Sustainability and quality issues

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1 Ref. Ares(2016) /06/2016 Sustainability and quality issues Horizon 2020 Coordination and Support Action number : Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors Deliverable No. Dissemination Level Partner Name Work Package Status D.5.3 Report on Sustainability and quality issues Public Netherlands Enterprise Agency (RVO) Work package 5 Capacity building activities targeting main stakeholders groups Final Version Task 5.2 Authors Maria Dragoman Matté Brijder Rene Wismeijer Kees Kwant Client European Commission Innovation and Networks Executive Agency (INEA) Horzion 2020, LCE-14, 2014 Date Utrecht, August 2015

2 LEGAL DISCLAIMER This document is funded under the LCE Support Programme Market uptake of existing and emerging sustainable bioenergy, as part of the Horizon 2020 Framework Programme by the European Community. The content of this document reflects solely the views of its authors. The European Commission is not liable for any use that may be made of the information contained therein. The Bioenergy4Business consortium members shall have no liability for damages of any kind including, without limitation, direct, special, indirect, or consequential damages that may result from the use of these materials.

3 Content 1. INTRODUCTION SUSTAINABILITY ISSUES AND CERTIFICATION SYSTEMS What is a Biomass Certification System? Sustainability Principles and Criteria The Chain of Custody The Certification Management System BIOMASS SUSTAINABILITY CERTIFICATION SCHEMES Certifications for Forest Biomass FSC PEFC The Programme for the Endorsement of Forest Certification Certification for All Types of Biomass NTA ISCC International Sustainability and Carbon Certification Certification for Biofuels HOW TO SELECT A CERTIFICATION SYSTEM? Impacts of Biomass Production and Usage Environmental impacts Socio-economic impacts Potential Impacts and Solutions for Unsustainable Biomass Competition with Food Carbon Accounting Greenhouse gas (GHG) emissions Actions at EU and national level with regards to carbon accounting and GHG emissions Actions at international level with regards to carbon accounting and GHG emissions Indirect Land Use Change and Biomass Production (iluc)

4 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors 5. NATIONAL REGULATIONS ON BIOMASS SUSTAINABILITY IN THE EU THE NETHERLANDS CASE SUSTAINABILITY OF IMPORTED BIOMASS IN THE SDE SCHEME SUSTAINABILITY OF ORGANIC RESIDUES FROM AGRICULTURE AND WASTES RECOMMENDATIONS FOR SUSTAINABLE BIOMASS USAGE AND CONVERSION36 9. EXISTING SUSTAINABILITY SCHEMES REGARDING LARGE SCALE HEAT FROM BIOMASS PART II QUALITY OF SOLID BIOMASS The Importance of Fuel specification and Quality Assurance Quality Standards Content of EN ISO series: Fuel Specification and Classes for Solid Biofuels Standardization of Quality Assurance of the Supply Chain Quality Certification for Pellets Quality Certification of Wood Chips Biomass Supply Contracts ANNEX I OVERVIEW OF EN STANDARDS LITERATURE

5 1. Introduction The Horizon 2020 project Bioenergy4Business aims to increase the usage of bioenergy through an (at least partial) fuel-switch from coal, oil or natural gas, which are used in in-house boilers in commercial sectors for heat purposes or in district heating, to solid biomass sources. The erection of completely new biomass heat applications is considered as an option as well. Bioenergy4Business focuses on solid biomass sources and on medium and large heat-only boilers (> 100 kw heat load) providing low temperature and process heat for commercial usage. Bioenergy4Business builds bridges between policies and markets to support the creation of an enabling environment, the use of sound business and financing models and the careful assessment and implementation of bioenergy heat in local and district heating and in in-house applications. These aspects are considered for the most promising market segments among industry and commerce, residential buildings, agriculture and commercial and public services. Bioenergy4Business involves partners from twelve EU Member States and Ukraine. Eleven of these project partners (AT, DE, BG, CR, FI, GR, NL, PL, RO, SK and UA, except BE and DK) are target countries, where tailormade activities for the most promising market segments are taking place from January 2015 until August Figure 1: Countries where Bioenergy4Business will be implemented. Bioenergy4Business helps exploit the considerable economic and sustainable potential of European bioenergy sources for heating, which are locally available at reasonable prices. These can offer a viable alternative to vulnerable European businesses currently depending on fossil resources, which are often imported from politically unstable regions. Bioenergy4Business makes new market segments for solid biomass usage accessible and enhances the use of both more solid biomass sources and so far not used ones (e.g. pellets, straw etc.) in European heat markets. The website of the project is 5

6 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors The purpose of this report This report was written within the frame of task 5.2 of the Bioenergy4Business project. Sustainability certification of solid biomass is gaining increasing interest. Both European and national governments are considering proposals for (mandatory or voluntary) sustainability requirements for solid biomass used for energy production. For market players and other stakeholders it is often difficult to obtain and maintain an accurate overview of these developments. The objective of this report is to facilitate an informed decision-making in relation to sustainability certification of solid biomass. For this purpose, an inventory of the main sustainability and quality issues of solid biomass, is made. The following topics are covered in this report: Inventory of sustainable forest biomass by certification (FSC, Carbon Debt etc.) Inventory of organic residues from agriculture and wastes Inventory of standards in woody biomass, pellets, etc. Recommendations on how to use the certification This report covers all parts of biomass; local and imported. It serves as a survey about sustainability; it does NOT prescribe sustainability to the project partners or to Member States. Based on this document a discussion with the project partners about the best implementation in Europe will follow. 6

7 2. Sustainability issues and certification systems This section provides background information to the biomass sustainability debate. It summarizes how some actions at various levels (including legislative requirements and voluntary actions) have been taken and the role of certification. The market for solid biomass has been growing rapidly in recent years. At the same time, there has been growing concern and debate over the sustainability of biomass. In order for biomass to be effective it must be produced in a sustainable way. This means that it needs not only to reduce greenhouse gas emissions, but it also needs to be used in a profitable manner on the longer term, without harming the environment or the local population. The production of biomass involves a chain of activities ranging from the feedstock growing to its final conversion into energy. Therefore, every step along this way poses sustainability challenges that need to be managed accordingly (European Commission,2015,para.2). The usage of solid biomass for energy production has led to some growing concerns over possible negative socio-economic effects. Some examples are the competition between food and fuel, land conflicts or biodiversity loss that can arise from unsustainable biomass production. Glossary Bioenergy: energy derived from biomass, either through direct use as fuel or after processing into liquids and gases. Biomass: biological material derived from (recently) living organisms. Biomass includes wood, agricultural crops, waste and residues as well as manure. Solid biomass: plant and animal biomass in solid form: woody materials (e.g. logs, chips,pellets, charcoal), solid agricultural waste (e.g. straw, rice husks, nut shells) and dry manure. (European Parliament, 2015) In response to the growing concerns over biomass sustainability there have been a variety of initiatives to ensure that biomass production and use is sustainable. These initiatives are top down, government driven initiatives, as well as bottom-up initiatives, driven by the private sector and multistakeholders groups. Top down initiatives: The Netherlands was among the first European countries to initiate national-level initiatives on biomass sustainability, along with the United Kingdom and Germany. In 2006, a multi-stakeholder commission, known as the Cramer Commission, was established by the Dutch government. The Cramer criteria specifies six sustainability categories: 1. Greenhouse gas emissions and carbon stocks; 2. Competition with food production and local applications of biomass; 3. Biodiversity; 4. Environmental impacts on water, air and soil; 5. Prosperity of the local economy; and 6. Social well-being of the local population and of employees. At the time of publication the Cramer Criteria were internationally considered as a set of sustainability criteria for biomass. Later in 2009, the criteria was used as a basis for the development of the Dutch NTA8080 biomass certification scheme (See ). 7

