Retour d'expérience de l'industrie sur la certification de biomasse solide Yves Ryckmans, Chrystelle Verhoest

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1 Retour d'expérience de l'industrie sur la certification de biomasse solide Yves Ryckmans, Chrystelle Verhoest Retour d'expérience de l'industrie sur la certification de biomasse solide Historique du développement du système de vérification du caractère durable de la ressource biomasse solide pour les centrales électriques d'electrabel en Belgique et présentation du partenariat des producteurs d'électricité européens (SBP).

2 Outline of the presentation Elements of context Description of the system implemented by GDF SUEZ Current developments : Sustainable Biomass Partnership 2 26/11/2014

3 Biomass sourcing must be organized according to: availability, sustainable management, technical applicability and economic feasibility Origination of biomass Selection on sourcing, availability & logistics Selection available on sustainability criteria Selection on local stakeholders Sample lab testing on chemical & physical properties Pilot testing for boiler assessment Selection on technical criteria for firing or co-firing Selection on commercial feasibility Integrated in business modeling 3 26/11/2014

4 Wood will remain the main resource for green energy, but agricultural resources and recycled waste are growing There are 3 major resources for solid biomass: forestry agriculture waste At EU level and in the world, forestry will remain dominant but the two others are expected to grow in the future. 4 26/11/2014

5 EU is the major user of wood pellets in the world The growth is sustained by growing import from North America Export North American pellets to EU World pellets users in 2012 (millions t) EU pellets users for power in 2012 (t) EU pellets users for heat in 2012 (t) Sources Hawkins Right, Presentation AEBIOM Bioenergy Outlook report 2013, based on Eurostat /11/2014

6 How to check the energy balance of biomass supply CHECKLIST Transport of raw material: - Avg. distance - Max. distance Pelleting: - Electricity/ton pellets (+origin) - Fossil energy/ton pellets - Biomass/ton pellets Inland transport of pellets: - Distance to harbour - Truck or train Sea transport: - Capacity in tons - Distance in miles - Number of days of sea - Consumption/sea day Flatboat from ARAG: - Avg. diesel use 6 26/11/2014

7 Set up a verification scheme in collaboration with independent auditors and validate the scheme with the authorities Type of raw material 1. Independent risk assessment Certified or at least evidence for responsible management of the forests including afforestation plans Controlled impact on environment (soil, air, water) Enforcement of legislations 2. Yearly Laborelec Supplier declaration & Audit report 3. Track & trace system pellets Database suppliers Energy and CO 2 balance of suppliers 7 26/11/2014

8 Wood pellets to large power plants: one of the most efficient chain to mitigate fossil CO 2 emissions (vs CCGT natural gas PP) CO2 in kgco 2 /MWh p Germany Baltic Sweden Russia Canada Pelletising Local transport Sea/River transport River transport X=TOTAL Y= Net avoided CO 2 89% 86% 84% 80% 79% Net avoided CO 2 is evaluated against a reference fossil power plant In Belgium, the reference power plant is a Combined Cycle Power Plant firing natural gas with an efficiency of 55% In Belgium, the specific LCA-based CO 2 emission for natural gas is evaluated at 251 kg CO 2 /MWh p Considering a biomass plant with an efficiency of 34%, then Y 1 X 55% % 8 26/11/2014

9 Cascading, carbon debt and indirect land use change lead the debate on sustainability: firing round wood tends to be rejected Three major debates require additional scientific knowledge for monitoring: cascaded use of wood (setting up a hierarchy material use vs energy) carbon debt generated by the use of full trees Indirect land use change (iluc, use of agricultural land in competition with food) for cultivated biomass Lack of raw woody material in the EU stimulates the cascaded use of wood, meaning that only residues like black liquor, organic industrial residues and recovered wood could be burned for energy. Virgin wood could then be excluded for subsidies. Source : /11/2014

10 Why a common sustainability scheme? Corporate risk management of fuel procurement and new biomass power plants as well as legal obligations Disparities among different EU countries (BE, UK, NL) National principles sometimes go beyond the requirement of the RED For liquid biomass: standard CEN/EN16214 and obligation via RED 2009/28 exist EURELECTRIC & AEBIOM request uniform mandatory sustainability criteria for solid biomass (large plants) as soon as possible Trade between BE, NL and UK will only be possible in a close future if evidence of sustainability can be brought to the buyer Opportunity to make use of the biomass procurement contracts to incite biomass supplier to conform himself to minimum set of criteria and allow the supply chain to be improved year after year for larger set of criteria 11 26/11/2014

11 Focusing on sustainable sourcing solutions. SBP is an industry initiative Seven critical market players using woody biomass for large-scale heat & power generation in the European Union To tackle global warming, EU generators are encouraged by the EU and national governments to switch from fossil fuels to renewable feedstock. Financial incentives are provided so that generators can compete with conventional fuels such as coal and gas but this support is contingent on generators demonstrating that feedstock is legally and sustainably sourced. Ideally, the sector would rely on existing credible certification schemes for sustainable forest management (Why invent your own?). SBP recognises the credibility of existing forest certification schemes (FSC/PEFC) and does not wish to compete with or replicate them. However, these forest-level schemes have insufficient take-up in key forest-source areas and lack some of the key elements needed for biomass so a bridging solution is required.

