Bioenergy, Bioproducts and Energy - AgriFutures … · Bioenergy, Bioproducts and Energy ......

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Bioenergy, Bioproducts and Energy A Framework for research and development A report for the Rural Industries Research and Development Corporation by Deborah O’Connell, Victoria Haritos, Sonia Graham, Damien Farine, Michael O’Connor, David Batten, Barrie May, John Raison, Andrew Braid, Michael Dunlop, Tom Beer, Cameron Begley, Andrew Braid, Mick Poole, David Lamb November 2007 RIRDC Publication No 07/178 RIRDC Project No CSW-44A (PRJ-000830)

Transcript of Bioenergy, Bioproducts and Energy - AgriFutures … · Bioenergy, Bioproducts and Energy ......

Bioenergy, Bioproducts and Energy A Framework for research and development

A report for the Rural Industries Research and Development Corporation

by Deborah O’Connell, Victoria Haritos, Sonia Graham, Damien Farine, Michael O’Connor, David Batten, Barrie May, John Raison, Andrew Braid, Michael Dunlop, Tom Beer, Cameron Begley,

Andrew Braid, Mick Poole, David Lamb

November 2007

RIRDC Publication No 07/178 RIRDC Project No CSW-44A (PRJ-000830)

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© 2007 Rural Industries Research and Development Corporation. All rights reserved. ISBN 1 74151 573 4 ISSN 1440-6845 Bioenergy, bioproducts and energy—A framework for research and development Publication No. 07/178 Project No. CSW-44A (PRJ-000830) The information contained in this publication is intended for general use to assist public knowledge and discussion and to help improve the development of sustainable regions. You must not rely on any information contained in this publication without taking specialist advice relevant to your particular circumstances.

While reasonable care has been taken in preparing this publication to ensure that information is true and correct, the Commonwealth of Australia gives no assurance as to the accuracy of any information in this publication.

The Commonwealth of Australia, the Rural Industries Research and Development Corporation (RIRDC), the authors or contributors expressly disclaim, to the maximum extent permitted by law, all responsibility and liability to any person, arising directly or indirectly from any act or omission, or for any consequences of any such act or omission, made in reliance on the contents of this publication, whether or not caused by any negligence on the part of the Commonwealth of Australia, RIRDC, the authors or contributors.

The Commonwealth of Australia does not necessarily endorse the views in this publication.

This publication is copyright. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved. However, wide dissemination is encouraged. Requests and inquiries concerning reproduction and rights should be addressed to the RIRDC Publications Manager on phone 02 6271 4165.

Researcher Contact Details Dr Deborah O’Connell CSIRO Sustainable Ecosystems GPO Box 284 CRACE ACT 2602 Phone: 02 6242 1600 Email: Deborah.O’[email protected]

In submitting this report, the researcher has agreed to RIRDC publishing this material in its edited form. RIRDC Contact Details Rural Industries Research and Development Corporation Level 2, 15 National Circuit BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604 Phone: 02 6271 4100 Fax: 02 6271 4199 Email: [email protected]. Web: http://www.rirdc.gov.au Published in November 2007 Printed by Union Offset Printing

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Foreword In July 2007 RIRDC began a new program in Bioenergy, Bioproducts and Energy. This report aims to recommend a set of research and development priorities to RIRDC in the areas of bioenergy (including biofuels and electricity) and bioproducts. The priorities identified here are based on a survey of industry participants, a workshop of R&D providers, discussions with Bioenergy Australia and a literature review. RIRDC will develop a Five-Year Plan for the new program using the recommendations in this report as input to the planning process. This report begins with a snapshots of bioenergy, biofuels and bioproduct industries internationally and then within Australia. This has been done to provide some context for the development of the research and development priorities. A framework for the Research and Development in this program area is presented and explained. The results of an online survey of industry participants in terms of their current work in the area, organisational research capacity, and contact details are given. This project was funded from RIRDC Core Funds (which are provided by the Australian Government) in partnership with CSIROs Energy Transformed Flagship. Most of our publications are available for viewing, downloading or purchasing online through our website: • downloads at www.rirdc.gov.au/fullreports/index.html • purchases at www.rirdc.gov.au/eshop Peter O’Brien Managing Director Rural Industries Research and Development Corporation

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Acknowledgments We thank the following people: Roslyn Prinsley, Charlie McElhone, Brian Keating, Bruce Pengelly, Will Woodward, Franzi Poldy, respondents to the survey and Bioenergy Australia members for your contributions. Les Edye and Steve Schuck had considerable input into the architecture of the R&D ‘mudmap’ presented here. They participated at a workshop, and many other discussions during the process of writing this report. We also thank Steve for his formal referee’s review of this report, and consistent efforts to better co-ordinate researchers, government and industry efforts through his role as manager of Bioenergy Australia.

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Contents Foreword ............................................................................................................................................... iii Acknowledgments................................................................................................................................. iv Executive Summary ............................................................................................................................. vi Introduction ........................................................................................................................................... 1 Background, Technologies and Current Status.................................................................................. 2

Current snapshot of biofuels................................................................................................................ 2 An international snapshot................................................................................................................ 2 The Australian context .................................................................................................................... 3

Current snapshot of bioenergy (heat and power) from biomass.......................................................... 5 An international snapshot................................................................................................................ 5 The Australian context .................................................................................................................... 5

Bioproducts and biorefineries ............................................................................................................. 7 An international summary ............................................................................................................... 8 The Australian context .................................................................................................................... 8

Research and Development Priorities ............................................................................................... 10 Survey details .................................................................................................................................... 10 R&D Priorities................................................................................................................................... 11

Box 1 R&D investment framework or ‘roadmap’......................................................................... 13 Box 2 Sustainability ...................................................................................................................... 14 Box 3 Biomass resources .............................................................................................................. 16 Box 4 Supply logistics................................................................................................................... 18 Box 5 Conversion technologies..................................................................................................... 19 Box 6 Matching feedstock production systems with economically viable processing systems.... 20 Box 7 Products a) Product streams b) Understanding markets c) Pathways for new products to market............................................................................................................................................ 22 Box 8 Policy analysis .................................................................................................................... 24 Box 9 Outreach.............................................................................................................................. 25 Box 10 Capacity building.............................................................................................................. 25

Other Related Activities...................................................................................................................... 26 The Academy of Technological Science and Engineering................................................................ 26 CSIRO Energy Transformed Flagship Future Fuels Forum.............................................................. 26 The Clean Energy Council Bioenergy Roadmapping project ........................................................... 26 IEA Bioenergy................................................................................................................................... 27

Concluding Comments and Next Steps ............................................................................................. 28 References ............................................................................................................................................ 29 Appendix 1 Survey responses............................................................................................................. 30 Appendix 2 Survey respondents information on organisational R&D activity and capacity ...... 38 Appendix 3 Feedback on R&D framework from Bioenergy Australia forum .............................. 46

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Executive Summary What the report is about This report aims to recommend a framework for organising research and development priorities to RIRDC, as well as provide research priorities arising from a survey and tabulated information on organisations and researchers who are active in this area of research. Who is the report targeted at? In July 2007 RIRDC began a new program in Bioenergy, Bioproducts and Energy. This report aims to recommend a set of research and development priorities to RIRDC in the areas of bioenergy (including biofuels) and bioproducts. It does not cover the areas of “Methane to Markets”, and “Energy” because these parts of the program are being developed under a different set of institutional arrangements, and will be managed by RIRDC as part of the Bioenergy, Bioproducts and Energy program. RIRDC will develop a Five-Year Plan for the new program using this report as an input. Background This report forms one of a series of reports from CSIRO to RIRDC to underpin the development of the new program. • Biofuels in Australia – issues and prospects (O’Connell et al.2007) – synthesis and summary

versions • Biofuels in Australia – biofuel co-products for livestock (Braid 2007) • Bio-based products (Haritos 2007) • Biofuels in Australia – some economic and policy issues (Batten and O’Connell 2007) All of the reports contain extensive reviews of a range of issues related to biofuels, bioproducts and to a lesser extent, bioenergy (heat and power generation). In this report, the knowledge gaps identified in the reviews are distilled and combined with surveys of industry participants to recommend research and development priorities. Aims/Objectives This aim of the report is to provide a framework to organise research and development priorities and projects. It also provides a list of research priorities and some of the organisations actively working in the area. RIRDC and other agencies with an active interest in R&D in this field are the prime beneficiaries of the work presented here. It will also help to frame further development of an industry ‘roadmap’ and will therefore help to guide government, researchers and industry with strategic investment into research and development. Methods used There were four major inputs to this analysis • Extensive literature reviews and analysis of opportunities and knowledge gaps for biofuels

(O’Connell et al.2007) and bioproducts (Haritos 2007) but not for bioelectricity and bioheat. • An on-line questionnaire (trialled on paper at the Bioenergy Australia 2006 conference) which was

open to all industry participants about research activities and recommended priorities

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• A workshop held at CSIRO Sustainable Ecosystems on 23rd March 2007 with the authors of this report, as well as representatives from RIRDC, NFF, Bioenergy Australia, Queensland University of Technology to discuss research and development priorities

• Positive feedback and useful commentary elicited from a presentation of the research priority framework to Bioenergy Australia on 21 June 2007.

Results/Key findings The R&D priorities have been organised into a set of 10 areas, each of which have a rationale and a set of defined priorities (Figure 3, page 12). The 10 areas are

1. Research and development investment framework or ‘roadmap’ 2. Sustainability 3. Biomass resources 4. Supply logisitics 5. Conversion technologies 6. Matching feedstock production with cost effective conversion technologies 7. Products a) Product streams b) Understanding markets c) Pathways for products to markets 8. Economic and policy analysis 9. Outreach 10. Capacity building

3. Biomass resources• Current production base• Future production base• Characterisation of biomass

7b. Market analysis• Domestic • International

2. Sustainability Assessment methods, accreditation schemes, Life Cycle Analysis case studies and inventories, biophysical and socio-economic analyses at regional, national and international scales, quantifying benefits and impacts across economic and environmental value chains, obtaining community approval and consumer demand

4. Supplylogistics• Infrastructure• Feedstock

catchment• Harvesting/

scheduling• Pre-processing

5. Conversiontechnologies• Biorefineries• Biocatalytic• Thermo-chemical• Creation of co-products

incl fuel, heat, power, char

• Closed loop systems

7a. Product streams• Identifying and characterising novel products• Uses for co-products• Market testing• Safety testing

9. OutreachEducation, communication, extension, barriers to uptake

6. Matching feedstock production systems to economically viable processing systemsFeedstock security, infrastructure, transport, distance to market, economic threshholds

7c. Pathways for products to markets• Infrastructure• Distribution• Barriers• Disposal

1. R&D Investment Framework or “Roadmap”Identifying uniquely Australian problems/solutions, competitive advantage – national framework for bioenergy; national R&D framework/ roadmap

10. Capacity buildingCommunities and industries with skilled labour, infrastructure, capital etc to develop new industries

8. Policy analysis Impacts of settings, feedbacks, current and future, domestic and international, placing biofuel policy in the context of broader energy and climate

change policy and carbon markets, sequencing of options and strategies for transition

3. Biomass resources• Current production base• Future production base• Characterisation of biomass

7b. Market analysis• Domestic • International

2. Sustainability Assessment methods, accreditation schemes, Life Cycle Analysis case studies and inventories, biophysical and socio-economic analyses at regional, national and international scales, quantifying benefits and impacts across economic and environmental value chains, obtaining community approval and consumer demand

4. Supplylogistics• Infrastructure• Feedstock

catchment• Harvesting/

scheduling• Pre-processing

5. Conversiontechnologies• Biorefineries• Biocatalytic• Thermo-chemical• Creation of co-products

incl fuel, heat, power, char

• Closed loop systems

7a. Product streams• Identifying and characterising novel products• Uses for co-products• Market testing• Safety testing

9. OutreachEducation, communication, extension, barriers to uptake

6. Matching feedstock production systems to economically viable processing systemsFeedstock security, infrastructure, transport, distance to market, economic threshholds

7c. Pathways for products to markets• Infrastructure• Distribution• Barriers• Disposal

1. R&D Investment Framework or “Roadmap”Identifying uniquely Australian problems/solutions, competitive advantage – national framework for bioenergy; national R&D framework/ roadmap

10. Capacity buildingCommunities and industries with skilled labour, infrastructure, capital etc to develop new industries

8. Policy analysis Impacts of settings, feedbacks, current and future, domestic and international, placing biofuel policy in the context of broader energy and climate

change policy and carbon markets, sequencing of options and strategies for transition

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Implications for relevant stakeholders, and recommendations for further steps The research and development framework presented here is preliminary in nature and primarily aimed at RIRDC to assist with setting the research agenda for their new program in Bioenergy, Bioproducts and Energy. It may also be useful to a broader audience because it represents a ‘mudmap’ of research issues and knowledge gaps required to underpin the further development of bioenergy, biofuels and bioproducts industries more generally than within the new RIRDC research program. It therefore provides a useful basis for a more comprehensive consultation with researchers, industry, government and community than was possible here. There have been many calls for a bioenergy and biofuels ‘roadmap’, which would ideally include building a common vision, specific well-reasoned goals or targets, critical pathways for research, technology development, adoption and commercialisation and industry rollout. Many other countries have progressed substantially with developing such roadmaps, and are starting to implement them. Conclusions There is currently a high level of interest in bioenergy, biofuels and bioproducts both internationally and domestically. It is time to take advantage of this interest and make the most of the range of opportunities which are currently presented. Australia has excellent opportunities to invest strategically in those areas and technologies that will provide strong competitive advantage, make the most of unique combinations of Australian bio-resources and processing technologies, and develop new industries that can reinvigorate and integrate agriculture and forest industries. The RIRDC Bioenergy, Bioproducts and Energy program can provide leadership and co-ordination to this important industry development.

