2.1

Second-Generation Requirements

In this chapter I will give you a general overview of first — and second-generation biofuels. First-generation biofuels are pressed and refined out of plants that grow on agricultural land. An example is corn. What are the requirements of “second — generation” biofuels?

1. The biofuel must be clean and renewable. Renewable means that we can grow it again tomorrow.

2. It must have a high energy content.

3. It must be a “drop-in fuel”. This means it must be an easy blend with other fuels, an engine should not be redesigned or modified, with no changes in component development or recertification of the engine.

4. It should not have any impact on safety, durability, reliability, or performance.

5. It must be sustainable — it should not have a negative impact on the environment.

The supply of fossil fuel-based energies like petrol, diesel, gas, and kerosene is limited, and will come to an end one day. The reason is that they are non­renewable sources of energy. However, with the help of biotechnology we will now start to enjoy the use of clean renewable biofuels, in short “second-generation biofuels” (also known as Biofuels 2.0 or Biofuels 2G). Second-generation biofuels are as important as the development of the Internet.

Biofuels are gaining increased public and scientific attention, driven by factors such as oil price spikes, the need for increased energy security, environmental catastrophes like the 2010 oil spill in the Gulf of Mexico, and concern over greenhouse gas emissions from fossil fuels. Last, but not least, the feedstock of biofuels is capable of absorbing carbon dioxide from the air.

Second Generation Biofuels and Biomass: Essential Guide for Investors, Scientists and Decision Makers, First Edition. Roland A. Jansen. r 2013 Wiley-VCH Verlag GmbH & Co. KGaA.

Published 2013 by Wiley-VCH Verlag GmbH & Co. KGaA.

2.2

An analysis of the research undertaken with Jatropha reveals the following research priorities:

• A world databank of Jatropha germplasm should be established.

• More data must be collected and centralized about the identification of provenances, data about drought resistance, desired growth characteristics, seed yield, oil content, and so on.

• Further research on medical properties of seed components for development of products is needed. I think that the University of Sichuan in Chengdu in China is the best in medical research with Jatropha.

• Economic analysis of the fertilizer value of the seedcake.

• Development of methods for detoxification of the seedcake.

• Socioeconomic studies on how Jatropha can aid development in local communities.

3.1.29

Cracking the Nut

Figure 3.2 shows a scheme of what happens if you crack the nut and press the seeds.

In addition to the biomass production from the seedcake there is also a con­siderable amount of biomass wood available from annual pruning. The combined economics of the oil and cake (husk, kernel, and shell combined) with the wood can transform the economics of Jatropha cultivation that has traditionally been centered on oil production, which represents only 30% of the energy products.

37.5% Shell

▼

30% Oil

Kernel + Husk + Shell = High Calorific Value Figure 3.2 Cracking the nut. Source: CPE — Mother Earth Business Plan.

3.2

The charges against palm oil are serious: environmental groups regard it as a danger not only to Asian wildlife, but also to the health of the planet. Between 1967 and 2000, the area under cultivation in Indonesia expanded from less than 2000 km2 to more than 30 000 km2. Deforestation in Indonesia for palm oil and illegal logging is so rapid that a report in 2007 by the United Nations Environment Programme (UNEP) said most of the country’s forest might be destroyed by 2022 (http://news. mongabay. com/2007/1127). Although the rate of forest loss has declined in Indonesia in the past decade, UNEP says the spread of palm oil plantations is one of the greatest threats to forests in Indonesia and Malaysia. Sometimes dark clouds from Indonesia’s burnt forests hang over Singapore.

In Sumatra and Borneo, palm oil expansion threatens elephants, tigers, and rhinos, as well as orangutans. Enormous amounts of carbon dioxide are released as forests and peatlands are destroyed. Deforestation makes Indonesia one of the world’s largest carbon dioxide emitters. On the bright side, it is true that palm oil has contributed to economic growth in the countries that produce it. This positive development has been tarnished in some cases by social conflict, such as when locals or indigenous groups have been evicted from their land to make room for plantations.

Such matters are increasingly difficult for buyers of palm oil to ignore. Even though it takes only 4% of the global total, Unilever is the world’s biggest buyer, making it an obvious target for activists. Kraft and General Mills, two big Amer­ican food companies, HSBC, a huge bank, and Cargill, an American agribusiness giant, have also come in for criticism. In 2010, Nestle, another food giant, was attacked in a sharp online advertisement that shows an office worker eating a finger of Kit Kat. The chocolate digit turns out to belong to an orangutan, with bloody consequences. See "Nestle Kit Kat palm oil crisis: Greenpeace uses Face — book, Youtube” (www. nowpublic. com).

