what’s driving biofuels growth? promoting what are biofuels? · climate change facts and trends...

Whatrsquos driving biofuels growthBiofuels have existed for over a hundred years ndash Henry Ford designed his Model T to run on bioethanol ndash but they have mostly been unable to compete with fuels derived from crude oil New government energy policies subsidies and tax exemptions are now stimulating biofuels production which has doubled since 1998 and is predicted to double again by 20115 There are a number of reasons why governments favour biofuels

Combating climate change

Transport is a signifcant contributor to

climate change accounting for around

25 of man-made greenhouse gas

emissions globally

In principle the use of biofuels can help

reduce transportrsquos impact on climate

change This is because the plants used

to make the fuels absorb carbon dioxide

(CO2) ndash the most important greenhouse

gas ndash as they grow The gas is later

released when the biofuels are used

However biofuels are not carbon neutral

It takes energy to grow and harvest the

plants and to process and distribute

biofuels The entire process emits CO2

and fertilisers emit nitrous oxide (N2O) a

powerful greenhouse gas (see graphic 4)

The amount of energy needed to make

different biofuels varies considerably This

makes it vital to take the entire production

process into account when assessing

the potential of biofuels to help reduce

transport CO2 emissions Read more about

CO2 performance overleaf

Technology and innovation

Unlike other renewable fuels such

as hydrogen the infrastructure to

manufacture and distribute biofuels is in

place today Biofuels are also compatible

with todayrsquos vehicles and power

generation technology

In 2006 $26 billion6 was invested in

biofuels The International Energy Agency

(IEA)7 estimates that between 2005 and

2030 it will cost $160 billion to expand

biofuel production to fuel 4 of global

road transport and $225 billion to fuel 7

Energy security

Global energy demands are increasing

rapidly The worldrsquos population has

doubled in the last four decades ndash to

around 66 billion in 2004 ndash and is

expected to exceed 9 billion8 by 2050

Rapid development particularly in China

and India is increasing wealth and this is

boosting demands for energy and transport

There were around 900 million vehicles

on the road in 2000 but this is forecast to

increase to over 2 billion by 20509

Fossil fuels (oil coal and gas) are

expected to be the dominant source of

energy for the foreseeable future But

production has already peaked in many

major oil-producing countries and new

developments are increasingly located in

environmentally challenging and politically

unstable parts of the world This has

resulted in high oil prices which the IEA

predicts will remain between $48ndash$62

until 203010 Some analysts predict 2030

prices could be as high as $10011 High oil

prices hit developing countries the hardest

ndash some spend six times as much on fuel as

on health12

Biofuels are seen by governments as a

secure source of energy and a way to

reduce reliance on imported fossil fuels

Brazil has replaced around 1513 of its

petrol consumption with bioethanol

according to the IEA The Washington Post puts this fgure at 4014

Rural development

Biofuels can help boost farm incomes

Globalisation and the industrialisation of

farming have reduced the price farmers

get for their produce Demand for the

agricultural commodities used to make

biofuels is reversing this trend In the

developed world this is creating jobs

and reducing the need for subsidies

for farmers

[4] biofuel co2 lifecYcle iMPAcTS

CO2

Fertilising

Harvesting Transporting

Processing

Transporting

Use

Growing

CO2

CO2 CO2

CO2

CO2

CO2

Energy

EnergyEnergy

EnergyEnergy

Energy

N2O

[2] fiRST-GeNeRATioN biofuelS bioDieSel Production process

Soybean oil

Diesel mix

Palm oil Rapeseed oil

Methyl esters

Transesterifcation

[1] fiRST-GeNeRATioN biofuelS bioeThANol Production process

Sugarcane

Sugar

Petrol mix

Corn

Starch

bioethanol

fermentation

biomass to liquid production process

Petrol mixDiesel mix

celluose ethanol production process

[3] SecoND-GeNeRATioN biofuelS

biochemical treatment

enzymatic hydrolysis

Sugar

fermentation

cellulose ethanol

Thermochemical treatmentgasifcation

Synthesis gas

Synthesis

hydrocarbons

Biomass including agricultural

residues

Special crops such as fast growing woody plants

Changes in government energy policies

are accelerating demand for liquid or

gaseous biofuels used in transport (see

facing page)

Transport biofuels can be distributed using

existing technology and used in todayrsquos

vehicles without modifcation when mixed

with petrol or diesel or in adapted vehicles

if used neat or in high concentrations

There are many different biofuels made

using a variety of production processes

and feedstocks There are two categories

First-generation biofuels made from

food crops These are widely used today

Second-generation biofuels made from

non-food crops These are in development

and will not be widely commercially

available for at least fve to ten years

First-generation biofuels

First-generation biofuels are made from

food crops including wheat rapeseed

corn soya and sugarcane

There are two main types of frst-generation

biofuels now in commercial use

Bioethanol Bioethanol is made by fermenting sugars

produced by plants (similar to beer and

wine production) Bioethanol accounts for

around 851 of global biofuel production

and is mainly produced from corn and

sugarcane

Bioethanol is usually blended with petrol ndash

todayrsquos fuel standards allow bioethanol to

be mixed with petrol in volumes up to 5

in Europe and 10 in the USA Bioethanol

can be used at higher concentrations

or neat For example in Brazil all petrol

contains at least 20ndash25 bioethanol and

many vehicles have been adapted to run

on 100 bioethanol

Bioethanol has a lower energy density

than petrol This makes it about 402 less

fuel effcient

What are biofuelsBiofuels are made by processing food crops and other plants animal products or wastes (collectively known as biomass) These can be burnt to generate electricity or heat and are increasingly being used as transport fuels

Sources of information1 International Energy Agency World Energy Outlook 2006

2 International Energy Agency httpieaorgtextbasework2004eswg21_NCVpdf

3 International Energy Agency World Energy Outlook 2006

4 httpwwwbiodieselorgresourcesfuelfactsheetsstandards_and_warrantiesshtm

5 United Nations Sustainable Bioenergy A Framework for Decision Makers 2007

6 United Nations Environment Programme Global Trends in Sustainable Energy Investment 2007


8 United Nations World Population to 2300 2004

9 World Business Council for Sustainable Development Energy amp Climate Change Facts and Trends to 2050 2004


11 Energy Information Administration Annual Energy Outlook 2007



14 Washington Post 200807

15 International Energy Agency Biofuels for Transport ndash An International Perspective 2004

16 Reijinders L amp Huijbrechts MAJ 2006

17 Delft Hydraulics

18 Based on Food and Agriculture Organization data available at wwwwaterfootprintorg


20 Economist 23607

21 International Monetary Fund World Economic Report April 2007

22 Organisation for Economic Co-operation and DevelopmentFood and Agriculture Organization Agricultural Outlook 2007-2016

23 Food and Agriculture Organization State of Food Insecurity in the World 2006

24 International Energy Agency Biofuels For Transport An International Perspective 2004

25 Reijinders L amp Huijbrechts MAJ (2006) and Delft Hydraulics

Rainforest Deforestation Impacts [7] graphic

Journal of Cleaner Production 2006 Palm Oil and the Emission of Carbon-Based Greenhouse Gases Reijinders L amp Huijbrechts MAJ

