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D1.3 Strength and opportunities of near- to-practice non-food crops (NFCs)
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D1.3 Strength and opportunities of near-to-practice non-food crops (NFCs)

PANACEA. Non Food Crops For a EU Bioeconomy

D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

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Deliverable Title: D1.3 Strength and opportunities of near-to-practice non-food crops (NFCs) Deliverable Lead: Imperial College London (ICL) Related Work package: WP1 Author(s): Calliope Panoutsou, Asha Singh, Thomas N Christensen (ICL) Contributor(s): CRES, UNIBO Communication level: PU Public PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) Grant Agreement Number: 773501 Programme: Horizon 2020 Start date of Project: November 2017 Duration: 40 months Project coordinator: CRES

PANACEA. Non Food Crops For a EU Bioeconomy

D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

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Abstract

PANACEA has prioritised a set of near-to-practice non-food crops (NFCs) for their suitability and adaptability to local agro-climatic conditions and their potential to deliver raw materials for the European Bioeconomy. The crops are grouped based on their specific traits in lignocellulosic, carbohydrate, oil, and specialty. This report presents the strengths and opportunities of these near-to-practice NFCs in the participating countries. The work is a desk study based on literature review and multiple consultations with the project partners and stakeholders from the PANACEA ‘Multi-actor forum’. Three criteria have guided the evaluation of the crops’ strengths: a) productivity and ability of the selected NFCs to be grown using existing machinery; b) ability of the selected NFCs to produce feedstock for multiple markets and c) sustainability and profitability of the selected NFCs. Specific indicators from the 2014-2020 Common Agricultural Policy (CAP)1 and other sources have been allocated to the criteria to evaluate crop performance in quantitative and qualitative terms. The analysis of the opportunities has been based on input from the PANACEA partners for the national biobased industry as well as supporting policies for the uptake of the crops as raw materials for bioeconomy. The results indicate that near-to-practice lignocellulosic crops exhibit high yields, have low input requirements, can be grown in marginal land and can produce raw material for bio-based sectors, bioenergy and biofuels. Moreover, certain crops (e.g., cardoon, switchgrass, willow, etc.) have been used for phytoextraction and soil remediation which improves the soil fertility and restores soil carbon. Carbohydrate crops are also high yielding, nitrogen and radiation efficient crops with wide ecological adaptation and can be used for biomaterials, bioenergy and biofuels. Oil crops have short growing cycles and can be integrated to crop rotation schemes. Rapeseed, sunflower and soy are the main crops cultivated in Europe at the moment while there are also others (camelina, hemp, rapeseed, castor, safflower, sunflower, crambe, lupin, etc.) which are near to practice and can deliver raw material for several sectors within the European Bioeconomy. Specialty crops (lavender, calendula, peppermint, rosemary etc.) can be grown in both small- and large-scale farms. These crops have good yielding capacity, available propagation material and mechanization systems making them easy to adopt by farmers while there is also a strong interest from bio-based industries for food additives, pharmaceuticals, etc.

1 CAP Impact Indicators, Available from https://ec.europa.eu/agriculture/sites/agriculture/files/cap-indicators/impact/2016-impact-indicators-fiches.pdf,

PANACEA. Non Food Crops For a EU Bioeconomy

D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

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Contents Abstract ............................................................................................................................................. 3

1. Introduction ................................................................................................................................... 6

2. Methodology ................................................................................................................................. 8

2.1 Indicators .................................................................................................................................... 9

2.2 Near-to-practice non-food crops in PANACEA ...................................................................... 10

3. Strengths and opportunities of the near to practice non-food crops ........................................... 14

3.1. Productivity and ability to be grown in large scale using existing machinery .................... 14

3.2. Ability to produce feedstock for multiple markets .............................................................. 17

3.3. Sustainability ....................................................................................................................... 19

3.4. Profitability .......................................................................................................................... 21

3.5. Biobased Industries and Market .......................................................................................... 23

3.6. Supporting biomass policies ................................................................................................ 28

........................................................................................................................................................ 28

4. Conclusions................................................................................................................................. 32

ANNEXES ........................................................................................................................................ 34

1 Introduction

PANACEA. Non Food Crops For a EU Bioeconomy D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

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1. Introduction Cultivation of non-food crops (NFCs) and their use as raw materials for the European bioeconomy can offer significant opportunities for climate change mitigation, rural development, and transition to low carbon bioeconomy. According to The Circular Economy and the Bioeconomy2, the European bioeconomy is a resource intensive sector in which agriculture constitutes 63% of the total biomass supply and forestry 36% (EEA, 2018). Regarding biomass uses, food and feed accounts for 62% of the total EU biomass use whereas biomaterials account for 19% and bioenergy for 19% (EEA, 2018). The use of NFCs for multiple end uses has strong potential considering that innovation in biorefinery processes has increased the possibilities to diversify biomass end-uses and the support for advanced biorefineries has also increased (6)3 cited in EEA 2018). NFCs can therefore broaden the European biomass supply base and secure raw material for the resource intensive bioeconomy. When cultivated under sustainable conditions they can contribute significant environmental and socio-economic benefits.

PANACEA project’s definition of NFCs are crops which do not enter the food chains and are used to produce wide range of bio-based products like polymers, lubricants, construction materials, pharmaceuticals as well as bioenergy and biofuels. NFCs and their residues have exhibited both opportunities as well as challenges to penetrate the European Agriculture and European bio-economy sphere. A wide range of NFCs plantations can be found in Europe, targeting the production of bio-based products and bioenergy. Near-to-practice NFCs are those crops which have shown scientific results with potential of sustainable production, readily available market of propagation materials like seed and seedlings and recognized interest from bio-based industries to use the feedstock from NFCs.

2 EEA, 2018 EEA Report No 8/2018 The Circular Economy and the Bioeconomy- Partners in Sustainability, Available from https://www.eea.europa.eu/publications/circular-economy-and-bioeconomy] 3Rönnlund, I., Pursula, T., Bröckl, M., Hakala, L., Luoma, P., Aho, M., Pathan, A. & Pallesen, B. E. (2014). Creating value from bioresources: Innovation in Nordic Bioeconomy. Nordic Innovation

2 Methodology

PANACEA. Non Food Crops For a EU Bioeconomy D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

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2. Methodology

The main objective for this task is to identify strengths and opportunities for the near to practice NFCs, as identified under Task 1.24 for the following criteria:

a) productivity and ability to be grown using existing machinery, b) ability to produce feedstock for multiple markets, c) sustainability and profitability.

The outputs of the task provided input to the overall SWOT analysis of Task 2.3 and guided the roadmap development in Task 3.4 for a successful introduction of the near to practice NFCs into current agricultural activities in Europe and the participating countries. The work presented is a desk study review which capitalized on Deliverable 1.24 as well as on discussions and inputs from project partners. Figure 1 Flow diagram of workflow around Task 1.3.

Over the project period, the ongoing stakeholders’ consultations and feedback during the national value chain events provided input and validation for the strengths and opportunities of the selected NFCs. To ensure the analysis provides a framework that is fit for future policy recommendations, in the foreseen roadmaps (Task 3.4) a set of selected Common Agricultural Policy (CAP) impact indicators have been used together with other indicators to identify the strength of each crop. The opportunities for selected near-to-practice crops were analysed in the context of the national biobased industry as well as supporting policies for the uptake of the crops as raw materials for bioeconomy.

Figure 1 Flow diagram of workflow around Task 1.3

4 http://www.panacea-h2020.eu/wp-content/uploads/2019/05/D1.2-Inventory-of-near-to-practice-NFC.pdf

PANACEA. Non Food Crops For a EU Bioeconomy D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

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2.1 Indicators The Common Agricultural Policy (2014-2020) had sixteen impact indicators5 (Figure 2 CAP indicators categories according to the sustainability dimensions (in green environmental measures; in blue economic and in yellow social). The different color indicates the impact on different sustainability pillars, which is blue for economic, green for environmental and yellow for social. All these indicators aim to provide the monitoring and evaluating framework for the European CAP and are not directly related to the strength and opportunities analysis for crops. Figure 2 CAP indicators categories according to the sustainability dimensions (in green environmental measures; in blue economic and in yellow social)

For the work presented in this report the number of CAP indicators has been narrowed down to five and has been complemented with another eight, in total thirteen indicators. The rationale of choosing these five CAP indicators is that these crops are/or will be agricultural commodities and any planning, regulation and support will be developed under the framework of the Common Agricultural policy at EU or national level. Table 1 and Annex II describe the indicators, their definition, the rationale for their selection and the measuring units. Table 1 Criteria and indicators used to identify strengths & opportunities of the selected NFCs in PANACEA (in bold the selected CAP indicators)

Criteria Indicators

Productivity and ability to be grown at large scale

-Geoclimatic suitability

-Availability of propagation materials

-Availability of mechanization for cultivation and harvesting

-Crop Yield

Ability to produce feedstock for multiple markets

-Recognized interests for multiple end-uses

Sustainability -Soil organic carbon (SOC)

-GHG emission from agriculture

-Water abstraction in agriculture

-Input (fertilizer and pesticides) requirements (assessed using water quality)

-Employment

Profitability -Production costs

-Net profit margin for farmers

-Market price for crops

5 CAP Impact Indicators 2014-2020. https://ec.europa.eu/info/files/impact-indicator-fiches_en. CAP Impact

indicators in the common monitoring and evaluation framework of CAP measure the impact of policy interventions

for the longer term and when there are effects beyond the immediate period.

PANACEA. Non Food Crops For a EU Bioeconomy D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

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2.2 Near-to-practice non-food crops in PANACEA

“Near-to-practice non-food crops6 are those crops which have shown scientific results with potential of sustainable production, readily available market of propagation materials like seed and seedlings and recognized interest from bio-based industries to use the feedstock derived from NFCs”. The Deliverable D1.27 presented the list of twenty-nine (29) near-to-practice NFCs which are suitable crops to grow in different European regions. Table 2 Selection of near-to-practice NFCs by country partners provides an outline of the selection of near-to-practice non-food crops (NFCs) by country partners in PANACEA. These are further grouped to lignocellulosic, carbohydrate, oil and specialty crops. Lignocellulosic crops include woody species like (willow, poplar, eucalyptus), grass or herbaceous species (miscanthus, switchgrass, reed canary grass) and fiber species (hemp, flax). Carbohydrate crops8 include species with a range of compounds from simple sugar (monosaccharides) to more complex starch and non-starch (polysaccharides). These compounds are stored in crops in different forms can be extracted through various processes. In Europe, at present, the major carbohydrate crops are wheat, maize (corn), sugar beet, potato, barley, rice, sweet sorghum and chicory although only a small proportion of the total grown area is for industrial purposes. Oil crops9 include both annual (usually called oilseeds) and perennial plants whose seeds, fruits or mesocarp and nuts are valued mainly for the edible or industrial oils that are extracted from them. Specialty crops are defined by USDA10 as “fruits and vegetables, tree nuts, dried fruits and horticulture and nursery crops, including floriculture.” The legal definition of specialty crops is, however, intimately tied to the definition of horticulture and its various components. Horticulture is defined as that branch of agriculture concerned with intensively cultivated plants that are used by people for food, for medicinal purposes, and for aesthetic gratification. Horticultural plants are commonly divided into those that are edible, those that are used for culinary or medicinal purposes, and those that are used for ornamental or aesthetic purposes.

6 Definition of near-to-practice crops came from Deliverable D1.2 Inventory of near-to-practice NFC which was agreed in collaboration with PANACEA partners. 7 Deliverable D1.2 Inventory of near-to-practice NFC 8 Definition of carbohydrate crops from FAO. www.fao.org/3/W8079E/w8079e0g.htm Global trends in production and consumption of carbohydrate foods 9 Definition of oil crops from FAO. www.fao.org/es/faodef/fdef06e.htm Oil-Bearing Crops and Derived Products 10Definition of specialty crops from USDA. https://www.ams.usda.gov/sites/default/files/media/USDASpecialtyCropDefinition.pdf

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Table 2 Selection of near-to-practice NFCs by country partners. Production area in hectares (ha) and average or range of biomass yield in t/ha/yr or yield* indicates t(DM)/ha/yr. Seed yield is indicated by (s).

Geoclimatic zones Mediterranean Atlantic Lusitanian Continental/Boreal

Countries (no of crops selected as near-to-practice) GR IT (7) ES (14) NL UK (5) FR (13) PT (6) PL (5) LT (6) RO

Poplar (Woody) 46,000/ 12-20* 2,925/ 8 7,500/ 8-10* 700/ NA

Miscanthus 7,057/ 12-16 4,000/ 8-15* 2000/ 7-20

Willow (Woody) 7,700/ 8.5-11.4 * 4000/ 53

Cardoon 3,000/ 8-18 NA/ 14 85/ 12, 2 (s)

Switchgrass NA/ 8-15*

Giant Reed NA/ 40* NA/ NA

Eucalyptus (woody) NA/ 12

Hemp 9,182/ 9-11

Black Locust (woody)

Reed Canary Grass

Sugar beet NA/ 66-89

Triticale 47,587/ 3.36

Sorghum 50,000/10-20* NA/ 6-20*

Lupin

Kenaf

PANACEA. Non Food Crops For a EU Bioeconomy D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

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Geoclimatic zones Mediterranean

Atlantic

Lusitanian

Continental/Boreal

Countries (no of crops selected as near-to-practice) GR IT (7) ES (14) NL UK (5) FR (13) PT (6) PL (5) LT (6) RO

Camelina 50/ (1.5-2.5) (s) NA/ (2.5-3) (s) 2,000/ (1-2.5) (s) NA/ 1 (s)

Hemp 4000/ (0.5) (s)

Castor

Rapeseed (HEAR) NA/ (3.5) 35,000/ (3-4)* 145,205/(2.5)

Safflower

Flax NA/ (1.5-3) (s)

Sunflower 580,000/ (2-2.5)* NA/(1.79) (s)

Crambe NA/ (1.2-1.8) (s)

Ethiopian mustard

Lupin NA/ (3.5-4) (s) NA/ NA

Lavender NA/ NA NA/ (1000-1500)11

Guayule NA/(0.2-1) latex

Calendula

Peppermint NA/ (1-2) NA/ NA

Rosemary NA/NA

Russian Dandelion

11 lb dried bulbs/acre

PANACEA. Non Food Crops For a EU Bioeconomy D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

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3 Strengths and opportunities of near to practice

non-food crops

PANACEA. Non Food Crops For a EU Bioeconomy D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

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3. Strengths and opportunities of the near to practice non-food crops

This section presents the strengths for each crop type based on the following criteria using the indicators selected (see Annex II):

a) productivity and ability to be grown in large scale using existing machinery b) ability to produce feedstock for multiple markets c) sustainability and profitability

Opportunities of the crops are presented based on the existence of:

a) Biobased industries, biorefineries and research projects b) Supporting biomass policies

All country partners provided input (please refer to Annex I: Country reports for details) for the selected crops based on their research experience and knowledge acquired in the country specific context. We have followed the similar TRL assessment methodology as followed in Deliverable 1.2. The input provided from country partners for each indicator was aggregated and presented in the following sections under each criterion. TRL>7

a) industrial production already available at commercial scale b) used at commercial scale for multiple end-uses c) high

TRL5-7

a) production available at demo scale b) recognized for its multiple end-uses c) medium

TRL3-5

a) research to production development b) recognized end-use but still at the research level c) low

TRL<3

a) basic research data available b) no recognized end-use c) very low

Figure 3 Technology Readiness Level (TRL) for the criteria used in assessing strengths for NFCs

3.1. Productivity and ability to be grown in large scale using existing machinery

This section discusses the crops’ ability to be grown at larger scale using existing machinery. It is measured as the technological readiness level (TRL) of the crop production to be increased without any further innovation. TRL has a scale 1 to 9. TRL 1 is the lowest, indicating the earliest stage of development for a new crop, and TRL 9 is the highest. This indicator can help farmers understand the level of innovation regarding crop cultivation and land management practices. This deliverable also follows the deliverable D1.2 TRL assessment method and assesses the productivity and ability to be grown using existing machinery using the indicators: geoclimatic suitability, availability of propagation materials and mechanization systems and crop yield. Italy: Productivity of all the crops selected as near-to-practice for Italy -poplar, giant reed, cardoon, sorghum, camelina is good except for guayule (Di Candilo and Facciotto, 2012; Francaviglia, R.,et al., 2016;

PANACEA. Non Food Crops For a EU Bioeconomy D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

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Mauromicale, G. et. al., 2014; Gherbin, 1998 )12,13,14,15,16 Researchers have also reported that hemp’s productivity could also be increased with improvements in mechanization for establishment and harvesting (Cosentino et al., 2013)17. Spain: Cardoon and lupin have shown high productivity in comparison to other selected near-to-practice crops like camelina, flax, peppermint, chamomile and lavender (Ierna et al., 2012 as cited Mauromicale et al.,2014)18. Productivity of both chamomile and flax can be improved by improving the availability of propagation and other input materials. United Kingdom: All crops selected as near-to-practice for the UK (poplar, miscanthus, sugar beet and rapeseed and lavender) have exhibited good productivity.19 France: Productivity for most of the crops selected as near-to-practice for France -switchgrass, hemp, corn, sorghum, cereals, buck wheat, rapeseed (HEAR), camelina, sunflower- is good (Monti and Zegada-Lizarazu,

2007; Nazli et al., 2018 ; Jiang et. al., 2019).20,21,22.. Productivity for miscanthus and giant reed can be

increased by improving the availability of propagation materials. Portugal: Among the crops selected for Portugal, eucalyptus performance in all indicators linked to

productivity was very good (Campinhos,1999)23. Lupin, cardoon and sunflower also performed well except

(Gominho J. et al., 2014; Figueiredo et al., 2017)24,25 cardoon’s productivity could increase with the improvement in the availability of propagation materials. Peppermint and rosemary’s productivity were low. Poland: Miscanthus, poplar and willow have good productivity (Stolarski,et al.,2018; Stolarski,et al.,2015)26,

27in Poland as they are geo-climatically suitable and there is availability of propagation materials and mechanization machineries for establishment and harvesting and have good yields. Camelina and crambe are suitable geo-climatically however their current yield is low (Stolarski,et al.,2019)28. Crambe cultivation can expand with the improvement in the availability of propagation materials.

12 Di Candilo, M., Facciotto G. 2012, Colture da biomassa ad uso energetico. Potenzialità e prospettive. Sherwood 18: 183 (2S) 10-19 13 Francaviglia, R., Bruno, A., Falcucci, M., Farina, R., Renzi, G., Russo, D. E., ... & Neri, U. (2016). Yields and quality of Cynara cardunculus L. wild and cultivated cardoon genotypes. A case study from a marginal land in Central Italy. European journal of agronomy, 72, 10-19. 14 Mauromicale, G., Sortino, O., Pesce, G. R., Agnello, M., & Mauro, R. P. (2014). Suitability of cultivated and wild cardoon as a sustainable bioenergy crop for low input cultivation in low quality Mediterranean soils. Industrial Crops and Products, 57, 82-89. 15 Ibid (Francaviglia, R., et al., 2016) 16 Paolo Gherbin, 1998. Guayule. In “Le colture di nicchia”, M.T. Amaducci, V. Marzi, G. Venturi (Eds), Edagricole (Bologna, Italy), 99-104. 17 Cosentino SL, Riggi E, Testa G, Scordia D, Copani VJIc, products. Evaluation of European developed fibre hemp genotypes (Cannabis sativa L.) in semi-arid Mediterranean environment. 2013;50:312-24. 18 Mauromicale G, Sortino O, Pesce GR, Agnello M, Mauro RPJIC, Products. Suitability of cultivated and wild cardoon as a sustainable bioenergy crop for low input cultivation in low quality Mediterranean soils. 2014;57:82-9. 19 (DEFRA, 2007; Forest Research, 2003; DEFRA, 2018; Agro Business Consultants Ltd, 2019; Farmers Weekly) 20 Jiang, D., Hao, M., Fu, J., Liu, K., & Yan, X. (2019). Potential bioethanol production from sweet sorghum on marginal land in China. Journal of Cleaner Production, 220, 225-234. 21 Monti, A., & Zegada-Lizarazu, W. (2016). Sixteen-year biomass yield and soil carbon storage of giant reed (Arundo donax L.) grown under variable nitrogen fertilization rates. BioEnergy research, 9(1), 248-256. 22 Nazli, R. I., Tansi, V., Öztürk, H. H., & Kusvuran, A. (2018). Miscanthus, switchgrass, giant reed, and bulbous canary grass as potential bioenergy crops in a semi-arid Mediterranean environment. Industrial Crops and Products, 125, 9-23. 23 Campinhos, E. (1999). Sustainable plantations of high-yield Eucalyptus trees for production of fiber: the Aracruz case. In Planted forests: Contributions to the quest for sustainable societies (pp. 129-143). Springer, Dordrecht. 24 Figueiredo, F., Castanheira, É. G., & Freire, F. (2017). Life-cycle assessment of irrigated and rainfed sunflower addressing uncertainty and land use change scenarios. Journal of Cleaner Production, 140, 436-444 25 Gominho, J., Lourençoa, A., Curtb, M. D., Fernándezb, J., & Pereiraa, H. (2014). Cynara cardunculus in large scale cultivation. A case study in Portugal. CHEMICAL ENGINEERING, 37. 26 Stolarski, M.J., et al., Short rotation coppices, grasses and other herbaceous crops: Biomass properties versus 26 genotypes and harvest time. Industrial Crops and Products, 2018. 119: p. 22-32. 27 Stolarski, M., et al., Effect of Increased Soil Fertility on the Yield and Energy Value of Short-Rotation Woody Crops. BioEnergy Research, 2015. 8(3): p. 1136-1147. 28 Stolarski, M.J., et al., Camelina and crambe production – Energy efficiency indices depending on nitrogen fertilizer application. Industrial Crops and Products, 2019. 137: p. 386-395.

PANACEA. Non Food Crops For a EU Bioeconomy D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

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Lithuania: Hemp, poplar, willow, triticale, rapeseed and camelina -all crops selected for Lithuania as near-to-practice have shown good performance in all indicators linked to productivity. Triticale, rapeseed and camelina comparatively have better productivity.29,30,31

Greece: Switchgrass and hemp exhibit high yields and have been grown at large scale using existing machinery while camelina, castor and lupin are crops with good yielding capacity that have not yet been grown at large scale.

Table 3 Productivity and ability to be grown in large scale using existing machinery

Country Crops GR IT ES NL UK FR PT

PL

LT

Poplar (woody)

Miscanthus

Willow (woody)

Cardoon

Switchgrass

Giant Reed

Eucalyptus (woody)

Hemp (ligno)

Black Locust (woody

Reed Canary Grass

Sugar beet

Sorghum

Lupin (ligno)

Triticale

Camelina

Hemp (oil)

Castor

Rapeseed (HEAR)

Flax

Sunflower

Crambe

Ethiopian mustard

Lupin (oil)

Lavender

Guayule

Calendula

Peppermint

Rosemary

Russian Dandelion

The Netherlands: Poplar, miscanthus and hemp exhibit high yields and have been grown at large scale using existing machinery while lupin and Russian Dandelion have good yields, but they are still at small farm scale.

29 https://manoukis.lt/naujienos/rinka/lietuvoje-javu-derlingumas-vienas-maziausiu-europoje 30 https://manoukis.lt/naujienos/rinka/lietuvoje-javu-derlingumas-vienas-maziausiu-europoje; 31 https://www.manoukis.lt/mano-ukis-zurnalas/2005/02/aliejiniu-augalu-ir-javu-misiniai-ekologiniame-ukyje/

PANACEA. Non Food Crops For a EU Bioeconomy D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

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3.2. Ability to produce feedstock for multiple markets This indicator assesses the ability of the selected NFCs to produce feedstock for multiple markets. Table 4 Ability to produce feedstock for multiple markets

Country

Crops GR IT ES NL UK FR PT

PL

LT

Poplar (Woody)

Miscanthus

Willow (Woody)

Cardoon

Switchgrass

Giant Reed

Eucalyptus (woody)

Hemp (ligno)

Black Locust (woody

Reed Canary Grass

Sugar beet

Sorghum

Lupin

Triticale

Camelina

Hemp (oil)

Castor

Rapeseed (HEAR)

Flax

Sunflower

Crambe

Ethiopian mustard

Lupin

Lavender

Guayule

Calendula

Peppermint

Rosemary

Russian Dandelion

The NFCs uses are categorized as:

• Pharmaceuticals (crops used for health or medicine purposes)

• Polymers (crops used for natural plastic, rubber)

• Lubricants, surfactants (crops used for waxes, coatings)

• Building and construction materials (crops used for insulation, resources for building materials etc.)

• Composites (crops used as fibers, combined materials, including textile and paper)

• Bioenergy (crops used for electricity and heat production and biofuels)

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Italy: Except for camelina and guayule all other crops have good interest from industries because of their possible end-uses. Cardoon is used as a primary crop by biorefinery Matrica32 to extract pelargonic and azelaic acids which are building blocks for high-value added products. There is an interest in poplar and giant reed for large industrial scale production of bioethanol and this has been demonstrated by projects like BIOLYFE33 and FORBIO34. Spain: All crops have recognized interest for their multiple end-uses with camelina and lupin having higher market demand. Camelina company in Spain is supporting the production of camelina and there is high demand for lupin because of their high protein content. United Kingdom: All selected crops are already used commercially. Miscanthus, poplar and rapeseed are used for bioenergy while lavender is used for pharmaceutical, perfumery and biocosmetic purposes. The country has a long tradition of sugar beet farming for supply to the food/ feed and industrial sectors. There are also several research and development activities which support the technological advancement and innovative biorefinery processes to break down complex structure into bioactive compounds to produce high-value products. France: All selected near-to-practice crops have good interest for their multiple uses. Sorghum, corn and cereals, rapeseed are already used for biofuels but slowly being researched for biomaterials and biochemicals uses. Lignocellulosic crops (miscanthus, switchgrass and giant reed) are used for bioenergy. Hemp is also used by some companies to make bio composites and insulation materials. Portugal: Cardoon and eucalyptus are already in use for biopharmaceutical purposes. Eucalyptus is traditionally used in paper and pulp industry in Portugal. Lupin, sunflower, peppermint, rosemary all have multiple end uses, however they still need additional support to for a higher market uptake. Poland: Willow, poplar and miscanthus cultivation is mainly done for bioenergy purposes. Camelina and crambe receive high interest from oleo chemistry industry for their use as lubricants, rubber additives, base for paints and coatings, waxes etc. Lithuania: Except for poplar and miscanthus there is recognized market interest for hemp, rapeseed, camelina and triticale. Fiber treatment plants are established in Lithuania to improve the processing facilities for feedstock like hemp. Greece: All selected near-to-practice crops have good interest for their multiple uses. Switchgrass can be used for bioenergy and building materials. Hemp has strong potential for the textiles and sustainable fashion industries. Linseed offers very good opportunities for the production of oil and textile fibres. Lupin can be used for bioactive compounds. Castor and camelina can produce feedstock for polymers, lubricants and surfactants, biofuels and pharmaceuticals. The Netherlands: All selected near-to-practice crops have good interest for their multiple uses. The country has a long tradition of sugar beet farming for supply to the food/ feed and industrial sectors. Hemp has strong potential for the textiles and sustainable fashion industries. Miscanthus can be used for advanced biofuels and building materials. Linseed offers very good opportunities for the production of oil and textile fibres.

32 http://www.matrica.it/default.asp?ver=en 33 https://www.biolyfe.eu/production-plant.html 34 https://forbio-project.eu/

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3.3. Sustainability Environmental sustainability is assessed based on the crops’ ability to increase soil carbon or improve soil fertility, ability to reduce greenhouse gas emission during production of crops, input requirements (water, fertilizer, pesticide, herbicide). Social sustainability of the crop is assessed based on their ability to create employment opportunities.

Table 5 Sustainability

Country Crops GR IT ES NL UK FR PT

PL

LT

Poplar (Woody)

Miscanthus

Willow (Woody)

Cardoon

Switchgrass

Giant Reed

Eucalyptus (woody)

Hemp (ligno)

Black Locust (woody

Reed Canary Grass

Sugar beet

Sorghum

Lupin

Triticale

Camelina

Hemp (oil)

Castor

Rapeseed (HEAR)

Safflower

Flax

Sunflower

Crambe

Ethiopian mustard

Lupin

Lavender

Guayule

Calendula

Peppermint

Rosemary

Russian Dandelion

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Italy: Poplar, cardoon, giant reed all have slightly better performance in all sustainability indicators compared to camelina, sorghum and hemp because these three crops needs some pesticide and herbicide treatments, does not increase soil carbon level as much as lignocellulosic crops and GHG emission is higher when compared with poplar, cardoon and giant reed. Guayule performs the worst in sustainability. Spain: Cardoon has shown the highest sustainability when compared with other crops for Spain, because it shows positive performance in all indicators. Lupin requires less inputs (fertilizer, pesticide, herbicide) and improves the soil carbon level as a leguminous crop, therefore has positive performance in those indicators. Camelina and chamomile require less inputs (fertilizer, pesticide, herbicide) indicating positive sustainability performance. United Kingdom: Miscanthus and sugar beet have shown good performance in all sustainability indicators therefore they are the most sustainable among the five selected NFCs. Poplar whereas performs better in sustainability than rapeseed because the GHG emissions is much lower compared to rapeseed. Lavender is also a low maintenance crop but requires some inputs like fertilizer and pesticides for good yield therefore there it has some environmental impacts related to the use of these inputs. France: Camelina, Ethiopian mustard and sunflower have shown good performance in all sustainability indicators compared to other crops. Miscanthus and giant reed sustainability could increase with the increase in water use efficiency. Sugar beet and rapeseed (HEAR) has high GHG emission compared to other crops because both crops have higher inputs (fertilizer, pesticide herbicide) requirement compared to other crops. Corn, cereals, and sorghum also has higher inputs requirements. Portugal: Eucalypt and cardoon have shown good performance in all sustainability indicators (GHG emission data not available) compared to other crops. Lupin and sunflower sustainability performance is slightly less because of the low water use efficiency. Sunflower also requires some pesticide and herbicides. Peppermint and rosemary have low performance in all sustainability indicators. Poland: Miscanthus, poplar and willow performance is very good in all sustainability indicators compared to camelina and crambe. Employment and jobs created by poplar, willow and camelina production is much better compared to miscanthus and crambe. Lithuania: All crops performed well in sustainability indicators. Hemp, poplar and willow sustainability indicators performed better compared to triticale, rapeseed and camelina. Triticale and rapeseed has pesticide and herbicide requirement which lowers their overall sustainability performance. Greece: All crops performed well in sustainability indicators. Camelina can be used as source for low-ILUC biofuels as it can be grown in marginal land. Hemp can be grown for phytoremediation purposes in land highly polluted with heavy metals. In Greece, the crop can be grown in areas that have been released from lignite mining. Switchgrass can be grown as low cost feedstock which has potential to lower GHG emission when grown on marginal lands, therefore can be source for low ILUC biofuels. The Netherlands: All crops performed well in sustainability indicators. There is strong experience and knowledge in sustainable agricultural practices in the country.

