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BIOENERGY ROADMAP
Setting the direction for biomass in stationary energy
to 2O2O and beyond
3
Foreword
In early 2007, the Australian Government, through the Department of the Environment, Water, Heritage and the
Arts (DEWHA), approved a grant under the Low Emissions Technology Abatement (LETA) – Renewables program to
allow the Business Council for Sustainable Energy (BCSE), now the Clean Energy Council, to develop an Australian
Bioenergy Roadmap.
The Clean Energy Council is responsible for the project management and delivery of the Bioenergy Roadmap.
This Roadmap aims to identify the potential of the bioenergy industry to contribute to Australia’s renewable energy
generation. It also provides the pathways and guidance for joint actions between government and industry to
attain that potential. An accompanying document, detailing the results of an appraisal of the biomass resources in
different bioenergy sectors is attached. (Please see enclosed CD-ROM for the Biomass Resource Appraisal.)
The Clean Energy Council acknowledges the project team and steering committee (Appendix A) appointed to ensure
that consultation, detailed research, analysis and compilation are conducted to the requirements of the project
deliverables. It also acknowledges the assistance of a number of its members and other industry stakeholders who
have provided in-kind participation and contributions to this project.
ISBN: 9
78-0-9805646-0-0 (print)
978-0-9805646-1-7 (online PDF)
Disclaimer
The Bioenergy Roadmap is a document developed by the bioenergy industry for the industry with financial support
provided by the Australian Government. The views expressed in the Bioenergy Roadmap do not reflect Government
policy, and the Commonwealth does not accept responsibility for any information or advice contained herein.
To the maximum extent permitted by law, the authors are not liable for any errors, omissions or inadequacy in the
information, or for any reliance on the information. Predictions and forward-looking statements in the Bioenergy
Roadmap are based on information existing and known at the time of publication, and are subject to changes in
circumstances beyond the control of the authors.
1. Introduction 3
1.1. The
Need for an Australian
Bioenergy Roadmap 3
1.2. The Bioenergy Roadmap Goal 3
5. T
he Potential Contribution of 19
Bioenergy in Australia
5.1. Biomass Resource Appraisal 19
5.2. B
ioenergy Target for Electricity 20
Generation by 2020
5.3. P
otential Bioenergy Contribution 21
to Electricity Generation by 2050
5.4. P
otential Bioenergy Contribution to 22
Stationary Thermal Energy
7. Appendices 39
A. Steering Committee Members 39
B. Glossary 40
1. Introduction
1.1. The Need for an Australian
Bioenergy Roadmap
With the need to reduce greenhouse gas The technology required to realise the
(GHG) emissions now a policy reality, this potential of the resource is largely proven
Roadmap provides a timely and necessary and based on established practice either
outline of the role bioenergy can play in locally or overseas.
Australia’s future stationary energy supply.
The substantial long-term potential of
This Australian Bioenergy Roadmap bioenergy means that it has a vital role to
addresses all forms of stationary energy play and can no longer be ignored as part
derived from biomass, including electricity of Australia’s clean energy future.
and thermal energy. It focuses in particular
on the capacity of the Australian bioenergy Bioenergy needs serious attention to
industry to 2020. The Roadmap only become a significant contributor to the
covers liquid fuels where these are used in domestic energy mix.
stationary energy applications.
Australia’s electricity supply has traditionally
This Roadmap is required because:
been inexpensive due to the plentiful supplies
Overseas countries have demonstrated of generally high-quality low-cost coal.
that bioenergy can contribute to stationary As a result, there has been little commercial
energy supply at levels much higher than incentive to date to look seriously at
Australia’s, which is less than 1% of total alternatives such as bioenergy. This situation
electricity supply. has now changed with the need to reduce
GHG emissions.
Australia’s biomass resources for stationary
energy production are abundant and are
currently underutilised or are a waste
requiring disposal.
3
Bioenergy has a vital
role to play as part
of Australia's clean
energy future. The
resources to produce
bioenergy are abundant
and are currently
underutilised or are a
waste requiring disposal.
The technology is proven,
and the opportunities are
significant.
2
Carbon dioxide equivalent, CO2-e, 140
provides the basis for comparing Fossil fuels
GHG Emission (kg CO2-e/GJ)
120
the warming effect of different
greenhouse gases. 100
3
National Greenhouse Gas 80
Inventory 2005.
