THE ROLE OF BIOENERGY IN THE CLEAN ENERGY TRANSITION AND SUSTAINABLE DEVELOPMENT - LESSONS FROM DEVELOPING COUNTRIES
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THE ROLE OF BIOENERGY IN THE CLEAN ENERGY TRANSITION AND SUSTAINABLE DEVELOPMENT LESSONS FROM DEVELOPING COUNTRIES 1
Published by UNIDO in 2021 THE ROLE OF BIOENERGY IN THE CLEAN ENERGY TRANSITION AND SUSTAINABLE DEVELOPMENT LESSONS FROM DEVELOPING COUNTRIES © UNIDO April 2021. All rights reserved. This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its fron- tiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” or “developing” are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. Cover image: Copyright by Kletr, Shutterstock INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT 3
TABLE OF CONTENTS ACRONYMS AND ABBREVIATIONS ACSD Albanian Center for HHEA Household Energy PDD Program Design Document Sustainable Development Economic Analysis Acronyms and Abbreviations 5 Acknowledgements and Foreword 6-7 ASEAN Association of Southeast HIC High Impact Countries PoA Program of Activities Asian Nations Executive Summary 8-9 BEIA Biomass Energy Initiative ISBWG International Sustainable PPA Power Purchase Agreement for Africa Bioeconomy Working Group 1 Role of Bioenergy in Stimulating the Bioeconomy in DCs and LDCs 1.1 Sustainable bioeconomy 10 King Mongkut's University BRL Brazilian Real KMUTT of Technology Thonburi ProAlcool National Alcohol Program 1.2 Bioenergy and bioeconomy in DCs and LDCs 10 1.3 Bioenergy and the Sustainable Development Goals 11 Private Sector Guarantee CCL Consumer’s Choice Limited KSD Khongsedone Ltd PSGF Fund 1.4 Enabling policy environment 13 1.5 Bioenergy projects: success factors 13 CC-SF Clean Cooking Social kWel Kilowatt electrical R&D Research and Development Facility 2 Biomass and Technologies 2.1 Introduction 14 CHP Combined Heat and Power kWth Kilowatt thermal RE Renewable Energy 2.2 Case Study #1: Large-scale production of white and black pellets – Futerra Fuels, Portugal 16 CO₂ Carbon dioxide kWh Kilowatt-hour RFS Renewable Fuel Standard 2.3 Case Study #2: Olive oil sector as a bioenergy supplier in Albania 18 2.4 Case Study #3: Biomass/charcoal briquettes in Uganda 21 COP Conference of Parties kWhel Kilowatt-hour thermal ROI Return on Investment 2.5 Biomass and the Sustainable Development Goals 24 2.6 Success factors and challenges 24 CSTR Continuous Stirring Tank kWhth Kilowatt-hour electrical SCIP Strategic Climate Reactor Institutions Program 3 From Waste to Biogas Lao People's Democratic Sustainable Development DC Developing Country Lao PDR Republic SDG Goal 3.1 Introduction 26 3.2 Case Study #1: Waste from food processing for captive power – Department for Stockholm Environment DFID International Development LDC Least Developed Country SEI Institute Biogas from avocado waste in Kenya 27 3.3 Case Study #2: Biogas-based electricity generation for export to the Liquor Distillery EGM Expert Group Meeting LDO Organization Excise SME Small and Medium grid from food production residues in Brazil 28 Enterprise Department 3.4 Case Study #3: Waste from agro-business for biogas production from vegetable residues and maize stalks in Kenya 30 EMD Ethanol Micro Distillery LHV Lower Heating Value SSA Sub-Saharan Africa 3.5 Biogas and the Sustainable Development Goals 31 3.6 Success factors and challenges 33 EPA Environmental Protection lpd Liters per Day SS-TT South-South Technology Authority Transfer 4 Liquid Biofuels – The Alcohols Tanzanian Bureau of EUR Euro m³ Cubic meter TBS Standards 4.1 Introduction 35 4.2 Case Study #1: Tanzania bioethanol cooking program – a stove and Food and Agriculture fuel delivery facilitation project 36 FAO Organization of the United M&E Monitoring and Evaluation TIB Tanzania Investment Bank Nations 4.3 Case Study #2: Ethanol production from cassava in Thailand – a case FIRI Food Industries Research MEF Market Enabling Framework TPSF Tanzanian Private Sector of south-south technology transfer 39 Institute Foundation 4.4 Case Study #3: Demonstrating the feasibility of locally produced ethanol for household cooking in Addis Ababa, Ethiopia 41 FIT Feed-in Tariff MEL Monitoring, Evaluation and US United States Learning 4.5 Liquid biofuels and the Sustainable Development Goals 44 4.6 Success factors and challenges 44 FWFCA Former Women Fuelwood MW Megawatt USD US dollar Carriers’ Association 5 Challenges in implementing bioenergy projects GBE Green Bio Energy MWel Megawatt electrical VAT Value Added Tax 5.1 Policy and regulatory framework 47 5.2 Economics and finance 48 Very High Gravity GDP Gross Domestic Product NDF Nordic Development Fund VHG-SSF Simultaneous 5.3 Feedstock supply, process and technology 49 Saccharification and 5.4 Capacity building and communication 51 Fermentation Global Environmental National Science and GEF Facility NSTDA Technology Development VP Vegpro 6 Conclusions and Recommendations 52 Agency Bibliography 54 GHG Greenhouse Gas Nm³ Normal cubic meter WB World Bank GL Gigaliter O&M Operation and Maintenance WHO World Health Organization 4 5
ACKNOWLEDGEMENTS FOREWORD This publication has been prepared to highlight the lessons learned Reaching the targets set by the Paris Agreement, the most vulnerable and under-served people, at the same from 15 projects of the Global Environmental Facility (GEF) 2030 Agenda for Sustainable Development and the relat- time, helping to reduce dependency on fossil fuels and implemented by UNIDO. ed Sustainable Development Goals (SDGs) was always the associated greenhouse gas (GHG) emissions. We going to be challenging. The emergence and rapid global are pleased to share with you a look into the relatively spread of COVID-19, however, has compounded the small, but hugely promising bioenergy sector. situation. While we are still in the midst of the global Authors: pandemic, with the true impacts still to be measured in From project planning, development and rollout, to Ludovic Lacrosse, Lead Author and Consultant at UNIDO; Martin the years to come, it is important to note that despite key lessons learned, and a brief analysis of the sector Englisch, BEA Institut für Bioenergie und FHA-Gesellschaft, (Biomass); seemingly insurmountable challenges, we have wit- at large, readers will gain helpful insights into what it Katharina Danner, Snow Leopard Projects GmbH, (Biogas); and Harry nessed unprecedented rapid, collective, transboundary takes to provide locally available bioenergy solutions at Stokes, Project Gaia Inc. (Biofuels). and cross-sector action in the development and rollout household, community and industrial levels. of a vaccine; we have witnessed hope – a hope that Coordination: the deadly virus could be eliminated, but perhaps so While it is true that some of the lessons learned from the Jossy Thomas, Industrial Development Officer; Liliana Morales Rodri- too that the world could unite to actively and decisively featured projects are context-specific – matters relat- guez, Project Associate; and Grazia Chidi Aghaizu, Project Assistant of respond to recovery and fast track the way to SDGs with ing to political, financial or geographical locations, for UNIDO’s Energy Department. the same urgency. example, have resulted in unique approaches – it is also true that we are not only limited to the act of repli- Special thanks go to the colleagues of the UNIDO Department of Ener- It is, therefore, in this light that our efforts to work collec- cation for the project to be useful to others. The act of gy: Tareq Emtairah (Director, Dept of Energy), Petra Schwager (Chief, tively to promote, advance and mobilize climate technol- harvesting (taking what is useful) or leveraging knowl- ETI), Alois Mhlanga, Mark Draek, Martin Lugmayr, Naoki Torii, as well ogies must continue with zest. It is clear that knowledge edge (building on what is there) holds similar value in as the project teams and stakeholders in the field for their valuable sharing – through channels such as this report – will the face of increasing urgency. contributions and suggestions during the development process. provide the leverage needed for others to learn, plan and implement their own bioenergy projects, ultimately The SDGs will not be reached in isolation and one way contributing to our collective efforts in reaching self- to work jointly for meaningful progress is to invest time reliance in energy and achieving the SDGs. in knowledge sharing and harvesting. By leveraging the knowledge of a wide range of successful and not so suc- What follows in this report is an overview of bioenergy cessful bioenergy projects, it may be possible to avoid projects from around the world, mostly implemented by certain challenges, be more resilient to challenges, UNIDO, with funding from GEF. While the scope, tech- save time and money, and ultimately accelerate climate nologies, applications, descriptions and results vary, action on the ground. they are united by the goal to achieve reliable, safe and affordable clean energy for people in low income countries, bringing clean energy to some of the world’s 6 7
EXECUTIVE for clean cooking is still rather new. However, it shows a great development potential in tropical countries, Most bioenergy projects in DCs and LDCs result from technology transfer. The appropriateness of the SUMMARY given a large diversity of feedstocks generated by technology, i.e. its ability to be easily operated and the agricultural and food-processing sectors. The maintained, must be carefully assessed. Whenever demonstration projects implemented in Tanzania possible, partial or total manufacturing of the and Ethiopia are good references and should pave equipment should be transferred to the recipient the way for broader uptake in countries with similar country. This requires comprehensive, in-depth capacity- characteristics. building programs and awareness campaigns, not Over the past decades and in multiple countries, the development of the local economy by creating new only for the local manufacturers and for the personnel bioenergy has supported the development of local jobs, using locally available biomass that would often Successful bioenergy projects need to be broadly responsible for the O&M of the bioenergy plant, but for economies, while helping to reduce the dependency be left to rot, and (b) to the reduction of deforestation disseminated to build the confidence of national all key stakeholders, i.e. biomass producers (farmers), on imported fossil fuels. If bioenergy resources are and mitigation of GHG emissions. It is key to use simple, and local governments who have a key role to play in bioenergy investors, banks and financial institutions, produced sustainably, their energy use can contribute if possible, locally made and fully proven equipment, supporting their implementation. National action plans policymakers, as well as researchers and academics. to the reduction of GHG emissions. and make sure that there is enough raw material and must be in place and provide all the needed support sufficient funding to sustain the projects. measures, project registration and licensing. Bioenergy has a very promising future, as only a very Placed within the overall context of bioeconomy, small fraction of its potential has been exploited so bioenergy represents a major sector, spread across the In the chapter on biogas, different applications, based The dissemination of success stories must also target far. Proven and reliable technologies are available globe, as bio-residues generated by other bioeconomy on various types of waste, are presented: banks and financial institutions who are often reluctant and can provide solutions at household, community sectors are often used as raw material in bioenergy to invest in bioenergy projects as they are not familiar and industrial levels, provided that the biomass conversion processes. These bio-residues can be either • cogeneration from the use of biogas produced from with all their benefits. Evidence of the technical management and organization of the whole supply bio-effluents, or solid residues from forestry, farming or avocado waste in Kenya; reliability and economic viability of such projects must chain is well addressed. Capacity building at all levels wood and agro-industries. • cogeneration from biogas produced from swine and be provided. Besides all the usual economic factors is essential, along with public awareness campaigns food waste in Brazil; and (investment and operation and maintenance (O&M) on demonstration projects that have been successfully Solid biomass is one of the most used forms of • diesel substitution by biogas for power generation costs and revenues), project feasibility studies must operated for a few years and their strong contribution to bioenergy. It has been and is still traditionally used in Kenya. include a critical analysis of the sustainability of the the achievement of the SDGs. for cooking or heating in many countries, especially project feedstock supply and of the products sales in developing countries (DCs) and in least developed All these biogas projects use proven technologies and generated by the plant. countries (LDCs). Gaseous or liquid forms of biofuels, well-trained personnel. They are commercial projects such as biogas and bioethanol, are increasingly in which local investors expect to fully cover their own available and used, as biogas/biofuel projects are being energy requirements. They have the confidence of implemented all around the world, using increasing financial institutions (banks and international donors), amounts of performant conversion technologies. as their financial proposals were strong, and as the quality and quantity of the feedstock supply as well as Several bioenergy case studies presented in this the off-take of the produced energy (heat and/or power) document provide good examples of successful had already been secured. They offer a great replication biomass, biogas, and bioethanol projects. Their key potential. features are presented, together with their success factors and the lessons that can be learned from their In the chapter devoted to liquid biofuels, all the projects implementation. Moreover, their sustainability is are bioethanol projects: addressed vis-à-vis the SDGs. • a cookstove and bioethanol delivery facilitation The chapter on solid biomass highlights the following project in Tanzania; projects: • south-south cooperation in bioethanol production from cassava in Southeast Asia; and • commercial production of wood and torrefied pellets • bioethanol production from a micro-distillery for in Portugal; household cooking in Ethiopia. • industrial use of residues from olive oil processing factories in Albania; and These are small-scale projects aimed at producing • production and use of charcoal briquettes in bioethanol from locally available feedstock. Micro Uganda. distilleries keep the investment at a reasonable level and can easily be operated by well-trained local staff. All these projects have had a strong economic, social Bioethanol used in transport is already utilized in Biogas treatment plant in Brazil. (Source: Castrolanda) and environmental impact as they contributed (a) to many places worldwide, while the use of bioethanol 8 9
