Verification of CI and Prevention of Land Use Change in Global Biofuel Supply

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ISCC / PRIMA Conference, San Francisco, April 6, 2017 Verification of CI and Prevention of Land Use Change in Global Biofuel Supply Dr Jan Henke, ISCC System GmbH

Without secure verification of carbon intensity (CI) and prevention of land use change (LUC) low carbon fuel policy is at risk Carbon intensity: CI values might not reflect reality with respect to Feedstock Process Supply chain Land use change Cutting or burning down of rainforests Loss of land with high biodiversity value or high carbon stocks High impact on CI, which can easily become negative 2

ISCC verifies key drivers of the CI number throughout the supply chain Example ethanol All figures are examples only CI driver: type of feedstock CI driver: process CI driver: land use change 75% 85% 60% 90% 85% 40% Ethanol with LUC prohibited under ISCC Sugar cane ethanol Waste-based ethanol Corn ethanol Corn ethanol with biomass as process energy Corn ethanol with biomass and CCR -10% Ethanol with sustainable LUC (degraded land to sugar cane) 3

Low carbon fuels policy must protect no go areas and verify the type of LUC 4

ISCC verifies individual GHG calculations. Verification takes place at the supply chain element where emissions occur Farm/ Plantation/ Central office/ FGP Feedstock emissions kg CO2eq/t corn Processing unit Processing emissions kg CO2eq/t ethanol Cultivation emissions Processing Land use change Transport Improved agricultural management Excess electricity CCR, CCS 5

Based on a defined methodology, ISCC guidance and specific on-site situation, companies conduct their CI calculations General data Address Name Street, Number Postal Code, City Contact person Production capacity bioethanol Time period of data input Greenhouse gas (GHG) emission calculation for the production of bioethanol (fermentation and distillation) Meo Carbon Solutions GmbH Hohenzollernring 72 D-50672 Köln Guarantee successful audit Specific calculator based on individual setup Calculation according to ISCC methodology 1. Emissions related to raw material Production main product Bioethanol production 12.100.000,0 L/annum Calibrated tanks Production by-product No by-products Production waste and residues Waste yeast 200,0 t/annum Yeast production plan & effluent loadings Other wastes 365.659,0 L/annum Calibrated tanks Main raw material Raw material 628.283 t/annum Greenhouse gas value of raw material 0,0 kg CO 2e/t Conversion factor Bioethanol production Emissions related to raw material Raw material 19,26 L Ethanol/ t raw material 0 kg CO 2e/ annum 0,00 kg CO 2e/L Bioethanol Source Source Source Source Categorization of raw material as waste. Individual and country specific analysis regarding the categorization as waste or as by-product may be required. Fully transparent calculation Easy to update All data sources, evidence, references, literature documented Usable for certification audit Source: Meo Carbon Solutions GmbH 6

Specific situation on the ground example palm oil mill CH 4 C gas t n 7

ISCC provides procedures and tools for secure CI verification. This can also be input to CI pathways ISCC ensures a level playing field with respect to GHG calculations and CI numbers reported ISCC GHG Training for auditors and system users Mandatory audit procedures, guidance, verification and reporting requirements to be used by auditors Auditors need to verify GHG calculation prior to the audit ISCC Integrity Program: Upfront GHG verification by ISCC GHG experts 8

ISCC uses GRAS for sustainability risk analysis and the detection of land use change With GRAS sustainability can be checked from your desktop Web-Tool Biodiversity Land Use Change Carbon Stock Social Indices 9

Example canola: GRAS can identify the conversion from forest or grassland to cropland in a buffer area around farmhouse Sentinel-2, 2016 Cropland SPOT, 2007 Farmhouse Grassland conversion Grassland Deforestation Grassland Cropland Forest Cropland 10

Example palm oil: GRAS can clearly identify replanting activities and does not show those as deforestation Landsat, 2003 Landsat, 2016 1 Palm oil 2 plantation Palm oil plantation Replantation in 2010 1 2 Palm plantation Palm plantation 11

Many thanks for your attention! Contact Dr Jan Henke ISCC System GmbH Hohenzollernring 72 D-50672 Cologne, Germany Email: info@iscc-system.org Tel: +49 221 1793 2966 Fax: +49 221 941 5863