Chapter I: Introduction - Fedebiocombustibles I - Introduction.pdf · prospective vision of...

Chapter I:

Introduction

PREPARED TO: Inter-American Development Bank (IDB)

Ministry of Mining and Energy

PREPARED BY: Consortium CUE

DATE: January 2012

CITY: Medellin

BID Banco Interamericano de Desarrollo

MME Ministerio de Minas y Energía

MADR Ministerio de Agricultura y Desarrollo Rural

MAVDT Ministerio del Medio Ambiente y Desarrollo Territorial

DNP Departamento Nacional de Planeación

Project:

“Strategies of sustainable energy and biofuels

for Colombia ATN/JC 10826 CO and ATN/JF 10827 CO”

“Assessment of biofuels chain production

life cycle in Colombia”.

Biofuels Sustainability in Colombia – Chapter I: Introduction

TABLE OF CONTENTS

1 STUDY STRUCTURE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

2 INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

2.1 BACKGROUND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

2.2 ABOUT THE AUTHORS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

2.3 OBJECTIVES OF THE STUDY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

2.4 METHODOLOGY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

2.5 FRAMEWORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

3 REFERENCES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11


LIST OF TABLES

Table 1: Area of oil palm production in the world (in thousands hectares/year)………………… 7

Table 2: Annual production yields by zone (in tons per hectare)………………………………………… 8

Table 3: Sugar cane world production……………………………………………………………………….……… 10

LIST OF FIGURES

Figure 1: The five components of the study.............................................................................................. 4

Figure 2: Geographic location of production areas and processing sites……………………………. 6

Figure 3: Global ethanol production development, substrates distinction, in thousand

million liters. Source: FAO/OECD agricultural Outlook 2009……………………………………………… 9

Figure 4: World sugar productivity (sugar ton Average per hectare-year). Source: LMC

International, 2008……………………………………………………………………………………………………………… 9


GLOSSARY

AGB Above Ground Biomass

AWC Associated work Cooperative

BGB Below Ground Biomass

BLIHR Business Leaders Initiative on Human Rights

CDM Clean Development Mechanism

CED Cumulative Energy Demand

CF Carbon Fraction

CH Swiss ecoinvent data classification

CML Environmental Sciences Institute, Leiden University

COD Chemical Oxygen Demand

CRGV Cauca River Geographical Valley

CSA Consortium Study Authors (NCPML-UPB-EMPA)

DALY Disability Adjusted Life Years

DOM Decomposed Organic Matter

ECEA Ecoinvent Classification to European Average

EI99 Eco indicator 99

EtOH Ethanol

FAO Food and Agriculture Organization of United Nations

FFB Fresh Fruit Brunches

GBEP Global Bioenergy Partnership

GDP Gross Domestic Product

GHG Greenhouse Gases

GIS Geographic Information System

GRI Global Reporting Initiative

GWP Global Warming Potential

IALC Impact Assessment Life Cycle

IAvH Instituto de Investigación de Recursos Biológicos Alexander

von Humboldt

IDB Inter-American Development Bank

IDEAM Instituto de Hidrología Meteorología y Estudios Ambientales

IEA International Energy Agency

IFC International Finance Corporation

IGAC Instituto Geográfico Agustín Codazzi

ILO International Labor Organization

iLUC indirect Land Use Change

IPCC Intergovernmental Panel on Climate Change

LCI Life Cycle Inventory

LFC Life Cycle Analysis

LQI Life Quality Index

LUC Land Use Change

MARD Ministry of Agriculture y Rural Development


MEHTD Ministry of Environment, Housing and Territorial

Development

NSPA National System of Protected Areas

PAH Polycyclic Aromatic Hydrocarbons

PDD Project Design Document

PM Particulate Matter

PME Palm methylester

RED Renewable Energy Directive

RSB Round table on Sustainable Biofuels

RSPO Roundtable on Sustainable Palm Oil

SAUNNPS Special Administrative Unit of Natural National Parks System

SD Standard Deviation

SLCA Social Life Cycle Analysis

SOC Soil Organic Carbon

SQCB Sustainability Quick Check for Biofuels

TSP Total Solid Particles

UBN Unsatisfied Basic Needs

UCTE Union for the coordination of Transmission of Electricity

(Europe)

UNFCCC United Nations Framework Convention on Climate Change

VOC Volatile Organic Compounds

WC Workers Confederation

WWF World Wide Fund for Nature

WWT Wastewater Treatment


1. Study Structure

This report contains the results of the study “Biofuels chain production life cycle

assessment in Colombia”, hired by the Colombian government with the support of Inter-

American Development Bank – IDB.