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Introduction In July 2007 RIRDC began a new program in Bioenergy, Bioproducts and Energy. The stated goals of this program are to • Develop new industry options for farmers and regions • Reduce carbon emissions • Address carbon sequestration goals • Address fuel security needs • Provide a forum for research and industry networking and industry development • Develop a new research and commercialisation program in “Methane to Markets”1 in agriculture • Improve energy efficiency2 This report forms one of a series of reports from CSIRO to RIRDC to underpin the development of the new program. • Biofuels in Australia – issues and prospects (O’Connell et al.2007) – synthesis and summary

versions • Biofuels in Australia – biofuel co-products for livestock (Braid 2007) • Bio-based products (Haritos 2007) • Biofuels in Australia – some economic and policy issues (Batten and O’Connell 2007) All of the reports contain extensive reviews of a range of issues related to biofuels, bioproducts and to a lesser extent, bioenergy (heat and power generation). This report aims to recommend a set of research and development priorities to RIRDC in the areas of bioenergy (including biofuels) and bioproducts. It does not cover the areas of “Methane to Markets”, and “Energy” because these parts of the program are being developed under a different set institutional arrangements, and will be managed by RIRDC as part of the Bioenergy, Bioproducts and Energy program. RIRDC will develop a Five-Year Plan for the new program using this report as input. This report aims to recommend a set of research and development priorities to RIRDC, as well as provide tabulated information on organisations and researchers who are active in this area of research. The report begins with very brief snapshots of bioenergy, biofuels and bioproduct industries internationally and then within Australia. This has been done to provide some context for the research and development into these areas. A framework for the research and development in this program area is presented and explained, and further steps suggested. The results of an online survey of industry participants in terms of their current work in the area, organisational research capacity, and contact details are given in the Appendices.

1 A program being funded by the Department of Agriculture, Fisheries and Forests and managed by RIRDC 2 A cross-cutting program by several Research and Development Corporations which is currently being developed, and will be managed by RIRDC

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Background, Technologies and Current Status This chapter begins with a brief snapshots of biofuel, bioenergy and bioproduct industries in the international and domestic context. Current snapshot of biofuels An international snapshot International liquid biofuel production is increasing rapidly, with over 18 Mtoe (million tonnes of oil equivalent) per year of ethanol mostly produced from sugar in Brazil and corn in USA, and 2.5 Mtoe per year of biodiesel mostly produced from oilseeds in Europe (Figure 1). Figure 1 Global ethanol and biodiesel production (from IEA Energy Tech Essentials Jan 2007)

The implications of this for global use of biomass, as well as emissions reductions are dealt with in greater detail in the synthesis report Biofuels in Australia – issues and prospects (O’Connell et al. 2007). It is clear that whether or not Australia develops a significant industry in biofuels and bioenergy, the implications of commodity prices influenced by the global demand for biofuels are already starting to have an impact on Australian production. In this report the potential benefits (such as greenhouse gas reductions) and risks were quantified where possible. There are many different process pathways to obtain a range of biofuels from various biomass feedstocks. Bioethanol from fermentation of starch/sugars, and biodiesel from transesterification of fats and oils are the two commonly produced ‘first generation’ biofuels. There are, however, a range of other ‘second generation’ fuels for which new feedstocks and processes are being developed and commercialised. Some examples of technologies for second generation diesel substitutes, alcohols and new fuels can be summarised as • Gasification – heating with limited oxygen and steam to produce a gas called syngas or

producer gas (carbon monoxide, hydrogen, methane, and some carbon dioxide, with more nitrogen in producer gas than syngas). The gases can be reconstituted to liquid fuels using a Fischer Tropsch (FT) process which is the same as that used to convert coal to synthetic diesel. The fuels produced include syndiesel and/or alcohols, including ethanol, methanol, or propanol, as well as DiMethyl Ether (DME, which can be used in diesel engines, in blends in petrol engines, and gas turbines).

• Pyrolysis – heating with no oxygen or steam to produce hydrocarbon-rich gas and bio-oils which can be converted to a synthetic diesel. The bio-oils can be evaporated to create char which is a stable way to capture carbon, and can be used as a soil conditioner (Stucley 2006).

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• New biocatalytic pathways which use organisms or enzymes to convert materials such as starch, sugars or lignocellulose to a range of new biofuels (e.g. butanol) or bioproducts (e.g. Hyde 2006, Haritos 2007)

The boundaries between fossil and bio feedstocks, and the production of liquid and gaseous fuels, electricity and bio-based products become increasingly blurred as 2nd generation technologies progress. For example, biomass gasification and pyrolysis can be used to produce liquid fuels as described above, as well as drive gas engines or turbines for heating and cooling, or generators for electricity. Coal can be used to create syndiesel, and methanol can be produced from natural gas as well as biomass. This is a small subsample of the new processes and fuels being researched around the world, and we are not focussing on them in detail in this report. Many of the new technologies are in early research through to demonstration phase, and not yet cost competitive although it is mooted that within 3 – 5 years some of these might become commercial (Hamelinck and Faaij 2006, Smeets et al. 2005, OECD/IEA 2007a). The Australian context The biofuels industry in Australia is in its early days, with a national production target of 350 ML by 2010 (about 1 % of current transport fuel usage). Different states are investigating biofuels and policy options at state level, which have been reviewed in detail in Batten and O’Connell (2007). Production for 2006/7 financial year in Australia was 83.6 ML ethanol and 76.3 ML biodiesel, which is less than 0.5 % of Australia’s transport fuel requirements (Table 1). Table 1 Australian production of ethanol and biodiesel for 2006/7 Feedstock Current capacity

(ML/y) Production in 2006/7 (ML)

Percentage of total market

Ethanol Waste starch and wheat & C-molasses

148

83.6

< 0.5 % (volume) of current 19 500 ML petrol market

Biodiesel Waste Oil & Tallow 323

76.3 0.5 % of current 15 000 ML diesel market

Total 471 159.9

The current processing capacity for ethanol in Australia in 2007 is 148 ML, with planned capacity of 1155 ML. The current biodiesel capacity is 323 ML with a planned capacity of 1122 ML (Tables 2 and 3).

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Table 2 Ethanol Production Capacity in Australia: Current and Proposed (Source Biofuels Task Force (2005), CIE (2005) and BP Australia) Company Location Feedstock(s) Capacity 2007 Planned ML ML Queensland CSR Ethanol Sarina C-molasses 32 32 Heck Group Rocky Point C-molasses 16 16 Bundaberg Sugar Bundaberg C-molasses 10 Lemon Tree Milmerran Sorghum, wheat 67 Downs Fuel Farmers Dalby Sorghum, wheat 80 Austcane Burdekin Cane juice, molasses 100 AgriEnergy Lake Grace All grains 90 New South Wales Manildra Group Nowra Waste starch 100 100 Primary Energy Gunnedah Sorghum 120 AgriEnergy Colleambally All grains 90 Symgrain Quirindi Wheat 100 Victoria AgriEnergy Swan Hill All grains 90 Symgrain West Vic. Wheat 100 Western Australia Primary Energy Kwinana Wheat 160 ETHANOL TOTAL 148 1155

Table 3 Biodiesel Production Capacity in Australia: Current and Proposed Source: Biofuels Task Force (2005), BP Australia and other company sources. Company Location Feedstock(s) Capacity 2007 Planned ML ML Queensland Australian Biodiesel Group Narangba Various 160 160 Eco Tech Biodiesel* Narangba Tallow 30 75 Evergreen Fuels Mossman Used cooking oils 1 1 New South Wales Australian Biodiesel Group* Berkeley V. Various 40 45 Biodiesel Industries Aust. Rutherford UCO and other oils 12 20 Future Fuels Moama 30 30 A J Bush* Sydney 60 Riverina Biofuels Deniliquin 45 Biosel* Sydney 24 Natural Fuels Australia Port Botany 150 Victoria Vilo Assets Laverton UCO, tallow 50 50 Axiom Energy Geelong 150 Biodiesel Producers Barnawartha 60 Western Australia Australian Renewable Fuels Picton Canola and Tallow 45 South Australia Australian Renewable Fuels Largs Bay Tallow 45 S.A. Farmers Federation Gepps Cross 15 Northern Territory Natural Fuels Australia Darwin Palm oil 147 BIODIESEL TOTAL 323 1122

* there is some question as to whether these planned facilities will go ahead

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It was concluded in the biofuels synthesis report (O’Connell et al. 2007) that it is likely that biofuels based on first generation domestic feedstocks will remain at the margins of Australia’s transport future (2 – 5 % of transport fuel needs) given current economic, policy and feedstock production environment. This is because high input agricultural systems, which are geared towards producing food and animal feed, will make the biofuel feedstock more expensive - especially given the upward pressure on grain and oilseed prices from the international impact of rapidly increasing biofuel production, as well as prolonged drought and impacts of climate change in Australia. First generation biofuels may however form a useful first step along a transition pathway to second generation biofuels. Biofuels could move beyond these limits if industries develop around second generation technologies. Current snapshot of bioenergy (heat and power) from biomass Bioenergy refers to the use of biomass (and biogas as an intermediate step) to produce energy in all its forms. This includes the use of biomass to generate heat and power. The status and prospects for bioelectricity and bioheat have not been reviewed by CSIRO in the current suite of reports to RIRDC because this was not within the Terms of Reference. An international snapshot The international situation has been recently summarised by the International Energy Association (IEA) (IEA Energy Technology Essentials ETE03 January 2007). They conclude that co-firing the biomass in modern coal-fired plants with combustion efficiencies of up to 45% (ie 45% of the total energy stored in the biomass is recovered as electricity) is currently the most cost-effective use of biomass for power generation in a global context. Limits to feedstock supply means that dedicated biomass plants for combined heat and power are smaller and have lower electrical efficiency compared to coal plants (30 – 34% using dry biomass, and around 22% for municipal solid waste). In co-generation mode3 the total efficiency may reach 85 – 90%. Biomass integrated gasification in a gas-turbine plant is not yet commercial, but integrated gasification combined cycles using black liquor – a by product from the pulp and paper industry – are already in use. Anaerobic digestion to produce biogas is expanding in small off-grid applications. The IEA conclude that in the short term, co-firing4 remains the most cost-effective use for power generation along with small scale, off-grid use. In the mid-long term, Biomass Integrated Gasification Gas Turbine plants and biorefineries may expand significantly. Biorefineries may yet provide the opportunity for combined, cost effective production of biochemicals, electricity and biofuels (OECD/IEA 2007b). The main barriers to increasing the market share for bioenergy include cost, conversion efficiency, transportation cost, feedstock availability, supply logistics challenges, risks associated with intensive farming (fertilisers, chemicals, biodiversity) (OECD/IEA 2007b). The Australian context Bioenergy is one form of renewable electricity, along with hydro, solar and wind power. The installed capacity for the different forms of renewables, and the different technologies used, is provided in Table 4. Biomass sources account for <7% of the total contribution of renewables (as at July 2006).

