Climate effects from biomass and other energy sources Main Report Main Report 1 July 2013 REPORT Most of the energy sources that are connected to non-fossil fuels are often considered climate-neutral, despite the fact that a large proportion of global emissions of greenhouse gases are not related to the use of fossil fuels. Therefore it is crucial to the selection of the right measures to tackle climate change, that the overall climate impact of each energy source is calculated and assessed on an as uniform, transparent and scientifically based basis as possible. This task is already underway in the scientific world and in international political institutions such as the EU, and it is the intention of CONCITO with this report to further qualify and disseminate these calculations. The report includes scenario calculations for a wide range of biofuels that show that virtually none of the bio based energy sources are climate neutral using the assumptions applied in the study. In addition, several of the energy sources have a climate impact, which is on par with or higher than the fossil fuels they are intended to replace. Author: Torben Chrintz Annex report by: Jannick H. Schmidt and Miguel Brandão from 2.-0 LCA consultants The report is funded by: Fiolstræde 17B · DK-1171 København K Tel: +45 29 89 67 00 · [email protected] · www.concito.dk Climate effects from biomass and other energy sources – Main Report Contents 1. Introduction ................................................................................................. 3 2. LCA analyses of energy sources ................................................................... 5 3. Emission of greenhouse gases and the carbon cycle ................................... 7 4. Method ........................................................................................................ 11 4.1. Functional unit ..................................................................................... 11 4.2. Uncertainties ........................................................................................12 4.3. Consequential approach to modelling .................................................13 4.4. Cut-off criteria ......................................................................................14 4.5. Methodology for quantifying greenhouse gas emissions .....................14 5. Method for modelling Land Use Change (LUC) and biogenic carbon .......14 5.1. Time dependent emission of CO2......................................................... 15 5.2. Indirect changes in land use (iLUC).....................................................19 6. Characteristics for the individual biofuels ..................................................21 6.1. Wood pellets .........................................................................................21 6.2. Wood chips .......................................................................................... 25 6.3. Straw.................................................................................................... 25 6.4. Biogas .................................................................................................. 26 6.5. Bioethanol ........................................................................................... 28 6.6. Biodiesel .............................................................................................. 29 6.7. Coal, gas, oil, wind and solar power .................................................... 29 7. Results .........................................................................................................31 7.1. Electricity based on cultivated wood ................................................... 33 7.2. Electricity based on residual products from forestry and agriculture 37 7.3. Electricity based on biogas .................................................................. 40 7.4. Electricity based on coal, gas, wind and solar ..................................... 44 7.5. Liquid fuels: Biodiesel ......................................................................... 46 7.6. Liquid fuels: Bioethanol ...................................................................... 49 7.7. Liquid fuels: Diesel and petrol............................................................. 52 7.8. Comparaison with literature review from JRC ................................... 54 8. Discussion and conclusion......................................................................... 55 9. References .................................................................................................. 58 10. Annex 1: LCA screening of biofuels ...........................................................61 11. Annex 2: Conclusions from JRC ................................................................61 2 Climate effects from biomass and other energy sources – Main Report 1. Introduction The burning of fossil fuels emits greenhouse gases in different amounts per unit of energy. Coal emits the most, followed by oil and then gas, which emits approximately half of what coal emits. In both Danish, European and international climate policy, all renewable energy sources and most types of biomass are considered CO2-neutral, although this is not necessarily the case in practice (Ref/2/). This can lead to climate policy decisions, which ultimately will have an insufficient effect in terms of reducing emissions of greenhouse gases to the atmosphere. An example of an assessment that has led to the wrong instruments being implemented and to bad investments is the use of biodiesel in the EU, where the production and use of biodiesel have been promoted by building an industry and infrastructure, only in order to subsequently acknowledge that biodiesel does not have the anticipated climate benefit when the impact of all sources of the production are included in the calculations. This report demonstrates that this phenomenon is likely not to be limited to biodiesel, but will also be applicable to a number of alternative and renewable energy sources that today are considered CO2-neutral or climate neutral. Despite the potentially serious consequences of miscalculating the effect of the individual energy sources, there is no recognized ranking of climate impacts available in Denmark today. With this report CONCITO intends to contribute to the build-up of such a recognized ranking. This report calculates the climate impact from a variety of sources of energy based on uniform and transparent methods with open and well-defined assumptions and with the intention that all available, relevant and significant sources are included, including the so-called indirect Land Use Change (iLUC)1. The objective of this report can be summarized as follows: To determine the extent to which biofuels are CO2-neutral. To identify factors with particularly significant effects on greenhouse gas emissions from biofuels. In this context it should be mentioned that the European Commission's Joint Research Centre (JRC) (ref/21/) points to three additional important factors that have not been included in the calculations in annex 1. One is that bioenergy could potentially displace timber, which according to the JRC could increase CO2 emissions from bioenergy considerably (a view which is also described in (ref/24/). The second is that bioenergy does not necessarily only displace fossil fuels, but also other forms of energy such as solar, wind and nuclear power (due to fixed support frameworks / tax exemptions for renewable energy and fixed targets for shares of renewable energy), and that the future reference for emissions from fossil fuels can be both higher (e.g. tar sands) or lower (better efficiency, more gas, CCS etc.), when looking to the future. Moreover, the potential impacts of changes in the albedo, and uncertainties regarding future cultivation practices/climate effects in forests and on arable land can also go both ways. 1 3 Climate effects from biomass and other energy sources – Main Report To undertake an indicative comparison of selected biofuels and their fossil alternatives. It should be emphasized that the purpose is not to make a general ranking of biofuels - but the identification of the above factors of considerable significance, as well as the indicative comparison with fossil fuels can be used to identify the conditions under which certain biofuels will have greater or lesser emission levels than others – conditional on a number of assumptions. Scenarios and results are not necessarily linked to Denmark, but must be seen in an international context. The analyzed energy sources are: Cultivated wood (heartwood + residues) represented by wood pellets of various raw materials Forest residues represented by wood chips Straw Biogas from manure, maize and organic municipal waste First and second generation bioethanol Biodiesel Wind energy Solar power from photovoltaic cells Fossil fuels. The calculations are carried out in a manner that allows the timing of greenhouse gas emissions to be weighted by using different time horizons. Results are shown for time horizons of respectively 20 and 100 years. Detailed calculations are mainly carried out by Jannick Schmidt2 and Miguel Brandão3 from 2.0 LCA Consultants. Their background report with description of methods, scientific method and detailed calculations are attached as annex 1. JRC (Ref/21/) has just completed a study of a similar nature, focusing on bioenergy from forestry and based on a critical review of existing literature, and their conclusions are attached as annex 2. Jannick H Schmidt has been the CEO of 2.-0 LCA Consultants since 2008. He is an engineer by training with a degree in environmental planning from 2002 from Aalborg University. He obtained his PhD in 2007 with a study of the life cycle assessment of rapeseed oil and palm oil with special focus on system boundaries, modelling and land use change. Besides managing 2.-0 LCA Consultants, he is an associate professor at Aalborg University. Jannick’s main expertise and experience is within life cycle assessments of agricultural products, biofuels, plastics, basic metals and waste systems, and the development of LCA methods for LCIA modelling, indirect land use change (iLUC), LCA databases, LCIA methods for biodiversity and input-output based LCA . 3 Miguel Brandão has worked on life cycle assessments of land use systems since 2006 as part of his PhD and subsequently at the Joint Research Centre (JRC) of the European Commission. He has developed methods to quantify indirect land use changes (iLUC) and to assess the impacts of land use in LCA. His focus is on the demand of land, especially the consequences of using land for food, feed, fuel, timber and carbon sinks on the economy, ecosystems and climate. He is also currently working on developing guidelines for consequential LCA and for sustainability assessments. At present, Miguel is an associate editor on LCA of the Journal of Industrial Ecology, and is a member of the Steering Committee of SETAC Europe LCA. 2 4 Climate effects from biomass and other energy sources – Main Report It is relevant to include in the calculation many more scenarios with varying assumptions than those selected for the present study, but unfortunately this has not been within the allocated scope of this work. The selected scenarios and assumptions are thus those that CONCITO found relevant and timely when the work was initiated in late 2011, and which form a good basis for further calculations. It should be noted that the very precise figures presented in the results are only valid for the given methodological and data-related assumptions. The methodological uncertainty is generally considered to be relatively small, while on the data side greater uncertainties exist (e.g. the identification of affected regions, yields, cultivation practices, etc.). As a reference case, we have prioritized references with specific mathematical calculations rather than references based solely on conceptual models. The report reflects the professional judgment of the CONCITO secretariat based on dialogue with members of CONCITO and other stakeholders. As the members of such a broad organization as CONCITO will not always be able to academically or politically agree, CONCITO’s members can in no way be held accountable for the final conclusions and recommendations of the report. 