8 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors At the EU level, there are established binding sustainability criteria for biofuels for transport and other bio liquids, however not for solid biomass. In 2014, the European Commission published a report on the sustainability of solid and gaseous biomass for heat and electricity generation. The report encompasses present and future policy developments aimed at minimizing negative impacts while maximise the benefits of using biomass. The European Commission has also issued non-binding recommendations (see below) on sustainability criteria for biomass. These recommendations are meant to apply to energy installations of at least 1MW thermal heat or electrical power (European Commission,2015). Sustainability issues for solid and gaseous biomass in electricity, heating and cooling: 1. Sustainability in production (land management, cultivation and harvesting) Sustainability related to biomass production concerns inter alia the protection of highly biodiverse ecosystems and of carbon stocks, such as those in forests. 2. Land use, land use change and forestry accounting Deforestation, forest degradation and a number of other practices can result in a significant loss of terrestrial carbon and/or significant changes in productivity (e.g. harvesting practices that result in excessive removal of litter or stumps from the forests). 3. Life cycle greenhouse gas (GHG) performance Deforestation, forest degradation and a number of other practices can result in a significant loss of terrestrial carbon and/or significant changes in productivity (e.g. harvesting practices that result in excessive removal of litter or stumps from the forests). Emissions related to land use, land use change and forestry (LULUCF), are reported by all Annex 1 countries under the United Nations Framework Convention on Climate Change (UNFCCC), including EU Member States, Russia, Canada and the USA, but accounting methods as applied under the Kyoto Protocol need to be improved. 4. Energy conversion efficiency Reducing energy consumption and increasing the efficiency of energy production As for the future developments, the Energy Union proposal 80, article 13 requests a new policy for sustainable biomass and biofuels as well legislation to ensure the 2030 EU targets are met cost effectively. (see Energy Union Package, p.21 ) The European Commission has announced that by 2017 it will put forward a new Renewable Energy Directive for the period beyond 2020, aimed at reaching at least 27% of renewable energy in the EU energy mix by 2030 and setting out, among other things, a 'bioenergy sustainability policy'(european Parliament, 2015). As regards to forest biomass, in 2013 the European Commission adopted a new EU forest strategy, which addresses the increasing use, overall, of forests for a variety of purposes, including bioenergy. The aim is to ensure that all EU forests are managed according to sustainable forest management principles by 2020 (European Parliament, 2015). Bottom-up initiatives: There have been a variety of international initiatives aimed at setting standards for sustainable biomass production and use. These can be categorized as follows: -Sustainable forest management schemes. Examples are the FSC (Forest Stewardship Council) and PEFC (Programme for the Endorsement of Forest Certification) 8

9 -Crop-specific certification schemes. Examples include the Roundtable for Sustainable Palm Oil (RSPO) and BonSucro (for sustainable sugarcane). -Bio-energy schemes. Examples include the NTA8080, the Roundtable for Sustainable Biofuels (RSB) and the International Sustainability and Carbon Certification Scheme (ISCC). -Other schemes. Examples include Rainforest Alliance or FairTrade, which are schemes that focus rather on specific niche markets(rvo,2013) In general there is consensus among stakeholders that the certification of biomass has the potential to reduce the potential negative effects of biomass production. However, there are stakeholders that argue over whether the set of sustainability criteria is sufficient or the methodology is correct. For example, there is a debate as to whether carbon debt shall be included at all, included as a separate criterion or be included in the existing greenhouse gas balance criteria. Another issue is the robustness of the individual certification. This refers mainly to the auditing system, to the accurate verification of the compliance with the sustainability requirements. And not the least, there are concerns that the indirect effects (such as ILUC, competition with food) cannot be managed by certification alone (See 5.2.) (RVO, 2013). A biomass certification system is an independent seal showing that biomass or biomass-based products satisfy a certain sustainability standard. Certification systems give all those participating in the biomass chain precise information on how to comply with regulations to ensure the result will meet sustainability criteria. Even though there is still a lot to be done in the area of biomass (RVO, 2013, p.2) certification and there is still a lot to learn, recommendations can be made on how to successfully produce sustainable biomass. In order to choose for the most appropriate certification, an overview over the main developments and elements of sustainable biomass certification is needed. In general, the recommendations made in this report are based on the Netherlands Sustainable Biomass Programmes(NSBP). 2.1 What is a Biomass Certification System? This section covers the definition of biomass certification and its main elements. A certification scheme is a framework and a set of rules that ensure that sustainability requirements are met. These requirements can take the form of a single criterion or process, a set of principles and criteria. The main purpose of a certificate is to show the purchaser that the product complies with certain qualities or follows certain procedures (RVO, 2013). Biomass certification schemes include a set of principles and criteria that are meant to ensure that bioenergy is produced, processed, transported and applied sustainably. Biomass certification allows companies to show that their product is sustainable at any step along the supply chain. (RVO,2013) Although biomass can come from many different sources, wood is by far the most common. In general, the criteria for sustainable biomass cultivation include a combination of environmental criteria, social criteria and economic criteria. Environmental criteria can include the requirements with respect to protection of biodiversity, or maintaining the quality of air, water and soil. The social criteria can relate to issues such as workers rights and respecting rights of local communities. Economic criteria can include for example a longterm approach of the business planning. Besides the criteria biomass certification schemes also include rules for tracing the certified biomass through the supply chain, for the certification process, audit quality, and claims that can be made by certified 9

10 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors operators. Therefore, in order to have effective certification schemes, these need to rely on successful and easy traceability. In general, a certification process is handled by a certification body, which is a third-party intermediary between buyers who demand certification and sellers who comply with it. The accreditation body, which can be a government body or semi-autonomous body, oversee the work of the certification bodies. The accreditation bodies approve certification bodies and their certification practices (RVO,2013). Today there are some certification systems that are recognized only at national level, others at international level. The certification systems can be developed by different parties, some are developed by NGOs, governments, businesses or associations. Because of this, each certification can emphasize different aspects and interests, and can have different scopes and complexities (RVO, 2013). Regardless of this, a certification system has three main elements: Sustainability principles and criteria The Chain of Custody The rules managing the system 2.2 Sustainability Principles and Criteria Sustainability definitions show a number of similarities in terms of coverage of sustainability principles and criteria, but there is a variation in the way these criteria are measured. One of the most often cited sustainability criteria are found in the People, Planet, Profit (PPP) approach (RVO, 2013, p.2). A sustainability principle is generally formulated as specific objectives and the corresponding sustainability criteria specify the conditions that need to be met in order to achieve a principle. Because both principles and criteria are not designed to be audited (they are too generic), indicators are required for each criterion. Indicators can be assessed in practice and are pieces of specific evidence that demonstrate the criterion. In addition, a scheme may provide guidance for each criterion, that consists of information to help the producer and auditor understand what they need to do in practice. For example, the NTA 8080: Principle NTA 8080 Principle 4: Biomass production does not affect protected or vulnerable biodiversity and will, where possible, strengthen biodiversity. Criterion NTA 8080 Criterion 4.1: No violation of national laws and regulations that are applicable to biomass production and the production area. Indicator: The organization shall prove that, as far as applicable, the national laws and regulations are known in general and the laws with respect to [ ] protected areas, wildlife management [ ] and the rules arising from signing of international conventions in particular. Guidance Convention on biological diversity (CBD) and Convention on international trade in endangered species (CITES) can be considered in case of international conventions. (RVO, 2013). 10

