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1 Laborelec-SGS solid biomass sustainability scheme Belgium Yves Ryckmans com Biomass & Waste Competence Centre Biomass and Waste Competence Centre Laborelec

2 Belgium: energy/co2 balance for incentives Checked by market regulators Flanders : obligation 6% x 55TWh= 3,3 TWh, penalty=125 green certificates granted according to energy balance of supply chain and reference CCGT # GC net MWh electricity use fossil MWh 55% = el p Wallonia : obligation 11,25% x 27 TWh=3,0 30TWh, penalty=100 green certificates granted according to proven sustainability, CO 2 balance of supply chain and reference CCGT All fuels have reference CO 2 emission according to LCA Natural gas = 251 kgco 2 /MWhp 328 kgco 2 /MWhp (EU-RED) Coal = 396 kgco 2 /MWhp Wood pellets = 55 kgco 2 /MWhp (35 if transported on less than 200 km) # GC = CO2 ref( elec) CO2 ( PP) 55 55%. MWh el = 1 = 65% 73% MWh el CO ref ( elec ) % 2 RED- Directive Biomass and Waste Competence Centre Laborelec

3 Type of raw material 1. Independent reporting Certified or at least evidence for responsible management of the forests including afforestation plans Controlled impact on environment (soil, air, water) Enforcement of legislations 3. Track & trace system pellets Sea transport: Capacity in tons Distance in miles Number of days of sea Consumption/sea day Flatboat from ARAG: Avg. diesel use obligatory verification system Energy & CO2 balance of the supply chain Biomass and Waste Competence Centre Laborelec

4 Energy balance in MWh eqv electricity 2009 Electricity use always subtracted x 100% from net green power Fossil fuel for production and transported subtracted x 55% with respect to ref. CCGT power plant with η= 55 % efficiency Wood pellet = 1600 kwhe / ton (net elec. efficiency i 34%) kwhe (eq) /ton BEL DEU PRT LVA CAN SA USA AUS RUS Electricity Resource handling Product transport truck river truck sea truck sea train sea sea sea sea train sea TOTAL NET GC VREG 87% 87% 87% 86% 80% 79% 75% 74% 73% Biomass and Waste Competence Centre Laborelec

5 GHG balance of wood pellets supply chain 2009 in kgco 2 /MWhp depends only upon production & transport (1 ton pellets=4,7 MWh p ) in % depends also upon type of replaced fossil fuel & end-use efficiency Wallonia: natural gas in CCGT, 251,0 kgco 2 /MWh p or 69,7 gco 2 /MJ EU RED for power: EU power mix, 327,6 kgco 2 /MWh p or 91,0 gco 2 /MJ Default value Wallonia: imported wood pellets= 55 kgco 2 /MWh p = 65% kg CO 2 (eq) /ton BEL DEU PRT LVA CAN SA USA AUS RUS Electricity Resource handling truck sea truck sea train sea truck sea train sea Product transport truck river sea sea TOTAL kg CO2/ ton TOTAL kg CO 2 / MWhp NET GC CWAPE 86% 88% 86% 85% 77% 76% 72% 70% 67% RESULTS EU-RED 91% 93% 91% 90% 86% 85% 82% 81% 80% Biomass and Waste Competence Centre Laborelec

6 Sample Results Carbon emission compared to reference (CCPP) 50% 45% 40% international transport local transport production 35% 30% 25% 20% 15% 10% 5% 0% Belgium Canada Estonia Finland France Russia Sweden Biomass and Waste Competence Centre Laborelec

7 Forestry company Industry: saw mill, CIF Pellet plant Chain of custody Country of origin Shipping i company Trader FOB BELGIUM MARKET REGULATORS UTILITY LABORELE C Technically OK Legally OK Biomass and Waste Competence Centre Laborelec

8 Conclusion 1: it is possible to do something NOW Key factors of LABORELEC verification scheme learning by doing Minimum criteria: energy balance or CO 2 balance for the supply chain (yearly) overall traceability of the primary resources and final product (yearly) independent report over local resource management and respect of local and international legislations (once) Operational: it is not expensive ( < 0,05 /ton) can be fast ( < 2 weeks) Pragmatic approach: implement first a scheme that works in practice and is affordable then improve the sustainability scheme in time Disseminate approach in other countries Biomass and Waste Competence Centre Laborelec

9 European context solid biomass sustainability Yves Ryckmans com Biomass & Waste Competence Centre Biomass and Waste Competence Centre Laborelec