2. LCA analyses of energy sources Among experts within Life Cycle Assessments (LCA) there is an increasingly prevalent view that the term "CO2-neutral energy sources" rarely adequately corresponds to reality, and that it is inappropriate that the total greenhouse gas emissions related to the various energy sources are not included in the prioritization of the energy and climate policy instruments (e.g. Ref/2,21/). As early as November 2011 CONCITO issued a report (Ref/1/), which, supported by newer LCA analyzes and the EU Scientific Committee (Ref/2,3,4/), showed that energy produced from certain types of biomass, including wood pellets, from a climate point of view can be worse than the continued use of fossil fuels, despite the fact that biomass is politically and commercially regarded as CO2 neutral and constitutes a key instrument in the Danish Energy Agreement of March 2012. Since then, a number of analyzes and research results have been published on the same subject, which generally supports these conclusions (see below). Neverthelss in the Danish debate, there continues to be disagreement on this point. In Norway, CO2 neutrality and the use of Norwegian timber resources has been an important topic of debate for a long time, and to settle this dispute the Norwegian directorate for climate and pollution was asked to put together a report to be used as a basis for political reference (Ref/5/). The model used in the 5 Climate effects from biomass and other energy sources – Main Report analysis was developed by the Norwegian Institute for Forest and Landscape. The report concluded that wood from Norwegian forests is not CO2 neutral, and came to the conclusion that even in the most optimistic scenario with storage of carbon in wood products, displacement of steel structures for buildings with wood and use of residual products for energy purposes, the climate related payback period was 90 years. This entails that it will take at least 90 years before wood from Norwegian forests can be considered CO2-neutral (see Chapter 3). For wood used solely for energy production the payback period will be considerably longer. The report states that: “Recently, several studies have been undertaken that consider the payback period for logging in Nordic countries (boreal forest). We have compared our results with the results presented by Holtsmark (2010b), Zanchi et al. (2010) and Rørstad et al. (2010). Holtsmark and Zanchi et al. show that it takes from 80 years to over a century (depending on what the wood is used for) before the CO2 content of the atmosphere is lower than before the tree was cut down, and at least 150 years at permanently increased logging.”4 Following the publication of the CONCITO report in 2011 (Ref/1/), it was argued in the Danish debate that the poor climate performance was limited to boreal forests, and the case for wood from Central European temperate forests would be markedly different: Therefore, in this report we have made calculations on different forest types with different rotation times and climatic conditions. We have not made scenarios that are representative of the boreal forests. Factors that emissions from bioenergy are related to include: Changes in the amount of carbon tied up in trees and soil Changes in growth rate Use of machinery, pesticides and fertilizers Nitrous oxide emissions from the soil and leaching of nitrogen Displacement of other crops that instead have to be grown elsewhere in the world (iLUC) Processing of crops for energy purposes, as well as production and construction of productions facilities. All this may result in cases such as for example biodiesel or biogas produced with a large supplement of maize, where it may be that the maize wholly or partly cancels out any climate benefit, and thus makes the technology less attractive from a climate point of view. For solar panels and wind turbines, for example, the major contributions to the climate impact are from the production of the solar cells and wind turbines, 4 Translation from Norwegian 6 Climate effects from biomass and other energy sources – Main Report which are energy-intensive processes. This means that when new solar cells and wind turbines are put into service, they have a CO2 debt that it takes time to recover. Thus, even solar panels and wind turbines account for a non-negligible emission of greenhouse gases per kWh, and therefore cannot be considered CO2 neutral when all sources are included. However, it should be noted that greenhouse gas emissions from wind and solar power are generally substantially lower than emissions from other energy sources. 3. Emission of greenhouse gases and the carbon cycle According to the IPCC 2007 report (Ref/6/), emissions of CO2 from fossil fuels in 2004 amounted to 56% of human emissions of greenhouse gases, while 44% come from other sources, including CO2 from deforestation and drainage of soil etc., see figure 1. Figure 1. Breakdown of emissions of greenhouse gases according to the IPCC. From Ref/7/ In the debate on the reduction of greenhouse gas emissions, emissions related to fossil fuels take up much space, while the remaining 44% of emissions caused by non-fossil sources takes up much less (given that the figures are from 2004, the relative importance of emissions from the energy sector has since then increased, as growth in emissions from fossil fuels has been significantly higher than from changes in land use). This could imply that, in seeking to reduce fossil emissions, non-fossil emissions could be increased by substituting fossil fuels with biomass-based fuels5. As an example of this, The Finish Forestry Research Institute (Ref/22/, referrenced in Ref/21/) has estimated that Finland’s CO2 emissions will de facto increase if Finland is to achieve the EU reduction target by 2020 with a given level of biomass – not because it would reduce carbon sequestration in Finish forests, but because it as a consequence would reduce the growth rate. 5 7 Climate effects from biomass and other energy sources – Main Report It is thus clear from figure 1 (agriculture + forestry), that the demand for biomass, whether for food, fiber or energy, gives rise to just over 30% of global anthropogenic emissions of greenhouse gases6. Nevertheless, biomass is in most contexts a priori considered CO2 neutral, which according to Ref/2/ is partly attributable to an unintended fallacy in the negotiations that set the stage for the Kyoto agreement. In order to better understand when something should be regarded as an emission, it is relevant in this context to consider the carbon cycle in a little more detail. The world's carbon cycle is shown in a simplified form in figure 2. Figure 2. The carbon cycle. Red figures indicate anthropogenic emissions, yellow figures depict the natural cycle, while figures in parentheses are stored carbon. All figures are in billion tones C (Gt). Source: U.S. Department of Energy, Office of Science. When considering first the stored carbon, it appears that: The atmosphere contains 800 Gt C Plant biomass on land contains 550 Gt C The soil (surphase near) contains 2,300 Gt C 6 According to ref/28/ the LUC effect today is approximately 10 % of total CO2 emissions. 8 Climate effects from biomass and other energy sources – Main Report The subsoil contains 10,000 Gt C The oceans and ocean floor contains a total of 44,000 Gt C. It is important to note that plant biomass has a relatively large stock in relation to the content in the atmosphere, and that the annual anthropogenic (manmade) emissions are relatively small (9 Gt) relative to the total stock of plant biomass. It should also be noted that the stock in the upper layer of the ground is very large, more than four times greater than that which is stored in the plant biomass. This means that there are potentially relatively large quantities that can be released from these stocks to the atmosphere if the plant biomass and the surphase soil is managed inappropriately. Conversely, there are also opportunities to increase the large stocks in the biomass and in the soil through agriculture and nature management, and thereby increase the uptake of CO2 from the atmosphere. When considering the yellow numbers in figure 2, i.e. the “natural” carbon cycle without the anthropogenic contribution, it appears that: The oceans absorb and emit 90 Gt C / year The terrestrial plants via photosynthesis absorb 120 Gt C / year that are distributed in plants and in the soil, and which in turn is released by plant respiration (60 Gt C / year) and by microbial respiration and decomposition in and on the soil (60 Gt C / years). It is important here to note that the annual turnover in the plants and soil is more than ten times larger than the anthropogenic emission, and that the storage in biomass and in the upper strata is approximately 300 times greater than the annual anthropogenic emissions. Changes to this system in the form of e.g. reduced storage will therefore be able to create an imbalance in the system and a new equilibrium with a higher concentration of CO2 in the atmosphere. Finally, the red numbers in the figure, as mentioned, constitute the anthropogenic emission. It is apparent here that: The total emission of C is 9 Gt / year (today closer to 10 Gt C (Ref/9,28/)) 2 of the 9 Gt are absorbed by the oceans 3 of the 9 Gt are absorbed by plants and the soil The remaining 4 Gt C accumulate in the atmosphere. This net uptake of approximately 3 Gt C in the terrestrial plants /soils is apart from the current stocks an essential element in the discussion about whether the use of biomass is beneficial to the climate or not. In fact, this is the most uncertain of the indicated balances, and is often attributed to the “missing carbon sink” (Ref/9/). This is because the amount is calculated as a residual amount 9 Climate effects from biomass and other energy sources – Main Report when the other sections have been calculated, as it is very difficult to measure a change in the terrestrial carbon stock of less than 1%, which indeed has posed significant challenges in the inventories of carbon storage in the biosphere and the surphase soil that are made under the Kyoto Protocol in the countries covered. However, there seems to be a certain level of consensus that this uptake mostly occurs in the northern hemisphere and particularly in the forests as a result of increased CO2 concentrations in the atmosphere and/or due to longer growing seasons (Ref/9/). Recently published analyzes based on satellite measurements confirm this (Ref/16,28/). The base scenario is thus not that an increase in forests can be logged in a CO2neutral manner, since growth is a prerequisite in most projections and models (Ref/9/). If the growth is logged and burned, future atmospheric CO2 concentratiosn will therfore be higher than that predicted by the models. If the extra absorption in the oceans or on land is reduced, the rate of increase of CO2 concentration in the atmosphere will therefore increase. This distribution is described later in the report in relation to the Bern carbon cycle. A frequently advanced argument that a given removal of wood for energy purposes from a forrest is CO2-neutral with reference to the fact that only a small part of the increase is taken away, is therefore not valid. A given emission of CO2 resulting from a reduction in growth or a reduction in standing stock, has the same immediate impact on atmospheric greenhouse gas content as an equivalent emission from burning fossil fuels, although there is an aspect of time to be considered. This is described later in this report. The uptake of carbon, especially in the northern hemisphere is thus of the same order of magnitude as the emissions from the global use of coal, namely 3 Gt C in uptake (4.1 Gt C according to recent figures, Ref/28/) against an emission rate of 3.7 Gt C from coal. In this report and in annex 1, the calculations are therefore performed by modelling changes in the uptake and storage over time for a given action, and not in relation to a given static equilibrium (see below). 10 Climate effects from biomass and other energy sources – Main Report 4. Method 4.1. Functional unit LCA analyzes operate with the concept of “functional units”, i.e. the unit to which the calculations refer. The functional unit of the different fuels and forms of energy in this analysis are shown in table 1. Table 1: Definition of functional units Electricity based on: Functional unit Wood pellets (3 different sources) Wood chips Straw Biogas (manure, maize, organic waste) 1 kWh electricity at the power plant Coal Natural gas Wind power Solar power (photovoltaic) Motor fuels based on: Functional unit Rapeseed biodiesel Biodiesel from palm oil Bioethanol, 1st generation (wheat and maize) 1 MJ fuel combusted in an engine Bioethanol, 2nd generation Motor diesel (mineral) Motor petrol (mineral) It should be noted that not all technologies for electricity production can be substituted 1:1. For example, wind turbines only produce electricity when the wind blows, while gas for example can be adjusted to fit the demand. Therefore, some technologies would need to be complemented with ‘adjustment capacity’ in order to be absolutely comparable with others. Adjustment capacity can be either flexible production, storage or flexible consumption. A specific functional unit for heat has not been included, since relative emissions will generally be comparable to the functional unit for electricity. Both coal and gas can thus be used for heat production alone, as can biomass, and the uncertainties will therefore mainly consist in slightly different electrical efficiency levels for the individual fuels. 11 Climate effects from biomass and other energy sources – Main Report 4.2. Uncertainties In general, the LCA model used as a basis for this report offers considerable accuracy in the calculations under the given assumptions, while the accuracy of the assumptions and the applied data is smaller. The concepts of accuracy and precision in the LCA are described in more detail in Ref/11/. Uncertainty about assumptions and data includes: The applied yields on a wheat field, which are average values for a given area For the production of biodiesel and bioethanol it is assumed that the raw material is cultivated in Denmark (high efficiency in agriculture), while the displaced raw materials (feed from oil mills and bioethanol production) are assumed to be cultivated in low-productive countries. This can be argued to overestimate the benefits of by-products. Methane emissions from biogas installations can vary from 1% to 4%, where the model applies 1% as standard value. The modelled method for upgrading biogas (a choice of several different). The assumption that an increased demand for woody biomass does not increase net deforestation and does not affect cultivated arable land. Finally, there are of course uncertainties associated to the applied iLUC calculations and their assumptions (see annex 1 and its references for more detailed descriptions of the uncertainties in the iLUC calculations.). Because of the uncertainties linked to the assumptions and data applied in the calculations, the results are compared to other studies that have used other data and other models for similar calculations as an additional independent quality assurance. In this regard, particular attention is given to a critical literature review undertaken by the European Commission's Joint Research Centre (JRC, Ref/21/). JRC estimates that the uncertainties in the calculations they use are limited, but will increase if e.g. albedo effects are included (reflection of light). The very precise quantities in the results in Chapter 7 and in annex 1 are therefore only valid under the given assumptions for method and data. The uncertainty in the method is generally considered to be relatively small, while there on the data-side are greater uncertainties (e.g. the identification of the affected regions, yields, cultivation practices, etc.). The examples for pellets and chips are, however, largely represented by the possible extremes, so that specific calculations are likely to fall within the modelled scenarios using the same system delimitations. Finally, it should be highlighted that the uncertainties of this and similar studies, ceteris paribus, are significantly smaller than the uncertainty of not calculat- 12 Climate effects from biomass and other energy sources – Main Report ing the climate impact and simply defining emissions as zero, which in several contexts is the case today. 