chapter i: introduction - fedebiocombustibles i - introduction.pdf · prospective vision of...
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Chapter I:
Introduction
PREPARED TO: Inter-American Development Bank (IDB)
Ministry of Mining and Energy
PREPARED BY: Consortium CUE
DATE: January 2012
CITY: Medellin
BID Banco Interamericano de Desarrollo
MME Ministerio de Minas y Energía
MADR Ministerio de Agricultura y Desarrollo Rural
MAVDT Ministerio del Medio Ambiente y Desarrollo Territorial
DNP Departamento Nacional de Planeación
Project:
“Strategies of sustainable energy and biofuels
for Colombia ATN/JC 10826 CO and ATN/JF 10827 CO”
“Assessment of biofuels chain production
life cycle in Colombia”.
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Biofuels Sustainability in Colombia – Chapter I: Introduction
TABLE OF CONTENTS
1 STUDY STRUCTURE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
2 INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
2.1 BACKGROUND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
2.2 ABOUT THE AUTHORS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
2.3 OBJECTIVES OF THE STUDY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
2.4 METHODOLOGY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
2.5 FRAMEWORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
3 REFERENCES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
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Biofuels Sustainability in Colombia – Chapter I: Introduction
LIST OF TABLES
Table 1: Area of oil palm production in the world (in thousands hectares/year)………………… 7
Table 2: Annual production yields by zone (in tons per hectare)………………………………………… 8
Table 3: Sugar cane world production……………………………………………………………………….……… 10
LIST OF FIGURES
Figure 1: The five components of the study.............................................................................................. 4
Figure 2: Geographic location of production areas and processing sites……………………………. 6
Figure 3: Global ethanol production development, substrates distinction, in thousand
million liters. Source: FAO/OECD agricultural Outlook 2009……………………………………………… 9
Figure 4: World sugar productivity (sugar ton Average per hectare-year). Source: LMC
International, 2008……………………………………………………………………………………………………………… 9
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Biofuels Sustainability in Colombia – Chapter I: Introduction
GLOSSARY
AGB Above Ground Biomass
AWC Associated work Cooperative
BGB Below Ground Biomass
BLIHR Business Leaders Initiative on Human Rights
CDM Clean Development Mechanism
CED Cumulative Energy Demand
CF Carbon Fraction
CH Swiss ecoinvent data classification
CML Environmental Sciences Institute, Leiden University
COD Chemical Oxygen Demand
CRGV Cauca River Geographical Valley
CSA Consortium Study Authors (NCPML-UPB-EMPA)
DALY Disability Adjusted Life Years
DOM Decomposed Organic Matter
ECEA Ecoinvent Classification to European Average
EI99 Eco indicator 99
EtOH Ethanol
FAO Food and Agriculture Organization of United Nations
FFB Fresh Fruit Brunches
GBEP Global Bioenergy Partnership
GDP Gross Domestic Product
GHG Greenhouse Gases
GIS Geographic Information System
GRI Global Reporting Initiative
GWP Global Warming Potential
IALC Impact Assessment Life Cycle
IAvH Instituto de Investigación de Recursos Biológicos Alexander
von Humboldt
IDB Inter-American Development Bank
IDEAM Instituto de Hidrología Meteorología y Estudios Ambientales
IEA International Energy Agency
IFC International Finance Corporation
IGAC Instituto Geográfico Agustín Codazzi
ILO International Labor Organization
iLUC indirect Land Use Change
IPCC Intergovernmental Panel on Climate Change
LCI Life Cycle Inventory
LFC Life Cycle Analysis
LQI Life Quality Index
LUC Land Use Change
MARD Ministry of Agriculture y Rural Development
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Biofuels Sustainability in Colombia – Chapter I: Introduction
MEHTD Ministry of Environment, Housing and Territorial
Development
NSPA National System of Protected Areas
PAH Polycyclic Aromatic Hydrocarbons
PDD Project Design Document
PM Particulate Matter
PME Palm methylester
RED Renewable Energy Directive
RSB Round table on Sustainable Biofuels
RSPO Roundtable on Sustainable Palm Oil
SAUNNPS Special Administrative Unit of Natural National Parks System
SD Standard Deviation
SLCA Social Life Cycle Analysis
SOC Soil Organic Carbon
SQCB Sustainability Quick Check for Biofuels
TSP Total Solid Particles
UBN Unsatisfied Basic Needs
UCTE Union for the coordination of Transmission of Electricity
(Europe)
UNFCCC United Nations Framework Convention on Climate Change
VOC Volatile Organic Compounds
WC Workers Confederation
WWF World Wide Fund for Nature
WWT Wastewater Treatment
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Biofuels Sustainability in Colombia – Chapter I: Introduction
1. Study Structure
This report contains the results of the study “Biofuels chain production life cycle
assessment in Colombia”, hired by the Colombian government with the support of Inter-
American Development Bank – IDB.