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3.4. Profitability Profitability of the crop is assessed based on the production costs, net margin for farmers and market price. Table 6 Profitability

Country Crops GR IT ES NL UK FR PT

PL

LT

Poplar (Woody)

Miscanthus

Willow (Woody)

Cardoon

Switchgrass

Giant Reed

Eucalyptus (woody)

Hemp (ligno)

Black Locust (woody)

Reed Canary Grass

Sugar beet

Sorghum

Lupin

Triticale

Camelina

Hemp (oil)

Castor

Rapeseed (HEAR)

Safflower

Flax

Sunflower

Crambe

Ethiopian mustard

Lupin

Lavender

Guayule

Calendula

Peppermint

Rosemary

Russian Dandelion

Italy: Profitability of lignocellulosic crops (poplar, giant reed and cardoon) is better in Italy compared to carbohydrate and oil crops (sorghum, hemp, camelina). Spain: Cardoon and camelina has a good profitability compared to other crops. Lupin and flax can take advantage of the market already established by other oil seed crops for biodiesel as well as biochemicals and biopharmaceuticals. The United Kingdom: Production costs for all selected crops is good while the net farm margin depends strongly on market prices. France: Hemp, sorghum, corn, cereals and sugar beet, rapeseed (HEAR), sunflower perform well in all profitability indicators making them more profitable crops compared to others. Miscanthus, switchgrass and giant reed could be also profitable crops their market price was better as production cost and net profit margin

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for farmers for these crops are better. Camelina and Ethiopian mustard profit margin for farmers is good, their production costs and market price can be better. Portugal: Eucalyptus is the only profitable crops among the crops selected as it performs well in all indicators for profitability. Production cost of cardoon and sunflower is good compared to other crops (lupin, peppermint, rosemary). However, net margin for farmers is good only for eucalyptus. Market price for all crops is not so good except for peppermint and rosemary. Poland: Production cost for all selected crops is good whereas the net profit margin for farmers is not very good which affects the overall profitability. Lithuania: Production cost and profit margins for farmers are good for all selected crops in Lithuania whereas market price is better for hemp, triticale and rapeseed. Market price for poplar, willow and camelina could be higher to improve the overall profitability from these crops. Greece: Camelina is considered as a profitable alternative to reduce dependence on imports of palm oil but more research is required to understand the potential profit. Switchgrass is a low-cost feedstock making it an profitable option to upscale the biofuel production. Castor has potential to be profitable crop because of its multiple end-uses and interest from the European chemical industry for castor oil as it is a source of hydroxylated fatty acid. Improved varieties of Lupin and mechanical harvesting can be profitable. The Netherlands: Hemp can provide very good opportunities for profitability to Dutch farmers. Advancements in the processing costs can improve profitability for miscanthus. The profitability of sugarbeet depends on the world sugar market price. However, a small scale biorefinery can also deliver a stable profit for farmers and source of employment. At present low-price linseed is imported from outside of EU, therefore competition to lower production costs is high. The production and supply chain of Russian Dandelion has the potential to create new jobs in rural areas. .

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3.5. Opportunities for Biobased Industries and Market This section presents an overview of the PANACEA country relevant opportunities for the selected NFCs. The information is based on input from the PANACEA partners for the national biobased industry as well as supporting policies for the uptake of the crops as raw materials for bioeconomy. Italy: In Italy, there are industrial scale pre-commercial bioethanol production plants like Crescentino plant in Northern Italy using lignocellulosic feedstocks producing 2nd generation biofuels. Biobased industries and consulting companies like Biochemtex Italia35, ETA Florence Renewable Energies36, Agriconsulting37 have collaborated in research and demonstration projects like BIOLYFE38, COMETHA39 to support the production of bioethanol from lignocellulosic crops and agricultural residues. Similarly, there are companies like Canapar40 supporting farmers increase both quality and quantity of hemp cultivation and act as a liaison between farmers and the fast-growing innovative cannabis industry. The company has a plant near Ragusa in Italy which produces pharmaceutically GMP certified cannabis oil and its derivatives. Similarly, the South Hemp41 is another company which has established agricultural value chain in Southern and Central Italy to promote the cultivation of hemp and its processing to produce construction materials, animal bedding, mulch for gardening, textiles etc. The company supports farmers by providing certified seeds, technical assistance in land preparation and seed and fiber harvesting and storage processes. There are other companies like Salute Sativa42, Layn Europe SRL43 , Federcanapa44 promoting the cultivation and processing of hemp. Eco Hemp SRL45 produces wide range of hemp products -building materials, cosmetics including food and have successfully been certified for consumer consumption. There are flagships biorefineries plants launched in Northern and Central regions of Italy under the reindustrialisation and they focus on production of succinic acid, azelaic and pelargonic acid, biofuels from vegetable oils, bases for bio lubricants and bio additives for natural rubber. Spain: The CLAMBER project46 is of the largest public demonstration of scale-up experiments from various companies and project was developed and supported by the Forest, Food and Agriculture Research Institute of Castilla-La Mancha (IRIAF). The project supports the scale- up experiments on valorisation of residues from agroindustry and lignocellulosic biomass (e.g remains of straw, pruning, shoots, olive branches for production of biobased products. The focus of the CLAMBER project is mainly on residual biomass to produce fermentable carbon. The research institutes like Regional Institute for Applied Sciences (Instituto Regional de Ciencias Aplicadas (IRICA)47 and the Regional Development Institute (Instituto de Desarrollo Regional) support the significant agricultural research work in Spain for biomass production. Similarly there are biobased industries like NATAC group48 specializing in agri-food and industrial biotechnology and are focusing mainly on Mediterranean plants like olive tree and grapevine. Extracts from these plants are used to produce natural ingredients for high value added products like pharmaceuticals, cosmetics, food supplements etc. Indianes49 is an example of a Spanish company which produced footwear uses plant-based fibres from hemp, banana etc. There are also networks of biobased industries collaborating to promote biotechnology companies. Association of Renewable Energy Producers (APPA) is one of those networks, they bring renewable energy companies together, APPA Biofuels50 believes that for 70-80% of the vehicles which will still be running on

35 https://bioplasticsnews.com/biochemtex/ 36 http://new.etaflorence.it/portfolio-item/cometha/ 37 http://www.agriconsulting.it/ 38 https://www.biolyfe.eu/production-plant.html 39 http://www.cometha.eu/cms/wp-content/uploads/2015/03/cometha_trifold_FINAL_print_ok_low.pdf 40 https://www.canapar.com/what-we-do/ 41 http://www.southemp.it/index.php/en/ 42 http://www.salutesativa.com 43 http://www.layncorp.com 44 http://www.federcanapa.it/http://www.federcanapa.it/ 45 https://www.ecohemp.it/ 46 CLAMBER Project https://clamber.castillalamancha.es/ 47 IRICA, https://www.irica.uclm.es/ 48 http://biotech-spain.com/en/directory/natac+group/ 49 https://www.indianesfootwear.com/materiales2?lang=en 50 https://www.renewableenergymagazine.com/biofuels/appa-claims-biofuels-are-a-key-ingredient-20181107/

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combustion engines even after the electric vehicles are deployed to reach their targets. The biofuels will be the renewable option for all modes of transport -aviation, road and maritime. Spanish Technological Biomass Platform (BIOPLAT)51 is a group of excellence in technical and scientific sectorial coordination and focuses on development of RDI in bioenergy.

The United Kingdom: Packaging Chimp52 is a small company providing eco-packaging options for

consumers which are biodegradable and compostable. Eco-craft 53in has demonstrated successfully the cellulose based biopolymers from poplar and they are approved for food contact and certified for its biodegradability. Cellulac54 is producing biodegradable plastics (PLA) and are dedicated to reduce toxic and plastic CO2 emissions. Thermobile heater55 is an example of small-scale innovation of technology. It is a space heater which can run on rapeseed oil to produce heat. However small-scale technologies like this needs support to increase their market. CelluComp 56 company has produced products based on the extraction of nanocellulose fibres from sugar beet. There are range of products developed from the Curran fibres, like additives for the paint and coating industry, packaging based on the bio-composites, platelet structure to add viscosity to household products and skin care products etc. Some of these products are already commercially available where as some other uses are currently undergoing research at laboratory scale. Jersey Lavender57 and Cotswold Lavender 58 are example of family run business who are growing, harvest and distilling lavender to produce range of cosmetics, toiletries and perfumes. The annual turnover of UK industrial biotechnology and bioenergy sectors is estimated to increase to £8.6bn

by 2035 59 thus creating opportunities of market uptake for feedstocks from energy crops. In the UK

technological advancement in the pre-treatment processes and supply of low-cost feedstocks will open opportunities for bio-based chemicals to enter into the bioeconomy, however at present the UK has limited

capabilities test and scale up the pre-treatment technologies.60 There are companies like Solenis61 is a

chemical manufacturers which provides sustainable paper and pulp, chemical processing and biorefining options to the society. There are many networks and clusters of academic and industry stakeholders who work in collaboration to promote the bioeconomy research and innovation activities. For example, Agri-tech centres62 promotes efficiency, resilience and economic opportunity across the agrifood sector, High Value Biorenewables Network (HVB)63 which promotes and facilitates biorenewable sector, Biomass Biorefinery Network (BBNet)64 which aims to develop new and improved processes for the conversion of non-food biomass into sustainable fuels, chemicals and materials. France: France has an established market for bioenergy, biofuels and biobased products. Tembec Tartas65, Landes region in France uses cellulose pulp for lignocellulosic biorefinery and has been successfully produced high value-added chemical products for pharmaceutical and food industries. They are also using tree branches, bark and sawdust – to produce bioenergy. Bourgogne Pelllets (BP) is an example of farmers’ cooperative from Burgundy region of Eastern France. The cooperative comprises of 350 members and BP supply chain included agricultural production, harvest, handling, transport, storage and processing. In 2015 they area covered by BP was 400 ha for Miscanthus production and they produced chips, bales and

pellets. France Miscanthus66 is a successful project which is using miscanthus for poultry and horticulture

mulch industry and by biofuels industry. According to the France Miscanthus, two-thirds of the miscanthus produced in France is used for biofuels and remaining is used for poultry and horticultural mulch and small

51 http://bioplat.org/ 52 https://www.packagingchimp.co.uk/eco-packaging.html 53 https://www.eco-craft.co.uk/cellulose-biodegradable-spec 54 http://cellulac.com/sf/ 55 https://www.industrial-equipment.co.uk/online-tools-store/r096-6105-biofuel-waste-oil-burner-info.html 56 https://www.cellucomp.com/applications 57 https://jerseylavender.co.uk/about-us/ 58 https://www.cotswoldlavender.co.uk/ 59 BBSRC, Biotech Britain (2015): www.bbsrc.ac.uk/documents/capital-economics-biotech-britain-july-2015/ 60 UK Top Bio-based Chemicals Opportunities, 2017, E4tech (UK) Ltd for LBNet. 61 https://solenis.com/en/industries/biorefining/ 62 https://www.agritechcentres.com/ 63 https://www.highvaluebiorenewables.net/ 64 https://www.bbnet-nibb.co.uk/ 65 http://kemtekindustries.com/Tembec-Lignosulfonates-Brochure.pdf 66 France Miscanthus, https://www.france-miscanthus.org/ accessed on 1st October, 2019

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portion for cattle feed. Cavac Biomaterials67 is the subsidiary agricultural cooperative based in Vendee, Cavac

in France. 5,000 agri-farming societies are involved with the Cavac company. The company specialises in

production of biobased materials from plant-based fibres in Europe. Vertex Bioenergy68 uses cereal grains

(wheat, corn, sorghum) for bioethanol production and co-product called DDGS (high-protein compound used in cattle feed). They have vast experience in the global trading of bioethanol the procurement and logistical handling of the raw materials. There are also various research activities, networks and cluster related to bioeconomy -French National Institute for Agricultural and Environmental Research (INRA), network of agricultural technical institutes (ACTA), ANR French Research Agency, IAR (French Bioeconomy Cluster. There are national level development programs for the support of cultivation of perennial lignocellulosic crops. French Environmental

Agency (ADEME)69 is supporting the national research projects on energy crops and between 2005-2010 the

projects were REGIX (Cadoux et al., 2010), ECOBIOM, LIDEA, LIGNOGUIDE70 and LOGISTEC71. Most projects focused on miscanthus and switchgrass and other crops were giant reed, poplar, eucalyptus, corn, sorghum and triticale. The research showed that there is no much difference in annual production and

production cost for these crops. There is focused research program72 on valorisation of camelina oils and

proteins as sources of cosmetic and dermo pharmaceutical bases. CIBIOM and OPTIVICE are other projects focused on development of double cropping systems and of intermediate crops for biogas production.

Portugal: Portugal has companies like the Navigator Company73 which is promoting a sustainable

development of Eucalyptus forest-based bioeconomy. They are leading a research and development activities and providing training to produce paper and pulp from Eucalyptus trees, biorefineries and bioproducts. The Navigator company’s aim is to valorise residues and side streams from the pulp and paper process, into biofuels, chemicals and polymers. Portugal is leader in cork production and Amorim Group74 is the Leading company in cork production. There are association of forest industries- ANEFA, APCOR, FORESTIS, AIFF75 which also support the mobilisation of forest biomass for bioeconomy growth. There are also association of biotechnology industries P-BIO76 who are focused making bio-pharmaceutical products. Associations like BIOEC77 and CEP78, focused on circular economy activities and Green Growth Alliance 79, focused on different thematic areas like agriculture, forest, energy, climate etc – they all support the overall growth of the bioeconomy. Universities in Portugal (Coimbra, Porto, Lisboa, Faro, Tras-os-Montes/Alto-Douro) has good research facilitates on bio-based products and materials.80 There is pilot scale research project like MultiBiorefinery81 which is focusing

on residues mobilisation to make biopolymers and bioactive compounds. Rose4Pack82 was a project which

developed a biodegradable food packaging material enriched with active compounds extracted from rosemary. Poland: Near-to-practice lignocellulosic crops in Poland (willow, poplar and giant miscanthus) fit well into the strategy of the Bioeconomy of the European Union. The national research project BioMagic83 is financed by

67 Cavac Biomaterials, https://www.cavac-biomateriaux.com/ accessed on 1st October, 2019 68 Vertex Bioenergy, https://www.vertexbioenergy.com/en/index.php accessed on 1st October 2019 69 https://www.ademe.fr/en 70 http://www.biomasse-territoire.info/menus-horizontaux/projets/lignoguide.html) 71 (http://www.logistecproject.eu/) 72 (http://www.ademe.fr/content/valorisation-proteines-dhuiles-cameline-comme-sources-bases-cosmetique-dermopharmacie) 73 www.thenavigatorcompany.com 74 https://www.amorim.com/en/ 75 ANEFA (National Association of Forestry, Agricultural and Environment Companies), APCOR (Portuguese Cork Association) FORESTIS (Forest Association), AIFF (Association for the Competitiveness of Industries of the Forest Row) 76 https://p-bio.org/pt/ 77 http://www.bioec.pt/ 78 www.circulareconomy.pt 79 https://www.crescimentoverde.gov.pt/ 80 https://biconsortium.eu/sites/biconsortium.eu/files/downloads/Country_Report_Portugal.pdf 81 https://www.compete2020.gov.pt/noticias/detalhe/Proj16403-MultiBiorefinery 82 https://www.compete2020.gov.pt/pesquisa/detalhe/Rose4pack-Investigacao-portuguesa-desenvolve-embalagem-biodegradavel-inovadora 83 BioMagic (BIOproducts from lignocellulosic biomass derived from MArginal land to fill the Gap In Current national bioeconomy) http://biogospodarka.iung.pl/en/projects/

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the National (Polish) Center for Research and Development (NCBiR), and focuses on cascading use of lignocellulosic biomass for pharmaceutical, veterinary, food and feed are examined, and only post-production residues that are used as feedstock for energy through advanced technologies such as 2nd generation biofuels. SustainFARM84 focuses on agroforestry by combining production of short rotation crops with arable cropping. The project’s main aim is to add value to on-farm woody resource and improve farmers awareness about resilience of agroforestry systems and efficiency. Similarly, rapeseed is the main oil crop cultivated in the country and the main source of biofuels. However camelina and crambe can be cultivated as an alternative to rapeseed. There is an opportunity to grow camelina and crambe, especially due to the fact that the crop matches typical crop rotation schemes applied by farmers. In addition crambe, as typical non-edible crop, can be cultivated on contaminated and underutilised land. Moreover, crambe oil is used in small “green and organic” beauty industry directly or as a cosmetic ingredient. Therefore, the crop could be cultivated not only on a large scale, for industrial purposes (lubricants, biofuels), but it could also engage small and organic farmers, for whom such production would give an additional profit. Camelina is currently cultivated on a small scale for food purposes (oil with essential fatty acids). Camelina seed cake and meal are valuable feed for fish and poultry industry. Thus there is opportunity to use these byproducts and widen the camelina market.

Lithuania: UAB “Kurana”85 is the first company inside EU which connected manufacturing of bioethanol,

electricity and thermal energy from renewable energy sources into one uninterrupted technological loop. This

technological loop produces zero waste plus valuable organic fertilizers. Graanul Invest86 is the fastest growing

biobased company and UAB Graanul Invest is the pellet producing plant in Lithuania established since 2005. The company is also working in partnership with EU H2020 INEA (Innovation and Networks Executive Agency)

to demonstrate the production of aviation fuel from wood and isobutene-derived gasoline. UAB “Rapsoila”87 is

the first plant in Lithuania producing biodiesel, glycerol and rapeseed oil cakes from locally sourced Lithuanian rapeseed. The company facilitates the trade of rapeseed and necessary inputs for production (feed, fertilisers, or additives) and have a highly-qualified team of experts who conduct all technological and production processes to ensure the production of top-quality biodiesel. The company has a waste-free production process and focus on ecological sustainability.

The Open R&D Lithuania88 is a consortium of research institutes and universities who are focusing on

sustainable processing of biomass into bioproducts and bioenergy. The consortium comprises of over 65 research facilities who are producing experts highly qualified in industrial biotechnology and chemical engineering. BALTPOOL UAB89 is an biomass exchange scheme which was implemented to improve trading model intended for organising long-term supplies, create transparency and economically substantiated prices

of traded products. The Association of Fibre Growers90 brings together farmers, processors, traders,

researcher, specialist all together to share their experience on cultivation and processing of the Hemp.

Greece: The Greek CBD Shop91 sells online a range of high-quality CBD products which are produced from

hemp grown at farm in Greece. The online market is supported by a consulting company called the New Boost Greece which helps in product development to branding to wholesale to retailing. They are also selling organic hemp seeds, flowers and even biomass as a commodity to the business partners for further processing.

There are around thirty (36) biorefinery plants spread out in different regions of Greece92 which can mobilize

biomass feedstock from agriculture and forest. A small percentage of facilities process sugar and starch in

Greece compared to bio-chemicals, paper and pulp facilities93.Mobilisation of switchgrass at commerical

84 SustainFarm http://www.sustainfarm.eu/en/ 85 http://www.kurana.lt/en/ 86 Grannul Invest, https://www.graanulinvest.com/eng/frontpage 87 http://www.rapsoila.lt/en/biofuel-factory-rapsoila/ 88 https://openlithuania.com/area/biorefinery/ 89 https://www.baltpool.eu/en/about-exchange/ 90 https://www.pkaa.lt/kontaktai/ 91 https://greek-cbd.com/products.html 92 https://ec.europa.eu/knowledge4policy/visualisation/bio-based-industry-eu_en 93 https://ec.europa.eu/knowledge4policy/visualisation/bio-based-industry-eu_en

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scale is a possibility because there are many biofuel production facilities spread through out the Greece. Camelina, lupin and castor have multiple end uses and there are facilities which process multiple products

from the same feedstock spread through out the country94. Greece needs plants which process

biocomposites and fibres so that hemp can be processed for its fibre uses. Almost all, 97.2% of the facilities present in Greece are commercial scale faciltiies and only 2.8% of them are pilot and demonstration

facilities.95

The Netherlands: According to the JRC database on biobased industries 96, there are many bio-chemical facilities in NL compared to others bio-based industries which is good opportunity for selected NFCs like linseed and Russian dandelion. Linseed has traditionally been used in NL for production of flooring and coating like paints, varnishes etc and with many bio-based chemical plants spread though out the country there is a potential opportunities for the linseed for further upscaling. Similarly, Russian dandelion is another selected crop for NL but their production is not yet commercial. However if Europe wants to meet demand for rubber without imports crop like Russian dandelion is a potential alternative source. The by-product of inulin is low calorific sweetener. The Green Chemistry Campus97 supports the entrepreneurs with innovative bio circular ideas to scale up the production of bio- chemical building materials and packaging industry. Besides the biobased industries there are institutions which supports the collaboration, information exchange among all biobased stakeholders. For example, institutions from Netherlands and Flanders, Belgium are working together on GBO (Grenzeloos Biobased Onderwijs)98 known as Boundless Biobased Education project, which works on the development of demand-driven biobased education programs at secondary, higher and university level and on better training and research facilities for education and business. Similarly there is a media platforms like Agro & Chemistry99 which promotes the information exchange, knowledge transfer about potential of biobased sector.

94 https://ec.europa.eu/knowledge4policy/visualisation/bio-based-industry-eu_en 95 https://ec.europa.eu/knowledge4policy/visualisation/bio-based-industry-eu_en

96 https://ec.europa.eu/knowledge4policy/visualisation/bio-based-industry-eu_e 97 https://www.greenchemistrycampus.com/en/contact 98 https://www.biobasedonderwijs.eu/project 99 https://www.agro-chemistry.com/news/workshop-natural-fibertastic-for-smes/

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3.6. Supporting biomass policies This section presents the policies which support the uptake of the biomass as raw material for bioeconomy. Policy databases of S2biom100, the Climate Policy Database101, Legal Sources on Renewable Energy102, the International Energy Agency country policy reviews103, Biomass Policies policy benchmarking reports104 and the joint report on bioeconomy policy development 105 by JRC, BBI JU and IEA Bioenergy were referenced for the landscaping of the biomass policies. Italy: Italy has a dedicated Italian bioeconomy strategy106 and regional action plans are used as a tool to implement the National Smart Specialization Strategy. The strategy aims to increase the current performance by 15% and create 2 million jobs in the bioeconomy sectors by 2030. Italy have submitted their integrated national energy and climate plan (NECP) Italy 2021-2030107. Spain: Spain has a regional bioeconomy strategy and action plans- some of them are in process of preparation and others in publishing108. They have already finalized their NECP Spain 2021-2030109. Capacity of industrial production of biobased products and bioenergy varies across the regions in Spain. For example, Andalusia region has a strong agro-industrial businesses based on biomass resources and they stand out in their biofuels usage. They are also identified as a model region by the European Commission in order to produce sustainable chemical product. Catalonia region has the largest chemical cluster in the Mediterranean region and 42.6% of the Spain’s national chemical sector revenue is accounted to Catalonia region.110 The United Kingdom: The United Kingdom has a Bioeconomy Strategy to 2030111 and aims to double the impact of bioeconomy in UK from by 2030 compared to 2014. There are other bioeconomy supporting national strategies like National Industrial Biotechnology Strategy to 2030112, The Clean Growth Strategy113 which focuses on low carbon economy. Similarly there are other supporting policies and strategies at regional level e.g. the Biorefinery

100 https://s2biom.vito.be/node/2489 101 http://climatepolicydatabase.org/index.php/Climate_Policy_Database 102 http://www.res-legal.eu/search-by-country 103 https://www.iea.org/countries 104 Mozaffarian M, Stralen Jv, Uslu A. Deliverable 3.2 Biomass Policies: Benchmarking bioenergy policies in Europe. ECN (2016) 105 Lusser, M., Sanchez Lopez, J., Landa, L., Avraamides, M., Motola, V., Zika, E., Mallorquin, P., Joint survey on bioeconomy policy developments in different countries. Background, methods used and recommendations for future editions, Report of JRC, BBI JU and IEA Bioenergy. 2018. European Commission's Knowledge Centre for Bioeconomy https://ec.europa.eu/knowledge4policy/sites/know4pol/files/jrc112081_joint_survey_report_final.pdf 106 http://cnbbsv.palazzochigi.it/media/1774/bit_en_2019_02.pdf 107 https://ec.europa.eu/energy/sites/ener/files/documents/it_final_necp_main_en.pdf 108 https://ec.europa.eu/knowledge4policy/bioeconomy/country/spain_en 109 https://ec.europa.eu/energy/sites/ener/files/documents/es_final_necp_main_en.pdf 110http://www.accio.gencat.cat/web/.content/bancconeixement/documents/pindoles/Bioeconomy_sector_report_2018.pdf 111https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/761856/181205_BEIS_Growing_the_Bioeconomy_Web_SP_.pdf 112 https://www.bioindustry.org/uploads/assets/uploaded/d390c237-04b3-4f2d-be5e776124b3640e.pdf 113 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/700496/clean-growth-strategy-correction-april-2018.pdf

Figure 4: Strategies and policy initiatives dedicated to bioeconomy (Source: European Commission, Knowledge for Policy)

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Roadmap for Scotland 114, The Environment Strategy for Scotland 2020115; Life Sciences

Strategy for Scotland – ‘2025 Vision’ 116. The UK also has the national NECP 2021-2030117

which sets clear climate and energy objectives and see biomass as important transitional technology to help the UK move to a low carbon economy. The Renewable Heat Incentive scheme118 imposes restrictions on the use of energy crops and the Renewable Transport Fuel Obligation (RTFO)119 introduces a cap on the amount of incentive available for fuels from food crops like sugar beet, rapeseed etc and a double counting certificates (RTFCs) for every litre/kg of biofuel produced from non-food energy crops. France: There are national and regional level bioeconomy strategies-like Bioeconomy Action Plan, Bioeconomy Strategy of Grand Est 120, National Strategy for the Use of Biomass (SNMB)121, Regional Strategies on Bioeconomy122, National Strategies on Low-Carbon Emissions123 etc which encourage the emergence and development of projects based on perennial lignocellulosic and double cropping systems. There are various other strategies at national level e.g. National Climate Change Adaptation Plan 2018-2022; Circular Economy Roadmap 2019124; Integrated NECP France 2021-2030125; Ambition Bio 2022; Low Carbon Strategy126 etc which supports the bioeconomy. The biobased industry is supported by French National Strategy on Bioeconomy and future regional strategies in place, research and technology funding and technology commercialisation centres. There are several policies for the development of bioenergy, biofuels and biobased products in France. The Green Chemistry and Biofuels Roadmap released in 2014 outlined a plan for the development of 45 industrial biofuels projects. The ‘POPE’ Law 2005 set a good direction for energy policies to reduce GHG emission and for the deployment of biomass development. The National Strategy for Research and Innovation 2015 outlines the importance of diversification of biomass end-uses. The Energy Transition Law 2014 sets our voluntary objectives to reduce GHGs and increase the share of renewable energy. Portugal: Portugal does not have a national bioeconomy strategy and it is under preparation under a leadership of the Portuguese Biotechnology Industries Association. There are however other strategies which support the bioeconomy, e.g. Roadmap for Carbon Neutrality 2050127; National Plan for Promotion of the Biorefineries, Thematic Agendas for Research and Innovation128, Circular Economy Action Plan etc. In the Portuguese Strategy for Smart Specialization 2015129 there is no specific definition of bioeconomy but references are made to biofuels, biochemicals, biomaterials, green chemistry, and biomass usually encompasses residual biomass. The country has also prepared an integrated NECP Portugal 2021-2030130 . Poland: Poland does not have a separate national bioeconomy strategy yet but it is under development. However, all four regional smart specialization strategies131 have incorporated bioeconomy as one of their key strategic elements. References to bioeconomy are also included in the National Development Strategy, which emphasizes the need to develop a

114 https://www.sdi.co.uk/news-features/publications-and-guides/biorefinery-roadmap-for-scotland 115 https://www.gov.scot/binaries/content/documents/govscot/publications/strategy-plan/2020/02/environment-strategy-scotland-vision-outcomes/documents/environment-strategy-scotland-vision-outcomes/environment-strategy-scotland-vision-outcomes/govscot%3Adocument/environment-strategy-scotland-vision-outcomes.pdf 116 https://www.lifesciencesscotland.com/wp-content/uploads/2017/08/Life-Sciences-Strategy-for-Scotland-2025-VisionFINALlow-res.pdf 117 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/774235/national_energy_and_climate_plan.pdf 118 Renewable transport fuel obligations order: government response (2017), https://www.gov.uk/government/publications/renewable-transportfuel-obligations-order-government-response 119 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/656292/rtfo-year-10-report-1.pdf 120 https://www.grandest.fr/etats-generaux-bioeconomie/ 121 https://www.actu-environnement.com/media/pdf/news-30869-strategie-nationale-biomasse.pdf 122 https://agriculture.gouv.fr/une-strategie-bioeconomie-pour-la-france-plan-daction-2018-2020 123 https://www.ecologique-solidaire.gouv.fr/strategie-nationale-bas-carbone-snbc 124 https://www.ecologique-solidaire.gouv.fr/feuille-route-economie-circulaire-frec 125 https://ec.europa.eu/energy/sites/ener/files/documents/fr_final_necp_main_fr.pdf 126 https://www.ecologique-solidaire.gouv.fr/strategie-nationale-bas-carbone-snbc# 127 https://dre.pt/web/guest/pesquisa/-/search/122777644/details/maximized 128Bioeconomy related strategies, https://ec.europa.eu/knowledge4policy/bioeconomy/country/portugal_en 129 https://www.portugal2020.pt/content/o-que-e-o-portugal-2020 130 https://ec.europa.eu/energy/sites/ener/files/documents/pl_final_necp_main_pl.pdf 131 https://s3platform.jrc.ec.europa.eu/documents/20182/231100/PL_Warmia_Mazury_RIS3_Final.pdf/ae02b7fd-255a-458a-86e4-09534b6536f6

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competitive and innovative economy and level out developmental differences in regions.132 Poland prepared their integrated NECP 2021-2030133. There are supporting biomass policies in place to promote the agricultural biobased values chain. The direct payment system established by Regulation (EU) No 1307/2013 of the European Parliament and of the Council includes 20 different types of payments. The total financial support allocated to Polish farmers in 2018 was PLN 14.8 billion (of which 123 million national funds). Lithuania: The Lithuanian Bioeconomy Strategy is under development. Agri-food and forest are the first and second largest sector of the Lithuanian bioeconomy. Besides these two there are other interrelated sectors to bioeconomy -energy, environment, innovation, biotechnology etc. These sectoral policies support the biomass mobilization. The main strategy which

supports the bioenergy use and development in Lithuania are National Energy Strategy134,

Law on Energy135, Law of Electric Energy 136, Law on Heat Sector 137, Law on Renewable

Energy138 which corresponds to the European Legislations. In the Lithuanian National Energy

Strategy, there are specific legal acts which promotes the development of SRF plantations for energy production and aims to provide about 70 ktoe energy needs in 2025. There are legal acts which promote the use of agricultural waste in bioenergy production. There are also other laws like the Law on environmental protection and the Law on water quality which encourages the county to look for alternative sources of renewable and clean energy to reduce the fossil fuels consumption. Similarly, the policy mechanisms like feed-in-

tariffs for renewable sources, law of excise tax, the Law on biofuel139, environmental pollution

tax, tax on natural resources all supports the conversion and distribution of the biomass based renewable energy. Finally, there are additional laws and funding programs which support the mobilisation of biomass for energy and non-energy end-uses, like Lithuanian environmental investment funds, fund for climate change mitigation and funding for biofuel production. Greece: There are national policy framework to support the innovation acitivties and to promote renewable energy and energy efficiency measures to promote eco-innovations. It is considered a moderate innovator based on the regional innovation scoreboard index of

2017.140 There are funding available for research activities and under the new National

Strategic Reference Framework (2004-2020) 28.8 EUR million was allocated. Similarly, there are funds like Environment Structural Investment (ESI) Funds which has a total budget of EUR 1.5 billion for Research and Innovation. They also have the Green Fund whose main aim is to foster development through environmental protection. The Green Fund is providing administrative, economic, technical and financial support to programmes, measures and actions which aim to promote and restore Greece's environment, to support the national environmental policy and to serve the public good through the use of the Fund's resources. National Energy Efficiency Fund 2021-2027 is another fund which can support the bioeconomy activities. The new investment law (4399/2016) provides investment support for the production of sustainable biofuels other than food-based biofuels and for the conversion of existing food-based biofuel plants into advanced biofuel plants in accordance with European Commission guidelines. However, biofuels that are subject to supply or blending obligations are excluded from receiving investment support. The Netherlands: The Netherlands implements the European as well as national directives on renewable energy, sustainability criteria and ILUC to increase the share of bioenergy and contribute in reduction of GHG emissions. The Netherlands is a member of the Global Bio-Energy Partnership (GBEP)141 which is a global cooperation of governments, international

132 Gołębiewski, J. (2015). Bioeconomy in Poland: Condition and potential for development of the biomass market (No. 718-2016-48736). 133 https://ec.europa.eu/energy/sites/ener/files/documents/pl_final_necp_summary_en.pdf 134 National Energy Strategy. Official gazette “Valstybės Žinios”. No. 11-430; 2007. 135 Law of the Republic of Lithuania on energy. Official gazette “Valstybės Žinios”. No. 56-2224; 2002. 136 Resolution no. 1474 of the government of the Republic of Lithuania. Official gazette “Valstybės Žinios” 2001, No. 104-3713; No. 9-228; 2004. 137 Law of the Republic of Lithuania on heat sector. Official gazette “Valstybės Žinios” 2000 No. 66-1984; 2004 No. 107-3964; 2010 No. 65-3196. 138 Law of the Republic of Lithuania on Renewable Energy. Official gazette “Valstybės Žinios”. No. 62-2936; 2011. 139 Law on Biofuel, biofuels for transport and bio-oils of the Republic of Lithuania. Official Gazette Valstybes Zinios No VIII-1875, Vilnius, 2004. 140 https://ec.europa.eu/environment/ecoap/greece_en 141 http://www.globalbioenergy.org/aboutgbep/partners-membership/en/

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organization and companies to advance sustainable use of bio-energy. Based on the regional innovation scoreboard 2019142, NL is considered innovation leader. They have attractive research systems and innovation friendly environment and strongest innovation dimensions. NL performance was weak in firm investments and sales impacts dimensions which can be improved by right set of policy frameworks in place to boost the bio-based technologies and products.