11 2.3 The Chain of Custody The Chain of Custody (CoC) is the method which connects sustainability information or sustainability claims to feedstock, intermediate products and final products. The chain of custody is crucial in certification, as biobased products must meet sustainability criteria from the moment they are grown to the moment they are converted into energy. (RVO, 2013) Figure 2: Chain of Custody for biofuels as an example for solid biomass (RVO, 2013) Practically this means that each party or economic operator in the chain is verified through control mechanisms and must comply with the sustainability criteria. When a party within the Chain of Custody doesn t comply with the sustainability requirements the chain of Custody is lost (RVO, 2013). There are different control mechanisms, which can vary in level of strictness. Identity preserved: which assures that the certified products originate from identifiable sources. The product cannot be mixed with any other product (certified or not); 11

12 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors Physical segregation: this means that only certified products are delivered to the end user. The 100% certified product flow is kept physically segregated from other product flows and can be mixed only with other certified products; Mass balance: which administratively monitors the trade of certified products throughout the supply chain. It allows for mixing certified and non-certified products at any stage in the supply chain, provided that overall company quantities are controlled; Book-and-claim: method consists in tradable certificates. It does not offer any traceability, since the direct link between physical product flows and the sustainability characteristics is absent. (RVO, 2013) 12

13 2.4 The Certification Management System For each certification there is a management system that sets out the rules by which it operates. This can include the rules that govern audits, the level of transparency and accessibility, the level of stakeholder engagement or the way the complaints are handled. In order for a system to be transparent and accessible, information needs to be made readily available. This can include rights and obligations of certified companies, documentation of the certification system, lists with certified companies and assessment reports. A certain level of stakeholder engagement needs to be assured, by making them able to review or evaluate the certification system. Apart from these, the certification system needs to have a responsive complaints system that is easily accessible by any person. Audit system rules are very important for the certification system. In this context these refer to aspects such as: The audit frequency and validity, which determines how often the auditors determine the validity of the certificates. Audit types which can range from self-declarations to full filed audits. The audit management which sets out the specific procedures and how they are to be executed. This is specified in a standard document against which the auditors evaluate compliance. It is necessary to clearly define the sanctions for non-compliance. This needs to determine how and how soon the failures to meet the standard requirements are to be corrected. The transparency and accessibility of the system should be achieved by making information publicly available. Stakeholder involvement needs to be possible during the audit process, either in terms of participating in the audit process or in terms of observing the process. A complaints system needs to be set in place, which can be easily accessed by any person. (RVO, 2013) 13

14 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors 3. Biomass Sustainability Certification Schemes The implementation of the non-binding sustainability criteria for biomass is considered rather patchy and some stakeholders have expressed concerns that divergent national sustainability criteria can be a barrier to EU trade in solid biomass. Nevertheless, there are a series of sustainability schemes relevant to energy biomass: criteria and indicators for sustainable forest management by Forest Europe, an intergovernmental body; certification schemes for forestry products such as FSC and PEFC: and industry-led initiative for other types of sustainable biomass or standards such as the ENplus certification for wood pellets.(european Parliament, 2015) In order to facilitate an informed decision-making in relation to sustainability certification of solid biomass, the most important sustainability certification schemes for biomass and their key features (liquid biofuels, solid biomass) are described in this section. 3.1 Certifications for Forest Biomass FSC FSC is a global organization that operates in more than 80 countries. The Forest Stewardship Council sets standards for responsible forest management. It is a voluntary program, that wants to ensure that the forest market demand is responsibly managed. It is a widely respected standard in forest certification, as it is being supported by groups such as Greenpeace, Natural Resources Defense Council, National Wildlife Federation and WWF. As FSC is a well-known world-wide certification, this brings several advantages: credibility, community engagement, access to the markets and environmental protection. There are two types of FSC certification: Forest Management and Chain of Custody. There is also a FSC Mix label, that was introduced in This allows manufacturers to mix FSC-certified material with non-certified materials in the FSC labelled products under controlled conditions. A FSC factsheet developed by RVO can be found here. Find out more about the certification system from the official website: PEFC The Programme for the Endorsement of Forest Certification PEFC is an international non-profit, non-governmental organization established by national organizations from eleven countries, representing a wide range of interests to promote sustainable forest management. The organization looks especially at the ways to promote small forest managers, including family- and community-owned forests. 14

15 The PEFC endorses national forest certification systems (36 endorsed national certification systems) developed through multi-stakeholder processes and tailored to local priorities and conditions. The process for obtaining PEFC certification can differ from country to country and type of certification. PEFC provides: The PEFC Sustainable Forest Management, which is an independent recognition of their responsible management practices of forest owners and managers. The PEFC Chain of Custody, which is granted when all entities along the supply chain have to possess a PEFC Chain of Custody certificate. Project Certification, which is a specific form of Chain of Custody certification that allows companies to take advantage of PEFC certification for their projects. Also the PEFC Chain of Custody certification offers an efficient mechanism for companies to demonstrate alignment with EU Timber Regulation (EUTR) requirements. An PEFC factsheet developed by RVO can be found here. Find out more about the certification system from the official website: Certification for All Types of Biomass NTA 8080 In the Netherlands, the NTA 8080 (Nederlands Technische Afspraak Netherlands Technical Approach) is a Dutch certification system. The certification contains details of the sustainability criteria, as defined by the project group on Sustainable Biomass Production (Cramer Commission), for solid, liquid and gaseous biomass. The NTA8080/8081 is meant to be applied by organisations producing, processing, trading or using biomass for energy application. This certification is used to prove the sustainability of sold or used biomass. Find out more about the certification from the official website An NTA8080 factsheet developed by RVO can be found here ISCC International Sustainability and Carbon Certification ISCC was developed in Germany; it is a global initiative developed with multi-stakeholder involvement. It covers all types of biomass and has global coverage. On the international market, ISCC EU is the most widely used scheme for EU RED certification. With the ISCC+ schem an extension to solid biomass and biobased materials was achieved. Find out more about the certification from the official website: 15

16 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors An ISCC factsheet developed by RVO can be found here Certification for Biofuels 2BSvs Initially this certification was a French agribusiness initiative developed by a consortium of companies (mainly economic operators involved in grain production). The scheme covers the entire supply chain of the biofuel industry and is globally applicable to any type of biomass and biofuel. Find out more about the certification from the official website: An 2BSvs Factsheet developed by RVO can be found here. Bonsucro Bonsucro is a global non-profit, multi-stakeholder organisation fostering the sustainability of the sugarcane sector. This certification is designed specifically for the sugar cane industry. Find out more about the certification from the official website: An Bonsucro factsheet developed by RVO can be found here. REDcert It was developed by a group of associations and organisations from the German agricultural and biofuel sector. The certification system can be applied to all of the steps involved in the process. Besides being approved for the EU member states, it is also approved by Ukraine and Belarus. The system is intended to be used for biofuels and bioliquids produced from different types of biomass. This includes biomass derived from agricultural feedstock as well as biomass derived from waste and residues as far as the specific requirements set up in article 17 (1) and (2) of the European Renewable Energy Directive 2009/28/EC (RED) are met. Find out more about the certification from the official website: RSB (The Roundtable on Sustainable Biofuels) It is applicable without geographical or commodity limitations. It is a global standard and certification scheme for sustainable production of biomaterials and biofuels. Find out more about the certification from the official website: An RSB factsheet developed by RVO can be found here. 16

