CDM Potential of Sweet Sorghum Jane Romero, Srinivasa Rao and NSS - - PowerPoint PPT Presentation

Institute for Global Environmental Strategies

CDM Potential of Sweet Sorghum

Jane Romero, Srinivasa Rao and NSS Prasad

Workshop on Awareness Building for CDM in Biofuel Production CF Bentley Conference Center, ICRISAT 2-3 April 2009

Jane Romero IGES | http://www.iges.or.jp

Biofuel Use Strategies for Sustainable Development (BforSD)

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Contents

• Overview of CDM
• How to package sweet sorghum for CDM
• CDM potential and challenges of sweet sorghum
• Lessons learned from existing projects, other feedstocks
• CO2 reduction potential of sweet sorghum
• Summary

Jane Romero IGES | http://www.iges.or.jp

Biofuel Use Strategies for Sustainable Development (BforSD)

CDM Projects in India

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• large

share

• f

unilateral CDM projects in India

• price of credits issued by

unilateral CDM higher than bilateral or multi-lateral CDM projects

Jane Romero IGES | http://www.iges.or.jp

Biofuel Use Strategies for Sustainable Development (BforSD)

How to package sweet sorghum for CDM?

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Simplified Sweet Sorghum Process Scheme

Source: Chiaramonti, et al (2002)

• As bio-ethanol?
• Sweet sorghum bagasse as biomass to energy?
• Both?

Jane Romero IGES | http://www.iges.or.jp

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Why biofuels?

Source: IEA historical data and projection from World Energy Outlook 2002

Dependence on oil of the transport sector

World Oil Consumption, 1971-2030 (MTOE)

Jane Romero IGES | http://www.iges.or.jp

Biofuel Use Strategies for Sustainable Development (BforSD)

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Overview of the status of biofuels in Asia

 Driving forces of biofuel promotion

 Energy security / reduction of oil dependency  Rural development / poverty alleviation  Reduction of GHG emissions / air quality improvement and promotion of renewable energy

energy security climate change economic gains

 Trade-offs are country specific  Recognize the need for different ministries to work together (energy, agriculture, environment, economics, trade, etc)  Find the synergy between local and global costs/benefits

Jane Romero IGES | http://www.iges.or.jp

Biofuel Use Strategies for Sustainable Development (BforSD)

Challenges if as bio-ethanol CDM

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Methodology Description

AM 0047 Production of biodiesel based on waste oils and/or waste fats from biogenic origin for use as fuel AMS-III.T Plant oil production and use for transport applications

Note: AMS refers to Small Scale CDM Methodologies Source: http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html

Current CDM approved methodologies applicable to biofuels

• Limited existing methodologies
• On-going debate on sustainability of biofuels may

delay approval of additional applicable methodologies

• as of 6 March 2009, no biofuel projects among the

1,431 projects registered in the CDM portfolio

Jane Romero IGES | http://www.iges.or.jp

Biofuel Use Strategies for Sustainable Development (BforSD)

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Proposed CDM biofuel projects

Meth. No. Title / Description GHG reduction Host country Remark 69 30 TPD Biodiesel project using oil seeds from jatropha and pongamia in Andra Pradesh, India 26 ktCO2 India C 82 Baseline methodology for the production of sugar cane based anhydrous bio-ethanol for transportation using LCA 53 ktCO2 Thailand C 108 Biodiesel production and switching fossil fuels from petro-diesel to biodiesel in transport sector 26 ktCO2 India C 109 Sunflower Methyl-Ester Biodiesel Project in 33 ktCO2 Thailand C 129 Generalized baseline methodology for transportation biofuel production project with LCA 33 ktCO2 Thailand C 142 Palm Methyl Ester – Biodiesel Fuel (PME-BDF) production and use for transportation 218 ktCO2 Thailand C 180 BIOLUX Benji Biodiesel Beijing Project production of waste cooking oil based biodiesel for use as fuel 123 ktCO2 China A 185 Khon Kaen Ethanol Project 40 ktCO2 Thailand B 223 Biodiesel Project 205 ktCO2 South Africa C 224 Manufacturing of Biodiesel from Crude Palm Oil and Jatropha Oil 60 ktCO2 India C 228 AGRENCO Biodiesel project in Alta Araguala 335 ktCO2 Brazil WIP 233 Palm Methyl Ester – Biodiesel Fuel (PME-BDF) production and use for transportation in 143 ktCO2 Thailand WIP

Note: A = Approved by the Executive Board (EB); B = Project participants / EB must make some changes; C = Rejected / new Project Design Document (PDD) must be submitted; WIP = work in progress Source: Woo (2008) using data from UNEP Risoe.

Jane Romero IGES | http://www.iges.or.jp

Biofuel Use Strategies for Sustainable Development (BforSD)

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Source: http://en.wikipedia.org/wiki/Ethanol_fuel#cite_note-32, using figures from “Carbon and Sustainability Reporting Within the Renewable Transport Fuel Obligation”

Sustainability challenges: carbon intensity

Jane Romero IGES | http://www.iges.or.jp

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Source: CDM in Charts v.7 Feb 2009.

Jane Romero IGES | http://www.iges.or.jp

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Challenges if as bio-ethanol CDM

• Revival of food vs fuel debate

Source: BVSReddy, et al. Sweet Sorghum Brochure 2007

market volatility?