142 https://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards_en

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4. Conclusions

Opportunities based on productivity and ability to be produced at large scale using

existing machinery

Good yielding capacity, suitability to geoclimatic conditions, availability of propagation

materials and mechanization systems for cultivation and harvesting make the select non-food

crops suitable as feedstocks for the growing and diverse demand of the European bioeconomy

for sustainably and locally sourced raw materials.

Lignocellulosic crops offer the opportunity to diversify the feedstock options for bioenergy and

advanced biofuels. Perennial grasses such as switchgrass and miscanthus as well as woody

crops such as willow and poplar are seen as promising feedstock and there are opportunities

for optimisation of their traits and yields through further research in breeding, agronomy,

postharvest logistics, and bioconversion143.

Carbohydrate crops are well adapted in European agriculture, farmers are familiar with their

cultivation, they exhibit high yields and can be used by several industries across the biobased

sectors.

Oil crops have short growing cycles and can be grown in crop rotation and intercropping

systems. They have high oil content and substantial biomass so they can be used for bio

lubricants, biochemicals, biodiesel, etc. thus addressing the European Bioeconomy objective

of reducing the dependence on non-renewable and petroleum-based products.

Specialty crops are profitable for small scale farmers. They also have positive impacts like improved soil fertility and ecosystem services (like weed control and pollinator attraction, etc.).

Ability to produce feedstock for multiple markets

Non-food crops from all four crop categories have excellent potential to produce feedstock for

multiple markets such as high value-added biomaterials, biochemicals, biopharmaceuticals,

bioenergy and biofuels facilitating the implementation of policy aspirations in RED II Directive,

ILUC Directive and the European Bioeconomy Strategy.

Lignocellulosic crops like miscanthus, poplar, cardoon, hemp can produce high value-added products (like biopharmaceuticals, biopolymers), composites for fibers, raw materials for paper and pulp industry and bioenergy. Carbohydrate crops like sweet sorghum, sugar beet can be used for biofuels market, bioenergy, biopharmaceuticals, polymers for bioplastics. Oil crops like rapeseed, crambe, lupin, have multiple industrial end-uses like lubricants, cosmetics, biochemicals, and bioenergy. Specialty crops like lavender, peppermint, have multiple value-added end uses like medicinal, biochemical, ornamental and cosmetics. They also have non-marketable uses, for example they reduce the pesticides usage and improves the soil fertility and acts as weed control and pollinator.

143 Cosentino SL, Scordia D, Testa G, Monti A, Alexopoulou E, Christou M. The Importance of Perennial Grasses as a Feedstock for Bioenergy and Bioproducts. Perennial Grasses for Bioenergy and Bioproducts: Elsevier; 2018. p. 1-33

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Sustainability Lignocellulosic crops can increase soil carbon because since they can be cultivated with low

tillage and have deep and extensive rhizome rooting system which increases the microbial

biomass and soil bacteria.

Carbohydrate crops have a deep-rooting system which creates good soil structure, adds

organic matter to topsoil and increases the biodiversity of both flora and fauna (CIBE and

CEFS report, 2003).

Some of the oil crops (hemp, rapeseed, flax) can be included in crop rotation systems thus

enhancing the symbiotic microbial activity. They can ameliorate the soil by reducing the

occurrence of pests and diseases and increasing the soil organic matter.

Specialty crops when grown in rotation with other crops can increase organic matter, soil

porosity, soil microbial activity, soil aggregation, carbon sequestration, phytoremediation.

Profitability The profitability of the NFCs at the farmers gate is crop, market and location specific and is a critical factor for motivating farmers to increase the production of NFCs. Therefore, available funding and technical support under Common Agricultural Policy and other agricultural development programs can be tailored to improve farmers by lowering the production costs and increasing the market price.

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ANNEX I NATIONAL REPORTS

D1.3 Strengths and opportunities of near-to-practice non-food crops (NFCs)

in France

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Deliverable Title: D1.3 Strengths and Opportunities of near to practice non-food crops (NFCs) in France Deliverable Lead: Imperial College London (ICL) Related Work package: WP1 Author(s): ACTA, ICL Communication level: PU Public PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) Grant Agreement Number: 773501 Programme: Horizon 2020 Start date of Project: November 2017 Duration: 40 months Project coordinator: CRES

Selected near-to-practice NFCs in France Non-Food Crops (NFCs) have been cultivated at experimental, demonstration and commercial level in France for the last fifteen years (Cadoux et al., 2010). The share (2013-15) of industrial (non-

food) crop production, was 6.5%144.

Miscanthus, switchgrass, giant reed, hemp, sugar beet, triticale, sorghum, corn, cereals, buck wheat, camelina, rapeseed (HEAR), sunflower, Ethiopian mustard are selected in PANACEA as near-to-practice NFCs for France, based on the presence of these crops in French agriculture as food crops with non-food uses or as non-food crops. These selected fourteen crops have good potential for sustainable production and there is recognized interest from bio-based

industries to use them as feedstock for bioenergy and non-energy applications. Lignocellulosic crops like miscanthus, switchgrass, giant reed and hemp are mainly grown in France for bioenergy, animal bedding and mulching. Carbohydrate crops like sugarbeet, triticale, sorghum, corn, cereals, buck wheat are used for bioenergy. Oil crops like camelina, rapeseed (HEAR), sunflower and Ethiopian mustard are used for biogas, biofuel and oleochemicals. This report provides facts and figures for selected NFCs in France, assesses their strengths, and provides an outlook of opportunities in policy and industry for their future market uptake.

144 Based on CAP, 2016 report for France, Available From

https://ec.europa.eu/info/sites/info/files/food-farming-

fisheries/by_country/documents/cap-in-your-country-fr_en.pdf, [Accessed on 15 July, 2020]

STRENGTHS

All selected NFCs have been cultivated widely in France so the agronomic practices are well established. Perennial lignocellulosic crops production (miscanthus, switchgrass, giant reed, hemp) is supported by national programs. Bio-based industries and cooperatives are working together to promote their market uptake. Sugarbeet, triticale, sorghum, lupin, corn, cereals, buck wheat, rapeseed (HEAR), sunflower are also well-established NFCs which provide feedstock for the French bioeconomy. Crops like camelina, Ethiopian mustard and hemp, need additional research and development to be successfully integrated in the French bioeconomy.

The strengths for each selected crop are assessed for:

a) productivity and ability to be grown at large-scale using existing machinery

b) ability to produce feedstock for multiple markets

c) sustainability and profitability A set of indicators from Common Agricultural

Policy (CAP)145 and from the project deliverable

D1.2146 has been used for the assessment. The

detailed definition of the indicators and the rationale for their selection can be found in the Annex Table 3. The rationale for choosing CAP related indicators is because non-food crops are or will be agricultural commodities and any planning, regulation and support will be developed under the framework of the Common Agricultural policy at EU or national level.

145 CAP Impact Indicators, Available from

https://ec.europa.eu/agriculture/sites/agriculture/files/cap-indicators/impact/2016-impact-indicators-fiches.pdf

146 PANACEA Deliverable D1.2 Inventory of near-to-practice

NFC Available from http://www.panacea-h2020.eu/wp-content/uploads/2019/05/D1.2-Inventory-of-near-to-practice-NFC.pdf

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Miscanthus, Giant Reed and Switchgrass

Miscanthus is mostly cultivated in Northern France in approximately 4,000 ha. Giant reed is widely cultivated in South-eastern region of France. Switchgrass is cultivated only in research and demonstration field trials. Yields: Recorded yields for miscanthus and giant

reed range from 8 to 15 t DM/ha/yr. 147

Recorded yields for giant reed range from 16.2- 19.5 Mg ha−1 (Monti and Zegada-Lizarazu, 2007

)148.

Recorded yields for switchgrass range from 8 to 15 t

DM/ha/yr.149 (1.88 and 18.91 t ha–1; Nazli et al., 2018)150

147 Morandi, F., Perrin, A., & Østergård, H. (2016). Miscanthus as energy crop: Environmental assessment of a miscanthus biomass production case study in France. Journal of Cleaner Production, 137, 313-321. 148 Monti, A., & Zegada-Lizarazu, W. (2016). Sixteen-year biomass yield and soil carbon storage of giant reed (Arundo donax L.) grown under variable nitrogen fertilization rates. BioEnergy research, 9(1), 248-256. 149 PANACEA partner experience-based yield range. 150 Nazli, R. I., Tansi, V., Öztürk, H. H., & Kusvuran, A. (2018). Miscanthus, switchgrass, giant reed, and bulbous canary grass as potential bioenergy crops in a semi-arid Mediterranean environment. Industrial Crops and Products, 125, 9-23.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

French geoclimatic conditions are suitable for all the selected NFCs. All crops are well adapted and demonstrate high yielding capacity.

There are national research and demonstration projects (like LIGNOGUIDE, France Miscanthus) which support the use of lignocellulosic biomass for both for energy and non-energy applications.

Mechanisation for cultivation and harvesting is very good for all three crops so they can be easily integrated into current agricultural production systems.

All three crops can be used for advanced biofuels and other bioenergy applications.

Propagation material is more easily available for switchgrass compared to miscanthus and giant reed.

They can also be used as animal bedding and garden mulch.

Miscanthus Harvest in Trouhans, Côte d’Or, for Bourgogne Pellets cooperative Photo credit: Frédéric Douard (2011)

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Sustainability

Profitability

Water use efficiency of switchgrass is better when compared with miscanthus and giant reed.

Production costs and the profit for farmers from all three crops are comparable (Lignoguide, 2013).

All three crops have similar impact on soil carbon level. Giant reed has

phytoextraction abilities. 151 SOC stock

gains were 1- 0.6 Mg C/ha in N160 and N0

treatments, respectively.152

Their fertiliser, pesticide and herbicide requirements are very low making it environmentally sustainable crops.

151 Kidd, P., Mench, M., Álvarez-López, V., Bert, V., Dimitriou, I., Friesl-Hanl, W., ... & Neu, S. (2015). Agronomic practices for

improving gentle remediation of trace element-contaminated soils. International journal of phytoremediation, 17(11), 1005-1037. 152 Monti, A., & Zegada-Lizarazu, W. (2016). Sixteen-year biomass yield and soil carbon storage of giant reed (Arundo donax

L.) grown under variable nitrogen fertilization rates. BioEnergy research, 9(1), 248-256.

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Sorghum, Corn and Cereals Sweet or fiber sorghum, corn and cereals cultivation for biofuels and biomaterials is slowly developing in western France. Yield: Sorghum yields range from 6 tDM/ha to 20

tDM/ha153 depending on soil depth, availability of

irrigation water (or summer rainfalls) and cropping systems: whole energy crop or double cropping.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

All crops are well adapted and demonstrate high yielding capacity.

Sweet sorghum can be used for biofuels.

Geo-climatic conditions in different regions of France are suitable for these crops. Sorghum is a drought tolerant crop which has ability to tolerate drought because they can extract water from deep-soil and ability to give high yield in rain-fed, water scare Mediterranean conditions.

Corn and cereals have multiple uses in biobased markets including bioplastics, biochemicals and biofuels.

Mechanisation for cultivation and harvesting is very good for all three crops so they can be easily integrated into current agricultural production systems.

153 Based on experience of PANACEA partners

Sweet and fiber sorghum, France. Photo Credit:Jean-Luc Verdier Presentation at 1st European Sorghum Congress, Arvalis France

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Sustainability

Profitability

Sorghum is more tolerant to water scarcity when compared to corn and cereals. Overall all three crops have good water use efficiency.

Sorghum managed as a double crop for on-farm biogas plant could be marketed from 20 to 30 €/t.

Fertilisers, pesticides and herbicides are required to sustain productivity.

Moreover, their residues can be further valorised to high added value biochemicals.

Sorghum and cereals can be cultivated in double cropping and therefore reduce implications related to land use change. Sorghum can be grown in rotation with cereals, sunflower providing the benefits of pest management, soil protection and phytoremediation.

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Rapeseed (HEAR) and Sunflower

Rapeseed (HEAR) is currently cultivated in an average area of 20,000 ha (up to 35,000 ha in 2017). The production is managed by a union of cooperatives in Normandie and crushed in a plant located in the same region. Sunflower is cultivated in large scale in South-western regions of France (580,000 ha in 2017). Yield: Average yield for rapeseed in the last five years was between 3 (2013) and almost (2017) tDM/ha/yr. For sunflower in the same period, the yield was between approximately 2 (2015) and

more than 2.5 tDM/ha/yr (2017).154

154 http://www.terresunivia.fr/documentation-presse/chiffres-cles/chiffres-cles 155 Brouard, Y., Belayachi, N., Hoxha, D., Méo, S., & Abdallah, W. (2017). Hygrothermal Behavior of Clay-Sunflower

(Helianthus annuus) and Rape Straw (Brassica napus) Plaster Bio-Composites for Building Insulation. In Advanced Engineering Forum (Vol. 21, pp. 242-248). Trans Tech Publications.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Geoclimatic conditions in France are suitable for both rapeseed (HEAR) and sunflower are well suited to France. Mechanisation for cultivation and harvesting is very good for all crops so they can be easily integrated into current agricultural production systems. All crops are well adapted and demonstrate high yielding capacity.

Both crops are used for biofuels and oleochemicals. HEAR can meet the high demand for long chain fatty acid and its applications in cosmetics. Polymer and lubricant industry can use the extraction from both these crops. France leads in growing high-oleic hybrid sunflower crops to produce a High-oleic sunflower oil (HOSO). It is used for health foods due to low level of polyunsaturated fatty acids and as food stabilising ingredient due to its higher stability and resistance to rancidity due to the high content of natural tocopherol. HOSO has 60% to 90% in oleic acids, increasing the oil’s oxidation stability and its application to increase the shelf life of food. Lab based research work on building bio concretes or bio composites using straw of rapeseed and sunflower fibre has been done in research project was funded by Région Centre,

France (Brouard, Y., et al., 2017)155.

Rapeseed, South France Photo credit:Podcast

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156 Anderson RL, Tanaka DL, Merrill SDJAwm. Yield and water use of broadleaf crops in a semiarid climate. 2003;58(3):255-66. 157 Observatoire des résultats économiques à la production - http://www.terresunivia.fr/documentation-presse/publications/dossier-technique 158 Van Dam J, Faaij A, Lewandowski I, Fischer GJB, Bioenergy. Biomass production potentials in Central and Eastern Europe under different scenarios. 2007;31(6):345-66. 159 Génard, T., Etienne, P., Diquélou, S., Yvin, J. C., Revellin, C., & Laîné, P. (2017). Rapeseed-legume intercrops: plant growth and nitrogen balance in early stages of growth and development. Heliyon, 3(3), e00261.

Sustainability

Profitability

Water use efficiency of sunflower is high

compared to rapeseed156, but they are both

water efficient crops.

Low production costs per ha (450 €/t DM for

HEAR and 550 €/t DM for sunflower)157 and

higher selling price compared to other carbohydrate crops, making then more

profitable.158

Rapeseed (HEAR) is nutrient demanding crop (Colnenne et al., 1998; Dubousset et al., 2010; D’Hooghe et al., 2014 as cited in in

Genard, T. et.al., 2017)159. A study done in

Italy, on comparing rapeseed with sunflower, rapeseed is found to have lower environmental impacts (Forleo, M.B. et al.,

2018)1.

Both oil crops have well established cultivation and agronomic practices making them easy and low investment crop for adoption.

OPPORTUNITIES

Current Markets & Industry of the selected Crops France has an established market for bioenergy, biofuels and biobased products.

There are networks like the scientific group of Plant Biotechnologies 2011-2021160 working to develop

public-private research projects which supports the uptake of the agriculture biomass for multiple bio-based

industry uses. BioBase NWE161 is a cluster which brings together entrepreneurs from across the EU to

develop marketable bio-based products and does the feasibility study or market analysis to screen the funding and investment opportunities. In France there are national development programs for the support of cultivation of perennial lignocellulosic

crops. French Environmental Agency (ADEME)162 is supporting the national research projects on energy crops

and between 2005-2010 the projects were REGIX (Cadoux et al., 2010), ECOBIOM, LIDEA, LIGNOGUIDE163

and LOGISTEC164. Most projects focused on miscanthus and switchgrass and other crops were giant reed, poplar, eucalyptus, corn, sorghum and triticale. The research showed that there is no much difference in annual

production and production cost for these crops. There is focused research program165 on valorisation of

camelina oils and proteins as sources of cosmetic and dermo pharmaceutical bases. CIBIOM and OPTIVICE are other projects focused on development of double cropping systems and of intermediate crops for biogas production. There is high interest in promoting the use of biomass and developing the biobased industry in France. There are well established farmers’ cooperative in France who focuses on different crops. Bourgogne Pelllets (BP) is an example of farmers’ cooperative from Burgundy region of Eastern France. The cooperative comprises of 350 members and BP supply chain included agricultural production, harvest, handling, transport, storage and processing. In 2015 they area covered by BP was 400 ha for Miscanthus production and they produced chips, bales and pellets.

Map of miscanthus projects in France, Source: France Miscanthus (FM) (Red: Bioenergy projects/Yellow: Poultry mulch projects/ Green: Horticultural mulch projects)

France Miscanthus166 is a successful project which is

using miscanthus for poultry and horticulture mulch industry and by biofuels industry. According to the France Miscanthus, two-thirds of the miscanthus produced in France is used for biofuels and remaining is used for poultry and horticultural mulch and small portion for cattle feed. The recorded miscanthus dry yield 10-20 ton/ha. Miscanthus can produce 4.9 MW/t of dry matter. 15 tons of miscanthus harvested can substitute 6,000 litres of fuel. Miscanthus chips or pellets is used for poultry mulch because it has very good absorbent power, which decreases formation of ammonia and volume of animal

160 The Scientific Group of Interest "Plant Biotechnology" (GIS BV), available from https://www.gisbiotechnologiesvertes.com/en/the-gis-bv 161 Bio Base NWE (North West Europe). More information is available from www.biobasenwe.org/en/home/ 162 https://www.ademe.fr/en 163 http://www.biomasse-territoire.info/menus-horizontaux/projets/lignoguide.html) 164 (http://www.logistecproject.eu/) 165 (http://www.ademe.fr/content/valorisation-proteines-dhuiles-cameline-comme-sources-bases-cosmetique-dermopharmacie) 166 France Miscanthus, https://www.france-miscanthus.org/ accessed on 1st October, 2019

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manure produced. Miscanthus has longer life span than straw and reduced the risk of acidifying the soil. The distribution of miscanthus mulch is already widely spread and local producers and suppliers produce them on farm. This makes miscanthus economically profitable and ecological beneficial. As the regulation on herbicides, pesticides in France got stricter, mulching of miscanthus is gaining popularity. Mulch has long lifespan of 12-36 months, replaces chemical pesticides, adds organic matter to the soil, maintains pH of the soil and easy to use and improves the longevity of plants.

Cavac Biomaterials167 is the subsidiary agricultural

cooperative based in Vendee, Cavac in France. 5,000 agri-farming societies are involved with the Cavac company. The company specialises in production of biobased materials from plant-based fibres in Europe. They completely valorise the plant fibres and provides industrial tool of zero waste production. The company is using Hemp to produce insulation products, construction composite materials, gardening mulch, animal litter etc. The company has 2,500m2 of production area and 10,000 m2 storage area. Hemp is produced within 100 km radius of the production site by local farmers or by Cavac agricultural cooperative. Vegetable fibres from flax is also increasingly being used to strengthen the polymers.

Vertex Bioenergy168 uses cereal grains (wheat, corn, sorghum) for bioethanol production and co-product

called DDGS (high-protein compound used in cattle feed). They have vast experience in the global trading of bioethanol the procurement and logistical handling of the raw materials. They have established direct connections with farmers to optimise the supply chains. Their conversion processes use environmentally-friendly technologies, hence reduces the pollutant emissions. The company is encouraging the production of energy crops and promoting it as a sustainable rural development opportunity by creating agro-industries. They have several companies in Spain and France. The company in France is Bioenergie du Sud-Ouest. They mainly use cereal and the ethanol production capacity is 250 Ml and DDGS production is 145, 000 ton.

Bioenergie du Sud-Ouest : Lacq, Pyrénées-Atlantiques, Béarn, France There are agro-industries in France who have invested in the demonstration plants for advance biofuels. For example, FUTUROL for second-generation ethanol, BioTFUEL for second-generation biodiesel and biokerosene derived from miscanthus, straws, wood

biomass. The FUTUROL project169 was launched in

2008 in partnership of research, industry and businesses. The consortium’s main goal was to develop and market a way of producing 2nd generation biofuel

from lignocellulosic feedstock.

167 Cavac Biomaterials, https://www.cavac-biomateriaux.com/ accessed on 1st October, 2019 168 Vertex Bioenergy, https://www.vertexbioenergy.com/en/index.php accessed on 1st October 2019 169 https://faits-marquants.inra.fr/en/futurol-project-is-launched/

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Procethol 2G started the construction of a new cellulosic bioethanol pilot plant in September 2008. The plant was officially inaugurated in October 2011. It is located at the centre of the

ARD industrial Pomacle-Bazancourt biorefinery site near Remis in Marne county, north-eastern France. The 5,000m2 pilot plant will facilitate development of technologies for producing bioethanol and implement them on an industrial scale. It is the first pilot plant dedicated for second generation bioethanol production in

France.170

The BioTfuel project is launched by many companies including Total, IFPEN,

Groupe AVRIL or AXENS) 171 is designed

to transform lignocellulosic biomass (straw, forest waste, dedicated energy crops) into biofuel through thermochemical conversion to produce 2nd generation biofuels and biojet fuels. BioTFuel Project, Thermochemical conversion to produce biofuels. Source: Total FUTUROL company, Source: INRA Science and Impact

In addition to this there are national level competitive programs on biorefineries which processes the oil crops and demonstration scale plants for the use of miscanthus for second generation

biofuel production. GENEZYS172 program of the PIVERT Institute

is an example which is focused on improving traits for new oilseeds (Camelina, Ethiopian mustard) in the interest of industry. France has a dense industrial landscape of biobased industries (Laboratories, Biotech plants, Biorefineries). The French Association for Vegetable Chemistry (ACDV) has published in 2019

an updated map of the industrial sites involved in vegetable chemistry173.

170 https://www.chemicals-technology.com/projects/futurol-project/ accessed on 1st October, 2019 171 https://www.total.com/en/energy-expertise/projects/bioenergies/biotfuel-converting-plant-wastes-into-fuel. 172 https://www.u-picardie.fr/edysan/anoi/) 173 https://www.chimieduvegetal.com/wp-content/uploads/2019/05/Cartographie-Bioraffineries-Biotech-France_Avril2019-HD.jpg

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Supporting Policies

There are national and regional level strategies-like National Strategies on Biomass Mobilization174

Regional Strategies on Bioeconomy175, National Strategies on Low-Carbon Emissions176- which

encourage the emergence and development of projects based on perennial lignocellulosic and double

174 https://www.ecologique-

solidaire.gouv.fr/sites/default/files/Strat%C3%A9gie%20Nationale%20de%20Mobilisation%20de%20la%20Biomasse.pdf 175 https://agriculture.gouv.fr/une-strategie-bioeconomie-pour-la-france-plan-daction-2018-2020 176 https://www.ecologique-solidaire.gouv.fr/strategie-nationale-bas-carbone-snbc

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cropping systems. The biobased industry is supported by French National Strategy on Bioeconomy and future regional strategies in place, research and technology funding and technology commercialisation centres. There are several policies for the development of bioenergy,biofuels and biobased products in France. The Green Chemistry and Biofuels Roadmap released in 2014 outlined a plan for the development of 45 industrial biofuels project from biomass. The ‘POPE’ Law 2005 set a good direction for energy policies to reduce GHG emission and for the deployment of biomass development. The National Strategy for Research and Innovation 2015 outlines the importance of diversification of biomass end-uses. The Energy Transition Law 2014 sets our voluntary objectives to reduce GHGs and increase the share of renewable energy. Policies in France which can support the development of Non Food Crops for biobased value chains.

Production Conversion Distribution End-use

FR

AN

CE

CAP: French Rural Development Programme Biofuel Quota

Nitrates Act Feed-in Tariff , Premium Tariff or RES-E Low Emissions Zone

Forest Subsidies Tenders for RES-E Energy Subsidies

Tax reduction for

RES-E/ RES-H

Grenelle Fund: Zero percent

interest loan

Investment Subsidies for

Thermal renovation

Water Policy Law on Housing (ELAN)

Law on Energy Transition for Green Growth (LTECV)

Energy Renovation in Buildings

Plan

Energy Grant

Energy Transition for Green Growth Act 2015

The national emission target for France under the EU Effort Sharing Decision (406/2009/EC) France 2009

The Climate Plan 2013; National Climate Change Adaptation Plan 2018-2022; Law on Energy and the Climate; Bioeconomy Action Plan; Bioeconomy Strategy of Grand Est 177; The National Strategy for the Use

of Biomass178; Circular Economy Roadmap 2019 Low Carbon Strategy179; NECP France 2021-2030180;

Ambition Bio 2022; Low Carbon Strategy181

177 https://www.grandest.fr/etats-generaux-bioeconomie/ 178 https://www.actu-environnement.com/media/pdf/news-30869-strategie-nationale-biomasse.pdf 179 https://www.ecologique-solidaire.gouv.fr/feuille-route-economie-circulaire-frec 180 https://ec.europa.eu/energy/sites/ener/files/documents/fr_final_necp_main_fr.pdf 181 https://www.ecologique-solidaire.gouv.fr/strategie-nationale-bas-carbone-snbc#

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ANNEX Table 1. Country Indicators France182

182 Based on CAP, 2016 report for France, Available From https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/by_country/documents/cap-in-your-country-fr_en.pdf, [Accessed on 15 July, 2019]

Indicators United Kingdom EU-28 average

Assessment

1. Population and Demographics

Total Population 66 Million 18 Million

Population living in rural area 30 % Only a small percentage of the population lives in the rural areas.

Young Farmers (<35 yrs) 8.80 % 5.9 % 8.8% of the farmers are young farmers which is higher than EU average.

2. Land use indicators

Total Area 632834 km² km²

Agricultural Area (31.6%) 20 Million ha Agriculture is one of the most important industry in France. Industrial farming is popular but there are small-scale farmers who run farms on traditional techniques and bio-farms. 16% of the total EU Utilised Agriculture Area is in France.

Forest Area %

Marginal Land (D2.1 MAGIC) 43385 km² 6.8% of the total area is the marginal land (MAGIC) which means a huge potential to exploit these underutilised land resources.

3. Farming Sector

Farm Size Medium size (5-100) ha 16.1 ha

Industrial crops production 6.5 %

Organic Agriculture 1000 ha

Total employment supported by Agriculture

2.80 % 4.7 %

Farm Structure Many areas with natural constraints

4. RDPs Funding (2014-2020)

Total Budget 11.4 € billion Substantial RDP budget

Agriculture Environment Climate (AEC) € million

Area of Natural Constraints (ANC) € million

Table 2. Strengths of few of the selected 14 Non Food Crops

183 BIOGRACE

Criteria Indicators Miscanthus Switchgrass Giant Reed Hemp Corn/Sorghum/cereals

Sugar beet Buck wheat Rapeseed HEAR

Camelina Ethiopian Mustard

Sunflower

a)

Pro

du

cti

vit

y a

nd

ab

ilit

y t

o b

e

gro

w a

t la

rge s

cale

Geoclimatic conditions

Availability of Propagation materials

Availability of mechanisation

Crop Yield

b)

Ab

ilit

y

to

pro

du

ce

feed

sto

c

k f

or

mu

ltip

le

mark

ets

Recognised interest for multiple end-uses

c)

i) S

us

tain

ab

ilit

y (

so

cio

-

eco

log

ical)

Soil carbon level

GHG emission from production183

(<500 kg CO2eq/ha/yr)

(1000 kg CO2eq/ha/yr)

(<500 kg CO2eq/ha/yr)

(1100 for corn -2000 kg for triticale CO2eq/ha/yr)

(2500 kg CO2eq/ha/yr)

(2100 kg CO2eq/ha/yr)

(950 kg CO2eq/ha/yr)

Water abstraction/ Water use efficiency

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Indicators Miscanthus Switchgrass Giant Reed Hemp Corn/Sorghum/cereals

Sugar beet Buck wheat Rapeseed HEAR

Camelina Ethiopian Mustard

Sunflower

Fertiliser requirements

Pesticide and herbicide retirements

Employment

c)

ii)

Pro

fita

bilit

y

Production Costs

New profit margin for farmers

Current market price

TRL>7 ; TRL 5-7 ;TRL 3-5 ; TRL <3

Table 3. Indicators and rationale of selection

Criteria Indicators Defintion Rationale of Selection Units

a)

Pro

du

cti

vit

y a

nd

ab

ilit

y t

o b

e g

row

at

larg

e s

cale

Geoclimatic conditions Soil (clay content, texture, pH level, porosity)

and climatic conditions affect the crop production process.

Suitable soil and climatic conditions are important factors to consider when the land is being assessed for growing industrial crops.

Descriptive

Availability of Propagation materials

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

The availability of propagation materials (i.e., seeds, rhizomes, etc.) at commercial scale is one a key factor for a crop to be near-to-

practice. indicates readily available

propagation material, indicates that the

genetic material is generally available, but it is regulated by commercial agreements with breeders and seed companies linked to specific end-uses.

TRL 1-9

Availability of mechanisation

Technological readiness level (TRL) of the crop production is measured in a scale 1 to 9. TRL 1 is the lowest, indicating the earliest stage of development for a new technology, and TRL 9 is the highest.

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

This indicator will help farmers understand the level of innovation regarding crop cultivation and land management practices. This deliverable also follows the deliverable D1.2 TRL assessment method as follows. TRL >7 for crops which are already produced at the industrial scale and meet the commercial demands of the bio-based industries. TRL is between 5-7 when the crop production is the at the demo scale. TRL 3-5 is for crops which are moving from research scale to production development stage. Similarly, TRL<3 is for crops which are undergoing basic research,

TRL 1-9

Crop Yield Crop yield is measured per hectare of cultivated area.

The indicator is crucial for farmers and entrepreneurs to make decision on choice of crops for cultivation.

Tonne/ha/yr

b)

Ab

ilit

y t

o

pro

du

ce

feed

sto

ck f

or

mu

ltip

le m

ark

ets

Recognised interest for multiple end-uses

It identifies possible industrial end-uses of the feedstock. This indicator helps us understand the

possibility of market expansion and

ability of the crop to fulfill the demand of the bio-economy as it expands.

In global market (e.g. energy/fuels) there are emerging opportunities find possible end-uses of NFCs and consumer demand for these end-uses. Therefore, it is important to understand the potential of production and trade these feedstocks as the demand rises. Conversion and quality of the feedstock

Descriptive

c)

i) S

us

tain

ab

ilit

y (

so

cio

-eco

log

ical)

Soil carbon level (SOC)

It is the indicator which estimates the total organic carbon content in arable soils.

This indicator depends on the inherent quality of the soil but also depend on the type of plant/crop cover, land management practices/ cultivation practices, water holding and carbon exchange capacity of the crop, drainage status of the soil and weather conditions.

