioenergy Projects......................................................................................................................... 29
5.1 Sustainability Scorecard................................................................................................................................29
5.2 Illustrating the Score Card.............................................................................................................................32
5.3 Integration of Sustainabiltiy Aspects..............................................................................................................33
6 Conclusions ....................................................................................................................................................... 34
FIGURES
Figure 1 – Overview of the report structure.................................................................................................................... 1
Figure 2 – Schematic of balanced carbon cycle ............................................................................................................ 4
Figure 3 – Rainfall as a fundamental driver of productivity .......................................................................................... 15
Figure 4 – Land use in Victoria .................................................................................................................................... 16
Figure 5 – One of the largest heat and power plants is the Alholmens Kraft facility in Finland, which generates 560
megawatts thermal (MWth) and 240 megawatts electrical (MWe) from woody biomass ..................................... 20
Figure 6 – Anaerobic digestion at the Carrum sewage treatment plant of Melbourne Water ...................................... 21
Figure 7 – The world’s largest fuel ethanol plant, Jilin, China, processes close to 2 M tonnes of corn per year to
produce some 2.3 Ml per day ethanol ................................................................................................................ 23
Figure 8 – Natural Fuels Biodiesel plant in Darwin ...................................................................................................... 24
Figure 9 – Dynamotive flash pyrolysis plant in West Lorne Canada............................................................................ 26
Figure 10 – Soil regeneration through ‘terra preta’ ...................................................................................................... 26
Figure 11 – Battelle gasifer in Vermont, USA .............................................................................................................. 28
Figure 12 – Schematic representation of evaluation of a pyrolysis based bioenergy project ...................................... 32
Figure 13 – Strategic platform for maximum value capture from bioenergy resources................................................ 33
TABLES
Table 1 – Biomass processing technologies in comparison with other low carbon energy technologies ..................... 3
Table 2 – Hierarchy of sustainability considerations for biomass processing projects ................................................. 5
Table 3 – Primary processing technologies and the ability to process different biomolecules ..................................... 9
Table 4 – Biomolecular composition of different biomass resources. ......................................................................... 14
Table 5 – Sustainability considerations of biomass sources........................................................................................ 16
Table 6 – Overview of biomass technologies.............................................................................................................. 18
Table 7 – Direct combustion technology ..................................................................................................................... 19
Table 8 – Anaerobic Digestion technology summary.................................................................................................. 21
Table 9 – Fermentation technology summary............................................................................................................. 22
Table 10 – Oil Extraction summary .............................................................................................................................. 24
Table 11 – Pyrolysis technology summary.................................................................................................................. 25
Table 12 – Gasification technology summary ............................................................................................................. 27
Table 13 – Sustainability Considerations of Biomass Processing Technologies ......................................................... 28
Table 14 – Ecologically sustainable biomass supply .................................................................................................. 29
Table 15 – A commercially and technologically viable processing business .............................................................. 29
Table 16 – The licence to operate............................................................................................................................... 29
Table 17 – Grading Scale Descriptors for Bioenergy Project Sustainability Considerations ...................................... 30
The report was commissioned by Sustainability Victoria, a state government organisation with a focus on
the development of policy and practical initiatives designed to reduce everyday environmental impacts and
to use resources more efficiently.
The report has been written by Crucible Carbon Pty Ltd, a research and consulting organisation that links
sustainability, business strategy, innovation, engineering and science. The report is focussed on
technology options for biomass with guidelines for addressing critical issues and identifying major strategic
opportunities.
In a carbon constrained future, society will still require carbon based products and services, such as high
energy density fuels, organic materials, chemicals and reductants, which are now primarily sourced from
fossilised coal, oil and gas.
Biomass is the originator of fossil carbon sources and can therefore produce similar energy and material
products, with the distinction that the carbon in biomass is recently sourced from the atmosphere and
therefore is part of an intrinsically balanced carbon cycle. Bioenergy is strategically attractive because it
has the potential to be carbon neutral, or even better (carbon negative) if combined with sequestration.
1. Background and
Introduction
2. Energy, Biomass and
Sustainability
3. Biomass Resources
4. Biomass Processing
Technologies
5. Evaluating Bioenergy
Projects
6. Conclusions
The structure of this report is presented in Figure 1 above. Following this introductory section the report
consists of sections designed to place the details of biomass resources and processing technologies
within a systems perspective of scale and sustainability considerations. Key information for understanding
the details of specific technologies is provided in sections 2-4 inclusive. Section 5 integrates the findings
into a Sustainability Analysis Tool designed to assist those developing specific projects. This tool provides
an easy to use analysis framework that guides proponents through the insights of the report and helps to
make determination of issues as they apply to their unique case. The final section summarises the major
strategic relationships and opportunities identified by the review with regards to the development of
sustainable bioenergy opportunities.
The current energy backbone of Victoria involves mining fossil fuels from concentrated reserves as either
gases (natural gas), liquids (crude oil) or solids (brown coal) and distributing the energy to the community
via electrical, gas, liquid or solid fuel distribution networks. As of 2007 Victoria had substantial reserves of
coal (99 per cent remaining), declining reserves of natural gas (43 per cent remaining) and depleted
reserves of oil (14 per cent remaining).5 Electricity production from brown coal is currently the most
carbon dioxide (CO2) intensive method of electrical energy production (1.158 -1.58 kilograms carbon
dioxide equivalent per kilowatt hour (kgCO2e/kWh))6 and places Victoria in the unenviable position of being
the clear Australian leader in electricity related emissions.
4 Department of Climate Change, 2007, ‘State and Territory Greenhouse Gas Inventories 2005’, Australian Government Department of Climate Change, accessed at
http://www.climatechange.gov.au/inventory/stateinv/index.html, February, 2008; CO2e represents CO2equivalent and is a common measure of relative greenhouse
impact. Other gasses such as CH4 and N2O are also greenhouse gasses and represent a different CO2e depending on their potency.
5Data accessed from Chemlink, http://www.chemlink.com.au/vicchem.htm, February, 2008; State Government Victoria Department of Primary Industries, accessed
at http://www.pesa.com.au/vic_supp/vicsupp_5.htm February, 2008; This means Victoria is currently self sufficient in relation to electricity (via brown coal
combustion), but must increasingly import its liquid fuel requirements and will need to import gas within the coming decades.
6 Actual emissions depend on particular power station and variation in load use. Typically older infrastructure such as Hazelwood has higher intensity than newer
infrastructure such as Yoy Lang A. Berger, C and Phelan, T, 2005, ‘Greenhouse Pollution Intensity in the Victorian Brown Coa lPower Industry’, Australian
Conservation Foundation and Environment Victoria, accessed at http://www.envict.org.au/file/Greenhouse_Brown_Coal_05.pdf February, 2008.
Biomass is the progenitor of fossil fuels in that natural gas, oil and coal are biomass that has been
converted into concentrated energy forms by geological processes akin to pyrolysis (heating in the
absence of oxygen) under pressure. This means that with appropriate industrial processing, newly
harvested biomass can be converted into homologs of current gas, liquid and solid fossil fuel resources.
