Sustainable Bioenergy Systems for the Bioeconomy Development Status and Challenges

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1 Sustainable Bioenergy Systems for the Bioeconomy Development Status and Challenges Reunión de Redes de Energia 2018 James D. (Jim) McMillan, Ph.D. National Bioenergy Center Cuernavaca, Morelos, Mexico 26 September, 2018 NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

2 Outline Introduction to NREL and IEA Bioenergy International Bioenergy Landscape Bioenergy Technologies Readiness Levels Sustainability Considerations Current Situation and Outlook Final Thoughts 2

3 Introduction to NREL and IEA Bioenergy

4 U.S. DOE S NATIONAL LAB COMPLEX NREL 4 NATIONAL RENEWABLE ENERGY LABORATORY 4

5 NREL at a Glance 1,700 nearly 750 $872M annually Employees, plus more than 400 early-career researchers and visiting scientists World-class facilities, renowned technology experts Partnerships with industry, academia, and government Campus operates as a living laboratory National economic impact NREL 5

6 NREL s Science Driving Innovations in Energy Efficiency, Renewable Power and Transport Renewable Power Sustainable Transportation Energy Efficiency Energy Systems Integration Solar Bioenergy Buildings Energy Infrastructure Wind Water Geothermal Vehicle Technologies Hydrogen Advanced Manufacturing Government Energy Management Systems Operations Multi-sector Integration NREL 6

7 IEA Bioenergy Technology Collaboration Programme (TCP) Mission: To increase knowledge and understanding of bioenergy systems in order to facilitate the deployment of: environmentally sound socially acceptable and cost-competitive bioenergy systems Key Role: Independent collaborative body focused on delivering clear and verified information on bioenergy 7

8 Tasks Task 32 - Biomass Combustion and Co-firing Task 33 - Gasification of Biomass and Waste Task 34 - Direct Thermochemical Liquefaction Task 36 - Integrating Energy Recovery into Solid Waste Management Systems Task 37 - Energy from Biogas Task 38 - Climate Change Effects of Biomass and Bioenergy Systems Task 39 - Commercialising Conventional and Advanced Liquid Biofuels Task 40 - Sustainable Biomass Markets and International Bioenergy Trade to Support the Biobased Economy Task 42 - Biorefining in a Future BioEconomy Task 43 - Biomass Feedstocks for Energy Markets 8

9 Membership - 24 Contracting Parties in AMERICAS: Brazil Canada United States In discussions: China India Mexico EUROPE: Austria Belgium Croatia Denmark European Commission Estonia Finland France Germany Ireland Italy Netherlands Norway Sweden Switzerland United Kingdom ASIA/OCEANIA/AFRICA Australia Japan Korea New Zealand South Africa 2018 Budget: US$1.8 Million Tasks: 10 main tasks + ~6 joint/intertask projects Participants: 200 persons

10 Why Bioenergy?

11 Bioenergy Can Support Multiple Sectors The utilization of biomass and wastes as energy sources can support multiple energy, economic and environmental objectives Reduce dependence on nonrenewable fossil energy supplies Promote more efficient use of domestic renewable energy resources Bolster rural development, foster science and engineering, grow bioeconomy, create new jobs Reduce carbon emissions from energy and fuel production and consumption 11

12 Many Potential Bioenergy Pathways Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Figure

13 Bioenergy SWOT Analysis Strengths Flexibility: Ability to provide heat, power or solid, liquid or gaseous fuel products Flexibility: Ability for baseload or intermittent power production, or longer term storage (e.g., as fuels) Uses domestically / regionally available biomass / waste resources Synergizes with BECCS/U; growing new biomass consumes atmospheric CO 2 Opportunities Grow bioeconomy, create new industries, increase rural economic development Create new biomanufacturing platform Many higher-value coproducts can also be produced by fuel routes Reduce waste burdens and disposal costs Enable circular economy by valorizing bio-based waste fractions, e.g., MSW Weaknesses Constrained feedstock supply and associated infrastructure Challenging economics (esp. in low fossil fuel price market environment) High capital costs (esp. for biofuels) Difficult to achieve scales of economy Complexity: spans energy, ag, forestry, waste and environmental domains Policy uncertainty, inconsistency Threats RE investments favoring wind, solar Land use change concerns Lower agricultural / forestry productivity potential with increasing global temperatures and/or changes to rainfall patterns (hydrological cycle) Biofuels: Electrification of transport Power: Alternative REs (wind, solar) 13