Total SOC is measured as Megatonnes (Mt); Mean SOC concentration in arable land: g/kg.

Greenhouse has emissions from production

This indicator measures GHG emission from agriculture and agriculture soils.

This indicator depends on the N2 fertilizer used, crop choices, management practices and fossil fuel used for production

tonnes of CO2

equivalent

Water abstraction/ Water use efficiency

It refers to the volume of water applied to soils for irrigation purposes.

Water use efficiency (WUE) gives information on water abstraction to produce crops.

Fertiliser requirements

It refers to the nitrogen fertilizer used or nitrogen use efficiency (NUE)

This indicator depends on the N2 fertilizer used.

Kg- N/ha/yr or Kg-P/ha/yr

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Pesticide and herbicide requirements

Resistance is the ability of a plant variety to restrict the growth and development of a specified pathogen/pest or the damage they cause when compared to susceptible plant varieties under similar environmental conditions and pathogen/pest pressure.

This indicator helps in understanding the resistance capacity of a crop against incidence of pest and diseases. The higher tolerance of crops makes them suitable and better choices. It means less inputs required, which means production costs is lower and the soil and water quality is also not compromised by the surface run off or ground water leaching.

Descriptive

Employment Full-time- employment (FTE) per value chian This indicator helps us estimate the contribution of a value chain in the form of FTE.

Percentage or Number of FTE per tonne of biomass

c)

ii)

Pro

fita

bilit

y

Production Costs

Production costs is the total costs for farmers to produce the crop

The total costs of production of a crop can be calculated by sum of variable costs (costs of inputs, labour cost) as well as fixed costs (land costs, overhead costs like farm level taxes and permits, depreciation costs of capital owned by farm equipment and buildings)

Euro/tonne

Net profit margin for farmers

The gross margin for a crop can be calculated by deducting the variable costs from the gross farm income from a crop per cropping season or per year. In order to measure the net farm profit margin, the calculation should include the capital costs (land, buildings, machinery, irrigation equipment ets) and fixed costs (land, building, machinery depreciation, administration, taxes etc).

The net profit margin is a decisive tool for farmers in farm management, estimating the returns and profit from production of a particular crop. This figure can also help in assess the performance of the crop per season and help in identifying where the farm management can be improved or streamlined.

Euro per year (or per cropping season)

Current market price

The market price for the crop varies during a year or per crop season, it decreases as supply increases and vice versa.

This indicator helps farmer understand the market and the potential profit they can make from the crop production.

Euro/tonne

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D1.3 Strengths and opportunities of near-to-practice non-food crops (NFCs)

in Italy

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Deliverable Title: D1.3 Strengths and Opportunities of near to practice non-food crops (NFCs) in Italy Deliverable Lead: Imperial College London (ICL) Related Work package: WP1 Author(s): UNIBO, CREA, ICL Communication level: PU Public PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) Grant Agreement Number: 773501 Programme: Horizon 2020 Start date of Project: November 2017 Duration: 40 months Project coordinator: CRES

Selected near-to-practice NFCs in Italy

Non-Food Crops (NFCs) have been cultivated in experimental, demonstration and commercial

fields in Italy since 1990.184 The share of industrial

(non-food) crop production in the period 2013-

2015, was 1.7%185.

Poplar, cardoon, giant reed, sorghum, camelina, hemp and guayule are the seven crops selected as near-to-practice NFCs for Italy in PANACEA based on their presence in the Italian agriculture. Poplar is selected as near-to-practice for Italy because poplar-based supply chains of the Italian agriculture are widely recognised at the international level for their use by the paper and plywood industry. As a result, poplar cultivation techniques have improved over the years through vegetative propagation and clonal selection. High yield and suitable geoclimatic conditions in Italy and its recognition as the feedstock for 2nd generation bioethanol plant is the main reason for the selection of giant reed. Giant reed is recognised worldwide and has potential to

demonstrate its sustainability as a feedstock for biobased economy. Similarly, Cardoon is also geoclimatic suitable crop for Italy and it has also been recognised by the biobased industry as potential crop for the biobased economy. Sorghum and hemp are two traditional crops of Italian agriculture, now the renewed interest for them and the possibility of new bio-based applications have further increased their importance. Guayule despite not been a native species of Europe was traditionally studied in Italy since the first world war as a possible source of natural rubber. Recently a research program lead by the Italian large company ENI-Versalis on guayule as alternative source of natural rubber has been started in southern Italy. Camelina is not traditionally cultivated in Italy, but the lack of oilseed crops suitable to autumn sowing have promoted the interest of farmers and related processing companies toward the adoption of camelina at large scale. This report provides facts and figures for selected NFCs in Italy, assesses their strengths and provides an outlook of opportunities in policy and industry for their future market uptake.

184 Luigi Pari (2011). Colture energetiche per la diversificazione del settore agricolo: i progetti di ricerca SUSCACE e FAESI. In Luigi Pari (Ed.): Lo sviluppo delle colture energetiche in Italia. Il contributo dei progetti di ricerca SUSCACE e FAESI. Ed. Nuova Cultura pp. 129-144 ISBN 9788861347304.

185 Based on CAP, 2016 report for Italy, Available From

https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/by_country/documents/cap-in-your-country-it_en.pdf,

STRENGTHS The strengths for each selected crop are assessed for:

a) productivity and ability to be grown at large-scale using existing machinery

b) ability to produce feedstock for multiple markets

c) sustainability and profitability A set of indicators from Common Agricultural

Policy (CAP)186 and from the project deliverable

D1.2187 has been used for the assessment. The

detailed definition of the indicators and the rationale for their selection can be found in the Annex Table 3. The rationale for choosing CAP related indicators is because non-food crops are or will be agricultural commodities and any planning, regulation and support will be developed under the framework of the Common Agricultural policy at EU or national level.

186 CAP Impact Indicators, Available from

https://ec.europa.eu/agriculture/sites/agriculture/files/cap-indicators/impact/2016-impact-indicators-fiches.pdf, [Accessed on 31 October, 2019]

187 PANACEA Deliverable D1.2 Inventory of near-to-practice

NFC Available from http://www.panacea-h2020.eu/wp-content/uploads/2019/05/D1.2-Inventory-of-near-to-practice-NFC.pdf, [Accessed on 1st October, 2019].

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Poplar

Poplar is mostly cultivated in Northern Italy, (95% of the total production). Crop production has been halved since late 90s (from 83,368 ha in 2000 to 39,308 ha in 2010). In 2017, the interest in poplar production started increasing again and the total area of poplar production

for wood industry in 2017 was 46,000 ha.188

Despite this increase, the current annual availability of poplar wood produced in Italy is insufficient for the overall needs of the industrial wood, paper, and energy sectors. This increase in demand together with the recognition of the strengths of poplar plantations for the Italian agroclimatic conditions make poplar an important crop for the bio-based sector in Italy. The decline of investments in poplar plantation recorded in Italy between 2000 and 2010, has been influenced by both economic variables directly related to the production such as timber prices and management costs, as well as external variables such as the discontinuity

of subsidies schemes.189

Yield: 6-10 t DM/ha/year poplar plantations for wood industry; 12-20 t DM/ha/year poplar

plantations for woodchips production (SRC).190

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Poplar is geo-climatically suitable for Italy. Propagation materials are easily available. Poplar cultivation and harvesting is highly mechanized both in wood and energy industry. In the first case, there are combined harvesters which can perform all the necessary operations for producing the final assortment (felling, delimbing and cross cutting). Large-size modified foragers equipped with specific headers for woody biomass are available for harvesting of poplar SRC intended for energy production.

Poplar is used for multiple purposes- biofuels, advanced biofuels, biobased products (construction materials, packaging materials, etc.) paper & pulp, wood industry (furniture, plywood).

188 Corona et al. 2018. Linee di indirizzo per una

pioppicoltura sostenibile. Pubblicazione realizzata con il contributo finanziario del Consiglio per la ricerca in agricoltura e l’analisi dell’economia agraria (CREA) e della Rete Rurale Nazionale (RRN) 189 Alex Pra, Davide Pettenella, 2017. Stima dell’andamento della redditività delle piantagioni di pioppo

alla luce delle politiche di settore. Forest - Rivista di Selvicoltura ed Ecologia Forestale 14(4):218-230 190 Di Candilo, M.; Facciotto G. 2012, Colture da biomassa ad uso energetico. Potenzialità e prospettive. Sherwood 18: 183 (2S) 10-19

Poplar plantation, Monterotondo, Rome Photo credit: CREA

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Sustainability Poplar cultivation requires significantly lower use of pesticides and mineral fertilizers compared to the main agricultural crops in the same regions. It can therefore contribute to climate change mitigation and to carbon removal from the atmosphere (it has been reported that one hectare of poplar captures 11 tons

of CO2 every year)191.

Profitability The increasing demand from biobased industry for lignocellulosic raw material and the recognition by public bodies of the relevant environmental functions (carbon sinks) with measures in favour of the poplar sector, can make poplar production profitable.

Poplar cultivation preserves the rural environment and makes it possible to decrease wood imports from primary forests.

Poplar based value chains can result in significant economic and social benefits for the rural communities.

Poplar is a low input crop with positive

energy balance and high energy efficiency when grown in the Mediterranean

agroclimatic zone192.

Poplar cultivation can support the creation of profitable business and generate employment for both skilled and unskilled

labour.193

191 Poplar: Efficiency and Value, Available from http://propopulus.eu/en/challenge/poplar-efficiency-value/ 192 Nassi o Di Nasso N, Guidi W, Ragaglini G, Tozzini C, Bonari EJGB. Biomass production and energy balance of a 12‐year‐old short‐rotation coppice poplar stand under different cutting cycles. 2010;2(2):89-97. 193 Poplar: Efficiency and Value, Available from http://propopulus.eu/en/challenge/poplar-efficiency-value/

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Giant Reed

Giant reed is mainly cultivated in northern Italy as a feedstock for biogas plants. It was

recognised as the main feedstock for the second-generation bioethanol plant built in 2013 in Vercelli, Northern Italy. The first industrial demonstration-scale plant in the world to produce bioethanol from lignocellulosic biomass with a capacity of 40,000 tons per year, with a dry biomass input of about 180,000 tonne/yr).

Yield: about 40 t DM/ha/year.194

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Giant Reed has high yields and can adapt well in variable soil and climatic conditions. It can thrive in hot, drought areas as well as wet habitat but can also survive in saline, poor texture soil with steep slopes.

Giant reed has multiple end uses: biofuel, paper and pulp, biogas, wooden building materials.

Rhizomes collection, selecting and soil planting operations can be assisted by specialized machines which significantly reduce establishment costs. According to the final use, the harvesting can be performed by cutting, shredding and baling after in-field drying. Fresh biomass can be chipped and loaded on trailer tractor in a single pass, with self-propelled forage harvester (SPFH) commonly employed for the harvesting of silage maize equipped with row-independent header for maize silage harvest (kemper type).

194 Di Candilo, M.; Facciotto G. 2012, Colture da

biomassa ad uso energetico. Potenzialità e prospettive. Sherwood 18: 183 (2S) 10-19

Photo: Giant Reed experimental field at CREA (Monterotondo, Rome)

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Sustainability

Profitability

Giant reed can store up to 44 t carbon/ha which is very high compared to other

annual crops.195

From an environmental point of view giant reed showed a positive energy balance with

a high-energy efficiency.196 Compared to

other energy crops, giant reed shows the lowest GHG emissions per unit of energy and the best performance in terms of cost per ton of dry biomass or per unit of

energy.197

Giant reed is found to be the most profitable crop among the perennial grasses grown in marginal lands198 and when compared with other traditional food crops, it has shown the highest annual gross margin of 647 Euro per ha.

Giant Reed is a promising crop for Italy as it is suitable to be grown in marginal and contaminated lands for phytoremediation.

Bridging phytoremediation with the production of this multipurpose crop could provide environmental benefits and social and economic opportunities, improving the overall sustainability of the biosystem. 199

195 Gioacchini P, Cattaneo F, Barbanti L, Montecchio D, Ciavatta C, Marzadori CJS, et al. Carbon sequestration and

distribution in soil aggregate fractions under Miscanthus and giant reed in the Mediterranean area. 2016;163:235-42. 196 Nassi, O., Roncucci, N., & Bonari, E. (2013). Giant reed (Arundo donax L.) as energy crop in Central Italy: a review. Italian

journal of Agronomy, 8(1S), 10-17. 197 Ibid. 198 Soldatos PJBR. Economic aspects of bioenergy production from perennial grasses in marginal lands of South Europe.

2015;8(4):1562-73. 199 Fernando, A. L., Barbosa, B., Costa, J., & Papazoglou, E. G. (2016). Giant Reed (Arundo donax L.): A Multipurpose Crop

Bridging Phytoremediation with Sustainable Bioeconomy. In Bioremediation and Bioeconomy (pp. 77-95). Elsevier.

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Cardoon

The interest for cardoon in Italy is also shown by the constitution of the Operational Group “GO-CARD” (2019-2022) in Tuscany Region aiming at the promotion of the cardoon cultivation in marginal areas for the development of regional bioeconomy.

In BIT3G Project - Third Generation Biorefinery Integrated into the Local area, 3,000 hectares are expected to be cultivated on marginal land surrounding Matrica biorefinery in Sardinia Region. Yield: Aproximatelly 1 t /ha seeds and 12 t

DM/ha/year biomass.200 A study by performed

in Sicily, Southern Italy in low irrigation conditions, yield from cultivated cardoon is 30.5 t/ha and wild cardoon is 18.8 t/ha. (Foti et al. 1999 as cited in Francaviglia, R.,et al., 2016). In rainfed conditions dry biomass yields recorded for cardoon was 10-15 t/ha (Piscioneri et al., 2000 as cited in Francaviglia,

R.,et al., 2016)201. Another study done in

marginal land in central Italy has observed the average 3 yr yield to be 8-18 t/ha 1.2-2.8 t/ha biomass and grain yield (Francaviglia, R. et al., 2016).

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Cardoon’s ability to grow in Mediterranean climate and marginal land makes it an interesting crop for the biobased industry. The crop can photosynthesize in winter, and can extract water and nutrient from very deep soil because of their extensive rooting system (Fernández et al., 2006, Ierna et al., 2012) as cited in (Mauromicale,

G. et. al., 2014).202

Direct sowing is possible. Combined machinery equipped with conventional headers for wheat harvest can be used (losses of seeds are relevant). A specific header has been developed by CREA for seed harvesting and biomass windrowing altogether.

Cardoon is a multi-purpose crop: seeds are a reliable source of bio-oil while biomass can produce bioenergy and other high added value products like bio lubricants, cosmetics, bioplastics and additives.

Matrica203 is an Italian biorefinery which

uses cardoon as a main crop for extraction of vegetable oils that are further converted to bio-monomers like pelargonic and azelaic acids which are building blocks for high value-added products.

200 Pari et al. 2016. Harvesting and separation of plant

fractions in Cynara cardunculus L. Chapter 5.1, pp. 261-271. In: Barth S, Murphy-Bokern D, Kalinina O, Taylor G & Jones MB (eds.) Perennial Biomass Crops for a Resource Constrained World, Springer. ISBN 978-3-319-44530- 201 Francaviglia, R., Bruno, A., Falcucci, M., Farina, R.,

Renzi, G., Russo, D. E., ... & Neri, U. (2016). Yields and quality of Cynara cardunculus L. wild and cultivated

cardoon genotypes. A case study from a marginal land in Central Italy. European journal of agronomy, 72, 10-19. 202 Mauromicale, G., Sortino, O., Pesce, G. R., Agnello,

M., & Mauro, R. P. (2014). Suitability of cultivated and wild cardoon as a sustainable bioenergy crop for low input cultivation in low quality Mediterranean soils. Industrial Crops and Products, 57, 82-89. 203 http://www.matrica.it/default.asp?ver=en

Cardoon harvester developed by Cressoni and CREA Photo credit: CREA

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Sustainability

Profitability

GHG emissions from cardoon when

compared with annual crops are lower.204

Cardoon is a C3 crop which shows stable crop yield in low quality rainfed

Mediterranean soils.205

Cardoon is a low input crop tolerating high salinity in soil. Pests are occasionally reported and controlled with copper and sulphur-based products (allowed in organic farming). Since cardoon is a perennial crop, the soil remains undisturbed for long time with a consequent improvement of the soil quality. Cardoon has the ability for phytoextraction, and soil remediation. It also has the ability to increase the soil fertility level by increasing the organic matter by 6.5%, total nitrogen by 15.5% and phosphorus content by 15.8% (Mauromicale et al., 2014) as cited in Francaviglia, et al., 2016.

Cardoon is a perennial species and most investments are mostly required during the first year and every year harvest has financial returns. Matrica biorefinery in Italy provides multiyear contracts to farmers with fixed price. Based on a study done in marginal land in central Italy, cardoon when compared with herbaceous crops and annual crops like durum wheat, sunflower and rapeseed have shown low cultivation costs and higher total revenues (79 Euro/ha for wild and 230 Euro/ha for cultivated). The revenues for crops were calculated using the difference between the yield outcomes

and yearly costs.206

204 S. Fazio, A. Monti, Life cycle assessment of different bioenergy production systems including perennial and annual crops,

Biomass Bioenergy 35 (2011) 4868–4878, http://dx.doi.org/10.1016/j.biombioe.2011.10.014. 205 Mauromicale G, Sortino O, Pesce GR, Agnello M, Mauro RPJIC, Products. Suitability of cultivated and wild cardoon as a

sustainable bioenergy crop for low input cultivation in low quality Mediterranean soils. 2014;57:82-9. 206 Francaviglia, R., Bruno, A., Falcucci, M., Farina, R., Renzi, G., Russo, D. E., ... & Neri, U. (2016). Yields and quality of

Cynara cardunculus L. wild and cultivated cardoon genotypes. A case study from a marginal land in Central Italy. European journal of agronomy, 72, 10-19.Yield prices were derived from Bezzi et al. (2006) for cardoon, and from ISMEA (Istituto di Servizi per il MErcato agricolo Alimentare, http://www.ismea.it) for the other herbaceous crops.

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Sorghum

Sorghum is mainly cultivated in central and southern region of Italy. About 50,000 ha of land in Italy is used to cultivate sweet, fibre and grain sorghum.

Sweet and fibre sorghum are characterized by considerable yielding capacity and high resilience. Specific harvesting systems for sweet and fibre sorghum have been tested over the last two decades and the results were generally positive. In future the yield can be 10-20% higher in biomass mostly depending on the availability of efficient harvesting systems and targeted varieties. Yield: The yield can vary between 10-20 t

DM/ha.207

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Sweet and fibre sorghum are easily adaptable crops because they use conventional machinery.

They are good crops for advanced biofuels and biogas.

They are harvested using self-propelled forage harvesters equipped with maize headers.

Sustainability

Profitability[FZ1]

They are both drought tolerant crops with deep rooting system.

Farmers can have dual income from sorghum; they can sell the juice or even the syrup or ethanol, while using grains and leaves as food / fodder for their own needs.

A study by Burrati et. al in Umbria shows that the 59.4% of the GHG emission from cultivation stage of sorghum is by the NO emissions resulting from N2 fertilisers.208

207 Zegada-Lizarazu, W., & Monti, A. (2012). Are we ready to cultivate sweet sorghum as a bioenergy feedstock? A review on

field management practices. Biomass and Bioenergy, 40, 1-12. 208 Buratti, C., Barbanera, M., & Fantozzi, F. (2013). Assessment of GHG emissions of biomethane from energy cereal crops in

Umbria, Italy. Applied energy, 108, 128-136.

Sorghum, Italy Photo credit: UNIBO

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Camelina

At present about 50 ha of land in Italy is used to cultivate camelina. It is mainly cultivated in central and northern part of Italy but also suitable for southern Italy. Camelina can be a

promising alternative to winter cereals (wheat, barley etc.). It has a short cycle therefore also allows a double cropping system between two main food crops, thus avoiding negative iLUC effects. Camelina is also a good source of protein: about 30% of protein are contained in the seeds. Some farmer cooperatives and livestock feeding industries are testing camelina in different regions of Italy. The primary interest of these cooperatives is in the protein fraction of camelina than oil. Yield: The yield can vary between 1.5-2.5 t/ha

of seeds.209 The herbicide resistant varieties of

camelina are expected to increase the yield by up to 40% if good agronomic management practices are followed.

209 Zanetti, F., Eynck, C., Christou, M., Krzyżaniak, M., Righini, D., Alexopoulou, E., ... & Monti, A. (2017). Agronomic

performance and seed quality attributes of Camelina (Camelina sativa L. crantz) in multi-environment trials across Europe and Canada. Industrial crops and products, 107, 602-608.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Camelina is a resilient and drought tolerant crop with deep rooting system and can be suitable crop for different environmental conditions.

Camelina oil extraction is a simple process and it has high linolenic acid and gondoic acid content. This makes the crop suitable to be used in bio-based industry and biorefineries.

Camelina cultivation can be done with conventional machinery which makes it an easy crop to adopt by farmers.

The seed cake of camelina has high protein suitable for animal feed.

Camelina, Italy Photo credit: UNIBO

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210 Bacenetti, J., Restuccia, A., Schillaci, G., & Failla, S. (2017). Biodiesel production from unconventional oilseed crops (Linum

usitatissimum L. and Camelina sativa L.) in Mediterranean conditions: Environmental sustainability assessment. Renewable Energy, 112, 444-456.

Sustainability

Profitability

It is resistant to pest and diseases and fertilisation can be done at the rate of 50-60 kg N/ha. Camelina is a rainfed crop, irrigation is never applied if sowing takes place in autumn, winter or early spring.

Camelina can offer good income to farmers since there are markets both for the seed oil and the remaining, protein- rich cake.

Camelina offers good vegetable ground cover which helps in reducing soil erosion. A study done by Bacenetti et al., in Italy in marginal soils and low inputs conditions showed that seed production comprises 80% of the environmental impact when assessing the value chain of camelina production and processing for biodiesel. Diesel fuel and exhaust gases emission from the tractors and machinery used for production accounted for the major part of

environmental impact.210

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Hemp

More than 5,000 ha [FZ2]of land in Italy is used to cultivate hemp. The crop can be cultivated all over Italy and is mainly used for seed production. Italy was the largest producer of Hemp up to 1940s after Soviet Union, more than 100,000 ha of land were planted with Hemp.

Hemp cultivation is Italy is seen as an opportunity to diversify the farm production from monoculture of wheat, to avoid soil erosion risks and loss of land fertility. Hemp has been legalised in Italy since 2016 and this has increased the production area of 400 ha

(2013) to 4,000 ha in 2016. 211

Yield: The seed yield is 0.5 t/ha.212

The moderate increase in the yield is expected with the availability of efficient harvesting systems and improved genotypes.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Hemp has shown good productivity in semi-arid Mediterranean climate of Italy, but its productivity is affected by water shortages and very low as well as high air temperatures. Variability of sowing dates and breeding tolerant varieties can increase

the yields.213

Hemp stems can produce fibers for textile industry, paper and pulp, building materials, insulation mats, etc.) and seeds can be used for oil. For the optimum dual-purpose production, the recommended hemp

planting density is 90–150 plants m−2.214

Knowledge for mechanical harvesting of hemp is high. Short fibre can be achieved using forage harvester equipped with modified cutting drums. Seed harvest can also be mechanised by adjusting the lift up of the header. The combined fibre and seed harvesting can also be achieved using ‘double cut’.

211 https://www.theguardian.com/world/2018/aug/30/it-

saved-our-business-italy-farmers-turn-to-cannabis-hemp 213 Cosentino SL, Riggi E, Testa G, Scordia D, Copani

VJIc, products. Evaluation of European developed fibre hemp genotypes (Cannabis sativa L.) in semi-arid Mediterranean environment. 2013;50:312-24.

214 Tang, K., Struik, P. C., Yin, X., Calzolari, D., Musio, S.,

Thouminot, C., ... & Amaducci, S. (2017). A comprehensive study of planting density and nitrogen fertilization effect on dual-purpose hemp (Cannabis sativa L.) cultivation. Industrial Crops and Products, 107, 427-438.

Industrial Hemp Plantation, West of Terni Photo credit: Reviride Project https://sensiseeds.com/en/blog/reviride-hemp-project-could-save-italys-industrial-heartland-from-pollution/

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Sustainability

Profitability

It is a high yield and low input crop. Both monoecious and dioecious hemp

genotypes have shown high productivity.215

Wheat yields a profit of €250 (£220) per hectare in today’s market, while hemp can generate net earnings in excess of €2,500 per hectare, according to Rete Canapa

Sicilia.216

Water requirement of different genotypes differs- 250 mm of water for monoecious

and 450 mm for dioecious genotypes.217

Hemp has shown high nitrogen use

efficiency (60 kg N ha−1).218

Hemp has phytoextraction ability and is used in rehabilitation of the polluted industrial land in Italy (RIVERIDE

project).219

A study done by Ingrao et al., shows that hemp cultivation stage has the most environmental impact based on the assessment of use of hemp for building materials using indicators like GHG protocol (GCP), cumulative energy demand

(CED) and Ecoindicator.220

Hemp when compared with other annual crops like sunflower, maize, wheat has shown to be less environmentally harmful based on eutrophication rates, climate

change and energy use.221

215 Ibid. 216 https://www.theguardian.com/world/2018/aug/30/it-saved-our-business-italy-farmers-turn-to-cannabis-hemp, 217 Ibid 218 Tang, K., Struik, P. C., Yin, X., Calzolari, D., Musio, S., Thouminot, C., ... & Amaducci, S. (2017). A comprehensive study of

planting density and nitrogen fertilization effect on dual-purpose hemp (Cannabis sativa L.) cultivation. Industrial Crops and Products, 107, 427-438. 219 https://sensiseeds.com/en/blog/reviride-hemp-project-could-save-italys-industrial-heartland-from-pollution/ 220 Ingrao, C., Giudice, A. L., Bacenetti, J., Tricase, C., Dotelli, G., Fiala, M., ... & Mbohwa, C. (2015). Energy and

environmental assessment of industrial hemp for building applications: A review. Renewable and Sustainable Energy Reviews, 51, 29-42. 221 Van der Werf, H. M. (2004). Life cycle analysis of field production of fibre hemp, the effect of production practices on

environmental impacts. Euphytica, 140(1-2), 13-23.

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Guayule

Guayule can be easily cultivated in southern Italy. Guayule is a woody perennial shrub which is less commercially advanced than the other industrial crops at present. .

Yield: The yield is 0.2-1 t/ha of latex.222

A moderate increase in the yield can be expected (10-50%) depending on the set up of agronomic management and machineries used for cultivation and harvesting. and application as dry rubber and latex for medicinal gloves and car tyres.

222 Paolo Gherbin, 1998. Guayule. In “Le colture di

nicchia”, M.T. Amaducci, V. Marzi, G. Venturi (Eds), Edagricole (Bologna, Italy), 99-104.

223 EAGLE Project. https://www.greenmaterials.fr/eagle-

project-guayule-a-multipurpose-crop-as-the-solution-to-the-shortage-of-natural-rubber-in-europe/

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Guayule is suitable for Mediterranean geoclimatic conditions based on the results of feasibility study and demonstrations done at experimental scale in the European Commission funded projects like EPOBIO, EAGLE, EU-PEARL etc. (links or references)

Guayule can represent the potential domestic source of feedstock for high-quality natural rubber, which can produce non allergenic latex and other by-products.

From an agronomic point of view, there are still some technical constraints that limit its market uptake possibilities such as the direct seeding, harvesting technology and yield level.

Guayule has potential to supply necessary feedstock for speciality niche market in Europe for chemical, medical, automotive,

plastics, adhesives and wood industries.223

Guayule, Europe Photo credit: EAGLE Project

OPPORTUNITIES

Current Markets & Industry of the selected crops

According to the ‘Bioeconomy in Italy report’224, bioeconomy sector225 accounted for a total turnover of EUR

330 billion in 2017 and around 2 million employees. Development of the biobased industry is in the strategic

priority plan of all regions in Italy for the overall development of bioeconomy226. After the exploitation of food

waste and byproducts, the focus is on increasing crop production on marginal and underutilized agricultural areas. Some of the regions are also focusing on reconversion of de-industrialized sites into biorefineries to produce bio-products and biochemicals.

Italy is leading the bio-based industry in EU and this is mainly due to innovations happening in biobased chemistry and industrial biotechnology sectors. There are well established value chains which are taking advantage of the green catalysts and microbes. The Italian bio-based industry has a large network of companies which are working together for the sustainable production and efficient use of biomass, following a principle of cascading to increase the added value of the agricultural production. The Italian bioeconomy Strategy has laid down the necessary policy framework which is required for the development of biotechnologies. Italy has the third-largest number of bio-technology companies and the highest rate of growth in biotechnology. Thus, this shows there is potential for growth of bio-based industry and for the uptake of the non-food crops.

Novamont227 focuses on transforming abandoned and marginal sites to innovative research centres and

industrial plants based on integrated biorefineries and territorial regeneration model by promoting the local innovative and sustainable agricultural value chains. The company is working together with farmers’ cooperatives and local industries to promote cardoon and safflower as a suitable crop which fits their model. There are also European Commission funded projects

in Italy which are supporting the research and development work on specific crops. EPOBIO (2005-2007)228

project in the past is funded by the Commission which conducted the research on Guayule. Guayule was

identified as an alternative supply of natural rubber for Europe. There was another project EAGLE Project229

which identified Guayule to be suitable for Mediterranean European countries and established 5 ha of land in Spain for the cultivation of Guayule and aimed to establish a biorefinery and use non-solvent water extraction process to produce monomers and polymers for natural rubber and latex. EU-PEARLS (2008-

224 http://cnbbsv.palazzochigi.it/media/1719/bit_en_2019_web.pdf 225 agriculture, forestry, fisheries, food and beverages production, paper, pulp and tobacco industries, textiles from natural fibers,

leather, bio-pharmaceuticals, green chemistry, biochemicals and bioenergy 226 A new bioeconomy strategy for a sustainable Italy, 2019 accessed on 1st October, 2019 227 https://agro.novamont.com/en/the-innovative-agricultural-system 228 EPOBIO (Economic Potential of Sustainable Resources – Bioproducts from Non-food Crops, 2005-2007) https://pure.york.ac.uk/portal/en/projects/epobio--bioproducts-from-non-food-crops(57785c3d-d2e3-48a7-86d9-3041b7770ef3).html 229 https://www.greenmaterials.fr/eagle-project-guayule-a-multipurpose-crop-as-the-solution-to-the-shortage-of-natural-rubber-in-

europe/

Figure 1. Strategic positioning of the regions with three pillars of bioeconomy.

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2012)230 is another European Commission funded project which did the feasibility study of Guayule for the

production. Besides the research and development projects, there are other initiatives which contribute to the success of

the Italian bio-based industry such as national technology clusters like Green Chemistry231. Green

Chemistry is a national platform which brings over 100 stakeholders of the value chain together – farmers, entrepreneurs, researchers - which promotes and develops the research and development activities of bio-based products. Italian bio-based industry has network of large, medium and small companies working together for the sustainable production and efficient use of biomass, following the principle of cascading to increase the added value of agricultural production. There are specific projects under Green Chemistry

cluster like - Alternative Lignocellulosic Biomasses for Elastomer (ALBE) whose main aim in innovating the

production of synthetic elastomers and natural rubber; Third Generation Biorefinery Integrated at Local Level (BIT3G) whose main aim is development of sustainable farming methods to obtain high value added bio-based chemicals and energy.

Similarly, there is an Italian association of biotechnology companies, Assobiotec, and the Network CR 2050 which facilitate synergies between industrial and agricultural companies. In addition to these there are National Technology Clusters which focuses on the biotechnologies and biobased economy.

Re-industrialisation in Italy has investment support of over a billion euros. The industrial sites which are in crisis are converted into bio-refineries. There are flagship biorefineries plants (Figure 2) which are launched in different regions of Italy and they focus on production of succinic acid, azelaic and pelargonic acid, biofuels from vegetable oils, bases for bio lubricants and bio additives for natural rubber.