60
4
he Carbon Pollution Reduction
T 40 Biomass fuels
Scheme is the federal
government’s central policy 20
mechanism intended to manage 0
Australia’s transition to a low
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5
onstructed using data obtained
C
from National Greenhouse and
Energy Reporting System 2007: Figure 1. Greenhouse gas emissions from fossil and biomass fuels5
http://www.greenhouse.gov.au/
reporting/publications/pubs/nger-
techguidelines.pdf
5
While some CO2 is emitted from fossil 2.2.2. Enhances energy security
fuels consumed during activities such as
harvesting or transporting the biomass, the Biomass resources are inherently plentiful,
amount is significantly smaller than the renewable and indigenous and are therefore
carbon dioxide emissions being displaced very highly rated as an energy source that
from the use of fossil fuel. In many instances can provide energy security to Australia.
the fuel expended in harvest and transport of
bioenergy feedstocks is necessary to produce Due to the distributed nature of biomass
the higher value product such as food or resources, bioenergy generators will tend
fibre. In such cases, there is no net increase to be relatively small and located near the
to the emissions as part of an integrated communities they serve. This is in contrast
process that also produces bioenergy. to fossil fuel generation plants, which
usually have large generation capacities
Waste biomass resources emit fugitive and are located far from their demand. This
GHG emissions such as methane if left to characteristic of bioenergy plants has an
decompose and this GHG has 21 times the added value for reliability and security of
impact of CO2. If this waste fuel is used for energy supply as the failure of a single small
stationary energy generation, it eliminates plant to deliver power has less of a system
or reduces these methane emissions and impact than a forced outage at a large
therefore provides additional GHG mitigation. centralised generator.
In the case of landfill gas, for instance, this
technology can save an additional 4 tonnes For rural or regional areas, bioenergy reduces
of CO2 equivalent for every megawatt hour of the system risk factor of disrupted electricity
electricity produced. supply caused by incidents including
accidents, or severe weather conditions such
The use of biomass wastes means that other as storms and lightning.
potentially higher emission sources of energy
can be displaced. Further, if these wastes In essence, bioenergy plants add to the
can be utilised near their point of creation diversity of energy supply, contributing to
and energy use, emissions associated with security of supply and strengthening weaker
the transport of the waste and the energy can outlying areas of the electricity grid.
be minimised.
Atmosphere
CO2, sunlight
and water used
in photosynthesis Electricity
to make new
plant matter
Heating
Cooling
Stages Benefits
7
Regional centres, townships and farming Developing a thriving Australian bioenergy
enterprises can benefit from the investment industry, including project developers,
and income generated from bioenergy component manufacturers and service
facilities with positive impacts for local providers is a key stepping stone towards
business, secondary employment and tapping into the enormous bioenergy project
community regeneration. In particular, opportunities that are available in the
farming enterprises can benefit from the Asia-Pacific region.
revenue diversification provided by bioenergy
facilities, and some applications can provide Germany introduced legislation (including
farms protection from rising energy and electricity feed-in tariffs6 and a range of
fertiliser costs. In the longer term farm- other complementary measures) to support
scale bioenergy facilities can contribute to renewable energy project development in
structural agricultural industry reform to a 2000 with further amendments in 2004.7
more productive, self-reliant and drought This legislation has led to remarkable growth
tolerant industry. Bioenergy offers permanent in the German renewable energy industry
fulltime employment which is unlike the and specifically demonstrates the potential
seasonal employment in most agricultural contribution from bioenergy technologies as
sectors. This means that labour is more summarised in Table 2 below.
likely to be permanently retained in rural and
regional communities.
The data in this table demonstrates the contribution bioenergy makes to electricity and heat supply
requirements in Germany and in particular demonstrates significant contribution to total employment
and industry turnover. These success stories need to be analysed and applied in Australia to meet the
bioenergy roadmap target.
6
eed-in tariffs are designed
F
2.2.7. Minimal infrastructure cost
to encourage the adoption of
renewable energy through an Bioenergy generators will typically be located Embedded bioenergy generators also reduce
obligation on retailers to buy near the load for energy and embedded in or eliminate energy losses at the end of long
renewable electricity at a rate set distribution networks. Therefore the need for
by the government. The higher transmission and distribution networks.
price helps overcome the cost
new major electricity network infrastructure Bioenergy generators can therefore be used
disadvantages of renewable can be avoided when connecting such to support networks, reduce losses and
energy sources. The rate will new generators. This is particularly true for improve reliability in rural and regional areas.
differ according to the size and rural areas where the cost of new network
type of technology employed.
infrastructure can be very high relative to
7
“EEG – The Renewable Energy
the size of load served. In some locations
Sources Act”, published by this could result in a constraint for rural
the German Federal Ministry development or very high capital costs.
for the Environment, Nature
Conservation, and Nuclear Safety,
July 2007.
8
“ Renewable energy sources
in figures – national and
international development”,
published by the German Federal
Ministry for the Environment,
Nature Conservation, and Nuclear
Safety, June 2007.
Australian Energy Networks
The Australian electricity industry has been reformed and the previous centralised
utilities broken up into three component parts: generation; transmission; distribution
and retail. In all states and territories (except NT) wholesale markets have been
established and retail competition has been introduced. Generators wishing to
connect to the networks must deal with the local network business and must
demonstrate that they can meet a range of technical requirements in order to ensure
that the system operates securely.
The market is still heavily reliant upon a narrow range of fuels for its electricity
needs, with only a small proportion coming from renewable resources.