All other renewable or low carbon energy technologies (for example solar, wind, nuclear) can only produce
heat and power; whereas biomass is able to supply a range of carbon based products with material
qualities, such as liquid fuels, metallurgical reductants, lubricants and a wide range of petrochemical
substitutes. This could contribute relatively seamlessly to a low emission future with respect to existing
downstream technologies and infrastructure assets, and in general it will wise be concentrate the use of
biomass to applications where material qualities can be brought to bear. The comparative features and
outputs from biomass processing technologies is summarised in the table below.
Table 1 – Biomass processing technologies in comparison with other low carbon energy technologies
Hydro 9 9 9
Wind 9 9
Solar thermal 9 9 9
Solar photovoltaic 9 9
Geothermal10 9 9 9 9
Wave/Tidal 9 9
Nuclear 9 9 9
Biomass 9 9 9 9 9 9 9 9
7 Modelling based on data from ‘Australian Natural Resource Atlas’, Australian Government, accessed at http://www.anra.gov.au/topics/land/carbon/vic/ February,
2008. Technique used average primary productivity data to determine annual ‘bone dry tonne equivalent’ biomass production for the state and then multiplied this
by the bone dry calorific value of biomass (assumed to be 20GJ/t). This number varies annually depending on climate and agricultural practices.
8 Based on a primary energy consumption of 1394.7PJ in 2004-2005 ‘Energy Generation in Victoria’, Sustainability Victoria, accessed at
Only biomass processing can potentially match the full range of fossil fuel attributes. Low carbon emission
fossil fuel use depends on geosequestration which, even when proved, will be limited to stationary heat
and power applications.
Biomass is a renewable resource (see Figure 2) as long as the average rate of harvest is less than or
equal to the average rate of regrowth.11 Biomass production systems are nutrient dependent, hence non-
renewable if they systematically degrade the material value of finite nutrient resources.12
Biomass use for energy purposes has low net greenhouse gas emissions despite CO2 emissions during
combustion, because the carbon in the biomass was sourced from the atmosphere as CO2 during plant
growth, as shown in the schematic below. This is particularly attractive as it allows for continued use of
high energy density carbon based fuels in dispersed applications, such as transport, where carbon capture
and storage is not practically possible.
6CO2(g) + 6H20
Carbon Neutral
Bioenergy Bioenergy Cycle Solar Energy
(Carbon (Photosynthesis)
Oxidation)
6O2(g) + C6H12O6
Biomass
In reality, bioenergy projects will exist on a scale from carbon negative (net removal of CO2e from the
atmosphere) to carbon emitting (net addition of CO2e) depending on the growth practices, transport, and
processing technologies.14 The ability to be carbon negative is distinct from other renewable technologies,
11 In cases where the regrowth of biomass is hindered by a land use change (such as the transition of forest to grazing, cropping, urban or mining land) the biomass
harvested may be used for bioenergy, but is finite in volume and cannot be considered ‘renewable’ (the successful rehabilitation of mining land would make originally
cleared biomass renewable).
12 An example of this is biogas production from the anaerobic digestion of sewage where the resultant nutrient rich biosolids are degraded by deliberate dispersal
which can only achieve carbon neutrality at best.15 Bioenergy projects can be net greenhouse gas
emitting, if there are significant additional emissions over the life cycle, such as nitrous oxide (N2O) and
methane (CH4).16
Sustainable is a more fundamental term to describe projects than ‘renewable’ or ‘low emissions’.
Sustainability implies value being created in society without systemic degradation of ecological and social
systems, that is meeting the needs of today without jeopardising the needs of future generations.
Moreover, there has been a historical degradation of resources by agricultural and industrial activities, so
that in many cases it is possible, or indeed necessary to be ‘better than sustainable’ by reversing past
problems and thereby being environmentally or socially ‘regenerative’.
Bioenergy projects inevitably have impacts across a wide range of environmental, economic and social
domains that all must be considered to determine their sustainability status. Projects will not be
fundamentally successful unless they can demonstrate sustainable biomass supply, viable business
conditions and societal support, as summarised below.
− land
Ecologically Sustainable and
Viable Biomass Supply − water
− biodiversity
− feedstock supply
Commercially and
Sustainable Bioenergy and
Technologically Viable − technology
Materials Production
Processing Business
− products and markets
− government
Licence to Operate − community
− public
15 In reality ‘renewable’ energy technologies often have residual emission footprints through embodied energy and fossil fuel related operating and maintenance
emissions.
16 N O has a greenhouse gas intensity 310 times that of CO . N O emissions can be a by-product of Nitrogen fertilise s addition and anaerobic soils. CH has a
2 2 2 4
greenhouse gas intensity 21 times that of CO2 and is associated with anaerobic decomposition of biomass. Ssubstantial amounts of methane are also produced by
ruminants (cattle and sheep) during foregut digestion hence adding to net greenhouse gas emissions of biofuel derived from animal sources. ‘2008 National
Greenhouse Accounts (NGA) Factors’, Australian Government Department of Climate Change, accessed at
http://www.climatechange.gov.au/workbook/pubs/workbook-feb2008.pdf, February, 2008.
17‘Australian Commodity Statistics 2007’, Australian Bureau of Agricultural and Resource Economics, accessed at
food prices.19 Rising food prices disproportionally affect the world’s poor for whom the cost of food is a
larger proportion of income. For these people the consumption of meat is already financially prohibitive,
hence it is socially responsible to focus dedicated bioenergy activities towards grazing lands (as opposed
to crop lands) unless management models can be found that produce biomass for bioenergy while
protecting food crop output. The range of biomass resources is discussed in further detail in Section 3.
In Australia greenhouse emissions reporting will become mandatory for approximately 700 medium to
large companies under the National Greenhouse and Energy Reporting Act, set to come into effect on
1 July 2008. Reporting thresholds start at 125,000 tonnes of CO2e, but will decrease down to 50,000
tonnes of CO2e by 2010-11, meaning that even more companies will be required to report.22 The Act also
establishes a Greenhouse and Energy Data Officer, and it is likely that reporting on Scope 1 and 2
emissions will be mandatory, with non-compliance becoming a civil offence for chief executive officers.23
The main intent of mandatory reporting is to support emissions trading in Australia. While the final shape
of a national emissions trading scheme is yet to be decided, emissions trading is likely to commence in
2010-11. The clear signal of demand under this mandatory scheme will be given by the mid-term target at
2020. A modest target, for example, a return to 108 per cent of 1990 emission levels, will result in a low
carbon price. A more robust target, for example, a 20 per cent reduction (1990 levels) in emissions by
2020 will result in a higher price.
Previous modelling for an electricity sector emissions trading scheme in Australia estimated that trading
would start between $6 and $12 per tonne of CO2e, and steadily increase to between $17 and $31 per
tonne of CO2e at 2020.24 However, recently announced pre-trades for an Australian emissions trading
scheme of $19 per tonne of CO2e suggest a higher a price.25
19 Prior to the advent of biofuels agriculture has experienced a gradual decrease in terms of trade due to increases in food production outstripping population growth,
Mullen, J, 2007, ‘The Importance of Productivity Growth in Australian Agriculture’, Connections, accessed at
http://www.agrifood.info/connections/2007/Mullen(1).pdf, February, 2008.