There are companies like Canapar232 which is working

together with University of Catania to support farmers increase both quality and quantity of hemp cultivation. Canapar acts as a liaison between farmers and the fast-growing innovative cannabis industry. The company has a plant near Ragusa in Italy which produces Pharmaceutically GMP certified cannabis

oil and its derivatives. Similarly, the South Hemp233 is another

company which has established agricultural value chain in Southern and Central Italy to promote the cultivation of hemp and its processing to produce construction materials, animal bedding, mulch for gardening, textiles etc. The company supports

farmers by providing certified seeds, technical assistance in land preparation and seed and fiber harvesting and storage processes. There are other

companies like Salute Sativa234, Layn Europe SRL235 , Federcanapa236 in

Italy who are promoting the cultivation and processing of hemp.

230 EU-PEARLS (EU-based Production and Exploitation of Alternative Rubber and Latex Sources, 2008-2012) https://cordis.europa.eu/project/rcn/87956/reporting/en 231 https://www.researchitaly.it/en/national-technology-clusters/green-chemistry/ 232 https://www.canapar.com/what-we-do/ 233 http://www.southemp.it/index.php/en/ 234 http://www.salutesativa.com 235 http://www.layncorp.com 236 http://www.federcanapa.it/http://www.federcanapa.it/

Figure 2. Biorefineries in Italy, Bioeconomy in Italy, 2019 Current trend (2016)

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Supporting Policies The 2020 NREAP target (Decree Minister of Economic Development of 30 June 2010) for Italy is 17% of the total energy consumption. Of which target for electricity share of total renewable consumption is 17%, heating and cooling share is 17.1% and transport is 10.1%. In order to achieve these targets, there are policy mechanisms in place to promote the agricultural biomass uptake in Italy in different stages of the value chains for bioenergy and biofuel uses. There are also policies like Biorefinery Decree 2013 (Decree Minister of Economic Development of 9 October 2013, n. 139) which was introduced for the authorisation procedures for second and third generation biorefineries. This supported the alternative uses of the biomass feedstock to produce bioplastics, biopharmaceuticals and biochemicals. In addition to these there are certain trainings and financial support for R&D activities. Production Conversion Distribution End-use CAP-Italian Development Programme

Forest Management Plan Biofuel quota and Tradable certificates Nitrates Directive

RES-E support schemes: Tax regulation, Net metering and Premium Tariff

Decree Law no. 40- Energy efficiency targets implementation fund

Climate Decree Guidelines for renewable energy sources Training programmes for RES installers

White Certificate Trading for End-use Energy Efficiency

Eco-design Requirement for energy-related products

National emissions target under the EU Effort Sharing Decision (406/2009/EC) Italy

National Energy Strategy 2030; Integrated National Plan for Energy and Climate 2030; National Plan for Biofuels and Biomass; National Action Plan on Green Public Procurement (PAN GPP); National Smart Specialization Strategy (SNSI); Action plan on sustainable production and consumption (PAN

SCP) ;National Strategy for Bioeconomy 2017-2030; NECP 2021- 2030 Italy

ANNEX Table 1. Country Indicators: Italy237

237 Based on CAP, 2016 report for Italy, Available From https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/by_country/documents/cap-in-your-country-it_en.pdf [Accessed on 15 July, 2019]

EU-28 average Assessment 1. Population and Demographics unit unit Total Population 61 Million 18 Million Population living in rural area 58 % Large percentage of the population lives in the rural areas. Young Farmers (<35 yrs) 4.5 % 5.9 % 4.5% of the farmers community are young farmers which less than EU

average. 2. Land use indicators Total Area 302069 km² km² 30.2 million ha of total land Agricultural Area 54 % 16.5 million ha of land is agricultural area of which only 12.6 million is

in use (ISTAT, 2018) Forest Area % Marginal Land (D2.1 MAGIC) 38722 km² 12.8% of the total area is the marginal land (MAGIC) which means a

huge potential to exploit these underutilised land resources. 3. Farming Sector Farm Size Small-sized

(58.7% <5 ha)

24 ha av

16.1 ha

Industrial crops production 1.7 % Organic Agriculture 1000 ha Total employment supported by

Agriculture 3.6 % 4.7 %

Farm Structure Italy has highly-diverse agricultural sector and main challenge is water scarcity 4. RDPs Funding (2014-2020) Total Budget 2 € billion Agriculture Environment Climate

(AEC 1 € million 4.84% of total RDP

Area of Natural Constraints (ANC)

n/a € million

Organic Farming n/a € million 5 NREAP 2005 share 5.2 % 17.52 % 2020 target 17 % 20 %

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Table 2. Strengths of selected non-food crops (NFCs)

Criteria Indicators Poplar Giant reed Cardoon Sorghum Camelina Hemp Guayule

a)

Productivity

and ability to

be grow at

large scale

Agr

onom

ic

Req

uir

emen

ts

Geoclimatic conditions

Availability of

Propagation materials Availability of

mechanisation Crop Yield

b) Ability to produce

feedstock for multiple

markets

Recognised interest for

multiple end-uses

c) i)

Sustainability

(socio-

ecological)

En

viro

nm

enta

l Im

pact

s

Soil carbon level

GHG emission from

production

Water abstraction/

Water use efficiency Fertiliser requirements

Pesticide and herbicide

retirements

Soci

al

Impa

cts

Employment

c) ii)

Profitability

Eco

nom

ic

Impa

cts

Production Costs

Net profit margin for

farmers Current market price

Str

eng

ths T

RL

>7

; T

RL

5-7

;T

RL

3-5

; TR

L <

3

Table 3. Indicators and rationale of selection

Criteria Indicators Defintion Rationale of Selection Units

a)

Pro

ductivity a

nd

ab

ility

to

be g

row

at la

rge

sca

le

Geoclimatic conditions

Soil (clay content, texture, pH level, porosity) and climatic conditions affect the crop production process.

Suitable soil and climatic conditions are important factors to consider when the land is being assessed for growing industrial crops.

Descriptive

Availability of Propagation materials

TRL >7 (corresponding to )

which is the maximum achievable value for any crop to TRL <3 (corresponding

to ) which identifies a very limited

performance for the availability of mechanization system.

The availability of propagation materials (i.e., seeds, rhizomes, etc.) at commercial scale is one a key factor for a crop to be

near-to-practice. indicates readily

available propagation material,

indicates that the genetic material is generally available, but it is regulated by commercial agreements with breeders and seed companies linked to specific end-uses.

TRL 1-9

Availability of mechanisation

Technological readiness level (TRL) of the crop production is measured in a scale 1 to 9. TRL 1 is the lowest, indicating the earliest stage of development for a new technology, and TRL 9 is the highest.

TRL >7 (corresponding to )

which is the maximum achievable value for any crop to TRL <3 (corresponding

to ) which identifies a very limited

performance for the availability of mechanization system.

This indicator will help farmers understand the level of innovation regarding crop cultivation and land management practices. This deliverable also follows the deliverable D1.2 TRL assessment method as follows. TRL >7 for crops which are already produced at the industrial scale and meet the commercial demands of the bio-based industries. TRL is between 5-7 when the crop production is the at the demo scale. TRL 3-5 is for crops which are moving from research scale to production development stage. Similarly, TRL<3 is for crops which are undergoing basic research,

TRL 1-9

Crop Yield Crop yield is measured per hectare of cultivated area.

The indicator is crucial for farmers and entrepreneurs to make decision on choice of crops for cultivation.

Tonne/ha/yr

b)

Ab

ility

to

pro

duce

fee

dsto

ck fo

r

mu

ltip

le m

ark

ets

Recognised interest for multiple end-uses

It identifies possible industrial end-uses of the feedstock. This indicator helps us understand the possibility of market expansion and ability of the crop to fulfill the demand of the bio-economy as it expands.

In global market (e.g. energy/fuels) there are emerging opportunities find possible end-uses of NFCs and consumer demand for these end-uses. Therefore, it is important to understand the potential of production and trade these feedstocks as the demand rises. Conversion and quality of the feedstock

Descriptive

c)

i) S

usta

inab

ility

(socio

-

eco

log

ica

l)

Soil carbon level (SOC)

It is the indicator which estimates the total organic carbon content in arable soils.

This indicator depends on the inherent quality of the soil but also depend on the type of plant/crop cover, land management practices/ cultivation practices, water holding and carbon exchange capacity of the crop, drainage status of the soil and weather conditions.

Total SOC is measured as Megatonnes (Mt); Mean SOC concentration in arable land: g/kg.

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Greenhouse has emissions from production

This indicator measures GHG emission from agriculture and agriculture soils.

This indicator depends on the N2 fertilizer used, crop choices, management practices and fossil fuel used for production

tonnes of CO2

equivalent

Water abstraction/ Water use efficiency

It refers to the volume of water applied to soils for irrigation purposes.

Water use efficiency (WUE) gives information on water abstraction to produce crops.

Fertiliser requirements

It refers to the nitrogen fertilizer used or nitrogen use efficiency (NUE)

This indicator depends on the N2 fertilizer used.

Kg- N/ha/yr or Kg-P/ha/yr

Pesticide and herbicide requirements

Resistance is the ability of a plant variety to restrict the growth and development of a specified pathogen/pest or the damage they cause when compared to susceptible plant varieties under similar environmental conditions and pathogen/pest pressure.

This indicator helps in understanding the resistance capacity of a crop against incidence of pest and diseases. The higher tolerance of crops makes them suitable and better choices. It means less inputs required, which means production costs is lower and the soil and water quality is also not compromised by the surface run off or ground water leaching.

Descriptive

Employment

Full-time- employment (FTE) per value chian

This indicator helps us estimate the contribution of a value chain in the form of FTE.

Percentage or Number of FTE per tonne of biomass

c)

ii) P

rofita

bili

ty

Production Costs

Production costs is the total costs for farmers to produce the crop

The total costs of production of a crop can be calculated by sum of variable costs (costs of inputs, labour cost) as well as fixed costs (land costs, overhead costs like farm level taxes and permits, depreciation costs of capital owned by farm equipment and buildings)

Euro/tonne

Net profit margin for farmers

The gross margin for a crop can be calculated by deducting the variable costs from the gross farm income from a crop per cropping season or per year. In order to measure the net farm profit margin, the calculation should include the capital costs (land, buildings, machinery, irrigation equipment ets) and fixed costs (land, building, machinery depreciation, administration, taxes etc).

The net profit margin is a decisive tool for farmers in farm management, estimating the returns and profit from production of a particular crop. This figure can also help in assess the performance of the crop per season and help in identifying where the farm management can be improved or streamlined.

Euro per year (or per cropping season)

Current market price

The market price for the crop varies during a year or per crop season, it decreases as supply increases and vice versa.

This indicator helps farmer understand the market and the potential profit they can make from the crop production.

Euro/tonne

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D1.3 Strengths and opportunities of near-to-practice non-food crops (NFCs)

in Lithuania

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Deliverable Title: D1.3 Strengths and Opportunities of near to practice non-food crops (NFCs) in Lithuania Deliverable Lead: Imperial College London (ICL) Related Work package: WP1 Author(s): LAMMC, ICL Communication level: PU Public PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) Grant Agreement Number: 773501 Programme: Horizon 2020 Start date of Project: November 2017 Duration: 40 months Project coordinator: CRES

Selected near-to-practice NFCs in Lithuania Non Food Crops (NFCs) have been cultivated at experimental, demonstration and commercial level

in Lithuania for 13 years.238 The first experiments

on NFCs were established in 2007 at Lithuanian

Institute of Agriculture.239 The share of industrial

(non-food) crop production in the period 2013-

2015, was 10.5%240.

Willow, poplar, hemp, camelina, rapeseed and triticale are selected as near-to-practice NFCs for Lithuania, based on the presence of these crops in the Lithuanian agriculture. Poplar, willow, triticale and rapeseed, are grown widely and agronomic practices are well established. Camelina and hemp production are increasing.

238 PANACEA partner’s observation 239 https://www.manoukis.lt/mano-ukis-zurnalas/2007/09/nauji-energetiniu-augalu-tyrimai/ 240 Based on CAP, 2016 report for Lithuania, Available From https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/by_country/documents/cap-in-your-country-lt_en.pdf,

Willow and poplar are mainly used for bioenergy in Lithuania and seen as potential energy crops which can meet the increasing demand in the district heating sector. Rapeseed production is slowly increasing as it is also seen as potential crop to meet growing demand for biofuels. Triticale is already used for bioethanol production. There are research prorgams to optimise the conversion of triticale. Hemp is currently grown for fiber production and many research programs are focussed on the extraction of phytocanabinoids. These research programs have made hemp an interesting crop among farmers and there is an

increase in cultivation. This year a new law241 is

established which would allow to grow hemp not only for fiber, but also for the extraction of CBD and production of other products – fiber-boards, textile etc. Camelina is not grown at large scale, but Lithuanian farmers and biobased industry are interested to learn more about its cultivation, processing and market ascamelina has shown potential opportunities in other European countries. This report provides facts and figures for selected NFCs in Lithuania, assesses their strengths and provides an outlook of opportunities in policy and industry for their future market uptake.

241 https://e-seimas.lrs.lt/portal/legalAct/lt/TAD/6143e811a6c111e9aab6d8dd69c6da66?jfwid=-y0intnev2; https://www.vz.lt/laisvalaikis/maistas-ir-gerimai/2019/07/03/vyriausybe-pritare-pluostiniu-kanapiu-produktu-iteisinimui;

STRENGTHS All six selected- willow, poplar, hemp, camelina, rapeseed and triticale – near-to-practice NFCs for Lithuania will be assessed in detail based on the three criteria:

a) productivity and ability to be grown at large-scale using existing machinery

b) ability to produce feedstock for multiple markets

c) sustainability and profitability

242 CAP Impact Indicators, Available from

https://ec.europa.eu/agriculture/sites/agriculture/files/cap-indicators/impact/2016-impact-indicators-fiches.pdf, [Accessed on 31 October, 2019]

A set of indicators from Common Agricultural

Policy (CAP)242 and from the project deliverable

D1.2243 has been used for the assessment. The

detailed definition of the indicators and the rationale for their selection can be found in the Annex Table 3. The rationale for choosing CAP related indicators is because non-food crops are or will be agricultural commodities and any planning, regulation and support will be developed under the framework of the Common Agricultural policy at EU or national level.

243 PANACEA Deliverable D1.2 Inventory of near-to-practice

NFC Available from http://www.panacea-h2020.eu/wp-content/uploads/2019/05/D1.2-Inventory-of-near-to-practice-NFC.pdf, [Accessed on 1st October, 2019].

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Poplar

The total production of poplar in 2019 is

roughly 700 ha.244 Poplar is mainly grown on

marginal lands in Lithuania.

EUROMEDIENA245 is the first company to

grow poplar in Lithuania. The production trend

has increased between 2015 and 2019.246

Yield: The yield of poplar largely depends on the geoclimatic and soil conditions of the land where it is grown.

Figure 1. Field experiments on poplar cultivation at Lithuanian Research Centre for Agriculture and Forestry, Akademija, 2008 and 2009.

Sustainability Profitability Growing poplar in marginal land could increase soil quality, it has many environmental benefits – place for birds, wild animals and increases the biodiversity.

Poplar do not require much management and fertilization therefor the profitability is acceptable.

244 https://www.vic.lt/ppis/statistine-informacija 245 ttp://www.euromediena.com/en

246 https://osp.stat.gov.lt/

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Suitable crop to grow in marginal as well as less intensive agriculture land in Lithuania.

The share of bioenergy in district heating sector reached 80% in Lithuania, therefore biomass demand is increasing which can be fulfilled by poplar.

Poplar production trend in Lithuania

0

200

400

600

800

2015 2016 2017 2018 2019

Are

a,

ha

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Willow Willow is grown in total area of 4000 ha in

2019.247 Willow is grown on marginal lands

and mainly to reduce the soil degradation. Willow production has increased between

2015 and 2019.248

Yield: The yield of the willow on the sixth year

of the plantation is 53 t/ha.1

Figure 2. Field experiment on willow cultivation at Lithuanian Research Centre for Agriculture and Forestry, Akademija, 2008 and 2009. Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Suitable crop to grow in marginal as well as less intensive agriculture land in Lithuania. Harvesting of willow plantation is mechanised using modified maize harvesters or other special equipment. This special equipment can cut 1 ha of plantation in 1.5 hr. (Ref)

The share of bioenergy in district heating sector reached 80% in Lithuania, therefore biomass demand is increasing which can be fulfilled by willow.

Sustainability

Profitability

Growing poplar in marginal land could increase soil quality, it has many environmental benefits – place for birds, wild animals and increases the biodiversity.

Poplar do not require much management and fertilization therefor the profitability is acceptable.

247 https://www.vic.lt/ppis/statistine-informacija/ 248 https://osp.stat.gov.lt/

Willow production trend in Lithuania

0

1000

2000

3000

4000

5000

2015 2016 2017 2018 2019

Are

a,

ha

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Hemp

The total area of hemp production in 2019 is

9,182 ha.249,250 Hemp is mainly grown for its

fiber biomass and seeds. Industrial hemp production started in Lithuania in 2011 on 54 ha of land and with legalisation, the hemp production started to grow. The hemp

production trend grew between 2013 and

2019.251 In 2018 there are 18 varieties of

hemp grown in Lithuania. Main areas were covered by varieties ʽUso-31ʼ (1647.62 ha), ʽFinolaʼ (1000.78 ha) and ʽFuturaʼ 75ʼ (634.41 ha). The main companies working with hemps in Lithuania are UAB “natūralus pluoštas”, UAB

“AgroPro”252, UAB Borela253. There is also

an association of farmers, hemp growers and producers called “Association of hemp

growers”.254

Yield: 9-10 t/ha of dry biomass and up to 11-

14 t/ha of dry biomass in trials.255,256,257 Fibre

content in stems of hemp plant is up to 25-30 percent.

.

249 https://www.delfi.lt/agro/agroverslo-naujienos/rekordiniai-pluostiniu-kanapiu-plotai.d?id=82785485; 250 http://www.vic.lt/leidiniai/lietuvos-zemes-ukis-faktai-ir-skaiciai-2007-m/ 251 https://osp.stat.gov.lt/. 252 (https://www.agropro.lt/); 253 (https://www.borela.lt/nuo-seklos-iki-perdirbimo/). 254 (https://www.pkaa.lt/naujienos/) 255 Jankauskienė Z., Gruzdevienė E. Beniko and Bialobrezskie – industrial hemp varieties in Lithuania //

Environment. Technology. Resources: proceedings of the 7th International Scientific and Practical Conference, Rezekne, June 25-27, 2009. Volume I. Rezekne, 2009. P. 176-182. (ISSN 1691-5402) (ISBN 978-9984-44-027-9)’; 256 https://manoukis.lt/naujienos/renginiai/pluostiniu-kanapiu-auginimo-ir-perdirbimo-perspektyvos; 257 https://manoukis.lt/mano-ukis-zurnalas/2013/11/pluostiniu-kanapiu-auginimas-ir-derliaus-dorojimas/

Hemp production trend in Lithuania

0

5000

10000

201

3

201

4

201

5

201

6

201

7

201

8

201

9

Are

a, h

a

Figure 3. Small scale field experiments, Akademija, 2019 and big-scale hemp cultivation, Lithuania, 2015

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Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

9-10 t/ha of dry biomass. Fibre content in stems of hemp plant at large scale fields is not evaluated yet.

Fiber treatment plant is built in Lithuania which requires the raw material and hemp is the feedstock with good potential.

Sustainability

Profitability

All parts of hemp fibre plant can be usefully utilised as well as hemp is useful for crop rotations, soil improvement and is CO2 friendly.

Depends on market and situation.

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Triticale The total production area for winter triticale in 2018 was 47,587 ha which is low compared to production area in 2015 which was 93,231 ha. The production area for summer triticale was 10,087 ha in 2018 which was low compared to

29,221 ha in 2015.258 This shows that the

triticale production trend has decreased over the years. Triticale is cultivated in all regions of

Lithuania as show in maps in Figure 3.259

Triticale is mainly produced for bioethanol and there are research attempts to optimised use

of triticale through combined systems of the use of triticale for bioethanol – the use of residues for biogas production and generation of electricity – the use of biogas digestate for crop fertilization are already implemented and seems to be promising for no waste technologies. Yield: The average yield between 2014 and

2018 is 3.36 t/ha.260

258 http://www.vic.lt/leidiniai/lietuvos-zemes-ukis-faktai-ir-skaiciai-2007-m/ 259 http://zuikvc.maps.arcgis.com/apps/MapSeries/index.html?appid=083dac87c94a47fc98a1b1ae2c271f8e)

260 https://manoukis.lt/naujienos/rinka/lietuvoje-javu-derlingumas-vienas-maziausiu-europoje

Figure 3. Winter Triticale and Summer Triticale production distribution in 2019

Figure 4. Winter triticale, Summer triticale at Ukmerge district, 2018 and field experiments, Akademija, Lithuania

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Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Lithuania agriculture has good experience with technologies and technique for triticale production as well as used for treatment.

Could be used to meet the increasing bioenergy demand from Lithuania.

Sustainability

Profitability

Sustainability of growing triticale depends on farming practices. It can improve by including legumes in cropping systems and/ or by the effective utilization of residues – for example biogas production. Such production may be part of circular and sustainable bioeconomy.

The profitability of triticale production for bioethanol depends very much on the demand of bioethanol and policy decisions. Direct subsidies increase the profitability of this crop.

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Rapeseed The total production area of winter rapeseed in 2018 was 145,205 ha which is more compared

to 123,482 ha in 2015.261 Similarly, summer

rapeseed production in 2018 was 63,854 ha which is more compared to 41,123 ha in 2015. Rapeseed production trend has increased over the years. It was mainly grown for oil production. It is distributed in all regions of the

country as shown in the maps in Figure 5.262

Yield: The average yield between 2014-2018

was 2.51 t/ha.263,264

261 http://www.vic.lt/leidiniai/lietuvos-zemes-ukis-faktai-ir-skaiciai-2007-m/ 262 (http://zuikvc.maps.arcgis.com/apps/MapSeries/index.html?appid=083dac87c94a47fc98a1b1ae2c271f8e)

263 https://manoukis.lt/naujienos/rinka/lietuvoje-javu-derlingumas-vienas-maziausiu-europoje; 264 https://osp.stat.gov.lt/statistiniu-rodikliu-analize?theme=all?hash=052caddc-8148-4216-a896-b7297ebb8df7#/

Figure 5. Winter rapeseed and spring rapeseed in Lithuania, 2019

Flowering winter rapeseed, Panevezys district, 2018

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Camelina

Lithuania is currently grown on western regions of Lithuania where agriculture is less intensive. Camelina is grown in small areas for experiment and for research on oil processing.

Yield: 1 t/ha.265,266The yield is expected to

increase with the selection of most suitable verities of camelina.

Research programs for camelina production and processing has increased farmers interest it its cultivation.

265 http://ukininkopatarejas.lt/15948/; https://mita.lrv.lt/uploads/mita/documents/files/projektai/igyvendinti/eureka/ataskaitos/ataskaita_1_2_1_8.pdf;

266 https://www.manoukis.lt/mano-ukis-zurnalas/2005/02/aliejiniu-augalu-ir-javu-misiniai-ekologiniame-ukyje/

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Camelina is suitable the weather and other environmental conditions are suitable for their growth.

There is very limited market at the moment in Lithuania, but it is discussed that this crop could be grown in western part of the country and new investments in oil production are expected.

Sustainability

Profitability

Camelina could be one of new crops in Lithuanian farming systems and increase of biodiversity in the countries agricultural sector.

Profitability depend very much on the yield of camelina and the price of the final product.

Summer camelina, Klaipeda district, 2018.

Camelina yield for different varieties for 2009-2011 (LAMMC)

0,45

0,59

1,04

0,67

0,580,69

0,50

0,90

0,52

0,00

0,20

0,40

0,60

0,80

1,00

1,20

4 kg ha-1 6 kg ha-1 8 kg ha-1

2009 2010 2011

t ha-1

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OPPORTUNITIES

Current Markets & Industry of the selected crops Bioenergy sector is slowly developing in Lithuania and in 2016 the annual turnover of the sector reached 410 Euro million. Between 2000 and 2016 the use of biomass in district heating has increased from 2

to 65%.267 Lithuania has well developed biomass for heating sector and more than 80% of district

heating is produced from biomass. According to the statistics on biofuel consumption in 2015268

Lithuania consumed 74 million litres/yr of biodiesel and 19 million litres/yr of bioethanol. This shows that

the main share of biofuel is biodiesel (84.7%) and only 14% is bioethanol in 2015.269 The total share of

renewable energy increased from 15 to 20.2 % in 2015. It is expected that willow and poplar could contribute in bioenergy sector. There is huge interest in the eco-friendly organic products which creates opportunity for small-scale non-food crops to be grown under organic agronomic practices.

Figure 8. Use of biomass in heating sector270

Lithuania was one of the first countries which established biomass exchange company which help to regulate this sector. The Biomass Exchange is an online trading venue in which market participants – sellers (suppliers of biomass) and buyers (normally heat production companies) – meet anonymously and can finalise their contracts electronically. By means of the trading system of the exchange, the participants can quickly and easily sell their products and purchase the required quantity of

biomass271.The main objective of the Biomass Exchange is to promote competition in the biomass

market and to ensure conditions for the formation of transparent, objective, and economically substantiated prices of traded products.

In 2012, legal regulation for the establishment and operation of the exchange was developed and a system for finalising small-scale, short-term contracts of purchase and sale of biomass was implemented. Following comprehensive analysis and evaluation of the practices in the biomass market,

267 http://www.biokuras.lt/en 268 EU Biofuels Annual 2015. Gain report No. NL 6021; 2016. 269 Energy balance 2015. Statistics Lithuania. Vilnius. 2016. 270 http://www.biokuras.lt/en 271 https://www.baltpool.eu/en/about-exchange/

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in the summer of 2013 BALTPOOL UAB implemented an improved trading model intended for organising long-term supplies.

Figure 9. Scheme of operation of the Biomass Exchange272

The largest bioethanol producer in Lithuania is UAB “Kurana”273. UAB

“Kurana” is the first company inside EU which connected manufacturing of bioethanol (base of biofuels), electricity and thermal energy from renewable energy sources (biogas produced by mesocphilic process) into one uninterrupted technological loop. This technological loop produces zero waste plus valuable organic fertilizers that are becoming more and more popular in contemporary farming. The newest technologies and facilities were adopted from Europe and USA.

Graanul Invest274 is the fastest growing biobased company whose headquarter is in Estonia and is

currently largest renewable energy producers (wood pellets) in Europe. UAB Graanul Invest is the pellet producing plant in Lithuania established since 2005. The company is also working in partnership with EU H2020 INEA (Innovation and Networks Executive Agency) to demonstrate the production of aviation fuel from wood and isobutene-derived gasoline. One of the main biodiesel producers in Lithuania is

UAB “Rapsoila”275. Rapsoila UAB is the first plant in

Lithuania producing biodiesel, glycerol and rapeseed oil cakes from locally sourced Lithuanian rapeseed. The company facilitates the trade of rapeseed and necessary inputs for production (feed, fertilisers, or additives) and have a highly-qualified team of experts who conduct all technological and production processes to ensure the production of top-quality biodiesel. The company has a waste-free production process and focus on ecological sustainability.

272 https://www.baltpool.eu/en/about-exchange/ 273 http://www.kurana.lt/en/ 274 Grannul Invest, https://www.graanulinvest.com/eng/frontpage 275 http://www.rapsoila.lt/en/biofuel-factory-rapsoila/

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The Open R&D Lithuania276 is a consortium of research

institutes and universities who are focusing on sustainable processing of biomass into bioproducts and bioenergy. The consortium comprises of over 65 research facilities who are producing experts highly qualified in industrial biotechnology and chemical engineering.

The Association of Fibre Growers277 brings together farmers,

processors, traders, researcher, specialist all together to share their experience on cultivation and

processing of the crops. Similarly there is Lithuanian Biogas Association278 which promotes the biogas

production.

276 https://openlithuania.com/area/biorefinery/ 277 https://www.pkaa.lt/kontaktai/ 278 http://www.lbda.lt/en/contacts

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Supporting Policies Lithuania has national laws and strategies in place which support the mobilisation of the production of energy crops. The main strategy which supports the bioenergy use and development in Lithuania are

National Energy Strategy279 and there are Law on Energy280, Law of Electric Energy 281, Law on Heat

Sector 282, Law on Renewable Energy283 which corresponds to the European Legislations. In the

Lithuanian National energy Strategy, there are specific legal acts which promotes the development of SRF plantations for energy production and aims to provide about 70 ktoe energy needs in 2025. There are legal acts which promotes the use of agricultural waste in bioenergy production There are other laws like the Law on environmental protection and the Law on water quality which encourages the county to look for alternative sources of renewable and clean energy to reduce the fossil fuels consumption. Similarly, the policy mechanisms like feed-in-tariffs for renewable sources, law

of excise tax, the Law on biofuel284, environmental pollution tax, tax on natural resources all supports

the conversion and distribution of the biomass based renewable energy. There are additional law and funding programs which support the mobilisation of biomass for energy and non-energy end-uses, like Lithuanian environmental investment funds, fund for climate change mitigation and funding for biofuel production.

Production Conversion Distribution End-use

LIT

HU

AN

IA

CAP- Rural Development Law of the Republic of Lithuania on Heat Sector Forest Law No. I-671. The forest law of the republic of Lithuania

Environment Pollution Tax

Rules on Funding for Developments in

Biofuel Production

Regulations on private forest management and

use

Law on Energy from Renewable Sources -Feed-in Tariffs for Electricity

Excise Duty Act Fund for Climate Change

Mitigation Environmental pollution tax

Lithuanian Environmental Investment

Fund (LEIF)

Law on Energy from Renewable Sources

(FiTs, FiPs, Tender)

Law on taxes on state natural resources Renewable Energy Act

Law on Environment Protection (EPL) Law on Water

National emissions target under the EU Effort Sharing Decision (406/2009/EC); Lithuania National Energy Independence Strategy; NECP Lithuania 2021-2030285; The Strategy for the National Climate

Change Management Policy; Regional Economic Development Strategy 2030

279 National Energy Strategy. Official gazette “Valstybės Žinios”. No. 11-430; 2007. 280 Law of the Republic of Lithuania on energy. Official gazette “Valstybės Žinios”. No. 56-2224; 2002. 281 Resolution no. 1474 of the government of the Republic of Lithuania. Official gazette “Valstybės Žinios” 2001, No. 104-3713; No. 9-228; 2004. 282 Law of the Republic of Lithuania on heat sector. Official gazette “Valstybės Žinios” 2000 No. 66-1984; 2004 No. 107-3964; 2010 No. 65-3196. 283 Law of the Republic of Lithuania on Renewable Energy. Official gazette “Valstybės Žinios”. No. 62-2936; 2011. 284 Law on Biofuel, biofuels for transport and bio-oils of the Republic of Lithuania. Official Gazette Valstybes Zinios No VIII-1875, Vilnius, 2004. 285 https://ec.europa.eu/energy/sites/ener/files/documents/lt_final_necp_main_en.pdf

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ANNEX Table 1. Country Indicators: Lithuania286

286 Based on CAP, 2016 report for Lithuania, Available From https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/by_country/documents/cap-in-your-country-lt_en.pdf, [Accessed on 15 July, 2019] 287 P4: Restoring, preserving and enhancing ecosystems related to agriculture and forestry 288 P5: Promoting resource efficiency and supporting the shift towards a low carbon and climate resilient economy in agriculture. food and forestry sectors

EU-28 average Assessment

1. Population and Demographics unit unit Total Population 3 Million 18 Million Population living in rural area 42 % Almost half of the population lives in the rural areas. Young Farmers (<35 yrs) x % 5.9 % 8.8% of the farmers community are young farmers which is higher than EU average. 2. Land use indicators Total Area 65,000 km² km² Agricultural Area 60 % 60% of the land in Lithuania is used for agriculture and almost half of the population

lives in rural area, this makes argo-industry a very important industry for the economic development of Lithuania.

Forest Area 32 % Marginal Land (D2.1 MAGIC) 12308 km² 19% of the total area is the marginal land (MAGIC) which means a huge potential to

exploit these underutilised land resources. 3. Farming Sector Farm Size <5 ha 16.1 ha Polarised farm structure. 40% of the farms (200,000 farms are <5 ha). Industrial crops production 10.5 % 10.5% of the total agriculture production is industrial crops which can be increased

by utilising the marginal lands and agricultural land which is not used intensively for food production.