The electricity supply system is mainly comprised of large generators
connected via large transmission lines to load centres.
9
3. Roadmap Development Methodology
3.1. Identify, Quantify and Evaluate
Creating the Roadmap involved a process Roadmap are verifiable and robust, and
of identifying, quantifying and evaluating recognised expert industry sources support
all available biomass resources in Australia. the conclusions of the Roadmap.
In order to deliver a roadmap that fulfils The outcomes of the Roadmap are reached
the target of providing an informed basis based on up-to-date data and foreseeable
for the future development of bioenergy in changes required in the period to 2020 to
the stationary energy sector, it is essential improve the penetration of bioenergy into
that the input data and materials for the Australia’s stationary energy sector.
11
4.1. Overseas Benchmarks
4.1.1. Electricity generation 14.3 Figure 3. Bioenergy’s
Finland
Sweden
Austria
Germany
Australia
Australia's
2020 Target
is not as well studied and quantified as the
contribution of biomass to
electricity generation.
In the USA, bioenergy generates 40 These other countries all have various
terawatt hours of electricity. This is incentives and regulations at a country level
equivalent to the entire grid-connected to promote bioenergy. Feed-in tariffs are
electricity demands of Western Australia, the most common policy instrument and
South Australia and Tasmania combined. have proved to be most effective in Austria
and Denmark .1 0 It was also identified that
Over 14% of Finland’s electricity often the feed-in prices are customised to
generation comes from bioenergy. encourage uptake according to the size or
technology employed by the bioenergy plant.
In Sweden, bioenergy makes up 5% of Successful overseas experience of such
their electricity supply. programs can guide the establishment of
sound criteria for Australia’s
More than 4% of electricity supply in
bioenergy industry.
Austria comes from bioenergy.
Presently approximately 0.9% of Australia’s In Europe, bioenergy comes second only
electricity generation comes from bioenergy.9 to large hydro schemes as a source of
The low level of penetration of bioenergy renewable energy. The European Union has
into the Australian stationary energy market put in place directives and strategic programs
means that there is the need to build such as the Biomass Action Plan 2005 and
industry capacity and capability to match the European Renewable Energy Council (EREC)
levels in place elsewhere in the world. Renewable Energy Roadmap, to further
increase bioenergy’s contribution to their
Figure 3 shows the percentage contribution primary energy supply mix.
of bioenergy to electricity generation in a
number of leading countries and compares At present, the European Parliament is
this with Australia’s present contribution. aiming to double bioenergy’s contribution to
It shows where Australia currently stands the total primary energy supply by 2010 1 1
(white) and where it will be if the 2020 as shown in Figure 4 below.
bioenergy target is realised (green).
Total=
+ Additional 80 Mtoe
149 Mtoe
Million tonnes of oil equivalent (Mtoe)
Liquid biofuels
19 Mtoe
Biomass
Total= 75 Mtoe for heat
1 Mtoe 69 Mtoe
9
International Energy Agency +27 Mtoe
(IEA) Renewables Information
Bioenergy
2007 (2006 data).
48 Mtoe
10
uropean Biomass Association
E
(AEBIOM), Boosting Bioenergy Biomass for
+35 Mtoe 55 Mtoe electricity
in Europe, 2005.
20 Mtoe
11
uropean Biomass Association
E 0
(AEBIOM), Boosting Bioenergy 2003 2010 Year
in Europe, 2005.
Figure 4. EU25 Biomass Action Plan target
4.1.2. Thermal energy benchmarks
As observed in Figure 4, the present the increases planned in Europe have some
contribution of biomass for heat in Europe relevance as a possible benchmark
is more than double the contribution to for Australia.
electricity generation. While Australia’s
warmer climate may mean that this is not There is similar potential for growth where
a realistic target for an Australian thermal biomass displaces fossil fuels for industrial
energy benchmark, it does serve to illustrate and commercial applications including paper
the potential importance of this sector in and timber mills, the cement industry and
addressing a carbon-constrained future. other industries such as food processing.
Data from the Firewood Association indicate These international comparisons leave no
that Australia’s use of biomass for heating doubt that there is also significant potential
may be at a similar order of magnitude to the for the growth of bioenergy for thermal
European experience. The potential growth generation in Australia.
for this sector as the cost of carbon and other
policy measures are implemented means that
o
Fib
13
4.3. Minimisation, Management
and Utilisation of Waste
There is justifiable concern that an The long-term viability of Australia’s
increase in the value of biomass resources bioenergy industry relies on access to
and primary wastes, arising from energy sustainable biomass resources. To achieve
production could add demand for more this, consideration needs to be given to
“wastes”. The concept of sustainable waste the amount of “waste” resource available
management aims to avoid this potential in Australia and the various local, state or
outcome. Examples of legislation that national policies that govern the management
imposes such management aims are the of waste and quantity produced.