The report is divided into the following chapters:
Chapter I: Introduction
Chapter II: LCA Study – Environmental Impact.
Chapter III: GIS Study – Potential Expansion.
Chapter IV: Sustainability Analysis
Chapter V: Toolkit
Chapter VI: Declaration of Development Interested Parties- IDB
For each component, they are described the results related to the methodological
approach, their variables and collected information. IDB.
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Biofuels Sustainability in Colombia – Chapter I: Introduction
2. Introduction
2.1 Background
The development of the renewable energy sector has been
favored due to climate change and the expected scarcity of
fossil fuels. Biofuels have the potential to increase export
incomes, increase farmers’ incomes and to obtain
environmental benefits (IEA 2007). Because of these social,
economic and environmental opportunities, global fuels
production has rapidly grown since several countries are using
policy instruments to promote biofuels. However, recent
research shows potential impacts of biofuels on food security
(FAO 2008). In addition, biofuels represent a higher financial
risk for rural poor population and it can lead to an increased
pressure on natural resources and biodiversity conservation
areas (Greiler 2007).
Inter-American Development Bank
“…Colombia is the second largest biofuels
producer in Latin America, after Brazil.
However, there is a significant technology
gap that needs to be closed in order to
Colombia to transform itself from a biofuel
producer into a bioenergy world leader…”
“… Biofuels industry can produce significant
byproducts or positive externalities, such as:
Energy (cogeneration with sugar cane
bagasse), carbon credits (for fuel
substitution, waste water and vinasse
treatment), animal food (soybean
processing residues, beet or yucca), jobs in
rural areas and create new opportunities to
regions that are under the scourge of illicit
crops production and guerrilla activity …”
increase national energy security and to export an additional product to the global market.
The construction of biofuels value chains has the additional advantage of generating jobs
at various education levels, from field personnel with low educational level to professionals
in different technical, administrative, legal, management, etc. fields.
Inter-American Development Bank
“… With the recent announcements of substituting 20% of gasoline in
the next 20 years, and the Free Trade Agreement currently under
discussion in United States and Colombia Congress, the possibilities of
exporting biofuels from Colombia to the United States, duty-free, is a
huge opportunity and challenge. Thus, with the vast lands availability,
excluding deforestation, livestock lands or crops substitution for
human consumption, there is a great potential for biofuels production
expansion in Colombia. The technical support that the Bank can
provide to Colombia government will be essential to identify
sustainable use means and energy generation, as well as sustainable
biofuels production …”
Particularly in tropical countries like Colombia,
social and environmental impacts associated to
deforestation are a critical aspect (Monahan
2008). On the other hand, tropical regions offer
adequate conditions for biofuels production
due to high yields and multiple harvests per
year. If unusable areas are available, biofuels
production may be a feasible option to
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Biofuels Sustainability in Colombia – Chapter I: Introduction
Some certification schemes are being developed, aiming to promote biofuels, while
maintaining environmental and socioeconomic impacts within certain limits. Currently,
several parallel certification schemes are being developed:
UK Renewable Transportation Fuel Obligation RTFO (Dehue, Hamelinck et al. 2007)
Swiss mineral oil tax redemption for sustainable biofuels (Leuenberger and Huber-
Hotz 2006)
EU directive for renewable energy (EU-Commission 2008)
Californian low carbon fuel standard (CARB 2009)
Roundtable for Sustainable Biofuels (RSB 2008)
This abundance of certification schemes creates an unclear situation for producers, and it
weakens society acceptance towards sustainable actions. However, for biofuel-producing
countries like Colombia, it is important to be consistent with most international regulations
in order to promote export markets.