Journal of Tropical Forest Science 2005 An Assessment of Changes in Biomass Carbon Stocks in Tree Crops and Forests in Malaysia Henson IE

Oil World Annual 2007 ISTA Mielke GmbH

Intergovernmental Panel on Climate Change Guidelines for National Greenhouse Gas Inventories Volume 2 Energy 2006

Unilever NVWeena 455 PO Box 7603000 DK RotterdamThe NetherlandsT +31 (0)10 217 4000F +31 (0)10 217 4798

Commercial Register RotterdamNumber 24051830

Unilever PLCPO Box 68100 Victoria Embankment London EC4P 4BQ United KingdomT +44 (0)20 7822 5252F +44 (0)20 7822 5951

Unilever PLC registered offceUnilever PLCPort SunlightWirralMerseyside CH62 4ZDUnited Kingdom

Registered in England and WalesCompany Number 41424

wwwunilevercom

Writing and consultancy Context

Design and production Red Letter Design

Illustrations (Graphics 4 and 7) KJA-artistscom

Printing Scanplus (on paper made from responsibly managed forests)

Biodiesel Biodiesel is a blend of methyl esters (a type

of biofuel) and diesel Methyl esters are

produced by a chemical reaction between a

vegetable oil and an alcohol They are made

from rapeseed (primarily) palm oil and

soybean oil and account for around 153

of global biofuel production

Biodiesel is the most commonly used

biofuel in Europe where fuel standards

allow 5 blends USA fuel standards allow

blends of up to 204 Specially designed

vehicles can run on 100 biodiesel

Second-generation biofuels

Second-generation biofuels are made from

non-food feedstocks such as wood and

straw The production process uses the

whole plant rather than just the plant

starches or sugars that are used to make

frst-generation biofuels This means waste

materials from agricultural and forestry can

be used as feedstocks

There are a number of second-generation

biofuels under development These include

cellulose ethanol which is produced from

straw using enzymes and can be mixed

with petrol biomass-to-liquid fuel which

is made from wood feedstocks and can be

blended with diesel and biomethane a

gas made from organic material (such as

manure and straw) which can be used in

modifed petrol and diesel engines

ral

defo

rest

atio

nde

velo

pmen

t en

ergy

se

food

s

l

hor

and

t

-

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curit

use

y C

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O

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2

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sa

t

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ora

hig

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rices

foo

dag

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b

hig

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2 sa

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trad

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tions

land

-use

cha

wru

PRoMoTiNG SuSTAiNAble biofuelS

e






emissions globally


































Energy security


























on health12







Rural development









for farmers


CO2

Fertilising


Processing

Transporting

Use

Growing

CO2

CO2 CO2

CO2

CO2

CO2

Energy

EnergyEnergy

EnergyEnergy

Energy

N2O

defo

rest

atio

n la

nd-u

se ch

ange

hig

h fo

od p

rices

land

-use

cha

e h

igh

food

pric

es f

ood

shor

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nd a

vaila

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y

food

shortag

es land ava

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trad

e dist

or

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rura

l dev

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men

t en

ergy

secu

rity

CO2 savi

ngs sust

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stor

tions

wat

er sh

orta

ges

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versi

ty lo

ss

ener

gy s

ecur

ity C

O2

sav

ngs

sus

tain

abilit

y st

anda

rds

inno

vatio

ns

















17 Delft Hydraulics



20 Economist 23607
















wwwunilevercom






What are biofuels Biofuels are made by processing food crops and other plants animal products or wastes (collectively known as biomass) These can be burnt to generate electricity or heat and are increasingly being used as transport fuels




facing page)


























sugarcane









on 100 bioethanol



fuel effcient


Sugarcane Corn

Starch

Sugar

fermentation

bioethanol

Petrol mix












Soybean oil Palm oil Rapeseed oil

Transesterifcation

Methyl esters













biomass to liquid celluose ethanol production process production process

Biomass including Special crops such agricultural as fast growing

residues woody plants

Thermochemical biochemical treatment treatment gasifcation enzymatic hydrolysis

Synthesis gas Sugar

Synthesis fermentation

hydrocarbons cellulose ethanol

Diesel mix Petrol mix











Diesel mix


Soybean oil

Diesel mix


Methyl esters

Transesterifcation


Sugarcane

Sugar

Petrol mix

Corn

Starch

bioethanol

fermentation







Sugar

fermentation

cellulose ethanol


Synthesis gas

Synthesis

hydrocarbons


residues





facing page)


























sugarcane









on 100 bioethanol



fuel effcient

defo

rest

atio

n la

nd-u

se ch

ange

hig

h fo

od p

rices

land

-use

cha

e h

igh

food

pric

es f

ood

shor

tage

s la

nd a

vaila

bilit

y

food

shortag

es land ava

ilability

trad

e dist

or

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rura

l dev

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men

t en

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secu

rity

CO2 savi

ngs sust

ainab

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y sta

ndar

ds

trad

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stor

tions

wat

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orta

ges

biodi

versi

ty lo

ss

ener

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ecur

ity C

O2

sav

ngs

sus

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abilit

y st

anda

rds

inno

vatio

ns


















17 Delft Hydraulics



20 Economist 23607
















wwwunilevercom





































Whatrsquos driving biofuels growth Biofuels have existed for over a hundred years ndash Henry Ford designed his Model T to run on bioethanol ndash but they have mostly been unable to compete with fuels derived from crude oil New government energy policies subsidies and tax exemptions are now stimulating biofuels production which has doubled since 1998 and is predicted to double again by 20115 There are a number of reasons why governments favour biofuels


Fertilising

CO2

CO2

N2O Growing

Energy





emissions globally
























Processing


CO2

CO2 CO2

Energy

Energy Energy











Energy security



















Transporting

CO2 Use

CO2

Energy

Energy








on health12







Rural development









for farmers

Sources FOLicht UN

[10] biofuelS eNeRGY DeliveRY(x 1000 litres of diesel equivalent per hectare)

Source FNR

1013 25

4054

Biomethane(energy crops)

Biomass- to-liquid

Bioethanol(wheat)

Biodiesel(rapeseed oil)

Bioethanol(sugar cane)

Sustainability criteria

The social and environmental impacts

of biofuels vary considerably

depending on the type of feedstock

used where it is grown and the processes

needed to turn it into biofuels

Sustainability criteria are required to provide

confdence in the labelling and identifcation

of specifc types of biofuel The criteria should

[8] PRoJecTeD GRoWTh iN fooD coNSuMPTioN

Source OECD-FAO 2006

-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140

150 Oil and oilseed meals

SugarMeat

CerealsDairy

1st generation biofuel 2nd generation biofuel

cover the lifecycle CO2 emissions and impacts

on natural habitats as well as socio-economic

factors such as the availability of food for the

local population where feedstocks are produced

In 2007 the Dutch Government announced

sustainability criteria and has proposed a system

to enable traceability of feedstocks by 2020

The UK Government has proposed that 80 of

biofuels meet sustainability standards including

CO2 reduction requirements by 2010ndash11 The

EU is developing sustainability criteria

Business is also developing sustainability

standards through initiatives such as the

Roundtable on Sustainable Palm Oil (chaired by

Unilever) and the Roundtable on Sustainable

Biofuels The latter aims to launch draft

sustainability standards in early 2008

90

2015

2015

[9] PRoPoRTioN of cRoP uSeD foR biofuelS ()