The report is divided into the following chapters:

Chapter I: Introduction

Chapter II: LCA Study – Environmental Impact.

Chapter III: GIS Study – Potential Expansion.

Chapter IV: Sustainability Analysis

Chapter V: Toolkit

Chapter VI: Declaration of Development Interested Parties- IDB

For each component, they are described the results related to the methodological

approach, their variables and collected information. IDB.


2. Introduction

2.1 Background

The development of the renewable energy sector has been

favored due to climate change and the expected scarcity of

fossil fuels. Biofuels have the potential to increase export

incomes, increase farmers’ incomes and to obtain

environmental benefits (IEA 2007). Because of these social,

economic and environmental opportunities, global fuels

production has rapidly grown since several countries are using

policy instruments to promote biofuels. However, recent

research shows potential impacts of biofuels on food security

(FAO 2008). In addition, biofuels represent a higher financial

risk for rural poor population and it can lead to an increased

pressure on natural resources and biodiversity conservation

areas (Greiler 2007).

Inter-American Development Bank

“…Colombia is the second largest biofuels

producer in Latin America, after Brazil.

However, there is a significant technology

gap that needs to be closed in order to

Colombia to transform itself from a biofuel

producer into a bioenergy world leader…”

“… Biofuels industry can produce significant

byproducts or positive externalities, such as:

Energy (cogeneration with sugar cane

bagasse), carbon credits (for fuel

substitution, waste water and vinasse

treatment), animal food (soybean

processing residues, beet or yucca), jobs in

rural areas and create new opportunities to

regions that are under the scourge of illicit

crops production and guerrilla activity …”

increase national energy security and to export an additional product to the global market.

The construction of biofuels value chains has the additional advantage of generating jobs

at various education levels, from field personnel with low educational level to professionals

in different technical, administrative, legal, management, etc. fields.

Inter-American Development Bank

“… With the recent announcements of substituting 20% of gasoline in

the next 20 years, and the Free Trade Agreement currently under

discussion in United States and Colombia Congress, the possibilities of

exporting biofuels from Colombia to the United States, duty-free, is a

huge opportunity and challenge. Thus, with the vast lands availability,

excluding deforestation, livestock lands or crops substitution for

human consumption, there is a great potential for biofuels production

expansion in Colombia. The technical support that the Bank can

provide to Colombia government will be essential to identify

sustainable use means and energy generation, as well as sustainable

biofuels production …”

Particularly in tropical countries like Colombia,

social and environmental impacts associated to

deforestation are a critical aspect (Monahan

2008). On the other hand, tropical regions offer

adequate conditions for biofuels production

due to high yields and multiple harvests per

year. If unusable areas are available, biofuels

production may be a feasible option to


Some certification schemes are being developed, aiming to promote biofuels, while

maintaining environmental and socioeconomic impacts within certain limits. Currently,

several parallel certification schemes are being developed:

UK Renewable Transportation Fuel Obligation RTFO (Dehue, Hamelinck et al. 2007)

Swiss mineral oil tax redemption for sustainable biofuels (Leuenberger and Huber-

Hotz 2006)

EU directive for renewable energy (EU-Commission 2008)

Californian low carbon fuel standard (CARB 2009)

Roundtable for Sustainable Biofuels (RSB 2008)

This abundance of certification schemes creates an unclear situation for producers, and it

weakens society acceptance towards sustainable actions. However, for biofuel-producing

countries like Colombia, it is important to be consistent with most international regulations

in order to promote export markets.

It is also important to construct national regulations for biofuels production and

sustainable use with the aim of minimizing adverse effects and maximize the positive

potential of future biofuels use for Colombia.