4.3. Consequential approach to modelling The study models the effects of a change in demand for the functional unit (see table 1), where the functional unit is provided by various product systems in different scenarios. The approach to this is the so-called consequential approach to modelling in life cycle assessment. The arguments for applying this approach, the theoretical foundation, and the practical implementation of the strategy is described in Ref/10,11,12/. This approach is also recommended in Ref/21/ (see Annex 2) in order to include as many effects in the calculation as possible. It is important to note that the effects are modelled for an additional production and not an existing production. For example, existing wood pellets can be made wholly or partly from residues from sawmills, but here an additional production of pellets is modelled assuming that residues from sawmills in practice are fully utilized or that they will be in near future (see Chapter 6 for reasoning and documentation). It is also important to note that the modelling assumes that there are no changes in biomass productivity or production structure. To the extent that additional demand results in changes in the production of biomass, which leads to enhanced productivity without increasing the consumption of input materials, this could lead to a reduction of the climate impact, which is not included in the calculations. Such changes could for example occur by a shift in Denmark to cultivating grain crops with a higher share of straw without changing grain yield, or by the introduction of fast growing nurse trees in forestry, which can be utilized for biomass production without compromising the existing production of timber. Similarly, at the international level, there is scope for the cultivation of additional biomass on former agricultural land that is now going into lowproductivity systems because of low soil fertility, but which could be remedied with the right tree species and fertilization. This modelling concept and why it has been selected are important to keep in mind in order to understand the calculations. The modelled scenarios are thus not based on how a specific product is made, but on how it will be replaced in the market when it is used or purchased on the basis of current systems for biomass production. As a more practical example, the model approach might be compared to the effect of the purchase of e.g. Norwegian electricity from hydropower. As hydro power in Norway is almost fully developed, an additional demand for it will not increase production of hydroelectric power, but simply push other users out of 13 Climate effects from biomass and other energy sources – Main Report the market. The marginal production of electricity will therefore not change, and hence neither will the overall emission of greenhouse gases. 4.4. Cut-off criteria Cut-off criteria determine what is included in the calculations and what is not. In general, all relevant sources are attempted included in the calculations (but see footnote 1), including capital goods, i.e. production of machinery, buildings, infrastructure etc., but not services such as auditing, marketing, legal services, cleaning services, research and development, laboratories, office equipment etc. Capital goods are, however, omitted for a few production processes in the modelled systems, cf. annex 1. This is, however, not considered to have crucial significance for the results. 4.5. Methodology for quantifying greenhouse gas emissions In general, the “Global Warming Potentials” of the international climate panel, IPCC, are applied in a 100-year perspective (GWP100) in the main scenarios, while sensitivity analyzes are undertaken using a 20-year perspective (GWP20). GWP is expressed in kg CO2 equivalents (CO2e). No distinction is made between fossil carbon from oil, coal and gas, and biogenic carbon from biomass. The temporal effect is calculated consistently cf. the GWP principle using the socalled 'Bern Carbon Cycle', which is described in detail in the following chapter. It should be noted that most CO2 footprint accounts and LCA’s do not distinguish between the point in time of absorption and emission of CO2. In particular for products and fuels based on forestry products this can have a significant impact on greenhouse gas emissions. Therefore, this is taken into account in the present study. 5. Method for modelling Land Use Change (LUC) and biogenic carbon A significant proportion of the greenhouse gas emissions related to the use of biomass can be linked to iLUC (indirect Land Use Change), and the phase the biogenic carbon is in at a given time (e.g. as CO2 in the atmosphere or as C in plant material or soil). This chapter describes the scientific and practical background for how this is modelled. All calculations and methods are, with few exceptions, in accordance with the international ISO14044 standard for LCA, and with the general rules for consequential LCA. See Annex 1 for a description of exceptions. 14 Climate effects from biomass and other energy sources – Main Report 5.1. Time dependent emission of CO2 Often, when considering emissions of CO2 and other greenhouse gases, no distinction is made regarding when a given emission takes place. Nevertheless, there are certain political targets for the maximum acceptable human-induced temperature increase (currently 2 degrees Celsius, corresponding to an atmospheric CO2 concentration of 450 ppm), which require a certain maximum emission and concentration of greenhouse gases at a given time. At the same time, there is scientificly a (uncertain) threshold for when the concentration of greenhouse gases in the atmosphere and the temperature rises are so high that selfreinforcing effects occur, and climate change, therefore, to some extent can “run wild” and be extra difficult to counter. Suspension of emissions of greenhouse gases, therefore, has a positive effect e.g. by reducing the warming effect here and now, by winning time e.g. for technological advances and for adaptation to climate change, and by extending the time frame for the transfer of carbon from the fast (biogenic) carbon cycle to the slow (fossil, limestone) (Ref/9/). Therefore, given the policy goals to reduce emissions of greenhouse gases by 2020 or 2050, it is the actual emission and warming that is interesting and not whether measures have ben undertaken that could potentially reduce emissions e.g. by 2100, in part because then the threshold could be surpassed. Therefore, it is relevant to also consider greenhouse gas impacts over shorter time periods than 100 years (GWP100), e.g. over 20 years (GWP20). For example, if by a concrete reduction targets for emissions of CO2 in 2030, the intention is that by that time a corresponding lower concentration of CO2 in the atmosphere should be achieved, the warming effect should also be considered in a 20-year perspective and not solely in a 100-year perspective (e.g. Ref/22/). On this basis, the IPCC as a standard applies 20-year, 100-year and 500-year perspectives (Ref/17/), although the Kyoto Protocol for practical and administrative reasons primarily focuses on a 100-year perspective. Normally, the burning of biomass is considered CO2-neutral because the CO2 released in the burning process has been absorbed from the atmosphere previously. During the period between the absorbtion in the growth phase and the discharge during decomposition, the CO2 is out of the atmosphere and thus does not contribute to the greenhouse effect. Therefore the length of this period is relevant. This period is the longest in forests with large time differences between absorption and emission, but may also be considerable e.g. for straw and other crop residues (trimmings in forests, etc.), where there is a difference between whether the CO2 is released by natural degradation over time or immediately upon combustion. (Ref/1,2,3,4,14,15,18/). 15 Climate effects from biomass and other energy sources – Main Report The effect of increased deforestation by iLUC is modelled by an accelerated deforestation, but not as an increase in net deforestation, and may in this regard be considered a "best case" for CO2 emissions from biomass since the amount of forest that remain in 100 years is the same in the applied model irrespective of an increase in demand for biomass. When the assumption is here described as "best-case" it is because the literature contains an argument that increased demand for certain types of biomass for energy a priori will have dramatic effects on natural forests (and arable land) i.a. due to the price effects of the creation of a global market for biomass for energy purposes, and since it will not be feasible to prevent this through regulation (Ref/19/). How ILUC is modelled is described further later, and in more details in annex 1. As described in Chapter 3 on the carbon cycle, approximately half of the emitted carbon accumulates in the atmosphere, while the rest is absorbed in the oceans and in biomass or in the soil. This allocation, however, does not happen immediately, but is a balance that adjusts over time, where CO2 is slowly absorbed from the atmosphere until an equilibrium is reached. This can be described by Bern's carbon cycle, which is described in mathematical details in annex 1, and graphically illustrated in figure 3. As apparent from figure 3, the emission of 1 kg of CO2 will result in a net remainder of 0.5 kg CO2 in the atmosphere after about 30 years, and more than 0.2 kg after 500 years. Thus, the concentration of CO2 in the atmosphere at a given point in time can be calculated from the immediate release of 1 kg of CO2 from biomass or fossil fuels. The effect of accelerating or delaying the emission of a given quantity of CO2 can also be calculated using Bern’s carbon cycle by shifting the pulse to the right (delays emissions) or to the left (accelerates emissions) in the figure. This is illustrated in figure 4. 16 Climate effects from biomass and other energy sources – Main Report Fraction of CO2 pulse remaining in atmosphere over time 1.20 1.00 Fraction 0.80 0.60 0.40 0.20 0.00 0 100 200 300 400 500 Time (t), years Figure 3: Fraction of a CO2 pulse emitted in year 0 remaining in the atmosphere at a given point in time (from annex 1). Fraction of CO2 pulse remaining in atmosphere over time 1.20 1.00 Fraction 0.80 0.60 0.40 0.20 0.00 0 100 200 300 400 500 Time (t), years Dt Fraction of CO2 pulse remaining in atmosphere over time 1.20 1.00 Fraction 0.80 0.60 0.40 0.20 0.00 TH= 100 0 Dt 200 300 400 500 Time (t), years Figure 4. The effect on the emitted CO2 remaining in the atmosphere of delaying a given CO2 emission. See annex 1 for the mathematical background. 17 Climate effects from biomass and other energy sources – Main Report The effect on the climate does not solely dependent on the concentration in a given year, but also on how long the CO2 has been present, which can be calculated as the integral of the share of CO2 emitted over time (the area under the curves in figure 1 and 2). The Figure show that CO2 in the atmosphere within a 100-year horizon (the shaded area) decreases with a delay of emissions of approximately 30 years (t). Taking into account the effect of a delay of one year in a 100-year perspective (GWP100), 1 kg of CO2 emitted in year 0 will have the same climate impact as 0.9924 kg CO2e emitted in year 1. The delay thus has a CO2 advantage of 0.00761 kg CO2e. Considering emissions in a 20-year perspective, the significance of the delay effect is that 1 kg of CO2 emitted in year 0 corresponds to an emission of 0.9586 kg CO2e in year 1, representing a CO2 advantage of 0.0414 kg CO2e by delaying emissions. The effect of delay is thus more than five times as strong when considering the emissions in a 20-year perspective rather than a 100-year perspective, and therefore CO2 emissions from the burning of biomass usually also increase considerably the shorter the time frame selected for consideration. With a specific reduction target 20 years into the future, it is important from a scientific point of view to assess the measures applied to reach the reduction target within a corresponding time frame, if the reduction target is to reflect a de facto reduction of CO2 in the atmosphere by the stipulated target year. Conversely, objectively speaking the requirement for the selection of measures should be that they have a significant impact in both the short term and in the longer term so that it is not an either-or, but a both-and. Consequently, it is difficult to argue that a given climate target has been achieved after 20 years if the measures undertaken for achieving this goal subsequently results in a sharp increase in CO2 concentration. It is similarly difficult to argue for a 100-year objective if the planet in the meantime experiences irreversible and uncontrollable climate change. Accordingly, the two degree treshhold is only within reach if emissions of CO2 physically begin to decrease relatively dramatically within a very short period of time. 18 Climate effects from biomass and other energy sources – Main Report 5.2. Indirect changes in land use (iLUC) Deforestation and changes in land use (Indirect Land Use Change, iLUC) is a consequence of the demand for land (in the following only for land), whether it is for the production of biomass, food, urban development, infrastructure or other (annex 1). The model considers land as a capacity for the production of biomass and it considers the market in which land is demanded to be a global market, since crops can be cultivated in different regions of the world, and are traded globally. An increased demand for land can globally be met by: Land that can be used for forestry (but not agriculture) Expansion of plantation area (typically change from secondary or primary forest to cultivated forest) Displacement of consumption, someone reducing their consumption. Land that can be used for agricultural cultivation Expansion of arable land area (typically deforestation) Intensification of existing agriculture Displacement of consumption, someone (typically the poor) reduces their consumption due to higher prices, so that others can use the biomass. Displacement of consumption is in the long term considered to be of minor importance because higher prices will lead to increased production by deforestation or intensification. In the iLUC model an intensification of existing cultivated forests is not included in the calculations. This delimitation is due to a lack of global statistics from which to quantify the intensification. The model distinguished between five types of relevant markets for land: 1. Extensive woodlands: Not suitable for more intensive forestry (e.g. logging and replanting) e.g. because it is too hilly, too remote or because the woodlands are located on very infertile soils that make intensive forestry uneconomical. Wood in extensive forest areas is typically logged after natural regrowth of mixed species. 