It is also important to construct national regulations for biofuels production and
sustainable use with the aim of minimizing adverse effects and maximize the positive
potential of future biofuels use for Colombia.
For this, UNEP (UNEP, 2009), based on different Biofuels studies, recommends to assess
not only Climate Change, but also impacts as eutrophication and acidification, indirect
effects in land use change, among others (later described in methodology part),
throughout Biofuels life cycle.
2.2 About the authors
This study was financed by the IDB through the nonrefundable Technical Cooperation
Agreement N° ATN/JC-10826-CO and ATN/JF-10827-CO signed with the Ministry of
Mining and Energy, who acts as beneficiary. It was conducted by the Consortium formed
by Swiss Federal Laboratories for Technology and Materials Science – EMPA –
(www.empa.ch), National Center for Cleaner Production and Environmental Technologies
of Colombia – CNPMLTA- (www.cnpml.org), and Pontifical Bolivarian University in
Colombia –UPB- (www.upb.edu.co). Associated to these entities, in this participated
different expert consultants on specific issues, both national and international.
Dr. Rainer Zah was the Scientific Study Director, EMPA, who coordinated technical work
team activities. The Project Coordinator and Consortium Representative was the Engineer
Carlos Arango, Executive Director of National Center for Cleaner Production.
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Biofuels Sustainability in Colombia – Chapter I: Introduction
We thank Colombia Government representatives, who led by the Ministry of Mining and
Energy, made important comments and contributions to the study: especially to the
professionals of the Directorate of Hydrocarbons of the Ministry of Mining and Energy,
Ministry of Agriculture, Ministry of Environment, Housing and Territorial Development, and
National Planning Department.
We also take into account the discussions and contributions made by different
stakeholders during carious meetings and communications plus among them we highlight:
Association of Sugar cane Cultivators of Colombia, Sugar Cane Research Centre in
Colombia, Cenicaña, Oil Palm Cultivators National Federation, Oil Palm Research Centre
Corporation, National Federation of Colombia and Ecopetrol Biofuels.
However, the lead authors (Consortium), maintain the main responsibility in the event of an
error and its content.
2.3 Objectives of the Study
The project aims to assess production chain sustainability, sugarcane and oil palm biofuels
distribution and use compared to equivalent fossil fuel in Colombia, to demonstrate its
favorability and accurately understand their limits.
The project follows a systematic approach to achieve the proposed goals:
Figure 1: The five components of the study
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Biofuels Sustainability in Colombia – Chapter I: Introduction
In a first step, the environmental impacts on the entire biofuels life cycle were evaluated by
using Life Cycle Analysis –LCA.
In the next step, natural and infrastructure preconditions for biofuels production in
Colombia were evaluated, supported in Geographic Information Systems (GIS), combined
with knowledge related to current agriculture practices and processing technologies, to
define and characterize biofuels current production systems in Colombia. Likewise a
prospective vision of socio-environmental and technology conditions was developed to
expand production.
Environmental and socio-economic performance of biofuels production systems was
integrated and evaluated using sustainability analysis, and compliance with national and
international references and frameworks was verified.
An internet-based free access tool was developed to allow stakeholders to individually
model relevant stages of biofuels value chains and to access to the results of this study.
2.4 Methodology
In this Life Cycle Analysis study, after analyzing the life cycle inventory and getting the
inventory associates to the functional unit, the data are classified into environmental
impact categories through different methodologies elaborated by the scientific
community, which are classified as Single Point, Mid points and End points. Single point
results are widely presented in Chapter 2, Midpoint and Endpoint assessment results are
presented in Chapter 2 Annex.
Single Point: This methodology was used to assess only one impact category (e.g.
Ecological Footprint, Cumulative Energy Demand, Water Footprint among others) for this
study it was specifically used the related category related to Cumulative Energy Demand
(CED) and Climate Change, which by themselves have not sufficient basis for assessing
environmental impairment, however, Climate Change Category if highly important for its
global reach. These methods use characterization factors, which in the case of Climate
Change is known as Global Warming Potential (GWP) that convert greenhouse gases that
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Biofuels Sustainability in Colombia – Chapter I: Introduction
has been obtained in the Life Cycle Inventory in CO2 equivalent kilograms. (To see
formulas and factors, see chapter LCA annexes).
2.5 Framework
This study takes place at potential and already established sites. Selected sites are
presented in the following map.