3 simultaneous generation of useful heat and power 4 combustion of two different materials at the same time – for example biomass and coal

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Table 4 Proportions of renewable energy from different sources, shown by technology type (based on Geoscience Australia data http://www.ga.gov.au/renewable/) in kW

Fuel Type Cogen FBC Gasn PV RE SC ST Turb Unknown Total *% Biomass 10 24000 11500 3000 38510 0.46 Biomass (bagasse) 301700 301700 3.63 Biomass (biogas) 200 200 0.002 Biomass (digester gas) 3500 3500 0.042 Biomass (landfill methane) 115043 115043 1.38 Biomass (municipal waste) 2500 2500 0.03 Biomass (sewage methane) 1527 8630 10157 0.12 Biomass (woodwaste) 27000 5000 40000 72000 0.86 Hydro 6983986 6983986 83.9 Solar 1957 1957 0.023 Wind 786965 786965 9.46 Total 28727 5000 3500 1957 123683 24000 353200 7773451 3000 8316518 Cogen = cogeneration; FBC = Fluidised Bed Combustion; Gasn = Gasification; PV -= Photovoltaics; RE = Reciprocating Engine; SC = Steam cogeneration; ST = Steam Turbine; Turbine = Turbine A Mandatory Renewable Energy Target (MRET) was introduced in April 2001 to encourage the development of the renewable energy supply industry, and in doing so reduce greenhouse gas emissions. The Office of the Renewable Energy Regulator (ORER) (a statutory agency) administers the Renewable Energy (Electricity) Act 2000 (the Act), the Renewable Energy (Electricity) Charge 2000 and the Renewable Energy (Electricity) Regulations 2001 to increase renewable electricity generation from Australia's renewable energy sources by encouraging the generation of an additional 9,500 GWh of renewable energy per year by 2010 (Australian Government Office of the Renewable Energy Regulator 2007). The MRET applies nationally, with the majority of electricity retailers and wholesale electricity buyers on liable grids exceeding 100 megawatt (MW) in all states and territories contributing proportionately to increase Australia's renewable energy sources (ORER 2007). The mechanism for managing renewable electricity in Australia is through Renewable Energy Certificates (RECs), which are basically an electronic form of currency initiated by the Renewable Energy (Electricity) Act 2000. RECs are created by registered persons, validated by the Office of the Renewable Energy Regulator, traded between registered persons, and eventually surrendered to demonstrate liability compliance against the requirements of the Australian Government's mandatory renewable energy target (ORER 2007). A recent snapshot of the role of bioenergy in the electricity sector was provided by Rossiter (2006) (Figure 2). He showed that biomass was a major contributor to the MRET, supplying 41% of power plants, and 25% of RECs overall, with an estimated investment of $950 million to October 2006. Of the 17.8 million RECs validated to the beginning of October 2006, 3.8 million were for small deemed systems SWH/SGUs mostly producing under 50 RECs each. The remaining 14 million were from accredited power stations with approximately 5.9 M hydro, 3.6 M wind, 1.6 M bagasse, 1.5 M landfill gas, 0.6 M wood waste, 0.5 M black liquor, 0.2 M sewage gas (Rossiter 2006)(Figure 2).

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Figure 2 Performance of Biomass for RECs to January 2006 (from Rossiter 2006) Bioproducts and biorefineries There is strong international interest, research and development, into new bio-based products and in expansion of existing bio-based products. A separate report entitled Biobased products (Haritos 2007) has been produced as part of this series of reports, and contains more detail on this subject. Most biomass is composed of complex mixtures of carbohydrate, protein and oil in additional to more intractable substances such as cellulose and lignin. Bioproducts may use just one of these components but there is a growing awareness that the fates of the entirety of the biomass should be considered. There are several advantages to this inclusive approach: there are fewer waste products to dispose of, and a marginal bio-based product can be made more attractive by offsets earned from the utilisation of the other non-target fractions. Bioproducts can reduce greenhouse gas emissions, enable the agricultural and forest industries to expand their product bases into valuable industrial products and (as most are also biodegradable) reduce the amount of waste. Engineering valuable industrial traits into the cropping system can lead to lower production costs and improve production certainty, which may create new demand and increased use of biological sources. The concept of bio-based products is not new. Prior to the widespread use of petroleum and crude oil, many industrial products such as dyes, solvents and fibres were made from agricultural and forestry materials. Whilst the industrial products markets for starch products and for some oils, like castor oil and erucic acid, are well established, the development of the industrial non-food sector of agricultural crops and its products internationally is generally at a very early stage with considerable research and development into the potential of renewables to replace petroleum-derived materials Analogous to the petroleum refinery, a biorefinery would be expected to produce about 95% of its output as fuels and just 5% for chemical ingredients. The major non-fuel products from a biorefinery are expected to be solvents, plastics, lubricants and fragrances (Fernando et al. 2006, Kamm et al.

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2006). But strongly differentiating the two refineries is the nature of the feedstocks: hydrocarbons versus complex, oxygenated stereo- and enantiomerically pure biomolecules. Pulp and paper mills are a leading example of a biorefinery because they convert a lignocellulosic feedstock into energy, chemicals and paper products. In North America, many older mills are undergoing conversion to focus less on paper products, and more on energy and high value chemicals. An international summary Biorefineries (as a broader concept of biomass conversion to a range of valuable products) are at an early stage of research and development. One of the first challenges is in separation of the complex biological mixtures to obtain more homogeneous input streams. In petroleum refineries, distillation is the key method of fractionation of products (after some initial pre-treatment to remove significant contaminants) but that is not currently possible for the chemical nature of current biological feedstocks as they contain complex carbohydrates, lignin, protein and lipids. Solvent extraction, in particular employing aqueous systems or supercritical carbon dioxide, holds some promise (Mohan et al. 2006, Ragauskas et al. 2006). Phase I, II and III biorefineries have been described and they reflect increasing levels of complexity and capacity to accept less homogeneous feedstocks (Kamm and Kamm 2004). A phase I biorefinery is a facility which has fixed processing capacity e.g. dry milling of grain for ethanol production. A phase II refinery can be described as one that separates product streams and has some flexibility to produce different end products depending on product demand and value. A phase III refinery can accept a mix and range of agricultural feedstocks and varies processing methods to produce a mix of high and low value, high and low volume products and biofuels. A biorefinery that accepts whole crops, green material or lignocellulose are examples of Phase III biorefineries but most are still in the research and development stage. Governments and industry around the world have contributed to formation of strategic documents and roadmaps to facilitate research, technology transfer and delivery of bio-based products into the markets of their countries and for export. They have established large, multi-centre collaborations to help overcome technical, commercialisation and other barriers to the wider development of bio-based materials as these are seen as crucial to reducing emphasis on imported petroleum feedstocks and reducing greenhouse gas emissions. Strategic Plans, roadmaps, market projection and paths to commercialisation have been developed by The Organisation for Economic Co-operation and Development, governments of the USA (in addition to the US Department of Energy), Canada, UK and the European Union. These are reviewed in more detail in Haritos (2007). Internationally there is a huge amount of activity and successful business in developing and marketing bio-based products. These range from small companies that were specifically established to deliver a limited range of products, through to large, multinational companies like Du Pont that have set ambitious targets for use of renewables in their product ranges. A wide range of biomass is being utilised such as oils, fibre, protein, carbohydrates, sugars and lignocellulose and the products are being sourced from existing plant sources, obtained via fermentation, or from genetically engineered plants or microbes. The Australian context Bioproduct development and biorefineries are in their very early stages in Australia. Haritos (2007) identified Australian companies that are currently marketing a wide range of bio-based products including bioplastics, fibres, oils & lubricants and bioconversion technology but are relatively small enterprises. Rudimentary biorefineries have been established mainly around ethanol production for biofuels or bio-oils from wood but have not developed further as yet. There is active Australian research and development into bioproducts and biorefineries, supported by the Research and Development Corporations and the Cooperative Research Centre schemes. This

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research and development covers the full range of activities from investigation of agronomic characteristics of new industrial crops, examination of value chains for bio-based materials and development of novel materials from agricultural by-products and high value products from existing plants and genetically engineered varieties. In Australia, the transition of research into products in both established bioproducts and new materials has been slow, and in many ways, has lagged well behind other developed countries. To improve the transition to wide-scale and profitable use of bio-based products and biorefineries will require on-going research and development which is better coordinated, perhaps as part of a national scheme together with biofuels and bioenergy, and focused on cost-effective delivery and implementation pathways.

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Research and Development Priorities In this chapter we present a research and development framework for biofuels, bioenergy and biobased products that would support the development new industries in these areas. There were four major inputs to this analysis • Extensive literature reviews and analysis of opportunities and knowledge gaps for biofuels

(O’Connell et al. 2007) and bioproducts (Haritos 2007) - but not for bioelectricity and bioheat. • An on-line questionnaire, trialled on paper at the Bioenergy Austraia 2006 conference, and open to

all industry participants about research activities and recommended priorities • A workshop held at CSIRO Sustainable Ecosystems on 23rd March 2007 with the authors of this

report, as well as representatives from RIRDC, NFF, Bioenergy Australia, and Queensland University of Technology to discuss research and development priorities

• A presentation of the research priority framework to Bioenergy Australia on 21 June 2007, which elicited positive feedback and useful commentary (Appendix 3).

Survey details Surveys were used to collect information on existing and potential bioenergy research and development. A paper survey was distributed at the Bioenergy Australia Conference in Perth, 4-8 December 2006, and 14 responses were collected. An online survey, based on the paper survey, was also conducted between 29 January and 5 March 2007, with 55 respondents. Two of the respondents had previously completed the paper survey. The responses from both survey sources were combined, providing a total of 67 responses. Participants were asked to identify the top three priorities for biofuel, bioenergy and bioproduct research, as well as adoption and commercialisation pathways. The survey responses are listed in Appendix 1, and were used to help guide the development of the framework of R & D priorities. Of the 67 survey responses, 49 identified the organisation to which they belonged. The organisations to which participants belonged, as well as the role of each organisation in bioenergy/bioproducts is summarised in Table 1 in Appendix 2. Survey participants were asked to identify existing projects that their organisation conducts or funds on bioenergy or bioproducts in Australia. Summaries of projects which are presently being conducted by participants’ organisations and the existing projects presently being funded by participants’ organisations are given in Table 2 and 3 of Appendix 2. The scope of this work did not provide for a comprehensive consultation process, and the self-selecting nature of survey respondents did not provide an adequate snapshot of industry participants, organisational research capacity, or knowledge needs. As this was not used in a quantitative fashion to determine research priorities, this is not important and does provide a broad overview of research areas of interest to industry, and a good starting point for further consultation.

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R&D Priorities The R&D priorities in biofuels, bioenergy and biobased products are considered together as they share feedstock supply chains, beneficiaries and benefits, especially with regard to replacement of crude oil and petroleum, mitigation of greenhouse gas, and strengthening of rural industries. A research and development framework is presented in Figure 3. Each of the elements of this framework is numbered, and each is separately described in the following section:

• Box 1 – An overarching requirement is recognised as the need to develop a more comprehensive Investment framework, or ‘roadmap’

• Box 2 – Sustainability is a key tenet in biofuels, bioenergy and bioproduct development

• Box 3 – The value chain forms a central axis for the framework—from Biomass resources

• Box 4 – through to Supply logistics

• Box 5 – and Conversion technologies

• Box 6 – The configuration of these three areas in specific regional contexts to match Feedstock production with conversion technologies is recognised as an important and discrete area of research

• Box 7a – Development of product streams

• Box 7b – with an Understanding and analysis of domestic and international market dynamics

• Box 7c – and Identified pathways to markets is critical

• Box 8 – The policy and economic environment for development of the industry spans the breadth of all of the preceding boxes

• Box 9 – Outreach programs

• Box 10 – and Capacity building are also important elements of a comprehensive program of research and development in a new or emerging industry.

Each of the elements is described in the next section, with a distilled version of the survey results, and the Bioenergy Australia forum feedback included.

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Figure 3 Research and Development Framework for Bioenergy, Biofuels and Bioproducts

3. Biomass resources• Current production base• Future production base• Characterisation of biomass

7b. Market analysis• Domestic • International

2. Sustainability Assessment methods, accreditation schemes, Life Cycle Analysis case studies and inventories, biophysical and socio-economic analyses at regional, national and international scales, quantifying benefits and impacts across economic and environmental value chains, obtaining community approval and consumer demand

4. Supplylogistics• Infrastructure• Feedstock

catchment• Harvesting/

scheduling• Pre-processing

5. Conversiontechnologies• Biorefineries• Biocatalytic• Thermo-chemical• Creation of co-products

incl fuel, heat, power, char

• Closed loop systems

7a. Product streams• Identifying and characterising novel products• Uses for co-products• Market testing• Safety testing

9. OutreachEducation, communication, extension, barriers to uptake

6. Matching feedstock production systems to economically viable processing systemsFeedstock security, infrastructure, transport, distance to market, economic threshholds

7c. Pathways for products to markets• Infrastructure• Distribution• Barriers• Disposal

1. R&D Investment Framework or “Roadmap”Identifying uniquely Australian problems/solutions, competitive advantage – national framework for bioenergy; national R&D framework/ roadmap

10. Capacity buildingCommunities and industries with skilled labour, infrastructure, capital etc to develop new industries

8. Policy analysis Impacts of settings, feedbacks, current and future, domestic and international, placing biofuel policy in the context of broader energy and climate

change policy and carbon markets, sequencing of options and strategies for transition

3. Biomass resources• Current production base• Future production base• Characterisation of biomass

7b. Market analysis• Domestic • International

2. Sustainability Assessment methods, accreditation schemes, Life Cycle Analysis case studies and inventories, biophysical and socio-economic analyses at regional, national and international scales, quantifying benefits and impacts across economic and environmental value chains, obtaining community approval and consumer demand

4. Supplylogistics• Infrastructure• Feedstock

catchment• Harvesting/

scheduling• Pre-processing

5. Conversiontechnologies• Biorefineries• Biocatalytic• Thermo-chemical• Creation of co-products

incl fuel, heat, power, char

• Closed loop systems

7a. Product streams• Identifying and characterising novel products• Uses for co-products• Market testing• Safety testing

9. OutreachEducation, communication, extension, barriers to uptake

6. Matching feedstock production systems to economically viable processing systemsFeedstock security, infrastructure, transport, distance to market, economic threshholds

7c. Pathways for products to markets• Infrastructure• Distribution• Barriers• Disposal