14 International Bioenergy Landscape

15 World Energy Supply Total primary energy supply by fuel, (Mtoe) Source: IEA 2018 Key world energy statistics. Slide

16 Global Bioenergy Consumption in 2015 Consumption of biomass and waste resources by end use (Exajoules) Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Figure

17 Modern Bioenergy Growth by Sector Electricity Transport Heat Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Figure

18 Growth in Bio-based Power (Electricity) Annual capacity additions by country and region, Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Figure

19 Global Renewable Power Production Non-hydro renewable electricity generation, Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Figure

20 Global Biofuels Production Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Figure

21 Global Biofuels Production Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Figure

22 Global Biofuels Production Million tonnes oil equalivent (Mtoe), è America s dominate world production, feedstock constrains biodiesel Source: BP Statistical Review of World Energy, June

23 Bioenergy for Heat Renewable energy consumption for heat, 2010 and 2015 Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Figure

24 Bioenergy Use for Heat within Industry 2015 Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Figure

25 Global Wood Pellet Production and Use Wood pellet consumption by end use, Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Figure

26 Bioenergy Technologies Readiness Levels

27 Bioenergy Technologies Readiness Status Solid Fuel Production, Anaerobic Digestion & Thermochemical Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Table

28 Bioenergy Technologies Readiness Status Heat, Power Generation, Co-firing and Co-Generation Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Table

29 Bioenergy Technologies Readiness Status Biofuels for transport Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Table

30 Bioenergy Technologies Readiness Status Bioenergy and Carbon Capture and Sequestration or Use (BECCS and BECCU) è These are among a few promising routes to draw down atmospheric CO2 levels, and BECCS can also be achieved building up soil carbon è Fermentation can provide low cost source of concentrated CO2, which is needed to minimize carbon capture and sequestration costs Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Table

31 Sustainability Considerations

32 Multifaceted, Complex Sustainability Metrics Environmental and socioeconomic sustainability indicators Courtesy of Dr. Helena Chum (NREL) (Source: Oak Ridge National Laboratory, ORNL) 32

33 Assessment Methodologies Evolving Courtesy of Dr. Helena Chum (NREL) (Source: Kline et al., Oak Ridge National Laboratory, ORNL) 33

34 International ISO Standards Promulgated Courtesy of Dr. Helena Chum (NREL) 34

35 Attributional Life Cycle Assessment (LCA) è Up-to-date life cycle inventory data for energy/material inputs key! è Transparency in assumptions and calculation procedures required to obtain results verifiable by others (needed for consensus findings) Courtesy of Dr. Helena Chum (NREL) 35

36 Application of LCA to Transport Biofuels è Harmonization including in how coproducts are treated is essential to get agreement between LCA models of specific scenarios! Courtesy of Dr. Helena Chum (NREL) (Source: Dr. A.M. Kendall, Dept. of Civil & Environ. Eng., UC Davis) 36

37 Current Situation and Outlook

38 More Fully Integrated Solutions Required: Must Optimize Both Energy Production and Use Example: USDOE s Co-Optimization of Fuels and Engines Initiative Co-optima better fuels. better vehicles. sooner. Draws on collaborative expertise of two DOE research offices, nine national laboratories, and numerous industry and academic partners. Crosscutting initiative tackling fuel and engine innovation to co-optimize performance, maximize transport efficiency. Will contribute to Adv. Fuels in Adv. Engines Task 39-AMF study. Advancing R&D to: Bring affordable, scalable advanced biofuels and advanced engine solutions to market more quickly Improve fuel economy 15% 20% beyond targets of BAU R&D efforts Reduce petroleum use, achieve massive cost savings annually via improved fuel economy Dramatically decrease transport sector pollutants and GHG emissions Early finding: Attractive combo is higher ethanol (octane) blends in high compression engines. 38