Source The German Marshall Fund of the USA

Brazil sugarcane USA corn

EU rapeseedEU cereals

1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0

50USATARGET Biofuel as of transport fuel

2030 30 BIOETHANOL PRODUCTION (2005)

11800000 tonnes

USA accounts for 15 of global biodiesel production

ChinaTARGET Biofuel as of transport fuel


800000 tonnes

China has imposed a moratorium on projects making bioethanol fuel from corn and other basic food crops

BrazilTARGET Biofuel as of transport fuel


12900000 tonnes

IndiaTARGET Biofuel as of transport fuel


240000 tonnes

EUTARGET Biofuel as of transport fuel


730000 tonnes

Europe accounts for 85 of global biodiesel production

Reduction in US land used for food crops pushes production elsewhere potentially causing deforestation

Brazil sugarcane and soybean

European demand for biodiesel feedstock raises palm oil price causing deforestation

Europe doesnrsquot have enough land to meet its biofuels targets and will be dependent on imports

USA corn wheat and soybean

Bioethanol production has pushed up corn prices sparking protests in Mexico

The worldrsquos poorest are already being affected by higher food prices

98 of Indonesiarsquos natural rainforest will be degraded or gone by 2022

KEY

Issues with food security

Issues with GHGs

Issues with sustainability

Issues with trade

Areas of tropical rainforest

Trade

Unintended consequences

Feedstocks

Europe rapeseed oil and wheat

The unilever positionUnilever supports sustainable biofuels that deliver social and environmental benefts across their entire lifecycle