1. R&D Investment Framework or “Roadmap”Identifying uniquely Australian problems/solutions, competitive advantage – national framework for bioenergy; national R&D framework/ roadmap

10. Capacity buildingCommunities and industries with skilled labour, infrastructure, capital etc to develop new industries

8. Policy analysis Impacts of settings, feedbacks, current and future, domestic and international, placing biofuel policy in the context of broader energy and climate

change policy and carbon markets, sequencing of options and strategies for transition

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Box 1 R&D investment framework or ‘roadmap’ (see page 12) Many other countries have developed substantial and detailed ‘roadmaps’ of research through to industry development. The Australian biofuels and bioenergy industry is in very early stages of development, and there are numerous calls from industry for a similar ‘roadmap’ to be developed in Australia. The framework presented here could be considered a ‘mud-map’ for research into biofuels, bioenergy and biobased products – but a lot more effort and consultation would be required to turn it into a true ‘roadmap’. The first research priority is therefore for the development of an industry investment framework or ‘roadmap’ – which identifies uniquely Australian problems and solutions, and areas of competitive advantage for this country. Decisions about which research to invest in domestically, and pathways to industry development relevant to Australian production base, resources and demand profiles is a more major activity than could be undertaken within the scope of the current project and requires further research and wide-ranging industry consultation effort in its own right. Comments from survey The need for an R&D roadmap is supported by the survey results and the feedback on the R&D Priorities presentation to the Bioenergy Australia quarterly forum (21st June 2007). Four survey responses directly alluded to this, although just about all of the comments could be taken within the context of supporting development of a ‘roadmap’. Bioenergy Australia members strongly supported development of a strategic investment framework – typical comments included “Don’t duplicate research on which others have a huge lead. We have got to be more strategic about what we do in Australia”, and “Bioenergy is diverse, and diverse research can be piecemeal so we must pick winners. There is risk in diluting our effort if we try and do all things — so we must pick a few winners instead”. Research priorities • Development of a research investment framework or ‘roadmap’ to identify the most likely

technologies to deliver a competitive advantage to Australian industries, and maximise the benefits across economic and environmental value chains.

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Box 2 Sustainability (see page 12) The lack of sustainability of our current systems of energy and fuel use is the key reason that bioenergy, biofuels and bioproducts are on the research agenda at all. Any system for energy, fuel and industrial products based on biomass must be able to clearly demonstrate sustainability credentials over a range of alternatives. Some countries (e.g. European Union) are legislating for sustainability certification of biomass and biofuels as a requirement for importation. The ability to produce accredited biomass or biofuels may present a market advantage for countries like Australia in the future. Sustainability is, however, a difficult concept to operationalise. It contains elements of scientific content (such as greenhouse gas emissions, air quality, land and water impacts) through the life cycle of product use which can be measured, modelled and predicted. Development and application of sustainability criteria and indicators is being progressed in many other countries, and Australia must remain abreast of international methods. Life cycle analysis methodologies are mature, but the results are very specific to the actual production system in question, and the plethora of overseas studies are not readily applicable in Australia. There is a scarcity of data which can be used to assess life cycles of new product pathways or Australian production environments. The methods and data to assess some of the environmental impacts (e.g. the impact of one litre of biodiesel on biodiversity) are poorly developed. Economic viability is one of the pillars of sustainability, and can contribute to driving environmental sustainability in some cases – for example in implementing measures such as water recycling, nutrient replacement, greenhouse gas mitigation that reduce impacts on land and water. Policy analysis has been articulated as a distinct activity (Box 8), but is a critical part of sustainability assessment. The sustainability issues depend partly on the ultimate size of the biofuels or bioproducts industry. For example if the biofuels industry remains at the margins in Australia (ie 2 – 5 % of total transport requirements), sustainability challenges for feedstock production differ little from those of current agricultural systems. The economic sustainability risks would be largely carried by individual biofuel producers and investors, and those directly impacted by the enterprise. Once an industry becomes part of the main game (>10 – 20 % of total transport), the sustainability implications may change the profile of those faced by current agriculture and forestry – with positive or negative impacts depending on how the industry developed (O’Connell et al. 2007). Methods for assessing the sustainability across scales, regions and particular configurations of industry must be developed. There are some conceptual frameworks for assessing sustainability, but none adequately deal with the tradeoffs between different elements of sustainability (for example some options may perform better on some criteria than others). Development and implementation of ‘track and trace’ methods suitable for sustainability certification is required. Even more difficult than the ‘hard science’ (or ‘content’) elements of sustainability is the ‘soft’ science (or ‘process’) components required to obtain a community acceptance, manage consumer demand and link to broader societal use of resources. There are major questions being raised internationally about the social sustainability of fuel alternatives which compete with human food supply. Application of these approaches in relation to development of new sustainable energy and bioproduct industries is critical for a viable and prosperous future industry. Comments from survey and forum “Sustainability is critically important” was one response during the Bioenergy Australia forum presentation. The survey results indicated similar importance to sustainability as an R&D area with eleven respondents primarily pointing their statements at life cycle analysis, impacts (and reductions thereof) of biofuels on the environment and biodiversity, and “potential contribution of biofuels to health improvements”.

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Research priorities A path forward in ensuring the sustainability of the biofuels industry may include the following elements • Develop, test (in case studies) and operationalise robust methods for assessing the sustainability

across scales, regions and particular configurations of industry, including gaining broad public and consumer support

• a national assessment of regional potential for sustainable biomass production (including the impacts of expanding production of lignocellulosic crops, and increasing the removal of agricultural and forest in-field residues)

• Life Cycle Analyses and develop Life Cycle Inventories using common ISO standard methods so as to provide comparable results across range of biomass production systems, conversion technologies and product pathways specific to Australian production systems

• Develop and test methods, and undertake case studies for ‘scaling up’ the ‘per unit’ impacts to cumulative industry benefits and impacts

• analysis of sustainable transition pathways for biofuels in the context of a range of alternative transport futures, given a range of climate change, economic and policy scenarios

• a systematic and scientifically defensible process to develop testable criteria (or other approaches) to ensure sustainable development, which could be applied in legislation

• develop track-and-trace certification mechanisms to ‘sustainably produced’ biomass

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Box 3 Biomass resources (see page 12) Land and water will increasingly be contested for human food, animal feed, fibre, energy, water yield and environmental services. Evaluating the production capacity and sustainability (sustainable yield) of increased production or use of biomass resources is critical to underpin development of new large scale biofuel, bioenergy or bioproduct industries. Already, many of the biodiesel facilities in Australia are operating at less than capacity because of the difficulty in obtaining sufficient feedstock at competitive prices. The biomass resources in Australia available for biofuel and bioenergy production are not well quantified. The resources can be categorised as follows (O’Connell et al. 2007) Current production base A. Feedstocks based on sugar or starch crops already widely grown in Australia for ethanol, or

oilseeds and tallow for biodiesel. The quantum of these feedstocks is generally well understood, although climate change and world commodity markets will have an impact which may change production capacity and economics.

B. Feedstocks suitable for first generation bioenergy, or second generation biofuels – e.g. lignocellulosics for ethanol, butanol, methanol, biogas or electricity including cereal crop (stubble) and sugar (trash and bagasse) residues, annual and perennial grasses, farm forestry crops such as oil mallee, forest products including native forest and plantation residues and thinnings, firewood, and waste streams such as urban woodwaste. The resources in this category are poorly quantified. Sustainability issues including effect of removal of crop and forest residues on ecosystem carbon, and biodiversity as well as cost of production must be addressed in the process of quantifying potential feedstock in this category .

Future production base C. Feedstocks providing different sources of oil or sugar/starch for first generation biofuels -

includes any expansions of crops (e.g. wheat could expand into higher rainfall areas, sugar beet, sweet sorghum, mustard), Genetically Modified (GM) crops, oil bearing trees such as Pongamia pinnata and Jatropha curcas. There is a strong international interest in using non-agricultural land in Australia for growing these plants, but this raises issues of biosecurity (e.g. from weediness) posed by some of these species. In addition, the production potential for these new plants in Australian conditions is poorly understood, as is the capacity to increase oil production and decrease negative plant traits through breeding and GM.

D. Feedstocks for second generation biofuels, bioenergy and biorefineries for range of high value biobased products, with biofuel and energy as co-products. The second generation feedstocks of the future could greatly expand supply – for example, large scale planting of oil mallee, other native woody species are being investigated for a range of new products including novel wood products, bio-based products as well as energy, grasses, GM crops, and algae.

Comments from survey Research into biomass resources was indicated by 26 survey respondents, with typical comments focussing on issues such as “Conducting detailed resource assessments”; “Engineering salt and drought resistant crops for food/energy”; “How to increase yields and decrease prices of Australian biofuel crops”; “New crops for bioenergy”; “Which species for maximum yield”; and “How to use indigenous Australian sources of biomass for bio ethanol and higher value products”.

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Research priorities • scoping which of the myriad of options for increasing feedstock production for energy or

bioproduct markets are most worthy of investing research effort • assessing the potential quantum of biomass in B, C and D in different regions of Australia under

specified scenarios e.g. meeting sustainability criteria, climate change or economic thresholds • investigating the potential of new oilseed trees in category C, including performance in less

productive Australian environments, invasive weed potential, and potential yield increases with plant improvement and agronomy

• assessing sustainability issues including effect of removal of crop and forest residues on ecosystem carbon, and biodiversity as well as cost of production

• capturing benefits and minimising risks across the value chains which integrate biomass production systems across traditional agriculture, forestry and waste management industries

• characterising material properties of the feedstock, their variation and suitability for second and third generation processing opportunities

• routes to high purity, cost effective production of the raw materials for biobased products

• plant metabolic engineering using biotechnology to increase the level and purity of carbohydrate, oil or protein trait of interest

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Box 4 Supply logistics (see page 12) Processing technologies based on food crops mostly have well established harvesting and transport infrastructure, with well understood economics in terms of the transport distances. For many new types of energy crops such as short rotation or coppicing crops, the harvesting machinery is not yet developed. It may be possible to modify existing harvesting techniques for collecting residues (e.g. for sugar trash) – but for other types of woody tree crops or biomass production systems (e.g. ‘phase farming’ with short rotation trees) suitable harvesting systems require further development. Particular biomass supply chains may have complex scheduling requirements due to characteristics of the crop (for example sugar content in sugar cane peaks for a relatively short window, and the crop must be harvested within this time). Integrated biomass supply chains to a facility may require sophisticated scheduling to deal with either the characteristics of the plant, efficient use of facilities etc. In new biomass production systems, there may also be the need for substantial new investment into appropriate infrastructure (processing facilities or new roads such as have been required for plantations in the last decade) or the emergence of “higher density biomass” or small scale economically viable processing facilities. Comments from survey Six responses from the survey were directed at the need for further research on supply logistics. These were primarily targeting the development of technologies/infrastructure for harvesting biomass at low costs, and “Supply chain vulnerabilities to more expensive energy”. The Bioenergy Australia feedback forum elicited comments such as “Distributed resource means that we won’t be viable for at least 20 years as there is a scale issue – can’t have large processing facilities with economic transport distances if there is a distributed resource”. Research priorities • Investigate use of existing small modular processing plant for distributed production of products

&/or energy • Investigate partial local processing options for the most promising new feedstock systems (e.g.

harvesting and briquetting/pelletising technology) • Identify infrastructure requirements and transitions for specific regional opportunities • Once promising regional options have been identified (Boxes 3, 5, 6), investigation into the supply

logistics for particular regional industries

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Box 5 Conversion technologies (see page 12) There is a plethora of potential second and third generation conversion technologies for bioenergy, biofuels and bioproducts being researched internationally, which were very briefly discussed in the ‘snapshot’ overviews at the start of this report. As discussed earlier for Box 1, identification of those processing and conversion technologies which could be developed overseas and brought into Australia as mature technologies, compared to those which would provide Australia with some competitive advantage if researched and developed domestically, is a high priority. It may be advantageous to import technology developed overseas where the quantum of research funding is several orders of magnitude larger than is available in Australia. This may be the case, for example, in some areas of research into lignocellulosic transformation where research funding in the USA dwarfs our own, and may be readily used in Australia once commercialised. However, there are opportunities to harness unique combinations of Australian resources (e.g. flora or different types of transformation technologies) that present competitive advantages for domestic innovation and create sustainable domestic industries. For example our native flora may contain distinctive chemicals, or our bacteria and fungi (or other agents of biotransformation) may offer unique opportunities particularly in the area of biorefineries. Survey comments The area of conversion technologies was the most numerously identified area of research focus by survey participants with 28 responses directed at this area. These covered all aspects of this research area such as developing the technologies needed to derive ethanol from feedstocks (primarily mentioning lignocellulosics), the recovery and use of secondary products, reduction of cost of production, integrating bioenergy into the farming systems, and general comments such as “Investment should be emphasised on conversion technologies”. Bioenergy Australia forum participants made comments including “It would be useful to focus on thermochemical pathways” and “You should not focus on ethanol or biodiesel, but perhaps butanol”. Research priorities • Systematic evaluation of which emerging conversion technologies would be best left to overseas

development and imported and adapted to Australian feedstocks once commercialised, and which technologies show promise in terms of providing a competitive advantage by taking advantage of unique biomaterials or local production circumstances