20 WRI and WBCSD, 2004, ‘The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)’, World Resources Institute and
chemical production and other industrial process emissions. Scope 2: Electricity Indirect Emissions – emissions that are created from electricity generation
according to the amount of electricity usage by the company. Scope 3: Other Indirect Emissions – an optional reporting category for all other indirect greenhouse
emissions that occur as a consequence of company activities; including extraction and production of purchased materials, emissions from product use, outsourced
activities, contractor vehicles, employee travel and waste disposal.
22 AGO, 2007, ‘National Greenhouse and Energy Reporting Act 2007 - Fact Sheet’, Australian Greenhouse Office, Canberra, accessed at
This compares to trades in NGACs (NSW Greenhouse Gas Abatement Certificate) which traded between
$12 and $14 per tonne of CO2e prior to the scheme collapse (caused in some part by uncertainty
regarding integration of NGACs with a national scheme.26
Other comparisons include current trades of VERs through the Australian Climate Exchange which has
sold Greenhouse FriendlyTM VERs at $8.75.27 International trades in carbon are much higher. For
example the Chicago Climate Futures Exchange which trades in Certified Emission Reductions (CERs)
under the CDM mechanism of the Kyoto Protocol report a December 08 futures price for of US$25.30 per
tonne,28 and December 08 prices on the European Carbon Exchange were €22.60 per tonne.29
It is highlighted that the interim ‘2020’ emission reduction targets will be the first solid indication of the
likely price for greenhouse gas abatement in Australia. This information should be available towards the
end of 2008. Until that time, a range of $20 to $30 per tonne of CO2e seems appropriate.
26 Smith, R, 2007, ‘160 Million Light Years’, Greenhouse 2007 Proceedings, accessed at http://www.greenhouse2007.com/downloads/papers/071005_Smith.pdf,
April 2008.
27 Australian Climate Exchange, undated, ‘Home Page’ accessed at http://www.climateexchange.com.au, December 2007.
28 Chicago Climate Futures Exchange, undated, ‘Home Page’, accessed at http://www.ccfe.com/, December 2007
29 European Climate Exchange, undated, ‘Home Page’ accessed at http://www.europeanclimateexchange.com, December 2007.
3 BIOMASS RESOURCES
Biomass resources have varying ratios of distinct molecular structures which interact with processing
technologies in different ways. Biomass technology must be tailored to the biomass type to achieve
optimum outcomes. This section shows the alignment between biomass structures and processing
conditions and also highlights some of the features of biomass resources that have an impact on the
appropriateness and sustainability of their use for bioenergy applications.30
At a fundamental level, biomass is composed mainly of water insoluble carbohydrates (lignocellulose) with
the remainder as water soluble carbohydrates (sugars, starch and proteins)31 and hydrocarbons (lipids -
fats and oils).
Hydrocarbons contain mainly carbon and hydrogen, have a high energy density32 and are used for energy
storage by biological organisms where weight and volume are critical. Carbohydrates also contain carbon
and hydrogen, but have approximately one atom of oxygen for each atom of carbon in the structure.
Oxygen reduces the energy density of carbohydrates compared to hydrocarbons, but has other valuable
biological outcomes such as making the molecule water soluble (proteins, sugars and starch) so that it can
be easily transported within the organism, or aiding in the formation of polymers for structural roles
(lignocellulose).
Humans are only able to successfully digest soluble carbohydrates and lipids hence lignocellulose is not a
direct human food. Animals are able to maintain the structural integrity of amino acids during digestion
and hence use food protein for their own growth and development. This means that if protein can be
separated from other biomass components it can often have more value as an animal (including human)
feed where the nitrogen and sulphur are an asset rather than a pollutant.
The energy density and physical properties of the biomass are critical factors for bioenergy feedstock
considerations and need to be understood in order to match a feedstock and processing technology.
Section 4 of this report identifies six generic biomass processing technologies for the development of
bioenergy and material products. The capacity of these generic biomass processing technologies to
process the different fundamental biomolecular types is shown below in Table 3.
30 The shear scale of biomass supply required to make a major difference to societal greenhouse gas emissions means that failure to address the issues of potential
competition with food production, as well as potential impacts on soils, water quality and biodiversity, may lead to dysfunctional outcomes.
31 Proteins are only carbohydrates from a broad perspective, they contain Nitrogen and Sulfur in addition to Carbon, Hydrogen and Oxygen which is a problem for
combustion applications where these become pollutants. Proteins are more complex chemically than the repeating sugar monomers of the other carbohydrates.
Proteins are essential for the growth of biological organisms and therefore usually have more value as a feed than as bioenergy.
32 The long carbon chains in fat and oils are similar in structure to the hydrocarbons in diesel fuel and can be easily converted to biodiesel via transesterification.
Table 3 – Primary processing technologies and the ability to process different biomolecules
Direct Combustion 9 9
Oil Extraction 9
Pyrolysis 9 9 9 9
Gasification 9 9 9 9
Some of the important features of different biomass resources are presented on the following pages.
Broad distinction is drawn between crops which contain extractable non-lignocellulosic value, bulk
lignocellulosic crops and biomass wastes and residues.
Agricultural processing normally consists of selectively removing the grain or stem sugars for food and
using the remaining lignocellulosic residues as animal fodder or mulch. Residues can be directly
combusted for bioenergy (heat and power). The starch and sugars can be used as a bioethanol feedstock
when economically viable, but can also be used for butanol, methane and hydrogen production through
biological processing options. If the price of oil is high, energy use can affect the availability of grains and
sugar and raise the price of food.
33 Annual crops generally survive for a single growing season and must be replanted, perennials live for many seasons and may undergo multiple harvests.
Perennials generally have deeper and more established roots and so are better able to access soil moisture and protect against dry land salinity. Perennials also
tend to have a larger above and below ground standing biomass stock and therefore store more carbon in the landscape.
The plant body (lignocellulose), which is traditionally used as mulch or fodder,34 can also be combusted for
heat and power. The plant oils can be used for higher value bioenergy applications, especially as a diesel
replacement. Australian experience has shown that competition for feedstock is an extremely important
factor in the economics of biodiesel production, and in recent times this has had a serious negative impact
on the viability of biodiesel manufacture.
Oil tree crops with lower inherent food values can be a resource for bioenergy, and as perennials provide
additional soil, water and carbon sink benefits. Non-food crops will also not display spikes in value
associated with food supply and demand issues. Poisonous oil producing species such as Jatropha can
be useful for bioenergy and are often promoted as not competing with food crops.35 There are concerns
however that such species can display many properties associated with weeds and become subject to
bans in order to limit infestation risk.
34 These often have a high nitrogen content which requires stock management.
35 Claims such as these should be taken with caution, these crops still require land and if that land is cropping land then indirect competition still exists.
Biomass of this type can be used as bioenergy feedstock when the economics are viable. Fast growing
reeds and canes (such as Arundo donax, elephant grasses) are examples of grassy crops that can make
good use of high water and nutrient availability for increased biomass productivity.36
The productivity of tree crops may be low until a closed canopy is formed, which can be brought forward
with high planting density and one or more thinning harvests to enhance later stage growth.39 In regions of
low rainfall it is unlikely that timber or woody plants would reach milling standard. In this case the whole
plant biomass may be used for bioenergy and therefore present opportunities for streamlined harvesting
techniques that may significantly reduce costs.