17 Table 1 Certification schemes and end-use sectors where they can be applied VSS Sector Food Feed Forest Biofuels Bioenergy Biomaterials products (heat & (e.g. bioplastics) (timber) power) Bonsucro RSB ISCC (+) 2BSvS NTA8080 FSC PEFC Source: Inventory trends sustainability biomass, Forth coming 2015, Comission Corbeij the Netherlands 17

18 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors 4. How to Select a Certification System? The decision tree below provides a practical guidance to operators in selecting the sustainability certification scheme for solid biomass. It helps an organization decide which certification scheme is necessary or most appropriate in a particular situation. 18

19 Figure 3: Decision tree for selecting a sustainability certification scheme (NL Agency, 2013, p.30) 19

20 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors Table 2 Summary of biomass types, geographic scope and biomass applications covered by the respective solid biomass certification schemes Source: NL Agency, p.17 20

21 Table 3 Summary of sustainability principles covered by certification schemes + The principle is covered by the scheme ( significant differences may exist in the contents of the principle (criteria and indicators) -The principle is not covered by the scheme Source: Nl Agency, 2013, p.19 Producing energy out of biomass does not necessarily imply that it is also sustainable. Many times the production and usage of biomass can have severe impacts on the environment. Therefore, in order to prove diminish those concerns, certifications that guarantee the sustainability of biomass have been developed and used. 4.1 Impacts of Biomass Production and Usage There are numerous projects that demonstrate that through the production and use of biomass the negative impacts can be avoided and the positive impacts can be enhanced. But in order to achieve this, projects need to be carefully designed, and special attention needs to be given to measuring, verifying and 21

22 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors monitoring the impacts. (The Netherlands Programme for Sustainable Biomass-NPSB- supported by the Netherlands Enterprise Agency, gathered important lessons learned from 41 international biomass projects that were developed between 2009 and Many of the lessons shared in this section are based on these collected stories). In general, positive results are achieved when alternative business models are chosen over the conventional ones; models which look, for example, into unexplored feedstock resources, such as the valorisation of residues and waste streams. This results in integrative models that usually have multiple market outlets. The best example of such model serves the food-fuel-feed sector and contributes to the regional development as well. Moreover, the benefits are maximized when there is also an efficient use of technologies across the supply chain. (NPSB,2013) Usually when talking about the impacts of biomass for bioenergy, the discussion revolves around three main elements of sustainability: environmental, economic or social impacts. A one size-fits all solution, through which negative impacts are avoided and positive ones are fostered, does not exist. It is also very important to understand these impacts and to determine the appropriate balance between sustainability and development, which can be different from case to case Environmental impacts The NPSB projects demonstrate that positive environmental impacts from bioenergy production can be brought about. If projects are implemented properly, they can improve the water, air and soil quality. In terms of water quality, projects have proven that the use of wastewater and the use of algae to produce biofuels can contribute to cleaner water (see projects catalogue). In terms of soil quality, there are agroforestry projects that have contributed to increased on-site biodiversity or the plants have protected the soil against erosion. Added value can be created by using underused land, for example by integrating new crops into the existing production or by using marginal land. Detailing and maintaining ecological corridors during the development of new biomass production units, has the potential to maintain or enhance biodiversity. Establishing local production networks and usage lowers the financial and environmental transport costs. (For more details on this, see project DBM02012 or DBM02020 from the projects catalogue) (Nl Agency, 2014). The tool BioESoil has been developed to assess the impacts of bio-energy on soil quality. It takes into account nutrient losses during the bioenergy production process, potential nutrient return with residues and effects on soil organic matter. In terms of air quality, it is generally considered that biomass fuels do not generate harmful CO 2 emissions into the atmosphere. Moreover, using biomass from agricultural residues and wastes, diverts the material for ending up in the landfill. (RVO,2013) 22

23 4.1.2 Socio-economic impacts In terms of socio-economic impacts, it was shown that biomass projects can bring additional income in the region, provide employment, and contribute to food security. Biomass can be taken from many sources, indefinitely and, where well managed, contribute to security of energy supply. This can be beneficial especially in developing countries where food or energy security are crucial. For example, in Brazil the mechanization of sugarcane harvesting has resulted in improvements of the labour quality in the sector. Other examples are the co-cultivation of shrimps and algae (See DBM02020) which have created an additional income stream for small farmers or the creation of jobs in South Africa (See project DBM02037) which has created economic spin-off in the rural area. Biomass related activities can create long-term jobs and income for local people and companies. Some biomass companies invest in services such as housing, water supplies, education, medical care, etc. In other cases biomass production companies efforts' lead to governance structures or empowerment of communities and farmers. Fair dealings with local businesses ((sub-)contractors) or small farmers can also lead to opportunities for shareholding (RVO, 2013). 4.2 Potential Impacts and Solutions for Unsustainable Biomass The main fears associated with biomass for bioenergy are mainly two: that it does not actually reduce greenhouse gas emissions and that the cultivation of biomass can reduce the arable land, necessary for food production. These problems are usually correlated with other negative impacts such as poor labour conditions, infringed land rights, or high food prices. Countries with weak law enforcement are seen as most vulnerable targets for the production of biomass. (RVO, 2013) In order to understand these negative impacts better and how they can be avoided, the following issues are discussed: the (agricultural) biomass competition with food, carbon accounting, indirect land use change and greenhouse gas emissions. RVO(2013)provides background information on the indirect effects of biomass use for bioenergy in the Handbook for sustainable certification of solid biomass for energy production. Here there are covered in detail the possible negative effects of biomass. Based on this handbook, a short description of carbon debt, iluc, GHG and possible solutions are given in the following section. For more in-depth information please consult the main document here Competition with Food Food security comprises four main dimensions: availability, access, utilization and stability. The first dimension refers to the importance of having available the appropriate food either through domestic production or through imports. The second dimension refers to food access through prices or income, but it also refers to the access that is given through land or other resources. The utilization dimension refers mainly to the food quality and to its nutrition. Finally, the stability dimension is the basis of all three, meaning that there needs to be access to food all the times, without having any economic or climate crisis jeopardising this. 23

24 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors The figure below presents the possible impacts of (agricultural) biomass, and more specifically of biofuels on the four dimensions of food security Figure 4: Possible impacts of (agricultural) biomass on food security There are several ways through which (agricultural) biomass for bioenergy can affect these food dimensions. Firstly, by using land to produce biomass, there is consequently less land for food production. This consequently affects the food trade by either creating shortfalls in domestic food production or by raising expenses. The biomass production can also put more pressure on the land, as many times there is the increasing need for the farmers to use more water and fertilizer for their crops. Possible Solutions Biomass can contribute to overall macroeconomic performance and can raise living standards through spillover effects. This is to be achieved however through strict control over the biomass processes and investments. When this is done the stability aspect of the food security can be tackled as well. For this it is important to ensure that biomass investments strengthen the local economy and the population benefits from this. RVO(2013) identified four ways in which this can be achieved. First, combining the production of biomass for bioenergy may have positive spill over effects for food production, increasing the incomes of farmers). Secondly, the government needs to be enabled to make sound policies that assures the biomass production is beneficial to rural communities. And thirdly, rural communities need to be ensured that they still have access to land for food production for their livelihoods. (RVO, 2013) You can find more in-depth information and recommendations on improving food security in the Report: Combining bio-energy production and food security. 24