1 1.3 Bioenergy and the Sustainable Development Goals THE ROLE OF BIOENERGY IN The following table shows how the development of bioenergy could contribute to achieving the SDGs. STIMULATING THE BIOECONOMY Bioenergy offers small farmers the possibility to increase IN DEVELOPING COUNTRIES AND and diversify their crop production and generate additional revenues. LEAST DEVELOPED COUNTRIES Through bioenergy projects and revenues, small farming communities can have access to food, a better diet and im- proved health conditions, and thus enjoy better standards of living. 1.1 Sustainable bioeconomy In 2016, with the support of the German government, the 6. Applying responsible and effective governance The use of biofuels such as bioethanol can reduce Food and Agriculture Organization of the United Nations mechanisms indoor air pollution thanks to cleaner cooking. (FAO) produced guidelines on sustainable bioeconomy 7. Implementing existing relevant knowledge and development and established the International Sustain- proven sound technologies and good practices and, able Bioeconomy Working Group (ISBWG)[1]. These where appropriate, promoting research and Vocational training and education in bioenergy raises the principles consist of 10 key points in addressing the 8. innovation level of knowledge and understanding of these technol- following sustainability issues for the bioeconomy[2]: 9. Using and promoting sustainable trade and market ogies and paves the way to new jobs, especially in areas practices with increased bioenergy potential, such as rural areas. 1. Supporting food security and nutrition at all levels 10. Addressing societal needs and encouraging sustain- 2. Conserving, protecting and enhancing of natural able consumption resources 11. Promoting cooperation, collaboration and sharing 3. Supporting competitive and inclusive economic between interested and concerned stakeholders in Improved practices have a positive impact on gender growth all relevant domains and at all relevant levels. equality, as women could improve their income and status. 4. Making communities healthier, more sustainable and harnessing social and ecosystem resilience These principles are applicable to all bioeconomy 5. Relying on improved efficiency in the use of sectors, and are in line with the United Nations’ SDGs. resources and biomass Some bioenergy technologies, like biogas production, specifically address the treatment of wastewater and help reduce water pollution. 1.2 Bioenergy and bio-economy in DCs and LDCs There is still an enormous global development potential amounts of solid residues, which can either be used as for bioenergy and the bioeconomy in DCs and LDCs. The raw material in further downstream activities or as fuel Biomass, biogas and bioethanol technologies help to economies of these mostly tropical countries are still (e.g. pellets, briquettes, package). provide access to affordable, reliable, sustainable, and strongly based on agriculture and forestry. modern energy, particularly in LDCs. Manure produced by cattle and pig farms can be con- Food processing industries (rice mills, sugar mills, palm verted into biogas that can be used for cooking, heating oil mills, etc.) generate large quantities of solid and and/or power generation. Bioenergy helps add value to biomass and allows the develop- liquid residues, which can be used as fuel. ment of new activities and related jobs through the improvement of existing practices; the introduction of innovative technologies Forest and wood processing industries (sawmills, ply- and the enhancement of infrastructure along the value chain. wood/particle board factories) also generate significant 10 11
1.4 Enabling policy environment The development of bioenergy projects in rural areas, close to biomass feedstock production, can contribute to the reduction of inequalities in less developed areas. Over the last 50 years, bioenergy has received regular Countries like Thailand established specific funds to policy and financial support from national governments, support investments in bioenergy projects. As an exam- as well as technical assistance and funding from in- ple, attractive electricity buy-back rates were offered for ternational organizations, but that support has been biomass electricity sold to local utilities. This stimulated The management of organic waste via bioenergy conver- fluctuating as it was mainly dependent on global fossil the private sector to invest in high efficiency plants to sion is key to making cities and communities more accom- fuel prices. During the oil crises of the 1970s and 80s, optimize the use of their excess residues and generate modating and sustainable. funds were provided to institutions to carry out research additional revenues. and development on biomass combustion, gasification, digestion, torrefaction and densification technologies. Currently, country-level support provided by govern- Production, promotion and consumption of biofuels con- ments towards bioenergy is targeted at the production tribute to the improvement of the environment through the Performant, environmentally friendly equipment was and use of bioethanol for fuel blending. Incentives are reduction of fossil fuel consumption and the reuse of waste developed to generate heat and/or power from straw, required along the whole value chain, from biomass material generated by bioeconomy activities. wood wastes and other bio-residues to competitively growers to final bioenergy consumers. Funding also substitute the use of fossil fuels. New products, such as needs to be provided to bioenergy capacity-building pro- briquettes and pellets, appeared in both domestic and grams and to research and development projects aimed international markets. at developing innovative solutions to optimize the use Within the bioeconomy, the development of bioenergy of local bioresources. is one of the highest contributors to the mitigation of The implementation of successful demonstration pro- GHG emissions and carbon sequestration. jects using these innovative technologies helped build Moreover, there must be an increase of focus on social the confidence of private investors, banks and financial acceptance of biofuels through public information cam- institutions. In the meantime, the global fossil fuel mar- paigns. Such measures should focus on the benefits of Bioenergy conversion of waste that would otherwise be ket prices dropped and made these new technologies fuel switching and the implementation of a sustainable discharged into rivers, canals and oceans can strongly less attractive. bioeconomy via the reduction of dependence on import- contribute to the preservation of aquatic life. ed fossil fuels, mitigation of greenhouse gas emissions, To keep some momentum in the bioenergy transition, and stimulation of local economic growth and job some long-term support mechanisms and tools such as creation, while maintaining food security and conserving renewable energy (RE) targets, tax exemptions and feed- natural resources. The sustainable management of biological resources and in-tariffs (FITs) for renewable electricity were required. the production and supply of biomass feedstock to bioen- ergy processes can help prevent land degradation. 