2. Intensive forest: Suitable for intensive forestry (e.g. clearcuts, reforestation, monocultures, etc.), but not suitable for arable crops because the land cannot be cultivated, for example because it is too rocky. Forests grown in intensive forest areas can be managed as intensive or extensive forestry. Intensive forest land can also be used for other land use, for example for grazing. 19 Climate effects from biomass and other energy sources – Main Report 3. Arable land: Can be used for cultivating annual or perennial crops, for intensive or extensive forestry, and for grazing. 4. Grasslands: Often too dry/barren for forestry and traditional crops. Grasslands are therefore often used for grazing. 5. Other areas: Not suitable for production of biomass. Barren lands, deserts, ice sheets, high mountains etc. The model simulates the types of changes that occur in the global land use, when demand for a product changes. Land, i.e. the capacity for production of biomass, is counted as area x time weighted against productivity (the unit is Net Primary Production (NPP), measured as kg carbon used for this). Some very fertile areas in for the example the tropics can have a potentially very high production per hectare (high NPP), while other areas have a low productivity and therefore require more land to produce the same amount of carbon. The model simulates, which areas comply with a given increase in demand with a certain share, including the proportion that can be produced by intensification of existing areas given the existing technologies for intensification. The principle is shown in figure 5. Existing land Output Land already in use Inputs None Emissions None Flow x - Land use changes Output Flow Expansion a3 Ressource inputs from nature b1 Transformation from… Transformation to… b2 Emissions e.g. CO2 b3… Intensification Output Flow Intensification a4 Inputs from technosphere Diesel for traction c1 N-Fertiliser, as N c2 Emissions e.g. N2O, CO2 c3... Social/hunger effects Output Crop displacement Inputs None Emissions None Unit kg NPP0 Flow y Unit kg NPP0 ha ha Land tenure market LCA activity Output Flow Land tenure, NPP 0 as kg C a1 = a3 + a4 Inputs from technosphere Land already in use a2 = 0 Expansion a3 Intensification a4 a5 = 0 Crop displacement Unit kg NPP0 kg NPP0 kg NPP0 kg NPP0 kg NPP0 Wheat LCA activity (1 ha yr) Output Wheat Inputs from technoesphere Diesel for traction N-Fertiliser, as N Land tenure, NPP 0 as kg C Emissions CO2 fossil (diesel combustion) N2O Resources CO2 from air Flow Unit 7200 kg 4921 161 7000 MJ kg kg 365 4.3 kg kg 10300 kg wheat kg Unit kg NPP0 MJ kg kg Unit kg NPP0 - Figure 3 Illustration of the principle of land consequences and its inputs and outputs, here described by a given wheat production. Only two of these are relevant when modelling iLUC, LUC and intensification. These two activities are linked to emissions. The sum of these emissions is called iLUC emissions. See annex 1 for details. An increased demand for example for wheat will thus lead to a certain change in the use of arable land, and a certain intensification of existing farmland. Both the incorporation of new land and the intensification increase the emission of 20 Climate effects from biomass and other energy sources – Main Report greenhouse gases, and this emission is coupled to the production of wheat. There are several different models for calculating iLUC, and in annex 1 the different models and their principles for calculation and differences are briefly described. 6. Characteristics for the individual biofuels An important prerequisite for the calculations are the material properties assigned to the individual fuels. Material properties of the fuels used in this report are shown in table 2. Table 2: Material properties for the relevant fuels used in the report. See annex 1 for references. Fuel / material Density wood Dry matter Lower heating value (kg dry matter /m3) (%) Eucalyptus 0.51 50% - Loblolly pinewood 0.42 50% - Pinewood 0.42 50% - Wood pellets - 90% 17.5 MJ / kg Wood chips - 75% 13.6 MJ / kg Straw - 85% 14.5 MJ / kg Maize silage - 33% - Organic municipal waste - 40% 5.10 MJ / kg Purified biogas (96% methane) - - 34.50 MJ/Nm3 Diesel - - 43.0 MJ / kg Rapeseed biodiesel - - 37.0 MJ / kg Biodiesel from palm oil - - 37.0 MJ / kg Petrol 43.0 MJ / kg Bioethanol - - 27.0 MJ / kg Coal - - 24.4 MJ / kg 6.1. Wood pellets Wood pellets are produced from plantation wood or as a residual product from sawmills. Since residues are today fully exploited (Ref/20/, annex 1), an increase in demand will be met by increased production/logging of wood. The principle is shown in figure 6. Thus, it is assumed that all wood for wood pellets is cultivated wood. In the next section where wood chips are analyzed, it is assumed that chips are produced entirely from residual products, which would alternatively have remained in the forest. In this way, the two principal ways in which timber can be produced are included in the assessment. 21 Climate effects from biomass and other energy sources – Main Report System boundary Saw mill Sawn wood Saw dust / wood chips are constrained by demand for sawn wood Forest plantation Dependant by-product: Saw dust / wood chips Wood Wood pellet production Wood pellets Power plant Electricity Figure 4: System delimitation for the production of electricity based on wood pellets, see annex 1 for details Wood pellets are the fastest growing source of woody biomass in the EU, and the most likely supplier for Denmark is currently the Baltic States (see annex 1, Ref/20/, figure 7). Therefore, production of wood pellets from a climate zone corresponding to the Baltics is included as a scenario. The largest exporters to the EU are Canada, the U.S. and Russia, while the future major exporters are expected to be the U.S. and Brazil, based on a production from whole trees of Loblolly Pine and Eucalyptus (Ref/20,29/, annex 1, figure 8). Therefore, pellets from the U.S. and Brazil are also included as scenarios. Figure 5: Import of wood pellets to Denmark from different countries. From Ref/20/ 22 Climate effects from biomass and other energy sources – Main Report Figure 6: Expected growth in wood pellet production from different sources. As shown, growth in the use of residual products is expected to be limited after 2013, while by far the largest growth is from pine in the U.S. and in eucalyptus from Brazil. From Ref/20/. It is important to point out that the scenarios focus solely on the climate effects of wood pellets and not, for example, on impacts on biodiversity (where the effect can be very considerable for example for Brazilian eucalyptus cultivated in savanna or former rainforest areas). An increased demand for biomass in the model does not increase the net change from non-cultivated forest to cultivated forest, but simply brings this change forward. Selected characteristics of the three scenarios are shown in Table 3, and more are shown in annex 1. Table 3: Selected characteristics for the three wood pellet scenarios, see annex 1 for details Scenario Eucalyptus, Brazil Rotation time (years) Annual growth (commersial wood/round wood) m3/ha 6 50 Loblolly Pinewood, South East U.S. 12 14 Pinewood, Latvia 63 6 23 Climate effects from biomass and other energy sources – Main Report Annex 1 shows the emissions associated with the production and transportation of wood pellets, and for each scenario time-dependent carbon balances are established for carbon both above and below ground. These balances are included in the final modelling. The main assumptions for the modelling of wood pellets are: All parts of the logged lumper (trunks) are used for wood pellets, and not, for example for timber products. 80% of residues (both residues above and below ground) are assumed to be consumed (thinnings, branches, cut etc.). Rotation time for Eucalyptus in Brazil, Loblolly Pinewood in the U.S. and Pinewood in Latvia is 6, 12 and 63 years respectively. Drying of wood pellets is based on biomass (wood pellets). iLUC only includes an accelerated transformation of primary and secondary forests to plantations - no net transformation is assumed. iLUC is modelled as if the land concerned is exclusively land not suitable for arable land. If arable land was included, iLUC effects would increase by more than a factor of 2, with significantly higher emissions It is important to emphasise that it is not specific forests in the Baltic countries, the U.S. and Brazil, which are modelled, but areas with growth, rotation times, temperatures and humidity, etc., which are characteristic of the climate zones that are in these countries. The examples thus to a greater extent represent climate zones (temperate, subtropical and tropical) rather than specific countries, and some countries may therefore have specific regulatory requirements regarding forest management, which are not reflected in the assumptions. Thus, it is important to keep in mind that the assumptions underlying the calculations and the results are the expression of a likely marginal production. An example of where legislation and management practices may have important implications for the modelling is the proportion of residues above and below ground respectively that is removed and used for biofuel. Generally, it is assumed that 80% of residues both above and below ground are harvested. This is a very high figure. However, this assumption does not significantly influence the results; if the proportion of harvested residues in the soil changed from 80% to 0% GHG emissions are reduced by 1-3%, and if all residues (both above and below ground) are left in the forest, the result increases by 2-6%. The reason that the results are not going in the same direction, is that the effect is not linear. When residues are not harvested, yields are reduced, and iLUC increases, and meanwhile the effect of the biomass left behind in the forest can lead to a net increase in the carbon pool (if it is decomposed more slowly than growth). 24 Climate effects from biomass and other energy sources – Main Report 6.2. Wood chips Wood chips are assumed in the model to be produced from residual products (thinning wood etc.) from timber production. Thereby wood chip production does not increase demand for cultivated wood. This is obviously an optimistic scenario, which lasts only as long as demand is less than the amount of residual wood, and as long as it can be ensured that it is de facto not decidedly cultivated wood that is affected. Details surrounding the production and use of wood chips are shown in annex 1. The main assumptions for wood chips are: That they are based solely on residual products, and that the alternative to using them is that they are left on the forest floor. If wood chips become a primary product, i.e. if trees are logged for the purpose of making wood chips, the emissions from forest cultivation will be similar to wood pellets without drying. That as they are solely a residual product, iLUC is not included in the calculations. This, however, also entails that demand is assumed to be less than the available amount of residual wood. Therefore, this scenario can reasonably be expected not to be a fair representation of some regions with a current high residue utilization rate, and of the long term. As for other fuels, it is important that the applied assumptions are kept in mind when regarding the calculations. For instance, Ref/21/ discribes the export of wood chips made from roots from rubber trees from Africa to Europe, where the argument from the buyer's side has been that the roots were simply burned off as waste treatment, and the chips was therefore made of residues and consequently CO2-neutral and sustainable. It is claimed, however, that the burning of the roots was the basis for charcoal for cooking by locals, and that the price of charcoal, therefore, has doubled in the area with the result that it has had negative social consequences and that logging of local natural forest has probably increased. Based on a consequential modelling, the chips, therefore, give rise to significant CO2 emissions because it displaces local charcoal and consequently can increase deforestation. On the other hand, this could well be resolved by replacing charcoal for cooking purposes with other more efficient sources of energy. 