Assessing the economic efficiency of bioenergy technologies in climate mitigation and fossil fuel replacement in Austria using a techno-economic approach

The core issues of the Austrian energy policy agenda include reducing greenhouse gas (GHG) emissions and dependence on fossil fuels. Within this study, the costs of GHG mitigation and fossil fuel replacement (abatement costs) of established and upcoming bioenergy technologies for heat, electricity and transport fuel production are assessed. Sensitivity analyses and projections up to 2030 illustrate the effect of dynamic parameters on specific abatement costs.     

Cost-effective policy instruments for greenhouse gas emission reduction and fossil fuel substitution through bioenergy production in Austria

Climate change mitigation and security of energy supply are important targets of Austrian energy policy. Bioenergy production based on resources from agriculture and forestry is an important option for attaining these targets. To increase the share of bioenergy in the energy supply, supporting policy instruments are necessary. The cost-effectiveness of these instruments in attaining policy targets depends on the availability of bioenergy technologies. Advanced technologies such as second-generation biofuels, biomass gasification for power production, and bioenergy with carbon capture and storage (BECCS) will likely change the performance of policy instruments. This article assesses the cost-effectiveness of energy policy instruments, considering new bioenergy technologies for the year 2030, with respect to greenhouse gas emission (GHG) reduction and fossil fuel substitution. Instruments that directly subsidize bioenergy are compared with instruments that aim at reducing GHG emissions. A spatially explicit modeling approach is used to account for biomass supply and energy distribution costs in Austria. Results indicate that a carbon tax performs cost-effectively with respect to both policy targets if BECCS is not available. However, the availability of BECCS creates a trade-off between GHG emission reduction and fossil fuel substitution. Biofuel blending obligations are costly in terms of attaining the policy targets.     

Potential impact of transition to a low-carbon transport system in Iceland

This paper develops a system dynamics model of Iceland׳s energy sector (UniSyD_IS) that is based on the UniSyD_NZ model of New Zealand׳s energy economy. The model focuses on the energy supply sector with endogenous representation of road transport energy demand. Equilibrium interactions are performed across electricity, hydrogen, biofuels, and road transport sectors. Possible transition paths toward a low-carbon transport in Iceland are explored with implications for fuel demand, greenhouse gas (GHG) emissions and associated costs. The consumer sector simulates the long-term evolution of light and heavy-duty vehicles through a vehicle choice algorithm that accounts for social influences and consumer preferences. Through different scenarios, the influences of four fundamental driving factors are examined. The factors are oil price, carbon tax, fuel supply-push, and government incentives. The results show that changes in travel demand, vehicle technologies, fuel types, and efficiency improvements can support feasible transition paths to achieve sufficient reduction in GHG for both 4 °C and 2 °C climate scenarios of the Nordic Energy Technology Perspectives study. Initial investment in supply infrastructure for alternative fuels will not only mitigate GHG emissions, but also could provide long-term economic benefits through fuel cost saving for consumers and reduced fuel import costs for government.     

Cost efficient utilisation of biomass in the German energy system in the context of energy and environmental policies

The possible uses of biomass for energy provision are manifold. Gaseous, liquid and solid bioenergy carriers can be alternatively converted into heat, power or transport fuel. The contribution of the different utilisation pathways to environmental political targets for greenhouse gas (GHG) emission reduction and energy political targets for the future share of renewable energy vary accordingly to their techno-economic characteristics. The aim of the presented study is to assess the different biomass options against the background of energy and environmental political targets based on a system analytical approach for the future German energy sector. The results show that heat generation and to a lower extent combined heat and power (CHP) production from solid biomass like wood and straw are the most cost effective ways to contribute to the emission reduction targets. The use of energy crops in fermentation biogas plants (maize) and for production of 1st generation transportation fuels, like biodiesel from rapeseed and ethanol from grain or sugar beet, are less favourable. Optimisation potentials lie in a switch to the production of 2nd generation biofuels and the enhanced use of either biomass residues or low production intensive energy crops.     