1.5 Bioenergy projects: success factors Bioenergy also supports rural communities through the Besides the compliance of bioenergy projects with the • acceptance • profitability creation of more equitable societies, which should gener- SDGs, it is also essential to look at the sustainability of • appropriateness • replicability ate more sustainable institutions. the project itself. • reliability • scalability • affordability • environmental sustainabililty A comprehensive feasibility study must be carried out • bankability • sustainability. Many countries still face bioenergy implementation chal- and should include a feedstock availability study, a lenges. The exchange of experience and the creation of technology assessment analysis and a market survey These often innovative commercial projects were imple- global partnerships can help bioenergy to keep growing for the products generated by the project. Lessons were mented by the private sector. Private investors would steadily throughout the world. learned from the experience of the EC-ASEAN COGEN only invest in proven technologies with a proper track Programme (1991-2005)[3], which aimed to support the record in similar conditions. The project investment Table 1: Bioenergy and the SDGs implementation of clean and efficient biomass energy level, its O&M costs, its generated revenues and savings projects in wood and agro-industries in Southeast Asia, would determine its viability, level of profitability and including the following success factors: bankability. 12 13
2 O&M are essential but are often overlooked. Industrial systems need well-trained personnel responsible for raw material quality assurance, O&M, and servicing of the heat and pellets) currently represents about 25% of the income of the sawmilling industry, significantly increas- ing its overall competitiveness compared with other system. Their costs and the necessity of qualified per- countries. sonnel are often underestimated during project design. BIOMASS AND Biomass projects are not the easiest to finance as banks Biomass offers an excellent possibility for circular econ- omy and for environmental balance due to its carbon TECHNOLOGIES and financial institutions are not familiar with these technologies and perceive them as riskier. The invest- neutrality. It provides some additional income for differ- ent groups like foresters, farmers, wood and food pro- ment in biomass technologies, especially for larger cessing industries and communities. Biomass projects projects, is not as attractive as conventional projects also offer the possibility for public participation (e.g. due to higher investments and longer pay-back times. farmers). The best examples are cooperatives running Moreover, the sustainability of the biomass supply chain district heating plants, where some projects have been 2.1 Introduction is often questioned by financiers. On the other hand, successfully operated for more than 30 years. Solid biofuels are one of the most heterogeneous energy Availability, quality and price of the raw material biomass projects create jobs and generate revenues for sources in the world due to their content and combus- is probably the most important success factor. High local populations, especially in rural and less developed In DCs and LDCs, where biomass is traditionally used tion behavior, and include firewood, processed firewood resource potential assessed by an investor or user at areas. for cooking, there are several negative aspects like the like charcoal, forest and agricultural residues, and dung, one time, does not imply that it will remain available in overexploitation of resources and deforestation, as well which are considered traditional household fuels in the future. This is especially critical since investment in In industrialized countries, the use and upgrade of as domestic health and environmental problems due to most DCs and LDCs. biomass projects is rather large compared to other con- waste, especially in wood industries, is of increasing im- poor combustion. ventional systems. Logistic chains must be considered portance as it boosts their profitability. A large sawmill In Africa, solid biofuels cover more than 80% of the as part of the supply cost. Raw material quality should may operate a cogeneration plant to cover its heat and A more sustainable alternative is the use of local bio- energy demand, especially for cooking. On the contrary, also be considered. This will depend on current and power requirements, by using bark and other process mass in modern, efficient and low-emission equipment in developed countries like Austria, only around 30% of future required quality of the final product. Pellets of low residues. Heat is needed for timber-drying kilns and for instead of conventional technologies. This would create the total energy required for heating is provided by solid international standards may be sold in the beginning, pellet production where sawdust is the raw material. local jobs and keep value added in the region mainly via biofuels in different forms like logwood, wood chips and but international trends show that the market demand Both the combined heat and power (CHP) plant and the small companies. As shown in the three case studies pellets. will eventually be for best quality pellets. pellet production increase the income of the sawmill presented further on, modern biomass appliances may substantially. In Austria, energy from biomass (power, lead to poverty reduction and more gender equality. Most traditional biofuels are not processed, except for Conversion technologies are manifold and cover an size reduction and drying. The development of modern unbeatable wide range starting from less than USD 12 (processed) biofuels suitable for automated equipment for a cook stove to billions for a modern power plant. started after the first oil crisis in the 1970s in the form of Furthermore, price depends on suitability for different wood chips. Wood chips are now widely used in district fuels, emissions and efficiency. Highly efficient equip- heating systems and industrial applications, including ment that complies with regulations in some countries power generation. e.g. Germany, proving to generate/emit low emissions, is expensive. If efficiency and emission regulation is Pellets, which are compressed biomass – usually made less stringent, and manpower is available for a lower out of industrial, agricultural and forestry residues, and price, investors tend to use cheaper, more labor-inten- energy crops – started being developed approximately sive systems with drawbacks of lower availability, lower 30 years ago. They have spread worldwide as a new and efficiency, higher emissions and often with higher safety sustainable solid biofuel. As the first biofuel commodity, hazards. pellets are suitable for global commercial trade. They can be used in small-scale (e.g. cook stoves, heating In general, the combustion of solid biofuels is more stoves) but also in medium-scale and large industrial complex than the combustion of gaseous or liquid fuels, applications. since solid fuels contain non-combustible fractions that can cause abrasion, slagging and fouling. Despite biomass being used for at least 30 years, it re- mains challenging to use it efficiently and sustainably. Additionally, solid particle emissions and waste dispos- Three critical success factors need to be considered: al of residues must be considered. Thus, it is important • availability, quality and price of the raw material, that a proposed technology is fully proven and appropri- • conversion technology, O&M, and ate for the target market. Some technologies that looked • sustainability, including reforestation, carbon deple- promising, such as biomass pyrolysis and gasification, White pellets from debarked wood and black pellets from torrefied wood. (Source: Futerra Fuels) tion and land use change. have regularly failed because of their inappropriateness in a local context. 14 15