For this, UNEP (UNEP, 2009), based on different Biofuels studies, recommends to assess

not only Climate Change, but also impacts as eutrophication and acidification, indirect

effects in land use change, among others (later described in methodology part),

throughout Biofuels life cycle.

2.2 About the authors

This study was financed by the IDB through the nonrefundable Technical Cooperation

Agreement N° ATN/JC-10826-CO and ATN/JF-10827-CO signed with the Ministry of

Mining and Energy, who acts as beneficiary. It was conducted by the Consortium formed

by Swiss Federal Laboratories for Technology and Materials Science – EMPA –

(www.empa.ch), National Center for Cleaner Production and Environmental Technologies

of Colombia – CNPMLTA- (www.cnpml.org), and Pontifical Bolivarian University in

Colombia –UPB- (www.upb.edu.co). Associated to these entities, in this participated

different expert consultants on specific issues, both national and international.

Dr. Rainer Zah was the Scientific Study Director, EMPA, who coordinated technical work

team activities. The Project Coordinator and Consortium Representative was the Engineer

Carlos Arango, Executive Director of National Center for Cleaner Production.

http://www.empa.ch/

http://www.cnpml.org/

http://www.upb.edu.co/


We thank Colombia Government representatives, who led by the Ministry of Mining and

Energy, made important comments and contributions to the study: especially to the

professionals of the Directorate of Hydrocarbons of the Ministry of Mining and Energy,

Ministry of Agriculture, Ministry of Environment, Housing and Territorial Development, and

National Planning Department.

We also take into account the discussions and contributions made by different

stakeholders during carious meetings and communications plus among them we highlight:

Association of Sugar cane Cultivators of Colombia, Sugar Cane Research Centre in

Colombia, Cenicaña, Oil Palm Cultivators National Federation, Oil Palm Research Centre

Corporation, National Federation of Colombia and Ecopetrol Biofuels.

However, the lead authors (Consortium), maintain the main responsibility in the event of an

error and its content.

2.3 Objectives of the Study

The project aims to assess production chain sustainability, sugarcane and oil palm biofuels

distribution and use compared to equivalent fossil fuel in Colombia, to demonstrate its

favorability and accurately understand their limits.

The project follows a systematic approach to achieve the proposed goals:

Figure 1: The five components of the study


In a first step, the environmental impacts on the entire biofuels life cycle were evaluated by

using Life Cycle Analysis –LCA.

In the next step, natural and infrastructure preconditions for biofuels production in

Colombia were evaluated, supported in Geographic Information Systems (GIS), combined

with knowledge related to current agriculture practices and processing technologies, to

define and characterize biofuels current production systems in Colombia. Likewise a

prospective vision of socio-environmental and technology conditions was developed to

expand production.

Environmental and socio-economic performance of biofuels production systems was

integrated and evaluated using sustainability analysis, and compliance with national and

international references and frameworks was verified.

An internet-based free access tool was developed to allow stakeholders to individually

model relevant stages of biofuels value chains and to access to the results of this study.

2.4 Methodology

In this Life Cycle Analysis study, after analyzing the life cycle inventory and getting the

inventory associates to the functional unit, the data are classified into environmental

impact categories through different methodologies elaborated by the scientific

community, which are classified as Single Point, Mid points and End points. Single point

results are widely presented in Chapter 2, Midpoint and Endpoint assessment results are

presented in Chapter 2 Annex.

Single Point: This methodology was used to assess only one impact category (e.g.

Ecological Footprint, Cumulative Energy Demand, Water Footprint among others) for this

study it was specifically used the related category related to Cumulative Energy Demand

(CED) and Climate Change, which by themselves have not sufficient basis for assessing

environmental impairment, however, Climate Change Category if highly important for its

global reach. These methods use characterization factors, which in the case of Climate

Change is known as Global Warming Potential (GWP) that convert greenhouse gases that


has been obtained in the Life Cycle Inventory in CO2 equivalent kilograms. (To see

formulas and factors, see chapter LCA annexes).

2.5 Framework

This study takes place at potential and already established sites. Selected sites are

presented in the following map.

