FEEDSTOCK SUPPLY CHAIN
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1 FEEDSTOCK SUPPLY CHAIN Value Chain of the feedstock supply for 2G ethanol production Pisa, 19 Settembre 2014
2 Crescentino
3 Feedstock supply Agricultural residues Straws of cereals -wheat, rice, barley, sorghum, corn and rye -are largely available globally and can represent a boost maker for ethanol plants in Europe, China and North America. In other regions, like South America and South East Asia, other agricultural residues are interesting, including sugar cane bagasse and palm empty fruits. Dedicated energy crops Arundo donax, Napier grass, Switchgrass and Miscanthus are perennial grasses that can be cultivated efficiently in vast areas of the world. Those grasses are harvested annually for several years, reach high yield of biomass per hectare and require moderate inputs. The cultivation and consequently the handling and logistics can be fully mechanized.
4 Agricultura residues Sugar cane toppings, Granbio(Brazil)
5 Agricultura residues Sugar cane toppings, Granbio(Brazil)
6 Agricultura residues Sugar cane toppings, Granbio(Brazil)
7 Agricultura residues Wheat Straw, Guozhen (China)
8 Agricultura residues Wheat Straw, Guozhen (China)
9 Agricultura residues Wheat Straw, Guozhen (China)
10 Agricultural residues The conversion of agricultural residues in not in competition with other uses, i.e. animal feed. 30% of cereal straw are generally left in the field, to ensure soil fertility and carbon stock. Common practice for cereal straw. The animal feed industry uses up to 33% of the available straw. The bioethanol industry can capture 20% of the total available residues, because of logistic and operational barriers. Number of 80k tons ethanol plant per country in Europe % Million tons of straw 64 ~ 30% left in field 148 ~ 70% 7 collectable straw 69 33% use for bedding and feeding 79 37% available for biomass based industry 16 7% for bioethanol plants
11 EU wheat straw: 45 plants 11 France 8 Germany 4 Poland 2 Italy 2 Spain 2 Romania 3 United Kingdom 2 Hungary 2 Denmark 2 Bulgaria 2 Czech Republic 39 plants 16 Million tons of biomass 2 Million toe Eth billions of investment 800 millions of revenues to farmers (each year) 2 2 2
12 Global picture 20% collection of total available biomass Proesa plants 80,000 TON
13 Barriers for agric residues Market price fluctuations Sesasonabilty of biomass supply Low density ( ) TON/m3 Farmers are adverse to long term purchase contracts 140 Price in Italy 45
14 Dedicated crops The cultivation of dedicated energy crops is scarcely in competition with food crop production. Energy crops are high yielding and stock large quantities of carbon in the soil % of EU agricultural area is under set-aside and today is not used for food production. Soils and water requirements for dedicated crops are lower compared to food crops and therefore can be introduced as diversification practice in existing farms in sub-used areas. LUC and ILUC factor for cellulosic energy crops for advanced biofuel production is conventionally considered as zero. Cellulosic biomasses may be cultivated on marginal or polluted farmland, moreover they can also be irrigated with waste-water. The production of those valuable crops could help in the near future to solve some serious environmental problems in several industrial abandoned sites and increase the sustainability of land management all over the world.
15 Arundo donax Perennial crop (> 10 years) High yield (20-40 TON ha) Fully mechanized supply chain Optimal for farm diversification Biochemtex Agro experience 6 years research and demonstration in Piedmont, Italy 1 year research program in Sardinia 700 ha contracted to supply Crescentino plant Optimization of agricultural operations and improvements of mechanization Trials under development in Europe and Asia Scientific partnerships with leading research institutes in Europe 15
16 Potential for Arundo donax Reliable energy crops supply chains are linked to high yield, correct climatic conditions and land availability
17 Progetto Italia, Sulcis Biorefinery of 80,000 TON Etohin Portovesme by Development of Arundo donax local supply chain. Target priorities Cultivationof ADX on soilscontaminatedby heavymetals; Environmental control of spontaneus ADX along rivers and streams; Cultivation of ADX on abandoned and margina soils. Project status Supply chain feasability demonstration on site; Research agreement with NRD and SSSUP; Discussion with local stakeholders LIFE+ proposal Demonstration of pyto-remediation and reclamation of polluted agricultural land in Sulcis using valuable non-food cellulosic biomass
18 SIN 350,000 ha. 26,000 ha perimetred. +1,000 ha irrigated land 18
19 Spontaneus Arundo donax Widely distributed in Souther Sardinia (+10,000 Km) Caused by mismanagement of rivers, stream, channels, wind mitigagion measure. 19
20 Benefits for farmers Cultivation of dedicated energy crops and collection of agricultural residues offer interesting solutions for farmers. CAP incentives: by cultivating sub-used land with cellulosic energy crops, farmers can get constant CAP incentives in the long term. Access to EU funds: cultivation and harvesting of biomass for innovative supply chains is incentivized by EU and Regional funds. Diversification: by introducing energy crops, farmers can diversify production combining food crops and cash crops. Local market: since biomass can not be trasportedfor long distances, farmers deal with nearby end-users (the industry) and therefore maximisetheir value chain. 20
21 Role of the industry The industry can offer interesting solutions to farmers. Stable market: long term off-take agreements for produced biomass, at market price or fixed price to avoid market fluctuations. Access to capital: by guaranteeing long term purchase of the biomass, the industry can help farmers in getting loans from commercial banks or development funds. Co-investmets: the industry can support the development of biomass supply chains by co-investing with farmers in plantation set up, modernization of agricultural practices and purchase of agricultural machineries. 21
22 Chemtex Agro Strada Ribrocca, Tortona (AL) Italy Federico Maria Grati Project Manager Mail:
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