• For those systems which offer promise, developing feasibility studies and demonstration or pilot plants, developing process engineering for biorefineries producing a range of products including fuel, energy and high value bioproducts (e.g. as was done by RIRDC for the Integrated Tree Processing for oil mallees (Enecon 2001)

• investigation of ‘closed loop’ systems for vertically integrating biomass production, conversion to biofuels and bioproducts, and efficient waste stream management (e.g. for livestock industries; Braid 2007)

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Box 6 Matching feedstock production systems with economically viable processing systems (see page 12)

As shown in Boxes 3, 4 and 5 there are discrete areas of research across the value chain from biomass production through to the conversion technologies. There is a separate task to be done in matching the various configurations of biomass production system through to particular conversion processes, suited to specific regions or industry circumstances (Box 6). Biofuels, bioenergy and bioproducts may present new opportunities to regional Australia, and there are many factors that might be required for success, and models that may be useful as case studies (discussed in more detail in O’Connell et al. 2007). There is however no robust analysis of the extent to which such opportunities could be applicable to regions across Australia. There are opportunities for biodiesel to reach some level of regional self-sufficiency – but the success of this will depend on whether sustainable business models can be developed to achieve the economies of scale, and integration with existing fuel blending and distribution networks. It also critically depends on issues such as security of supply of feedstock (in the face of increasing competition for the use of water), climate change, policy settings and commodity prices. What are the relative costs of production , transport and supply of different types and volumes of biomass feedstocks, how might these be reduced and what policy measures are needed to make biofuels competitive with fossil fuels? The amount of feedstock and the ‘catchment’ area required in order to supply a facility of specified size will differ according to biomass type and its product value, productivity of the region, configuration of the production system and transport distances, and particular processing technology. In some types of production system (such as sugar), the timing and scheduling of harvest is also a critical factor. Transport accounts for a significant proportion of the cost (and energy input) of bioenergy generation. In Australia, where yields of some crops such as grains can be low and variable in comparison to many other countries such as USA or Europe, it may be hard to ever achieve the economies of scale obtained by large 200ML ethanol refineries because the transport distances required will not be financially viable. There is a strong relationship with technologies however – for example biodiesel facilities do not display the economies of scale of ethanol facilities. In the area of heat and power generation, there are emerging technologies for small bioenergy power generators which can be placed close to feedstock sources (on or off grid) - and therefore do not require large feedstock catchments. The economics of transport distances are well understood for some industries – for example in the sugar industry the transport of feedstocks can cost about 10c per km per tonne, making distances of over 30 km uneconomic for small power stations (5 – 10 MW) in Australia (Rutovitz and Passey 2004). These sorts of ‘guideline’ costs are not available for other sources of feedstocks. Oil mallee systems which have sparse distribution of resource in farming land means that transport distances, and gaining a critical mass within the economic transport radius from a processing facility might prove very challenging. Systems which can compact the large volumes into high density briquettes or pellets in the field or forest may help to overcome this problem and make the transport distances more economic. There is currently a fragmented approach with respect to quantifying the current and future resource base for whole-of-biomass (rather than industry specific products such as grain, oilseed or wood products). Research into new woody crops (such as oil mallee) has developed useful frameworks for assessing regional industry potential. However these apply only to a limited range of new tree species, and to limited areas of Australia. If a national understanding of the regional opportunities is required, then further work will be required to bring these elements together in a cohesive and robust framework across the biofuels value chain.

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Survey comments Ten survey responses fell primarily within Box 6, including “Development of bioenergy and biofuels systems optimised for small-scale application in rural Australia”, “What are the relative costs of the different feedstocks, technologies, pathways”, and “Develop cost effective models for harvest, processing and handling and sale of biomass from plantation management/harvest”. Bioenergy Australia forum participants expressed concern regarding the focus on national assessment: “R&D focus is geographically-specific - therefore it is difficult to focus at the national scale rather than regional”. Research priorities • Develop and test methods for assessing regional resources (across agriculture, forestry and waste

industries) and matching to conversion technologies to identify industry opportunities specific to various regions

• Apply these methods to Australian resources to identify areas with promising options for industry development

• Investigate the scales of economy, risks and suitability of distributed compared to centralized biomass conversion systems. These need to be matched to the homogeneity (or heterogeneity) of available biomass, which in turn determines appropriate conversion processes, which in turn has implications for capital and infrastructure of large plants versus the costs of logistics and the flexibility required for different regions.

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Box 7 Products a) Product streams b) Understanding markets c) Pathways for new products to market (see page 12)

There is a spectrum of complexity with respect to products across the areas of bioenergy, biofuels and bioproducts. Product research and specification is not an issue for bioenergy for electricity since it is a very standard product. The biofuels currently produced in Australia are ethanol and biodiesel, and although there are some issues of fuel quality and standards to be considered for biodiesel (O’Connell et al.2007), the research agenda is focussed more towards new generation biofuels such as butanol, or methyltetrahydrofuran (MTHF, also known as levulinic acid) and the various useful properties, suite of co-products, and useabilities of these. The research agenda expands greatly in the area of bioproducts because of the range of possibilities and the limited existing knowledge. Opportunities in biobased products research fall into three general categories (Haritos 2007)

• Products that aim to supply an existing demand with a biobased alternative that is substantially identical. Fuel, heat and power fall into this category along with other industrial petrochemical replacements such as fatty acids and propylene glycol.

• Functionally improved or differentiated products that present opportunities to create new value propositions into current markets. This is exemplified with the rise of PLA and bio-based polyols (that go into polyurethanes)

• Products which are novel and need the creation of new uses and markets for their adoption. Examples of this include new chemistries derived from structural protein bio-polymers and nutraceutical fractions for human consumption

For the former group, price, quality, quantity and reliability of supply will be the determining factors and the research or opportunity focus is mainly around efficiencies of production and processing. These products have known properties and should already have established supply and value chains. An example is a new source of propylene glycol, where the utility is very well known but production costs of the biobased source needs to be competitive with those from a non-renewable source. However its likely that many bio-derived products will have differentiated functionality from current petro-based products requiring a range of technical and commercial inputs to identify novel value propositions to create sustainable value chains for an emerging bioeconomy. The third category may have an identified means of production but requires development of target markets and partners to bring the ideas to utility (Haritos 2007). Survey comments Product streams were the primary area of seven survey responses who commented on particular products “Adding value to agricultural waste material”, and discussed the need for new products “Developing replacements for petrochemicals from bio-based sources”. Bioenergy forum members were strongly focused on this area of R&D, with many comments such as “Products to market is more important than anything else”.

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Research priorities Biobased products research requirements vary with feedstocks used, attributes of the products and the markets that they are destined for. Each product has specific research requirements however Haritos (2007) has identified some general research gaps for biobased products (of which biofuels can be considered a subset). It is difficult to specify research and development exclusively under this activity, because it is strongly linked to the biomass sources, supply chains etc. Areas of useful research includes • Biofuels which can be produced for low cost, and low energy input per unit energy output

• On-going demand for new and innovative biobased products having desirable attributes for industry, including low energy costs of production - discovery research into new products from natural sources with desired characteristics such as functional materials, and engine lubricants

• Cost effective methods of downstream biomass processing to enrich biobased product fractions

• Prepare and test novel biobased products to determine physical characteristics of relevance and value to industry

• Conduct market analysis for novel biobased products to identify likely end-users and potential value and volume demand for the product.

24

Box 8 Policy analysis (see page 12) Like many countries, Australia faces a complex set of challenges, opportunities and decisions with respect to meeting future energy needs. Biofuels, bioenergy and bioproducts can be expected to play a part in this future. It is clear that the economic and policy environment for biofuels is a complex and challenging area. Some of the economic and policy factors affecting biofuels have been discussed in Batten and O’Connell (2007), but there are no available assessments adequately covering the areas of bioenergy and bioproducts. Understanding complex feedbacks between the cost of biomass production and supply for liquid biofuel/bioenergy/bioproduct production, and the impact of government policy, oil prices and carbon trading on the price for biomass feedstock at international, domestic and regional scales is crucial. Maintaining a strong, up-to-date understanding of the international and domestic commodity markets which affect feedstock prices, and the competition between competing markets under various policy, technological, economic and other drivers is essential to keep abreast of this fast moving area of development. A consistent set of policies with well researched intended outcomes, clear transition pathways, clear benefits and minimal risks to the public, future generations and industry will place Australia in an excellent position to secure a sustainable energy future with a stable environment for investor confidence. Survey comments Thirteen survey participants identified the policy and related R&D areas in their responses, with several comments such as “What policy instruments are needed to facilitate the expansion of bioenergy in Australia. Could examine successful schemes in Europe” and more direct policy suggestions such as “Carbon sequestration in soils”. Forum members at the Bioenergy quarterly meeting expressed similar views; “As we are not producing biofuels to capacity, we need work on policy issues to increase our production to meet existing capacity”. Research priorities Identification of relevant desired policy outcomes, and analysis of associated tensions and synergies and implications for policies to stimulate appropriate levels of development of the biofuels area could include • The economic environment is highly uncertain with international commodity prices and drought

interacting to cause price volatility. Ongoing research into economic drivers and thresholds at domestic and international scales – for existing markets (e.g. for feedstocks such as wood) as well as new product markets is critical.

• Investigate policy mechanisms which steer the industry towards sustainable development through mechanisms such as targeted incentives.

• Analysis of policy options to underpin development of a robust policy framework for biofuels, bioenergy and bioproducts within a broader alternative fuels or sustainable energy strategy in Australia, with consistency across the agriculture, forestry, energy, transport and carbon market domains.

• Analysis of potential interactions between policies (and other factors) to ensure that intended benefits are gained, and unintended costs or distortions are minimised. The transitional pathways to a sustainable energy future (ie the sequence of steps and policy changes required to reach the intended destination or target) must also be understood to underpin effective policy development.

25

Box 9 Outreach (see page 12) Any new and emerging industry requires an outreach program in order to facilitate adoption and commercialisation of new technologies and products. Such information dissemination could be in the form of participative research, sound commercialisation strategies, effective liaison between government, research and industry as well as information provision in the form of pamphlets, publications, lectures and talks, conferences or seminars. Survey comments Survey responses include two comments which fit within R&D priorities of box 9, “Commercialisation & support for projects - operations and maintenance issues” and “Identifying viable social implementation of such technologies and land systems”. Research priorities • Identify and implement appropriate outreach activities Box 10 Capacity building Any new industry which requires specialised skills, knowledge, technology, or infrastructure will require human capacity in order to take advantage of growth opportunities. The skill levels of people involved in the entire value chain could be a limiting factor to growth, especially at a time of skill shortages in science and engineering in Australia. Survey comments Two responses to the survey covered Box 10 activities, where one comment was “Social aspect of putting the above all together for small country towns to stop migration to the city”. The bioenergy forum members made no comments related to capacity building research or development, although the comment was made afterwards “Where are there going to be B.Sc. degrees in bioenergy in Australia for people to study?”. Research priorities • Identify capacity shortages or barriers to industry development, and develop appropriate strategies

to address them

26

Other Related Activities In parallel with the development of this framework of research and development for RIRDC, there have been other activities including The Academy of Technological Science and Engineering In July – August 2007, the Academy of Technological Science and Engineering (ATSE) held workshops in Brisbane, Sydney and Melbourne to gather views on Australia's potential for biofuel production and use. The purpose of these workshops is to provide a paper with policy recommendations for consideration by the Australian Government in planning the future for Australia's transport fleet. Subsequent to the ATSE workshops, the Crawford Fund held a conference in Parliament House, Canberra in August 2007 at which international speakers described the global biofuels activity and prospects and exposed global challenges, focusing in the end on the research and development needs for Australia. These were summarised as • strengthen first-generation biofuels technologies • improve the equality of public policy • unlock second-generation technologies and demonstrate second-generation technologies through

partnerships rather than new projects, including an algal bioreactor. Detail of the Conference presentations can be viewed at http://www.crawfordfund.org/publications/conference07ppps.htm CSIRO Energy Transformed Flagship Future Fuels Forum The Future Fuels Forum will be responsible for articulating the major challenges for Australia in arriving at a secure and sustainable transport fuel mix by 2050. The initiative will develop a public report to be delivered by June 2008. Future Fuels Forum activities will include: • providing additional input in scoping the project • advising on a set of scenarios that can be used to explore alternative transport fuels • interpreting and drawing implications from techno-economic modelling and other analysis

developed by project staff • providing insights and expertise in drafting a public report on the activities of the forum. Further information and an invitation to join this forum can be found at http://www.csiro.au/news/futurefuelsforum.html The Clean Energy Council Bioenergy Roadmapping project The Clean Energy Council is undertaking a Bioenergy Roadmapping exercise commencing in 2007. Further details and contacts can be sought from http://www.bcse.org.au/home.asp These activities all help to improve the quality of debate and dissemination of information about opportunities, challenges and likely directions for the future of bioenergy, biofuels and bioproducts in Australia.