Unilever supports renewable energy

initiatives that deliver benefts on a lifecycle

basis helping to combat climate change and

reduce dependency on fossil fuels Around

17 of the energy we use for our operations

comes from renewable sources

Why the issue matters to Unilever

Two-thirds of the raw materials we use

come from agriculture These materials are

essential to our business and Unilever has

a clear interest in how they are grown and

in securing future supplies That is why

we have worked to improve the social and

environmental standards of agriculture

for more than a decade Our sustainable

agriculture programmes include palm oil

oilseed rape sunfowers spinach tomatoes

and tea We are also a member of several

sustainability initiatives including the

Roundtable on Sustainable Palm Oil

Demand for biofuels feedstock has already

reduced the availability of raw materials and

driven up prices We are concerned that

increased demand will destabilise world

food supply and undermine sustainable

agriculture Use of vegetable oils such as

rapeseed oil for biofuels could also create

shortages driving consumers to less healthy

animal fats

Lifecycle analysis

Unilever believes that individual biofuels

should be examined carefully to ensure

that the unintended environmental

(deforestation and biodiversity loss) and

socio-economic (food security) consequences

do not undermine the positive impacts

Biofuels must also be evaluated across their

lifecycle to achieve genuine greenhouse gas

(GHG) reductions

Biomass is a valuable resource Using it

to generate heat and electricity is a more

effcient and cost-effective way of reducing

CO2 emissions than using it to make

transport fuels24 New vehicle technologies

such as electric and hybrid and more

effcient engines offer signifcant scope

to reduce greenhouse gas emissions

from transport


Unilever believes that some frst-generation

biofuels are neither environmentally effcient

nor cost-effective ways to reduce emissions

Many studies have shown that several frst-

generation biofuels have poor performance

with regard to reducing GHG emissions and

dependency on fossil fuels Some even cause

more GHG emissions than the fossil fuels

they replace25

We are concerned that the use of valuable

food crops for energy purposes will increase

pressure on ecosystems and biodiversity

Deforestation particularly to make way for

palm oil and soya beans could lead to the

devastation of the last remaining rainforests

in Borneo and the Amazon region


Unilever believes that the development

of second-generation biofuels that donrsquot

compete with food crops and have low

carbon emissions is essential The mainstream

market introduction of second-generation

biofuels would provide a strong incentive

for the application of renewable energy

technologies while minimising the negative

repercussions on food markets and food

security Unilever believes there is a strong

case for government and business investment

in new technologies and further research on

the sustainable use of biomass Support for

second-generation biofuels could be

accelerated through

n RampD facilitation and technology transfer

n Tax exemption andor subsidies

n Phasing out support for poor performing

frst-generation biofuels

Second-generation biofuels should be

required to achieve at least 50 GHG

savings compared to fossil fuels

Assessing sustainability

We believe governments worldwide have

the responsibility to subject their biofuel

policies to a full impact assessment These

assessments should cover environmental

social and economic impacts from the

regions of production to the end use

Policies which aim to reduce GHG emissions

should contain full lifecycle assessments for

individual biofuels This should ensure that

change in land use is included in the carbon

balance We propose that government

targets should be based on CO2 reductions

rather than volume as well as on availability

of feedstocks

Sustainability standards

Unilever believes sustainability criteria should

be introduced for the use of biomass within

energy programmes These should include

criteria at the production level as well as

criteria at a macro-level such as overall GHG

balance and energy effciency food security

and the protection of biodiversity and

ecosystems The use of biomass for energy

should not be stimulated by government

programmes without the application of

transparent sustainability criteria Proceeding

without these safeguards will risk unintended

consequences that could result in worse

climate change impacts natural habitat loss

and disruption of staple food supplies

1500 and 4600 litres of water18 to produce

just one litre of bioethanol There are already

water shortages in many regions and population

growth and climate change will further increase

competition for clean water and increase its cost

Land-use and food availability

The worldrsquos population is rapidly

increasing and is expected to exceed

9 billion19 by 2050 To feed this

growing population will require 50 more food

in the next 20 years

While higher food prices will beneft some

producers they negatively impact the economies

of food-importing countries Poor people who

spend a large proportion of their income on

food will suffer disproportionately compared

with the wealthy Mexico has already experienced

some of the negative consequences of the

growing US bioethanol industry In 2006

Mexicans took to the streets to protest at the

high price of tortillas (a corn bread staple) made

more expensive by demand for maize from USA

bioethanol producers

In 2007 the UN World Food Programme which

fghts famine in Africa announced that it could

no longer afford to maintain its current level of

support due to high commodity prices Its food

purchasing costs rose by almost 50 between

2002 and 2007 854 million23 people suffer from

hunger and this is increasing by an average of

4 million a year at current trends Increasing

food prices will mean that even more people will

depend on food aid

Land is a fnite resource

Some biofuels are much more land

effcient than others because of

higher feedstock yields per hectare and

more effcient production processes (see graphic

10) If we are to feed a growing population using

the fnite amount of agricultural land available

it is vital that governments choose to promote

biofuels that deliver the maximum possible

energy per hectare


Bioethanol and biodiesel made from non-tropical

feedstocks (rape wheat and corn) are not land

effcient It would require a minimum of 26 of

the worldrsquos arable land to run just 20 of its cars

on these fuels

[11] GlobAl iMPAcTS AND uNiNTeNDeD coNSeQueNceS

In the past farmers have increased production

to meet growing demands But they are now

fnding it hard to keep up ndash in three of the four

years20 between 2003 and 2007 demand for

grains to feed people and livestock outstripped

supply As countries such as China and India

develop more people can afford meat and dairy

products This is driving up demand for agricultural

commodities The booming biofuels industry is

contributing further to this escalation in demand

First-generation biofuels compete with food

crops leading to rising food prices In future this

could jeopardise the worldrsquos ability to feed its

growing population Many other industries also

rely on raw materials like palm oil which are

being diverted to biofuel production

Increased demand higher prices

The biofuels industry is using an

increasing share of the worldrsquos food

crops (see graphic 9) which is driving

up prices Global food prices rose by 1021 in

2006 due to an increase in corn wheat and soya

bean oil prices Prices are predicted to rise by

20ndash5022 over the next decade (compared with

average levels over the last ten years)

Demand for biofuel feedstock increases prices

of other crops For example high demand for

corn to make bioethanol means US farmers are

producing less soya and wheat which is boosting

prices for those crops Biofuels are also raising

meat and dairy prices by pushing up the price of

animal feed

Bioethanol and biodiesel made from palm oil

and sugarcane are more land effcient but

there is limited potential to expand production

of the feedstocks without causing signifcant

environmental damage through loss of natural

forests and grasslands


To run 20 of the worldrsquos vehicles on second-

generation biofuels would require 7 of its

arable land The feedstocks for these fuels can

also be grown on other types of land such as

pastures and forests

Trade

Even at todayrsquos high oil prices most

biofuels cannot compete on cost with

petrol and diesel Biofuel producers

rely on government subsidies for their profts

Governments are beginning to set mandatory

targets to stimulate investment and demand

for biofuels This is further boosting the price

of agricultural commodities and contributing to

trade distortions

In Brazil a well-established biofuel industry and

low production costs means Brazilian bioethanol

is cost competitive with petrol and diesel The

EU and the USA have set trade barriers to

protect domestic biofuel industries from cheap

Brazilian bioethanol imports This is encouraging

the development of less cost-effective and less

sustainable biofuels This makes it more diffcult

for those developing countries that are better

suited to biofuels production to compete on

world markets

Many governments have proposed mandatory

biofuel targets that exceed their countryrsquos

production and land capacity In future this

could make these countries dependent on

foreign imports which will undermine their

energy security Commodity prices will continue

to rise as competition increases for limited

global supplies

unintended consequences Biofuels could help boost rural development while reducing CO2 emissions and reliance on crude oil But if biofuel strategies are not fully evaluated they could do more harm than good stimulating poor performing biofuels and stifing innovation

CO2 performance

Biofuels can help fght climate change

but CO2 savings vary signifcantly

between fuels (see graphic 5)

This is because the amount of energy needed

to produce different feedstocks (type of

crop and where it is grown) and to process

them into fuels varies considerably For

example using US corn it takes 06ndash08

litres of fossil fuels to produce an amount of

bioethanol equivalent to 1 litre of mineral

oil whereas it takes less than 01 litres of

fossil fuels to produce the same amount of

bioethanol using Brazilian sugarcane15

[5] co2 ReDucTioN of biofuelS coMPAReD WiTh foSSil fuelS ()

Biomass to liquid Bioethanol Fossil (2nd generation) (corn) fuel

Bioethanol USA

(wheat) EU 100

87 100

lt10 30

40-60

10

Bioethanol Biodiesel (sugarcane) (rapeseed)

Brazil EU

Source IEA Energy Technology Perspective 2006

Second-generation biofuels produce even

less CO2 as their feedstocks require fewer

agricultural inputs and production processes

are much more effcient

Biofuels cost more than petrol or diesel per

unit of energy because of the high cost of

feedstocks and production Using biodiesel

and bioethanol from crops grown in Europe

[6] biofuelS SAviNGS biofuels cost per tonne GhG reduction ($ per tonne co2 equivalent)

Bioethanol (sugarcane)

Bioethanol (corn)

Bioethanol (grain)

Bioethanol (cellulose) 2002

Biodiesel Post 2010 (rapeseed)

Biodiesel (biomass)

-50 0 200 400 600 800

Source IEA Biofuels for transportation An international perspective 2004

and the USA as a carbon reduction strategy

will cost around $200-$250 per tonne of

CO2 avoided at 2004 prices The cost of

bioethanol from sugarcane as in Brazil

can be comparable to that of fossil fuels

(see graphic 6) Bioethanol from cellulose

(a second-generation biofuel) could already

provide CO2 reductions at less than $200 a

tonne It is likely to remain expensive to

reduce CO2 using biodiesel and bioethanol

from US and European crops even after

2010 The cost of using second-generation

biofuels could come down to under $100 a

tonne with large-scale production

As more governments encourage the use of

biofuels and set mandatory targets demand

will outstrip supply leading to higher prices

for frst- and second-generation biofuels

Deforestation and land-use change

The demand for soya and palm oil

threatens rainforests in Brazil

Indonesia and Malaysia which

are being cleared for plantations These oils

are used by a number of industries but the

growth in biodiesel production is increasing

demand signifcantly

[7] RAiNfoReST DefoReSTATioN iMPAcTS carbon storage and co2 emissions per hectare in Se Asia

230 830 48 tonnes tonnes tonnes carbon CO2 carbon

Rainforest Deforestation Palm plantations Carbon stored Carbon released as Stores only 20 of above ground CO2 due to clearing carbon per hectare

and burning compared to rain-forest (equivalent to

165 tonnes CO2)

Sources see back page

Rainforests store large amounts of carbon

above ground and in the soil which is

released when they are cleared (see

graphic 7) A much smaller amount of carbon

is absorbed by the plantations which replace

the forests This means biofuels grown in

tropical countries can contribute more to

climate change than fossil fuels when their

land-use impact is taken into account

Studies have shown that biodiesel made from

palm oil produces three16 to ten17 times more

CO2 than an equivalent amount of fossil

fuel The situation is even worse for biodiesel

made from soya as the crop yields less oil

and stores less carbon than palm plantations

Peat lands wetlands and grasslands also

release large amounts of carbon if converted

to agricultural use Most biodiesel is made

from rapeseed oil rather than palm oil and

soya bean oil But as an increasing share of

rapeseed oil is used for fuels rather than for

food more soya and palm is being planted

to compensate

Deforestation and land-use change means

that while biofuels can appear to help

governments meet their national greenhouse

gas emissions reduction targets they could in

reality be more damaging to climate change

globally when land-use impact is considered

This means that it is vital for national policies

to take into account the full life-cycle climate

impact of different biofuels

Biodiversity loss

The destruction of tropical forests

and grasslands to make way for

soya and palm plantations causes

signifcant destruction of plant and animal

species including endangered species such

as the orang-utan

Biofuel feedstocks are often grown as a

single crop over a wide area Known as

monoculture this brings high yields but

harms biodiversity These impacts can be

reduced to an extent through mixed planting

and leaving wild areas

Water scarcity

Both frst and second-generation

biofuels require large amounts of

water to grow and process the

feedstocks For example it takes between

Sources FOLicht UN










100



Bioethanol (corn) USA

Bioethanol (wheat)