6.3. Straw Straw, as wood chips, is assumed to be a residual product that is available in sufficient quantities, and increased demand for straw, therefore, does not affect total cereal production in the model. This is of course continget upon the assumption that demand does not surpass the available quantity of straw. 25 Climate effects from biomass and other energy sources – Main Report Straw is characterized by a very short “rotation time” (< 1 year), and the model calculates the CO2 balances of the alternative to incineration, which is to plough the straw into the soil and calculate the subsequent natural decomposition and fertilization effect, i.e. that the straw left in the soil displaces other fertilizers in the form of Nitrogen, Phosphorus, and Potassium. Further details about the models and degradation constants are described in annex 1. The most important assumptions are: That straw is solely a residual product where the alternative is to plough the straw into the soil. If the straw would have been harvested for other purposes (feed, bedding, other energy), that means the straw is no longer an available resource, and thus the secondary effect of gathering straw becomes that the production of alternative feed, bedding or other energy must be increased, and that CO2 emissions thereby also increases That as straw is solely a residual product, iLUC is not included in the calculations. 6.4. Biogas Biogas can not with currently available technologies be produced technically or economically meaningfully on slurry alone, since the energy content relative to the volume is too low in the raw slurry. Therefore, organic matter is added to the slurry, and as most organic residues from industry are already used today, readily available organic residues are a scarce commodity. With plans for a greatly increased biogas production in Denmark, the addition of organic matter from energy crops, i.e. crops that are cultivated for the purpose of energy production, has been politically sanctioned. Thus, it is permitted to use e.g. maize for biogas production, and towards 2017, biogas can consist of gas from 70% maize (70% of the gas comes from the maize, and 30% from slurry), while in 2018, it may consist of 48% gas from maize. Maize is already to a limited extent used in biogas production in Denmark. According to the Danish Energy Authority (Ref/25/), “many, perhaps most new plants” are expected to depend on being able to use energy crops to a not inconsiderable extent, until it becomes clear whether alternative sources of additive biomass such as straw, landscaping biomass or municipal waste can wholly or in part substitute energy crops. As the future of the alternative biomass sources is still economically and technically insecure, the scenarios for the use of these have not been modelled, and with the political decision that 50% of the slurry should be gasified by 2020 there is limited time to develop the alternatives if the plants are to be in function within the period. 26 Climate effects from biomass and other energy sources – Main Report An alternative of gasification of clean household waste, i.e. without the simultaneous gasification of slurry, has been included in the calculations. This could be a scenario in for example Copenhagen or in other countries. Accordingly, the overall climate effects of the following three scenarios are modelled in the study: • 70 % maize / 30 % slurry • 48 % maize / 52 % slurry • 100 % organic household waste. The biogas is assumed to be upgraded (adjusted for CO2 etc.) for the natural gas grid, and the emissions related to the production and upgrading of biogas are shown in annex 1, including estimates of methane and nitrous oxide emissions from the processes. Other forms of upgrading, e.g. hydrogenation etc., are not included in this assessment. The establishment and operation of any low pressure biogas grid as an alternative to upgrading the natural gas grid is also not included in the present calculations. Emissions related to the productionen of maize are also described in annex 1, including iLUC from displacement of food and feed production. The emissions and energy benefits related to biogasification of organic municipal waste is modelled and described in annex 1, and here the displacement that occurs of organic municipal waste from waste incineration is also included. The reason is that the energy is already today exploited from part of the organic waste divided between an electricity production and a heat production, and with biogasification this energy production disappears and must then be replaced by something else. Main assumptions in the modelling are: iLUC is solely related to the production of maize The leakage of methane from biogas installations is set at 1%, which is a low estimate (referenced as from 1 -> 4% in the literature), and at 2% from upgrading to the natural gas grid Biogas produced from municipal waste is modelled as a displacement of waste incineration (electricity and heat). Regarding the latter point, it may seem rather unreasonable to compare electricity to a biogas instalation, which displaces both electricity and heat, whichcombined will have a higher efficiency rate. In the modelling, however, relatively low efficiency rates are applied for old waste incinerators, and if instead new biogas installations were compared with new waste incineration installations, the overall efficiency rates would be about 2-3 times higher for waste incineration in relation to biogasification of pure household waste according to Ref/26/. Applying 27 Climate effects from biomass and other energy sources – Main Report this scenario instead, the total emissions from biogasification of pure municipal waste including heat production would rise compared to the estimated figures. The example illustrates that it is possible to construct many combinations and scenarios, of which we have only selected three in this report. 6.5. Bioethanol Emissions associated with the production of bioethanol are modelled for both production of first and second generation bioethanol. First generation bioethanol is modelled with maize/wheat as raw product, while second generation bioethanol is based on straw. In both cases it is assumed biogas is produced from the waste products that cannot be used for animal feed, and that feed production (DDGS and C5 molasses) displaces other feed production and therefore has a displaced iLUC effect. The feed products are assumed to displace soybeans from Brazil and barley from Ukraine, which constitute the marginal supplies of protein feed and energy feed, respectively. There are certain uncertainties associated with this (see annex 1). Energy and protein breakdown is shown in table 4. The main assumptions in the model for first generation bioethanol are: The marginal resource for wheat and maize are crops grown in Denmark. This may lead to an underestimation of emissions of greenhouse gases (see annex 1 for details) The by-products (feed) displaces Ukrainian barley and Brazilian soy Other by-products are used in biogas installations, and the gain from this is attributed to bioethanol and not biogas. iLUC is, as for other crops, modelled as a combination of intensification and acceleration of deforestation. For the second generation bioethanol the following assumptions are applied: The point of departure has been the IBUS system (Integrated Biomass Utilisation System), which is considered “best-case” (see annex 1) The by-product C5 molasses is used as feed and displaces energy and protein from the Ukraine and Brazil. Uncertainties associated herewith are described in annex 1 and its references: Food Values of C5 molasses is not, as for other feed products, based on official food value tables. It has not been possible to verify the feed value of C5 molasses, and results related to displacements by C5 molasses should be interpreted critically. Other residues are used for biogas. The alternative use of straw is to plough it into the soil - if straw is not an available resource and would be used for something else (food, bedding, energy), the emissions from bioethanol will increase significantly. 28 Climate effects from biomass and other energy sources – Main Report It should be noted that the alternative use of straw can be modelled as ploughing it into the soil only as long as the demand for straw does not exceed the available amount. Therefore, the results may be inaccurate in some regions with high utilization rate of straw, and in the long term. ILUC is not included for straw. On the contrary, avoided iLUC due to C5 molasses is included. Table 4: Protein and energy allocation in different feed products. DM is dry matter content. From Annex 1. Source DM Protein, crude Energy % (MJ net/kg dm) 85.0% (% of DM) 10.8% Marginal source of feed protein: Soybean meal 87.4% 53.5% 10.9 By-product: Rapeseed meal 88.9% 35.0% 9.31 90.6% 17.0% 6.49 By-product: DDGS (wheat) 90.0% 32.0% 8.45 By-product: DDGS (maize) 89.0% 29.2% 10.0 70.0% 5.9% 8.05 Marginal source of feed energy: Barley By-product: Palm kernel meal By-product: C5 molasses 8.68 Modelling and assumptions are described in annex 1. 6.6. Biodiesel Two scenarios have been modelled for biodiesel: Biodiesel produced from palm oil and biodiesel produced from rapeseed. Rapeseed is modelled as produced in Denmark, while palm oil is modelled as produced in Malaysia. See Annex 1 for details. The main assumptions are: By-products displace energy and protein feed from Ukraine and Brazil ILUC is, as for other crops such as maize, modelled as a combination of intensification and acceleration of deforestation. 6.7. Coal, gas, oil, wind and solar power The primary purpose of this report is to estimate the emissions of greenhouse gases from the use of different biofuels under a given set of assumptions, and to compare these with the alternatives. Therefore, scenarios for heat and electricity based on coal, natural gas, wind power and solar power have also been created. The calculations for coal and natural gas are based on average data from electricity production in Scandinavia and based on the average electrical efficiency 29 Climate effects from biomass and other energy sources – Main Report rate of approximately 41%. New gas-fired CHP plants may, however, have significantly higher electrical efficiency rates. The calculations for wind turbines are based on a 2 MW offshore wind turbine on Middelgrunden, but excluding transmission lines. The scenario expresses a representative mix of land and offshore wind power, and is based on existing LCI data in the softeware programme SimaPro (from the ecoinvent database). Large offshore wind turbines will initally cause a greater emissions of greenhouse gases in the establishment phase, but, in turn, they produce more during the operational phase, so emissions per unit of energy will be comparable. Calculations of photovoltaic electricity are made under Danish conditions with a 3kWp roof-mounted PV system. These have an estimated production of 850kWh/kWp and a life expectancy of 30 years, which, however, is not necessarily true in practice. Again, the example is based on existing LCI data in the software program SimaPro (from the ecoinvent database). 30 Climate effects from biomass and other energy sources – Main Report 7. Results In the following, the results for each main group of biofuels are presented and interpreted, see list below. Within each main group of biofuels, results are displayed for the selected biofuels included in the present study. It is important to emphasize that each outcome for a biofuels represents one scenario, which is based on a number of concrete data and assumptions. Therefore, the results shown are generally only valid for these specific data and assumptions. For example, changes in cultivation practices for forests (e.g. share of residuals harvested or introduction of nurse trees for biomass production) will also change the results. Therefore, the results cannot be used as a final “values” for what the greenhouse gas emission are for a certain type of biofuel. Within each type of biofuel there can be large variation in greenhouse gas emissions depending on how a specific system is pieced together. Further, it should be emphasised that the purpose of the present study is: To clarify whether biofuels are CO2 neutral. To identify factors of particular importance to greenhouse gas emissions from biofuels. To undertake an indicative comparison of the analyzed biofuels and their fossil alternatives. It should also be highlighted that the purpose is not to make a general ranking of biofuels - but the identification of certain issues of great influence, as well as the indicative comparison with fossil fuels can be used to identify the conditions under which certain biofuels will cause highler or lower levels of emissions than others. Results are shown for the following main groups of biofuels: Electricity Cultivated wood (illustrated by various scenarios for wood pellets) Residues from forestry and agriculture (illustrated by various scenarios for wood chips and straw) Biogas (illustrated by biogas produced from various raw materials) Other than biofuels (coal, gas, wind and solar power). Liquid fuels Biodiesel (illustrated by biodiesel based on rapeseed oil and palm oil) Bioethanol (illustrated by first generation bioethanol from wheat and maize and second generation bioethanol from straw) Other than biofuels (mineral diesel and petrol). 