27

IEA Bioenergy Australia participates in the International Energy Agency’s Bioenergy program through Bioenergy Australia. IEA Bioenergy is an international collaborative RD&D program involving some 23 countries plus the European Commission. It operates through a series a Tasks, each generally of a three year duration. These Tasks cover key research areas, spanning the whole spectrum of bioenergy from the resources side, to energy conversion technologies, to overarching aspects such as greenhouse gas balances and socio-economic aspects. Bioenergy Australia, led by RIRDC and in which the CSIRO is a participant, currently participates in three Tasks: Task 30 Short Rotation Crops for Bioenergy Systems, Task 38 Greenhouse Gas Balances of Biomass and Bioenergy Systems, and Task 39 Commercialising First and Second Generation Biofuels from Biomass. This participation provides access to overseas networks and research, providing an opportunity for leveraging off overseas experience and knowledge in bioenergy, including biofuels. See http://www.ieabioenergy.com.

28

Concluding Comments and Next Steps The research and development framework presented here is preliminary in nature and primarily aimed at RIRDC to assist with setting the research agenda for their new program in Bioenergy, Bioproducts and Energy. It may also be useful to a broader audience because it represents a ‘mudmap’ of research issues and knowledge gaps required to underpin the further development of industry more generally than just within the new RIRDC research program. It therefore provides a useful basis for a more comprehensive consultation with researchers, industry, government and community than was possible here. There have been many calls for a bioenergy and biofuels ‘roadmap’, which would ideally include building a common vision, specific well-reasoned goals or targets, critical pathways for research, technology development, adoption and commercialisation and industry rollout. Many other countries have progressed substantially with developing such roadmaps, and are starting to implement them. The research and development framework presented here may help government, industry and research agencies to assess the breadth of activities required to underpin development of a sustainable biofuels, bioenergy and bioproducts industry in Australia. It outlines a cohesive approach, points to some of the knowledge needs and research gaps, and provides some contextual setting and relative importance to each of these. These research areas have not been worked through with any rigorous priority setting or ‘critical research pathway’ process, has not included adequate consultation, and requires further detail to be developed within each area. It would be useful to do this at some time in the near future as implementation of the first research priority (Box 1). In the meantime, however, there are clearly other areas which can be researched in parallel with this process. There is currently a high level of interest in bioenergy, biofuels and bioproducts both internationally and domestically. It is time to take advantage of this interest and make the most of the range of opportunities which are currently presented. Australia has excellent opportunities to invest strategically in those areas and technologies which will provide strong competitive advantage, make the most of unique combinations of Australian bio-resources and processing technologies, and develop new industries which can reinvigorate and integrate agriculture and forest industries. The RIRDC Bioenergy, Bioproducts and Energy program can provide leadership and co-ordination to this important industry development.

29

References

Australian Government Office of the Renewable Energy Regulator 2007, 14-Sep-2007-last update, Renewable Energy Certificates (RECs). Available: http://www.orer.gov.au/recs/index.html [2007, 20/09] .

Batten, D. & O'Connell, D. 2007, Biofuels in Australia - some economic and policy issues, Rural Industries Research and Development Corporation, Canberra Australia.

Braid, A. 2007, Biofuels in Australia - biofuel co-products for livestock, Rural Industries Research and Development Corporation, Canberra Australia.

Enecon 2001, Integrated tree processing of mallee eucalypts., RIRDC, Canberra.

Fernando, S., Adhikari, S., Chanrapal, C. & Murali, N. 2006, "Biorefineries: current status, challenges, and future direction", Energy & Fuels, .

Hamelinck, C.N. & Faaij, A. 2006, "Outlook for advanced biofuels", Energy Policy, vol. 34, pp. 3268-3283.

Haritos, V. 2007, Bio-based Products, Rural Industries Research and Development Corporation, Canberra Australia.

Hyde, L. 2006, "Alternative biofuels to those currently utilised and the future prospects", AIAST Biofuels: Paddock to Pump Symposium.

Kamm, B., Kamm, M., Gruber, P. & Kromus, S. 2006, "Biorefinery systems - an overview" in Biorefineries - Industrial processes and products. Status quo and future directions, eds. B. Kamm, P. Gruber & M. Kamm, Wiley-VCH Verlag GmbH & Co., Weiheim, pp. 3-40.

Kamm, B. & Kamm, M. 2004, "Principles of biorefinery", Applied Microbiology and Biotechnology, vol. 64, pp. 137-145.

Mohan, D., Pittman Jr, C.U. & Steele, P.H. 2006, "Pyrolysis of wood/biomass for bio-oil: a critical review", Energy & Fuels, vol. 20, pp. 848-889.

O'Connell, D., Batten, D., O'Connor, M., May, B., Raison, J., Keating, B., Beer, T., Braid, A., Haritos, V., Begley, C., Poole, M., Poulton, P., Graham, S., Dunlop, M., Grant, T., Campbell, P. & Lamb, D. 2007, Biofuels in Australia - issues and prospects, Rural Industries Research and Development Corporation, Canberra Australia.

OECD/IEA 2007a, Biofuel Production, International Energy Agency.

OECD/IEA 2007b, Biomass for power generation and CHP, International Energy Agency.

ORER (Office of the Renewable Energy Regulator) 2007, 14-Sep-2007-last update, Renewable Energy Certificates (RECs). Available: http://www.orer.gov.au/recs/index.html [2007, 20/09] .

Ragauskas, A.J., Williams, C.K., Davison, B.H., Britovsek, G., Cairney, J., Eckert, C.A., Fredrick Jr, W. J., Hallett, J.P., Leak, D.J., Liotta, C.L., Mielenz, J.R., Murphy, R., Templer, R. & Tschaplinski, T. 2006, "The path forward for biofuels and biomaterials", Science, vol. 311, pp. 484-489.

Rossiter, D. 2006, "Mandated Renewable Energy Target - review of contribution from bioenergy", Bioenergy Australia Conference.

Rutovitz, J. & Passey, R. 2004, NSW Bioenergy Handbook, Mark Ellis & Associates, Sydney.

Smeets, E., Junginger, M. & Faaij, A. 2005, Supportive study for the OECD on alternatuve developments in biofuel production across the world, Copernicus Institute for Sustainable Development, Utrecht, The Netherlands.

Stucley, C. 2006, "Wood Processing for Energy and Char", Green Processing 2006, vol. 2006, pp. 77-80.

30

Appendix 1 Survey responses Survey participants were also asked to identify research questions or topics which they considered RIRDC should invest in with regards to biofuels, bioenergy and bioproducts. Table 1 summarises the research questions identified by participants. Table 1 Questions which survey respondents considered RIRDC should be investing in with regards to biofuels, bioenergy and bioproducts. Box ref number references the research questions to the Strategic Research and Development framework in Figure 3.

Research question Adoption/ commercialisation pathways Box ref

Development of transportation fuels from biomass.

The petroleum industry must get involved. 1

Maximize bioenergy from sea water

New invention 1

Net economic benefit of biofuels 1

To examine the role that electricity could play in transport energy - most biofuels generate energy. There is increasing investment in using electricity for transport purposes

1

Impact of using Biofuels on the environment from which they come, contribution to pollution and GHG reduction.

Greenhouse credits for reduced emissions 2

Life cycle analysis studies to identify the most suitable biomass sources and conversion processes for biofuel production

Policy development to promote systems identified as most beneficial

2

Potential contribution of biofuels to health improvements. Can we make a link between air pollution, community health and improvements due to biofuels? Many claims, not much fact.

2

Reduced environmental impacts of biofuels production.

Commercialisation could be through the industry by way of incremental improvements to the existing business or new entrants

2

What is a reasonable way to calculate EREOI (sic) and reduce claims and counter-claims on the performance of biofuels

To establish better ground rules in the scientific literature and to make the findings of EREOI (sic) studies more understandable

2

Implementation of land systems that can have landscape scale solutions for environment [biodiversity-system, climate]and socio economic-cultural outputs

manufacturing lead in gasification and all potential pathways i.e.-polymer/material manufacturing, liquid fuel manufacturing [e.g. methanol, hydrogen], gas making, and other secondary

2,6

Sustainable alternatives to liquid hydrocarbon fuels

2,7

31

Research question Adoption/ commercialisation pathways Box ref

Gearing up: How to sustainable massively expand (10-100 fold increase) a dedicated energy crops without.

Given that huge amounts of land would be necessary, a significant challenge would be the development of cooperation between many landholders and co-ordinating all stakeholders. Also, simultaneous development of the market (if it was canola, the market would be bio-diesel) would need to be considered.

2,8

GHG balances of alternative bioenergy cycles

Influencing government policy to choose sensible options

2,8

Life cycle analysis of biocommodities/ agricultural system/ processing strategies

Relevance to carbon trading 2,8

Sustainability of Biofuels as a creditable resource.

Investment in sustainable biofuel projects 2,8

Assessment of alternative feedstocks for 2nd generation ethanol production in various Australian regions

Microbiogen and other Australian companies could help to commercialize

3

Conducting detailed resource assessments 3

Develop/trial biofuel/woodgas options from harvest waste using thinning etc at site or in central locality to sites

3

Digestate Fertiliser Trials for enhanced growth and water use efficiency in a range of agricultural and horticultural applications.

3

Engineering salt and drought resistant crops for food/energy

More efficient land use and the ability to utilise poor quality land would provide a boon to the farming industry and ultimately, Australian exports.

3

Genetic improvement of woody crops for low rainfall agriculture.

Demonstration of commercial feasibility will see rapid adoption.

3

How to increase yields and decrease prices of Australian biofuel crops.

3

Identification, analysis and optimisation of best non-food, low rainfall adapted, Australian feedstocks for 1st and 2nd generation biofuels.

Public private partnerships fund research and share IP. Biofuels producers and/or farmers commercialise technologies.

3

Low cost substrates for bioenergy Land use change, formation of a new industry

3

New crops for biofuels Farmers grow crops. 1. Oilseeds to crushers, oil to biodiesel manufacturers, Biodiesel to public or blender then to public, meal to fertilizer/stockfeed/industrial use e.g. bioplastics manufacture. 2. Wheat or alternative crops to ethanol plant, ethanol to fuel blender, fuel to public. Byproducts for feed? industry?

3

32

Research question Adoption/ commercialisation pathways Box ref

Productivity of woody crops in low rainfall wheat belt regions

Demonstration of commercial feasibility will see rapid adoption.

3

Sustainable feedstocks for larger scale biodiesel and ethanol production.

3

What are the most efficient biofuel feedstock that are cost effective but do not replace food crops

Through encouraging JV research with industry

3

Which species for maximum yield In-house commercial advantage 3

Development of sustainable production systems, including evaluation/development of novel species for bioenergy applications

Usual ag extension methods 3,2

Strategies for ensuring both biofuels and food needs can be met.

N/A 3,2

Water issues: How to maximise productivity and minimise water usage, while maintaining land-use flexibility.

Potential pathways include: immediate land use changes, implementation of completely new land use applications, modernizing/ improving existing land use practices, development of cultivars that have a greater tolerance for lower rainfall, establishment of integrated water grids, cloud seeding and so on. Obviously, some strategies will change the market equation and these changes would need to be carefully considered.

3,2

Alternative oil sources for biodiesel production

Already in place 3,5

Biodiesel from algae grown in WWTP effluent

3,5

Winterization of biodiesel to make it commercially available.

3,5

Biomass supply chain for short cycle woody crop systems

3,6

Developing Australian technologies for biofuels production from biomass, particularly mallee - one of the few biomass materials which can have a realistic impact in Australia's future energy mixture.

A joint venture of government, industry and farmers associations

3,6

Reducing the cost of establishment of seedlings. At the current price of $1/seedling planted, for the 840,000 hectares of the Avon I estimate that it will cost $2.1 trillion for establishing the resource alone. Never mind the infrastructure and processing facilities.

3,6

33

Research question Adoption/ commercialisation pathways Box ref

The potential for energy cropping via indigenous polyculture on marginal land for use in gasification-based distributed power generation systems.

With appropriate tax and carbon-credit incentives, the development of megawatt-scale 'bush power stations' using gasification technology to sustainable power end-of-line regional communities via native agroforestry on marginal land.

3,6

Use land to capacity by initiating and developing new industries in the Rangelands

MIS and mining companies already involved and interested

3,6

How to use indigenous Australian sources of biomass for bio ethanol and higher value products

3,7

Development of harvest technology for short rotation eucalypts

Collaborate with existing efforts in this area 4

Low-cost infrastructure so that new technologies are affordable e.g. mechanical harvester for oil mallees.

4

Producing wood pellets from used oil mallee biomass

Farmers would become more sustainable, producing wood pellets for export or the local energy market.

4

Proof of scaleability of processing strategies to other biomass sources (other than sugarcane bagasse)

4,3,6

Develop pelleting processes for milling and manufacturing waste to be processed into a higher value transportable/exportable product

Stimulate introduction of low emission cost competitive carbon neutral domestic and institutional wood heating

4,6

Supply chain vulnerabilities to more expensive energy

4,6

Bioenergy integrating power and water desalination

Less demand on government to provide resources as small towns would be self supported as they are producing their own power and water.