EU

Biomass to liquid(2nd generation)


Brazil

Biodiesel (rapeseed)

EU

Fossil fuel

lt10 40-6087

100

1030

[7] RAiNfoReST DefoReSTATioN iMPAcTScarbon storage and co2 emissions per hectare in Se Asia


RainforestCarbon stored above ground

230tonnescarbon

DeforestationCarbon released as CO2 due to clearing

and burning

830tonnes

CO2

Palm plantationsStores only 20 of carbon per hectare compared to rain-

forest (equivalent to 165 tonnes CO2)

48tonnescarbon

[6] biofuelS SAviNGSbiofuels cost per tonne GhG reduction ($ per tonne co2 equivalent)



Bioethanol (corn)

Bioethanol (grain)

Bioethanol (cellulose)


Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010


















USATARGET Biofuel as of transport fuel


11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks































animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks

















unintended consequencesBiofuels could help boost rural development while reducing CO2 emissions and reliance on crude oil But if biofuel strategies are not fully evaluated they could do more harm than good stimulating poor performing biofuels and stifing innovation

CO2 performance
















































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity





1500 and 4600 litres of water18 to produce [9] PRoPoRTioN of cRoP uSeD foR biofuelS () [10] biofuelS eNeRGY DeliveRY just one litre of bioethanol There are already

Brazil sugarcane USA corn (x 1000 litres of diesel equivalent per hectare)

water shortages in many regions and population Biodiesel Bioethanol

growth and climate change will further increase (rapeseed oil) (sugar cane)

competition for clean water and increase its cost 70 50








Oil and oilseed meals

150 -

140 -Sugar Meat

130 -Cereals Dairy

120 -

110 -

100 -

2004 2009 2014 2019

































animal feed

39 43 20

45

1995 2005 2015 1995 2005 2015

EU cereals EU rapeseed

90

60

20

0 16 lt15 1995 2005 20151995 2005 2015























depend on food aid










energy per hectare






on these fuels

104 405 13 25

Bioethanol Biomass- Biomethane (wheat) to-liquid (energy crops)


Source FNR













Trade









trade distortions











world markets








global supplies


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)



100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010



-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy


90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0

50






























animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks


















CO2 performance














































depend on food aid










energy per hectare






on these fuels


































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity




































animal feed













Trade









trade distortions











world markets








global supplies


USA TARGET Biofuel as of transport fuel


11800000 tonnes


EU TARGET Biofuel as of transport fuel


730000 tonnes


China TARGET Biofuel as of transport fuel


800000 tonnes



Reduction in US land Bioethanol production used for food crops has pushed up corn pushes production prices sparking elsewhere potentially protests in Mexico causing deforestation

Europe doesnrsquot have enough land to meet its biofuels targets Europe rapeseed oil and wheatand will be dependent on imports



KEY


Issues with GHGs


Issues with trade

Feedstocks


Trade











Brazil TARGET Biofuel as of transport fuel


12900000 tonnes










European demand for biodiesel feedstock

98 of Indonesiarsquos raises palm oil price natural rainforest will causing deforestation be degraded or gone by 2022

India TARGET Biofuel as of transport fuel


240000 tonnes

Sources FOLicht UN









Sources FOLicht UN


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)












100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010



-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy



















90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0



11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks



CO2 performance














































depend on food aid










energy per hectare






on these fuels



































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity




































animal feed













Trade









trade distortions











world markets








global supplies

The unilever position Unilever supports sustainable biofuels that deliver social and environmental benefts across their entire lifecycle





























animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks






















emissions globally


































Energy security


























on health12







Rural development









for farmers


CO2

Fertilising


Processing

Transporting

Use

Growing

CO2

CO2 CO2

CO2

CO2

CO2

Energy

EnergyEnergy

EnergyEnergy

Energy

N2O


Soybean oil

Diesel mix


Methyl esters

Transesterifcation


Sugarcane

Sugar

Petrol mix

Corn

Starch

bioethanol

fermentation







Sugar

fermentation

cellulose ethanol


Synthesis gas

Synthesis

hydrocarbons


residues





facing page)


























sugarcane









on 100 bioethanol



fuel effcient

defo

rest

atio

n la

nd-u

se ch

ange

hig

h fo

od p

rices

land

-use

cha

e h

igh

food

pric

es f

ood

shor

tage

s la

nd a

vaila

bilit

y

food

shortag

es land ava

ilability

trad

e dist

or

tions

rura

l dev

elop

men

t en

ergy

secu

rity

CO2 savi

ngs sust

ainab

ilit

y sta

ndar

ds

trad

e di

stor

tions

wat

er sh

orta

ges

biodi

versi

ty lo

ss

ener

gy s

ecur

ity C

O2

sav

ngs

sus

tain

abilit

y st

anda

rds

inno

vatio

ns


































Sources of information 1 International Energy Agency World Energy Outlook 2006

2 International Energy Agency httpieaorgtextbasework2004 eswg21_NCVpdf


4 httpwwwbiodieselorgresourcesfuelfactsheetsstandards_ and_warrantiesshtm













17 Delft Hydraulics



20 Economist 23607


22 Organisation for Economic Co-operation and Development Food and Agriculture Organization Agricultural Outlook 2007-2016













Unilever NV Weena 455 PO Box 760 3000 DK Rotterdam The Netherlands T +31 (0)10 217 4000 F +31 (0)10 217 4798

Commercial Register Rotterdam Number 24051830

Unilever PLC PO Box 68 100 Victoria Embankment London EC4P 4BQ United Kingdom T +44 (0)20 7822 5252 F +44 (0)20 7822 5951

Unilever PLC registered offce Unilever PLC Port Sunlight Wirral Merseyside CH62 4ZD United Kingdom