25 4.2.2 Carbon Accounting When burning biomass, CO 2 is still emitted, however at a lower concentration than in the case of burning fossil fuels. The CO 2 emissions from burning the biomass are part of the so call short-term CO 2 cycle, while the CO 2 emissions from burning fossil fuels are part of the so called long-term CO 2 cycle. A growing tree captures CO 2, a process called carbon sequestration. When it dies it releases the amount back into the atmosphere, a process called carbon release. This happens whether it is removed or it is left on the ground to decompose. Because each tree can release as much carbon as it captured, it has a net zero impact on the total amount of CO 2 in the atmosphere within its lifetime. This is called carbon neutrality. (RVO, 2013) However, this issue becomes more complicated when bigger tree plantations are considered, such as forest stands or landscapes. As a result a pool of trees can be carbon neutral, carbon positive or carbon negative. For example, if a forest has less growth (carbon sequestration) than removal (carbon release) then there is a net carbon increase in CO 2 released from the forest within the given time period. The opposite is also true if the forest is adding more biomass than is being removed, then it is acting as a carbon sink. Whether a forest is a net carbon sink or net carbon source depends on a number of factors, e.g. the age and typology of the forest, the harvest rate, etc. When forest biomass is harvested and burned for bio-energy generation, a forest may become a temporal carbon source: CO 2 -emissions from burning are released immediately, while offsetting the CO 2 -emissions by forest regrowth (carbon sequestration) takes time. This temporal imbalance between carbon emission and carbon sequestration is referred to as carbon debt. The carbon debt needs to be paid back before the forest bioenergy system is a net contributor to climate change mitigation. (NL Agency,2013, p. 4) For more information on carbon debt please consult the module 610 from the Handbook Sustainability Certification of Solid Biomass for Energy Production. Possible Solutions One should distinguish between national production and use of biomass and the use of international traded biomass. The LULUCF accounting and reporting reveal the carbon balance on a national level. Several inventories 1 have shown that up till now and also in the foreseeable future European forests show a positive carbon balance. European forests can at present mitigate about 9% of the total European carbon emissions. Further information about LULUCF accounting is given in paragraph In case of international trading it has to be recognized that trading is not included in the LULUCF inventories in a proper way and project developers or governments supporting traded biomass have to develop a method to safeguard the carbon balance. As such methods do not yet exist governments can use the precautionary principle and define specific biomass streams with no or less dispute about the carbon balance (e.g. forestry residues)

26 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors In case of national production and use of biomass LULUCF accounting systems cover the reporting on greenhouse gas (GHG) emissions into the atmosphere and removal of carbon from the atmosphere resulting from our use of soils, trees, plants, biomass and timber. The reporting may be used for the verification of the sustainability of the biomass used, i.e. relate LULUCF accounting to sustainable biomass. In case of international biomass trade it is recommended to include carbon debt criteria in the certification for sustainable biomass. It is also recommended that actors should follow developments in the debate on carbon debt and should foresee how these developments would impact their projects in the future. In the Netherlands, the latest SDE+ sustainability requirements for co-firing and large scale heat production has included the carbon debt criteria because of the large import of biomass to the Netherlands. An assessment was made for several biomass types to see if and how they comply with the carbon debt criteria. You can find the document here. The SDE+ is further explained in chapter Greenhouse gas (GHG) emissions A crucial factor for biomass sustainability is the assessment of the GHG emissions minimum reductions along the entire biomass chain. This means taking into account the GHG from the moment the biomass is cultivated up to the moment it is used in the power plant. When all these emissions are summarized the emissions need to be lower than the fossil fuel reference. Usually this represents a percentage of the fossil fuel reference. (RVO, 2013) Until recently the level of CO 2 emissions of biomass for energy production was considered zero being part of the short term CO 2 cycle. However, the whole chain has to be taken into account. Most of the emissions are generated along the supply chain. This happens as usually for cultivating, harvesting, drying, reducing or transporting the biomass, equipment based on natural gas or diesel is used. Therefore the CO 2 reduction is never 100%. To see what the actual CO2 reduction is, it is necessary to look into the type of biomass, transport and conversion process that is being used in each case. Of course, the GHG balance of heat generation from biomass depends on the type of feedstock used, the amount of fertiliser used, carbon stock changes due to land use, transport mode and distance travelled, amount of energy used in processing (including farming) and efficiency of the conversion pathway. A 2014 comparison of life cycle analysis studies of forest bioenergy carried out for the European Commission suggests it is possible to identify low- and high-risk scenarios in terms of GHG emissions from forest bioenergy. The report adds that, as a given feedstock can be involved in both low- and high-risk scenarios, risks cannot be limited or removed by policies favouring certain feedstocks and discouraging others.(european Parliament, 2015) Including carbon debt into the GHG calculation can be a future development, but in order to do this there is the need to have more input on the carbon debt and its biomass correspondent. Possible Solutions In general GHG emission reductions can be achieved by: Utilizing not more wood than is growing in a certain area using biomass with low emissions, such as residues, waste or fast growing grasses, while using marginal lands; by improving agricultural management practices; 26

27 by improving logistics and technologies, such as for example using the excess heat of a plant. GHG Calculation tool RVO has developed, together with European partners two of these CO 2 calculation tools in , one LULUCF (Land use, Land Use Change and Forestry) covers greenhouse gas (GHG) emissions into the atmosphere and removal of carbon from the atmosphere resulting from our use of soils, trees, plants, biomass and timber. Forests and agricultural lands currently cover more than three-quarters of the EU territory and naturally hold large stocks of carbon, preventing its escape into the atmosphere. Whereas: draining of peat land, felling of forest or ploughing up grassland generates emissions; rewetting of organic soils, afforestation, conversion of arable land into grassland can result in protection of carbon stocks or even carbon sequestration. Source: European Commission, 2015 for liquid biofuels for transport and one for electricity and heat from biomass. (RVO,2013) The Biograce project (see more on ) is one example. Until now two projects were developed: Biograce I for biofuels and Biograce II for electricity, heating and cooling. The tool is an Excelbased spreadsheet that helps calculate the greenhouse gas saving of most of the biofuel production pathways Actions at EU and national level with regards to carbon accounting and GHG emissions LULUCF The agriculture and forestry sector are the last two major sectors without common EU-wide rules on GHG. Incorporating them is another step further into the EU emission reduction efforts. In December 2011, in order to revise accounting rules for GHG emissions and removals from soils and forests, the Council and the European Parliament adopted a decision to harmonise accounting rules for these emissions and removals across the EU. Mainly due to the difficulty of collecting robust carbon data from forests and soils, but also due to the lack of common rules on how to account for emissions and removals, the efforts of farmers or forest owners for securing carbon stored in forests and soils have only partly been included in international agreements. The aim of LULUCF accounting systems is to strengthen the capacity of forests and agricultural soils to preserve and capture CO2 in a sustainable manner. They will better recognize the efforts of forest owners, farmers and practices aimed at securing carbon stored in forests and soils. 27