These attacks are proving potent. Companies are changing their buying policies in response and paying more attention to the distant reaches of their supply

chains. The lessons may also reach far beyond palm oil. Following the 2010 oil spill in the Gulf of Mexico, companies’ environmental responsibilities have never been more public.

4.3.4

Women play an important role in farming, doing much of the labor involved in planting, weeding, harvesting, and mulching. SORESIN believes in the empow­erment of women and hires women to do the same jobs as men — everything from working the fields to operating heavy machinery. SORESIN also assures that their voices are represented in Community Committees to address their specific needs and concerns, requiring that women comprise at least 40% of the committees.

6.7.10

Outgrower Program

Right now, most non-timber products in the project areas are used for subsistence, primarily for household and medicinal purposes (particularly by those who cannot afford healthcare services). If they were more accessible to local farmers and the yield higher, these products could be sold in other markets.

Trees that already grow in the area are important trees economically, but largely grow only in the wild because it is too large of an investment for most local

farmers, with too long a yield time — one bag of seeds can cost more than a month’s salary — and because locals practice bush burning (which disturbs tree growth), trees can take up to 15 years to mature.

To assist local farmers in creating long-term sustainable livelihoods, SORESIN grows seedlings for these trees in our nursery, protected from wild fires and other elements, reducing time to maturity to about 2 years. The trees are then trans­planted on community property or any other parcel of land (not company land), at zero cost to the communities or individual farmers, providing an alternative or additional source of income for local farmers. This is an example of how SORESIN invests our own dollars to help make communities more productive and self­sustaining for years to come.

6.7.11

China is rapidly becoming a global colossus in renewable energy as it seeks to reduce its reliance on polluting fossil fuels, and establish itself as the top clean — power manufacturer and exporter. America, however, needs a more coordinated approach if it is to compete with China in clean-energy manufacturing and exports. A study published by the Harvard Kennedy School’s Belfer Center found that, unlike industrialized countries, China and most other major emerging economies coordinate and support energy research and development through government-owned enterprises. The study covered Brazil, China, India, Mexico, Russia, and South Africa. By some estimates, investments in renewable energy assets may total $2.3 trillion by 2020, yielding increased jobs and exports as well as reduced greenhouse gas emissions, for countries that harness green technology. On 7 December 2010, frustrated US Commerce Secretary Gary Locke told the first meeting of the task force that China pumps almost $12 billion monthly into its renewable-energy sector: "They’re doing this because they really want to be the world’s supplier of clean energy and they recognize this will support millions of jobs” ("China is green, US sees red,” Khaleej Times, 10 January 2011).

China’s rise in key sectors of the green energy business has been breathtaking. In 1999, China made around 1% of the photovoltaic cells put into solar panels to generate electricity — a decade later it is the world’s leading producer, with a 40% share of the market.

China’s market share of solar panels in the USA is about 50% with a market value of around $3 billion. All these panes are heavily subsidized and are invading the USA at rock bottom prices. But the Commerce Department plans to impose a 31% duty on solar panels produced by more than 60 Chinese firms, including Suntech Power Holdings Co., the world’s largest solar panel maker. The nation is also on course to produce nearly half the world’s wind power turbines, selling them at prices sig­nificantly lower than those of manufacturers in the West and preparing for large — scale exports. If China becomes a green power export juggernaut, it will consolidate its lead in global high-technology sales, leaving the United States well behind.

Leadership in clean-energy manufacturing is shifting from Europe and the United States to Asia. Within the G-20 group of leading economies, China, India, Japan, and South Korea are projected to account for approximately 40% of clean energy investments in 2020, leaving the United States and Europe trailing.

A recent survey by Bloomberg, in collaboration with the UN Environment Programme, found that China became the largest recipient of renewable energy financing in 2009, attracting more than 20% of the $162 billion invested worldwide in wind, solar, biomass, small hydro, biofuel, and marine energy. While such investment in China grew by 53%, it shrank in the United States by 45%. The United States exported at least $2 billion of solar, wind, biomass, geothermal, hydropower, and other renewable energy products in 2009 — almost double the sum in 2007. However, it ran a trade deficit in the combined sectors, with imports of wind power equipment alone amounting to more than $3.6 billion.

12.4 Inclusive Growth

Reasons given for the West’s decline and China’s rise are a new source of friction in Sino-US relations. Both Washington and Beijing consider the clean technology sector crucial to energy security and economic growth. However, renewable energy companies in the United States struggle to find investments. They have cut jobs and, in some cases, moved operations to China.

China is on top or in the top five of virtually all statistics available on green energy investments, green energy power installed, and so on. In 2010, China, invested $54.4 billion in clean energy and the United States $34 billion. China had installed 103.36 GW of clean power and the United States 57.99 GW. China is also a major investor in hydropower infrastructure (e. g., the Three Gorges Dam). In addition, it plans to reduce carbon intensity of economic output by more than 40% by 2020. China has overtaken the United States as the world’s biggest emitter of carbon dioxide — the main global warming gas from human activity.