2.2 Case Study #1: Large-scale production of white and 2.2.2 Feedstock sourcing, black pellets – Futerra Fuels, Portugal[4] capacity, and plant layout The municipality of Valongo provides access to The developers designed a flexible hybrid pellet 600,000 tonnes of biomass feedstock. The raw production plant, capable of simultaneously produc- material consists of low-grade biomass resources ing white and black pellets, with multiple lines to coming from FSC-certified plantations within an area ensure maximum capacity utilization. This makes the of 50-100 km from the plant. feedstock sourcing, feedstock preparation, drying and energy consumption more efficient. The torrefaction lines are modular, compact and semi-transportable. This makes the design suitable From a market point of view, the plant can meet for both small-scale and large-scale projects. The tor- various client demands with respect to calorific value refaction technology is based on the unique swirling of the pellets but can always deliver white pellets fluidized bed principle. The technology generates if black pellet production is paused and vice versa. a fast heat transfer from hot flue gases to the solid The equipment layout allows for the pre-treatment input material. This results in a continuous torrefac- of some unusual raw materials such as tree stumps. tion process, homogeneous quality and a clean final The most critical requirements in the feedstock product with the following characteristics: preparation are the particle size and the moisture content. • low chlorine content, • hydrophobicity, i.e. high water resistance, • low emission levels of fine dust, sulphur ox- ides and nitrogen oxides, 2.2.3 Replicability • high calorific value of 19 to 22 GJ per tonne, • clean combustion with less pollution, resulting The project has a high potential to be replicated in Installation of drying/torrefaction unit. (Source: Futerra Fuels) in a 10% increase in boiler performance, DCs and LDCs as the plant serves as a blueprint for • strong shock resistance with very limited fines pellet plant developers targeting commercial pro- 2.2.1 Project background production during transport and handling, duction of black and white pellets with outputs of • zero waste production as dust and biomass 200,000 to 250,000 tonnes per annum. Given the One of Portugal’s industrial sectors is wood pellet With torrefaction technologies gaining momentum waste are used for heat generation, and system’s modularity, smaller plant sizes are also production. Portugal has significant forest resources in the early 2000s, companies such as Futerra Fuels • the elimination of binding agents needed feasible with a minimum capacity of 20,000 tonnes that can only be used for energy production as low- were able to build on successful experiences in that to pelletize yields a saving of +/- USD 12 per per year. Six parallel torrefaction lines each produce grade biomass resources – including tops, limps, field. After three years of research and study, Futerra tonne in production costs. 2.5 tonnes per hour, i.e. a total of 120,000 tonnes forest residues, remains from thinning and wildfires Fuels was legally established in 2015 by Dutch and per year. as well as material from short rotation crops (mainly American investors with backgrounds in project The torrefaction lines are also capable of processing Eucalyptus). Pellet production is the most efficient finance, RE, energy trading and circular economies. bagasse, grass and other agricultural and garden Downscaling the plant allows the implementation of technology suitable for energy export. Therefore, pel- waste. The swirling fluidized bed technology in projects closer to the source of biomass feedstock let plants were built to mainly export to power plants A pellet production project was initiated by Futerra combination with the correct pre-treatment of the and limits the need for transport of raw material and in Western and Northern Europe. Fuels International BV, which owns Futerra Torrefaçao (herbaceous) biomass material leads to high-quality pellets. e Tecnologia S.A. based in Valongo, Portugal. black pellets. Some markets/customers required different pel- The plant set-up can be replicated for greenfield pro- lets properties. Some customers asked for pellets The project was implemented in two steps. A pilot The plant capacity is as follows: jects like the Valongo plant or for retrofitting existing with higher energy content and high energy density torrefaction line was first tested in the Netherlands white pellet plants by adding modular torrefaction as found with conventional wood pellets (“white in the second half of 2017 in order to validate the pro- • annual production of white (wood) pellets: lines to existing plants, currently mainly in Northern pellets”). This led to the development of torrefaction cess. The commercial plant was then built between 85,000 tonnes, America and Europe. and carbonization processes and development of 2019 and 2020 in Valongo, near Porto, Portugal, a • annual production of black (torrefied) pellets: “black pellets”. Besides a higher energy content, strategic location with road and rail connections 120,000 tonnes, black pellets have the advantage that they can be to the ports of Leixões (16 km), Aveiro (70 km) and • onsite storage capacity: 18,000 tonnes, and processed with conventional coal technology in Viana do Castelo (85 km). • loading capacity from site: 500 tonnes per hour. coal-fired power plants and they are partly weather resistant in outdoor storage. 16 17
2.2.4 Problems and solutions 2.2.5 Lessons learned 2.3.1 Project background Commercially, securing investors and financiers for a The plant design is based on units with an hourly ca- Albania’s National Renewable Energy Action Plan The UNIDO/GEF project started in 2014 and is expect- greenfield torrefaction plant has been very challeng- pacity of 2.5 tonnes. Future torrefaction units will be 2015-2020[5] outlines the country’s target of in- ed to be completed in 2021. ing since most torrefaction projects have been una- container-based designs and scaled-up to 6 tonnes creasing the final energy consumption by 38% with ble to reach commercial scale for the past 15 years. per hour (45,000 t/a), with containers assembled renewable energy sources by 2020. Meanwhile, The Albania is one of the Mediterranean countries with Moreover, the development of large torrefaction on site. By doing so, the plants can be tested in National Energy Strategy 2018-2030[6] highlights that optimal conditions for olive oil production. However, plants is considered a risky business by off-takers the Netherlands before being shipped and require Albania has substantial biomass potential from agri- olive oil producers in Albania lack access to adequate and investors. The founders had to provide a large less supplier presence on site for the start-up of the cultural residues, estimated at 2,300 GWh per year. technologies and have limited rural infrastructure percentage of equity portion of the USD 13 million plant. (e.g. roads). This has led to high production costs investment. Biomass is widely used in Albania, predominantly and low margins. This project aimed to trigger invest- Based on its experience, Futerra is creating a fran- in the form of firewood. The production and