1. Non-Food Options at Farm Level Agricultural Bioenergy Options in ENFA * Uwe Schneider, Chrystalyn Ivie Ramos + Edward Smeets, Iris Lewandowski, André Faaij * Research Unit Sustainability and Global Change, Hamburg University + Department of Science, Technology and Society, Utrecht University Final Meeting ENFA, 23-24 April 2008, Brussels, Belgium Copernicus Institute Sustainable Development and Innovation

2. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 2 Table 1: Food/ Non-Food Production Lines in ENFA Land use options Non-food product options Non-food product applications Contributor(s) Miscanthus, Switchgrass Pellets, BalesBiofuels, Bioelectricity, Bioheat, Biomaterials UUTR, A&F, INRA, IGER, AUA, TCD, JR Red canary grassPellets and briquettesHot water energySLU Willow, Poplar, Eucalyptus, Giant reed, Cardoon Pellets, ChipsBioenergy generationSLU, ECBREC, INRA, AUA, JR Hemp, Flax, KenafFiber and shive productsBiomaterialsA&F Maize, Sugar beet, Potatoes OilseedsBioethanolUHOH, UUTR, INRA, JR Rape, SunflowerOilseedsBiodieselUHOH, ECBREC, INRA, JR Forest Management Pulp, TimberPaper, Bioelectricity Bioheat, Biofuels (Methanol, FT-diesel, Hydrogen) OCE, ECBREC, JR Livestock optionsUHH Manure treatmentMethaneBiogasUHH, UHOH, INRA

3. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 3 Non-food Product Applications Selection Selection of applications are based on the following parameters: market size economic performance technical feasibility environmental performance

4. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 4 Miscanthus & switchgrass chains C4 grasses high light, water, and nitrogen use efficiency high yield potential miscanthus field miscanthus harvesting

5. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 5 Table 2: Miscanthus & switchgrass applications selected Land use optionsNon-food product options Non-food product applications Contributor(s) Miscanthus, SwitchgrassPellets, BalesBioelectricity, Bioheat, Biofuels, Biomaterials UUTR, A&F, INRA, IGER, AUA, TCD, JR BioenergyBiofuelsBiomaterials Combustion combined heat and power MethanolDimethyl Ether Integrated gasification and combined cycle EthanolEthylene Indirect co-combustion with coal HydrogenPoly Lactic Acid Gasification and co- combustion with coal Fischer-Tropsch dieselPoly Trimethylene Tetraphalate Small scale heatingMedium Density Fiberboard

6. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 6 Total costs of production were calculated Discounted cash flow methodology Considered the supply chain in the calculations –includes growing, harvesting, storing, compacting and transporting Regional variation were accounted –in terms of yield, transportation distance, input costs (labor, fuel, agrochemicals, etc.) Calculations done for the base case and 2030 Economic performance calculations

7. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 7 Environmental performance calculations Based on GHG emissions during the production and transportation stages –Direct emissions Emissions from fuel use in agricultural machineries or transportation equipment Nitrous oxide emissions from fertilizer use –Indirect emissions Emissions generated from the bioenergy or biomaterial production during the production and transportation stages Spreadsheet modeling

8. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 8 Miscanthus and switchgrass production – an overview Table 3: Number of application of production stages over the miscanthus and switchgrass lifetimes* * Assumed to be applicable in all EU regions

9. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 9 Inputs (example for miscanthus) 20,000 rhizomes/ha 0.16 Euro/rhizome Fertilization (example for Germany): – N 24 kg/ha/y (incl. atm. deposition) – P 10kg/ha/y – K 91kg/ha/y – Ca 14kg/ha/y –based on 0.27% N, 0.07% P, 0.65% K, and 0.10% Ca of odt and a yield of 14 ton/ha/y

10. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 10 Sample costs Sources: Huisman, 1997; Lazarus & Selly, 2003; EUROSTAT, 2006 Table 4: Farm machinery costs for a self propelled big baler harvester

11. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 11 http://blog.futurelab.net http://www.pictokon.net Key variables/uncertainties for economic performance of miscanthus production: – On-field transportation costs – Farm size – Yield harvest cost factor (YF): YF = 4.33 Y -0.589 where Y = yield (ton/ha)

12. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 12 Yields 0- 5 6 - 10 11 - 15 16 - 20 21 - 25 26 - 30 31 - 35 36 - 40 41 - 45 tons/ha/yr MiscanMod crop growth model Average yield EU25: Base: 13 tons/ha/yr 2030: 16 tons/ha/yr Source: Stampfl et al., 2006 Figure 1: Field yields of miscanthus in the EU region

13. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 13 Storing –Storage options are available (costs < 10 Euro/ton) for existing farm and roofed timber buildings –Risk of self heating and dry matter loss during storage Pelletizing –On-field and on-farm pelleting is expensive Large scale effect: 3 t/h ≡ 55 Euro/ton (Austria) 10 t/h ≡ 30 Euro/ton (Sweden) –Pelletizing to reduce transportation costs is unprofitable! http://www.peer-span.ch

14. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 14 Sources: NEA, 2004; IFEU, 2005; Hamelinck, 2004 http://www.walesbiomass.org Table 5: Transportation costs

15. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 15 Key uncertainties are the moisture content and the source and price of energy Only attractive in the case of very long distance transport (>700 km) in the case of low energy costs (e.g. in combination with a CHP plant) 0 5 10 15 20 25 30 35 40 PL - 2004 PL - 2030 HU - 2004 HU - 2030 UK - 2004 UK - 2030 IT - 2004 IT - 2030 LI - 2004 LI - 2030 Euro/ton Energy Labor Capital 1.7 1.4 0.8 1.9 0.6 1.1 Euro/GJ 2.2 0.3 0 PL = Poland; HU = Hungary; UK = United Kingdom; IT = Italy; LI = Lithuania Figure 2: Pelletizing costs

16. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 16 Figure 3: Total production, storage & transportation costs of miscanthus and switchgrass yields Yield (ton/ha/yr)

17. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 17 Figure 4: Total miscanthus production costs - EU25 * Yields from MiscanMod (Clifton-Brown et al., 2000) Including labor costs/margins * From the field to the farm gate 5 10 15 20 25 0 Yield (ton /ha/y)

18. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 18 Results: Economic performance evaluation Sources: –Energy: OECD/IEA (2006) –Fuels: Well-to-Wheels study (JRC-IES, EUCAR, Concawe, 2006) –Materials: BREW project (Patel et al., 2006) Assumptions: – Aggregated data – Cradle-to-grave basis – No regional variation Key variables: –Plant scale, fuel conversion efficiency, interest rate, oil price (reference system)

19. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 19 Figure 5: Chemical production costs (Biomaterials) Production costs conventional processes (Euro/ton) EthylenePETPTT 72412001177

20. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 20 Figure 6: Biofuel production costs 0.00 0.01 0.02 0.03 0.04 nowfuturenowfuturenowfuturenowfuturenowfuturenowfuturenowfuture SI SI, hyrbrid SI, hybrid CI CI, hyrbrid CI, hybrid FC, hybrid FC, hybrid FC FC, hybrid FC, hybrid GasolineDieselMethanolHydrogen Euro/km Estonia Germany Italy Latvia Lithuania Slovenia United Kingdom

21. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 21 Results: Environmental performance evaluation P = production, PL = Poland - Lubelski, HU = Hungary - Del-Dunantal, UK = United Kingdom - Devon, IT = Italy – Lombardia, LI = Lithuania, M = miscanthus, S = switchgrass, B = baled, C = chopped. Figure 7: GHG emissions from miscanthus production

22. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 22 Agricultural Bioenergy Options in ENFA Summary of the different food and non-food bioenergy options: –Yields –Production costs –Labor intensity –Fertilizer use –Energy use http://www.eubia.org/

23. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 23 Figure 8: Average production yields of different bioenergy options

24. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 24 Figure 9: Production costs of different bioenergy options

25. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 25 Figure 10: Labor intensities of different bioenergy options

26. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 26 Figure 11: Amount of fertilizer use by different bioenergy options

27. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 27 Figure 12: Amount of fuel use by different bioenergy options

28. Final Meeting European Non-Food Agriculture Project, 23-24 April 2008, Brussels, Belgium 28 Figure 13: Input data parameters for different bioenergy options