36 Hence they are often considered potential weeds of inland waterways. These materials may be harvested and regrown from rhizomes (special underground
roots), with the harvested biomass sometimes having value as structural materials in addition to their value as lignocellulosic bioenergy feedstocks.
37 In reality monocultures are often multispecies with an herbaceous understorey.
38 Acacias do not have the high oil content of eucalypt species; they are able to form symbiotic relationships with nodulating root bacteria that fix nitrogen and hence
stabilise soils, build soil carbon, reduce eutrophication and soil emissions, while protecting against dry land
salinity. These properties help to build resilience to climate change via transport corridors for native
species. As bioenergy processing technologies such as pyrolysis and gasification are relatively insensitive
to the material and bio-toxin qualities of lignocellulosic woody biomass sources it is possible for the system
to remain robust in terms of energy production despite large changes in species composition as a result of
climate based habitat migration.
While biomass from existing native forest is excluded by legislation from dedicated bioenergy use in many
states, the development of ‘restoration plantations’ on private lands are allowable and strategically
attractive propositions if economic.
A key feature for bioenergy use of lignocellulosic tree based biomass is that the biomass is accumulated
over several years and is then available to harvest independently of growing seasons with minimal impact
on system productivity.40 This effectively shields the bioenergy feedstock supply from annual and
seasonal variation, allowing well planned and integrated bioenergy processing facilities that maximise
plant capacity and capital investment.
40 This is in relation to seasonal or annual crops which typically lose value if not harvested within a window of weeks.
41 The non-recycling of nutrients within our current food production/consumption systems is a massive scale failure of systems design and places reliance on
increasingly depleted phosphate reserves for continued food production.
42 Current best practice for municipal green waste is composting to avoid the methane emissions and other environmental impacts associated with landfilling.
43 This is often the bulk of the plant biomass.
Some degree of sorting and pre-processing may be required depending on the waste stream at a
particular site. Care must be taken to consider the impact of contaminants (chemically treated timbers,
metal fixtures, plastics, and batteries), their behaviour during processing and whether they finally report to
emission and residue streams or to products.
Thermal processing can in principal deal with all forms of green and organic waste. Other technologies,
such as cellulosic fermentation for alcohols, may be suitable for clean cropping residues such as wheat
stubble or sugarcane bagasse while anaerobic digestion is well suited to wastes with high moisture,
soluble sugar and protein contents such as putrescible and sewage wastes and may benefit from blended
streams of these wastes in terms of both performance and reliability of feedstock supply.
Animal manures (including human) and bedding may also be used as a bioenergy feedstock. The high
water and protein content of some wastes (dairy and piggery) makes them ideal candidates for anaerobic
digestion, while some of the drier wastes with a higher lignocellulosic content (for example chicken litter
containing sawdust or wood shavings) may be more suited to pyrolysis. In these cases, the biosolids and
char respectively should be recycled back to agricultural lands for conservation of nutrients.
3.5 Productivity
A highly productive and scaleable bioenergy industry will have to make full use of biomass resources and
constituents to recover maximum value. This overview highlights that lignocellulose is the most common
and highest volume constituent of biomass, as shown in Table 4 below. Therefore thermal processing,
and cellulose fermentation once proven, will underpin the bioenergy world of the future, with specific
processes (digestion, oil extraction and fermentation) being used as a primary processing treatment for
biomass sources with significant extractable non-lignocellulosic values.
44The tallow is dewatered for biodiesel production. It has long chain saturated fatty acids and to meet fuel standards it must be either blended or cracked.
Grassy Crops 9
Multispecies Native
9
Assemblages
The key business challenge for potential bioenergy projects is demonstrating the profitability of bioenergy
production when compared to other land uses within a complete life cycle analysis. This requires lowering
the costs of production and transport. An important factor here is biomass productivity, that is the tonnes
of biomass grown per hectare per year and the energy/cost inputs to sustain that level of productivity.
Species selection is an important factor in productivity, however it is important to remember that plants are
governed by natural laws. There is no magical plant (Genetically Modified Organisms (GMO) included)
that has high productivity without the basic inputs of nutrient, water and sunshine. These physicochemical
inputs govern much of productivity, while species selection plays a role in disease and insect resistance,
the ability to develop symbiotic relationships with soil microbes, and the partitioning of biomass among the
roots, stems, leaves and reproductive organs. Some mechanisms for increasing productivity, such as
using mined phosphate resources, may be unsustainable in the longer term. High growth strategies may
be unsustainable in terms of soil degradation, excessive water draw, and eutrification from high fertiliser
usages.
As a general guide, abundant woody biomass production systems yield around 5-15 dry tonnes per
hectare per annum, when averaged over growing and harvesting cycles. Many higher productivity systems
have been demonstrated, such as rapid growing grasses, with annual yields as high as 50 dry tonnes per
hectare. However these systems require appropriate land and climate resources to support high growth
rates.
Productivity defines the land footprint supporting a bioenergy project. For instance, a facility processing
500,000 green tonnes of biomass each year would require some 25,000 hectares (250 square kilometres)
of land to produce the biomass, assuming an average annual productivity of 10 dry tonnes per hectare
and an average biomass moisture content of 50 per cent.
Biomass productivity also affects the costs of harvesting, transport and other logistics. The great
advantage of biomass (ubiquitousness) is also one of its key disadvantages, in that is costly to aggregate
in central processing facilities. Another perspective on this is that the level of productivity in the above
example could generate as much as 15 million green tonnes annually within a transport distance of
50 kilometres from a processing hub. Concentrated biomass production assists in achieving economies of
scale at processing plants.46
25
Pulpwood
Bioenergy
20 Oil Mallee
Saltbush Fodder
Productivity (Dry t/Ha/yr
Habitat
15
10
0
300 350 400 450 500 550 600 650 700
Annual Rainfall (mm)
Rainfall is a fundamental driver of productivity, as shown in a South Australian study (see Figure 3
above), where productivities on a dry weight basis ranged from 5 to 20 tonnes per hectare depending
on biomass groupings and rainfall.
− promote biomass species and eco-systems that draw the least on constrained nutrient
and water resources and protect or restore biodiversity
46This strategy underpins much of existing softwood and pulpwood plantations of Victoria and other states.
47Crucible Carbon modelling based on the data in T.Hobbs et al ”Woody Biomass Productivity and Potential Biomass Industries in the Upper south East”, 2006,
FloraSearch, SA Department of Water, Land.and Biodiversity Conservation, CRC Plant-based Management of Dryland Salinity. This data has good applicability to
western Victoria.
Green
n/a n/a n/a n/a n/a Medium – high
Waste
Animal
n/a n/a n/a n/a n/a Low
Residues/Waste
From this first cut analysis, lingo-cellulosic biomass produced in multi-species native assemblages has the
greatest strategic attraction for feedstocks to the bioenergy industry of the future, assuming ecological
sustainability shapes society’s responses to climate change.
48 Carbon Store is the ability for the particular biomass source to store carbon in the landscape. This is divided into above ground (plant material) and below ground
processing site. High input crops have additional energy burdens due to fertiliser and herbicide/pesticide use.