31 Climate effects from biomass and other energy sources – Main Report Regarding the analyzes of electricity, it must be noted that the focus has been solely on electricity produced by condencing, i.e. 100% electricity and no cogeneration with heat). The reason for this is that a marginal change in demand for electricity will always affect condensing, since electricity production that is co-generated with heat, can generally be characterized as a dependent product of heat generation. All results are shown divided into three categories of contribution to the total emission of greenhouse gases: iLUC (red in the figures): Indirect land use changes. Accelerated/delayed emissions and uptake (green in the figures): This concerns the effect caused by the timing of CO2 emissions and absorbtion Process emissions (blue in the figures): This relates to everything else. It covers, inter alia, emissions from the use of diesel, electricity, fertilizer etc. Since the overall results are divided into the above three categories, it is easy to get an overview of the level the greenhouse gas emissions, if e.g. iLUC or the time-dependent CO2 emissions and absorbtions are disregarded. 32 Climate effects from biomass and other energy sources – Main Report 7.1. Electricity based on cultivated wood The following results are based on a calculation of greenhouse gas emissions from cultivated wood in three representative climatic zones, Latvia, Southeast U.S. and Brazil. All harvested wood is assumed used for wood pellets. The harvested wood includes heartwood and 80% of the residues from logging - both 80% of the residues above the ground and 80% of residues in the soil. All scenarios in this category are shown for wood pellets. If the electricity is produced from wood chips made from cultivated wood, the results will be slightly different. About the same as what is saved by using wood chips instead of pellets is lost again due to a lower efficiency rate in the power plant. The accuracy of data is not strong enough to determine whether one is better than the other. Particularly important assumptions in the modelling are: Modelling of forest management: Forest management is modelled by the so-called ‘stand-level approach’, where it is assumed that a change in demand for wood is met by logging a corresponding volume of timber, followed by replanting and growth of new trees. Another approach, which is not used in this study, is the so-called ‘landscape level approach’ (Ref/30/). A ‘landscape level approach’ assumes that the forest is at equilibrium with continuous inputs of CO2 uptake and outputs of logged wood and decomposition of dead wood. Since a ‘landscape level approach’ represents an average of a larger forest area, and because it does not include the effect of requesting an additional quantity of wood, this approach is not adequate for use in the applied consequential approach to modelling of this LCA study. Indirect land use changes (iLUC): When there is a demand for cultivated wood, this requires a certain area during a certain period of time. This is expressed in hectares years (area times time). It is assumed that it is the demand for land suitable for forestry that constitutes the reason why uncultivated forest is converted into cultivated forest. If 1 hectare is demanded for 1 year, then the indirect impacts on land use change are modelled as an acceleration of conversion of uncultivated forest to cultivated forest by one year. Resulting CO2 emissions are estimated based on the average carbon stock in secondary forest (assumed that this type of uncultivated forest is converted to cultivated forest) and in cultivated forest. These data do not relate to the specific affected forest area but to the indirect effects caused by demanding more land for forestry. The assumption here is that the land used for forestry cannot be used for agriculture (and is thus not part of the market for agricultural land). If this was not the case, iLUC emissions would be significantly larger. In addition, it is assumed that a change in the demand for forest land does not to affect yields elsewhere (intensification). Intensification can be seen as a substitute for land. This delimitation has been made more due to a lack of data in time series of forest yields globally, than due to an argument that intensification is not happening or will not happen. However, it should be noted that intensification is not necessarily CO2 neu- 33 Climate effects from biomass and other energy sources – Main Report tral – particularly not if it is obtained by fertilization with Nitrogen fertilizer or by drainage of organic soils. It should be noted that there are also other methods of evaluating the effect of land use changes (LUC): Direct effects involving 1/20th of the historical land use changes that have occurred in the specific cultivated plot over the last 20 years. This approach is used for example in PAS2050. Since this approach does not take indirect effects into account, it is not considered appropriate to fulfill the purpose of the present study. As an example, the use of Danish wood would not cause any LUC, since there have not been any significant changes in land use over the past 20 years in Denmark. It will also not be taken into account that the Danish forestry would only be affected in a very small scale since the cultivated forest area cannot be changed due to changes in the demand for wood, or only to a very small extent. Economic general or partial equilibrium models. These models are based on globale economic models and prise elasticities. Since this approach uses price elasticities there is an imbalance between production and demand (which is generally assumed to go together in LCA). Moreover, price elasticities are generally only applicable within relatively short time periods (0-3 years), and therefore it is questionable how valid results will be in the long run. Since the purpose of this screening is to provide decision support for the long term, the short-term validity of price elasticities is considered to be problematic. Therefore the economic models are not considered suitable to fulfill the purpose of the present study. Table 5: Main assumption for biofuels based on cultivated wood. Representative climate zone and specie Assumptions for modelling Rotation time, years Annual growth, m3/ha/year (commodity timber, roundwood) Eucalyptus, Brazil Loblolly Pinewood, S.E. U.S. Pinewood, Latvia 6 50 12 14 63 6 34 Climate effects from biomass and other energy sources – Main Report Figure 7: Emission of greenhouse gases from power production from the modelled scenarios for cultivated wood measured as CO2e in a 100-year and a 20-year perspective. 35 Climate effects from biomass and other energy sources – Main Report Comments on the results: The shorter the time horizon for GWP, the greater the greenhouse gas emissions. The longer the rotation time and the cooler the climate, the greater the greenhouse gas emissions. Transportation is not unimportant (the main process emissions = the blue portion of the bars, are made up of transport). Therefore, process emissions are significant for Brazil and the U.S., but less so for Latvia. In principle, the contribution of iLUC should/could be the same for all scenarios, as harvest should/could be proportional to the potential net primary production that determines iLUC. The differences can be explained by different utilization of the potential yields in the various regions and data uncertainties in yields (heartwood + residues). Emissions from 1 kWh of electricity based on coal and gas approximately account for 1 kg CO2e and 0.6 kg CO2e respectively (both GWP100 and GWP20). Therefore, it is evident from the results that under the given assumptions, the emissions from electricity based on cultivated wood are less and up to the same level as natural gas for GWP100, and at the same level as natural gas and up to twice that of coal for GWP20. Uncertainties in the data input, however, entails that the above comparison is associated with large uncertainties. However, it can reasonably be concluded that energy production from cultivated wood is not CO2-neutral and that in some circumstances it may be associated with higher emissions than the fossil alternatives, it replaces. This result is consistent with the findings of several other studies, for example Ref/21/ which is also reproduced in annex 2. 36 Climate effects from biomass and other energy sources – Main Report 7.2. Electricity based on residual products from forestry and agriculture The results in the following are based on a calculation of GHG emissions from residues from forestry and agriculture. Residues from forestry are analyzed for the same representative climate zones as cultivated wood, Latvia, Southeast U.S. and Brazil, and agricultural residues (straw) are analyzed for Denmark. An important assumption for all the scenarios in this category is that residues are available, and that an increased demand will translate into a reduced amount of residues left in the forest/on the field and mixed into the soil over time. If the assumption that the residues are not fully utilized does not hold, then a change in demand is likely to “switch” the scenario into the category of cultivated wood instead: If restudies from timber are demanded, and such residues are fully exhausted, then the marginal effect is that additional wood needs to be cultivated. There is, however, also a third option in an increased production of these residues, e.g. through selective breeding of cereals with higher straw yields, which is not considered here. The results in this category can only be used where there is a guarantee that the residues are not fully utilized - both here and now, and into the future. If these results are used as decision support for an energy system over the next 10 years, it must be ensured that the residues are not fully utilized the next 10 years, otherwise the assumptions underlying the calculations are not representative. All scenarios in this category are shown for wood chips. If electricity is produced from wood pellets, but still from residues, then the results will change slightly. Roughly the same as that is used extra in pelletizing, is regained by a higher efficiency rate in the power plant. The accuracy of data is not strong enough to say whether one is better than the other. Particularly important assumptions in the modelling are: Modelling of residual products: Degradation times for residues from forestry and agriculture are calculated using the model RothC. The model has the advantage that it is based on a few input data (carbon inputs, soil type and climate), and that it can be applied for all countries. The drawback is that differences in factors such as soil type, and distribution of precipitation over the year etc. in the individual countries is not taken into account in the model. However, the model shows a clear trend of longer degradation times in cooler climates. Indirect land use changes (iLUC): When residual products are demanded, there is no iLUC. 37 Climate effects from biomass and other energy sources – Main Report Figure 8: Emission of greenhouse gases from power production from the modelled scenarios for residual products from forestry and agriculture measured as CO2e in a 100-year and a 20-year perspective. See annex 1 for details. 38 Climate effects from biomass and other energy sources – Main Report Comments on the results: The shorter the time horizon for GWP, the greater the greenhouse gas emissions – the difference is, however, considerably smaller than for cultivated wood. Since straw generally has a shorter degradation time than residues from forestry, greenhouse gas emissions from electricity based on straw are lower than electricity from forest residues. The cooler the climate, the greater the greater the greenhouse gas emissions (the green portion of the bars). Transportation is not unimportant (the main process emissions = the blue portion of the bars, are made up of transport). Therefore, process emissions are significant for Brazil and the U.S., but less so for Latvia, and least so for Danish supply of straw. If residues are fully utilized within the time frame of when the LCA is used as decision support, the are prerequisites for the results are no longer present, and it is more correct to apply the results for cultivated wood. Overall, greenhouse gas emissions from residues are lower than for cultivated wood. Emissions from 1 kWh of electricity based on coal and gas are approximately 1 kg CO2e and 0.6 kg CO2e, respectively (both GWP100 and GWP20). Therefore, it is apparent from the modelling that under the given assumptions, the emissions from electricity based on residues are lower and up to the same level as natural gas. Uncertainties in the data input, however, entails that the above comparison is associated with large uncertainties. However, it can reasonably be concluded that energy production based on residual products is not CO2 neutral, and that greenhouse gas emissions for residues are likely to be somewhat lower than for natural gas. The results indicate with the higest certainty, that straw and forestry residues from warm climates have lower emissions than natural gas. 39 Climate effects from biomass and other energy sources – Main Report 7.3. Electricity based on biogas The following results are based on a calculation of greenhouse gas emissions from electricity based on biogas from manure (calculated as cattle manure), maize silage and organic household waste in Denmark. Particularly important assumptions in the modelling are: Results for biogas opgraded to the natural gas grid: All results are for biogas that is upgraded to natural gas quality (96% methane). This leads to higher greenhouse gas emissions than direct use of raw biogas. Results for the use of raw biogas in the production of electricity are included in the comments on the results. Results for biogas from agriculture are a mix of slurry and maize: Results for electricity from biogas from agriculture are a mix of biogas from slurry and maize silage. It is possible to use other substrates than maize silage and other ratios between manure and maize silage than the analyzed. These are, however, not included in the present LCA screening. Isolated