Waste Minimisation Act 2001 and NSW
Waste Avoidance and Resource Recovery When waste that is destined for disposal
Act 2001. can be recovered, diverted or used at waste
treatment/storage sites to create bioenergy,
The “waste hierarchy” widely adopted in use is made of an otherwise useless, and
waste management strategies prioritises key potentially environmentally
waste management steps as indicated detrimental resource.
in Figure 6:
Resource recovery
Disposal
The future viability of bioenergy will no While there are currently a number of
longer be benchmarked with the historical mandated and voluntary schemes available
wholesale electricity price of around $35 to as potential revenue streams for bioenergy
$45 per megawatt hour primarily because projects, present government policy is to
of the imminent introduction of the Carbon reduce this to only two schemes, being the
Pollution Reduction Scheme (CPRS) and expanded national Renewable Energy Target
increase of coal and gas prices. and Carbon Pollution Reduction Scheme.
Capturing and storing waste CO2 from coal- The latter scheme will impact bioenergy
fired power stations is projected to add at projects through an increase in electricity
least $30 to $100 per megawatt hour to prices while the announcement of the
current costs. Therefore coal-fired power is former (along with the implementation
expected to be twice to three times more of the Victorian VRET) has led to recent
expensive in the future. and significant increases in the price for
Renewable Energy Certificates (RECs) as
McLennan Magasanik Associates (MMA) shown in Figure 7 below.
suggest that to stabilise electricity emissions
at 2000 levels by 2020, the wholesale price
of electricity could be between $60 and $80
per megawatt hour due to the effects of a
carbon price.12
35
30
25
20
15
10
Jun 03
Sep 03
Dec 03
Mar 04
Jun 04
Sep 04
Dec 04
Mar 05
Jun 05
Sep 05
Dec 05
Mar 06
Jun 06
Sep 06
Dec 06
Mar 07
Jun 07
Sep 07
Dec 07
Mar 08
Jun 08
The resource assessment that underpins resources available, many are still in their
this Roadmap has shown that there is pilot stage of establishing commercially
sufficient biomass to supply a significant scaled plants in Australia. This immaturity
proportion of Australia’s future stationary in various sectors of bioenergy leads
energy generation. The resource assessment to investment doubts and means that
also confirms that this capacity can be many sectors face difficulties in obtaining
implemented with the use of established appropriate financing.
stationary energy conversion technologies.
Exceptions to this are the sugar, sewage
However, in a general sense, the Australian gas and landfill gas sectors where there is
12
MA, Impacts of a National
M
Emissions Trading Scheme on bioenergy industry is still relatively now a significant history of commercially
Australia’s Electricity Markets, fragmented and has yet to gain full viable projects and businesses that have
July 2006. confidence from financial institutions at successfully implemented bioenergy projects.
a significant scale. Among the different These sectors now find that financing is no
13
arbon Market Economics,
C
2008. conversion technologies and biomass longer a significant challenge to implement
new projects.
15
In order to ensure the success of bioenergy Another related issue is that most upstream
projects, the risks inherent to maintaining businesses that produce food, fibre and other
supply of the bioenergy resource at the products from biomass have little expertise
right quality, quantity and price for the long or interest in stationary energy conversion.
term need to be taken into full account. It is This issue is compounded by the fact that
essential that the investor and financier of a stationary energy conversion is characterised
bioenergy generation project take a holistic by long-term, high-capital costs.
view not only regarding the plant investment
but also the other products produced further In spite of these challenges, it is expected
up the biomass value chain. that within the 2020 timeframe, there
are a number of organisations capable of
This is unfamiliar territory for “traditional” deploying proven technologies such as direct
electricity generators who are accustomed combustion, co-firing and anaerobic digestion
to securing long-term take-or-pay contracts to produce a rapid growth in the contribution
for fossil fuels to underpin their investment of bioenergy to Australia’s stationary
in long-lived and capital-intensive electricity- energy supply.
generating plants.
Ash
During anaerobic digestion, about half Municipal solid waste, commercial and
of the biomass is converted into biogas, industrial waste, and wet wastes such as
which is fed into a gas engine to produce livestock manure, are typical feedstocks for
electricity and/or thermal energy. The other such technology.
half becomes an organic slurry, which can be
used as fertiliser.
Electricity
Gas
gas engine/ Heating or Cooling
Bio turbine
Feedstocks Digester Transport
Compacted biofuel refers to the compression These products can be kindled quickly and
of low moisture biomass into compact used in direct combustion devices, such as
briquettes or pellets to achieve a higher mass domestic stoves and wood heaters and also
densification than regular biomass. commercial furnaces and boilers. As they
are very compact and stable, the pellets can
Torrefaction, a thermochemical treatment easily be transported, stored and handled.
process, is used to enhance the compacted
biofuel by lowering the moisture content and Typical biomass resources used by this
increasing the energy content to about 30% process include timber waste, sawdust and
more per unit of mass. agricultural waste.