Figure 2: Geographic location of production areas and processing sites
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Biofuels Sustainability in Colombia – Chapter I: Introduction
For sugar cane, information of crops associated to four of the existing distilleries in the
Cauca River Geographic Valley was considered.
For oil palm, crops associated to four biodiesel plants were studied, covering 3 of the four
study areas.
For both raw materials, sugar cane and oil palm, average conditions, optimal production
(best case, 20% more productive per region) and dreadful production (worst case, 20% less
productive per region) were evaluated.
Oil Palm
The main oil palm producers in the world are Indonesia and Malaysia, which in 2008
represented the 75,6% of the total oil palm planted area in the world. Colombia
participates with 1,9% of world total planted area, as shown in Table 1.
Table 1: Area of oil palm production in the world (in thousands hectares/year)
Country 2004 2005 2006 2007 2008
Part. 2008
(%)
Indonesia 3.320 3.690 4.110 4.540 4.980 42,4
Malaysia 3.402 3.552 3.678 3.741 3.900 33,2
Thailand 298 316 340 410 450 3,8
Nigeria 367 370 378 390 405 3,4
Colombia 153 164 178 200 221 1,9
Ecuador 176 190 198 203 207 1,8
Ivory Coast 152 160 167 208 215 1,8
Papúa New Guinea 85 98 92 100 17 1
Others 667 696 730 954 1.246 10,6
Total 8.620 9.226 9.871 10.746 11.741 100
Variation 7,0 7,0 8,9 9,3
Source: FEDEPALMA. Oil World Annual 2009.
Moreover, the highest crude palm oil yields per hectare in the world are in Malaysia with
4,55 ton of crude oil per hectare, while in Colombia is 3,51 ton of crude oil per hectare1.
Palm oil production in Colombia is presented in the northern, central, eastern and western
zones.
1 FEDEPALMA. Oil World Annual 2009. Figure 22. Countries with the highest crude palm oil yield in 2008 (in
tons per hectare). Page 121.
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Biofuels Sustainability in Colombia – Chapter I: Introduction
Eastern area has 22 extraction plants in the departments of Caquetá, Casanare and
Meta.
At north, there are 14 extraction plants in Antioquia, Bolivar, Cesar and Magdalena.
In the central area, there are 6 extraction plants in Cesar, North of Santander and
Santander.
In the west, there are 7 extraction plants in the department of Nariño.
For each zone, yields are different, but Colombia has the following indicators:
Table 2: Annual production yields by zone (in tons per hectare)
Product Zones 2004 2005 2006 2007 2008 Variation (%)
Oil palm fruit
Eastern 19,56 18,44 19,29 16,33 14,76 -9,6
North 21,44 20,73 18,48 17,05 15,15 -11,1
Central 20,42 20,85 21,71 22,40 23,48 4,8
Western 19,47 19,07 19,36 15,45 12,98 -16,0
TOTAL 20,28 19,79 19,41 17,94 16,86 -6,0
Variation (%) 15,4 -2,4 -1,9 -7,6 -6,0
Crude palm oil
Eastern 3,95 3,91 3,99 3,39 3,08 -15
North 4,39 4,26 3,87 3,51 3,2 -9,4
Central 4,15 4,29 4,45 4,57 4,98 2,8
Western 3,93 3,92 3,59 3,02 2,24 -15,9
TOTAL 4,11 4,11 4,02 3,67 3,51 -8,6
Variation (%) 15,4 -2,4 -1,9 -7,6 -6,0
Palm kernel
Eastern 0,88 0,92 0,93 0,78 0,72 -16,5
North 1,03 1,05 0,90 0,82 0,72 -9,7
Central 1,04 1,00 0,97 1,09 1,14 12,0
Western 0,80 0,83 0,74 0,63 0,51 -14,3
TOTAL 0,95 0,97 0,91 0,85 0,80 -6,5
Variation (%) 17,6 1,5 -6,0 -6,5 -5,2
Source: FEDEPALMA. Oil World Annual 2009.
Palm oil has different uses in the production of basic consumption goods and supplies for
other companies such as: edible liquid oil, butter, frying fat, baking grease, confectionery
fat, ice cream fat, soap, vanapasti and concentrated food mixtures.