use of ment in waste-to-energy projects in the olive industry Technical problems included the fact that parame- chise model with an integrated package of technol- processed wood fuels such as pellets and briquettes through demonstration, development of appropriate ters of the swirling fluidized bed torrefaction reactor ogy, offtake and know-how. This will lower the risks increased in the last few years. financial instruments, capacity building and strength- required re-engineering and adjustments because of and barriers for new plant developers who want to ening of the policy and regulatory environment. the diversity of the raw materials used in the plant. A enter this promising new market. Agro-industrial residues are considered a suitable way to solve that problem is to homogenize the qual- source of biomass for energy, but their use faces Through its focus on development of appropriate ity through pre-treatment. The unloading point from limitations because of their seasonality and their financial, regulatory and policy instruments, the the reactor towards the pelletizers is a self-designed need to be collected, transported and pre-treated project aimed at implementing 15 bioenergy pilot solution keeping out oxygen to prevent fires and/or before being converted to energy e.g. olive tree or projects with an indicative capacity of 1,000 – 1,500 explosions. Another solution is to treat the pellets in vine pruning. kWth. More than 40 companies were evaluated by a way that would reduce the formation of dust during financial institutions, with the support of four banks. pellet logistics and storage. Based on the national goals to increase energy from Feasibility studies were prepared. Several enterprises biomass, UNIDO in cooperation with GEF and the are (still) negotiating with financial institutions for Albanian Government developed a project to promote co-financing of their respective projects. the use of different agro-industrial residues, includ- 2.3 Case Study #2: Olive oil sector as a bioenergy ing olive mill residues. Besides UNIDO, four ministries, three universities, supplier in Albania national agencies, NGOs, SMEs, technology suppliers The main objective was to demonstrate bioenergy and financial institutions are involved in this project. conversion technology applications through the implementation of successful projects in targeted small and medium enterprises (SMEs) in the olive oil sector. 2.3.2 Example 1: Implementation of bioenergy in an olive oil factory Olive oil production consists of three major steps: (a) olive washing, (b) olive crushing, and (c) separa- tion of oil and pomace (by presses). Pomace is one of the main residues of the olive oil industry. It can be burnt directly in boilers or may be converted into pellets or briquettes for use in boilers and stoves. In both cases, olive pomace must be dried. For olive oil production, energy is required to heat the water needed for the crushing process. This energy is now produced by a new biomass boiler using the mill pomace. The boiler also heats the factory and the house of the factory owner. Excess pomace is sold to a pellet producer. According to the president of the Albanian olive oil association, energy savings of 60% are possible within the olive oil factory. Particle emissions are significantly reduced as the new biomass boilers are more efficient than traditional systems and are equipped with flue gas cleaning cyclones. Combustion system for dried olive pomace in an olive factory. (Source: BEA) 18 19
2.4 Case Study #3: Biomass/charcoal briquettes in Uganda 2.3.3 Example 2: Substitution of diesel heat generators at a farm Two diesel heating systems (burners for greenhouse) were replaced by modern biomass systems (grate-fired biomass boilers) using dried pomace instead of diesel to heat a greenhouse at a tomato farm. With cheaper and more reliable heat generation, the plants grow much faster, and their yield has increased by 40%. The largest part of the tomato production is exported to Germany, where it arrives without having to be frozen. Being fresh and branded as organic produce, tomatoes can be sold at premium price. Moreover, the farmer will now have three harvests per year instead of two. The long-term plans include installing more biomass boilers in his seven other greenhouses, which still do not have a heating system. The new boiler investment was around USD 85,000. The farmer could only afford them thanks to the support by the UNIDO/GEF project development. 2.3.4 Lessons learned Agro-industries in Albania, especially in the olive oil The legislation must be adapted to include equip- and fruit processing sectors, produce large quantities ment quality and efficiency requirements. Therefore, of biomass residues that can be used as fuels. Before it is recommended to establish and implement a this rather broad UNIDO/GEF project, there was little QI system, with an incentive program, a monitoring Charcoal briquette drying. (Source: GBE) public awareness on the production and possible system and the necessary infrastructure, including uses of pellets as fuels. The organization of site visits testing, certification, accreditation and mechanisms and workshops to reference projects helped raise for market surveillance. 2.4.1 Project background awareness. Practitioner training should include the training of In Uganda’s rural areas, there are not many alter- manufacturers supply peri- urban and urban centers. Since there was no equipment available in Albania, key stakeholders on (a) best international standards natives to wood and charcoal for cooking food in Carbonized briquettes are the main product, using it had to be imported. A key for success is that the (b) the new regulatory framework, and (c) standards households. Historically, charcoal and firewood have charcoal powder as the raw material. They are sold to imported equipment must be fully proven and relia- and certifications for technical staff of public entities been a cheap and accessible source of fuel, but its households, refugee camps, roadside food ven- ble, i.e. certified according to international technical in charge of formulating the policy and regulatory use has become unsustainable, as forests are dors, poultry farmers and institutional consumers. standards. Training programs must be organized to framework. depleted. Non-carbonized briquettes are sold to brick factories, make sure that the new equipment is properly cement industries and as cooking fuel to restaurants, operated. In that context, biomass briquettes have emerged schools and hospitals as they can substitute wood as one of the top three East African energy products, without modification of their stoves. with Uganda witnessing the greatest concentration of briquette producers. Briquettes can be produced Briquettes, especially those from carbonized bi- from resources other than wood and as a commercial omass, can be made from a large variety of forest product they can be transported to the customers. Al- and agriculture residues. These residues may be though many individual companies are rather small, sawdust, rice husks, rice straw, coffee husks, cotton some businesses are getting larger as they work with seed hulls, maize cobs, banana fibers, cotton stalks local microenterprises. and others. Usually, they are sourced locally from contracted farmers. Some residues are readily avail- The briquette market in Uganda consists of four able on the local market from large commercial farms segments: the domestic, institutional, industrial and and agro-processing factories. export markets. The majority of briquette 20 21