17
4.6.4. Pyrolysis
Pyrolysis is a process that produces multiple The char contains much of the carbon in a
streams of products. There are two main solid form which can act as a soil enhancer
types of pyrolysis: or carbon storage when worked into the
ground or as a feedstock for other processes.
Fast pyrolysis typically takes place in a
second or less and can achieve up to
Fast pyrolysis has been demonstrated
75% conversion of the dry biomass to
commercially over a number of years by two
a liquid fuel. The balance of the
Canadian companies.15 Slow pyrolysis has
biomass is converted to char and
been demonstrated commercially in various
non-condensable biogas.
parts of the world as a method of making
wood charcoal for metallurgical applications.
Slow pyrolysis produces mainly biogas and
char, plus some liquids.
Although attracting local and international
investment, pyrolysis has not yet achieved
Subject to satisfactory cleaning, the biogas the same level of broad-based commercial
produced can be used to fuel stationary viability as direct combustion or anaerobic
energy plants. The liquids can be used as digestion.
fuel in boilers and some gas turbines and
have potential for other high-value products
that could provide additional revenue streams
to enhance commercial viability.
Exhaust
Heat gases Generator > Electricity
Liquid
No air fuel Gas
Feedstocks Pyrolysis engine/ Heating or Cooling
turbine
Ash
Transport
Figure 10. Pyrolysis
Exhaust
gases Heating or Cooling
Restricted air/ Dirty Clean
Steam gas gas
Gas Gas
Feedstocks Gasification engine/ Transport
cleaning turbine
Generator Electricity
15
HI Consulting, The Northern
S Char/Ash
Ontario Biotechnology Initiative, Waste heat
2004.
High pressure steam
16
. Chopra and A. Jain, A
S Steam turbine
Review of Fixed Bed Gasification Boiler Lo
w
Systems for Biomass, pr
es
su
Agricultural Engineering re
st
International: the CIGR Ejournal. ea
m
Invited Overview No. 5. Vol. IX.
April, 2007. Figure 11. Gasification and combined cycle generation Heating or Cooling
5. The Potential Contribution
of Bioenergy in Australia
5.1. Biomass Resource Appraisal
The biomass resource appraisal (see Using Clean Energy Council’s Plant Register
enclosed CD-ROM) was developed using of Renewable Generators, Office of the
a “bottom up” approach that was based Renewable Energy Regulator’s Register of
on a technical and economic evaluation of Accredited Power Stations and expert input
each sector of Australia’s available biomass of the steering committee and others, it has
resources. This means that it does not been possible to evaluate and calculate the
attempt to quantify the bioenergy potential of potential contribution to electricity generation
the total biomass available in Australia but with a degree of accuracy and confidence.
focuses on those resources where there is a
prospect that the resource can be matched This has allowed the biomass resource
with an appropriate technology to contribute appraisal to be presented as a target for
economically and in a sustainable manner to bioenergy contribution to 2020 as well as a
stationary energy supply. Table 3 below lists separate long-term appraisal of the overall
the bioenergy resource sectors evaluated. potential of the available resources.
There is, however, much less available
baseline information on thermal energy and
therefore this area requires more work in the
future to evaluate the potential
bioenergy contribution.
Energy crops Energy crops refer to short rotation crops that are coppiced or
other crops grown for the purpose of bioenergy production as
well as woody weeds.
Landfill gas Landfill gas captures the methane emitted from landfills which
is produced from mainly municipal solid wastes and industrial
wastes, to generate bioenergy.
Sewage gas Sewage gas captures the methane emitted from the solid organic
components of sewage collected by water utilities to produce
bioenergy.
19
5.2. Bioenergy Target for Electricity
Generation by 2O2O
The biomass resource appraisal identified In Australia the average household electricity
that an annual target of approximately consumption in 2006 was about 7.1
11,000 gigawatt hours per annum of megawatt hours.17 This target of 11,000
electricity generation can be delivered from gigawatt hours can deliver enough electricity
an equivalent of about 1,845 megawatts to power about 1.5 million homes by 2020.
of installed capacity to 2020. This includes
both existing and new capacity and is a The Australian Government is projecting
realistic target for bioenergy in Australia that Australia’s electricity demand will be
based on current and anticipated energy about 300 terawatt hours by 2020. This
market conditions and policies as well as the Roadmap target supplies about 4% of
implementation of the strategies outlined in that demand which is over four times the
this Roadmap. This represents a contribution current contribution to electricity generation.
of approximately 18% of the national Although a potential significant improvement
2020 target of 60,000 gigawatt hours of for Australia, this remains well below the
renewables which will make up the 20% of 14% benchmark already being reached by
Australia’s forecast electricity demand. the leading European countries.