Organic Agriculture n/a 1000 ha Total employment supported by Agriculture n/a % 4.7 % Farm Structure Significant structural changes ongoing. Low competitiveness of small-medium size farms 4. RDPs Funding (2014-2020) Total Budget 2.1 € billion Agriculture Environment Climate (AEC) 140 € million 6.6% of the total fund is allocated for AEC: out of which 100 million (4.79%) for P4287

and 38 million (1.87%) for P5288 priority area. Area of Natural Constraints (ANC) 380 € million 18.06% of the total fund for ANC Organic Farming 182 € million 8.65% of the total fund is allocated for organic farms 5 NREAP 2005 share 15 % 17.52 % 2020 target 23 % 20 %

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Table 2. Strengths of selected non-food crops (NFCs)

Criteria Indicators Hemp Poplar Willow Triticale Rapeseed Camelina a) Productivity and ability to be grow at large scale

Geoclimatic conditions

Availability of Propagation materials

Availability of mechanisation

Crop Yield

b) Ability to produce feedstock for multiple markets

Recognised interest for multiple end-uses

c) i) Sustainability (socio-ecological)

Soil carbon level

GHG emission from production

Water abstraction/ Water use efficiency

Fertiliser requirements

Pesticide and herbicide retirements

Employment

c) ii) Profitability

Production Costs

Net profit margin for farmers

Current market price

Stren

gth

s TR

L>

7

; TR

L 5

-7

;TR

L 3

-5; T

RL

<3

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Table 3. Indicators and rationale of selection

Criteria Indicators

Defintion Rationale of Selection Units

a)

Pro

du

cti

vit

y a

nd

ab

ilit

y t

o b

e g

row

at

larg

e s

cale

Geoclimatic conditions Soil (clay content, texture, pH level, porosity)

and climatic conditions affect the crop production process.

Suitable soil and climatic conditions are important factors to consider when the land is being assessed for growing industrial crops.

Descriptive

Availability of Propagation materials

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

The availability of propagation materials (i.e., seeds, rhizomes, etc.) at commercial scale is one a key factor for a crop to be near-to-

practice. indicates readily available

propagation material, indicates that the

genetic material is generally available, but it is regulated by commercial agreements with breeders and seed companies linked to specific end-uses.

TRL 1-9

Availability of mechanisation

Technological readiness level (TRL) of the crop production is measured in a scale 1 to 9. TRL 1 is the lowest, indicating the earliest stage of development for a new technology, and TRL 9 is the highest.

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

This indicator will help farmers understand the level of innovation regarding crop cultivation and land management practices. This deliverable also follows the deliverable D1.2 TRL assessment method as follows. TRL >7 for crops which are already produced at the industrial scale and meet the commercial demands of the bio-based industries. TRL is between 5-7 when the crop production is the at the demo scale. TRL 3-5 is for crops which are moving from research scale to production development stage. Similarly, TRL<3 is for crops which are undergoing basic research,

TRL 1-9

Crop Yield Crop yield is measured per hectare of cultivated area.

The indicator is crucial for farmers and entrepreneurs to make decision on choice of crops for cultivation.

Tonne/ha/yr

b)

Ab

ilit

y t

o

pro

du

ce

feed

sto

ck f

or

mu

ltip

le m

ark

ets

Recognised interest for multiple end-uses

It identifies possible industrial end-uses of the feedstock. This indicator helps us understand the

possibility of market expansion and

ability of the crop to fulfill the demand of the bio-economy as it expands.

In global market (e.g. energy/fuels) there are emerging opportunities find possible end-uses of NFCs and consumer demand for these end-uses. Therefore, it is important to understand the potential of production and trade these feedstocks as the demand rises. Conversion and quality of the feedstock

Descriptive

c)

i) S

us

tain

ab

ilit

y (

so

cio

-eco

log

ical)

Soil carbon level (SOC)

It is the indicator which estimates the total organic carbon content in arable soils.

This indicator depends on the inherent quality of the soil but also depend on the type of plant/crop cover, land management practices/ cultivation practices, water holding and carbon exchange capacity of the crop, drainage status of the soil and weather conditions.

Total SOC is measured as Megatonnes (Mt); Mean SOC concentration in arable land: g/kg.

Greenhouse gas emissions from production

This indicator measures GHG emission from agriculture and agriculture soils.

This indicator depends on the N2 fertilizer used, crop choices, management practices and fossil fuel used for production

tonnes of CO2

equivalent

Water abstraction/ Water use efficiency

It refers to the volume of water applied to soils for irrigation purposes.

Water use efficiency (WUE) gives information on water abstraction to produce crops.

Fertiliser requirements

It refers to the nitrogen fertilizer used or nitrogen use efficiency (NUE)

This indicator depends on the N2 fertilizer used.

Kg- N/ha/yr or Kg-P/ha/yr

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Pesticide and herbicide requirements

Resistance is the ability of a plant variety to restrict the growth and development of a specified pathogen/pest or the damage they cause when compared to susceptible plant varieties under similar environmental conditions and pathogen/pest pressure.

This indicator helps in understanding the resistance capacity of a crop against incidence of pest and diseases. The higher tolerance of crops makes them suitable and better choices. It means less inputs required, which means production costs is lower and the soil and water quality is also not compromised by the surface run off or ground water leaching.

Descriptive

Employment Full-time- employment (FTE) per value chain This indicator helps us estimate the contribution of a value chain in the form of FTE.

Percentage or Number of FTE per tonne of biomass

c)

ii)

Pro

fita

bilit

y

Production Costs

Production costs is the total costs for farmers to produce the crop

The total costs of production of a crop can be calculated by sum of variable costs (costs of inputs, labour cost) as well as fixed costs (land costs, overhead costs like farm level taxes and permits, depreciation costs of capital owned by farm equipment and buildings)

Euro/tonne

Net profit margin for farmers

The gross margin for a crop can be calculated by deducting the variable costs from the gross farm income from a crop per cropping season or per year. In order to measure the net farm profit margin, the calculation should include the capital costs (land, buildings, machinery, irrigation equipment etc) and fixed costs (land, building, machinery depreciation, administration, taxes etc).

The net profit margin is a decisive tool for farmers in farm management, estimating the returns and profit from production of a particular crop. This figure can also help in assess the performance of the crop per season and help in identifying where the farm management can be improved or streamlined.

Euro per year (or per cropping season)

Current market price

The market price for the crop varies during a year or per crop season, it decreases as supply increases and vice versa.

This indicator helps farmer understand the market and the potential profit they can make from the crop production.

Euro/tonne

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D1.3 Strengths and opportunities of near-to-practice non-food crops (NFCs)

in Poland

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Deliverable Title: D1.3 Strengths and Opportunities of near to practice non-food crops (NFCs) in Poland Deliverable Lead: Imperial College London (ICL) Related Work package: WP1 Author(s): BIOWARMIA, ICL Communication level: PU Public PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) Grant Agreement Number: 773501 Programme: Horizon 2020 Start date of Project: November 2017 Duration: 40 months Project coordinator: CRES

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Selected near-to-practice NFCs in Poland Non Food Crops (NFCs) like linseed, hemp, camelina, specialty herbs of medicinal uses have been cultivated in Poland for many centuries, but they are still produced in small scale fields. The share of industrial (non-food) crop production in the period 2013-2015, was 7.8%289. Lignocellulosic crops like poplar, willow and miscanthus have been grown in Poland for bioenergy for around 15-20 years290, however other utilization pathways have been proposed recently including feed supplements and cosmetics with salicylates. Camelina and crambe could be cultivated for bioplastics,

lubricants, biodiesel and renewable jet fuel,

plasticizers, polyols, resins, composites, coatings, elastomers, and adhesives. Miscanthus, poplar, willow, camelina, crambe are selected as near to practice crops in PANACEA. In Poland all selected NFCs except crambe are grown commercially.

The cultivation area of short rotation coppices in Poland is estimated over 22,000 ha, and the dominant species are willow, poplar and birch. Willow, poplar and miscanthus cultivation area in Poland amounted to 8,000, 7,500 and less than 1,000 ha respectively [1]. The cultivation area of camelina and crambe is small and not included in agricultural statistics. Compared to the food crops, non-food ones can be cultivated with low inputs and on marginal lands. These features together with their chemical composition make them good candidate for bio industrial feedstock in Poland with little competition to traditional agricultural production. This report provides facts and figures for selected NFCs in Poland, assesses their strengths and provides an outlook of opportunities in policy and industry for their future market uptake.

Fig. 1.Cultivation area of short rotation coppices in Poland in 2005-2016; main species willow, poplar, birch (source: study based on MRiRW and ARMIR 2017)

289 Based on CAP, 2016 report for Poland, Available From https://ec.europa.eu/info/sites/info/files/food-farming-

fisheries/by_country/documents/cap-in-your-country-pl_en.pdf, [Accessed on 15 July, 2019] 290 PANACEA partners observation

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

22000

24000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ha

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STRENGTHS

The PANACEA consortium has selected these five crops -miscanthus, poplar, willow, crambe and camelina, as near-to-practice NFCs for Poland, based on their presence and suitability of cultivation as well as prospects for their utilization in the country. They have shown potential for sustainable, low input production with positive energy balance and could be used as feedstock for bioenergy and non-energy applications. In this report we have assessed the strengths of each crop based on the three criteria:

d) productivity and ability to be grown at large-scale using existing machinery

e) ability to produce feedstock for multiple markets

f) sustainability and profitability

A set of indicators from Common Agricultural Policy (CAP) and from the project deliverable D1.2 has been used for the assessment. The detailed definition of the indicators and the rationale for their selection can be found in the Annex Table 3. The rationale for choosing CAP related indicators is because non-food crops are or will be agricultural commodities and any planning, regulation and support will be developed under the framework of the Common Agricultural policy at EU or national level.

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Giant miscanthus

Giant miscanthus has been cultivated in Poland for more than 10-15 years. The total cultivation area was 2000 ha [2]. However, due to the lack of profitability of its production for energy purposes, many plantations were closed and currently around several hundred ha remain in cultivation. Miscanthus is typically used for heating in small scale and in local heating plants. Other potential uses include second generation ethanol production and construction materials. Yield: Biomass yields of giant miscanthus recorded in Poland range from 7 t/ha to 20 t/ha dry matter [3, 4].

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Miscanthus is geo-climatically suitable to grow on low-quality marginal or contaminated soils in Poland.

High content of cellulose and hemicellulose makes biomass a good feedstock for the chemical industry and biofuel production.

Low fertiliser and plant protection requirements. A small number of diseases and pests are found for this crop.

Harvesting and production can be mechanized as miscanthus can use the similar machinery to cereals.

Sustainability

Profitability

Field experiment carried out in 2004-2006 at two experimental stations of the Institute of Soil Science and Plant Cultivation, Puławy in Poland, showed that giant miscanthus net carbon sequestration for average biomass yield between 15 and 17 t/ha/year, was 0.64 t/ha/year while average for all crops in Poland was 0.07 t/ha/year [5].

Greenhouse gas emissions from miscanthus cultivation in Poland were according to various authors from -0.7 t/ha CO2 eq. (unpublished results) up to 4 t/ha CO2 eq. depending on methodology [7]. Borzecka-Walker, Faber [7] found that energy consumption in the cultivation of miscanthus was on similar level to rapeseed (14-16 GJ/ha).

Profit from giant can be in the range of 503-880 PLN/ha/year, with a biomass price of 223-288 PLN/t. These values are possible to achieve if biomass yields are above 15 t/ha dry matter.

The energy yield from 1 ha of giant miscanthus, grown in Poland is high, which is 286 GJ [6].

Field trials with giant miscanthus in in Poland Photo credit: Michał Krzyżaniak

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Poplar Poplar is grown in Poland in SRC or SRF systems. Poplar plantation lifespan is estimated to be from 15 to 20 years. According to Bioenergy Europe [1], the area of poplar cultivation in Poland is about 3,200 ha. Considering the poplar plantations established by IP Kwidzyn, the total production area amount to approx. 7,500 ha. Yields: Average dry yield of poplar biomass is about 8 t/ha/year. In good conditions it may exceed 10 t/ha/year dry matter [10].

Sustainability

Profitability

In one LCA study on poplar grown on poor mineral soil fertilized with different fertilizers, negative greenhouse gases (GHG) emission was observed in poplar cultivation with lignin (-37.0 kg/t d.m. CO2 eq.) and lignin and mineral fertilisers (-20.6 kg/t d.m. CO2 eq.). Moreover, this study indicated that lignin can be recommended as the optimum method of fertilisation. Using only mineral fertilizers is slightly less beneficial for the environment. Variant with lignin and mineral fertilisation is not recommended due to the high impact on freshwater eutrophication, terrestrial acidification, human and freshwater ecotoxicity and depletion of fossil resources [9].

Revenue for poplar cultivated for energy can be in wide range from 24 to 194 €/ha/year. The highest revenue (194 €/ha/year) was achieved when the crop was fertilised with mineral fertiliser and amended with lignin. The change in the biomass price had a huge effect on the revenue [11]. The energy gain for poplar chips production in four year harvest rotation may range from 355 to 674 GJ/ha. The largest energy gain was obtained when soil was enriched with lignin and mineral fertilisation [12]. The energy efficiency ratio for poplar chips production ranged from 19.7 to 25.9 [12].

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Poplar is a common species in Poland, naturally occurs mainly in the riverside areas, as an element of riparian, willow-poplar forests. The soil pH for poplar should be in the range of 6.0-7.5. The optimal groundwater level is 0.5-2 m [8].

Poplar wood chips are often used for both heat and CHP. Poplar biomass can also be used for pellets or briquettes production for district heating and for domestic boilers.

Poplar propagation materials are easily available. To establish poplar in SRF system for cellulose production, poles with a length of 1.3 m to 2.5 m are usually used [8].

Poplar has complex structure which can be broken down with biochemical and chemical processes to produce cellulose, hemicelluloses and lignin, which can be used to make bioethanol, paper and other various bioproducts.

Poplar harvesting is mechanized and can be harvested in the form of chips or whole shoots [8].

Poplar cultivated in SRC in Poland Photo credit: Mariusz Stolarski

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Willow

Willow is grown in Poland in SRC or Eko-Salix systems. This lignocellulosic crop plantation lifespan is estimated to be from 20 to 25 years.

According to Bioenergy Europe [1], the area of willow cultivation in Poland is about. 7,700 ha. Willow is most often grown in the SRC system in three-year rotation. Depending on the growing conditions and biomass yields, harvesting is also possible in two-year or four-year rotations. Yield: The average willow biomass yield according to Polish studies is 8.5 t/ha/year d.m. The mean productivity on small-scale experimental fields (11.4 t/ha/year d.m.) is much higher than on large-scale fields (5.7 t/ha/year d.m.). When the optimum yield-generating agents are applied (such as cultivar or clone, fertilisation rate or planting density) higher yields are achieved (by 48% and 72%) in small and large-scale experiments, respectively [15].

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Willow is a species naturally found throughout Poland mainly in the riverside areas, as an element of alluvial, willow and poplar forests. Willow needs a minimum of 500 mm of rainfall for lush growth and development [8].

Currently, willow biomass is most often used for energy purposes for the production of heat energy or also heat and electricity in cogeneration in the form of wood chips.

Willow planting material for growing in the SRC system and for harvesting in 2-4 harvest cycles for energy are 20 cm long cuttings. For the crop establishing in the Eco-Salix system, usually long poles (2.0-2.5 m in length) are used [8, 13].

Willow biomass can also be used to for pellets or briquettes production not only for district heating but also for domestic purposes.

Willow harvesting begins after the plant growth stops, when the leaves fall off the shoots (from mid-November to the end of March). Shoots should be cut at a height of about 10 cm above the soil surface. Plants can be harvested in the form of chips or whole shoots [10,8].

In perspective, willow biomass can be used to produce second generation bioethanol or other chemicals and bioproducts.

Willow, Poland Photo credit: Mariusz Stolarski

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Sustainability

Profitability

In study of Krzyżaniak, Stolarski [14] shows that GHG emission from production and transport of willow chips, with carbon sequestration, was 35.97 kg/t CO2 eq. d.m, which gives only 2.12 kg CO2 eq. per 1 GJ of energy. Greenhouse gas emission from only burning of natural gas (excluding its extraction, transport, etc.), which is regarded as a clean fuel, is 23 times higher than that from willow growing system analysed in this study.

In the study of Stolarski Willow biomass yield may vary from one cultivar to another and thus, cost of producing chips may range from 89.1 €/t d.m. to 57.1 €/t d.m. The highest revenue (537 €/ha/year) was achieved in the plantation with the highest-yielding cultivar UWM 006 [16]. In another study the revenue was in wide range: 73-292 €/ha/year. The best revenue (292 €/ha/year) was achieved when willow was fertilised with lignin. The change in the biomass price had a huge effect on the revenue [11].

The energy gain for production of willow chips in four year harvest cycle range from 336 to 670 GJ/ha. The largest energy gain was obtained in the production of willow when soil was enriched with lignin, mycorrhiza and mineral fertilisation [12].

The energy efficiency ratio for willow chips production range from 21.6 to 28.9 [12].

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Camelina Camelina was cultivated in Europe already in the Bronze Age. In Poland, the first archaeological evidence of camelina cultivation was found in a human settlement dating back 2500 years. Camelina was widely researched in the 1950s in an attempt to revive the Polish agriculture after World War II. Camelina and flax were classified as oilseed crops with a high oil content which are suitable to produce industrial oil. Camelina cultivation area is small and not included in national statistics. Usually its cultivation takes place on small and organic farms. It can be estimated that the crop is cultivated on the area no higher than 1-2 thousand hectares.

Yields: The average seed yield for winter and spring camelina varieties in field trials range from 1 to 2.5 t/ha depending on variety and agricultural factors and weather conditions.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Camelina is geo-climatically suitable to Polish conditions. It is resistant to drought, low temperatures and most pests. Winter and spring varieties are available in the market, making camelina suitable for different weather and climate conditions. Camelina is a low nutrient demanding crop (e.g. up to 100 kg/ha N). It delivers reasonable yields on lower quality soils that are also suitable for growing less demanding cereals, e.g., rye and oats.

High content of gondoic fatty acid (approx. 12-15% dry matter) makes this crop interesting for oleochemical industry. Camelina seeds are rich in protein. Its composition allows the use of camelina cake or meal for feed purposes e.g. for poultry or fish industries. Camelina oil is edible and contains essential fatty acids. Therefore, it is easier to encourage farmers to grow it; there is a wide market for the production of healthy oils. Camelina contains omega-3 fatty acids that play an important role in the prevention of many degenerative and inflammatory conditions.

Sustainability

Profitability

The emission of greenhouse gases per hectare from the cultivation of camelina was 1,732 and 1,772 kg/ha CO2 eq. in reduced and traditional tillage land management systems, respectively [17]. Camelina shows good yielding potential even with reduced tillage management, which resulted in a

The average production cost of camelina seeds from three years of study were 456 €/t whereas the average production costs of a by-product (i.e. straw) were about 2-fold lower. The average revenue for camelina seed production was 312 €/ha; for total biomass this value amounted to 433 €/ha [18].

Spring camelina in commercial cultivation Photo credit: Michał Krzyżaniak

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drop in diesel consumption and, in consequence, low amount of emitted GHG [17]. The average energy efficiency ratio for production of camelina seeds in large scale was 2.00 and energy efficiency ratio for the production of total biomass (seeds and straw) of camelina was 4.74 [18].

The production cost regarding to the oil content in camelina seeds was on average 1,235 €/t [18].

Studies showed that NO3 leaching from camelina cultivation is negative. The application of the traditional tillage land management resulted in nitrate deficiency, -52.2 kg/ha. Moreover, the application of the reduced tillage led to even higher deficiencies: -77.3 kg/ha NO3 [17].

The average energy gain from production of camelina in a Polish study was 56.3 GJ/ha. However it was lower compared with white mustard and spring rape, where this value was over 2-5 times higher [18, 19].

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Crambe

Crambe is not cultivated commercially in Poland. It has been tested in small and large field trials for several years and showed good yield potential in climatic conditions of Poland. Cultivation protocol is well established. Yields: Results of small-scale trials showed that crambe seed yield potential is between 1.2-3.1 t/ha. However, in large scale this value was between 1.2-1.8 t/ha [20-22].

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Crambe is a low input crop that can be cultivated on lower quality or marginal soils, which in Poland constitutes approx. 2 million hectares.

Crambe seeds have oil content from 31% to 37%, with erucic acid >54% making it good candidate for oleochemical industry. Crambe do not cross-pollinate with low-erucic acid rapeseed.

The crop fits into typical crop rotation plans in Poland, especially on weaker and marginal soils; due to the fact that this is non-edible crop it can be cultivated on contaminated land as well.

Crambe oil may be used in small “green and organic” beauty industry directly or as a cosmetic ingredient. Therefore, the crop could be cultivated not only on a large scale, for industrial purposes (lubricants, biofuels), but it could also engage small and organic farmers, for whom such production would give an additional profit.

Crambe is good break crop for winter cereals and can break the cycle of typical diseases affecting cereal crops such as Fusarium spp. Crambe cultivation and harvesting can be mechanised using the already available agricultural equipment.

Crambe oil can be used in the production of biodiesel, lubricants, rubber additives, nylon, base for paints and coatings, high temperature hydraulic fluids, waxes and other products.

Sustainability

Profitability

Studies showed that NO3 leaching from crambe cultivation is negative and range from -49.26 to -95.83 kg/ha for crambe cultivated in traditional and reduced tillage land management systems, respectively [17]. In Polish studies the emission of greenhouse gases from the cultivation of crambe per 1 hectare was 1,705-1,839 kg/ha CO2 eq. depending on

The average production cost of crambe seeds in three years of study was 465 €/t whereas the average production costs of a byproduct (i.e. straw) were about 2-fold lower. The average revenue for crambe seed production was 200 €/ha; for total biomass this value amounted to 318 €/ha [18].

Crambe, North east of Poland Photo credit: Michał Krzyżaniak

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production technology and land management practice [17, 23]. Low tillage management results in low GHG emission due to low diesel consumption [17].

The average production cost regarding to the oil content in crambe seeds were on average 1,384 €/t [18].

The average energy efficiency ratio for production of crambe seeds in large scale was 1.88 and energy efficiency ratio for the production of total biomass (seeds and straw) was 4.54 [18].

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OPPORTUNITIES

Current Markets & Industry of the selected crops Polish bioeconomy volume in 2014 was 82 billion Euro, which is 10% of global production volume of the Polish economy. Bioeconomy sector in Poland had 3 million employees in 2014.291 Production of energy from biomass is the primary focus thus technologies for high value products are still in experimental stages. In 2014, 11% of the total energy production was from renewable sources.292 There is an increasing trend of the use of biomass for energy (electricity) production in Poland (see figure below). Biotechnology and bioeconomy issues are not emphasised in a single strategy or document but instead incorporated in the Smart Specialisation Strategy. Agriculture, forest and agro-food processing industry are the three important sectors which play important role in the Polish national bioeconomy strategy and are also included in their Smart Specialisation Strategy.293 In 2014, the internal expenses on biotechnology R&D amounted to PLN 478 million. However, there is a huge gap the R&D sector in Poland. The basic research activities are relatively higher compared with the actual implementation or application of innovations in production.294 Besides the development in biobased industry and biobased market, there are national level research projects like BioEcon295 which aims to develop bioeconomy in Poland. BioEcon is a research project in collaboration of Institute of Soil Science and Plant Cultivation296 and Department of Bioeconomy and System Analysis. Research project like BioEcon can support the uptake of near-to-practice NFCs in the Polish bioeconomy.

Figure: Share of RES- E 2009- 2015 in Poland (%). Source: Energy Regulatory Office 297

291 Ludwik, W., & Wicka, A. (2016). „Bio-economy sector in Poland and its importance in the economy”. Economic Science for Rural Development, 41, 219-228. 292 Website of Energy Regulatory Office in Poland, https://www.ure.gov.pl/; 2016 [Accessed 02 January 2017] as cited in Woźniak, E., & Twardowski, T. (2018). The bioeconomy in Poland within the context of the European Union. New biotechnology, 40, 96-102. 293 The Strategy for Innovation and Economic Efficiency Dynamic Poland (SIEE); 2013. Available in Polish from http://isap.sejm.gov.pl/DetailsServlet?id=WMP20130000073. 294 Woźniak, E., & Twardowski, T. (2018). The bioeconomy in Poland within the context of the European Union. New biotechnology, 40, 96-102. 295 BioEcon, Available From http://bioecon.iung.pulawy.pl/en/ 296 http://www.iung.pulawy.pl/eng/ 297 Website of Energy Regulatory Office in Poland, https://www.ure.gov.pl/; 2016 [Accessed 02 January 2017] as cited in Woźniak, E., & Twardowski, T. (2018). The bioeconomy in Poland within the context of the European Union. New biotechnology, 40, 96-102.

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Lignocellulosic crops (willow, poplar and miscanthus) Willow, poplar and giant miscanthus fit well into the strategy of the Bioeconomy in Poland. There is an opportunity to grow them, especially because these crops can be cultivated on underutilised land, which in Poland consists of about 1.6 million hectares. Therefore, these NFC cultivation gives the opportunity for additional income in agriculture and biomass logistics sector. Compared with annual plants, these lignocellulosic species are currently cultivated on a small scale. Yet, obtained lignocellulosic biomass can be of significant value to energy, biofuel and paper industries. Poplar and willow biomass can be alternative and supplemental source to wood from forests as well. Miscanthus is a suitable feedstock for energy industry, especially heat production in small and medium size heating plants. Its biomass may be alternative and supplemental source to cereal straw.

Moreover, more attention has recently been devoted to the non-energy use of lignocellulosic biomass obtained from short rotation coppice (e.g. willow, poplar) herbaceous crops ( e.g. cup plant, Virginia mallow) and grasses (e.g. miscanthus species). For example, in national research project BioMagic298 financed by the National (Polish) Center for Research and Development (NCBiR), cascading use of lignocellulosic biomass for pharmaceutical, veterinary, food and feed are examined, and only post-production residues are used as feedstock for energy purposes but in advanced technologies such as 2nd generation biofuels. There are projects like SustainFARM299 which is focusing on agroforestry by combining production of SRC with arable cropping. The projects main aim is to add value to on-farm woody

resource and improve farmers awareness about resilience of agroforestry systems and efficiency. Oil crops (camelina and crambe) Camelina and crambe cultivated in Poland can be an alternative to rapeseed, especially on lower quality and marginal soils. Currently rapeseed is the main oil crop cultivated in the country and the main source of transport biofuels. Camelina and crambe can be cultivated on a large scale if seed was contracted by biofuel or biobased industry. These two species could be competitive to rapeseed cultivated on weak soils. There is an opportunity to grow camelina and crambe, especially due to the fact that the crop matches typical crop rotation schemes applied by farmers. In addition crambe, as typical non-edible crop, can be cultivated on contaminated and underutilised land, Moreover, crambe oil is used in small “green and organic” beauty industry directly or as a cosmetic ingredient. Therefore, the crop could be cultivated not only on a large scale, for industrial purposes (lubricants, biofuels), but it could also engage small and organic farmers, for whom such production would give an additional profit. Camelina is currently cultivated on a small scale for food purposes (oil with essential fatty acids). Camelina seed cake and meal are valuable feed for fish and poultry industry. Thus there is opportunity to use these byproducts and widen the camelina market.

298 BioMagic (BIOproducts from lignocellulosic biomass derived from MArginal land to fill the Gap In Current national bioeconomy) http://biogospodarka.iung.pl/en/projects/ 299 SustainFarm http://www.sustainfarm.eu/en/

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It can be expected that in the future, with changing climatic conditions in Poland (increase in average air temperatures), camelina will become an attractive species due to the low water and fertilizing requirements, compared to other species of annual oil crops. In addition, this species does not require intensive protection against pests or diseases, which is also very important and beneficial from the point of view of sustainable bioproduction.

Supporting Policies Poland does not have separate bioeconomy strategy the important bioeconomy issues are addressed within different sectors The bioeconomy references are included in the National Development Strategy, which emphasizes the need to develop a competitive and innovative economy and level out developmental differences in regions. Bioeconomy is addressed in all of these strategies - Strategy for innovation and efficiency of the economy and promoting the increase in economic productivity, rational management of resources, increasing the innovativeness of the economy, Strategy for sustainable rural development, and Strategy for energy security and the environment, which promotes the increase in the efficiency of the use of natural resources and raw materials [24].300 The Smart Specialisation Strategy also focuses on five key axes and addresses related bioeconomy issues: healthy society, agro-food, forestry-timber and environmental bioeconomy, sustainable energy, natural resources and waste management, innovative technologies and industrial processes (in a horizontal approach). The agriculture, food and feed sector are the important areas of bioeconomy in Poland. The bioeconomy sectors has almost 3 million employees in 2014 and the share of agriculture in generating gross value added was 41%.301 More than 80% of the employees in the bioeconomy worked in agriculture in Poland. 302 There are supporting policies in place to promote the agricultural biobased values chain. The direct payment system, which was established by Regulation (EU) No 1307/2013 of the European Parliament and of the Council and running successfully in its fourth year. The applicable national legal act is, inter alia, The Act of 5 February 2015 on payments under direct support systems (Dz. U. z 2018 r. poz. 1312). This system includes 20 different types of payments. The total financial support allocated to Polish farmers in 2018 was PLN 14.8 billion (of which 123 million national funds). As part of direct support systems, the following types of payments were used in 2018:

• single area payment, • payment for agricultural practices beneficial for the climate and the environment (payment for greening), • payment for young farmers, • additional payment (redistributive), • production-related payments (for cattle, cows, sheep, goats, sugar beet, grain legumes, strawberries, starch potatoes, tomatoes, hops, flax, fodder and hemp), • transitional national support (decoupled tobacco payment), • a system for small farms.

Production Conversion Distribution End-use

CAP- Direct Payments National Air protection Programme

300 Gołębiewski, J. (2015). Bioeconomy in Poland: Condition and potential for development of the biomass market (No. 718-2016-48736). 301 Ludwik, W., & Wicka, A. (2016). „Bio-economy sector in poland and its importance in the economy”. Economic Science for Rural Development, 41, 219-228. 302 Ludwik, W., & Wicka, A. (2016). „Bio-economy sector in poland and its importance in the economy”. Economic Science for Rural Development, 41, 219-228.

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CAP- Rural Development Protection of agricultural

and forest land BOCIAN, POlSEFF2, PROSUMER Agricultural System Act Capacity Market Act 2017

Forest act Excise Duty Act

Water Law

Act of 25 August 2006 on Biocomponents and

Liquid Biofuels

Renewable Energy Act; Renewable Energy 2030 Framework target National Fund for Environmental Protection

and Water Management

Low carbon transport fund (Construction of charging/refuelling infrastructure and purchase of Evs)

Act on Thermo-Modernisation and Refurbishments

Infrastructure and Environment

Operations Programme and the

Regional Operations Programme

Renewable Energy Act Environment Protection Law (EPL)

National emissions target under the EU Effort Sharing Decision (406/2009/EC) Poland Poland National Energy and Climate Plan 2021-2030; National Energy Efficiency Plan

Energy Policy for Poland 2040; Transport Development Strategy 2020 (outlook to 2030); NECP Poland 2021-2030 303

National Development Strategy; Strategy for Innovation and Efficiency; Strategy for Sustainable Rural Development, Strategy for Energy Security

The “Hard” legal acts connected to the NFC and bioproducts apply to bioenergy and biofuels production. Therefore, the most important act is Renewable Energy Sources (RES) Act of 20 February 2015, with the latest changes on 7 June 2018, applies to the use of biomass for electricity generation. The RES Act maintains certificates of origin system for existing installations of renewable energy sources that started generating electricity before 1 July 2016 (Existing Installations), albeit with some changes in relation to the current rules. For new RES installations, i.e. installations that started generating electricity on or after 1 July 2016 (New Installations), the RES Act introduced an auction system. Biofuels production in Poland is regulated by Act on biocomponents and liquid biofuels (Dz. U. poz. 1155 z późn. Zm.). This regulation adapts Polish regulations to the requirements of Directive 2015/1513. The most important obligations arising from this directive include limiting the possibility of using cereal and other high starch plants, sugar and oilseed crops and plants grown primarily for energy purposes for the production of biocomponents, increasing the use of so-called advanced biofuels, increasing to 60 percent the required level of reduction of greenhouse gas emissions for new installations producing biocomponents and the introduction from 1 January 2018, a requirement of 50 percent reduction of emissions for operating generating installations.