53 Data from ‘Land Use – Land Use in Victoria’, Australian Government Australian Natural Resource Atlas, accessed at
Biomass is not a limitless opportunity. Victorian landscapes are highly utilised, with the main uses being, in
similar proportions, livestock grazing, dry land agriculture, forestry and conservation.54 As carbon trading
is introduced and the carbon price increases to reflect public commitment to effective abatement
measures, we may see significant shifts in land practices.
A shift over time to bioenergy from lignocellulosics will inevitably lead to innovation in farming methods for
maximum overall value capture from land assets and a change in the comparative economics of existing
farming methods. Bioenergy from lignocellulosics is seen as an opportunity to profitably underpin the
regeneration of biodiversity and ecosystem function in significant tracts of cleared and degraded lands.
Forestry, especially multispecies native assemblages, is an ideal platform for low input, stable, bulk
production of biomass and is likely to expand as the potential of thermal processing and fermentation of
lignocellulosics is realised.55
Dry land agriculture and the common wheat/sheep rotations may change to wheat/biomass rotations with
a mixture of alley farming and residue recovery. Livestock grazing may diversify into lignocellulose
biomass, as production becomes a more competitive use of marginal lands. Meat and sheep production in
areas of low pasture quality may shift to open forestry and native animal farming.56
Given the limits on Victorian land, the emergence of large scale biomass production for bioenergy will
need to be implemented in ways that complement other forms of land use.
54 This is a different profile to other mainland states, where livestock grazing is typically the predominant land use. Society has already made the choice to set aside
intensity and energy efficiency) as the most flexible platform will probably be needed to facilitate significant breakthroughs. Fermentation of cellulose is at the pilot
demonstration stage and may become commercialised in the reasonably short term.
56 There no methane emissions from kangaroos!
There are six generic biomass processing technologies based on direct combustion (for power), anaerobic
digestion (for methane rich gas), fermentation (of sugars for alcohols), oil exaction (for biodiesel), pyrolysis
(for biochar, gas and oils) and gasification (for carbon monoxide (CO) and hydrogen (H2) rich syngas).
These technologies can then be followed by an array of secondary treatments (stabilisation, dewatering,
upgrading, refining) depending on specific final products.
The versatility of biomass processing technologies to produce energy and materials in heat, gas, liquids
and solid forms is highlighted in Table 6 below. Each technology is discussed further in this section with
additional background information in the footnotes provided.
Direct Combustion 9
Anaerobic Digestion 9
Fermentation 9
Oil Extraction 9
Pyrolysis 9 9 9 9
Gasification 9 9 9
The selection of processing technologies needs to be aligned to the nature and structure of the biomass
feedstocks and the desired project outputs. From the above table, it can be seen that direct combustion or
gasification of biomass are appropriate when heat and power are required. Anaerobic digestion,
fermentation and oil extraction are suitable when specific biomasses are available that have easily
extractable oils and sugars or high water contents. Only the thermal processing of biomass by pyrolysis
can provide the platform for all of the above forms of product.
Many thermal technologies require the water content of biomass to be low (<15 per cent) for proper
operation. For these technologies the energy cost of drying can represent a significant reduction in
process efficiency.
57 Gasses from different processes are not directly comparable – Anaerobic digestion produces mainly methane (CH4) and some Hydrogen (H2) roughly equivalent
to Natural Gas (~50GJ/t); Pyrolysis gas is weak by comparison and a mixture (in descending concentration) of CO2, CO, CH4, C2H6, C3H8 (~6GJ/t); Gasifier gas is a
mixture (in descending concentration) of CO2, CO, H2, CH4 (~16-18GJ/t). The energy content of Pyrolysis and Gasifier gas assumes that the processes are oxygen
rather than air fed.
58 Fermentation usually yields Ethanol (C H OH – 31.1GJ/t) or Butanol (C H OH – 43GJ/t); Oil extraction produces hydrocarbon methyl esters C
2 5 4 7 15-18H31-33CO2CH3
(35-43GJ/t); Pyrolysis oil is a complex mixture of aromatic and oxygenated hydrocarbons (17-20GJ/t); Gasification does not produce liquids directly, but Fischer-
Tropsch liquids may be synthesised from syngas and are ideal for liquid transport fuel applications (40-45GJ/t).
The direct combustion of woody biomass for power production is currently the highest volume bioenergy
market worldwide. Biomass may be the sole fuel for heat and power generation or may be blended with
coal in a process known as co-firing.60 The residues from biomass combustion are essentially ash, which
can be process wastes or better utilised as soil conditioners to close nutrient cycles. The key features of
biomass combustion are summarised in the table below.
Combustion is designed to capture the calorific value of biomass only. As biomass resources become
more constrained, with increasing demand for renewable energy, they can be expected to be directed
more to applications that capture additional value from their inherent material qualities.
Combustion of biomass for process heat or electricity production may also be conducted indirectly via the
combustion of pre-processed biomass products such as compressed or torrefied wood pellets, pyrolysis oil
and pyrolysis char.
59 Unprocessed, newly harvested and partially dried biomass is suitable for direct combustion applications; as with fossil fuels, only refined bioenergy fuels (liquids
and larger production units. The opportunities for co-firing are limited (generally less than 5per cent of total fuel) without resorting to less efficient moving grate based
systems or some degree of biomass pre-processing to biogas, oil or char.
61 Co-firing with coal allows for greater efficiency of combustion due to larger scale infrastructure but there is usually a maximum limit of 5per cent biomass in the fuel
blend.
The principle advantage of the indirect combustion route is the transportability of the intermediate products
which have a lower bulk density than green biomass, allowing a greater area for biomass sourcing.
Figure 5 – One of the largest heat and power plants is the Alholmens Kraft facility in Finland, which generates 560
megawatts thermal (MWth) and 240 megawatts electrical (MWe)62 from woody biomass63
Anaerobic digestion is conducted by prokaryotic microbes (Eubacteria and Archaea) that evolved their
metabolic pathways prior to the development of an oxygen rich atmosphere. Prokaryotes have the
necessary enzymes to catalyse a range of organic polymer decomposition reactions at benign
temperatures and pressures. These reactions include the generation of hydrogen (H2) and methane (CH4)
from biomass.
Anaerobic digestion for methane production is mainly used as a waste processing technique for biomass
with high nitrogen and low lignin content.64 If untreated, the biological breakdown of this waste will
produce CO2 and CH4. Deliberate anaerobic digestion is a way of ensuring that CH4 emissions are
controlled and captured while recovering energy from the biomass. This can reduce greenhouse gas
emissions from water treatment plants and landfill. Anaerobic digestion residues can be returned to the
landscape to help close nutrient cycles and be a net benefit where land is used for food production.
Digesters are typically run at 35 degrees Celsius to 60 degrees Celsius with higher temperatures giving a
faster reaction rate but with increased heating costs. They may be operated under continuous, plug or
batch conditions with higher production coming from continuous or plug flow.
Digesters may often accept waste from a number of sources and this variety of inputs may aid in digester
function through better nutrition of the microbes. Rapid and large scale changes in the composition of the
feed may reduce digester performance. There are a number of highly automated commercial designs
available.
62 MWth is thermal heating power generated while MWe is electrical power generated. 1 MW = 106 watts.
63 Picture sourced from http://www.tekes.fi/opet/pdf/Alholma_2002.pdf.
64
Anaerobic digestion is not well suited to woody biomass.