12 Focusing on sustainable sourcing solutions. SBP vision & objectives SBP has set out its vision and objectives that set the direction for its work in : Vision: to enable an economically, environmental and socially sustainable solid biomass supply chain that contributes to a low-carbon economy. Objectives: To provide an effective mechanism that enables producers and users of solid biomass for energy production to demonstrate compliance with end user (European/national) regulatory requirements and alignment with existing widely-accepted sustainability standards To promote enhanced sustainable forest management and greater uptake of existing efficient and internationally recognized, third party verified forest certification schemes in key wood baskets To contribute to a strengthened scientific evidence base and a greater understanding of issues associated with the use of solid biomass for energy production To deliver increased transparency of supply-chain performance and data.

13 Focusing on sustainable sourcing solutions. The certification framework structure, process and procedures Biomass Assurance Framework (BAF): gives assurance of (1) raw biomass sustainability (BAS); (2) traceability along whole supply-chain (CoC) and (3) accurate calculation of GHG data / savings Biomass Assurance Standard (BAS) for raw woody biomass Generator / trader will be CoC certified with FSC or PEFC systems for the biomass shipping Primary Feedstock Secondary Feedstock Tertiary Feedstock Pellet plant = Certifiied Unit Generator Scope of Certification i.e. part of the supply chain which is checked during certification audits. It includes the production facility (blue box), as the pellet plant, and the storage area before shipping Inland and long distance logistics of raw material and product constitutes the chain of custody (CoC)

14 Focusing on sustainable sourcing solutions. The certification concept a risk-based approach Supply Base Evaluation Principles derived from UK TPP, including other relevant criteria Legality Ecosystems Environment Productivity Social Biodiversity Other Relevant Criteria Regional Risk Assessment Desk-based assessment against SBP-criteria results in a risk rating for each indicator + Supplier Verification Program Field-based assessment for those indicators for which no clear risk can be determined in RRA PEFC/FSC certified feedstock Low Risk Criteria No further action needed Compliance Specified Risk Criteria Implement mitigation measures

15 Focusing on sustainable sourcing solutions. The Standards The five Standards available on 1. Sustainable Biomass Standard: The Principles, Criteria and Indicators defining the management system needed to verify that feedstock is legal and sustainable 2. Verification of SBP-compliant Feedstock: The method for the evaluation of the risk associated with feedstock 3. Certification Systems Standard: The requirements on certification bodies in verifying compliance by SBP certificate holders 4. Chain of Custody Standard 5. Energy & Carbon Data Standard: Methodology for collection of data along the supply chain.

16 Focusing on sustainable sourcing solutions. Review SBP Biomass Assurance Framework Stakeholder consultation and engagement process undertaken Version 0.0 Beta standard in place Sector gearing up for test certification Further refinement will take place to: take account of learnings from test certification align with emerging regulatory requirements address stakeholder issues Piloting SBP Regional Risk Assessment concept Work ongoing with PEFC to develop Greenhouse Gas (GHG) data module for use in PEFC chain-of-custody Indicative timetable Summer 2014: BAF Version 0.0 Beta standard released for learning by doing Early 2015: BAF Version 1.0 available Additional updates where needed e.g. to include regulatory updates : Further refinement and strengthening Key aim is to more effectively embrace a wider group of stakeholders e.g. resource owners & NGOs End 2016: BAF Version 2.0 available

17 Thank you for your attention Do you have any question? For further discussion please contact : Yves.ryckmans@laborelec.com Chrystelle.verhoest@laborelec.com Specifically for SBP : peter@wilsonapplied.com 22 26/11/2014

18 LABORELEC BELGIUM Rodestraat Linkebeek Belgium FROM INNOVATION TO OPERATIONAL ASSISTANCE IN ENERGY Laborelec is a leading research and services centre in energy processes and energy use, with more than fifty years of experience. We are part of the Research and Technology Division of the GDF SUEZ Group, a world leader in the energy sector. 23 LABORELEC THE NETHERLANDS Amerikalaan AE Maastricht-Airport The Netherlands LABORELEC GERMANY Brombergerstrasse 39-41, Wuppertal Germany LABORELEC CHILE SpA Avenida Parque Antonio Rabat Sur 6165, Vitacura, Santiago Chile FIVE REASONS FOR YOU TO CHOOSE LABORELEC Wide range of technical competences in Electricity Generation, Grids, Storage and End-Use Increased profitability and sustainability of your energy processes and assets Unique combination of contract research and operational assistance Independent advice based on certified laboratory and field analyses all over the world More than 50 years of experience