Jane Romero IGES | http://www.iges.or.jp

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Challenges if as bio-ethanol CDM

• Social impact considerations if farmers will divert grain

sorghum fields to sweet sorghum

• 40% reduction of grains in the market
• though possibility of quick-fix because of 2 crop cycles

per year

• ~9% increase of income for farmers will be tied to risky

investments in ethanol refineries

• farmer

cooperatives

• perating

their

• wn

ethanol refinery may shield them from vulnerability to fluctuation in sweet sorghum stalk prices

Jane Romero IGES | http://www.iges.or.jp

Biofuel Use Strategies for Sustainable Development (BforSD)

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Challenges if as bio-ethanol CDM

• Critical demand and supply of grain as population and

consumption increases

Sources: G.S. Bhalla, Peter Hazell and John Kerr, 1999. Prospects for India’s cereal supply and demand to 2020. Tomoyasu Hirano, 2007. Biofuel Resources in Asia. International Biofuel Conference. MRI.

Jane Romero IGES | http://www.iges.or.jp

Biofuel Use Strategies for Sustainable Development (BforSD)

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Potential if as bio-ethanol CDM

• Planting sweet sorghum instead of sugar cane

Sources: World Bank. “Bioethanol prospects and development opportunities in Sub-Saharan Africa”. Adapted from LAMNET brochure

• n sweet sorghum.

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Methodology Description AM 0036 Fuel switch from fossil fuels to biomass residues in boilers for heat generation – Version 2.1 ACM006* Grid-connected electricity from biomass residues (includes AM4 & AM15) AMS-I.A. Electricity generation by the user v.13 AMS-I.C.* Thermal energy for the user with or without energy AMS-I.D.* Grid-connected renewable energy connection AMS-III.E Avoidance of methane production from decay of biomass through controlled combustion, gasification or mechanical/thermal treatment

CDM approved methodologies which could be applied to biomass energy utilizing biomass feedstock solid waste

Source: http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html Note: *Preferred methodological choice for bagasse CDM projects based from IGES CDM Project Database

Bagasse for biomass to energy CDM

Jane Romero IGES | http://www.iges.or.jp

Biofuel Use Strategies for Sustainable Development (BforSD)

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Lessons learned from rejected CDM projects

• Following an approved methodology does not guarantee that the

project will be approved

• Common reasons for rejection (biomass):

Reason Biomass Baseline & Monitoring Methodology 12 Application of Methodology 4 Applicability 8 Leakage Deviation Additionality 19 CDM consideration in decision 8 Investment Analysis 7 Simple Cost Analysis Investment Comparison Analysis 1 Benchmark Analysis 3 Sensitivity Analysis 2 Barrier Analysis 7 Investment Barriers 1 Technological Barriers Prevailing practice and other barriers 2 Common Practice Analysis 1 Other Reasons

Source: IGES Review and Rejected CDM Project Data Analysis, as of 6 March 2009.

Jane Romero IGES | http://www.iges.or.jp

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Source: CDM in Charts v.7 Feb 2009.

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India Biomass (global)

Registration Number of projects 396 228 Length from pub. Comm. til reg. 347 324 Requests for review 119 64 Rate of requests for review 30.10% 28.10% Undertaken review 46 14 Rate of undertaken review 11.60% 6.10% Rejected 36 Rate of rejected 8.30% Average emission reductions (t-CO2e) 85,493 55,300 Emission reductions until 2012 (t-CO2e) 231,398 77,482 Issuance Number of projects 174 98 Issued CERs (t-CO2e) 60,470 11,096 Number of issuance 327 201 Issuance rate 92.2% Length from pub. Comm. til issuance 628 602 Requests for review 92 52 Rate of requests for review 28.10% 25.90% Undertaken review 24 10 Rate of undertaken review 7.30% 5.00% SOP for Adaptation Fund (CERs) 1,209,412 CER Prospect Expected CERs until 2012 (adjusted) (1000 t-CO2e) 227,497 67,622

Source: IGES CDM Project Data Analysis, as of 6 March 2009.

Data on India and biomass CDM projects

Jane Romero IGES | http://www.iges.or.jp

Biofuel Use Strategies for Sustainable Development (BforSD)

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CO2 reduction potential of sweet sorghum

• From Latin America Thematic Network on Bioenergy (LAMNET)

brochure on sweet sorghum, referring to the table in slide 10, assuming 1.9% of arable land in Sub-Saharan Africa planted with sweet sorghum:

• bioethanol from sweet sorghum to substitute fossil fuels could

reduce ~ 65-94 mil t CO2/y

• could reach to ~ 300 mil t CO2/y if solid biomass would be used for

power generation

Therefore, utilizing solid biomass (bagasse) for power generation is 3 times more effective in reducing CO2 emissions and generating CERs than converting ethanol to fuel.

Jane Romero IGES | http://www.iges.or.jp

Biofuel Use Strategies for Sustainable Development (BforSD)

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utilizing solid biomass (bagasse) for power generation will help India’s most CO2 emitting sector

CO2 reduction potential of sweet sorghum

Jane Romero IGES | http://www.iges.or.jp

Biofuel Use Strategies for Sustainable Development (BforSD)

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Summary

• CDM is just the “icing in the cake” – revenues from potential CERs only

cover a small fraction of the total investment costs

• Sweet sorghum is a better alternative crop to sugar cane
• For countries like India, which relies on sorghum for grains, promotion
• f sweet sorghum should be done with caution if grain sorghum fields

might be converted to sweet sorghum fields

• With limited approved methodology for biofuels, it is unlikely that

biofuels CDM projects (even using sweet sorghum as feedstock) will be significant until 2012

• Sweet sorghum bagasse to be utilized for power generation has better

potential to reduce CO2 emissions and gain CER credits from CDM

• Public electricity and heat production is the dominant CO2 emitting

sector in India; biomass energy using sweet sorghum bagasse will help reduce emissions Thank you for your attention….