10 Many initiatives running EU Directive RED 2009/28 covering sustainability of biofuels & bioliquids id EC reporting SEC(2010) 65 on solid biomass EC impact assessment SEC(2010) 65 on sustainability solid biomass EU guidelines on carbon stock 2010/335/EU EU-project BEE & CEUBIOM ( ) on potential ( ) CEN/TC383 NTA8080 in the Netherlands VREG/OVAM + CWaPE in Belgium VITO study on behalf of EC EURELECTRIC TF Biomass AEBIOM Sustainability work group an workshops Report biomass for H&P /.../ Biomass and Waste Competence Centre Laborelec

11 Default values kg CO 2 eq/mwh primary energy EC report Report EC on sustainability requirements solid biomass Reference Default Reference and default values GHG kgco 2 /MWh p kgco 2 /MWh p Wood chips forest residues EU 3,6 3,6 Wood chips forest residues tropical 75,6 90,00 Wood chips SRC EU 10,8 14,4 Wood chips SRC tropical 86,4 100,8 Wood pellets/briquettes forest residues EU dried wood 7,2 7,2 Wood pellets/briquettes forest residues tropical dried wood 54,0 61,2 Wood pellets/briquettes SRC EU dried wood 14,4 14,4 Wood pellets/briquettes SRC tropical dried wood 64,8 79,2 Wood pellets/briquettes forest residues EU dried NG 61,2 72,0 Wood pellets/briquettes forest residues tropical dried NG 108,0 126,0 Wood pellets/briquettes SRC EU dried NG 68,4 79,2 Wood pellets/briquettes SRC tropical dried NG 118,8 144,0 Reference for imported wood pellets in Wallonia (transported on more than 200 km) is 55,0 kgco 2 /MWh p Biomass and Waste Competence Centre Laborelec

12 Green certificates systems (BE/WAL) Fossil fuel comparator RED (EU) References gco 2 /MJ kgco 2 /MWh p η elec gco 2 /MJ elec kgco 2 /MWh elec Nat.gas Wal 69,7 251,0 55,0% 126,7 456,0 Coal Wal 106,9 385,0 35,0% 305,6 1100,0 EU-mix EU 91,0 328,0 46,0% 198,0 712,8 RED bio-liquids Report EC bio-solids RED bio-liquids Report EC bio-solids Biomass and Waste Competence Centre Laborelec

13 Basic unanswered questions on forestry Which h part of the natural forest growth can be used for wood industry? and energy? Is it acceptable to use full trees from existing forests for energy? or should we use only forestry residues for energy? Should nice wood residues from saw mills be exclusively used by wood industry like paper and wood board industry? and dbanned df for green energy?(e.g. Germany, Flanders, Poland) Should use of (tropical) wood from Africa and South-America be banned? Annual Change in Forest Land Area Old or fallen or ill trees? e.g. MPB in BC Canada e.g. Storm wood in France 0 Europe³ North and South America Asia Oceania Africa Planted wood & biodiversity? Central America e.g. Eucalyptus 1000 ha Illegal wood Indonesia becomes legal wood in Vietnam? Biomass and Waste Competence Centre Laborelec

14 Meta-standards for forest % world forests Biomass and Waste Competence Centre Laborelec

15 Benchmark certification systems for Cramer in NL Biomass and Waste Competence Centre Laborelec

16 Voluntary vs binding sustainability scheme certification vs verification But voluntary schemes cannot cover a significant % of traded biomass for power plants Biomass and Waste Competence Centre Laborelec

17 Minimal GHG saving of 35% Sustainability criteria according to RED 2009/28 No use of raw material from land with high carbon stocks, base 1/2008 a) Wetlands, land covered or saturated t with water for a significant ifi part of the year; b) Continuously forested areas on more than 1 ha with trees higher than 5 metres and a canopy cover over more than 30% c) Land spanning more than 1 ha with trees higher h than 5 metres and a canopy cover between 10% and 30%, if minimal GHG saving cannot be obtained including carbon stock change calculation No use of raw material from land with high biodiversity value after 2007 a) Primary forests and other wooded land of native species where there is no clearly visible indication of human activity and the ecological processes are not significantly disturbed; b) Areas designated by law for the protection of biodiversity (nature or rare species); c) Highly bio-diverse grassland of natural origin, or of non natural origin except if the harvesting is proved to be necessary to keep its status Biomass and Waste Competence Centre Laborelec

18 Is RED-compliance = + +? No Respect of rights -workers (children) -use soil: inhabitants Monitoring impact of activities Biodiversity undisturbed forests high value grassland Controlled impact on soil water & air No conversion of carbon stocks continuous forest area wetlands GHG balance > 35% with LUC Respect of laws Traceability Profit sharing use of resource Conservation forest value Competition: fiber, food, feed Forest management plans Biomass and Waste Competence Centre Laborelec