Registered in England and Wales Company Number 41424

wwwunilevercom






emissions globally


































Energy security


























on health12







Rural development









for farmers


CO2

Fertilising


Processing

Transporting

Use

Growing

CO2

CO2 CO2

CO2

CO2

CO2

Energy

EnergyEnergy

EnergyEnergy

Energy

N2O

defo

rest

atio

n la

nd-u

se ch

ange

hig

h fo

od p

rices

land

-use

cha

e h

igh

food

pric

es f

ood

shor

tage

s la

nd a

vaila

bilit

y

food

shortag

es land ava

ilability

trad

e dist

or

tions

rura

l dev

elop

men

t en

ergy

secu

rity

CO2 savi

ngs sust

ainab

ilit

y sta

ndar

ds

trad

e di

stor

tions

wat

er sh

orta

ges

biodi

versi

ty lo

ss

ener

gy s

ecur

ity C

O2

sav

ngs

sus

tain

abilit

y st

anda

rds

inno

vatio

ns

















17 Delft Hydraulics



20 Economist 23607
















wwwunilevercom






What are biofuels Biofuels are made by processing food crops and other plants animal products or wastes (collectively known as biomass) These can be burnt to generate electricity or heat and are increasingly being used as transport fuels




facing page)


























sugarcane









on 100 bioethanol



fuel effcient


Sugarcane Corn

Starch

Sugar

fermentation

bioethanol

Petrol mix












Soybean oil Palm oil Rapeseed oil

Transesterifcation

Methyl esters













biomass to liquid celluose ethanol production process production process

Biomass including Special crops such agricultural as fast growing

residues woody plants

Thermochemical biochemical treatment treatment gasifcation enzymatic hydrolysis

Synthesis gas Sugar

Synthesis fermentation

hydrocarbons cellulose ethanol

Diesel mix Petrol mix











Diesel mix


Soybean oil

Diesel mix


Methyl esters

Transesterifcation


Sugarcane

Sugar

Petrol mix

Corn

Starch

bioethanol

fermentation







Sugar

fermentation

cellulose ethanol


Synthesis gas

Synthesis

hydrocarbons


residues





facing page)


























sugarcane









on 100 bioethanol



fuel effcient

defo

rest

atio

n la

nd-u

se ch

ange

hig

h fo

od p

rices

land

-use

cha

e h

igh

food

pric

es f

ood

shor

tage

s la

nd a

vaila

bilit

y

food

shortag

es land ava

ilability

trad

e dist

or

tions

rura

l dev

elop

men

t en

ergy

secu

rity

CO2 savi

ngs sust

ainab

ilit

y sta

ndar

ds

trad

e di

stor

tions

wat

er sh

orta

ges

biodi

versi

ty lo

ss

ener

gy s

ecur

ity C

O2

sav

ngs

sus

tain

abilit

y st

anda

rds

inno

vatio

ns


















17 Delft Hydraulics



20 Economist 23607
















wwwunilevercom







































Fertilising

CO2

CO2

N2O Growing

Energy





emissions globally
























Processing


CO2

CO2 CO2

Energy

Energy Energy











Energy security



















Transporting

CO2 Use

CO2

Energy

Energy








on health12







Rural development









for farmers

Sources FOLicht UN


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)














-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy



















90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0



11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks































animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks

















































depend on food aid










energy per hectare






on these fuels

































animal feed













Trade









trade distortions











world markets








global supplies


CO2 performance
















Bioethanol USA

(wheat) EU 100

87 100

lt10 30

40-60

10


Brazil EU












Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

-50 0 200 400 600 800



























demand signifcantly





165 tonnes CO2)
























to compensate










Biodiversity loss






as the orang-utan







Water scarcity





Sources FOLicht UN










100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010




















11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks































animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks


















CO2 performance
















































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity


















150 -

140 -Sugar Meat

130 -Cereals Dairy

120 -

110 -

100 -

2004 2009 2014 2019

































animal feed

39 43 20

45

1995 2005 2015 1995 2005 2015


90

60

20

0 16 lt15 1995 2005 20151995 2005 2015























depend on food aid










energy per hectare






on these fuels

104 405 13 25



Source FNR













Trade









trade distortions











world markets








global supplies


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)



100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010



-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy


90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0

50






























animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks


















CO2 performance














































depend on food aid










energy per hectare






on these fuels


































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity




































animal feed













Trade









trade distortions











world markets








global supplies




11800000 tonnes




730000 tonnes




800000 tonnes







KEY


Issues with GHGs


Issues with trade

Feedstocks


Trade













12900000 tonnes














240000 tonnes

Sources FOLicht UN









Sources FOLicht UN


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)












100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010



-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy



















90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0



11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks



CO2 performance














































depend on food aid










energy per hectare






on these fuels



































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity




































animal feed













Trade









trade distortions











world markets








global supplies






























animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks






















emissions globally


































Energy security


























on health12







Rural development









for farmers


CO2

Fertilising


Processing

Transporting

Use

Growing

CO2

CO2 CO2

CO2

CO2

CO2

Energy

EnergyEnergy

EnergyEnergy

Energy

N2O


Soybean oil

Diesel mix


Methyl esters

Transesterifcation


Sugarcane

Sugar

Petrol mix

Corn

Starch

bioethanol

fermentation







Sugar

fermentation

cellulose ethanol


Synthesis gas

Synthesis

hydrocarbons


residues





facing page)


























sugarcane









on 100 bioethanol



fuel effcient

defo

rest

atio

n la

nd-u

se ch

ange

hig

h fo

od p

rices

land

-use

cha

e h

igh

food

pric

es f

ood

shor

tage

s la

nd a

vaila

bilit

y

food

shortag

es land ava

ilability

trad

e dist

or

tions

rura

l dev

elop

men

t en

ergy

secu

rity

CO2 savi

ngs sust

ainab

ilit

y sta

ndar

ds

trad

e di

stor

tions

wat

er sh

orta

ges

biodi

versi

ty lo

ss

ener

gy s

ecur

ity C

O2

sav

ngs

sus

tain

abilit

y st

anda

rds

inno

vatio

ns


















































17 Delft Hydraulics



20 Economist 23607




















wwwunilevercom


Soybean oil

Diesel mix


Methyl esters

Transesterifcation


Sugarcane

Sugar

Petrol mix

Corn

Starch

bioethanol

fermentation







Sugar

fermentation

cellulose ethanol


Synthesis gas

Synthesis

hydrocarbons


residues





facing page)


























sugarcane









on 100 bioethanol



fuel effcient

defo

rest

atio

n la

nd-u

se ch

ange

hig

h fo

od p

rices

land

-use

cha

e h

igh

food

pric

es f

ood

shor

tage

s la

nd a

vaila

bilit

y

food

shortag

es land ava

ilability

trad

e dist

or

tions

rura

l dev

elop

men

t en

ergy

secu

rity

CO2 savi

ngs sust

ainab

ilit

y sta

ndar

ds

trad

e di

stor

tions

wat

er sh

orta

ges

biodi

versi

ty lo

ss

ener

gy s

ecur

ity C

O2

sav

ngs

sus

tain

abilit

y st

anda

rds

inno

vatio

ns


















17 Delft Hydraulics



20 Economist 23607
















wwwunilevercom







































Fertilising

CO2

CO2

N2O Growing

Energy





emissions globally
























Processing


CO2

CO2 CO2

Energy

Energy Energy











Energy security



















Transporting

CO2 Use

CO2

Energy

Energy








on health12







Rural development









for farmers

Sources FOLicht UN


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)