Land use changes, greenhouse gas emissions and fossil fuel substitution of biofuels compared to bioelectricity production for electric cars in Austria

Bioenergy is one way of achieving the indicative target of 10% renewable energy in the transportation sector outlined in the EU Directive 2009/28/EC. This article assesses the consequences of increasing the use of bioenergy for road transportation on land use, greenhouse gas (GHG) emissions, and fossil fuel substitution. Different technologies, including first and second generation fuels and electric cars fuelled by bioelectricity are assessed in relation to existing bioenergy uses for heat and power production. The article applies a spatially explicit energy system model that is coupled with a land use optimization model to allow assessing impacts of increased biomass utilization for energy production on land use in agriculture and forest wood harvests. Uncertainty is explicitly assessed with Monte-Carlo simulations of model parameters. Results indicate that electric mobility could save GHG emissions without causing a significant increase in domestic land use for energy crop production. Costs of electric cars are still prohibitive. Second generation biofuels are more effective in producing fuels than first generation ethanol. However, competition with power and heat production from ligno-cellulosic feedstock causes an increase in GHG emissions when introducing second generation fuels in comparison to a baseline scenario.     

Bioenergy villages in Germany: Bringing a low carbon energy supply for rural areas into practice

An increasing number of rural municipalities wants to meet their entire energy demand with biomass. This article gives a system analytic view on these “bioenergy villages” by balancing pros (reduction of CO₂ emissions) and cons (increasing costs, land use) using the example of a model municipality in Germany. The results indicate that a 100% energy supply based on biomass from within the boundaries of a rural municipality is technically possible but less reasonable with respect to land use competition and costs of energy supply. Whereas heat and power demand in bioenergy villages can be covered with relatively little land use and to relatively low costs, the production of transport fuel based on energy crops (rape seed) leads to significant negative impacts. For a cost-efficient decarbonization of rural areas it can therefore be recommended to particularly expand the utilization of biomass for heat and power production and to reconsider the transport fuel production.     

Estimating GHG emission mitigation supply curves of large-scale biomass use on a country level

This study evaluates the possible influences of a large-scale introduction of biomass material and energy systems and their market volumes on land, material and energy market prices and their feedback to greenhouse gas (GHG) emission mitigation costs. GHG emission mitigation supply curves for large-scale biomass use were compiled using a methodology that combines a bottom-up analysis of biomass applications, biomass cost supply curves and market prices of land, biomaterials and bioenergy carriers. These market prices depend on the scale of biomass use and the market volume of materials and energy carriers and were estimated using own-price elasticities of demand. The methodology was demonstrated for a case study of Poland in the year 2015 applying different scenarios on economic development and trade in Europe. For the key technologies considered, i.e. medium density fibreboard, poly lactic acid, electricity and methanol production, GHG emission mitigation costs increase strongly with the scale of biomass production. Large-scale introduction of biomass use decreases the GHG emission reduction potential at costs below 50 €/Mg CO_2eq with about 13–70% depending on the scenario. Biomaterial production accounts for only a small part of this GHG emission reduction potential due to relatively small material markets and the subsequent strong decrease of biomaterial market prices at large scale of production. GHG emission mitigation costs depend strongly on biomass supply curves, own-price elasticity of land and market volumes of bioenergy carriers. The analysis shows that these influences should be taken into account for developing biomass implementations strategies.     

Greenhouse gas balances and mitigation costs of 70 modern Germany-focused and 4 traditional biomass pathways including land-use change effects

With Germany as the point of energy end-use, 70 current and future modern pathways plus 4 traditional biomass pathways for heat, power and transport have been compiled and examined in one single greenhouse gas (GHG) balancing assessment. This is needed to broaden the narrow focus on biofuels for transport and identify the role of bioenergy in GHG mitigation. Sensitivity analysis for land-use changes and fossil reference systems are included. Co-firing of woody biomass and fermentation of waste biomass are the most cost-efficient and effective biomass applications for GHG emission reduction in modern pathways. Replacing traditional biomass with modern biomass applications offers an underestimated economic potential of GHG emission reduction. The range of maximum CO₂ equivalent GHG reduction potential of bioenergy is identified in a range of 2.5-16 Gt a⁻¹ in 2050 (5-33% of today’s global GHG emissions), and has an economic bioenergy potential of 150 EJ a⁻¹.     