results for biogas from slurry and maize silage respectively, are included in the comments on the results. Scenario for biogas from organic household waste: An important assumption for the calculations for the scenario with organic household waste is that increased biogasification entails correspondingly reduced waste incineration. Hereby, the heat and electricity that is recovered by incineration is lost, and this must be compensated by marginal electricity and heat supply. It may seem distorting to the results that fuel (organic waste) is removed from the incineration installations that produce both electricity and heat to a usage where only electricity is produced. The reason for the choice of modelling is the functional unit of the present study, which only includes electricity. Since the overall efficiency rate of heat production (which is co-generated with electricity) is much higher than for pure electricity production, this, overall, means less for the result.7 Modelling of slurry as a residual product from animal production: An important assumption in the calculations for slurry, which is a residue, is that it is not fully utilized for energy purposes and that an increased demand will translate into a reduced amount of residue that is spread on agricultural land without prior gasification. If the assumption that the residues are not fully utilized does not hold, a change in demand shifts to another energy source. The reason that the efficiency rate for heat is higher is: Heating is co-generated with electric power, typically 0.6 MJ heat and 0.3 MJ electricity per input of fuel (values are for illustration only). I.e. 1 MJ heat requires 1.66 MJ fuel. In addition to this, 1 MJ heat is co-generated with 0.5 MJ electricity. This displaces alternative production of (marginal) electricity. Marginal electricity is generally always generated by condensing, where the efficiency rate is approximately 40% (value for illustration only). I.e. the displaced 0.5 MJ electricity are related to the displaced 1.25 MJ fuel. This amounts to a total fuel consumption of 1.66 MJ - 25.1 MJ = 0.41 MJ per MJ heat produced. This corresponds to an overall efficiency rate of ~ 240%. 7 40 Climate effects from biomass and other energy sources – Main Report Therefore, the results for biogas from manure can only be used where there is a guarantee that the residues are not fully utilized - both here and now, and also into the future. If these results are used as decision support for an energy system over the next 10 years, it must be ensured that the residues are not fully utilized the next 10 years, otherwise the assumptions underlying the calculations are not representative. It should be noted that the animal production is not changed because the slurry is biogasified. Indirect land use changes (iLUC): Maize silage is the onle of the raw materials for biogas production that is related to iLUC. When land is demanden for the cultivation of raw materials, it requires a certain area for a given period of time. This is expressed in hectare years. It is assumed that it is the demand for land suitable for agriculture (crop farming) that causes uncultivated forest to be converted into agricultural land and, existing cultivation to be intensified by an increased application of fertilizers etc. If 1 hectare year is demanded for 1 year, the indirect impacts on land use change are modelled partly as acceleration of conversion of uncultivated forest to farmland by a year, and partly as application of extra fertilizer and associated emissions to existing cultivated land. CO2 emissions from land use change are calculated using the average carbon stock in secondary forest (assumed that this type of uncultivated forest is converted into agriculture) and in agriculture. It should be noted that other ways to evaluate the effect of land use changes (LUC) are also available: Direct effects involving 1/20th of the historical land use changes that have occurred in the specific cultivated plot over the last 20 years. This approach is used e.g. in PAS2050. Since this approach does not take indirect effects into account, it is not considered appropriate to fulfill the purpose of the present study. As an example, the use of Danish agricultural land would not cause any LUC, since there have not been any significant changes in land use over the past 20 years in Denmark. It will also not be taken into account that the Danish agriculture would only be affected in a very small scale since the areable land area cannot be changed due to changes in the demand for agricultural land, or only to a very small extent. Economic general or partial equilibrium models. These models are based on globale economic models and prise elasticities. Since this approach uses price elasticities there is an imbalance between production and demand (which is generally assumed to go together in LCA). Moreover, price elasticities are generally only applicable within relatively short time periods (0-3 years), and therefore it is questionable how valid results will be in the long run. Since the purpose of this screening is to provide decision support for the long term, the short-term validity of price elasticities is considered to be problematic. Therefore the economic models are not considered suitable to fulfill the purpose of the present study.8 Price elasticities are generally valid only in the short term (0-3 years). In the long term it can be argued that the price elasticity is approaching 100%, i.e. full elsticity between demand and production. 8 41 Climate effects from biomass and other energy sources – Main Report Figure 9: Emission of greenhouse gases from power production from the modelled scenarios for biogas measured as CO2e in a 100-year and a 20-year perspective. Net emissions are the summation of the negative and positive values and are shown numerically above the pillars. See annex 1 for details. The reason for this is that it is the marginal productions costs that determines the cost, and not variations in demand. 42 Climate effects from biomass and other energy sources – Main Report Comments on the results: The shorter the time horizon for GWP, the greater the greenhouse gas emissions (at a large share of maize) Process emissions (the blue bars) are dominated by methane emissions from biogas production and upgrading. In the scenario with biogas from manure, this is negative. This is due the fact that more methane emissions are avoided from storage of manure than is emitted from biogas production and upgrading. The results shown for manure and maize silage consist of two different mixes. Greenhouse gas emissions from 1 kWh of electricity to increase bio-gasification of manure alone is -0.651 kg CO2e/kWh electricity, while for gasification of maize silage alone it is 1.13 kg CO2e/kWh electricity (GWP100). It can therefore be concluded that biogasification of manure is a good idea, while biogasification of maize silage is associated with high levels of greenhouse gas emissions. The results shown are for upgraded biogas: 0.592 kg CO2e/kWh 70% maize/30% slurry and 0.201 kg CO2e/kWh 48% maize/52% slurry (GWP100). Greenhouse gas emission from 1 kWh of electricity from electricity production based on raw biogas is 0.401 kg CO2e/kWh 70% maize/30% slurry, and 0.0103 kg CO2e/kWh 48% maize/52% slurry (GWP100). Thus, there is a saving potential of approximately 190 g CO2e/kWh by using raw biogas instead of upgraded biogas - given the applied assumptions concerning the upgrading of biogas. On the other hand, upgrading offers other advantages in terms of storage in the natural gas grid and future usage also for motor fuel. Emissions from 1 kWh of electricity based on coal and gas are approximate respectively. 1 kg CO2e and 0.6 kg CO2e (both GWP100 and GWP20). Therefore, it is evident that under the given assumptions, the emissions from electricity from biogas is on a par with electricity from natural gas (although it is lower than natural gas at mixes with much manure and little maize) by GWP100. At GWP20 biogas is on a par with electricity from coal (although it is lower than natural gas at mixes with much manure and little maize). Uncertainties in the data input, however, entail that the above comparison is associated with very large uncertainties. Therefore, it can not be concluded that biogas is on par with natural gas and coal for respectively GWP100 and GWP20. Instead, it can be concluded that biogas under certain conditions may be associated with greenhouse gas emission levels that are up to the same level as fossil fuels. The uncertainties have as an implication that emissions from biogas can be both larger and smaller than shown in the results. Calculations are based on low values of methane loss from biogas production, and emission levels will be sensitive to these losses. The above comparison is very sensitive to the amount of slurry and the amount of maize used as raw material. Therefore, if there are available alternatives to maize, that are not fully utilized, greenhouse gas emissions can be significantly reduced. Examples could be straw and other residual products that are not currently fully utilized, provided these are not taken from existing usage. 43 Climate effects from biomass and other energy sources – Main Report 7.4. Electricity based on coal, gas, wind and solar The results in the following are based on a calculation of greenhouse gas emissions from electricity based on coal, natural gas, wind, and solar in Denmark. Unlike the biofuel scenarios, these scenarios are based directly on the data available in the ecoinvent LCA database. In addition to the burning of coal and gas in itself, the data here includes manufacturing, maintenance and disposal of productions stock, as well as infrastructure. 44 Climate effects from biomass and other energy sources – Main Report Figure 10: Emission of greenhouse gases from production of electricity from the modelled scenarios for coal, gas, wind and solar measured as CO2e in a 100-year and a 20-year perspective. See annex 1 for details. Comments on the results: Timeframe for GWP has no significant influence. Coal, gas, wind and solar are not associated with ILUC and timedependent CO2 emissions. Therefore, there are no green and red contributions to the pillars in the results. 45 Climate effects from biomass and other energy sources – Main Report 7.5. Liquid fuels: Biodiesel The results in the following are based on a calculation of GHG emissions from the production and burning of biodiesel based on palm oil and rapeseed oil. Particularly important assumptions in the modelling are: Data on biodiesel production: Data for production of biodiesel from vegetable oil is represented by data for normal refining (neutralization, bleaching, deodorisation) of vegetable oil for food etc. purposes. This assumptiom is considered to have minimal effect on the results.9 Geography for raw materials and by-producs: Raw material for rapeseed biodiesel, i.e. rapeseed is assumed produced in Denmark. A by-product of rapeseed production is rapeseed cake. Rapeseed cake is used for animal feed, and hereby displaces marginal protein (Brazilian soy meal) and feed energy (Ukrainian barley). It should be noted that the Danish agricultural production is not flexible - in the sense that increased rapeseed production can only be achieved by displacement of other crops, e.g. barley or wheat. Hereby, the marginal influence of Danish rape is for Ukrainian barley, and greenhouse gas emissions will increase. This means that the calculated emissions for rapeseed biodiesel can be underestimated. Indirect land use changes (iLUC): See description of iLUC in the result section on biogas. Strong data is available for ‘normal’ refining and there is no immediate access to the same strong data for transesterification. Refining generally means very little for the LCA results for vegetable oils. 9 46 Climate effects from biomass and other energy sources – Main Report Figure 11: Emission of greenhouse gases from production and combustion of biodiesel from rapeseed oil and biodiesel from palme oil measured as CO2e in a 100year and a 20-year perspective. See annex 1 for details. 47 Climate effects from biomass and other energy sources – Main Report Comments on the results: The shorter the time horizon for GWP, the greater the greenhouse gas emissions. The difference is partly due to the importance of the time horizon for ILUC (red part of the result columns), and partly because palm oil is associated with considerable methane emissions. GWP20 for methane is substantially greater than GWP100. The latter is categorized as process emissions (blue part of the result columns). Process emissions (the blue columns) are dominated by emissions of N2O from the soil, the production of nitrogen fertilizers, and for palm oil of methane emissions from wastewater treatment. Differences in iLUC for biodiesel based on rapeseed oil and palm oil are caused by rapeseed oil being associated with significantly more by-products (oil cake) than palm oil. The oil cake displaces Brazilian soy meal and Ukrainian barley. Emissions from the production and combustion of 1 MJ diesel is 8688 g CO2e (both GWP100 and GWP20). Therefore, it is apparent that under the given assumptions, the greenhouse gas emissions for all scenarios except rapeseed biodiesel in GWP100, are higher than diesel. Rapeseed biodiesel by GWP100 is related to about the same amount of greenhouse gas emissions as diesel. Uncertainties in the data inputs are limited compared to other biofuels analyzed in this LCA screening. Uncertainties for iLUC, however, are relatively large. 