28 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors The EU decision requires Member States to prepare actions in order to further decrease the GHG emissions from activities related to forestry and agriculture, however it does not set specific targets for emission reductions in the LULUCF sector. The progress will be done by improving the accounting systems by the Member States. Once the accounting systems have been proven effective enough, the Commission will consider whether to propose GHG targets for the forestry and agriculture sector (European Commission, 2015) Actions at international level with regards to carbon accounting and GHG emissions UNFCCC s (The United Nations Framework Convention on Climate Change) carbon accounting framework does not treat emissions from biomass energy as having been emitted in the energy sector (This practice is a result of the IPCC (Intergovernmental Panel on Climate Change s) approaches to GHG reporting and accounting). Reporting is a necessary precursor for accounting under the UNFCCC, however reporting and accounting are two distinct processes. Not all emissions included in a country s GHG reporting will necessarily be reflected in its GHG accounts. The IPCC determined that countries should report the emissions from biomass combustion in their land-use sectors only, in order to avoid double counting of the carbon released from harvested biomass in both the land-use and energy sectors. It is assumed therefore that the emissions from the combustion of forestbased biomass for energy occur at the point in time when the biomass is harvested and removed from the forest. However, this is not always the case. Countries may not account for the land-use sector at all, may account for it only incompletely, or it may account for its land-use and energy sectors using different benchmarks. (Greenglas, 2015) The case of imported biomass for energy Importing biomass from non-accounting countries is the first and most obvious cause of unaccounted emissions. The assumption that the carbon impacts of biomass energy are properly reflected within the forest sectors of the exporting countries simply cannot be hold true, as they fall outside the accounting framework. (This is currently a concern with regard to the United States, Canada, and Russia, all of which are significant exporters of woody biomass that report emissions from forests, but do not account for GHG emissions under the second commitment period of the Kyoto Protocol) Missing carbon emissions can also result in the case of the countries that do account for GHG emissions within the land-use sector. In this case, the emissions that go unaccounted for depend on the exporting country s reference level approach (Greenglas, 2015). The problem of missing emissions arises when the country from which the forest biomass originates does not account for GHG emissions or accounts for them incompletely (Greenglas, 2015). As a result of the data gaps there is a need for more detailed reporting on the countries of origin, types and sources of the biomass used for energy. Even if there are many countries that already collect these data, they are not currently available in a form that allows for a complete understanding of the impact of forest-based biomass energy use on global or national emissions. 28

29 Nonetheless, countries relying on domestic forest biomass for energy may reconcile their energy sector and land-use sector accounting approaches in order to equalize the emissions from the land-use with energy sector emissions. Accounting for GHG emissions in the energy and land-use sectors should use the same benchmarks (Greenglas, 2015) Indirect Land Use Change and Biomass Production (iluc) Indirect Land Use Change (ILUC) happens when an existing agricultural land for food or animal feed is used for bioenergy purposes and results in the displacement of agricultural production into previously nonagricultural or forest areas. Conversion of forests and grassland into agricultural land can lead to serious CO 2 releases in the atmosphere, limiting the benefits of the biofuels grown on those lands. (RVO, 2013,p.75) Possible Solutions There are several ways to avoid ILUC. The An efficient solution is to use unused, abandoned land or unused sustainable solid biomass potentials of forests. However, this also needs to be used in a sustainable way, by keeping the soil s quality through sustainable fertilizers and cultivation rotation. Even so, when using abandoned lands, there will be a trade-off between ILUC free biomass, GHG emissions and production costs. This is because, usually the marginal lands are less fertile and results in low, more expensive production and higher GHG emissions. Another option is to increase the biomass production, without using additional agricultural land. More efficiently would be cascading the use of the feedstock (using it first for food or material, and then using it for energy). Integrating the bioenergy feedstock with an existing production (intercropping) is also a recommended option. This means less ILUC, less competition with food and more money for the farmers. Using the wastes and residues as biofuel without affecting the feedstock s primary purpose is helpful, as it reduces GHG emissions and doesn t put much pressure on land. (RVO, 2013) So far it has been proven that negative impacts can be minimized and positive impacts can be maximized. However there is no fixed solution for this. The way to achieve this depends from case-to-case and the solutions and their impacts need to be balanced accordingly. Keeping in mind that there will always be a trade-off, the impacts need to be holistically assessed instead of focusing on achieving strict results. All the recommendations given above need to be seen within a frame that is defined by the scope of the project or assessment, by its specific (certification) requirements, the (business) rules by which it operates and by the way its performance is assessed. (RVO, 2013) Some certification has included the criteria presented above and some have not. For example, in 2015, the RSB certification has included the ILUC as part of the sustainability criteria. If compliant, operators can label their products with low iluc risk. (RSB, 2015) The NTA8080 certification was also recently updated in 2015, and is now called Better Biomass. The scope of the certification has been extended to cover new issues such carbon debt, iluc and cascading of biomass (Better biomass, 2015). 29

30 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors 30

31 5. National regulations on biomass sustainability in the EU27 A comprehensive overview of national regulations on biomass sustainability in the EU27 countries is presented in the final report from the Biobench project, Benchmarking biomass sustainability criteria for energy purposes (2012). The Biobench project was commissioned by the European Commission and aimed to compare and contrast national rules and regulations related to biomass availability and costs, with a view to determining whether there are impacts on biomass trade within the EU and to and from the EU. The final project gives (1) an overview and comparison of national regulations on biomass sustainability for 27 EU member states, (2) a comparative analysis of national regulations with each other and with the sustainability criteria recommended in the commission report on requirements for a sustainable scheme for solid and gaseous biomass used for generating electricity, heating and cooling (COM(2010)11) and (3) an assessment of the economic and environmental impacts of national and EU level regulations. 31

32 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors 6. The Netherlands Case Sustainability of Imported Biomass in the SDE Scheme In 2013 an Energy Agreement was made in the Netherlands between the energy companies, NGO s and the government. Part of the deal was the request by NGO s to have full sustainability including criteria for Carbon Debt and iluc for imported biomass for co-firing and large scale heating. The Netherlands Enterprise Agency together with NGOs and Industry, developed a document with a set of sustainability criteria for biomass used for co-firing or large scale heating with wood pellets. These core criteria are sourced from the sustainable forest management criteria used for the timber procurement policy by the Dutch government, but are extended and modified to cover bio-energy issues and suit other forms of biomass as well. These criteria will be part of the SDE+ subsidy scheme for production of renewable energy. The document contains two main parts. The first part of the document presents an overview of the biomass categories, such as woody biomass from large and small forest management units, residual products from multi-functional forests or agriculture, biogenic waste materials, residual products from natural site and landscape management and their related sustainability criteria, see Table 1. In the second part of the document, a full description of the sustainability criteria is given, in order to cover all sustainability risks related to the use of biomass for energy production. There are three main categories of criteria: climate and bioenergy, sustainable forest management and the chain of custody. The SDE+ sustainability criteria comprise the following categories: the SFM (Sustainable Forest Management), GHG balance, Carbon Debt, iluc, soil quality, legislation and Chain of Custody criteria. From Table 1 it can be seen that the full set of criteria applies only to woody biomass from large forest management units. For in-depth information over The SDE+ requirements you can access the full document here. 32

33 Table 4: Biomass categories and related sustainability criteria (RVO, 2015) Sustainability issues Biomass categories SFM criteria GHG balance Carbo n debt ILUC Soil quality Compliance with legislation Chain of Custody 1. Woody biomass from large forest management units 2. Woody biomass from small forest management units 3. Residual products from multi-functional forests 4. Agricultural residual products 5. Residual agri-food products and timber industry products 6. Biogenic waste materials 7. Residual products from natural site and landscape management X X 1 X 1 X 1,2 X 1 X 1 X 1 X X X N/A X X X N/A X N/A N/A X X X N/A X N/A N/A X X X N/A X N/A N/A N/A X X N/A X N/A N/A N/A X X N/A X N/A N/A N/A X X 1,2 Explanation: N/A means that criteria are not relevant or that the risks involved are small. X means that the criteria apply to the category in question. 33