Sugarcane 3,165
Total 10,624
Energy crops
Agricultural-related wastes 2%
7%
Sewage gas
8% Sugarcane
30%
Urban biomass
(including urban timber)
7%
17
ESAA, Electricity Gas Australia,
2007
18
BARE, Australian Commodities
A Landfill gas
2007. 18%
19
ustralian Business Roundtable
A
on Climate Change,
The Business Case for Early Wood-related wastes
Action, 2006. 28%
Figure 12. The bioenergy target for electricity generation to 2020 by sector
5.2.1. Biofuels for stationary energy
Blends of liquid fuels derived from biomass However, of late, many existing biodiesel
such as biodiesel blended with petroleum plants have been mothballed (e.g. Australian
diesel are already contributing to electricity Biodiesel Group’s Berkeley Vale refinery in
generation in Australia, particularly in remote New South Wales, Australian Renewable
off-grid locations such as mining sites and Fuels’ Largs Bay and Picton facilities in
tourist facilities. Adelaide and Western Australia) or are
operating significantly below full production
Ethanol, another potential fuel for stationary capacity (e.g. Eco-tech Biodiesel and
generation, can be produced from the Australian Biodiesel Group’s
fermentation of biomass feedstocks. Narrangba facilities).
Biodiesel is usually produced from vegetable
oil or animal fat feedstocks. Glycerol, a This current low production of biodiesel is
by-product of this process, is also used for largely due to the rise in feedstock costs
co-firing with fossil fuels, including coal. which accounts for 60 to 70% of biofuel
production costs. There is also a lack of
In 2005–06, Australia produced and consumer demand as well as an excise
consumed 57 million litres of biofuels, issue looming in 2011. For these reasons,
consisting of 41 million litres of fuel ethanol the potential contribution of biodiesel to
and 16 million litres of biodiesel.18 stationary generation in 2020 is limited.
This potential is in line with the 2004 The Australian Business Roundtable on
Clean Energy Future for Australia report Climate Change19 estimated that bioenergy
that anticipates bioenergy contribution to could supply between 19.8 and 30.7% of
electricity generation of 68 terawatt hours Australia’s electricity needs by 2050. This
to 2040. also confirms the key role that can be played
by bioenergy.
Sugarcane 7,800
Total 72,629
21
Sewage gas Energy crops
1% 1%
Landfill gas
5%
Urban biomass
(including urban timber)
6%
Wood-related wastes
7%
Sugarcane
11%
Agricultural-
related wastes
69%
Figure 13. Australia’s potential long-term bioenergy contribution to electricity generation by sector
23
6. Bioenergy Roadmap
Strategies
Objective 1
To develop effective industry advocacy and capacity building leading to a growing
and viable bioenergy industry. The ultimate objective is that the bioenergy sector
becomes a significant and self-sustaining part of the clean energy industry.
Issues Actions
The bioenergy industry in Australia is The Clean Energy Council will provide an
comprised of diverse sectors that currently ongoing forum for the stakeholder groups
work individually to represent their to meet and implement the objectives
specific interests. Stronger collaboration and actions of this Roadmap.
across the bioenergy industry is required
if it is to influence government and take Establishment of this Bioenergy Forum
up opportunities of sharing in industry with representatives from the broad
development initiatives. range of industry associations building
on the successful collaboration in the
Advocacy for bioenergy has been Roadmap’s development must work to
fragmented in the past and is not as strengthen and build stakeholder and
well organised and funded as for other public confidence and support for
renewable resource and technology areas. the sector.
The process of developing the Roadmap The stakeholder groups that have
has led to a collaboration of the contributed to the Roadmap and
stakeholder groups that needs to endorse its content accept that they
be used as a basis for more effective have responsibility to advocate for the
future advocacy. implementation of the objectives and
actions in this Roadmap.
The growth of the industry can only
occur if there is a strong and suitably Development of a Workforce Strategy for
qualified workforce to support the the industry to ensure there is a skilled
design, construction, commissioning and and suitably qualified labour market
operation of assets. The industry as a to support the industry’s projected
whole needs to consider workforce issues expansion to 2020.
and undertake planning to ensure skills
gaps are addressed.
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Objective 2
Issues Actions
Issues Actions
27
Objective 4
To ensure that the overall renewable energy industry is encouraged to make
long-term investments, particularly in bioenergy, through the implementation
of announced policies that allow renewables to compete with fossil-fuelled
stationary energy.
Issues Actions
Government policies such as the Carbon The 20% by 2020 Renewable Energy
Pollution Reduction Scheme (CPRS) and Target (RET) to be implemented by the
Renewable Energy Target (RET) must be government in 2008–09.
designed so that bioenergy generators
that reduce emissions (such as fugitive The Commonwealth Government to
emissions) from wastes through their implement its policy to introduce the
generation plant are able to obtain Carbon Pollution Reduction Scheme
the benefit. (CPRS) by 2010 as scheduled and with
due regard to encouraging bioenergy
Ensure that price of carbon is reflected applications that reduce
in electricity prices and thermal energy fugitive emissions.
prices to encourage the uptake
of bioenergy. A transition policy, in conjunction
with the CPRS, providing incentives to
Ensure that the CPRS does not lead to encourage and facilitate an increase in
market distortions and undesirable land the use of thermal energy derived from
use changes which would have adverse biomass to be introduced by
impact on biomass fuel sources. the government.