2.4.2 Example 2: Green Bio Energy[7] Green Bio Energy (GBE) buys carbonized organic residues from surrounding communities produced with GBE carbonizing kilns and transports them to a central facility where they are ground, pressed into briquettes and dried. In parallel, GBE produces improved cookstoves that can burn charcoal or uncar- bonized briquettes in a more efficient way. Charcoal briquettes. (Source: Divine Bamboo) In 2010, GBE started building a prototype of a mechanized briquette press. By January 2011, the compa- ny began to carbonize organic waste and sell briquettes in surrounding communities. With grants from 2.4.4 Economic, social and Engie, a French utility, and from MIT’s Harvest Fuel Initiative, they fine-tuned their process and moved to environmental impacts of a site about 30 km outside of Kampala to begin full-scale production. biomass /charcoal briquettes All GBE machinery is made in Uganda, making it easier to provide any assistance for maintenance and The development and improvement of biomass pro- especially for women and young people all along the follow-up. This includes briquetting presses, carbonizing kilns, mixers, crushers and dryers. Equipment jects and technology have led to an overall improve- charcoal briquettes value chain. The project has is designed with stringent requirements in terms of reliability, efficiency, and safety. ment in terms of economic, social and environmental brought together social groups that are now working aspects. towards a common financial stability. Economic As part of the social mission of the GBE, all pieces The projects have provided new job opportunities to of equipment are produced locally. GBE invested in local communities and generated income through building partnerships with local workshops to design carbonization and charcoal briquettes production. and manufacture all the machines required in the 2.4.3 Example 2: Divine Bamboo[8] In turn, this has improved households’ standard of briquetting process. Local workshops gained par- living as well as improving their nutrition since they ticularly useful engineering knowledge and received can afford a more balanced diet. work contracts and revenue thanks to the machinery Established and incorporated in 2016, Divine Bamboo has become the largest producer of bamboo orders GBE made. seedlings in Uganda, with a capacity of 100,000 seedlings annually. As charcoal briquettes burn longer and are (some- times) cheaper than charcoal, each household using In the Divine Bamboo project, the major social com- Divine Bamboo provides clean cooking fuel in the form of high-quality charcoal briquettes produced charcoal briquettes with improved cook stoves saves ponent is the empowerment of rural smallholding from local bamboo, grown by local farmers as additional product specifically for energy purposes on on their cooking fuel bill. Users reported that an im- farmers, with a special focus on women and youth. sustainable bamboo plantations in Uganda. The company trains rural women groups and youth to plant proved stove is paid back within a month or two. 350 farmers and 205 youth were trained in bamboo bamboo, providing them with seedlings and access to biomass technologies. This gives them the op- planting and briquette production. This helped portunity to produce bamboo briquettes, which simultaneously provides additional income, meets their In the case of the GBE project, 500 tonnes of bri- reduce poverty and gender inequality and increased in- house fuel needs and contributes to protecting the environment. quettes and 4,800 stoves were distributed every year income. Moreover, women and girls are less exposed between 2016 and 2018. The business expanded to gender-based violence. The technological component involves the use of efficient and improved conversion technologies to with the inclusion of a network of micro-entrepre- carbonize bamboo. The technologies used include: neurs to test the potential market in Eastern, Western Environmental and Central regions of Uganda. 90% of agricultural leftovers in Uganda’s towns are • a drum carbonizer, which is a simple and easy-to-fabricate carbonizer with a lid and an inner cone currently treated as waste and left to rot. Rotting to which a chimney is attached. The drum carbonizer costs about USD 100, has an efficiency of 20- Both projects involve the use of efficient and im- waste can contaminate rivers, ground water, or food 22% and a capacity of 20 kg of dry biomass. Generally, the technology is about 40% more efficient proved carbonization technologies for either biomass meant for human consumption. What’s more, Ugan- than conventional conversion technology; residues or bamboo. The carbonizing equipment is da remains at risk of losing most of its forest cover if • a retort, which is a built carbonizer consisting of a cavity wall, a lid, a grate, a chimney with an air cheap as its design is simple. In the case of Divine nothing is done to identify alternatives to tree-based control mechanism and an outlet where the char is collected. The technology has a capacity of one Bamboo, it costs about USD 100. charcoal and firewood energy sources. to two tonnes of dry biomass, and costs about USD 1,220. Its efficiency is very high and estimated at 35-40%. Social The engagement of converting biomass waste into These projects have a strong social impact on family charcoal briquettes is a strong move towards the well-being through the creation of new jobs, mitigation of GHG emissions. 22 23
CASE #1: CASE #2: CASE #3: SUSTAINABLE LARGE-SCALE PRODUCTION OLIVE OIL SECTOR AS BIOMASS/CHARCOAL GBE help reduce deforestation by substituting char- tial impact on the household budget for cooking fuel, DEVELOPMENT OF WHITE & BLACK PELLETS – BIOENERGY SUPPLIER IN BRIQUETTES IN UGANDA coal and firewood with briquettes made of organic and therefore, on the economic, social and environ- GOALS (SDGs) FUTERRA FUELS ALBANIA materials, mainly from agro-industries. Briquettes mental well-being of relatively poor populations. produce a much cleaner combustion than fuelwood and charcoal, hence reducing respiratory problems, Briquetting equipment is generally basic, should be locally manufactured, especially for small production cancer and cardiovascular diseases. sites, and should be reliable and easy to operate after Divine Bamboo created awareness about bamboo as some training of the operators. However, there is still a significant potential for improving, replicating and a sustainable climate-smart energy alternative. Bam- upscaling the technology. boo plantations sequester over 2,000 tonnes of CO2/ ha/year and do not require fertilizers or pesticides. Key challenges such as a need for technology im- provement must be addressed to support the growth 2.4.5 Lessons learned of the briquette market in Uganda. Such improve- ments can help increase the production and quality The key for success is mainly the management and of briquettes. The sustainability of the biomass organization of the supply chain, from the production feedstock quantity and price, the briquette produc- and collection of sufficient raw material, its purchase tion cost and the access to finance will need to be at a fair price and its conversion into a final product carefully looked at and secured to expand the use of that is attractive enough to be sold in a competitive briquettes throughout the country for the best of the market. Small price differences can have a substan- urban, peri-urban and rural populations. 