34 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors 7. Sustainability of Organic Residues from Agriculture and Wastes Organic residues from agriculture and wastes can be classified as follows: 1. Primary residual products sourced directly from agriculture (e.g. grass, straw or husks, sugarcane bagasse). 2. Secondary residues from agri-food (e.g. membranes, seeds or pulp) and the wood processing industries (such as sawdust and bark) 3. Biogenic waste materials, such as wood waste (tertiary residues), organic household waste and organic industrial waste or other organic waste materials. 4. Biomass waste products generated during the management of urban green spaces, landscape or natural sites other than forest, in the context of conserving, restoring or enhancing specific natural, recreational or scenic services (including the regular maintenance of public green spaces and parks). (RVO,2015) As it can be seen in Table 4 (See above), organic wastes and residues are subject to fewer sustainability criteria. This is because the sustainability risks associated with residual products and waste are lower than those associated with biomass produced solely for the purpose of energy production. (RVO, 2015) When agricultural waste streams and residues are used for bioenergy production, this can save land otherwise needed to produce bioenergy crops. In addition, by transforming waste into bioenergy, value can be added to a food crop or other biomass, adding to the earning potential in the rural economy. There are numerous ways in which wastes and residues are used to produce bioenergy (e.g. bagasse for energy from sugar production, biogas from manure). Many of these technologies are available in more developed economies. There is scope for cost-efficient technologies that are specifically targeted at lowincome countries, where technologies should be easy to maintain and cheap to use. Using residues and waste should not conflict with important alternative uses such as for fertilising soils and/or feeding animals. Some useful reports have been published on how to understand better the value of new agricultural crops and residues and how they can be used as feedstock for bioenergy. There is a big variety of wastes from agriculture and a full inventory would be impossible, however you can get a better understanding over using waste from agriculture as a biomass source by following a few examples. For the solid biomass for heat market, only some examples might of interest. You can read more about (rice)straw as a biomass source here. In this documents, you can find details about harvesting, its applications for electricity and heat or its sustainability effects. You can read more about bamboo and its potential use for the biobased economy, about harvesting of sustainability related issues here. 34

35 Switchgrass (Panicum virgatum L.). is another potential feedstock for the biobased economy. You can read more about it here. You can read about Jatropha, its agronomy, socio-economic and ecology issues here. 35

36 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors 8. Recommendations for Sustainable Biomass Usage and Conversion Sustainable biomass should eventually also lead to sustainable heat. For this reason the complete chain and conversion process has to be clean with low environmental burden and to be an efficient energy conversion. For heat production the emissions to the air and the ashes are the most important issues. Ashes should be treated according to local waste management regulations and in some countries it is allowed to use them as a fertilizer. For emissions to the air, the European Commission has set limits for the total emissions from the individual sources. These are related to four pollutants responsible for acidification, eutrophication and ground-level ozone pollution (sulphur dioxide, nitrogen oxides, volatile organic compounds and ammonia). When a Member state is implementing and enforcing its emission limits it is recommended to follow the EU Directives of the European Parliament and the Council on National Emission Ceilings for certain pollutants (NEC Directive), which sets upper limits for each Member State for the total emissions in Directive 2001/80/EC on large combustion plants (LCP) sets emission limit values for SO 2, NOx and dust from combustion plants with a rated thermal input of 50 MW or more. This Directive will be replaced by the IED (Directive 2010/75/EU on industrial emissions) from 1 January Directive 2009/125/EC of the European Parliament and of the Council establishes the ecodesign requirements for solid fuel boilers with a rated heat output of 500 kilowatt ( kw ) or less. This Directive entered into force in (European Commission, 2015) The Member States are free to decide which measures to take in order to comply with these measures. 36

37 9. Existing sustainability schemes regarding large scale Heat from Biomass Sustainability of biomass has been a major issue in the last decade in the biofuel area. Within the RED, COM(2009)28 sustainability criteria have been formulated for biofuels. For solid biomass, sustainability has been on the agenda but has not been solved on an EU level, though recommendations have been given. At present countries like UK, Belgium, Denmark and The Netherlands have introduced sustainability requirements for imported biomass mainly for co-firing in coal fired power plants (these do not necessarily include heat utilization, however). In the Netherlands this sustainability requirement also exists for large scale heating with wood pellets in industry. In most countries the sustainability of solid biomass usage for heating with locally harvested biomass is not much disputed yet. However, in the overall political and scientific arena there are a lot of disputes about the sustainability of increasing the utilisation of biomass and the expected environmental advantages. Discussions about iluc, Carbon accounting and GHG emissions reduction can also hinder the expansion of biomass heating. It is quite clear that biomass can be a sustainable resource for heating and in most cases it is. However, in some cases unsustainable approaches might exist. The biomass heating sector is growing, with chances of doubling in the future. Therefore, we have to be aware of sustainability constraints and continue to attempt to develop biomass projects in a sustainable way. In order to continue to develop the biomass heating sector in a sustainable way the following recommendations can be made: Utilise biomass (wood) from sustainably managed forests and assure that new trees are planted in the place where forests have been harvested for bioenergy (SFM) Focus on the utilisation of wood for heating that comes available as left-overs from forestry or agricultural operations (thinnings, straw etc.), or industrial operations (sawdust, etc.) Obtain proof of sustainable forest management through procurement from certified forests ( FSC or PEFC). This will also stimulate the sector to certify the sustainability of the forest management further. In case of utilisation of biomass from large scale plantations (> 500 ha) try to introduce the sustainability assessment as introduced for the import of woody biomass in the Netherlands. For small holders this will not be required, because it is difficult to implement. In case of expanding the production of solid biomass in new plantations, a careful assessment should be made about the potential reduction of food production. Introduce measures to improve the food production and mitigate iluc and realise a good carbon accounting. Improvement of the sustainability of the biomass to heat chain can be achieved by efficient low emission harvesting and transport; and efficient combustion with low harmful emissions also has to be taken into account. Ensure a high energy conversion efficiency to minimize resource demand and emissions etc. 37

38 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors 10. Part II Quality of Solid Biomass 10.1 The Importance of Fuel specification and Quality Assurance Biomass is used in bioenergy plants of very different scales, ranging from a few kw to several hundred MWs. Solid biofuels can be characterized on the basis of a number of physical, mechanical and chemical parameters. Depending on the size and type of the conversion system, the requirements which are set for the physical, mechanical and chemical quality of the biomass might vary. Suppliers of conversion systems incorporate these requirements for the biomass in their equipment s specifications. In Figure 5 the most important parameters, and their relationship with the operation of a bio-energy system are schematically shown. Figure 5: Quality parameters for solid biomass Quality standards provide several advantages. In addition to the advantage of a better functioning boiler and feeding system e.g. with less malfunctions, higher reliability, less maintenance and repair costs and less harmful emissions, the biomass end-user can more easily distinguish the different qualities of chips and pellets on the market in order to save money and to make it easier to compare properties because the biomass is analysed with the same methods. Also, quality standards make it easier to analyse possible 38