Figure 2: Geographic location of production areas and processing sites


For sugar cane, information of crops associated to four of the existing distilleries in the

Cauca River Geographic Valley was considered.

For oil palm, crops associated to four biodiesel plants were studied, covering 3 of the four

study areas.

For both raw materials, sugar cane and oil palm, average conditions, optimal production

(best case, 20% more productive per region) and dreadful production (worst case, 20% less

productive per region) were evaluated.

Oil Palm

The main oil palm producers in the world are Indonesia and Malaysia, which in 2008

represented the 75,6% of the total oil palm planted area in the world. Colombia

participates with 1,9% of world total planted area, as shown in Table 1.

Table 1: Area of oil palm production in the world (in thousands hectares/year)

Country 2004 2005 2006 2007 2008

Part. 2008

(%)

Indonesia 3.320 3.690 4.110 4.540 4.980 42,4

Malaysia 3.402 3.552 3.678 3.741 3.900 33,2

Thailand 298 316 340 410 450 3,8

Nigeria 367 370 378 390 405 3,4

Colombia 153 164 178 200 221 1,9

Ecuador 176 190 198 203 207 1,8

Ivory Coast 152 160 167 208 215 1,8

Papúa New Guinea 85 98 92 100 17 1

Others 667 696 730 954 1.246 10,6

Total 8.620 9.226 9.871 10.746 11.741 100

Variation 7,0 7,0 8,9 9,3

Source: FEDEPALMA. Oil World Annual 2009.

Moreover, the highest crude palm oil yields per hectare in the world are in Malaysia with

4,55 ton of crude oil per hectare, while in Colombia is 3,51 ton of crude oil per hectare1.

Palm oil production in Colombia is presented in the northern, central, eastern and western

zones.

1 FEDEPALMA. Oil World Annual 2009. Figure 22. Countries with the highest crude palm oil yield in 2008 (in

tons per hectare). Page 121.


Eastern area has 22 extraction plants in the departments of Caquetá, Casanare and

Meta.

At north, there are 14 extraction plants in Antioquia, Bolivar, Cesar and Magdalena.

In the central area, there are 6 extraction plants in Cesar, North of Santander and

Santander.

In the west, there are 7 extraction plants in the department of Nariño.

For each zone, yields are different, but Colombia has the following indicators:

Table 2: Annual production yields by zone (in tons per hectare)

Product Zones 2004 2005 2006 2007 2008 Variation (%)

Oil palm fruit

Eastern 19,56 18,44 19,29 16,33 14,76 -9,6

North 21,44 20,73 18,48 17,05 15,15 -11,1

Central 20,42 20,85 21,71 22,40 23,48 4,8

Western 19,47 19,07 19,36 15,45 12,98 -16,0

TOTAL 20,28 19,79 19,41 17,94 16,86 -6,0

Variation (%) 15,4 -2,4 -1,9 -7,6 -6,0

Crude palm oil

Eastern 3,95 3,91 3,99 3,39 3,08 -15

North 4,39 4,26 3,87 3,51 3,2 -9,4

Central 4,15 4,29 4,45 4,57 4,98 2,8

Western 3,93 3,92 3,59 3,02 2,24 -15,9

TOTAL 4,11 4,11 4,02 3,67 3,51 -8,6

Variation (%) 15,4 -2,4 -1,9 -7,6 -6,0

Palm kernel

Eastern 0,88 0,92 0,93 0,78 0,72 -16,5

North 1,03 1,05 0,90 0,82 0,72 -9,7

Central 1,04 1,00 0,97 1,09 1,14 12,0

Western 0,80 0,83 0,74 0,63 0,51 -14,3

TOTAL 0,95 0,97 0,91 0,85 0,80 -6,5

Variation (%) 17,6 1,5 -6,0 -6,5 -5,2

Source: FEDEPALMA. Oil World Annual 2009.

Palm oil has different uses in the production of basic consumption goods and supplies for

other companies such as: edible liquid oil, butter, frying fat, baking grease, confectionery

fat, ice cream fat, soap, vanapasti and concentrated food mixtures.