-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy



















90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0



11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks































animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks

















































depend on food aid










energy per hectare






on these fuels

































animal feed













Trade









trade distortions











world markets








global supplies


CO2 performance
















Bioethanol USA

(wheat) EU 100

87 100

lt10 30

40-60

10


Brazil EU












Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

-50 0 200 400 600 800



























demand signifcantly





165 tonnes CO2)
























to compensate










Biodiversity loss






as the orang-utan







Water scarcity





Sources FOLicht UN










100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010




















11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks































animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks


















CO2 performance
















































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity


















150 -

140 -Sugar Meat

130 -Cereals Dairy

120 -

110 -

100 -

2004 2009 2014 2019

































animal feed

39 43 20

45

1995 2005 2015 1995 2005 2015


90

60

20

0 16 lt15 1995 2005 20151995 2005 2015























depend on food aid










energy per hectare






on these fuels

104 405 13 25



Source FNR













Trade









trade distortions











world markets








global supplies


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)



100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010



-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy


90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0

50






























animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks


















CO2 performance














































depend on food aid










energy per hectare






on these fuels


































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity




































animal feed













Trade









trade distortions











world markets








global supplies




11800000 tonnes




730000 tonnes




800000 tonnes







KEY


Issues with GHGs


Issues with trade

Feedstocks


Trade













12900000 tonnes














240000 tonnes

Sources FOLicht UN









Sources FOLicht UN


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)












100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010



-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy



















90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0



11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks



CO2 performance














































depend on food aid










energy per hectare






on these fuels



































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity




































animal feed













Trade









trade distortions











world markets








global supplies






























animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks






















emissions globally


































Energy security


























on health12







Rural development









for farmers


CO2

Fertilising


Processing

Transporting

Use

Growing

CO2

CO2 CO2

CO2

CO2

CO2

Energy

EnergyEnergy

EnergyEnergy

Energy

N2O


Soybean oil

Diesel mix


Methyl esters

Transesterifcation


Sugarcane

Sugar

Petrol mix

Corn

Starch

bioethanol

fermentation







Sugar

fermentation

cellulose ethanol


Synthesis gas

Synthesis

hydrocarbons


residues





facing page)


























sugarcane









on 100 bioethanol



fuel effcient

defo

rest

atio

n la

nd-u

se ch

ange

hig

h fo

od p

rices

land

-use

cha

e h

igh

food

pric

es f

ood

shor

tage

s la

nd a

vaila

bilit

y

food

shortag

es land ava

ilability

trad

e dist

or

tions

rura

l dev

elop

men

t en

ergy

secu

rity

CO2 savi

ngs sust

ainab

ilit

y sta

ndar

ds

trad

e di

stor

tions

wat

er sh

orta

ges

biodi

versi

ty lo

ss

ener

gy s

ecur

ity C

O2

sav

ngs

sus

tain

abilit

y st

anda

rds

inno

vatio

ns


















































17 Delft Hydraulics



20 Economist 23607




















wwwunilevercom

Sources FOLicht UN


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)














-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy



















90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0



11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks































animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks

















































depend on food aid










energy per hectare






on these fuels

































animal feed













Trade









trade distortions











world markets








global supplies


CO2 performance
















Bioethanol USA

(wheat) EU 100

87 100

lt10 30

40-60

10


Brazil EU












Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

-50 0 200 400 600 800



























demand signifcantly





165 tonnes CO2)
























to compensate










Biodiversity loss






as the orang-utan







Water scarcity





Sources FOLicht UN










100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010




















11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks































animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks


















CO2 performance
















































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity


















150 -

140 -Sugar Meat

130 -Cereals Dairy

120 -

110 -

100 -

2004 2009 2014 2019

































animal feed

39 43 20

45

1995 2005 2015 1995 2005 2015


90

60

20

0 16 lt15 1995 2005 20151995 2005 2015























depend on food aid










energy per hectare






on these fuels

104 405 13 25



Source FNR













Trade









trade distortions











world markets








global supplies


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)



100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010



-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy


90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0

50






























animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks


















CO2 performance














































depend on food aid










energy per hectare






on these fuels


































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity




































animal feed













Trade









trade distortions











world markets








global supplies




11800000 tonnes




730000 tonnes




800000 tonnes







KEY


Issues with GHGs


Issues with trade

Feedstocks


Trade













12900000 tonnes














240000 tonnes

Sources FOLicht UN









Sources FOLicht UN


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)












100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010



-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy



















90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0



11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks



CO2 performance














































depend on food aid










energy per hectare






on these fuels



































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity




































animal feed













Trade









trade distortions











world markets








global supplies






























animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks






















emissions globally


































Energy security


























on health12







Rural development









for farmers


CO2

Fertilising


Processing

Transporting

Use

Growing

CO2

CO2 CO2

CO2

CO2

CO2

Energy

EnergyEnergy

EnergyEnergy

Energy

N2O


Soybean oil

Diesel mix


Methyl esters

Transesterifcation


Sugarcane

Sugar

Petrol mix

Corn

Starch

bioethanol

fermentation







Sugar

fermentation

cellulose ethanol


Synthesis gas

Synthesis

hydrocarbons


residues





facing page)


























sugarcane









on 100 bioethanol



fuel effcient

defo

rest

atio

n la

nd-u

se ch

ange

hig

h fo

od p

rices

land

-use

cha

e h

igh

food

pric

es f

ood

shor

tage

s la

nd a

vaila

bilit

y

food

shortag

es land ava

ilability

trad

e dist

or

tions

rura

l dev

elop

men

t en

ergy

secu

rity

CO2 savi

ngs sust

ainab

ilit

y sta

ndar

ds

trad

e di

stor

tions

wat

er sh

orta

ges

biodi

versi

ty lo

ss

ener

gy s

ecur

ity C

O2

sav

ngs

sus

tain

abilit

y st

anda

rds

inno

vatio

ns


















































17 Delft Hydraulics



20 Economist 23607




















wwwunilevercom

Sources FOLicht UN










100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010




















11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks































animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks


















CO2 performance
















































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity


















150 -

140 -Sugar Meat

130 -Cereals Dairy

120 -

110 -

100 -

2004 2009 2014 2019

































animal feed

39 43 20

45

1995 2005 2015 1995 2005 2015


90

60

20

0 16 lt15 1995 2005 20151995 2005 2015























depend on food aid










energy per hectare






on these fuels

104 405 13 25



Source FNR













Trade









trade distortions











world markets








global supplies


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)



100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010



-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy


90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0

50






























animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks


















CO2 performance














































depend on food aid










energy per hectare






on these fuels


































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity




































animal feed













Trade









trade distortions











world markets








global supplies




11800000 tonnes




730000 tonnes




800000 tonnes







KEY


Issues with GHGs


Issues with trade

Feedstocks


Trade













12900000 tonnes














240000 tonnes

Sources FOLicht UN









Sources FOLicht UN


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)