Thus, Chinese officials argue that they should be praised, not punished, for helping to curb greenhouse emissions at home and combat climate change abroad by selling low-cost clean energy products.

12.3

The airline industry’s reliance on fossil fuels means it is affected by a range of fluctuations, such as the changing price of crude oil and supply/demand pro­blems. The largest cost item of an airline is not the airplane — it is the kerosene. Sustainable biokerosenes could be an attractive alternative as their production is not limited to locations where fossil fuels can be drilled, enabling a more diverse geographic supply. In theory, biofuel feedstock can be grown in many places around the world, where the aviation industry needs it. While, as for petroleum, there will be major producers of biofuel feedstock and it will likely be transported to where it can best be used, it is also likely that local, smaller-scale supply chains will be established.

15.4

Lifecycle of Carbon Dioxide

When we analyze the lifecycle of carbon dioxide emissions in the present airline industry we see that carbon dioxide is emitted at every level of the transport chain, starting from oil wells, transport, refineries, distribution until the airplanes burn the fossil fuel kerosene in the air.

When we follow the lifecycle chain of carbon dioxide in biofuels we start at the plantations, where 40 tonnes of carbon dioxide per hectare per year can be absorbed on a Jatropha plantation. The harvest is performed manually, so also here no carbon dioxide is emitted. The crushing process and transport do cause carbon dioxide emissions, but burning the biofuel in jet engines lowers the emissions by 60% so that the greenhouse gas emission balance is positive.

Second-generation biofuels use a sustainable resource to produce a fuel that can replace traditional jet fuel, while not consuming valuable food, land, and water resources. They can be mass-grown in locations almost worldwide, including in deserts and saltwater. They have the potential to deliver large quantities of greener fuel for aviation at more stable prices.

15,5 Green Aviation

Table 13.1 in Chapter 13 shows that kerosene consumption in Asia has now surpassed that in the United States.

15.5

J. curcas is a drought-resistant species, which grows around the equator in the tropics and it is has often been used as a "living fence” for hundreds of years. Since animals are in many ways often more intelligent than human beings, they are able to "sense” the toxicity of the plant and they do not touch it. Many parts of the plants are used in making traditional medicine.

Jatropha can grow from a small shrub to a large tree in 5 years. When the bush is not trimmed and cultivated regularly, the wild tree can reach a height of up to 4-5 meters. The tree’s height is affected by fluctuations in rainfall, height, tempera­ture, and light. In China, many Jatropha plantations are planted in steep mountain areas, unfit for other forms of agriculture. Normally, the seedling forms five roots — one central and four peripheral.

Pollination of the Jatropha is induced by insects — often by bees. Without insects the seed set only occurs with hand pollination. The seeds are black, about 2 cm long and 1 cm thick.

3.1.4

Today, and for the next several years, I believe that Jatropha will be one of the credible, prime feedstocks for biokerosene. Jatropha oil is a very desirable biofuel and partial replacement for jet fuel, and this translates into a potential market of 200 million barrels of Jatropha jet fuel per year.

Bio jet fuel for aviation is now properly referred to as “synthetic paraffinic kerosene” (Bio-SPK). The American Society for Testing and Materials (ASTM) has certified Bio-SPK for commercial use. The aviation sector will have to cut its carbon emissions by 3% in 2012 and 5% from 2013.

The world’s annual consumption of jet fuel (excluding military) is about 2 bil­lion barrels and the International Air Transport Association (IATA) has stated it is committed to improve fuel efficiency 1.5% annually to 2020, to cap net emissions from 2020 with carbon-neutral growth, and to cut net emissions in half by 2050 compared with 2005 (IATA Press Reports); http://www. iata. org/pressroom/ Documents/annual-report-2011.pdf. According to the EU’s emissions trading system (ETS) all airlines entering EU airspace must publish their carbon emission data. Sofar the Chinese and Indian airlines have refused to do so. The EU has communicated that stringent financial penalties will be imposed if these airlines fail to comply with the laws by January 2013.

Biofuels are a substitute for petroleum and the market is closely tied to that of petrofuels. The properties described below make Jatropha one of the lowest, if not the lowest, cost means of biofuels production.

The primary drivers for the substitution of biofuels for petroleum jet fuel are: energy independence, climate change remediation, economic development, socially respon­sible investments, and the search for fuels that are lower in cost or in price volatility.

56 | 3 Biofuels Feedstock: Jatropha curcas

3.3.7

Significant Events

World’s first biofuel test flight. Air New Zealand conducts the first aviation test flight powered by a second-generation biofuel (all airline test results are described in Chapter 19).