Energy potential from residual biomass towards meeting the EU renewable energy and climate targets. The Italian case

The biomass sector has a strategic role in energy renewables policy, according to the National Renewable Energy Action Plans (NREAPs), elaborated in compliance with the Directive 2009/28/EC. Planning a suitable use of biomass for energy purposes call for the clear definition of the biomass potential, that has to be periodically updated by inventories for all EU countries.The aim of this paper has been the assessment of the available residual biomass, particularly lignocellulosic, in the Italian territory, to evaluate the potential for bioenergy, particularly for electricity and heat generation. The greenhouse gas savings according to the European target and indicators have been estimated on the national scale. Particularly, the total final energy which could be generated from 22,208,455 t/y of residual biomass assessed in Italy, is equal to 4.57 Mtoe, nearly 2.7% of the gross Italian energy consumption in 2013 and the total savings of GHG emissions coming from this bioenergy generation, are close to 52 Mt CO₂eq for the entire Italian territory per year. The conclusions underline that an appropriate bioenergy policy can help decarbonise the economy, enhance the reliability of the energy supply and additionally it can revitalise rural areas.     

Socio-economic aspects of different biofuel development pathways

There are several policy drivers for biofuels on a larger scale in the EU transport sector, including increased security of energy supply, reduced emission of greenhouse gases (GHG), and new markets for the agricultural sector. The purpose of this socio-economic cost analysis is to provide an overview of the costs of meeting EU biofuels targets, taking into account several external costs and benefits. Biofuels are generally more expensive than traditional fossil fuels, but the expected increasing value of GHG emission reductions will over time reduce the cost gap. High crude oil prices significantly improve the economic benefit of biofuels, but increased demand for biomass for energy purposes is likely to increase the price of biofuels feedstock and biofuels costs. The key question is to what extent increasing oil prices will be passed on to biofuels costs. Socio-economic least costs for biofuels production require a market with a clear pricing of GHG emissions to ensure that this factor is included in the decision-making of actors in all links of the fuel chain.     

Keep that fire burning: Fuel supply risk management strategies of Swedish district heating plants and implications for energy security

Recent decades have seen a strong increase in bioenergy utilization in Sweden, from 52 TWh in 1983 to 128 TWh in 2013. Much of this increase has been achieved by replacing fossil fuels with different forms of bioenergy in district heating. Increased use of bioenergy is generally seen as key to reducing fossil fuel consumption and greenhouse gas emissions and improving energy security.However, replacing fossil fuels with solid biomass fuels in stationary heat and power generation entails significantly more complicated fuel supply logistics, with geographically scattered material associated with storage difficulties and low energy density. Given these risks and challenges and the key role of biomass-based district heating in the Swedish energy system, disturbances in fuel supply to district heating could potentially be an energy security issue.Through literature studies and interviews with employees at 18 district heating plants, we mapped present and future risks and risk management strategies in district heating supply in the Mälardalen region, south-east Sweden. We found that although small disturbances to fuel supply are not uncommon, the likelihood of heat supply failures due to fuel supply problems is low. Risk awareness is generally high among fuel supply managers, with widespread use of multilevel redundancies and diversification as key risk management strategies. However, fuel supply to plants is highly dependent on functioning truck transport and, consequently, availability of diesel fuel for trucks. Risk management can be strengthened further by implementation of forward-looking risk assessments that are less reliant on past experiences.     

A GIS based assessment of bioenergy potential in England within existing energy systems

This paper presents an analysis of the spatial supply and demand relationships for biomass energy potential for England, using Geographical Information System (GIS) mapping techniques. Due to energy use and cost of biomass feedstock transportation, the spatial relationship between potential supply and demand is crucial to efficient usage of this distributed feedstock. Previous studies have identified potential for biomass generation at individual sites, according to local factors dictating viable transport distances and costs. The research presented here necessarily takes a more generalised approach, to allow national scale assessment of capability to meet fixed location demands, and quantify theoretical potential generation under relevant scenarios. The approach is illustrated for England, although techniques are applicable elsewhere when suitable data are available.Mapping for England indicates that of the 2,521,996 ha viable for cultivation of Miscanthus, 1,998,435 ha are within 25 km of the identified potential end uses of feedstock, and 2,409,541 ha are within 40 km. Potential generation exceeds the 2020 UK biomass generation target of 259 PJ, whichever radius is applied. However, predictions assume Miscanthus cultivation at all appropriate sites, and no policy interventions to limit transport distance.Results from national scale analysis may be useful in informing government decisions, for example to identify impacts on total generation potential of incentives affecting decisions on allocation of overlap feedstock. Variation in GHG balance and environmental impacts between cultivation sites creates spatial variation in benefits of bioenergy, which should be taken into account in addition to the spatial relationship between supply and demand.     