39 Must Better Leverage Existing Infrastructure Example: Ensyn s Pyrolysis and Petroleum Refining Coprocessing Technology

40 Must Implement Circular Economy Technologies Example: Enerkem s MSW to Alcohols Gasification & Catalysis Technology Courtesy of Dr. Helena Chum (NREL) 40

41 Must Grow Bioenergy s Future Contribution In 2015 and in IEA s Degree Scenario (2DS) èachieving DS will require major shifts from traditional to modern bioenergy technologies as well as large capacity expansion across all sectors Source: IEA 2017 Technology Roadmap - Delivering Sustainable Bioenergy. Figure

42 Uncertain Impact of Future Climate Predicted Changes in Agricultural Production in 2050 èachieving 2DS in 2060 requires major shift from traditional to modern bioenergy as well as large capacity expansion Source: UN FAO 2018 The State of Agricultural Commodity Markets. Figure

43 Final Thoughts

44 Mexico s Energy Consumption Total energy consumption by source, 2015 Source: EIA 2017 Country Analysis Brief: Mexico. Figure

45 Mexico s Power Generation Electricity generation by fuel source, 2015 Source: EIA 2017 Country Analysis Brief: Mexico. Figure 12. (EIA s source: SENER) 45

46 International Renewable Energy Agency (IRENA) Mexico has a large and diverse renewable energy resource base. With accelerated development and conversion of traditional uses for cooking and building heating to modern forms of bioenergy, total bioenergy consumption in all end-use sectors for heating or as transport fuels could reach 685 petajoules (PJ) by 2030, more than 1/3 of total renewable energy use. Realizing such a vision will require new policies to promote bioenergy for heat, power and fuel applications in the buildings, industry and transport sectors. 46

47 Conclusions 1. Bioenergy will play a large role in future decarbonization 2. Renewable plant biomass and wastes can be carbonneutral and carbon net sequestering, building soil carbon è Effective regulation and policy are key! 2. Photosynthesis remains our only sustainable source of (oxygenated) hydrocarbons 3. Many Bioenergy/fuels Technologies Proven: Sugar- (Brazil, EU) and grain-based (US, EU) ethanol; cellulose-based demonstrated at large scales, both sugar fermentation and gasification (catalytic and fermentation) pathways Plant oil-based FAME biodiesel and renewable diesel / HVO commercialized; feedstock constrained Anaerobic digestion demonstrated for many waste/residue streams with biogas upgrading for grid and/or transport rapidly increasing 4. Economics remain challenged by low fossil energy prices and policy, especially valuation of carbon/ghg mitigation 47

48 Recommended Next Steps for Mexico èfully leverage worldwide learnings! èexplore collaborations / knowledge transfer with IEA Bioenergy, the United States and Canada and beyond to accelerate capacity building and implementation of modern bioenergy technologies for Mexico ètailor approaches to Mexico s specific regional feedstocks and wastes and decarbonization objectives 48

49 More Information IEA Bioenergy and especially IEA Bioenergy Task 39 & task39.ieabioenergy.com International Energy Agency (IEA) International Renewable Energy Agency (IRENA) US Energy Information Administration (EIA) USDOE s Bioenergy Technologies Office (BETO) www1.eere.energy.gov/bioenergy/ USDOE-USDA Biomass R&D Initiative Alternative Fuels Data Center National Renewable Energy Laboratory 49

50 Acknowledgments USDOE EERE s BioEnergy Technologies Office (BETO) IEA Bioenergy Tasks 38 and Dr. Helena Chum, Senior Research Fellow Emeritus, NREL s BEST Directorate IEA Bioenergy Task 39 NREL s National Bioenergy Center, Biosciences Center and BioEnergy Science and Technology (BEST) Directorate 50

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