303 https://ec.europa.eu/energy/sites/ener/files/documents/pl_final_necp_summary_en.pdf

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ANNEX Table 1. Country Indicators: Poland304

304 Based on CAP, 2016 report for Poland, Available From https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/by_country/documents/cap-in-your-country-pl_en.pdf, [Accessed on 15 July,

2019]

Poland EU-28 average Assessment

1. Population and Demographics

Total Population 37.98 Million

Million In Poland 10.2% of all farmers are young farmers. Almost 45% of all farmers have agricultural education

Population living in rural area 35 %

Young Farmers (<35 yrs) 10.2 % %

2. Land use indicators

Total Area 312696 km² km²

Agricultural Area 46.4 %

Forest Area 30.2 %

Marginal Land (D2.1 MAGIC) km²

3. Farming Sector

Farm Size Average 10.31 16.1 ha Average polish farm is smaller than EU average. Only 2.4% of farms are farm with size >50 ha. Large scale farms are located mostly in northern voivodships.

Industrial crops production 7.8 %

Organic Agriculture 495 1000 ha Total (fully organic and in conversion) organic farming land in 2017.

Total employment supported by Agriculture 9.6 % 4.7 % 2 times higher contribution to employment compared to EU average.

Farm Structure

4. RDPs Funding (2014-2020)

Total Budget 13.6 € billion

Priority P2 4764 (37%) € million

Priority P3 1517 (12%) € million

Priority P4 4161 (32%) € million

Priority P5 301 (2%) € million

Priority P6 2226 (17%) € million

Table 2. Strengths of selected five NFCs

Criteria Indicators Miscanthus Poplar Willow Camelina Crambe

a) Productivity and ability to be grow at large scale

Ag

ron

om

ic

Req

uir

em

en

ts

Geoclimatic conditions

Availability of Propagation materials

Availability of mechanisation

Crop Yield

b) Ability to produce feedstock for multiple markets

Recognised interest for multiple end-uses

c) i) Sustainability (socio-ecological)

En

vir

on

men

tal

Imp

ac

ts

Soil carbon level

GHG emissions from Ag.

Ecological impacts

Inputs requirements

Pest and Diseases

So

c

ial

Imp

ac

t

s

Employment and jobs

c) ii) Profitability

Ec

on

om

ic

Imp

ac

ts

Net profit margin for farmers

Production costs/

Market price

; TRL 5-7 ;TRL 3-5 ; TRL <3

Stren

gth

s TR

L>

7

; TR

L 5

-7

;TR

L 3

-5; T

RL

<3

Table 3. Indicators and rationale of selection

Criteria Indicators Defintion Rationale of Selection Units

a)

Pro

ductivity a

nd

ab

ility

to

be g

row

at la

rge

sca

le

Geoclimatic conditions

Soil (clay content, texture, pH level, porosity) and climatic conditions affect the crop production process.

Suitable soil and climatic conditions are important factors to consider when the land is being assessed for growing industrial crops.

Descriptive

Availability of Propagation materials

TRL >7 (corresponding to )

which is the maximum achievable value for any crop to TRL <3 (corresponding

to ) which identifies a very limited

performance for the availability of mechanization system.

The availability of propagation materials (i.e., seeds, rhizomes, etc.) at commercial scale is one a key factor for a crop to be

near-to-practice. indicates readily

available propagation material,

indicates that the genetic material is generally available, but it is regulated by commercial agreements with breeders and seed companies linked to specific end-uses.

TRL 1-9

Availability of mechanisation

Technological readiness level (TRL) of the crop production is measured in a scale 1 to 9. TRL 1 is the lowest, indicating the earliest stage of development for a new technology, and TRL 9 is the highest.

TRL >7 (corresponding to )

which is the maximum achievable value for any crop to TRL <3 (corresponding

to ) which identifies a very limited

performance for the availability of mechanization system.

This indicator will help farmers understand the level of innovation regarding crop cultivation and land management practices. This deliverable also follows the deliverable D1.2 TRL assessment method as follows. TRL >7 for crops which are already produced at the industrial scale and meet the commercial demands of the bio-based industries. TRL is between 5-7 when the crop production is the at the demo scale. TRL 3-5 is for crops which are moving from research scale to production development stage. Similarly, TRL<3 is for crops which are undergoing basic research,

TRL 1-9

Crop Yield Crop yield is measured per hectare of cultivated area.

The indicator is crucial for farmers and entrepreneurs to make decision on choice of crops for cultivation.

Tonne/ha/yr

b)

Ab

ility

to

pro

duce

fee

dsto

ck fo

r

mu

ltip

le m

ark

ets

Recognised interest for multiple end-uses

It identifies possible industrial end-uses of the feedstock. This indicator helps us understand the possibility of market expansion and ability of the crop to fulfill the demand of the bio-economy as it expands.

In global market (e.g. energy/fuels) there are emerging opportunities find possible end-uses of NFCs and consumer demand for these end-uses. Therefore, it is important to understand the potential of production and trade these feedstocks as the demand rises. Conversion and quality of the feedstock

Descriptive

c)

i) S

usta

inab

ility

(socio

-

eco

log

ica

l)

Soil carbon level (SOC)

It is the indicator which estimates the total organic carbon content in arable soils.

This indicator depends on the inherent quality of the soil but also depend on the type of plant/crop cover, land management practices/ cultivation practices, water holding and carbon exchange capacity of the crop, drainage status of the soil and weather conditions.

Total SOC is measured as Megatonnes (Mt); Mean SOC concentration in arable land: g/kg.

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Greenhouse has emissions from production

This indicator measures GHG emission from agriculture and agriculture soils.

This indicator depends on the N2 fertilizer used, crop choices, management practices and fossil fuel used for production

tonnes of CO2

equivalent

Water abstraction/ Water use efficiency

It refers to the volume of water applied to soils for irrigation purposes.

Water use efficiency (WUE) gives information on water abstraction to produce crops.

Fertiliser requirements

It refers to the nitrogen fertilizer used or nitrogen use efficiency (NUE)

This indicator depends on the N2 fertilizer used.

Kg- N/ha/yr or Kg-P/ha/yr

Pesticide and herbicide requirements

Resistance is the ability of a plant variety to restrict the growth and development of a specified pathogen/pest or the damage they cause when compared to susceptible plant varieties under similar environmental conditions and pathogen/pest pressure.

This indicator helps in understanding the resistance capacity of a crop against incidence of pest and diseases. The higher tolerance of crops makes them suitable and better choices. It means less inputs required, which means production costs is lower and the soil and water quality is also not compromised by the surface run off or ground water leaching.

Descriptive

Employment

Full-time- employment (FTE) per value chian

This indicator helps us estimate the contribution of a value chain in the form of FTE.

Percentage or Number of FTE per tonne of biomass

c)

ii) P

rofita

bili

ty

Production Costs

Production costs is the total costs for farmers to produce the crop

The total costs of production of a crop can be calculated by sum of variable costs (costs of inputs, labour cost) as well as fixed costs (land costs, overhead costs like farm level taxes and permits, depreciation costs of capital owned by farm equipment and buildings)

Euro/tonne

Net profit margin for farmers

The gross margin for a crop can be calculated by deducting the variable costs from the gross farm income from a crop per cropping season or per year. In order to measure the net farm profit margin, the calculation should include the capital costs (land, buildings, machinery, irrigation equipment ets) and fixed costs (land, building, machinery depreciation, administration, taxes etc).

The net profit margin is a decisive tool for farmers in farm management, estimating the returns and profit from production of a particular crop. This figure can also help in assess the performance of the crop per season and help in identifying where the farm management can be improved or streamlined.

Euro per year (or per cropping season)

Current market price

The market price for the crop varies during a year or per crop season, it decreases as supply increases and vice versa.

This indicator helps farmer understand the market and the potential profit they can make from the crop production.

Euro/tonne

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REFERENCES 1. Bioenergy Europe, Bioenergy Europe Statistical Report. 2018,

Brussels: Bioenergy Europe. 2. Gajewski, R., Potencjał rynkowy produkcji BIOB z

przeznaczeniem na cele energetyczne, in Nowoczesne technologie pozyskiwania i energetycznego wykorzystania biomasy, G.T. Bocian P., Rakowski J., Editor. 2010, Instytut Energetyki: Warszawa. p. 414-418.

3. Stolarski, M.J., et al., Short rotation coppices, grasses and other herbaceous crops: Biomass properties versus 26 genotypes and harvest time. Industrial Crops and Products, 2018. 119: p. 22-32.

4. Matyka, M. and J. Kuś, Plonowanie i cechy biometryczne wybranych genotypów miskanta. Problemy Inżynierii Rolniczej, 2011. 19: p. 157-163.

5. Borzecka-Walker, M., et al., Soil Carbon Sequestration Under Bioenergy Crops in Poland, in Principles, Application and Assessment in Soil Science, B.E. Ozkaraova Gungor, Editor. 2011, InTech: Rijeka. p. 151-166.

6. Tworkowski, J., et al., Skład chemiczny i wartość energetyczna biomasy wierzby krzewiastej, ślazowca pensylwańskiego i miskanta olbrzymiego. Zeszyty Problemowe Postępów Nauk Rolniczych, 2010(547).

7. Borzecka-Walker, M., et al., Life cycle assessment (LCA) of crops for energy production. Journal of Food Agriculture & Environment, 2011. 9(3-4): p. 698-700.

8. Szczukowski, S., et al., Wieloletnie rośliny energetyczne. 2012, Warsaw: Multico. 156.

9. Krzyżaniak, M., M.J. Stolarski, and K. Warmiński, Life cycle assessment of poplar production: Environmental impact of different soil enrichment methods. Journal of Cleaner Production, 2019. 206: p. 785-796.

10. Stolarski, M., et al., Effect of Increased Soil Fertility on the Yield and Energy Value of Short-Rotation Woody Crops. BioEnergy Research, 2015. 8(3): p. 1136-1147.

11. Stolarski, M.J., et al., Economic efficiency of willow, poplar and black locust production using different soil amendments. Biomass and Bioenergy, 2017. 106: p. 74-82.

12. Stolarski, M.J., et al., Analysis of the energy efficiency of short rotation woody crops biomass as affected by different methods of soil enrichment. Energy, 2016. 113: p. 748-761.

13. Stolarski, M.J., et al., Willow biomass production under conditions of low-input agriculture on marginal soils. Forest Ecology and Management, 2011. 262(8): p. 1558-1566.

14. Krzyżaniak, M., et al., Life Cycle Assessment of New Willow Cultivars Grown as Feedstock for Integrated Biorefineries. BioEnergy Research, 2016. 9(1): p. 224-238.

15. Stolarski, M.J., et al., Willow productivity from small- and large-scale experimental plantations in Poland from 2000 to 2017.

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Renewable and Sustainable Energy Reviews, 2019. 101: p. 461-475.

16. Stolarski, M.J., et al., Economic comparison of growing different willow cultivars. Biomass and Bioenergy, 2015. 81: p. 210-215.

17. Krzyżaniak, M. and M.J. Stolarski, Life cycle assessment of camelina and crambe production for biorefinery and energy purposes. Journal of Cleaner Production, 2019. 237: p. 117755.

18. Stolarski, M.J., et al., Energy and economic efficiency of camelina and crambe biomass production on a large-scale farm in north-eastern Poland. Energy, 2018. 150: p. 770-780.

19. Jankowski, K.J., W.S. Budzyński, and Ł. Kijewski, An analysis of energy efficiency in the production of oilseed crops of the family Brassicaceae in Poland. Energy, 2015. 81: p. 674-681.

20. Kulig, B. and E. Pisulewska, Plon i skład chemiczny owocków genotypów katranu abisyńskiego (Crambe abyssinica Hochst.) w zależności od sezonu wegetacyjnego. Rośliny Oleiste, 2000. 21: p. 631-639.

21. Stolarski, M.J., et al., Energy and economic efficiency of camelina and crambe biomass production on a large-scale farm in north-eastern Poland. Energy, 2018. 150: p. 770-780.

22. Stolarski, M.J., et al., Camelina and crambe production – Energy efficiency indices depending on nitrogen fertilizer application. Industrial Crops and Products, 2019. 137: p. 386-395.

23. Krzyzaniak, M. Life cycle assessment of non-edible oil crops (Crambe abyssinica) production. in Bioeconomy in Agriculture. 2016. Pulawy, Poland.

24. Grzyb, A., Contemporary problems of bioeconomy in the light of experience of selected European Union countries, in Faculty of Economy. 2018, Uniwersytet Ekonomiczny w Poznaniu: Poznań. p. 293.

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D1.3 Strengths and opportunities of near-to-practice non-food crops (NFCs)

in Portugal

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D1.3 Strength and opportunities of near-to-practice nonfood crops (NFCs)

126

Deliverable Title: D1.3 Strengths and Opportunities of near to practice non-food crops (NFCs) in Portugal. Deliverable Lead: Imperial College London (ICL) Related Work package: WP1 Author(s): FCT-UNL, ICL Communication level: PU Public PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) Grant Agreement Number: 773501 Programme: Horizon 2020 Start date of Project: November 2017 Duration: 40 months Project coordinator: CRES

Selected near-to-practice NFCs in Portugal Non Food Crops (NFCs) have been cultivated at experimental, demonstration and commercial level

in Portugal for 50 years305. Eucalypt was in the

past cultivated mainly for the paper and pulp industry but in the last 30 years it is also cultivated for bioenergy. The share of industrial (non-food) crop production in the period 2013-2015, was

0.5%306.

Cardoon, eucalypt, lupin, sunflower, peppermint, rosemary are the six crops selected as near-to-practice NFCs for Portugal in PANACEA based on their presence in the Portuguese agriculture. Cardoon is currently cultivated to extract bioactive compounds used in the production of cheese and is also being studied for medicinal applications. The use of the enzymes from the flowers for cheese production is an artisanal process. Cardoon based value chains for medicinal applications are still in experimental and pilot stages. Eucalypt is widely cultivated and used in paper and pulp industries in Portugal. However, there are new processes being developed which are near-to-practice to make eucalypt biobased value chains more sustainable. These processes focus on valorizing the residues to produce co-products.

Sunflower is used as a food crop but can be also be used to produce biodiesel. Current efforts focus on its production in marginal soils and also on the development of more sustainable processes. Lupin is used as food crop, but studies focus also on its medicinal applications through the extraction of bioactive compounds. However, most of the experimental and demonstration scale development needs additional support for industrial scale production and conversion. Peppermint and rosemary are mainly used for food application while there are studies for use of their bioactive compounds for cosmetic applications. Peppermint and rosemary based value chains for cosmetic applications are still in experimental and pilot stages. The six crops selected in PANACEA have potential for sustainable production, have been successfully implemented at pilot or demonstration scales and there isrecognized interest from bio-based industries to use them as feedstock for bioenergy and non-energy and non-food applications. This report provides facts and figures for the selected NFCs in Portugal, assesses their strengths and describes opportunities in policy and industry for their market uptake for the Portuguese bioeconomy.

305 PANACEA partners observation 306 Based on CAP, 2016 report for Portugal, Available From

https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/by_country/documents/cap-in-your-country-pt_en.pdf,

STRENGTHS The strengths for each selected crop are assessed for:

a) productivity and ability to be grown at large-scale using existing machinery

b) ability to produce feedstock for multiple markets

c) sustainability and profitability A set of indicators from Common Agricultural

Policy (CAP)307 and from the project deliverable

D1.2308 has been used for the assessment. The

detailed definition of the indicators and the rationale for their selection can be found in the Annex Table 3. The rationale for choosing CAP related indicators is because non-food crops are or will be agricultural commodities and any planning, regulation and support will be developed under the framework of the Common Agricultural policy at EU or national level.

307 CAP Impact Indicators, Available from https://ec.europa.eu/agriculture/sites/agriculture/files/cap-indicators/impact/2016-impact-indicators-fiches.pdf]

308 PANACEA Deliverable D1.2 Inventory of near-to-practice NFC Available from http://www.panacea-h2020.eu/wp-content/uploads/2019/05/D1.2-Inventory-of-near-to-practice-NFC.pdf

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129

Cardoon

Cardoon production in Portugal is currently at small scale. It is mainly produced in Alentejo region. Large-scale field trails are established in Central Portugal, Beja (77.4 ha) and South of Portugal,

Sesimbra (8.1 ha).309 There is no national level

statistics for total production. Yields: The average yield of cardoon recorded in Portugal is 12t/ha for straw biomass and 2t/ha for seed. According to the study done by Gominho J. et al., 2014 the total dry biomass yield of cardoon from large scale field experiment is 9.7 t ha−1, with minimum and maximum yields equal to 4.4 and

18.4 t ha−1 respectively. 310 There is projection for

20%yield increases in the future.

309 Ferreira-Dias, S., Gominho, J., Baptista, I., & Pereira, H. (2018). Pattern recognition of cardoon oil from different large-scale field trials. Industrial Crops and Products, 118, 236-245. 310 Gominho, J., Lourençoa, A., Curtb, M. D., Fernándezb, J., & Pereiraa, H. (2014). Cynara cardunculus in large scale cultivation. A case study in Portugal. CHEMICAL ENGINEERING, 37. 311 Gominho, J., Lourenço, A., Palma, P., Lourenço, M. E., Curt, M. D., Fernández, J., & Pereira, H. (2011). Large scale cultivation of Cynara cardunculus L. for biomass production—a case study. Industrial Crops and Products, 33(1), 1-6. 312 PANACEA partner’s observation

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Geo-climatically suitable for Portugal. High biomass productivity in hot and dry climate

(Gomhino J. et al., 2011)311.

It is drought resistant and can extract nutrient and water from deep soil, so suitable for marginal conditions. The plants can photosynthesize in winter making them resistance to harsh weather (Fernández et al., 2005, Fernández et al.,2006, Ierna et al, 2012).

Currently it is used in production of cheese (enzymes from cardoon flowers) and there is interest for wider cultivation to extract some bioactive compounds with pharmaceutical properties. Cardoon seeds can be used for oil, protein flour and bioactive compounds. Cardoon straw/stems can be used for solid biofuels (energy), paper and pulp, other chemicals, etc. Cardoon roots can be used fororganic substances, chemicals, etc.

There is existing knowledge on mechanised production and harvesting for farmers to capitalise on.

Sustainability Profitability

Cardoon has shown ecological benefits of phytoextraction and soil remediation and improves soil fertility. The flowers contribute to biodiversity, as they are an element of attraction of birds and other pollinators.

€ 60 per kg of dried flowers (use in cheese

making).312

Cardoon Photo credit: ETIP Bioenergy

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Eucalypt

Eucalyptus production covers a huge area, i.e. 25.7% of the total forest area. It mainly covers the central region of Portugal. Yields: The average yield is12t/ha (5.9 dry t/ha/yr to 10.9 dry t/ha/yr as cited in Campinhos,

1999).316

313 Fernández, M., Alaejos, J., Andivia, E., Vázquez-Piqué, J., Ruiz, F., López, F., & Tapias, R. (2018). Eucalyptus x urograndis biomass production for energy purposes exposed to a Mediterranean climate under different irrigation and fertilisation regimes. Biomass and bioenergy, 111, 22-30. 314 Luís, Â., Duarte, A., Gominho, J., Domingues, F., & Duarte, A. P. (2016). Chemical composition, antioxidant, antibacterial and anti-quorum sensing activities of Eucalyptus globulus and Eucalyptus radiata essential oils. Industrial Crops and Products, 79, 274-282. 315 PANACEA partner’s observation 316 Campinhos, E. (1999). Sustainable plantations of high-yield Eucalyptus trees for production of fiber: the Aracruz case. In Planted forests: Contributions to the quest for sustainable societies (pp. 129-143). Springer, Dordrecht.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Geo-climatically suitable for Portugal’s temperate areas with mild winters, where rainfall is distributed throughout autumn-winter-spring.

Widely used in Portugal by the paper and pulp industry. Residues from the industry can also be further valorised to high added value co-products. Harvested residues from fields are being considered in biorefineries for bioactive compounds extraction.

High level of knowledge on mechanised harvesting.

Pellets derived from eucalypts have are

suitable for industrial boiler uses.313

The rapid growth rate of eucalypts and the low demands for agronomic inputs offer the possibility to produce large quantities of lignocellulosic biomass in marginal or less productive soils.

The essential oil has antioxidant compounds called polyphenols which have are used to cure cardiovascular, inflammatory and neurological diseases

(Luis A., et al. 2016). 314

Sustainability

Profitability

Eucalyptus production does not degrade the soil fertility if proper soil management practices are applied. However, the fall of leaves result in an allelopathy, and therefore the soil cover is less rich in organic matter.

40€/ton (eucalyptus)

600-800€/ton pulp for paper315

Eucalyptus Forest, Madeira, Portugal Photo credit: Alamy.com

Lupin Lupin production is currently at small scale. It is mainly produced in the central region of Portugal. Lupin is highly favouredby farmers because of it leguminous nitrogen fixing capability .

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Geo-climatically suitable for Portugal. It can be used as a source of bioactive compounds for biobased chemicals,

cosmetics and medicinal applications.

Sustainability

Profitability

Leguminous, nitrogen fixing ability makes them

suitable crop for intercropping and increase of soil fertility.

Lupin is considered a profitable crop because of its high oil and protein

content.317

317 Leport L, Turner N, French R, Tennant D, Thomson B, Siddique KJEJoA. Water relations, gas exchange and growth of cool-season grain legumes in a Mediterranean-type environment. 1998;9(4):295-303

Andes Lupin, Portugal Photo credit: LIBBIO

Sunflower The total area of production is 9,482 ha. It is mainly produced in the Alentejo region. Yield: The average seed yield of rainfed plantations is

1.79 t/ha318 (1.36 – 2.86 t/ha).319

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Geo-climatically suitable to grow in Portugal.Easily adapted to water stress,

drought and marginal soil conditions.

Mainly used as a food crop. It can also be

used for biodiesel production and the

residues can be valorised to produce

soap, wax, glycerine. Currently produced in large scale because of

availability of seeds and mechanised

harvesting techniques.

Seed cake obtained after oil extraction process is rich in proteins that can be explored for the extraction of chemicals with added value.

The average seed yield of sunflower is good (when considering inputs/outputs) making it crop of interest from farmers.

Seed husk from sunflower are also utilized in biomass boilers.

Sustainability

Profitability

It can be intercropped with food crops,

increase land productivity and decrease land-

use competition.

Companies like Sovena320 indicate the

successful and profitable value chain based on sunflower for energy and non-energy applications.

Improved varieties of sunflower have high

water use efficiency compared with rapeseed

and crambe.321

765 €/m3 (biodiesel) reference

The deep rooting system helps to improve the

soil quality by increasing soil organic matter and traps pollutants from soil.

318 PANACEA partner’s observation 319 Figueiredo, F., Castanheira, É. G., & Freire, F. (2017). Life-cycle assessment of irrigated and rainfed sunflower addressing uncertainty and land use change scenarios. Journal of Cleaner Production, 140, 436-444. 320 Sovena, https://www.sovenagroup.com/en/our-world/business-areas/biodiesel/ 321 Anderson RL, Tanaka DL, Merrill SDJAwm. Yield and water use of broadleaf crops in a semiarid climate. 2003;58(3):255-66.

Sunflower field, near Beja, Portugal Photo credit: Flickr

Peppermint/Rosemary They are produced in small scale,mainly is areas near the river Tejo, in Ribatejo and Setubal provinces of Portugal.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Availability of propagation materials makes its production in large scale possible. The mechanisation of cultivation and harvesting can improve the crop yield.

Peppermint and rosemary have pharmaceutical and cosmetic uses. They are in high demand from industry who want to use locally sourced high-quality raw materials.

Sustainability

Profitability

Sustainability assessment of these crops based on soil carbon, and inputs requirement, can be improved.

Possibility of market expansion and profit from these crops.

Their water use efficiency, and requirements for fertiliser, pesticides and herbicides suggest that sustainability for both crops can be improved.

There are training programmes to encourage farmers to grow these specialty crops. As the production scale increases the costs could potentially be reduced.

Peppermint in Portugal Photo credit: Quinta Aroma das Faias

OPPORTUNITIES

Current Markets & Industry of the selected crops There are research and development activities in Portugal to improve the crop management, and to develop biomass conversion processes for production of energy and bio-based products. MEtRICs, CEBAL and LNEG are three examples. MEtRICs, the Mechanical Engineering and Resource Sustainability Center (www.metrics.pt), was established in 2013, by merging two units: partly from the Centre for Mechanics and Materials Technologies (CT2M, UMinho) and Unit of Environmental Biotechnology (UBiA, UNL). The mission of the research center is to create scientific knowledge and provide technical solutions for a cleaner, safer and sustainable world. It aims to have an impact in the society and contribute to the social and economic benefits that come hand in hand with a knowledge based economy. Although fundamental research is considered, in all activities, MEtRICs is mainly oriented for applied research. MEtRICs indicate that a few criteria should be met in order to fulfill the mission: i) research excellence; ii) multidisciplinary approach; iii) proximity with the economic dynamics of the region; iv) dissemination; v) advanced training; vi) close collaborations with both industry and community. The research activities are organized along 4 research topics: Energy Conversion; Advanced Engineering Systems; Structures and Vehicle Engineering; Food Technology and Wellbeing.

CEBAL322 (The agricultural biotechnology and

Agro-Food Center of Alentejo) is a research and development institution situated in city of Beja, where agriculture contributes 14% of the national GDP. CEBAL’s activity focuses on plant production, processing and improvements of agriculture products to create added value. CEBAL is focusing on using regional lignocellulosic biomass like cardoon to produce bioethanol or value-added compounds. Research and development activities are focused on deconstruction of lignocellulosic biomass through innovative technologies and are expected to contribute in local bioeconomy through valorisation of biomass and use of nanofiltration membrane technologies which are environmentally sustainable. LNEG323, Laboratório Nacional de Energia e Geologia, the National Laboratory of Energy and Geology is an

R&D institution oriented to meet the needs of society and business. It aims at a sustainable research in a sustainability frame through the generation of knowledge of the Portuguese territory. In line with what is done internationally, LNEG have as areas of competence adequate response to the needs of the business sector. LNEG perform Science in Energy and Geology viewing the application in advanced solutions to leverage the Portuguese economy.

The Navigator Company324 is promoting sustainable development in Portugal

though Eucalyptus forest-based bioeconomy. They are leading a research and development activities and providing training to produce paper and pulp from Eucalyptus trees, biorefineries and bioproducts. There are also association of

322 http://www.cebal.pt/index.php/en/o-cebal/quem-somos 323 www.lneg.pt 324 www.thenavigatorcompany.com

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forest industries- ANEFA, APCOR, FORESTIS, AIFF325 which also support the mobilisation of forest

biomass for bioeconomy growth. Portugal is leader in cork production and Amorim Group326 is the Leading

company in cork production. The Sovena Oilseeds Portugal is a company that extracts oil from oilseeds like sunflower, soybean, olive, colza, and produces oil for human consumption as well as biodiesel. The waste from oil and biodiesel production is valorised to produce by-products such as animal feed, soap, wax, glycerine. Seed husk are also utilised in biomass boilers. The Sovena company focuses on the sustainability and eco-efficiency of all the value chain activities involved in the production to conversion, packaging and commercialization of the products based on oilseeds. The oilseed factory located near Tagus River has two units for oil extraction- one for sunflower and colza and another for soybean. The facility is also a refinery and can refine up to 165 tons of sunflower per day and has a workforce of over 100 employees. The biodiesel factory of Sovena in Portugal has two main production stages- i) pre-treatment which refines and neutralises the raw oil and ii) manufacturing of biodiesel along with glycerin by transesterification process using methanol as a catalyst. The biodiesel is sold to many Portuguese gas stations and blended with fossil based diesel. The company is contributing in bioeconomy strategies of greenhouse gas reduction and reducing dependency on fossil fuels.

There are companies like Elisa Câmara327 who are developing quality

and innovative cosmetic products and using environmentally friendly technology for manufacturing processes. NFCs like lupin, peppermint, rosemary are feedstocks of interest for companies like Elisa Câmara as these are suitable feedstock to extract ingredients to manufacture

natural and organic cosmetic products. Rose4Pack328 was a project which developed a biodegradable food

packaging material enriched with active compounds extracted from rosemary.

325 ANEFA (National Association of Forestry, Agricultural and Environment Companies), APCOR (Portuguese Cork Association)

FORESTIS (Forest Association), AIFF (Association for the Competitiveness of Industries of the Forest Row) 326 https://www.amorim.com/en/ 327 www.elisacamara.pt 328 https://www.compete2020.gov.pt/pesquisa/detalhe/Rose4pack-Investigacao-portuguesa-desenvolve-embalagem-biodegradavel-inovadora

Supporting Policies Portugal has many supporting policies in place for the development of value chains based on the selected NFCs. Portuguese Government has a National Low Carbon Roadmap with a horizon of 2020, 2030 and 2050 within the EU low carbon guideline and Portugal also has low carbon sector wise plans to stipulate the contribution by different sectors in the overall emission reduction. Under the European framework, Portugal’s National Action Plan for Energy Efficiency (PNAEE 2016) and National Renewable Energy Action Plan (PNAER 2020) were established to reduce the overall dependency on fossil fuels and carbon emission reduction. The PNAER 2020 set legally binding 2020 targets of reduction of primary energy consumption by 25%. Portugal aims to have 31% final energy consumption and 10% of the transport energy from indigenous renewable sources. These targets and aims promotes the production of NFCs which can be used to produce biofuel and bioenergy. The Decree-Law No. 117/2010, regulating sustainability criteria for production and use of biofuel and bio liquids and defines the mandatory incorporation of biofuels by 2020 (goal of 10% energy content by 2020 for consumption). Biofuel quota and petrol product tax (ISP) are other support schemes to support the use of renewable sources like cardoon, sunflower, eucalyptus used for biofuel production. Portugal has a goal of limiting GHG emission to 1% by 2020 for sectors not covered by EU-Emission Trading System like LULUCF and aviation emissions. There are regulations in place to ensure the sustainable production of biomass feedstocks - The Decree on biodiversity protection ensures that there is no harmful effect on the biodiversity due to certain kinds of cropping practices and crops. Similarly, the Decree on discharge of dangerous substances in agriculture regulates the amount of fertiliser, pesticides used in the production of the biomass. Cardoon, eucalyptus and lupin all have low input requirements and resistance to pest and diseases, therefore making them suitable crops for production as for industrial applications. Crops like sunflower and eucalyptus are already produced at large scale and used for non-energy applications. These crops have already established production and conversion technologies, but additional research support can help in valorising the waste streams by introducing the biorefinery technologies which will produce high-value added products. In addition to that activities include identification of the market opportunities to absorb these high value-added biomaterials and biochemicals and supporting the consumption by creating incentives and raising awareness among the consumers. Cardoon, lupin, peppermint and rosemary are still produced at small-scale. Available funding under CAP-RDPs can be used to promote their large-scale production and improvement in the conversion technologies of the NFCs like . Funds can be directed to support the farmers training and knowledge about the crop production practices and increase awareness among the industry for the potential of using these crops as feedstocks for bio-based products. Similarly, small laboratory scale research on production of bioactive compounds from these NFCs can be scaled up to demonstration plants using the funding from government as well as investment from industries. The Decree-Law 64/2017 on biomass plants supports the conversion and processing of the feedstocks. It implements the legal framework to run biomass plants based on agriculture, energy crops and forest residues. The overall limit of this new regime is limited to 60 MW, with a maximum of 15 MW per plant. Feed-in-tarrif for existing installations in place to promote the renewable technologies will also be additional support to increase the consumption of bioenergy. All selected NFCs for Portugal are suitable for marginal geo-climatic conditions therefore the RDP funding (60%) allocated for Area of Natural Constraints can be used to promote the production of these crops. Speciality crops like peppermint and rosemary which has pharmaceutical and cosmetic applications can be promoted by using the RDPs funding allocated for (3.5%) organic farming practices. These specialty crops cater the smaller niche market and industry therefore organic production of these crops are feasible and will fulfil the demand from industries who are looking for opportunities to source local feedstocks of high quality.