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Biofuels Sustainability in Colombia – Chapter I: Introduction
It has also application for the oleo chemical industry, as raw material for fatty alcohols,
emulsifiers, methyl esters, glycerol and as finished product for fuels, lubricants, water paint
and surfactants.2
Figure 3: Global ethanol production development, substrates distinction, in thousand million
liters. Source: FAO/OECD agricultural Outlook 2009
Sugar cane is a perennial grass from South Asia. Nowadays, it is cultivated in all tropical
regions. Major sugar cane producers are Brazil and India with an approximate annual
production of 650 and 350 million tons, respectively (FAOSTAT, 2009). Colombia is the
seventh largest producer, with an approximate annual production of 40 million tons.
About half of this amount is used to produce sugar and ethanol (20.3 million tons in 2010-
Asocaña (2011)). Most of the cultivated cane is used for sugar production, especially in
China and India, which manly produce sugar for domestic market. The main sugar cane
ethanol producer is Brazil, where half of sugar cane production is for ethanol production.
Colombia is the first country in terms of agricultural productivity (see Figure 4).
2 FEDEPALMA. Oil World Annual 2009. Page 39.
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Biofuels Sustainability in Colombia – Chapter I: Introduction
Figure 4: World sugar productivity (sugar ton Average per hectare-year). Source: LMC
International, 2008
Nowadays, Colombia is the second largest sugar cane and bioethanol producer in Latin
America after Brazil.
Table 3: Sugar cane world production
No Country Total cane production [tons/year]
1 Brazil 648.921.280
2 India 348.187.900
3 China 124.917.502
4 Thailand 73.501.610
5 Pakistan 63.920.000
6 Mexico 51.106.900
7 Colombia 38.500.000
8 Australia 33.973.000
9 Argentina 29.950.000
10 United States 27.603.000
Source: www.finagro.com.co based on FAO Statistics Division data.
Cane industry for sugar production in Colombia, is traditionally concentrated in the Cauca
River Geographic Valley, in areas comprising the departments of Cauca, Valle del Cauca
and Risaralda. In this tropical floodplain up to 1000 m elevation, production is possible
throughout the year, generating high yields per area unit. However, due to growing
demand, new sugar cane production developments are emerging in other regions (for
sugar cane and/or ethanol production).
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Biofuels Sustainability in Colombia – Chapter I: Introduction
3 References
Asocaña (2011). Informe Anual 2009 - 2010. Asocaña. Cali, Colombia.
CARB (2009). Californian Low Carbon Fuel Standard. Resolution 09-31. S. o. California.
Sacramento: 19.
Dehue, B., C. Hamelinck, et al. (2007). sustainability reporting within the RTFO: Framework
Report. RTFO, Ecofys: 83.
EU-Commission (2008). "Directive 2008/30/EC of the European Parliament and of the
Council on the promotion of the use of energy from renewable sources." Official
Journal of the European Union: 61.
FAO (2008). "The State of Food Security in the World 2008."
FAOSTAT (2009). Agriculture Data, Food and Agriculture Organization of the United
Nations. Sugar cane.
Greiler, Y. (2007). Biofuels - Opportunities or Thread for the Poor? Berne, Swiss Agency for
Development and Cooperation SDC - Natural Resources and Environment Division:
10.
IEA (2007). Potential Contribution of Bioenergy to the World's Future Energy Demand.
Paris, IEA Bioenergy: 12.
Leuenberger, M. and A. Huber-Hotz (2006). Botschaft zur Änderung des
Mineralölsteuergesetzes. Bern: 30.
Monahan, J. (2008). Afro-Colombians fight biodiesel producers BBC News. Bogota.
Rosa, L. et al. Biofuel contribution to mitigate fossil fuel CO2emissions: Comparing sugar
cane ethanol in Brazil with corn ethanol and discussing land use for food production
and deforestation. http://jrse.aip.org/resource/1/jrsebh/v1/i3/p033111_s1
RSB (2008). Roundtable on Sustainable Biofuels: Global Principles and criteria for
sustainable biofuels production. Version Zero. Lausanne, EPFL: 12.
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Biofuels Sustainability in Colombia – Chapter I: Introduction
UNEP (2009). Assessing biofuels: towards sustainable production and use of resources.
Obtain of http://www.unep.org/resourcepanel/Publications/AssessingBiofuels/tabid
/56055/Default.aspx. Pag 31.