Encourage fuel switching from fossil Government needs to consider support for
fuels to biomass by introducing an biosequestration processes and projects
incentive equivalent to that of the RET for where similar objectives to that of
stationary thermal energy applications. geosequestration can be achieved.
Biosequestration is a promising
alternative to the much touted
geosequestration but has received
very little attention and support from
government.
Objective 5
It is most important that bioenergy project proponents can secure long-term supply
of biomass to justify and support investment in long-lived generation assets.
Issues Actions
Objective 6
To ensure that connection of bioenergy generators secures full value created for the
National Electricity Market (NEM) or other grids in Australia.
Issues Actions
29
6.2. Sector-specific Objectives
and Actions
1. Agricultural-related wastes
Objective 1
To ensure that the agricultural sector has access to feed-in tariffs for
bioenergy applications.
Issues Actions
Objective 2
Issues Actions
The adoption of an integrated supply Engage with the food industry and
chain approach in the meat industry (and encourage the introduction of integrated
similarly, in many food processing facili- supply chain approaches by the industry.
ties) to manage energy in the agribusiness
sector, by using waste products inhouse
and recycling nutrient/ash material back
to farms must be encouraged. A key
outcome of adoption of such an approach
is the reduction in the need for transport.
Objective 3
Ensure that bioenergy take-up is encouraged with proven practices within the
agricultural sector.
Issues Actions
2. Energy crops
Objective
Issues Actions
Investment in research and development Seek investment and funding for research
for mechanised harvesting of oil mallee and development to support improved
and other tree energy crops (where mul- harvesting techniques.
tiple stems make “European” style energy
crop harvesting inappropriate) needs to
occur to maximise the potential for
these crops.
3. Landfill gas
Objective 1
Ensure that there are sufficient market incentives in place to facilitate the
continued improvement in landfill site capping practices to maximise landfill
gas capture.
Issues Actions
To achieve continued and increased gen- Industry to advocate for incentive pro-
eration from LFG plants, landfill site cap- grams for the landfill gas sector to ensure
ping practices to capture methane must improvement in landfill gas capture rates
be improved. This will reduce fugitive and generation and its continued opera-
leakage of this gas to the environment tional viability.
and increase the amount of LFG available
for use in current LFG plants.
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Objective 2
Maintain government support for GHG reduction schemes that are already in place
and contributing to emissions reductions.
Issues Actions
4. Sewage gas
Objective
To promote sewage treatment facilities to utilise available waste to generate
bioenergy by upgrading their plants.
Issues Actions
Issues Actions
The new cogeneration facilities at Encourage the use of trash, tops and
Broadwater and Condong in NSW intend leaves by the industry to increase output
to supplement their off-season fuel by where agronomic practices allow.
using a significant quantity of trash, tops
and leaves. Strategies to increase level of
trash, tops and leaves for fuel across the
industry have the potential to increase the
energy output of the sugar industry.
Issues Actions
Objective 2
To have in place a consistent nationwide waste management strategy to coordinate
available wastes in urban communities.
Issues Actions
33
7. Wood-related wastes
Objective 1
To assist the adoption and adaptation of new technologies through incentive
programs such as feed-in tariffs.
Issues Actions
Objective 2
To ensure that wood-related wastes are treated consistently at both national and
state levels for bioenergy use.
Issues Actions
Changes are needed in regard to the way Advocate for amendment to the Renew-
wood waste from production forestry is able Energy (Electricity) Act 2000 and
managed under the Renewable Energy state-based regulations to achieve a sup-
(Electricity) Act 2000 as well as in state- portive regulatory regime that encourages
based regulations. Amendments are re- the sustainable use of wood waste
quired to recognise the extensive environ- for bioenergy.
mental benefits of utilising wood residue
resources from all forms of forestry for
bioenergy generation.
8. Firewood and woodheaters
Objective 1
To investigate the potential of firewood to make a contribution to stationary
thermal energy.
Issues Actions
The contribution that firewood makes Advocate for funding for further research
to bioenergy requires further research in this area. A better understanding of
to enable accurate determination of the the present capacity of the industry will
potential for future growth. Funding to enable a more informed setting of future
support this research is required. growth targets for the sector.
Objective 2
To encourage use of efficient and low-emission heating equipment as well as the
production of its feedstock.
Issues Actions
The opportunity to replace old and Develop information for both the public
inefficient heating equipment with and government on the potential of these
ultra-low-emission small-scale wood products in Australia, and encourage
heaters to take advantage of Australia’s support from government for the local
unique hardwoods needs to be further production of the fuels required for
explored and encouraged. these heaters.
Objective 3
To ensure that households that embrace bioenergy heating receive the same
rebates as other renewables.