48 Climate effects from biomass and other energy sources – Main Report 7.6. Liquid fuels: Bioethanol The results in the following are based on a calculation of greenhouse gas emissions from the production and combustion of first and second generation bioethanol. First generation bioethanol is analyzed using respectively wheat and maize as raw material, and second generation bioethanol is analyzed using straw as raw material. Particularly important assumptions in the modelling are: Geography for raw materials and by-products: Raw materials, i.e. wheat, maize and straw, are assumed produced respectively in Denmark, Europe and Denmark. By-products from bioethanol production are DDGS (for first generation) and C5 molasses (for second generation). Both are used for animal feed, and hereby displace marginal protein (Brazilian soy meal) and feed energy (Ukrainian barley). The effcient Danish production of raw materials, and the displaced more inefficient Brazilian and Ukrainian production of marginal feed protein and feed energy, entail that emissions are relatively low - especially for second generation bioethanol, which shows negative values. It should be noted that the Danish agricultural production is not flexible - in the sense that increased wheat production can only be achieved by displacement of other crops, such as barley. This makes the marginal influence of Danish wheat to Ukrainian barley, and greenhouse gas emissions will increase. Results for bioethanol, where the marginal raw material is Ukrainian barley are included in the comments on the results. Feed values: Data for feed values of C5 molasses is not based on official feed tables. Therefore, the uncertainty in these data must be considered significant. Limits to the utilization of DDGS: The global production of bioethanol has been and is growing, and several researchers highlight that a limit for how much DDGS can be mixed into animal feed will be reached within a few years. When or if this becomes the case, then the marginal effect of DDGS si no longer displacement of animal feed, but something else - most likely it will be used as a form of biofuels, including upgrading to bioethanol or utilization for biogas by other methods. It is not certain that this application will have the same large displacement effects as the use as animal feed, and therefore greenhouse gas emissions may be greater in the long term. Indirect land use changes (iLUC): See description of iLUC in the result section on biogas. 49 Climate effects from biomass and other energy sources – Main Report Figure 12: Emission of greenhouse gases from production and combustion of first and second generation bioethanol measured as CO2e in a 100-year and a 20-year perspective. Net emissions are the summation of the negative and positive values and are shown numerically above the pillars. See annex 1 for details. 50 Climate effects from biomass and other energy sources – Main Report Comments on the results: The timeframe for GWP is of less importance than for other biofuels. Process emissions (the blue columns) are dominated by emissions of N2O from the soil (fertilization) and the production of nitrogen fertilizers (both positive contributions in Denmark and displaced contributions in Brazil and Ukraine). As mentioned above, the modelling of the Danish wheat probably does not represent the marginal effect of demanding wheat in Denmark. Therefore, the scenario for first generation bioethanol from wheat is also analyzed with a commodity input consisting of Ukrainian barley. This analysis changes greenhouse gas emissions (GWP100) from 0.035 kg to 0.329 kg CO2e/MJ. The results are therefore very sensitive to the marginal impact of crops (including their productivity - the higher the productivity the lower the emissions). It should also be noted that wheat in Denmark is associated with particularly low greenhouse gas emissions as part of the straw is used for energy purposes, and because nitrogen utilization in Danish agriculture is very high. Emissions from the production and combustion of 1 MJ petrol is 92-99 g CO2e (both GWP100 and GWP20). Therefore, it is apparent that under the given assumptions, greenhouse gas emissions for all scenarios are less than petrol. However, it should be noted that the Danish wheat and European maize does probably not correspond to the marginal effect of demanding such crops - and above is explained that this can have considerable impact on the results. Further, uncertainties in data inputs entail that the above comparison is associated with very large uncertainties. 51 Climate effects from biomass and other energy sources – Main Report 7.7. Liquid fuels: Diesel and petrol The results in the following are based on a calculation of greenhouse gas emissions from the production and combustion of diesel and petrol. Unlike the biofuel scenarios, these scenarios are based directly on data available in the ecoinvent LCA database. In addition to the combustion of diesel and petrol in itself, the data here includes manufacture, maintenance and disposal of production stock, as well as infrastructure. 52 Climate effects from biomass and other energy sources – Main Report Figure 13: Emission of greenhouse gases from production and combustion of diesel og petrol measured as CO2e in a 100-year and a 20-year perspective. See annex 1 for details. 53 Climate effects from biomass and other energy sources – Main Report 7.8. Comparaison with literature review from JRC As mentioned, the European Commission's Joint Research Centre (JRC) recently published a report on the same subject (Ref/21/) based on a critical review of existing literature. The concluding chapter of this report is attached in annex 2. JRC in their report undertake a qualitative comparison of emissions from various types of biomass for energy production, based on existing literature. This is illustrated in Table 6. Table 6: Qualitative comparaison of emissions of greenhouse gases from different bio based energy sources in relation to the fossil alternatives. From Ref/21/. As apparent from the table, there is consistency between JRC’s qualitative table and the results calculated in this model for the relevant products. Accordingly, JRC points out that for whole trees from temperate and boreal climate zones used in energy production there is only a climate benefit over the very long term (centuries), while there is only a slight advantage in energy production on residues/thinnings in a 50-year perspective. The use of industrial residues (sawdust, etc.) is an absolute advantage, provided that this utilization does not displace other uses (MDF products and the like). New plantings on marginal lands also provide a definite advantage, but here it should be noted that Ref/19/ based 54 Climate effects from biomass and other energy sources – Main Report on an economic modelling finds that biomass production on marginal soils is unrealistic and virtually impossible to carry out in practise, and that this would ultimately result in substantial interferences with the natural forests and productive farmland. In any case such production requires strong political will, and global regulation and control. 8. Discussion and conclusion This report calculates the climate impact from a variety of different sources at an overall level with particular focus on energy from biomass. The purpose of this study is: To clarify whether biofuels are CO2 neutral. To identify factors of particular importance to the greenhouse gas emissions from biofuels. To carry out an indicative comparison of the analyzed biofuels and their fossil alternatives. The results show that virtually none of the energy sources using the selected assumptions and calculation methods are CO2 neutral, and that several of them depending on the chosen time horizon - may have an emission level that is on par with or greater than the fossil energy sources they replace. In this regard, it should be emphasized that the calculated results are based on data inputs with substantial uncertainties, as well as a number of methodological choices. Therefore, the results in this report cannot be used to conclude whether certain biofuels are better or worse than the fossil fuels they are intended to replace, unless the applied assumptions are representative. If compared to other similar studies (see e.g. Table 6 and Annex 2), the results, however, largely coincide. The calculations show that biomass produced on residueal products and straw has lower emissions than biomass produced on whole trees and commersial crops, and that energy based on wood from climate zones with short rotation times are more beneficial to the climate than energy made from wood from climate zones with long rotation times. For biogas, the calculations show that biogas based wholly or partially on energy crops will increase the climate impact compared to biogas based solely on manure. The calculations also show that the climate impact of biogas is sensitive to the amount of leakage of methane from the installations, which therefore should be a major concern. Finally, the calculations show that wind and in part also solar power, generally result in less strain on the climate than electricity from most types of biomass. 55 Climate effects from biomass and other energy sources – Main Report For most biofuels, the selected time horizon for calculating greenhouse gas emissions (GWP) has significant importance. Generally, a shorter time horizon implies greater greenhouse gas emissions measured as GWP. For the liquid fuels, the same applies as for the solid fuels and for biogas; biofuels based on waste products (manure) means lower greenhouse gas emissions than biofuels from cultivated crops/forestry products. Finally, ILUC effects cannot reasonably be disregarded, and they can have a significant impact on the total climate impact. This report focuses exclusively on the climate effects of different types of energy. Sustainability as a concept usually encompases wider factors than solely the emission of greenhouse gases. For example, biodiversity poses a particular challenge to biomass because it requires so much land, and also often relies on large amounts of water and additives. Accordingly, in more general LCAs of biomass for energy purposes, the impact on biodiversity is often one of the most critical parameters when the overall environmental impact is weighted. In addition, the use of agricultural land for bioenergy can affect food production and food prices, which can have significant social consequences. The discussion about climate impacts and the alleged CO2-neutrality of biomass has long been debated within the scientific community. It has by now gained more general political interest and timeliness, partly from a criterion to ensure that the selected instruments have the expected climatic effects, but also from an investment point of view where investments also in the long run should prove to be the right ones, and prove to be economically viable, and not made on partially false pretenses as it has been the case with the biodiesel industry in Europe. The evaluation of sustainability and climate impacts of biomass for energy purposes initiated by the Danish Government is an example of this rising political interest. Anorther example is magazines like The Economist in an article and editorial (Ref/24/) expressing even highly critical views of the alleged positive climate impact of the use of biomass for energy purposes, including economic security and political sense of reason in the related investments and instruments. This more critical focus on biomass stresses that in the long run it is in everyone's interest that the climate impacts are determined as accurately as possible. The uncertainties in the data of the present study are significant. Looking ahead, it is recommended that these uncertainties are reduced. This in particular applies to: modelling of ILUC, assessment of potentials for the use of residuals, 56 Climate effects from biomass and other energy sources – Main Report identification of the marginally affected suppliers of raw materials for biofuels, i.e. where crops are grown and which regions forestry is affected in. Finally, it is important also to be aware of the time horizon applied. As shown in the results, many types of biomass pose particular challenges when it comes to climate impacts over shorter time horizons of less than 50 years. This is evident from the results with a time horizon of 20 years in this report. In practice this means that some biofuels will increase the concentration of greenhouse gases in the atmosphere in the short term. The present study has not focused on determining the appropriate timeframe to be applied. Based on the results, it is recommended to operate with more than one timeframe in analyzes of the impact on greenhouse gas emissions from biofuels. Since the current political task is to reduce emissions of greenhouse gases here and now with a relatively large annual reduction, this will be extremely difficult to achieve using biomass from crops with other than very short rotation times, especially if the use of biomass results in a reduction in the growth many forests outside the tropics have today. The challenge here is that the use of biomass must boost net growth and sequestration in the short term, which will be a considerable challenge when other sustainability parameters simultaneously have to be taken into account. It is the intention of CONCITO with this report and the methodology described to have contributed to a more nuanced view of the climate impact of biomass even if the result is that Denmark's objective of a 40% reduction in emissions of greenhouse gases by 2020 compared to 1990 de facto will be significantly harder to achieve if the biomass is not considered to be climate neutral. 57 Climate effects from biomass and other energy sources – Main Report 9. References /1/ Reducerer brug af biomasse atmosfærens indhold af CO2?, CONCITO, november 2011. /2/ Opinion of the EEA Scientific Commitee on Greenhouse Gas Accounting in Relation to Bioenergy; European Environment Agency, Scientific Committee, 15 September 2011. /3/ McKechnie et al.: Forrest Bioenergy or Forrest Carbon? Assesing TradeOffs in Greenhouse Gas Mitigation with Wood-Based Fuels; Environ. Sci. 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