19 Conclusion 2: where lie the critical needs of binding criteria for solid biomass? Citi Critical need avoiding short tterm impact on availability & prices, for large plants (above 20 MWe, 50 MWth) tradable biomass like wood pellets Some criteria could be considered as automatically verified cross-compliance with existing forestry/agri legislation in EU/OECD cross-compliance compliance with meta-standards (like FSC) Criteria should be feasible to verify by a private company Voluntary schemes only can cover the whole supply chain but they cannot be systematically applied to all wood pellets suppliers Not only utilities but also traders are directly concerned by unstable biomass market: this concerns biomass business developed in MS like DE, LT, LV, EE, SE, SP Biomass and Waste Competence Centre Laborelec

20 TF BIOMASS Uniform Binding Sustainability Criteria for solid biomass are still lacking and will be needed rather quickly When doubling biomass use without criteria for 2020 target, power companies will be open to major criticism from NGOs and the public: as a consequence solid biomass may become a dirty fuel EURELECTRIC considers that sustainability criteria should progressively be applied to all uses of solid biomass regardless of its end-use Criteria for sustainable production of bio-liquids, solid and gaseous biomass should ideally be based on the same concepts Criteria must take into account the widely different environmental and sustainability issues in different Member States and climatic zones Reduced set of criteria should be applied for waste, residues and byproducts (e.g. NTA8080 in NL) but a clear definition is needed The development of many different national sustainability schemes in response to greater import creates inefficiencies and increase costs Biomass and Waste Competence Centre Laborelec

21 Work group wood pellets buyers solid biomass sustainability scheme Yves Ryckmans com Biomass & Waste Competence Centre Biomass and Waste Competence Centre Laborelec

22 Work of work group wood pellets buyers Try to merge initiatives Drax, Green Gold Label and LBE-SGS Take needs of other members into consideration Come up with one single approach for European utilities Biomass and Waste Competence Centre Laborelec

23 Ingredients of sustainability verification 1. Verification procedure in conformity with 2009/28/EC and pren16214: i.e. existence of a written and public procedure 2. Signed wood pellets supplier declaration 3. Yearly inspection audit of the pellet plant covering raw material, transport, energy use and meta-standards 4. An independent accredited body cares for the verification process 5. Collection of energy use all along the supply chain (electricity, oil, diesel & biomass) 6. Calculation of GHG balance in conformity with «Fossil Fuel Comparator» of 2009/28/EC or a similar method (some parameters might change) 7. Track & trace system for the product between pellet plant and power plant 8a Independent report allowing cross-compliance based on the guaranteed enforcement of existing local legislation 8b Mass balance system based on chain of custody and batch identification for raw material based on independent verification of 1. land use 2. GHG 3. bio-diversity 4. carbon stocks Biomass and Waste Competence Centre Laborelec

24 Thanks for your attention & for more information com Biomass and Waste Competence Centre Laborelec

25 APPENDIX Yves Ryckmans com Biomass & Waste Competence Centre Biomass and Waste Competence Centre Laborelec

26 Verification procedure Overview Supplier declaration Transport declaration Audit and reporting of production unit by a local SGS inspector Raw biomass sourcing and forest management certification Energy consumption Energy / Carbon balance calculation Bibliographic study on country forest management Grant green certificates t by the authorities Biomass and Waste Competence Centre Laborelec

27 Verification procedure Sustainability : forest management Local verification of used wood material: Raw material origin identification (start point for balance calculation) Certification identification of primary production or production unit ( PEFC, FSC, SFI ) Energy and carbon balance: verification along the supply chain (detailed below) Literature data over regional management forest: forests regulations, management forests, existing forests certification systems (FSC, PEFC, CSA,..) at country scale state of the local forests, potential pellet production capacity Biomass and Waste Competence Centre Laborelec

28 Verification procedure Sustainability : GHG emissions and energy balance Energy source determination Electricity Fossil Fuel use Heat Energy ( biomass cogeneration, biomass boiler) Pellet processing drying milling pressing Biomass and Waste Competence Centre Laborelec

29 Verification procedure Pellets transport transport scheme raw material finished product for each step : distance means of transport specific consumptions info gathered from local verification transport companies involved (transport t declaration) Biomass and Waste Competence Centre Laborelec

30 Traceability of the Biomass resources Verification procedure Audit based on documents used to keep track of the biomass throughout supply chain invoices transport documents scales gauges records databases, registers Essential aspect of the procedure link between inspection and product inspected on a random basis Biomass and Waste Competence Centre Laborelec

31 Results Origin of wood pellets 12 countries 75 suppliers Biomass and Waste Competence Centre Laborelec

32 Sample Results Certified wood based industry Aust stralia Belg elgique Canada Allem magne Estonie Litu ituanie Lett ettonie Port ortugal Russie Suède USA Pays Major FSC, PEFC. Other local certifications Biomass and Waste Competence Centre Laborelec % certified Raw material or industry

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