2.5 Biomass and the Sustainable Development Goals As shown in Table 2, the three case studies address carbon emissions, thus greater health and well-being most SDGs. Evidently, biomass projects supply clean (SDG 3). The local design and manufacturing of biomass and renewable energy. This is in the form of heat, power technologies helps develop industrial competence and or fuel for cooking, which can directly or indirectly make infrastructure (SDG 9). This requires specific training energy more affordable for rural populations (SDG 7). in engineering (SDG 4). Modern biomass technologies Sustainable energy is also supplied to cities, making create jobs in agriculture, forestry, raw material and fuel human settlements more resilient (SDG 11). Given that production and fuel distribution (SDG 8). One case study forests and crops are managed sustainably, these projects ensure sustainable production patterns (SDG focuses specifically on women’s employment (SDG 5). Stable income from these jobs and affordable energy 12) and crop yields (SDG 2), restore and promote the reduces poverty where these projects take place (SDG 1). sustainable use of terrestrial ecosystems (SDG 15), and contribute to carbon savings to combat climate change In turn, this reduces inequalities as there is a growth in income for farmers and rural populations (SDG 10). (SDG 13). The latter results in less pollution and black 2.6 Success factors and challenges Since there is such a wide variety of options for the use The use of proven technology is extremely important – Table 2: Biomass and the SDGs of biomass, the selection of the best technology for a biomass projects are long-term investments where the region, a company, a community or simply a household quality of the implemented technology is key. Saving can be very challenging and requires a careful evalua- on investment cost is short-sighted and often leads to tion of the most appropriate solutions. project failure. A key parameter for a successful biomass project is the Due to the high investment required, financial support availability of sufficient and proper quality raw material (grants, soft loans, incentives) is still a valid option to over the project lifetime. Another challenge is maintain- increase the number of projects in DCs and LDCs. There ing the sustainability of the supply while balancing bio- are too many examples of failed projects despite finan- mass reserves, including a rational use of arable lands, cial support from international organizations. There is reforestation, best use of residues and stable prices. a need to systematically check the factors that can lead projects to success and avoid mistakes that were made 24 in the past. 25
3 3.2 Case Study #1: Waste from food processing for captive power – biogas from avocado waste in Kenya [9] FROM WASTE TO BIOGAS 3.1 Introduction Biogas production is a natural process that occurs in It was reported that, in some DCs or LDCs, more than swamps and in cow paunch. Biogas is produced by 70% of the biogas plants work below their original rated breaking down organic matter in an anaerobic (oxygen specifications. The main reasons for such underper- free) environment. It contains about 55% methane, 45% formance are: carbon dioxide and some traces of other gases. Methane is the energy carrier. It is possible to technically upgrade • too high capex, Biogas from avocado waste in Kenya. (Source: Olivado) the biogas to more than 95% of methane, bringing it • sound financing not available, to an energy content comparable to natural gas. Biom- • unreliable feedstock supply, ethane can be used as fuel for electricity and/or heat • fluctuating feedstock price, 3.2.1 Project background generation, for cooking and for transport. • poor management, • political instability, Located in Murang’a County in Kenya, Olivado EPZ The biogas is used in a CHP plant with a total thermal Setting up and running a successful biogas project • unreliable off-takers, Limited sources organic avocados from local farmers. capacity of 931 kWth and electricity generation capac- requires a combination of factors: careful project design • lack of qualified staff, The fruits are either exported to Europe or processed ity of 400 kWel. Additionally, there is a biogas bottling and management by experienced/skilled engineers and • technical and/or biological problems during operation into avocado oil. The company is the number one plant where the methane concentration of the biogas technical staff, strong bio-technological know-how and • poor technical and biological design. organic avocado oil producer, with 90% of the global is increased to 97% before being bottled. With a 97% secured financing. organic extra-virgin avocado oil production. The methane content, the biomethane can be used to Turning waste from food production or agriculture into conversion of process residues, such as skins, stones fuel the company’s vehicles. The following are ideal pre-conditions for industrial energy is not just a source of green renewable energy. and wastewater, covers all energy needs of the facto- scale biogas plants to be implemented in DCs and LDCs: It can have a much broader impact, as it: ry (electricity and heat). The project implementation The digestate is separated into two phases: a solid took three years from its conceptualization to its digestate used as organic fertilizer and a liquid di- • The feedstock for biogas production is free of charge • prevents pollution of groundwater, commissioning in 2020. gestate recycled back into the mixing tank to inocu- without any competing use (or might even come • solves a waste disposal problem and its related late the fresh feedstock. with a discharge/tipping fee); costs, 3.2.2 Technical details • The existing production of energy is fluctuating, i.e. • reduces greenhouse gas emissions by mitigating unreliable. Additional electricity production from methane emissions, 3.2.3 Input and output The biogas plant consists of two digesters with a diesel - generating sets is expensive, i.e. 0.2 USD/ • provides organic fertilizers, capacity of 1,400m³ of substrate each. There is a The feedstock input is about 3,600 tonnes per year. kWh and over. • uses untapped resources, double-membrane gas holder on top of each digester It comprises 1,200 t avocado skins and stones and • creates jobs and value at regional (mostly rural) to store the biogas. Biogas can be stored and consti- 2,400 t of oil-free pulp. Combining both points can result in projects with level. tute a buffer in case of fluctuations in production or payback periods of two to four years, without taking all demand. The plant was designed to produce 3,500 From the biogas output, about 410,000 kWhel of elec- other benefits into consideration. An ideal biogas plant Nm³ of biogas per day. tricity and 200,000 kWhth of thermal power can be generates a continuous amount that is turned into heat and electricity (cogeneration). People can benefit from produced annually. As a result, the plant can cover The feedstock comes directly from the processing the complete captive power of the avocado process- cheap energy, job creation and by-products such as plant. The avocado seeds are crushed; the pulp ing, cooling facilities and packaging. The thermal fertilizers, cleaner rivers, lakes or soils, while reducing and green process water are then pumped into a 24 power is mainly used for process water heating. bad smells. m³ mixing tank. The feedstock is then fed into the digesters. 26 27
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