It has also application for the oleo chemical industry, as raw material for fatty alcohols,

emulsifiers, methyl esters, glycerol and as finished product for fuels, lubricants, water paint

and surfactants.2

Figure 3: Global ethanol production development, substrates distinction, in thousand million

liters. Source: FAO/OECD agricultural Outlook 2009

Sugar cane is a perennial grass from South Asia. Nowadays, it is cultivated in all tropical

regions. Major sugar cane producers are Brazil and India with an approximate annual

production of 650 and 350 million tons, respectively (FAOSTAT, 2009). Colombia is the

seventh largest producer, with an approximate annual production of 40 million tons.

About half of this amount is used to produce sugar and ethanol (20.3 million tons in 2010-

Asocaña (2011)). Most of the cultivated cane is used for sugar production, especially in

China and India, which manly produce sugar for domestic market. The main sugar cane

ethanol producer is Brazil, where half of sugar cane production is for ethanol production.

Colombia is the first country in terms of agricultural productivity (see Figure 4).

2 FEDEPALMA. Oil World Annual 2009. Page 39.


Figure 4: World sugar productivity (sugar ton Average per hectare-year). Source: LMC

International, 2008

Nowadays, Colombia is the second largest sugar cane and bioethanol producer in Latin

America after Brazil.

Table 3: Sugar cane world production

No Country Total cane production [tons/year]

1 Brazil 648.921.280

2 India 348.187.900

3 China 124.917.502

4 Thailand 73.501.610

5 Pakistan 63.920.000

6 Mexico 51.106.900

7 Colombia 38.500.000

8 Australia 33.973.000

9 Argentina 29.950.000

10 United States 27.603.000

Source: www.finagro.com.co based on FAO Statistics Division data.

Cane industry for sugar production in Colombia, is traditionally concentrated in the Cauca

River Geographic Valley, in areas comprising the departments of Cauca, Valle del Cauca

and Risaralda. In this tropical floodplain up to 1000 m elevation, production is possible

throughout the year, generating high yields per area unit. However, due to growing

demand, new sugar cane production developments are emerging in other regions (for

sugar cane and/or ethanol production).

http://www.finagro.com.co/


3 References

Asocaña (2011). Informe Anual 2009 - 2010. Asocaña. Cali, Colombia.

CARB (2009). Californian Low Carbon Fuel Standard. Resolution 09-31. S. o. California.

Sacramento: 19.

Dehue, B., C. Hamelinck, et al. (2007). sustainability reporting within the RTFO: Framework

Report. RTFO, Ecofys: 83.

EU-Commission (2008). "Directive 2008/30/EC of the European Parliament and of the

Council on the promotion of the use of energy from renewable sources." Official

Journal of the European Union: 61.

FAO (2008). "The State of Food Security in the World 2008."

FAOSTAT (2009). Agriculture Data, Food and Agriculture Organization of the United

Nations. Sugar cane.

Greiler, Y. (2007). Biofuels - Opportunities or Thread for the Poor? Berne, Swiss Agency for

Development and Cooperation SDC - Natural Resources and Environment Division:

10.

IEA (2007). Potential Contribution of Bioenergy to the World's Future Energy Demand.

Paris, IEA Bioenergy: 12.

Leuenberger, M. and A. Huber-Hotz (2006). Botschaft zur Änderung des

Mineralölsteuergesetzes. Bern: 30.

Monahan, J. (2008). Afro-Colombians fight biodiesel producers BBC News. Bogota.

Rosa, L. et al. Biofuel contribution to mitigate fossil fuel CO2emissions: Comparing sugar

cane ethanol in Brazil with corn ethanol and discussing land use for food production

and deforestation. http://jrse.aip.org/resource/1/jrsebh/v1/i3/p033111_s1

RSB (2008). Roundtable on Sustainable Biofuels: Global Principles and criteria for

sustainable biofuels production. Version Zero. Lausanne, EPFL: 12.


UNEP (2009). Assessing biofuels: towards sustainable production and use of resources.

Obtain of http://www.unep.org/resourcepanel/Publications/AssessingBiofuels/tabid

/56055/Default.aspx. Pag 31.

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