Generally human and animal wastes with high nutrient and water content
Feedstock
biomass with low lignin content. Limited but sustainable feedstock supply
An example of commercial anaerobic digestion at the Carrum sewage treatment plant of Melbourne Water
is shown in Figure 3 below. This facility generates 3.4 megawatts (MW) of electricity67 and the digesters
are partly underground to improve thermal regulation.
Figure 6 – Anaerobic digestion at the Carrum sewage treatment plant of Melbourne Water68
4.3 Fermentation
Biomass fermentation of glucose or fructose sugar rich feedstocks produces ethanol. This is the most
commercially established of the liquid biofuel technologies. Ethanol is usually blended with standard petrol
or diesel. Blending requires anhydrous ethanol in order to mix effectively with hydrocarbons without water
65‘Microgy Case Study: Huckabay Ridge’, Environmental Power, accessed at http://www.environmentalpower.com/companies/microgy/cs-huckabay.php4, February,
2008.
66 Actual feed water content is highly variable from 80 to 99 per cent so data is presented as dry tonnes.
67‘The Green Light’, The Source, 2002, accessed at http://library.melbournewater.com.au/content/publications/the_source/the_source_issue_21.pdf, February, 2008.
68 Picture sourced from http://www.melbournewater.com.au/content/publications/fact_sheets/sewerage/eastern_treatment_plant.asp.
deposits. Dehydration of ethanol and growing high productivity crops can be very energy intensive
processes, which significantly reduce the net energy returns for bio-ethanol,69 although the recent
development of molecular sieves has improved the situation.
Technologies are under active development for conversion of cellulosic materials70 to sugars so that they
can be used as a feedstock source. This process will be far less feedstock constrained because of the
abundance of lingocellulosic biomass. The production of Butanol rather than Ethanol via fermentation is
also under development.
There is considerable public debate about the use of first generation biofuels such as bioethanol and calls
have been made for a moratorium on expansion of production capacity. Debate has focussed on the
diversion of staple food crops to biofuel use in the first world and the corresponding increase in food prices
for the worlds poor.71 Exaggerated Greenhouse reduction claims (since energy intensity is high)72 have
also been a point of debate and improvements over the use of fossil based fuels for some cases may be
negligible. The high profile US corn based bio-ethanol industry is driven more by energy security than
climate change. Brazil is a global leader in bioethanol use based on sugar cane feed.
Table 9 – Fermentation technology summary
Yeast or bacteria use sugars for metabolic energy during their growth, producing
Process
alcohols in the process
Mainly ethanol, but significant potential for butanol, acetone,73 isopropanol and
Products
hydrogen; distillers grain is the standard by-product
Sugars or starch rich biomass can be used directly. Low probability of large scale
Feedstock sustainable feedstock supply for direct sugar/starch feed, high possibility of
sustainable feedstock supply from next generation cellulosic sources
Carbon balance of ethanol production is contentious with debate around the inclusion
or exclusion of burdens from co-products such as distillers grains. Significant
emissions via land clearing, machinery and fertiliser use are generated during the
Carbon Balance
growth of feedstock, purification of ethanol to anhydrous state is energy intensive and
distillers grains used as a livestock feed supplement incurs a burden from livestock
emissions
69 Energy returns for sugar cane are reasonable and much higher than for corn, which can often generate no more energy than used in its production.
70 Sugars can also be derived from the depolymerisation of cellulose using enzymatic, thermal or acid hydrolysis allowing use of wood and agricultural residues.
71 ‘UN adviser calls for halt on biofuels investment’ ABC News, accessed at http://www.abc.net.au/news/stories/2008/05/03/2234549.htm, May, 2008
72 Greenhouse gas reduction claims are complicated by agricultural soil emissions during growth and the use of co-products such as distillers grains as animal
feeds. Searchinger, T.D., 2008, ‘Response to New Fuels Alliance and DOE Analysts Criticisms of Science Studies of Greenhouse Gasses and Biofuels’,
Environmental and Energy Study Institute, accessed at http://www.eesi.org/programs/agriculture/tsearchinger_iluc_response_022908.pdf, February, 2008.
73 Acetone-butanol from sugar/starch biomass was an established commercial technology before being replaced by petrochemicals. Butanol has benefits over
ethanol as a fuel – higher energy content, not water soluble, blends with standard petrol at any concentration for use in petrol engines.
Figure 7 – The world’s largest fuel ethanol plant, Jilin, China, processes close to 2 M tonnes of corn per year to
produce some 2.3 Ml per day ethanol74
Oil can be extracted directly from biomass by mechanical separation or solvent extraction. Mechanical
separation can extract up to 90 per cent of available oils (typically 70-80 per cent). This is the preferred
technology for the extraction of high value food oils75 and for processing high oil content feedstocks.
Solvent extraction is mainly used with lower oil yielding biomasses or following mechanical separation.
The oil is recovered by evaporating the solvent, which is then recondensed and reused. Solvent losses are
usually small76 and form a negligible cost when compared to the cost of the biomass feedstock.
Vegetable oils and animal fats are also available in concentrated form as recycled cooking oils and tallow.
While plant oils can directly be used in diesel engines, there are storage and temperature related viscosity
issues. Transesterification77 or hydrogenation, the process of converting oils to biodiesel, alters the
viscosity so that transport fuel standards can be met. The physical and chemical properties of the
resultant biodiesel is dependent on both the qualities of the oil feedstock and the processing technology.
such as photochemical smog; ‘Substance Fact Sheet n-Hexane’, Australian Government Department of Environment, Water, Heritage and the Arts, accessed at
http://www.npi.gov.au/database/substance-info/profiles/47.html, February, 2008.
77 Transesterification typically react the triglyceride (oil) with methanol to separate the fatty acid chains from the glycerol backbone. Either an alkali base or
supercritical fluid is used to ensure that the oil and methanol contact properly for the process.
Oils or fats within biomass are removed mechanically or with solvents and
Process
transesterification produces biodiesel
Oil rich plants (especially seed crops), waste cooking oil, fats/ tallow. Limited but
Feedstock sustainable feedstock supply from wastes with low probability of large scale sustainable
feedstock supply from oil seed crops
Established commercial technology; larger facilities operate up to 500 Ml per year and
Status more. The costs of oil extraction from high oil (30-50 per cent) feed stocks are around 8-18
cents per litre of oil produced
Capital Intensity $50-100 per annual tonne oilseed processed
Oil extraction and conversion to biodiesel is energy efficient as the product is easy to
Carbon Balance phase separate from water. Emissions are generated during feedstock growth via land
clearing, machinery and fertiliser use
The biodiesel industry in Australia is severely feedstock constrained, with the drought, food and export
competition greatly increasing costs of feed over recent years. Many facilities are operating well below
capacity and several have recently had to close. Australian biodiesel production is dominated by tallow
and waste oil processing; capacity is around 525 Ml per year (total annual Australian use is 14 gigalitres
(Gl) fossil diesel per year), although much of this has been mothballed due to uneconomic feedstock
prices.
4.5 Pyrolysis
Pyrolysis is thermal decomposition of organic material with no or limited oxygen. It can be applied in
principal to any forms of biomass. The main products of pyrolysis are gas, oil/tar liquids and char,79 with
flexibility to vary the amounts oil, gas and char. Slow pyrolysis increases char yields and fast (or ‘flash’)
pyrolysis increases the liquid fraction.