5

Carbon Partners Energy From Organic Waste (via Thermal Hydrolysis / High Rate Anaerobic Digestion such as that employed by Carbon Partners), to treat a broad range of municipal and agricultural organic wastes. There are a large number of these facilities already operating in Germany.

We are happy to discuss one-on-one. 5

Ester cloud point lowering technology Existing industry 5

34

Research question Adoption/ commercialisation pathways Box ref

Ethanol: How to cost effectively convert sugars in wood to ethanol and value add to the lignin residue.

There is practically unlimited demand for ethanol in Australia. That is, national ethanol production could be increased by 10 fold and it still would not come anywhere near meeting the 10% limit in petrol. Thus, these is sufficient market pull. However, cost competitiveness of production and access to raw materials is paramount if the market is to grow. Research into improving wood to ethanol technologies would help in both areas.

5

Gasification [conventional and supercritical] technologies for energy, material and water production.

Lead development & expertise in implementation of base resources that offer direct environmental out comes combined with viable sustainable economic outputs particularly to rural land scapes, locally and globally

5

How to achieve improved/more stable GM microbes for bioethanol production

Patenting/industry licencing in Australia and overseas

5

Investment should be emphasised on conversion technologies

5

Lignocellulosic degradation for fermentation

Very broad - assist utilisation of whole crops

5

Low cost transformation technologies for biofuel production

Industrial innovation, patent formation, licensing, land use change, formation of a new industry

5

Maximize bio energy from waste paper New invention 5

'Modules' - i.e. smaller affordable technologies that feed into more complex and expensive ones.

5

Optimisation of second generation processing methods (lignocellulosic and pyrolysis) for Australian feedstocks and markets, especially utilising waste sources.

Public private partnerships fund research and share IP. Biofuels producers and waste creators commercialise technologies.

5

Possibility of oil production from biomass Commercialisation of Australian biomass pyrolysis technology and development of engineering capability to export technology as well

5

Recovery of energy and char products from biomass

Commercialisation of Australian biomass pyrolysis technology and development of engineering capability to export technology as well

5

Reduced cost of power production from biofuels.

5

Sustainable use, application & conversion of biomass into high value products with energy recovery only as a by-product

Private sector investment once a value was placed on carbon. Pleased to help!

5

35

Research question Adoption/ commercialisation pathways Box ref

Technologies for & feasibility of 2nd generation ethanol production (demo plant) from lignocellulosic feedstocks in the near term (3-5 years).

Microbiogen and other Australian companies could help to commercialize

5

Prospects of ligno-cellulosics to ethanol Regular extension to primary producers 5,1

How to bring 2nd generation biofuel technology online (and associated issues - physical limitations of feedstock), economic impacts, social changes required.

5,2

Assisting development of energy related products from woody crops (from pines, blue gums etc through to dryland species) 'ethanol from wood'

Ethanol for wood - longer term steps to making commercial viability. Ethanol from wood a key aspect to overcome the using food crops for fuel issues

5,3

Improve the production method of biodiesel which could be applied to cheaper feedstocks.

5,3

Electricity and desalination from biomass, eliminate roadblocks like harvesters

5,4

Integrating bioenergy production into farming systems

5,6

Bio refineries using trees as feedstocks. 5,7

Biomass or Bio-oil based refinery concepts If possible the processes top get new fuels and chemicals (biorefinery) must be compatible with existing infrastructure. A complete departure from existing concepts will be very costly

5,7

Bio-products from trees (lignin, cellulose and terpene feedstocks)

IP from researchers to industry or farmers directly. Same for other questions

5,7

Development of sub-products from waste streams of biomass processing (materials fertilizers)

5,7

Non-ethanol bio-fuels since ethanol has already been established. Butanol etc should be the new focus.

5,7

Develop cost effective models for harvest, processing and handling and sale of biomass from plantation management/harvest. Prove economics at different scales to assist commercial development by management groups.

Only pathway is to be as commercially realistic and responsive as possible and driven by commercial markets

6

Funding new industries for saline/waterlogged land

MIS companies and mining companies invest and use product

6

What are the relative costs of the different feedstocks, technologies, pathways, etc?

6

Agronomies of feedstocks, scale and economics

Extension - workshops, brochures, skills transfer

6,3

36

Research question Adoption/ commercialisation pathways Box ref

Base load electricity generation from woody crops and waste streams

There are exiting waste streams in major industry plantings that could be of immediate use in providing biomass for energy generation incl base load

6,3

Methods of recovery of timber residue from native or plantation areas into usable feedstock

Increase use of residue timber instead of burning in situ, reduction of GHG gas

6,4,3

Development of bioenergy and biofuels systems optimised for small-scale application in rural Australia.

6,7

The economic viability of various crops for the production of biofuels for: 1. farmers; 2. biofuels manufacturers; 3. consumers

Economic viability studies will determine which path to follow and when.

6,8

Ways to reduce the cost and improve the total production of liquid bioenergy as a petroleum replacement.

Commercialisation could be through the industry by way of incremental improvements to the existing business or new entrants.

6,8

Proof of concept trials / applied R&D for demonstrating commercial and technical viability in a local context.

6,9,10

Alternative glycerine uses in Australia - particularly as a soil wetting agent

7

End-use testing of biochars 7

The development of uses and markets for the by-products of the manufacture biofuels

7

Developing replacements for petrochemicals (i.e. monomers/ polymers) from bio-based sources

New industries and crops slotting into existing high volume markets - no need to create market. Price driven regarding replacement.

7,1

Adding value to agricultural waste material New industries based around recycling of agricultural waste, novel technologies developed/sold/leased

7,5

What does one do with glycerol General benefit to small producers 7,5

Accredit the use of native timber residues for GHG reduction

Increase use of residue timber instead of burning in situ, reduction of GHG

8

Money (government funding) and industry support.

New fuels, infrastructure, vehicle systems 8

Re-allocation of absurd subsidies from fossil diesel users to biofuels producers

State ownership of biofuels industry to break the power of the multinationals

8

To examine the subsidies paid by Australian government to various forms of energy production (fossil fuel, renewable fuel, nuclear) and to calculate the subsidies paid per tonne carbon emitted by these industries

Change government policy with respect to fossil fuel and renewable industries

8

What policy directions are required to assist in development of a sustainable biofuels industry

8

37

Research question Adoption/ commercialisation pathways Box ref

What policy instruments are needed to facilitate the expansion of bioenergy in Australia. Could examine successful schemes in Europe etc

8

Price of certification in the market and mix of technologies that goes with that

Feeds into other independent studies that may use different parameters

8,2

Emergency mass planting for carbon sequestration worldwide

Mass employment in seedling rearing and planting - zero unemployment

8,3

Large-scale carbon bio-sequestration and carbon-in-soil sequestration for immediate GHG mitigation

Government or global insurance-industry mandated carbon sequestration operations taken up by rural agribusinesses.

8,3

Carbon sequestration in soils Private sector investment once a value was placed on carbon. Pleased to help!

8,7

How to produce higher value products at commercial yields?

Patenting/industry licensing in Australia and overseas

8,9

Identify strategies for stimulating & expanding intermediate & final demand for ethanol - e.g. clever incentives, cooperative co-production, discounting, mandating, etc.

8,9

Commercialisation of bioenergy Helps industry commercialisation 8,9,1

Commercialisation & support for projects - operations and maintenance issues

N/A 9,1

Identifying viable social implementation of such technologies and land systems.

9,1

Maximize bioenergy from wind 10

Social aspect of putting the above all together for small country towns to stop migration to the city

10

New technology N/A N/A

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Appendix 2 Survey respondents information on organisational R&D activity and capacity Table 1. Organisations represented by survey respondents, with a description of: the role of each organisation in bioenergy/bioproducts; and the number of responses from each organisation.

Organisation Role in bioenergy/ bioproducts # of responses

Association for the Study of Peak Oil-Australia

1

Australian Renewable Fuels Biodiesel manufacturer 1 AVONGRO Wheatbelt Tree Cropping Incorporated

Looking for innovative uses for woody biomass. We need to plant vast areas of our region for environmental reasons but the revegetation systems need to provide an income to farmers. We have very low rainfall and so less appropriate to traditional sawlog regimes.

1

CANEGROWERS Represents 82% of Queensland's cane growers. We support the development of biofuels and bioproducts as providing opportunities for our members.

1

Carbon Partners Pty Ltd Carbon Partners is a developer of bioenergy projects using advanced German biogas technology.

1

Colley Consulting (for AMPC)

Assist members of red meat industry to identify and develop projects

1

CSIRO Marine and Atmospheric Research, Aspendale

To better understand the economics of alternative transport fuels (including biofuels); and To develop a toolkit for applying principles of industrial ecology (including bioenergy) to future urban & rural development

1

CSIRO Molecular and Health Technologies

Research into new products and value added materials from bio-based sources. E.g. research and development in the area of biorefineries using native Australian plants (mainly trees) as feedstocks to develop chemicals and plastics

2

Curtin University of Technology - Department of Chemical Engineering

Development of innovative technology for biomass and biofuels production

1

CY O'Connor ERADE Village

Expertise in eucalyptus oil applications as by-product of plantations and watching brief on ethanol and biodiesel.

1

Department of Agriculture and Food – Western Australia

Developing new crops On farm land use - production Research on the technical feasibility and profitability of biofuels

3

Department of Environment and Conservation – Western Australia

Research and development with the accent on development 1

Department of Industry and Resources

Developing the business environment to allow bioenergy 1

Department of Industry Tourism and Resources

Considering impacts of the technical and policy developments of biofuels on Australian industry and the economy

1

Department of Primary Industries - NSW

Production of biomass, research into suitable species, use of biomass for bioenergy and bioproducts. Dealing with policy and science especially in relation primary production.

2

Department of Primary Industries - Victoria

Industry development for private forestry, helping develop new industries based around new forests

2

Energetix Biodiesel production. 1

39

Organisation Role in bioenergy/ bioproducts # of responses

Gasification Australia Pty Ltd Small-scale gasification systems for power generation Design, research and manufacture of gasifisers Research of gasifier roles and applications Research into land systems that best imbed the technology

2

Invest Australia Invest Australia was established in 1997 by the Australian Government to attract productive foreign direct investment into Australia, to support sustainable industry growth and development. We achieve this by promoting Australia's competitive advantages as an investment destination and actively facilitating investment projects into Australia.

1

J&J Tucker Environmental Pty Ltd

Crops and manufacturing, trees for rehabilitation 1

Monash University Development of pyrolysis applied technologies 1 Oil Mallee Association Producer 1 Peter Cameron & Associates Consulting to the power and resource industries. 1 Queensland University of Technology

Research provider and consulting engineer. Plant biotechnology, biomass process and product development, energy minimisation in sugar processing, pyrolysis

1

Renewed Fuels Pty Ltd Project (BOO(T)) initiator & developer. 1 Research Institute for Sustainable Energy (Murdoch)

Test alternate fuels. Demonstrate vehicles using alternate fuels. Research new fuels. Provide education programs.

1

Simcoa Operations Charcoal manufacture 1 SMARTimbers marketing cooperative (and Central Victorian Farm Plantations PFDC and Victorian Timber Industry Council)

Private forestry (farm sawlog woodlots) marketing cooperative developing outlets for thinnings and harvest waste

1

South Australian Government Reducing greenhouse emissions. 1 South Australian Research and Development Institute (SARDI)

The SARDI Sustainable Systems Division has developed a new program of Biofuels research (with an initial focus on Biodiesel). This program is led by Principal Scientist Dr Kevin Williams. The primary role of the program is to use existing and new SARDI expertise and infrastructure to research and develop feedstocks for biofuel production. Reliable, affordable sources of feedstock are needed to underpin the rapidly developing Biofuels industry. The SARDI Biofuels group will initially comprise two subprograms focusing on biodiesel feedstock research – oilseed breeding and microalgae cultivation.

1

Sustainable Transport Coalition WA

1

UJL Pty Ltd 1 University of Melbourne R&D in the area of thermochemical conversion. 1 University of NSW Research into use of raw materials including biomass for

bioethanol production; use of GM microbes for C5/C6 conversion 2

University of Sydney - School of Chemistry

Method development and problem solving for biodiesel production. Winterinization of biodiesel.

1

University of Western Australia – Centre for Legumes in Mediterranean Agriculture (CLIMA)

Research and development of alternate oilseed crops as potential feedstock for biodiesel.