100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010



-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy



















90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0



11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks



CO2 performance














































depend on food aid










energy per hectare






on these fuels



































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity




































animal feed













Trade









trade distortions











world markets








global supplies






























animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks






















emissions globally


































Energy security


























on health12







Rural development









for farmers


CO2

Fertilising


Processing

Transporting

Use

Growing

CO2

CO2 CO2

CO2

CO2

CO2

Energy

EnergyEnergy

EnergyEnergy

Energy

N2O


Soybean oil

Diesel mix


Methyl esters

Transesterifcation


Sugarcane

Sugar

Petrol mix

Corn

Starch

bioethanol

fermentation







Sugar

fermentation

cellulose ethanol


Synthesis gas

Synthesis

hydrocarbons


residues





facing page)


























sugarcane









on 100 bioethanol



fuel effcient

defo

rest

atio

n la

nd-u

se ch

ange

hig

h fo

od p

rices

land

-use

cha

e h

igh

food

pric

es f

ood

shor

tage

s la

nd a

vaila

bilit

y

food

shortag

es land ava

ilability

trad

e dist

or

tions

rura

l dev

elop

men

t en

ergy

secu

rity

CO2 savi

ngs sust

ainab

ilit

y sta

ndar

ds

trad

e di

stor

tions

wat

er sh

orta

ges

biodi

versi

ty lo

ss

ener

gy s

ecur

ity C

O2

sav

ngs

sus

tain

abilit

y st

anda

rds

inno

vatio

ns


















































17 Delft Hydraulics



20 Economist 23607




















wwwunilevercom


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)



100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010



-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy


90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0

50






























animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks


















CO2 performance














































depend on food aid










energy per hectare






on these fuels


































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity




































animal feed













Trade









trade distortions











world markets








global supplies




11800000 tonnes




730000 tonnes




800000 tonnes







KEY


Issues with GHGs


Issues with trade

Feedstocks


Trade













12900000 tonnes














240000 tonnes

Sources FOLicht UN









Sources FOLicht UN


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)












100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010



-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy



















90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0



11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks



CO2 performance














































depend on food aid










energy per hectare






on these fuels



































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity




































animal feed













Trade









trade distortions











world markets








global supplies






























animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks






















emissions globally


































Energy security


























on health12







Rural development









for farmers


CO2

Fertilising


Processing

Transporting

Use

Growing

CO2

CO2 CO2

CO2

CO2

CO2

Energy

EnergyEnergy

EnergyEnergy

Energy

N2O


Soybean oil

Diesel mix


Methyl esters

Transesterifcation


Sugarcane

Sugar

Petrol mix

Corn

Starch

bioethanol

fermentation







Sugar

fermentation

cellulose ethanol


Synthesis gas

Synthesis

hydrocarbons


residues





facing page)


























sugarcane









on 100 bioethanol



fuel effcient

defo

rest

atio

n la

nd-u

se ch

ange

hig

h fo

od p

rices

land

-use

cha

e h

igh

food

pric

es f

ood

shor

tage

s la

nd a

vaila

bilit

y

food

shortag

es land ava

ilability

trad

e dist

or

tions

rura

l dev

elop

men

t en

ergy

secu

rity

CO2 savi

ngs sust

ainab

ilit

y sta

ndar

ds

trad

e di

stor

tions

wat

er sh

orta

ges

biodi

versi

ty lo

ss

ener

gy s

ecur

ity C

O2

sav

ngs

sus

tain

abilit

y st

anda

rds

inno

vatio

ns


















































17 Delft Hydraulics



20 Economist 23607




















wwwunilevercom

Sources FOLicht UN


Source FNR

1013 25

4054


Biomass- to-liquid

Bioethanol(wheat)












100




Bioethanol (wheat)

EU



Brazil


EU

Fossil fuel

lt10 40-6087

100

1030




230tonnescarbon


and burning

830tonnes

CO2



48tonnescarbon




Bioethanol (corn)

Bioethanol (grain)



Biodiesel (biomass)

0 200 400 600 800-50

2002Post 2010



-

-

-

-

-

-

2004 2009 2014 2019

100

110

120

130

140


SugarMeat

CerealsDairy



















90

2015

2015





1995 1995

19951995

2005 2005

20052005

2015

2015

39

45

lt15

20

60

43

16

70

20

0



11800000 tonnes




800000 tonnes




12900000 tonnes



240000 tonnes



730000 tonnes










KEY


Issues with GHGs


Issues with trade


Trade


Feedstocks



CO2 performance














































depend on food aid










energy per hectare






on these fuels



































demand signifcantly























to compensate










Biodiversity loss






as the orang-utan







Water scarcity




































animal feed













Trade









trade distortions











world markets








global supplies






























animal fats

Lifecycle analysis









(GHG) reductions









from transport










they replace25























accelerated through






















of feedstocks






















emissions globally


































Energy security


























on health12







Rural development









for farmers


CO2

Fertilising


Processing

Transporting

Use

Growing

CO2

CO2 CO2

CO2

CO2

CO2

Energy

EnergyEnergy

EnergyEnergy

Energy

N2O


Soybean oil

Diesel mix


Methyl esters

Transesterifcation


Sugarcane

Sugar

Petrol mix

Corn

Starch

bioethanol

fermentation







Sugar

fermentation

cellulose ethanol


Synthesis gas

Synthesis

hydrocarbons


residues





facing page)


























sugarcane









on 100 bioethanol



fuel effcient

defo

rest

atio

n la

nd-u

se ch

ange

hig

h fo

od p

rices

land

-use

cha

e h

igh

food

pric

es f

ood

shor

tage

s la

nd a

vaila

bilit

y

food

shortag

es land ava

ilability

trad

e dist

or

tions

rura

l dev

elop

men

t en

ergy

secu

rity

CO2 savi

ngs sust

ainab

ilit

y sta

ndar

ds

trad

e di

stor

tions

wat

er sh

orta

ges

biodi

versi

ty lo

ss

ener

gy s

ecur

ity C

O2

sav

ngs

sus

tain

abilit

y st

anda

rds

inno

vatio

ns


















































17 Delft Hydraulics



20 Economist 23607




















wwwunilevercom






emissions globally


































Energy security


























on health12







Rural development









for farmers


CO2

Fertilising


Processing

Transporting

Use

Growing

CO2

CO2 CO2

CO2

CO2

CO2

Energy

EnergyEnergy

EnergyEnergy

Energy

N2O


Soybean oil

Diesel mix


Methyl esters

Transesterifcation


Sugarcane

Sugar

Petrol mix

Corn

Starch

bioethanol

fermentation







Sugar

fermentation

cellulose ethanol


Synthesis gas

Synthesis

hydrocarbons


residues





facing page)


























sugarcane









on 100 bioethanol



fuel effcient

defo

rest

atio

n la

nd-u

se ch

ange

hig

h fo

od p

rices

land

-use

cha

e h

igh

food

pric

es f

ood

shor

tage

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17 Delft Hydraulics



20 Economist 23607




















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