More than 2700 airlines face EU carbon regulations. Airlines from all over the world are included in the list, after the European Union agreed to cap emissions from all aircraft that land and take off within the 27 nation bloc beginning January 2012.

Additional successful flight tests by Continental and Japan Airlines. European Union: nearly 4000 companies must reduce emissions or face ban. The European Union released a list of nearly 4000 companies including commercial airlines, private jet operators, and air forces around the globe that must reduce their emissions or face a European airport ban.

British Airways plans to build a plant close to London to convert waste into biokerosene. British Airways has struck a deal with Solana to build the first plant in Europe to produce jet fuel from waste matter. Some 500 000 tonnes of waste will be used by the UK facility each year to produce 16 million gallons of fuel. Construction of the plant in east London will start within 2 years. It is set to produce fuel from 2014, creating up to 1200 jobs.

Lufthansa gives a press conference and announces it will fly daily using biokerosene between Frankfurt and Hamburg as soon as biokerosene has been certified. This event is the “seal of confidence” in Jatropha.

Brazil’s largest airline TAM makes a test flight with home-grown Jatropha for biokerosene.

Lufthansa starts to fly 8 times daily with biokerosene between Frankfurt and Hamburg. Feedstock is Jatropha and animal fat. Aeromexico executes the first transatlantic flight with biokerosene between Mexico and Madrid. Feedstock is Jatropha.

3.3.8

Yield Comparisons

Table 3.4 shows a comparison of low and high yields of several feedstocks, as a basis for biodiesel. As you can see, palm oil has by far the highest oil content.

3.3.9

EMBRAPA is the Brazilian Agricultural Research Corporation, founded in 1973 (www. embrapa. com). Brazilian agricultural technology has made enormous strides in the production of soybeans, wheat, corn, rice, and beans. Over the past 20 years, grain production in Brazil has grown 127% and the sow area has increased by 25%. This represents a development based on sustainability, as it generated a saving of 40 million hectares that are no longer needed. The use of new technologies has also enabled an increase in livestock production and culti­vation of fruits and vegetables in the country.

Most of those gains came from productivity growth in rural Brazil, which began in the laboratories of EMBRAPA. To help build the tropical agriculture leadership in Brazil, EMBRAPA has invested in staff training. Today, the institution has nearly 9000 employees, of which about 2000 are researchers — 21% with Master’s, 71% Doctoral, and 7% with Postdoctorate degrees in agriculture.

Apart from the decisive contribution to makeover Brazil as the second largest producer and largest exporter of soybeans in the world, EMBRAPA research also helped, for instance, to quintuple the offer of beef and pork in Brazil for three decades, and to make the country a leading exporter of chicken. During this

period, Brazil ceased to be an importer of milk and the production of milk, which was previously 7.9 billion liters, has jumped to 27 billion liters.

There are 43 research centers located throughout the country presenting a portfolio with at least 900 research projects in progress. Many of them are developed in partnership with research institutes, universities, private companies, and foundations, which, in a cooperative manner, perform research committed to increasing the competitiveness of Brazilian agriculture, developing technologies in the bioenergy and biofuels area, sustainable use of the environment, search for new products and market segments that can be exploited from the Brazilian biodi­versity, and achievements called "frontiers of knowledge,” such as genetic engineering.

In the international cooperation area, EMBRAPA has technical research coop­eration agreements with nearly 50 countries.

Also see Chapter 13 devoted to biofuels in Brazil.

4.6

Table 8.1 shows the capacity of Brazilian companies per year in metric tonnes. Table 8.2 shows the gigantic size of agriculture in Brazil. The total bagasse resi­dues in Brazil is estimated to be a staggering 649 million tonnes.

In a recent study published by the Association of European Biomass Industry, aimed at increasing consumption of high biomass and pellets in Europe, four

Table 8.1 Biomass potential in Brazil,

countries stand out as major producers and exporters ofbiomass pellets: Australia, South Africa, Brazil, and Japan. The study concluded that the country with the highest production potential is Brazil with its developed forestry industry based on a resource of 6.3 million hectare of plantation.

The use of bio-based renewable and pellet resources holds great potential value for industries in Brazil in many sectors, including energy, organic chemicals, polymers, fabrics, and health-care products. In general, a bio-based economy or biomass offers many benefits and opportunities: new areas of economic growth and development for the many regions that have plentiful biomass resources; creation of new innovative business sectors and entrepreneurial skills; improved energy security, by reducing dependence on non-renewable resources; enhanced economic and environmental linkages between the agricultural sector and a more prosperous and sustainable industrial sector; reduction of greenhouse gas emis­sions; improved health by reducing exposure to harmful substances through substitution of natural bio-based materials for chemical and synthetic materials; and job creation and rural development. See also Chapter on "Biofuels in Brazil”.

8.6