1

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Table 2. Projects on bioenergy and bioproducts currently being conducted by participants’ organisations. Project Outline People Involved Organisation/s Involved Contact details

Test plant for biodiesel from tallow, canola etc Andrew Warton [email protected] Pot growing trials using digestate as a soil amendment Wolfgang Schwartz Carbon Partners

Agriculture Services Victoria (part of DPI)

[email protected]

Carbon Partners Energy From Organic Waste (via Thermal Hydrolysis / Anaerobic Digestion)

John Chiodo Carbon Partners Melbourne Water ASIRC

[email protected]

Products from glycerol Andrew Warden CSIRO [email protected] Lignin degradation Michael Zachariou CSIRO [email protected] Bio-Products from lignin Michael Zachariou CSIRO [email protected] Bio-Products from cineole Michael Zachariou CSIRO [email protected] Bio-products from terpenes Michael Zachariou CSIRO [email protected] Cellulases for ethanol production Michael Zachariou CSIRO [email protected] Environmental impacts CSIRO CSIRO Alternative Transport Fuels calculator, etc. Tom Beer et al. CSIRO [email protected] RIRDC Study into Bioenergy/Biofuels Deb O'Connell et al. CSIRO Deborah.o’[email protected] A life cycle analysis of bioenergy production from mallee Dr Hongwei Wu

Mr John Bartle Curtin University of Technology

[email protected] [email protected]

Roles of inorganic species in mallee biomass gasification Dr Hongwei Wu Curtin University of Technology

[email protected]

Hydrogen Production from Biomass through integrated hydrolysis and aqueous phase reforming in hot-compressed water

Dr Hongwei Wu Curtin University of Technology

[email protected]

Eucalyptus oil applications Dr Geoff Pain CY O'Connor ERADE Village

[email protected]

Recycling asphalt with eucalyptus oil Dr Geoff Pain CY O'Connor ERADE Village

[email protected]

Salt bricks from waste plastic and eucalyptus oil Dr Geoff Pain CY O'Connor ERADE Village

[email protected]

Clean coal by eucalyptus oil flotation Dr Geoff Pain CY O'Connor ERADE Village

[email protected]

The energy millennium: Bioenergy in Victoria Graeme Allinon Department of Primary Industries - Victoria

[email protected]

Conversion of emissions to biofuels through microalgae Jonathon Green Energetix [email protected]

41

Project Outline People Involved Organisation/s Involved Contact details Development of a cold flow improvement process for tallow based biodiesel

Mark Fisher Flinders University [email protected]

Resource availability FT, External consultants Gasifier feedstock performance benchmarking John Sanderson Gasification Australia [email protected] Research on land systems based on native ecosystems for reinstatement on degrading agricultural landscapes for gasification outcomes [exclusively and non-exclusively], locally and globally

Mark Feltrin Gasification Australia [email protected]

Research and development of small scale gasifier [Gasification Australia -Tasman class]

Mark Feltrin John Sanderson

Gasification Australia [email protected] [email protected]

Practical implementation of small scale gasifier in conjunction with sustainable forestry on private property in Central Victoria

Mark Feltrin John Sanderson

Gasification Australia [email protected] [email protected]

Investigate plant species to reduce salinity Jim and Joy Tucker J&J Tucker Environmental Pty Ltd

[email protected]

Plant for greenhouse gas sequestration Jim and Joy Tucker J&J Tucker Environmental Pty Ltd

[email protected]

FloraSearch JVAP CRC PBMDS

Biodiesel from tallow MLA Midfield Meat

Bioenergy MLA Biogas capture from anaerobic ponds MLA Bioreactor using solid wastes from meat processing MLA Flexible biomass gasification for distributed electricity generation Prof Chun-Zhu Li

Dr Hongwei Wu Monash University Curtin University of Technology

[email protected] [email protected]

Production of bio-oils from Mallee oil for fuel applications Dr. Chun-Zhu Li Monash University [email protected] GHG stuff Annette Cowie et al NSW Department of Primary

Industries [email protected]

Carbon turnover rate of agrichar Bhupinderpal Singh NSW Department of Primary Industries

[email protected]

Greenhouse gas balance of char as a soil amendment Annette Cowie NSW Department of Primary Industries

[email protected]

Agronomic benefits of char as a soil amendment Lukas van Zwieten NSW Department of Primary Industries

[email protected]

42

Project Outline People Involved Organisation/s Involved Contact details Mallee development Oil Mallee Association

Oil Mallee Company VerveJVAP CRC PBMDS

Biomass inputs to Orica Mining Services Dr Geoff Brent Orica Australia Pty Ltd [email protected] Liquid bio-fuels in Orica Mining Services products Dr Geoff Brent Orica Australia Pty Ltd [email protected] Mineral carbonation Dr Geoff Brent Orica Australia Pty Ltd [email protected] Elimination of N2O from ammonium nitrate manufacture Dr Geoff Brent Orica Australia Pty Ltd [email protected] Renewable energy in ammonium nitrate manufacture Dr Geoff Brent Orica Australia Pty Ltd [email protected] Biological routes to fuel gases Dr Geoff Brent Orica Australia Pty Ltd [email protected] Cellulose expression in biomass crops Les Edye Queensland University of

Technology [email protected]

Lignocellulosic fractionation processes Les Edye Queensland University of Technology

[email protected]

Lignin applications Les Edye Queensland University of Technology

[email protected]

Test alternate fuels - sustainability/renewables. Focus on remote area power systems.

Sandie Rawnsley Research Institute for Sustainable Energy

[email protected]

Evaluation and development of new crops as feedstocks for biodiesel production

Trent Potter SARDI [email protected]

Sustainable production of biodiesel from microalgae Dr Sasi Nayar SARDI [email protected] NCRIS National Photobioreactor research facility Dr Kevin Williams SARDI [email protected] Oilseeds fro biodiesel Kevin Williams SARDI [email protected] Oil for biodiesel from Microalgae Kevin Williams SARDI [email protected] CVFP PFDCV thinnings project Andrew Lang SMARTimbers [email protected] Develop Victorian bioenergy association Andrew Lang SMARTimbers [email protected] Pyrolytic derivation of phenols and furfural David Butt University of Melbourne [email protected] Pilot scale development and evaluation of an improved process for furfural and fuel production from bagasse

David Butt University of Melbourne [email protected]

Policy - facilitate development William Woodward University of NSW [email protected] Economics - cost, life-cycle assessment, viability William Woodward University of NSW [email protected] Resource assessment - bioenergy's contribution to Australia's future energy mix, modelling, cost etc

William Woodward University of NSW [email protected]

43

Project Outline People Involved Organisation/s Involved Contact details Winterization of biodiesel Prof Thomas

Maschmeyer A/Prof Tony Masters Dr Chris Guo Dr Bill Rowlands Dr Thiyakesan

University of Sydney [email protected]

Development of Mustards for Biodiesel Margaret Campbell University of WA [email protected] Development of herbicide tolerance in mustards. Margaret Campbell University of WA [email protected] Mallee charcoal placed at depth to help with nutrient and moisture retention.

Dr Paul Blackwell WA Department of Agriculture and Food

0429102105

Biofuels working group Anne Wilkins WA Department of Agriculture and Food

[email protected]

Developing new industries/crops for saline land. Dr Henry Brockman WA Department of Agriculture and Food

[email protected]

Developing new industries (bio-diesel) for the Rangelands (pastoral area) Dr Henry Brockman WA Department of Agriculture and Food

[email protected]

Biomass Market Intelligence Report Australian and state governments, industry associations and individual players

Biomass Foreign Investment Lead reports Australian and state governments, industry associations and individual players

Development of a continuous flow transesterification process for biodiesel production

Development of a continuous flow acid esterification process for biodiesel production

Biomass as fuel & reductant in modern pyrometallurgical processes Biomass in iron and Steel industry Utilisation of waste biomass in base metals smelting Develop alternative biomass feedstocks - low cost, sealable, closed nutrient cycle algal biomass production

44

Table 3 Projects on bioenergy and bioproducts currently being funded by participants’ organisations. Italics indicate that the project is also mentioned in Table 2

Project outline Who manages the project

Organisation/s Contact details

Carbon Partners Energy From Organic Waste (via Thermal Hydrolysis / Anaerobic Digestion)

Carbon Partners Melbourne Water ASIRC

[email protected]

Pot growing trials using digestate as a soil amendment Wolfgang Schwartz Carbon Partners, Agriculture Services Victoria (part of DPI)

[email protected]

Metallurgical charcoal CRC SMP CSIRO Minerals Curtin Uni Chem Eng

Glycerol products Andrew Warden CSIRO [email protected] CSIRO Alternative Transport Fuels calculator, etc. Tom Beer et al. CSIRO [email protected] RIRDC Study into Bioenergy/Biofuels Deb O'Connell et al CSIRO Deborah.o’[email protected] biofuels working group Anne Wilkins Department of Agriculture

WA [email protected]

Joint partner (with MLA and others) providing funding for the development of a cold flow improvement additive and/or process for tallow based biodiesel

Mark Fisher Flinders University MLA

[email protected]

Research on land systems based on native ecosystems for reinstatement on degrading agricultural landscapes for gasification outcomes[exclusively and non-exclusively], locally and globally

Gasification Australia 4 Finch St, Notting Hill , VIC

Practical implementation of small scale gasifier [Gasification Australia -Tasman class] in conjunction with sustainable forestry on private property in Central Victoria

Gasification Australia 4 Finch St, Notting Hill , VIC

Research and development of small scale gasifier Gasification Australia 4 Finch St, Notting Hill , VIC Biomass supply chain (paddock to processor) JVAP

FFI CRC OMA/OMC

Carbon turnover rate of agrichar Bhupinderpal Singh NSW Department of Primary Industries

[email protected]

Greenhouse gas balance of char as a soil amendment Annette Cowie NSW Department of Primary Industries

[email protected]

45

Project outline Who manages the project

Organisation/s Contact details

Agronomic benefits of char as a soil amendment Lukas van Zwieten NSW Department of Primary Industries

[email protected]

SARDI Biofuels Group Program Dr Kevin Williams SARDI [email protected]

Oilseeds fro biodiesel Dr Kevin Williams SARDI [email protected] Oil for biodiesel from Microalgae Dr Kevin Williams SARDI [email protected] Bioenergy Technology Study SMEC Pyrolytic derivation of phenols and furfural David Butt University of Melbourne [email protected]

Pilot scale development and evaluation of an improved process for furfural and fuel production from bagasse

David Butt University of Melbourne [email protected]

Eucalyptus oil extraction Verve

46

Appendix 3 Feedback on R&D framework from Bioenergy Australia forum Feedback on R&D Priorities, a presentation by Deborah O’Connell (CSIRO) and Roslyn Prinsley (RIRDC) Attendees at the Bioenergy Australia Quarterly Forum, held at CSIRO Gungahlin on 21 June 2007, were invited to make responses and comments on the R&D Priorities as presented. The following summaries are based on notes recorded on the day by Will Woodward and Michael O’Connor. Similar responses are grouped together under one of four headings. Strategic Research Investment

• Amazed at the impetus and activity that is occurring in the USA not Australia. The research focus is quite ‘newish’ in Australia. Time to get going on this now.

• Bioenergy is diverse, and diverse research can be piecemeal so we must pick winners. There is risk in diluting our effort if we try and do all things — so we must pick a few winners instead.

• Don’t duplicate research on which others have a huge lead. Got to be more strategic about what we do in Australia. Ethanol is important but from 2011 there may be threats from imports.

• Don’t duplicate research, be strategic. • How we can compete with the dollars invested in research by US when they put in billions? • Involve other R&D groups. More interaction across R&D commissions is required. • Need to focus on research priorities specific to Australia. No point doing what USDA, DOE is

doing and duplicate research — they also have far more money. • R&D focus is geographically-specific - therefore it is difficult to focus at the national scale

rather than regional. • Suggest picking representatives from industry and to hold workshops to form focus questions. • We have to remain aware that we do this in a commoditized world. Find breakthrough areas

and focus on them first. • Work out Australia’s comparative advantage and put research money there.

Science and Sustainability

• Do some research on effects of globalisation and effect on ethanol trade ie how would the importation of ethanol of Brazil affect Australia.

• Focus on sustainability as this issue underpins bioenergy. Sustainability must be emphasized. • Need to include further work on use of char as soil amendment. • Should not focus on ethanol or biodiesel but perhaps butanol. • Sustainability is also relevant. • Sustainability is critically important • Useful to focus on thermo-chemical pathways.

Economics and markets • As we are not producing biofuels to capacity, we need work on policy issues to increase our

production to meet existing capacity. • Distributed resource means that we won’t be viable for at least 20 years as there is a scale

issue — can’t have large processing facilities with economic transport distances if there is a distributed resource.

• More focus on products to market. • No one solution. Focus on the process of products to market. • Not sufficient emphasis on markets in R&D priorities framework. Need to start with markets

and track back (look at associated markets etc). Globalisation means we should focus on

47

exports. We need to know how to defend an industry we build, focus on mandates. Oil monopolies will not accept biofuels produced in Australia until there are mandates. If mandated, supply will follow, need demand. Would like to see in the years ahead an ethanol industry. Fuel industry is highly monopolised and at present they have much bigger issues. Need a sustainable market.

• Products to market is more important than anything else. • Products to markets!! It is so important. Must understand access to markets. • We have done quite a bit of work of economics and it is uneconomic. Economics will however

change eg. with peak oil. The R&D approach presented here is excellent.

Comments on the Framework • R&D framework is great. I like what was presented today. • Good use of ‘think tank’ approach to raise and explore these issues. • I like the R&D framework presented.