The energy contents of pyrolysis gas, oil and char are about 6, 18 and 36 GJ/tonne respectively. Pyrolysis
oil has about half the energy content of crude oil. There are well established commercial char making
facilities focused on high value metallurgical applications, using high quality biomass inputs, such as
eucalyptus chips, with capacities around 35,000 tonnes of char per annum. This high cost regime is not
generally scalable to the emerging bioenergy industry.
The pyrolysis of biomass for bioenergy is a relatively undeveloped technology although the pyrolysis of
coal is well established for the production of town gas. Existing commercial slow pyrolysis units for
biomass are based on kiln type technologies and produce only gas and char outputs. Fast pyrolysis
technologies take a number of different approaches such as fluidised beds, ablation and mixing with heat
distribution sources such as sand, but all require a small input particle size of less than 2mm and quench
the oil and char outputs together which causes difficulties with particulates in the oil. Hot filtration is being
investigated in an effort to reduce this as an issue.
Pyrolysis technologies using a wider range of lower cost biomass feeds, including woody crops and
wastes and residues, are under active development with several operating commercially. Reducing the
capital intensity and improving the energy efficiency of pyrolysis is important in facilitating technology
uptake.
Process Biomass is heated in the absence of oxygen and depolymerises to oil, gas and char in
varying proportions depending on heating rates and residence times
Relatively weak gas, complex pyrolytic oils (‘bio-crude oil’) and char. Pyrolysis oils and
char can be used directly for stationary power applications but do not currently meet
Products commercial fuel standards. Secondary upgrading and refining for higher quality
applications will progress rapidly. Char has energy content, but also markets will emerge
for char as a soil conditioner (see following page)
Feedstock Any reasonably dry biomass. Some examples of this technology class require small
particle size. High possibility of large scale sustainable feedstock supply
Status Several commercial pyrolysis plants, processing up to 66,000 tonnes per annum biomass
$50-250 per annual green (as received) tonne feed depending on plant design and layout
Capital Intensity
(a range of emerging process designs)
Carbon balance depends on what is done with the products of pyrolysis. If all products
Carbon Balance used for energy then balance is similar to that of direct combustion. If biochar is
sequestered in soils rather than combusted then the technology may be carbon negative
The largest flash pyrolysis plant (Dynamotive, West Lorne, Canada – see Figure 9 below) processes 200
tonnes per day (t/day) wood waste in a bubbling fluid bed to generate primarily fuel oil, while the largest
commercial slow pyrolysis plant (MTK, Japan) processes 100 t/day woodchips in a rotary kiln. Although oil
is an intrinsic product of pyrolysis (approximately one third of output), current commercial operations
remove the ‘oil’ fraction in a gaseous phase.
Biochar is a strategic opportunity in a carbon constrained world where significant soil degradation has
occurred through clearances and intensive agricultural practices, which themselves have contributed to
greenhouse emissions and climate change. In pyrolysis, the nutrients in biomass report to the char, so that
‘biochar’ provides a pathway for nutrient recycling back into soils.
Given the sustainability advantages of biochar in soils there is little doubt that there will be increasing
activities in this area.84 These benefits will act as an additional driver for higher volume and/or low capital
cost pyrolysis technologies.
Biochar is not yet a developed market and in the shorter term the selling price of biochar may be
underpinned by its energy value.
4.6 Gasification
Gasification is a process in which oxygen-deficient thermal decomposition of organic matter (coal, oil or
biomass) produces non-condensable fuel or synthesis gases. Gasification combines pyrolysis with partial
combustion to provide heat for the endothermic decomposition reactions.85 Unless the gas is combusted
directly for power, it is cooled, filtered and scrubbed to remove condensables and carry-over particles. The
syn-gas produced can be used in a variety of energy conversion devices (for example, internal combustion
engines, gas turbines and fuel cells) or converted to high value fuels and chemicals.86
Biomass gasifiers based on packed/moving bed configurations are limited to small scale operations,
typically less than 1 MWe. Fluidised bed gasifiers offer much higher throughput capacity and have
demonstrated commercial viability on a range of biomass sources. The largest biomass gasifier is 70 MWth
fed by around 200,000 tonnes per annum of forestry products.
Any reasonably dry biomass that can be ground to a small size; Gasification
of pyrolysis products often allows for greater feed flexibility and thermal
Feedstock
efficiency than direct biomass gasification. High possibility of large scale
sustainable feedstock supply
Capital Intensity $150-250 per green (as received) annual tonne depending on design
If all products are combusted then carbon balance is similar to that of direct
combustion. Syngas may be converted to synthetic fuels with a process
Carbon Balance
efficiency of approximately 50 per cent, or slightly more if waste heat is used
for combined power generation
84 As highlighted by the recent ‘International Agrichar Initiative Conference’, Terrigal, NSW, April 2007; accessed at www.iaiconference.org, February, 2008.
85 A well-designed gasifier will decompose high-molecular-weight organic compounds into low-molecular-weight, non-condensable compounds (tar cracking).
Charred organic matter participates in a series of endothermic reactions at temperatures above 800°C producing gaseous fuel constituents, i.e. CO, H2, and CH4.
86 These products include Hydrogen, Fischer-Tropsch Liquids and Ammonia.
The Battelle gasifer in Vermont, USA, as shown in Figure 8 above, processes 320 tonnes of woodchip per
day and generates 40MWth. One the world’s largest gasifiers, the Kymijärvi Power Plant at Lahti, Finland,88
generates 70 MWth. The biomass used contains 20 to 60 per cent water and includes bark, wood chips,
sawdust, wood waste, household and industrial waste, including old tyres and railway sleepers.
Established technologies other than Direct Combustion are significantly limited in scale through
dependence on specific and limited feedstocks. Technologies that provide high volume and value
opportunities are currently the most immature and are the most likely candidates for future innovation.
The analysis highlights the strategic attractiveness of thermal processing to solid, liquid and gas energy
products, while recognising that immediate term projects are likely to be limited in scale.
Early
Pyrolysis Large High Medium High Medium
Commercial
Early
Gasification Large Medium Medium Medium93 Medium
Commercial
advantage.
90 Energy efficiency is a measure of the amount of energy in the feedstock is retained in the products.
91 De-polymerisation of cellulose to sugars will allow access to a larger biomass pool, however, this technology is not commercially established.
92 This may be higher if technologies that generate sugar feedstocks from cellulose become mature.
93 The direct products of gasification are low, but this is the basis to a vast array of fuel and chemical products via synthesis reactions.
5 Maximum value capture from resources, with regenerative impacts on land, water and biodiversity
4 Sustainable production; no systemic degradation of ecosystems
3 Project based on adoption of best practices; minimum environmental harm
2 General industry standards applied to biomass growth and supply
1 Standards driven by compliance with legislation only
5 Very attractive proposition, creating a platform for business growth and proliferation
4 An attractive business opportunity with respect to its inputs, technology, cost structure and markets
3 The project is basically viable, without significant subsidies and with manageable risks
2 Unresolved significant risks around technology, feedstock supply and prices, products
1 Unviable project in terms of capital intensity, unproven technology, commercial risks
5 Government, community and public stakeholders have become advocates of the project
4 Positive support for the project from stakeholders
3 Acceptance of the project
2 Significant discontent with the project
1 Open hostility
Each of these factors is further broken down to critical sub-themes. Sustainable biomass supply is
influenced by land, water and biodiversity. Business viability is influenced by capital intensity, development
status of the technology, feedstock flexibility of the technology, feedstock flexibility, feedstock security,
product flexibility and markets for the products. The licence to operate has government, community and
general public dimensions. Definitions and grading scale descriptors are provided in Table 17 following.