Economics of herbaceous bioenergy crops for electricity generation: Implications for greenhouse gas mitigation

This paper examines the optimal land allocation for two perennial crops, switchgrass and miscanthus that can be co-fired with coal for electricity generation. Detailed spatial data at county level is used to determine the costs of producing and transporting biomass to power plants in Illinois over a 15-year period. A supply curve for bioenergy is generated at various levels of bioenergy subsidies and the implications of production for farm income and greenhouse gas (GHG) emissions are analyzed. GHG emissions are estimated using lifecycle analysis and include the soil carbon sequestered by perennial grasses and the carbon emissions displaced by these grasses due to both conversion of land from row crops and co-firing the grasses with coal. We find that the conversion of less than 2% of the cropland to bioenergy crops could produce 5.5% of the electricity generated by coal-fired power plants in Illinois and reduce carbon emissions by 11% over the 15-year period. However, the cost of energy from biomass in Illinois is more than twice as high as that of coal. Costly government subsidies for bioenergy or mandates in the form of Renewable Portfolio Standards would be needed to induce the production and use of bioenergy for electricity generation. Alternatively, a modest price for GHG emissions under a cap-and-trade policy could make bioenergy competitive with coal without imposing a fiscal burden on the government.     

Modeling of current and future energyintensity and greenhouse gas emissions ofthe Lebanese industrial sector: assessmentof mitigation options

Greenhouse gas emissions in Lebanon mainly come from energy activities, which are responsible for 85% of all CO₂ emissions. The CO₂ emissions from energy use in manufacturing industries and construction represent 24% of the total emissions of the energy sector. Lebanese manufacturers' accounted for 39.15 million gigajoules of fuel consumption for heat and power generation in 1994, including both fuel used directly and fuel burned remotely to generate electricity used in the sector. In addition to being processed by combustion, CO₂ is generated in calcining of carbonates in the manufacture of cement, iron and glass. Electricity, the most expensive form of energy, represented 25.87% of all fuel used for heat and power. Residual fuel oil and diesel, which are used mainly in direct combustion processes, represent 26.85 and 26.55% of all energy use by industry, respectively. Scenarios for future energy use and CO₂ emissions are developed for the industrial sector in Lebanon. The development of the baseline scenario relied on available data on major plants' outputs, and on reported amounts of fuels used by the industrial sector as a whole. Energy use in industry and the corresponding greenhouse gas (GHG) emissions for Lebanon are projected in baseline scenarios that reflect technologies, activities and practices that are likely to evolve from the base year 1994 to year 2040. Mitigation work targets a 15% of CO₂ emissions from the baseline scenario by year 2005 and a 20–30% reduction of CO₂ emissions by year 2040. The mitigation options selected for analysis are screened on the basis of GHG emissions and expert judgement on the viability of their wide-scale implementation and economic benefits. Using macroeconomic assessment and energy price assumptions, the final estimates of potential GHG emissions and reduction costs of various mitigation scenarios are calculated. The results show that the use of efficient electric motors, efficient boilers and furnaces with fuel switching from fuel oil to natural gas has the largest impact on GHG emissions at a levelized annual cost that ranges from −20 to −5 US$/tonne of CO₂ reduced. The negative costs are indicative of direct savings obtained in energy cost for those mitigation options.     