39 problems with the conversion system. After all, when the equipment only uses the right quality biomass (within the specifications) and the quality is properly monitored by the operator, the fuel can be ruled out as a cause of operating problems. In addition, as the biomass is no longer distinctive, the standard use of appropriate quality biomass separates the good combustion systems from the lesser ones. Finally quality standards generally provide more confidence in the market. For licensing authorities and regulators quality standards may offer additional guarantees, like the use of biomass with low (or less) emissions and nuisance. This all contributes to the professionalism of the biomass and bioenergy market. In smaller systems, the quality of the biomass is very important, and large fluctuations in the compound and thus appropriate quality of the biomass are undesirable (especially with wood chips). Larger installations generally have a greater range of wood chip or wood log fuel quality which can be handled without problems. In practice, the use of wood chips that do not meet the specifications given by the boiler manufacturer should be avoided, especially at smaller heating plants (<1 MW). This can create mechanical problems e.g. bridging in fuel storages because of oversized particles, lower energy efficiency and / or increased emissions. Mechanical problems cause failures by using for example oversized particles of wood blocking the fuel feeding system. The energy efficiency of the installation decreases when the biomass contains too much moisture or high ash content, which decreases the net calorific value as received. In addition, (too much) sand will cause excessive wear of mechanical parts. An indirect consequence of these failures and suboptimal process management is that they may increase emissions (dust, NOx). Pellets and briquettes are factory-made biomass fuels, and are usually made from wood industry residues like sawdust and cutter shavings which has more equal properties and do not include bark. The pellets and briquettes are delivered to the pellet end user. This means that the pellet end user cannot control the pellet quality during production. The pellet user must find other ways to ensure the quality of his pellets. This can be realized through certification: The certificate gives a guarantee of quality. The requirements for the certification are set by standards Quality Standards At the European level, the European Committee for Standardisation (CEN) and the European Commission are the main responsible bodies for standardization. They are responsible for the policy decisions regarding solid biofuels, quality and sustainability criteria. (NEN, VTT, 2011) CEN is an organization that works in a decentralized way. It s 32 members the National Standardization Bodies of the 27 EU and 3 EFTA countries and of Croatia and Turkey operate the technical groups that draw up the standards. Its network comprises more than 60,000 technical experts from industry, academia, societal organization or associations. The standards are voluntary, which means that they are not legally binding, however, laws and regulations may refer to standards and even make compliance with them compulsory. If the European Commission gives mandate for drafting standards they could be part of directives (CEN, 2015) 39

40 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors Standards ensure compliance with the recognized EU criteria and they provide information to the consumers about the products they buy. It is particularly important to have standards for the bioenergy sector as the quality of the biomass determines the choice of technology for the plant. It also provides support by offering a common language for trade partners, which is necessary for the EU market. (NEN, VTT, 2011) In order to create an enabling market for the development of solid biofuels it is necessary that the policy makers, standardization bodies and industries work together. It is a market that continuously evolves and there is the need to keep exchanging feedback between the parties in order to keep up with the developments. (NEN, VTT, 2011) The EU project SolidStandards (see SolidStandards) offers a good overview over the implementation of quality and sustainability standards and certification schemes for solid biofuels in Europe. The Recommendation Paper on the development of certification systems for the Solid Standards project gives an overview about the required content of certification schemes for solid biomass, how they should be structured, and what approaches for current schemes other than wood pellets exist. For detailed information please see the main publications here. To enable different wood fuels to be categorised based on their quality characteristics, various national fuel standards have been developed in recent years. Standards make it possible to describe a fuel more accurately and are useful to both producers and consumers as a means of navigating the fuel market. Until recently, there were only individual national standards for certain types of fuel products such as pellets, wood chips and wood briquettes. The quality of wood chips in Europe, for example, is generally expressed in accordance with the categories and specifications of EN ISO and EN ISO Here, the most important parameters are requirements regarding the raw material, moisture content, ash content and particle size of the wood chips, In recent years, the European Committee for Standardization (CEN) in its 'technical committee CEN / TC 335 solid fuels' developed the so-called EN standards replacing all national standards which were superseded in 2014 by the EN ISO series. The series of standards in EN ISO provides a uniform, world-wide tool for standardizing any solid biofuel that can be used for energy production. The purpose of this standard is to encourage the use of wood fuels and to eliminate trade barriers between European countries. The standard for wood fuels actually consists of three interrelated sets of standards (see figure 5 on page 40 for more detail): 1. A standard which determines the terminology and definitions for solid biofuels, EN ISO Standards for fuel specifications and classes, including raw material specification, the chemical and physical characteristics of solid biofuels, EN ISO series 3. Standards that determine how the characteristics of solid biofuels must be determined (analysis methods etc.). Examples are EN ISO for determining the moisture content and EN 14918/EN ISO (2016) for determining the caloric value. With these sets of standards, together with the standards for sampling and sample preparation and safety issues, the definitions for solid biofuels are set, and it is defined which physical and chemical parameters are applicable on solid biofuels (quality aspects), and how those parameters are to be determined. 40

41 Content of EN ISO series: Fuel Specification and Classes for Solid Biofuels The EN ISO standard series consist of 7 parts, one general part and 6 parts describing different types of solid biomass fuels : EN-ISO determines the fuel quality classes and specifications for solid biofuels for general use EN-ISO determines the fuel quality classes and specifications of graded wood pellets for non-industrial and industrial use EN-ISO determines the fuel quality classes and specifications of graded wood briquettes. EN-ISO determines the fuel quality classes and specifications of graded wood chips EN-ISO determines the fuel quality classes and specifications of graded firewood. EN-ISO determines the fuel quality classes and specifications of graded non-woody pellets EN-ISO determines the fuel quality classes and specifications of graded non-woody briquettes This EN ISO includes the raw material classification of solid biofuels, which is based on their origin and source. Stating origin and source is mandatory for all solid biofuels. Classification of woody biomass according to EN ISO : Forest, plantation and other virgin wood By-products and residues from wood processing industry Used wood Wood chips in EN ISO standard are classified into the classes A1, A2, B1 and B2. Property classes A1 and A2 represent virgin woods and chemically untreated wood residues. A1 represents fuels with lower ash content indicating no or little bark, and lower moisture content, while class A2 has slightly higher ash content and/or moisture content. B1 extends class A including other material, such as short rotation coppice, wood from gardens and plantation etc., and chemically untreated industrial by-products and residues. Property class B2 also includes chemically treated industrial by-products and residues and chemically untreated used wood. The threshold values (N, S, Cl and minor elements) for grade B1 and B2 are required because they might include higher values of heavy metals and organic compounds as virgin wood. An overview of standards including methods for determining the chemical and physical characteristics are given in Annex I Standardization of Quality Assurance of the Supply Chain Next to standard EN ISO there is standard series EN for Fuel quality assurance. These European Standard defines the procedures to fulfil the quality requirements (quality control) and describes measures to ensure adequate confidence that the biofuel specification is fulfilled (quality assurance). This European Standard covers the whole chain, from supply of raw materials to point of delivery to the end-user and creates adequate confidence between the supplier and the end user. 41

42 Bioenergy for Business Uptake of Solid Bioenergy in European Commercial Sectors Quality Certification for Pellets Based on the EN ISO and the EN standards for wood pellets, the European certification for wood pellets ENplus has been developed. The ENplus system was developed by the DEPI, the German pellet institute. The license rights for the scheme lies with the European Pellet Council (EPC), part of the European Biomass Association (AEBIOM). The ENplus certification focuses on pellet producers and pellet traders. This sets requirements for the production, transport and storage of pellets. Only when the entire chain is certified, the respective pellets meet the ENplus fuel specification. The ENplus certification scheme consists of several elements: Definitions for quality classes pellets and specification of pellet properties; Specification of internal quality from producers and traders; Management of quality pellets, and quality assurance in the supply chain; Requirements for the certification process; Conditions for using the ENplus label. More information can be found in de Handbook for the Certification of Wood Pellets for Heating Purposes [10] en Wood Pellets are classified in three classes: ENplus-A1-A2 and ENplus-B. Class A1 is the quality pellet for private use. These pellets have the most stringent quality requirements, in particular in relation to the ash content (0.5% for coniferous (soft) wood to 0.7% for other types of wood such as oak, beech, birch, meranti, etc.). Class A2 is the quality with a permitted ash content of maximum 1.2%. For example, this quality is suitable for bi-fuel devices that burn both wood pellets, and which are somewhat less critical to the quality of biofuel. Class B are pellets produced from lower quality raw materials. These are primarily used in more industrial installations and public buildings. The above requirements are less stringent than for classes A1 and A2. More on European pellets standards can be found here. 42