Issues Actions
Issues Actions
Objective 2
To remove any regulatory barriers that prevent resource recovery best practices.
Issues Actions
Objective 3
To ensure the continuity of financial support by the government for high-risk
resource recovery projects.
Issues Actions
The government currently assists the in- Advocate for the continuation of gov-
dustry with funding for high-risk resource ernment support for high-risk resource
recovery projects, for example the use of recovery projects.
biosolids in cement production.
The continuation of this funding support
is essential.
Objective 4
To ensure that biosequestration is given the same emphasis as other carbon
sequestration technologies.
Issues Actions
Issues Actions
commercial-scale projects
implementing biomass fuel preparation
and drying technologies (including
pellets and torrefaction).
37
6.3. Strategies for the Long Term
(beyond 2O2O)
There are a number of areas in the biomass 6.3.2. International Links
sector where longer term research and and Learning
development could deliver significant and
large-scale gains. Australia should strengthen its
participation in International Energy
The Bioenergy, Bio-products and Energy Agency (IEA) Bioenergy. IEA Bioenergy is
Program Research & Development Plan an international Research, Development
2008 to 2012 by Rural Industries Research and Demonstration (RD&D) collaborative
and Development Corporation (RIRDC) is program involving 20 countries plus the
an excellent starting point for these issues. European Commission, operating via the
In addition, there are some specific areas conduct of several bioenergy tasks. It is
that demonstrate significant potential as regarded as essential to maintain this
listed below. It is considered that any plan to linkage to allow leverage off international
conduct research and development in these best practice experience in bioenergy.
sectors needs to be weighed up against the
possibility of adopting the results of better Active participation in IEA Bioenergy will:
resourced overseas developments.
support the position of Australia’s forest
industry to lobby for a reform to state
The following actions are recommended to
and federal legislation dealing with
advance the interests and potential of the
the use of forest residues for bioenergy
bioenergy sector in Australia beyond 2020.
purposes
enable integration of forest biomass
6.3.1. Research and Development harvesting with other IEA bioenergy
programs such as T38 (Greenhouse
Undertake a study into systems to deliver Gas Balances of Biomass and Bioenergy
low-density crop residues into economi- Systems) and T30 (Short Rotation Crops
cally scaled generating plants in Australian for Bioenergy Systems)
conditions.
create opportunities to access new
Conduct research and development to markets, particularly in reaction to
improve biomass yields as well as pest initiatives arising to address climate
and disease control. Nutrient aspects change and in response to the
of agricultural and forestry residues are development of the Australian Emissions
important with growing costs for fertilisers. Trading Scheme.
David de Jongh Senior Forest Policy Analyst National Association of Forest Industries
(NAFI)
Jim Crane Senior Executive Officer Australian Sugar Milling Council (ASMC)
Simon Ramsay Chair, National Farmers Federation National Farmers Federation (NFF)
Biofuels Taskforce
39
B. Glossary
Anaerobic digestion: Decomposition Coppiced: Regenerated by producing
of biological wastes by micro-organisms, multiple new shoots from a stump left
usually under wet conditions, in the absence after harvest.
of air (oxygen), to produce a gas comprising
mostly methane and carbon dioxide. Decentralised supply: Distribution supply.
Chips: Woody material cut into short, Moisture content: The weight of the water
thin wafers. contained in the biofuel, usually expressed as
a percentage of weight.
Co-firing: Utilisation of solid, liquid or
gaseous forms of biomass along with a Nitrogen oxides (NOx): A product of
fossil fuel. photochemical reactions of nitric oxide in
ambient air which is the major component of
Cogeneration: The sequential production of photochemical smog.
electricity and useful thermal energy from a
common fuel source. Photosynthesis: Process by which
chlorophyll-containing cells in green plants
Combined cycle: Two or more generation convert incident light to chemical energy,
processes in series or in parallel, configured capturing carbon dioxide in the form of
to optimise the energy output of the system. carbohydrates.
Combustion: Burning.
Pilot scale: The size of a system between Thermal energy: Heating and
the small laboratory model size (bench scale) cooling energy.
and a full-size system.
Ton, tonne: One metric tonne (tonne) =
Pyrolysis: The thermal decomposition of 1000 kilograms.
biomass at high temperatures (greater than
200° C) in the absence of air. Trigeneration: A process in which an
industrial facility uses its waste energy to
Recovery boiler: A pulp mill boiler in which produce heat or electricity as well as cooling.
lignin and spent cooking liquor (black liquor)
is burned to generate steam. Turbine: A machine for converting the heat
energy in steam or high temperature gas into
Solar energy: Energy radiated from the sun. mechanical energy.
Stationary energy: Electricity and Watt: The common base unit of power in
thermal energy. the metric system.
AUSTRALIAN
BIOENERGY ROADMAP
Biomass Resource Appraisal
This document details the results of the assessment of the
biomass resources in different bioenergy sectors in Australia
41