Competition for the biomass resource: Greenhouse impacts and implications for renewable energy incentive schemes

In Australia, the Mandatory Renewable Energy Target (MRET) scheme, which targets a 9.5 TWh per annum increase in renewable electricity generation by 2010, is stimulating interest in bioenergy. Development of bioenergy projects may cause competition for biomass resources. For example, sawmill residues are an attractive feedstock for bioenergy, but are also utilised for particleboard manufacture. This study compares the greenhouse gas (GHG) mitigation impacts of alternative scenarios where sawmill residues are used either for generation of electricity or for manufacture of particleboard. The study considers a theoretical particleboard plant processing 100 kt feedstock of dry sawmill residues per annum. If the sawmill residues are used instead for bioenergy, and the particleboard plant utilises fresh plantation biomass, 205 kt CO₂eq emissions are displaced. However, GHG emissions for particleboard manufacture increase by about 38 kt CO₂eq, equivalent to 19% of the fossil fuel emissions displaced, due to the higher fossil fuel requirements to harvest, transport, chip and dry the green biomass. Also, plantation carbon stock declines by 147 kt CO₂eq per year until a new equilibrium is reached after 30 years. This result is influenced particularly by the fossil fuel displaced, the relative efficiency of the fossil fuel and bioenergy plants, the moisture content of the sawmill residues, and the efficiency of the dryer in the particleboard plant.Under MRET, calculation of Renewable Energy Certificates is based solely on the quantity of power generated. This study illustrates that indirect consequences can reduce the GHG mitigation benefits of a bioenergy project. Increased emissions off-site, and loss of forest carbon stock, should be considered in calculating the net GHG mitigation benefit, and this should determine the credit earned by a bioenergy project.     

Assessment of transport fuel taxation strategies through integration of road transport in an energy system model—the case of Sweden

Road transport is responsible for a large and growing share of CO₂ emissions in most countries. A number of new fuel‐efficient vehicle technologies and renewable transport fuels are possible alternatives to conventional options but their deployment relies strongly on different policy measures. Even though a future higher use of transport biofuels and electric vehicles is likely to increase the interaction between the transportation sector and the stationary energy system (heat, power, etc.), these systems are often analysed separately. In this study, a transport module is developed and integrated into the MARKAL_Nordic energy system model. The transport module describes a range of vehicle technologies and fuel options as well as different paths for conversion of primary energy resources into transport fuels. The integrated model is utilized to analyse the impact of transport fuel tax designs on future cost‐effective fuel and technology choices in the Swedish transportation sector, as well as the consequences of these choices on system costs and CO₂ emissions. The model, which is driven by cost‐minimization, is run to 2050 with various assumptions regarding transport fuel tax levels and tax schemes. The results stress the importance of fuel taxes to accelerate the introduction of fuel‐efficient vehicle technologies such as hybrids and plug‐in hybrids. Tax exemptions can make biofuels an economically favourable choice for vehicle users. However, due to limitations in biomass supply, a too strong policy‐focus on transport biofuels can lead to high system costs in relation to the CO₂ abatement achieved. The modelling performed indicates that the effects caused by linkages between the transportation sector and the stationary energy system can be significant and integrated approaches are thus highly relevant. Copyright © 2011 John Wiley & Sons, Ltd.     

Economic and greenhouse gas emission analysis of bioenergy production using multi-product crops—case studies for the Netherlands and Poland

In the face of climate change that may result from greenhouse gas (GHG) emissions, the scarcity of agricultural land and limited competitiveness of biomass energy on the market, it is desirable to increase the performance of bioenergy systems. Multi-product crops, i.e. using a crop partially for energy and partially for material purposes can possibly create additional incomes as well as additional GHG emission reductions. In this study, the performance of several multi-product crop systems is compared to energy crop systems, focused on the costs of primary biomass fuel costs and GHG emission reductions per hectare of biomass production. The sensitivity of the results is studied by means of a Monte-Carlo analysis. The multi-product crops studied are wheat, hemp and poplar in the Netherlands and Poland. GHG emission reductions of these multi-product crop systems are found to be between 0.2 and 2.4 Mg CO_2eq/(ha yr) in Poland and 0.9 and 7.8 Mg CO_2eq/(ha yr) in the Netherlands, while primary biomass fuel costs range from −4.1 to −1.7 €/GJ in the Netherlands and from 0.1 to 9.8 €/GJ in Poland. Results show that the economic attractiveness of multi-product crops depends strongly on material market prices, crop production costs and crop yields. Net annual GHG emission reductions per hectare are influenced strongly by the specific GHG emission reduction of material use, reference energy systems and GHG emissions of crop production. Multi-product use of crops can significantly decrease primary biomass fuel costs. However, this does not apply in general, but depends on the kind of crops and material uses. For the examples analysed here, net annual GHG emission reductions per hectare are not lowered by multi-product use of crops. Consequently, multi-product crops are not for granted an option to increase the performance of bioenergy systems. Further research on the feasibility of large-scale multi-product crop systems and their impact on land and material markets is desirable.     