Consideration 1 2 3 4 5
Ecologically Sustainable Biomass Supply
Sustained carbon sink,
Limited carbon sink,
Compliance with land use Industry standard carbon and Best practice carbon and soil increased soil fertility and
Land sustainable soil fertility and
change statutes soil management management microbial activity, sustainable
nutrient dynamics
nutrient dynamics
Sustainable water use budget Restorative water budget
Compliance with water use Industry standard water Best practice water use
Water (no significant change in soil, (returns soil, runoff and aquifer
statutes and markets budget budget
runoff or aquifer) to historical levels)
Continuous multispecies
Complies with endangered Best practice grazing, Multispecies native native assemblage under
species/habitats, introduced Industry standard agricultural cropping and silviculture assemblage with active historical disturbance regime
Biodiversity
species and routine species management species management for exclusion of introduced linking existing native habitats
agricultural practice legislation biodiversity species with active exclusion of
introduced species
Commercially and Technically Viable Business
High Capital Requirements, Medium Capital Low Capital Requirements,
Capital Requirements, $100 - Capital Requirements, $50 -
greater than $150 per annual Requirements, $75 - $100 per less than $50 per annual
Capital Intensity $150 per annual green (as $75 per annual green (as
green (as received) tonne annual green (as received) green (as received) tonne
received) tonne processed received) tonne processed
processed tonne processed processed
Commercially proven small
Technological/commercial risk Technological/commercial risk Early Commercialisation Commercially proven (at
Development scale opportunity
and small scale opportunity and large scale opportunity (limited numbers of scale, types of feed and
Status Demonstration (at least 1
R&D to proof of concept Pilot commercial operations) products of your project)
commercially operating plant)
Lignocellulosic biomass but
Lignocellulosic biomass as
Dependent on single species difficulties with non-
Feedstock Many species but constrained Broad species/residues but well as high impurity and
with limited climatic lignocellulosic impurities and
Flexibility soluble sugar or oil fraction only utilise cellulose fraction moisture content (green)
distribution energetically sensitive to
biomass
moisture content
Table 17 (contd…) - Grading Scale Descriptors for Bioenergy Project Sustainability Considerations
− changed land practices have positive impacts on above and below ground carbon stocks
− ground water management improvements from alley farming of woody crops
− no significant alterations to biodiversity
− capital intensity of the technology is high
− limited commercialisation of the technology, but feed successfully tested in an existing operation
− the process is able to accept all planned inputs but has lower efficiency for high moisture feed
− the company has secured long term supply arrangements with the main biomass producers
− the process produces secondary energy and materials products
− markets for pyrolysis oil based fuels may be large but are undeveloped
− strong state government support for renewable energy and regional development
− the community generally welcomes the business and employment opportunities
− the public debate is influenced by opposition to use of forest residues.
Land
5
Public Water
4
3
Community Biodiversity
2
Feedstock Security
The evaluation presented here is provided as a trigger to help highlight project weaknesses and
opportunities. It is not intended as decision making tool, rather a way to prompt consideration of critical
issues. If a project has a poor score it does not follow that the project should not be done. Identification of
risks and opportunities using the tool will help with project planning and the project should only not
proceed if innovative pathways cannot be developed to overcome issues.
For the illustrative case above, the project would be strengthened by both working to reduce the capital
intensity of the technology or establishing a partnership with an oil company willing and capable of
developing the market for bio-fuels so the return on the high capital investment is secured and maximised.
Biomass
Pre-Processing Residues
Thermal Processing Materials Processing
Combustion Residues Wood Products
Anaerobic Digestion
Oil Extraction Gasification Paper Products
Sugar/Starch Fermentation Pyrolysis
Cellulosic Fermentation
Oil
Gas
Char
Secondary Processing
Upgrading
Blending
Stabilisation
Synthetic Processes
Chemical Treatment
Biogas
Transport fuels
Chemicals Heat
Metallurgical Reductant Power
Agri-products
Activated Carbon
Figure 13 – Strategic platform for maximum value capture from bioenergy resources
A sustainability scorecard is of course no substitute for detailed analysis of the financials and all other
aspects of the business case. Weaknesses identified by the sustainability scorecard do not necessarily
mean a project should be abandoned, but rather that the issues should prompt fresh thinking, innovation
and better risk management responses.
Equally robust carbon accounting on a complete life cycle basis is needed to defend the environmental
credentials and greenhouse benefits of bioenergy projects.
6 CONCLUSIONS
The analysis conducted in this review highlights that the availability and sustainability of feedstock is a
critical consideration in the strategic development of bioenergy projects and is intimately linked with the
selection of biomass technologies for energy and materials.
Lignocellulosic biomass resources are by far the most significant in scale and are best placed to work
synergistically rather than competitively with existing biomass use such as food, materials, ecological
services and natural habitat. The use of longer rotation Multispecies Native Assemblages of woody
biomass grown on previously cleared grazing land represents the most significant opportunity for the
development of new large scale biomass resources that support biodiversity, environmental carbon stores
and ecosystem services with minimal impact on food resources.
The review has clarified that each processing technology class is suited to a specific range of constituent
biomass biochemistries. Thermal processing options are the most flexible of all the technology classes
and the best able to make complete use of strategic scale lignocellulosic biomass resources.
Processing technologies that produce multiple energy and material products with large scale markets are
most likely to meet societal needs and provide sustainable business opportunities. A carbon neutral future
will still require significant carbon based resources such as liquid transport fuels, metallurgical reductants
and organic chemicals so thermal processing technologies that address these multiple outputs are
preferred.
The pyrolysis technology platform is able to produce solid, liquid and gaseous fuel and material outputs
from lignocellulosic biomass and is therefore likely to be a core technology in a future carbon balanced
society. Pyrolysis derived biochar can act as a value adding carbon sequestration pathway providing the
opportunity for carbon negative bioenergy options.
A sustainable business case requires that maximum value is captured from the biomass resource. Those
biomass co-products that make use of the inherent material qualities of the resource typically capture
more of the value. Preprocessing for the extraction of wood, oils, protein and soluble sugars is therefore
encouraged if in economic proportions in the feedstock and should be seen as supporting the economic
case for bioenergy production as long as markets are of appropriate scale.
The development of specific bioenergy projects fundamentally requires securing a societal licence to
operate, incorporating environmental, technological, financial and social concerns. To aid in this end this
review presents a sustainability evaluation tool to assist in reviewing areas of concern. Once factors
outlined in the tool have been adequately addressed proposed projects would be expected to be
scrutinised by case specific technoeconomic modelling as a precursor to a prefeasibility study, Life Cycle
Assessment and a full feasibility assessment. Successful completion of each of these stages is important
to control development risk and maintain societal and investor confidence in bioenergy opportunities.