Increasing biomass resource availability through supply chain analysis

Increased inclusion of biomass in energy strategies all over the world means that greater mobilisation of biomass resources will be required to meet demand. Strategies of many EU countries assume the future use of non-EU sourced biomass. An increasing number of studies call for the UK to consider alternative options, principally to better utilise indigenous resources. This research identifies the indigenous biomass resources that demonstrate the greatest promise for the UK bioenergy sector and evaluates the extent that different supply chain drivers influence resource availability.The analysis finds that the UK's resources with greatest primary bioenergy potential are household wastes (>115 TWh by 2050), energy crops (>100 TWh by 2050) and agricultural residues (>80 TWh by 2050). The availability of biomass waste resources was found to demonstrate great promise for the bioenergy sector, although are highly susceptible to influences, most notably by the focus of adopted waste management strategies. Biomass residue resources were found to be the resource category least susceptible to influence, with relatively high near-term availability that is forecast to increase – therefore representing a potentially robust resource for the bioenergy sector. The near-term availability of UK energy crops was found to be much less significant compared to other resource categories. Energy crops represent long-term potential for the bioenergy sector, although achieving higher limits of availability will be dependent on the successful management of key influencing drivers. The research highlights that the availability of indigenous resources is largely influenced by a few key drivers, this contradicting areas of consensus of current UK bioenergy policy.     

Greenhouse gas emission mitigation in the Sri Lanka power sector supply side and demand side options

Sri Lanka has had a hydropower dominated electricity generation sector for many years with a gradually decreasing percentage contribution from hydroresources. At the same time, the thermal generation share has been increasing over the years. Therefore, the expected fuel mix in the future in the large scale thermal generation system would be dominated by petroleum products and coal. This will result in a gradual increase in greenhouse gas (GHG) and other environmental emissions in the power sector and, hence, require special attention to possible mitigation measures.

This paper analyses both the supply side and demand side (DSM) options available in the Sri Lanka power sector in mitigating emissions in the sector considering the technical feasibility and potential of such options. Further, the paper examines the carbon abatement costs associated with such supply side and DSM interventions using an integrated resource planning model, which is not used in Sri Lanka at present. The sensitivities of the final generation costs and emissions to different input parameters, such as discount rates, fuel prices and capital costs, are also presented in the paper. It is concluded that while some DSM measures are economically attractive as mitigation measures, all the supply side options have a relatively high cost of mitigation, particularly in the context of GHG emission mitigation. Further it is observed that when compared with the projected price of carbon under different global carbon trading scenarios, these supply side options cannot provide economically beneficial CO₂ mitigation in countries like Sri Lanka.     

Cost-effective CO2 emission reduction through heat,power and biofuel production from woody biomass: A spatially explicit comparison of conversion technologies

Bioenergy is regarded as cost-effective option to reduce CO₂ emissions from fossil fuel combustion. Among newly developed biomass conversion technologies are biomass integrated gas combined cycle plants (BIGCC) as well as ethanol and methanol production based on woody biomass feedstock. Furthermore, bioenergy systems with carbon capture and storage (BECS) may allow negative CO₂ emissions in the future. It is still not clear which woody biomass conversion technology reduces fossil CO₂ emissions at least costs. This article presents a spatial explicit optimization model that assesses new biomass conversion technologies for fuel, heat and power production and compares them with woody pellets for heat production in Austria. The spatial distributions of biomass supply and energy demand have significant impact on the total supply costs of alternative bioenergy systems and are therefore included in the modeling process. Many model parameters that describe new bioenergy technologies are uncertain, because some of the technologies are not commercially developed yet. Monte-Carlo simulations are used to analyze model parameter uncertainty. Model results show that heat production with pellets is to be preferred over BIGCC at low carbon prices while BECS is cost-effective to reduce CO₂ emissions at higher carbon prices. Fuel production – methanol as well as ethanol – reduces less CO₂ emissions and is therefore less cost-effective in reducing CO₂ emissions.