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Production Conversion Distribution End-use

CAP: Portuguese Rural Development Programme

Decree on Discharge of

Dangerous substances in

Agriculture

Biofuel quota and petrol product tax (ISP)

Nitrates Act

GHG emission trading system

Biofuel Sustainability Criteria

The Decree-Law No.

117/2010

Forest Act; National

Forest Strategy Industrial emissions Funds to support Innovation

The Decree on biodiversity protection

Decree-law 23/2010 introduced the legal

framework for cogeneration

Decree on National Forest Protection System.

Energy Efficiency Fund

Decree on Biodiversity Protection

Decree on RES-E generation by small

power installations or plants-Feed-in tariff

Decree to establish

measure to promote

production and

exploitation of forest

biomass

Water Act Decree-Law No. 351/2007 on air quality

National emissions target under the EU Effort Sharing Decision (406/2009/EC) Portugal Roadmap for Carbon Neutrality 2050329; National Plan for Promotion of the Biorefineries; Thematic

Agendas for Research and Innovation330; NECP Portugal 2021-2030331; Circular Economy Action Plan; PNEC 2030332

329 https://dre.pt/web/guest/pesquisa/-/search/122777644/details/maximized 330Bioeconomy related strategies, https://ec.europa.eu/knowledge4policy/bioeconomy/country/portugal_en 331 https://ec.europa.eu/energy/sites/ener/files/documents/pl_final_necp_main_pl.pdf 332 https://participa.pt/contents/consultationdocument/imported/2585/670002.pdf

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ANNEX Table 1. Country Indicators Portugal333

333 Based on CAP, 2016 report for Portugal, Available From https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/by_country/documents/cap-in-your-country-pt_en.pdf [Accessed on 15

July, 2019] 334 Deliverable 2.1 Estimated marginal area by the MAGIC project, MAGIC is Horizon 2020 project. Mapping is based on the Land Parcel Identification System (LPIS).

Indicators Portugal EU-28 average Assessment

1. Population and Demographics

Total Population 10 Million 18 Million Only 2.5% of the farmers are young farmers which means more young people from rural areas can be supported to join farming industry

Population living in rural area 34 %

Young Farmers (<35 yrs) 2.5 % 5.9 %

2. Land use indicators

Total Area 89089 km² km² 15% of the total land is marginal area.334

Agricultural Area 47 % Forest Area 39 %

Marginal Land (D2.1 MAGIC) 13726 km²

3. Farming Sector

Farm Size small-sized farms (72%)

>5 ha 16.1 ha Small-scale farm size

Industrial crops production 0.5 %

Organic Agriculture n/a 1000 ha

Total employment supported by Agriculture 8.6 % 4.7 % Lower contribution to employment compared to EU average. Potential to increase that by increasing the jobs by supporting the agricultural value chains.

Farm Structure Portugal has very diverse agriculture due to different soil, climate and landscape characteristics, dominated by small farm structures

4. RDPs Funding (2014-2020)

Total Budget 4.3 € billion

Agriculture Environment Climate (AEC) 737

€ million 38% of total RDP

Area of Natural Constraints (ANC) 868 € million 60% of total RDP

Organic Farming 1.6 € million 3.5% of total RDP

Table 2. Strengths of selected five NFCs

Criteria Indicators Cardoon Eucalyptus Lupin Sunflower Pepermint/Rosemary

a) Productivity and ability to be grow at large scale

Geoclimatic conditions

Availability of Propagation materials

Availability of mechanisation

Crop Yield

b) Ability to produce feedstock for multiple markets

Recognised interest for multiple end-uses

c) i) Sustainability (socio-ecological)

Soil carbon level

(allelopathy of leaves)

GHG emissions from production

Water abstraction/ Water use efficiency

Fertiliser requirements

Pesticide and herbicide retirements

Employment

c) ii) Profitability

Production Costs

Net profit margin for farmers

Current market price

Strengths TRL>7 ; TRL 5-7 ; TRL 3-5 ; TRL <3

Table 3. Indicators and rationale of selection

Criteria Indicators

Defintion Rationale of Selection Units

a)

Pro

du

cti

vit

y a

nd

ab

ilit

y t

o b

e g

row

at

larg

e s

cale

Geoclimatic conditions Soil (clay content, texture, pH level, porosity)

and climatic conditions affect the crop production process.

Suitable soil and climatic conditions are important factors to consider when the land is being assessed for growing industrial crops.

Descriptive

Availability of Propagation materials

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

The availability of propagation materials (i.e., seeds, rhizomes, etc.) at commercial scale is one a key factor for a crop to be near-to-

practice. indicates readily available

propagation material, indicates that the

genetic material is generally available, but it is regulated by commercial agreements with breeders and seed companies linked to specific end-uses.

TRL 1-9

Availability of mechanisation

Technological readiness level (TRL) of the crop production is measured in a scale 1 to 9. TRL 1 is the lowest, indicating the earliest stage of development for a new technology, and TRL 9 is the highest.

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

This indicator will help farmers understand the level of innovation regarding crop cultivation and land management practices. This deliverable also follows the deliverable D1.2 TRL assessment method as follows. TRL >7 for crops which are already produced at the industrial scale and meet the commercial demands of the bio-based industries. TRL is between 5-7 when the crop production is the at the demo scale. TRL 3-5 is for crops which are moving from research scale to production development stage. Similarly, TRL<3 is for crops which are undergoing basic research,

TRL 1-9

Crop Yield Crop yield is measured per hectare of cultivated area.

The indicator is crucial for farmers and entrepreneurs to make decision on choice of crops for cultivation.

Tonne/ha/yr

b)

Ab

ilit

y t

o

pro

du

ce

feed

sto

ck f

or

mu

ltip

le

mark

ets

Recognised interest for multiple end-uses

It identifies possible industrial end-uses of the feedstock. This indicator helps us understand the possibility of market expansion and ability of the crop to fulfill the demand of the bio-economy as it expands.

In global market (e.g. energy/fuels) there are emerging opportunities find possible end-uses of NFCs and consumer demand for these end-uses. Therefore, it is important to understand the potential of production and trade these feedstocks as the demand rises. Conversion and quality of the feedstock

Descriptive

c)

i) S

us

tain

ab

ilit

y (

so

cio

-eco

log

ical)

Soil carbon level (SOC)

It is the indicator which estimates the total organic carbon content in arable soils.

This indicator depends on the inherent quality of the soil but also depend on the type of plant/crop cover, land management practices/ cultivation practices, water holding and carbon exchange capacity of the crop, drainage status of the soil and weather conditions.

Total SOC is measured as Megatonnes (Mt); Mean SOC concentration in arable land: g/kg.

Greenhouse has emissions from production

This indicator measures GHG emission from agriculture and agriculture soils.

This indicator depends on the N2 fertilizer used, crop choices, management practices and fossil fuel used for production

tonnes of CO2

equivalent

Water abstraction/ Water use efficiency

It refers to the volume of water applied to soils for irrigation purposes.

Water use efficiency (WUE) gives information on water abstraction to produce crops.

Fertiliser requirements

It refers to the nitrogen fertilizer used or nitrogen use efficiency (NUE)

This indicator depends on the N2 fertilizer used.

Kg- N/ha/yr or Kg-P/ha/yr

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Pesticide and herbicide requirements

Resistance is the ability of a plant variety to restrict the growth and development of a specified pathogen/pest or the damage they cause when compared to susceptible plant varieties under similar environmental conditions and pathogen/pest pressure.

This indicator helps in understanding the resistance capacity of a crop against incidence of pest and diseases. The higher tolerance of crops makes them suitable and better choices. It means less inputs required, which means production costs is lower and the soil and water quality is also not compromised by the surface run off or ground water leaching.

Descriptive

Employment Full-time- employment (FTE) per value chian This indicator helps us estimate the contribution of a value chain in the form of FTE.

Percentage or Number of FTE per tonne of biomass

c)

ii)

Pro

fita

bilit

y

Production Costs

Production costs is the total costs for farmers to produce the crop

The total costs of production of a crop can be calculated by sum of variable costs (costs of inputs, labour cost) as well as fixed costs (land costs, overhead costs like farm level taxes and permits, depreciation costs of capital owned by farm equipment and buildings)

Euro/tonne

Net profit margin for farmers

The gross margin for a crop can be calculated by deducting the variable costs from the gross farm income from a crop per cropping season or per year. In order to measure the net farm profit margin, the calculation should include the capital costs (land, buildings, machinery, irrigation equipment ets) and fixed costs (land, building, machinery depreciation, administration, taxes etc).

The net profit margin is a decisive tool for farmers in farm management, estimating the returns and profit from production of a particular crop. This figure can also help in assess the performance of the crop per season and help in identifying where the farm management can be improved or streamlined.

Euro per year (or per cropping season)

Current market price

The market price for the crop varies during a year or per crop season, it decreases as supply increases and vice versa.

This indicator helps farmer understand the market and the potential profit they can make from the crop production.

Euro/tonne

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D1.3 Strengths and opportunities of near-to-practice non-food crops (NFCs)

in Spain

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Deliverable Title: D1.3 Strengths and Opportunities of near to practice non-food crops (NFCs) in Spain Deliverable Lead: Imperial College London (ICL) Related Work package: WP1 Author (s): ACTA, INTIA, Spanish Co-ops, ICL Communication level: PU Public PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) Grant Agreement Number: 773501 Programme: Horizon 2020 Start date of Project: November 2017 Duration: 40 months Project coordinator: CRES

Selected near-to-practice NFCs in Spain (ES) Non-Food Crops (NFCs) have been cultivated at experimental, demonstration and commercial fields in Spain for many years. The share of industrial (non-food) crop production in the period

2013-2015, was 2.3%335.

Cardoon, sugar beet, triticale, sorghum, rapeseed, camelina, hemp, flax, castor, safflower, Ethiopian mustard, lupin, lavender, peppermint, chamomile are selected as near-to-practice NFCs for Spain in PANACEA based on their presence in the Spanish agriculture. The selected fifteen crops have shown the potential of sustainable production and have recognized interest from bio-based industries to be used as feedstock for bioenergy and non-energy applications. The Technical University of Madrid (UPM) and CEIMAT (a research organisation) have gathered valuable experience and knowledge about cardoon which makes it a suitable crop for uptake and is considered near-to-practice crop. Spain has also long experience with camelina and there are companies like Camelina Company (https://camelinasolutions.com/) that provide necessary support to the farmers along the whole value chain from production to marketing. Camelina Company provides high quality seeds to farmers, technical advice and also helps the by

guaranteeing the market guarantee of their harvest. Lupin is a suitable crop for the mountainous regions of Spain where soil is acidic. The crop is favoured by farmers because of its nitrogen fixing ability. Chamomile is a well-adapted specialty crop in northern region of Spain. Peppermint is another speciality crop which is well adapted to Navarra. Both crops are in high demand from companies who are looking for locally sourced high-quality raw materials for cosmetics, perfumery and pharmaceutical uses. Spain in one of the largest aromatic herbs producers and essential oil-yield in Europe

(Verlet,1992 as cited in Zuazo et al., 2007)336.

Lavandula latifolia is the commonly grown species in Southern Mediterranean region. Spain is the dominant lavender oil producer and lavender production occupies the majority of cultivated area by aromatic and medicinal plants. This report provides facts and figures for the selected NFCs in Spain, assesses their strengths and describes opportunities in policy and industry for their market uptake for the Spanish bioeconomy.

335 Based on CAP, 2016 report for Spain. Available from

https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/by_country/documents/cap-in-your-country-es_en.pdf

336 Zuazo, V. D., Pleguezuelo, C. R., Martínez, J. F.,

Rodríguez, B. C., Raya, A. M., & Galindo, P. P. (2008). Harvest intensity of aromatic shrubs vs. soil erosion: An equilibrium for sustainable agriculture (SE Spain). Catena, 73(1), 107-116.

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STRENGTHS The strengths for each selected crop are assessed for: :

a) productivity and ability to be grown at large-scale using existing machinery

b) ability to produce feedstock for multiple markets

c) sustainability and profitability

A set of indicators from Common Agricultural

Policy (CAP)337 and from the project

deliverable D1.2338 has been used for the

assessment. The detailed definition of the indicators and the rationale for their selection can be found in the Annex Table 3. The rationale for choosing CAP related indicators is because non-food crops are or will be agricultural commodities and any planning, regulation and support will be developed under the framework of the Common Agricultural policy at EU or national level.

337 CAP Impact Indicators, Available from https://ec.europa.eu/agriculture/sites/agriculture/files/cap-indicators/impact/2016-impact-indicators-fiches.pdf,

338 PANACEA Deliverable D1.2 Inventory of near-to-practice NFC Available from http://www.panacea-h2020.eu/wp-content/uploads/2019/05/D1.2-Inventory-of-near-to-practice-NFC.pdf

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Cardoon

Yield: 10-15 t/ha (Gonzales et al., 2004; Ochoa et al., 2004). In a rainfed conditions in Spain cardoon yields were observed in the range of 10-20 t/ha/yr and average of 14 t/ha/yr for dryland of Central Spain

(Fernandez et al.,2006).339

339 Fernández, J., Curt, M. D., & Aguado, P. L. (2006). Industrial applications of Cynara cardunculus L. for energy and other uses. Industrial crops and Products, 24(3), 222-229. 340 Ochoa, M. J., & Fandos, A. (2003, May). Evaluation of vegetable cardoon (Cynara cardunculus L.) populations for biomass production under rainfed conditions. In V International Congress on Artichoke 660 (pp. 235-239). 341 Merrien, A., Carre, P., & Quinsac, A. (2012). Des ressources oléagineuses variées potentiellement au service du développement de la chimie verte. Oléagineux, Corps gras, Lipides, 19(1), 6-9. 342 Scavo, A., Rial, C., Molinillo, J. M., Varela, R. M., Mauromicale, G., & Macias, F. A. (2019). The extraction procedure improves the allelopathic activity of cardoon (Cynara cardunculus var. altilis) leaf allelochemicals. Industrial crops and products, 128, 479-487. 343 https://energy4farms.eu/cardoon/

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Stable crop yield in low input and rainfed conditions, makes the crop suitable for the

dry arid Mediterranean soils of Spain.340

Spain has long experience with cardoon for bio-energy . There is well documented knowledge on its cultivation. The Technical University of Madrid (UPM) and research institution (CIEMAT) have expertise in cardoon production. High level of knowledge of propagation materials and mechanized cultivation.

Cardoon production in Spain is mainly for electricity generation. Cardoon seeds contain a linoleic acid rich oil which is processed to produce biodiesel. The rest of the cardoon plant is used as solid biofuel. The low moisture content during harvest facilitates handling and logistics of the crop.

A study by Merrien A., et al suggested that

cardoon can also be used for bioplastics,

bio-lubricants, paints etc. 341

At the laboratory scale cardoon is also used

for extraction of allelochemicals.342

Cardoon has polyphenolic compounds and flavonoids. Cardoon is used for cheese making process in Spain in cheeses like Torta Del Casar and

Torta de la Serena.343

Cardoon, Canary Island region, Spain Photo credit: Pixabay

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344 Llugany, M., Miralles, R., Corrales, I., Barceló, J., & Poschenrieder, C. (2012). Cynara cardunculus a potentially useful plant for remediation of soils polluted with cadmium or arsenic. Journal of Geochemical Exploration, 123, 122-127. 345 Sánchez-Pardo, B., Cantero, C., & Zornoza, P. (2015). Alleviation of arsenic stress in cardoon plants via the supply of a low cadmium concentration. Environmental and experimental botany, 109, 229-234. 346 Gominho, J., Curt, M. D., Lourenco, A., Fernández, J., & Pereira, H. (2018). Cynara cardunculus L. as a biomass and multi-purpose crop: A review of 30 years of research. Biomass and Bioenergy, 109, 257-275. 347 http://www.eumedia.es/portales/files/documentos/dossier_malashierbas_VR377.pdf 348 J. Dufour, J. Arsuaga, J. Moreno, H. Torrealba, J. Camacho, Comparative life cycle assessment of biodiesel production from cardoon (Cynara cardunculus) and rapeseed oil obtained under Spanish conditions, Energy Fuel. 27 (2013), http://dx.doi. org/10.1021/ef400951f 130826152713003. 349 S. Fazio, A. Monti, Life cycle assessment of different bioenergy production systems including perennial and annual crops, Biomass Bioenergy 35 (2011) 4868–4878, http://dx.doi.org/10.1016/j.biombioe.2011.10.014. 350 F. Razza, L. Sollima, M. Falce, R.M.S. Costa, V. Toscano, A. Novelli, A. Ciancolini, S.A. Raccuia, Lifecycle assessmentof cardoon productionsystem indifferent areas of Italy, Acta Hortic. (2016) 329–334, http://dx.doi.org/10.17660/ActaHortic. 2016.1147.46. 351 Francaviglia, R., Bruno, A., Falcucci, M., Farina, R., Renzi, G., Russo, D. E., ... & Neri, U. (2016). Yields and quality of Cynara cardunculus L. wild and cultivated cardoon genotypes. A case study from a marginal land in Central Italy. European journal of agronomy, 72, 10-19. (This result is from Italy based study but from marginal land in Mediterranean conditions, which is comparable to some regions in Spain.)

Sustainability Profitability

Cardoon can improve the soil fertility by increasing the carbon storage and nitrogen in soil. They also have phytoremediation ability and can remove

cadmium from the polluted soils.344,345

Though there are various studies been done for fertilisation rates in cardoon, the optimal fertiliser doses is not established to get balance of good

crop yield, quality and sustainability. 346 Depending

upon the soil trype they do require fertilisation. Weed control is required on the first year of establishment. Both mechanical and chemical

weed control method is applied for cardoon.347

Glyphosate is herbicide used A pre-emergence herbicide (pendimethalin) is applied and after emergence a row-crop cultivator is passed to remove the weeds LCA studies have shown that Cardoon when compared with other crops like rapeseed have shown positive energy and e environmental

impact348. LCA studies from abandoned and

degraded lands have shown that the GHG emissions from perennial crops like cardoon when

compared with annual is lower.349

The Global warming potential (GWP) as CO2 eq

for cardoon biomass production was observed as 1.9 t/ha/yr in Sardinia and 3.1 t/ha/yr in Sicily region

in Italy.350 The total energy required for cardoon

cultivation was estimated about 2.2 GJ/ha/yr

The difference of yield outcomes and yearly costs was used to calculate the cardoon revenues and it was 79 Euro/ha for wild cardoon and 230 Euro/ha for cultivated

cardoon. 351

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Camelina

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Ability to photosynthesise in winter and deep rooting system make Camelina a suitable crop for dry, Mediterranean climate of Spain.

Camelina oil has high content of omega 3. This makes it suitable for bio-based industry and biorefineries.

Camelina cultivation requires similar fertilization to cereals and uses conventional machinery which makes the crop easy to adopt by farmers.

Sustainability

Profitability

Camelina is resistant to pest and diseases. It can also be used as break crop between cereal crops which reduces the incidence of pest and diseases.

Production cost of camelina is low compared to rapeseed and it is easy to cultivate compared to rapeseed making them profitable crop to grow.

Camelina offers good vegetable cover which helps in reducing soil erosion.

The profit for Camelina is 401€ /ha.

(Camelina Company)352

352 http://www.panacea-h2020.eu/wp-content/uploads/2019/06/8_El-cultivo-de-Camelina-by-Anibal-Capuano-CAMELINA-COMPANY-ESPAÑA-SL.pdf Presentation.

Camelina is grown in Navarra, Leon, Barcelona, Madrid, Cuenca, Ciudad Real.

Yield: The estimated yield of the camelina is 2.5-3 t/ha in semi-arid drylands of Spain.

Camelina, Spain. Photo credit: downloaded from www.camelinacompany.es

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Flax (Linseed)

Flax production is new in Spain therefore there is no established protocol for cultivation practices, supply of seeds and pesticides available. The market of flaxseed is also in its initial development stage therefore it needs additional support for the uptake of the crops. Yield: Estimated yield of the flax is 1.5-3

t/ha353 depending upon the seed varieties and

its germination rate.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Flax is a good rotational crop for cereal production in semi-arid drylands like that of Spain.

Flax is multipurpose crops and can be used for its oil or fibre for construction materials. Oil extraction from flax is a simple process and it can be marketed in already established market of other oilseeds.

Harvesting is mechanised by using the machinery used for cereal crops.

The oil flax fibre can also be used in the textile industry while protein from seed is used for animal feed.

Sustainability

Profitability

Flax is resistant to pest and diseases. Fertilization requirements are low.

Multiple uses of flax seeds and fibre makes it versatile crop which has potential for profit.

Flax is a good break crop for cereal production and helps in improving the productivity of the cereals by reducing the incidence of pests and diseases.

Flax cultivation offers the opportunity to increase the biodiversity in areas which are under monoculture of cereals.

353 PANACEA partner’s observation

Linseed Farm in UK Photocredit: https://thelinseedfarm.co.uk

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Lupin

Lupin is a leguminous crop which has better adapted varieties (like Andean Lupins) for Spain’s geoclimatic conditions. Lupin is also suitable for mountain areas where the soil is predominantly acidic. Castilla Y Leon and Castilla La Mancha are the largest producing regions of Lupin. Yield: Estimated yield of Lupin is 3.5- 4 t/ha 354depending upon the its cultivation practices

and seed germination rate.

354 PANACEA partner’s observation

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Lupine production is like that of soybean, and it can be grown both as spring as well as winter crop on fresh dry land and irrigated land.

Lupin oil can be used for cosmetics, adhesives, emulsions, paints, coatings etc. The lignocellulosic biomass of the lupin plant can also be used for bioenergy.

Mechanised harvesting is possible using machinery used for cereal harvesting, thus allowing the large volume of production easy.

There is high demand of protein form seeds for animal feed.

Lupin production is new so there are no established protocols for seed supply and pesticide use.

Lupin has antioxidants and anti-inflammatory properties so can also potentially be used in pharmaceutical products.

Sustainability

Profitability

Lupin has the ability to fix nitrogen and mobilise soil phosphate. It is grown in rotation with cereal crops and reduces the occurrence of pests and diseases.

Lupin oil can use the already established market structure by other oilseeds and make a profitable return.

Altramuz (Lupinus spp), Navarra, Spain Photo credit: INTIA

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Chamomile Navarra region has good experience with the production. There are farmers cooperatives working to support the production.

Yield: 1-2 t/ha 355depending on the planting dates.

355 PANACEA partner’s observation

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Chamomile can diversify the cereal production system in Spain, and it is well adapted crop for fresh dryland.

Post-harvest treatment process can be very simple keeping the cost of the feedstock very low for the bio-based industry.

Additional research is needed to mechanise the harvesting process. There are some prototypes under evaluation.

Chamomile is an interest crop to companies looking for alternative of locally produced high quality raw materials for cosmetic and medicinal purposes.

There is lack of good quality seeds in the market, fact which compromises the germination quality.

Sustainability

Profitability

Chamomile is pest and disease resistant. Fertilization can be done at low rates.

There is a demand and presence of market for the organic products, thus chamomile can be a profitable crop as it can tap into this demand.

Well composted organic fertiliser is used for the organic production of chamomile to prevent weed contamination.

Chamomile production can provide an opportunity to reduce the environmental impacts of intensive agriculture in fresh dryland regions.

Chamomile, Spain Photo credit: Pixabay

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Lavender

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Availability of propagation materials and mechanisation for production and harvesting.

Lavender is mainly used for ornamental and perfume purposes. In addition to that it has antiseptic, antimicrobial, anti-bacterial, diuretic, anti-inflammatory properties.

Fifteen years of experience for cultivation gives an advantage of a knowledge on crop to grow in large scale. Several cooperatives have experience with lavender.

Sustainability

Profitability

Crop with low inputs and water

requirements (300 mm/year).

Good average profitability. According to the Ultra International B.V. the average market

price is 49 Euro per kg.356

356 ultranl.com/products/lavender-oil-spike-spain/

The regions where Lavender production is highest in Spain are Andalucia, Castilla La Mancha and Castilla Y Leon. Cooperative Alcamancha and Cooperative COCOPE are cultivating Lavender in Cuenca region and Castilla y Leon region of Spain. Lavender is also cultivated in Navarra region of Spain for essential oil production. Cultivation and harvesting of lavender is highly mechanised. Lavandula latifolia, commonly known as spike lavender is the most extensively cultivated species of lavender in certain region of Spain (960,933 hectares). Yield: ??

Lavender, Navarra, Spain

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Peppermint Peppermint is a well-adapted crop in the northern region of Spain and there are some good learning experiences from Navarra region.

Yield: Estimated yield is 1-2 t/ha 357depending on the

planting dates. Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Peppermint is easily adaptable to any climatic condition but grows well in both full sun or partial shade. The plants need irrigation and prefer well drained soils. They are frost resistant.

The dried leaves of the peppermint are used to extract essential oil.

Propagation material is available.

Sustainability

Profitability

Lavender requires moderate amount of inputs (fertilizers and pesticides) depending on the land used for the production.

There is a demand and presence of market for the lavender based products, thus it can be a profitable crop as it can tap into this demand.

357 PANACEA partner’s observation

Dried Peppermint Leaves, Cultivated in Navarra region, Spain Photo credit: INTIA

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OPPORTUNITIES

Current Markets & Industry of the selected crops The biobased industry in Spain is supported by bioeconomy strategies, R&D (research and development) funding and technology commercialisation centres. One of the main research and development initiatives in Spain for the development of biotechnology is CLAMBER

(Castilla-La Mancha Bio-Economy Region) project.358 The CLAMBER

Project is a biorefinery project which is managed and developed by the Forest, Food and Agriculture Research Institute of Castilla-La Mancha (IRIAF). This project supported the largest public demonstration of biorefinery where companies can perform scale-up experiments of biomass valorisation of biodegradable waste biomass from agroindustry or lignocellulosic biomass. This research and development biorefinery currently have the capacity to treat 1 ton of dry lignocellulosic biomass per day to produce bioproducts. The project aims to create a technology hub to enable synergies among companies who produce biobased products and users. They follow a public-private co-operation system to increase the scientific and technological progress to stimulate European and international research initiatives. There are other research institutes like Regional

Institute for Applied Sciences (Instituto Regional de Ciencias Aplicadas (IRICA)359 and the Regional

Development Institute (Instituto de Desarrollo Regional) which have carried our significant agricultural research work in Spain.

There are biobased industries like NATAC group360 in Spain

which extracts bio-compounds from varieties of specialty crops and food crops which can be used by pharmaceutical, nutraceutical, cosmetic and animal nutrition industries. They have developed over 140 products and over 30 countries imports their extracts for various uses. Biobased industries like NATAC can explore the potential of identified near-to-practice NFCs for Spain to extract solvents which has high-value added end-uses.

There are networks working together to support the bioeconomy industry in Spain. The Spanish

Association of Bio-Companies (ASEBIO)361 promotes biotechnology organisations. The Platform of

Biotechnological Markets is a link between science-technology-company stakeholders, to foster innovation, technology transfer and translation to society. The Association of Renewable Energy Producers (APPA) brings together renewable energy companies including biofuels and biomass. The Spanish Technological Biomass Platform

(BIOPLAT)362 is a group of excellence in technical and

scientific sectorial coordination and focuses on development of RDI in bioenergy. The Superior Council for Scientific Research (CSIC) is a large public institution, governing a network of centres, to develop and promote research for the benefit of scientific and technological progress. This gives us an idea that there is already a huge interest in promoting the use of biomass

358 CLAMBER Project https://clamber.castillalamancha.es/ 359 IRICA, https://www.irica.uclm.es/ 360 NATAC Group https://www.natacgroup.com/natac-solutions/ 361 https://www.asebio.com/en/sobre-asebio/quienes-somos 362 http://bioplat.org/

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and developing biobased industry in Spain. Indianes363 is an example of a company which produced

footwear using plant-based fibres from hemp, banana etc.

Supporting Policies Development of bioenergy and biofuel industry is on the agenda of the Spanish energy policy. There are several policy mechanisms in place, as shown in the policy landscaping below, which supports the conversion, distribution and end-use NFCs for both heat and electricity. There are mix of policies from both from various sectors which supports the biomass mobilisation for bioheat and bioelectricity. The production of the agricultural biomass is supported by the CAP RDP funding. Production Conversion Distribution End-use

CAP: Spain Rural Development Programme Programme for Large Thermal Plants (GIT)

Fertilizers Act

Biofuel quota Excise Duty Tax

Nitrates Act

Industrial Emissions

BIOMCASA II: Funding

for Efficiency Biomass

use

Biofuel Sustainability Criteria

Forest Law

Support for housing heating systems removal Royal Decree of Technical

Building code

Water Law

Royal Decree on Electricity and Gas

Distribution Support for housing heating

systems removal

Regulating the guarantee of origin system for

electricity from renewable sources and high

efficiency cogeneration Guarantee of Origin for RE and CHP

Law on sustainable economy National emissions target under the EU Effort Sharing Decision (406/2009/EC) Spain

State Plan of Scientific and Technical Research and Innovation 2017 – 2020 Spanish Strategy for Climate Change and Clean Energy 2007-2020

Regional Bioeconomy Strategy and action plans NECP Spain 2021-2030

363 https://www.indianesfootwear.com/materiales2?lang=en

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ANNEX Table 1. Country Indicators: Spain364

364 Based on CAP, 2016 report for Spain, Available From https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/by_country/documents/cap-in-your-country-es_en.pdf, [Accessed on 15 July, 2019]

EU-28 average Assessment 1. Population and Demographics unit unit Total Population 46 Million 18 Million Population living in rural area 7.3 % Only a small percentage of the population lives in the rural areas. Young Farmers (<35 yrs) 3.7 % 5.9 % 3.7% of the farmers community are young farmers which is even less than EU average. 2. Land use indicators Total Area 505991 km² km² Agricultural Area 50 % 50% of the total land is agricultural area which means a large percentage of land is available

for agricultural purposes. Forest Area 30 % Marginal Land (Elbersen, …) 16768 km² 33% of the total area is the marginal land (MAGIC) which means a huge potential to exploit

these underutilised land resources. 3. Farming Sector Farm Size Small-sized and

medium-sized 24 ha in avg

16.1 ha Spain’s agriculture system is extremely heterogenous and agri-food industry is dynamic.

Industrial crops production 2.3 % Organic Agriculture x 1000 ha Total employment supported by Agriculture 4.2 % 4.7 % 4. RDPs Funding (2014-2020) Total Budget 408 € million Spain RDP budget is allocated in forest investments, cooperation, investments in basic

services and village renewal and physical aspects. Agriculture Environment Climate (AEC) n/a € million Area of Natural Constraints (ANC) n/a € million Organic Farming n/a € million 5 NREAP 2005 share 8.7 % 17.52 % 2020 target 20 % 20 %

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Table 2. Strengths of selected non-food crops (NFCs)

365 Less GHG emission compared to annual crops

Criteria

Indicators Cardoon Camelina Lupin Peppermint Chamomile Lavender a) Productivity and ability to be grow at large scale

Ag

ron

om

ic

Req

uir

em

en

ts

Geoclimatic conditions

Availability of Propagation materials

Availability of mechanisation

-

Crop Yield

-

b) Ability to produce feedstock for multiple markets

Recognised interest for multiple end-uses

c) i) Sustainability (socio-ecological)

En

vir

on

men

tal Im

pa

cts

Soil carbon level

- -

GHG emissions 365

- - - -

Water abstraction/ Water use efficiency

- - - -

Fertiliser requirements

-

Pesticide and herbicide retirements

-

So

cia

l Im pa

cts

Employment - -

c) ii) Profitability

Eco

no

mic

Imp

acts

Production Costs

Net profit margin for farmers

Current market price

Str

eng

ths T

RL

>7

; T

RL

5-7

;T

RL

3-5

; TR

L <

3

Table 3. Indicators and rationale of selection

Criteria Indicators

Defintion Rationale of Selection Units

a)

Pro

du

cti

vit

y a

nd

ab

ilit

y t

o b

e g

row

at

larg

e s

cale

Geoclimatic conditions Soil (clay content, texture, pH level, porosity)

and climatic conditions affect the crop production process.

Suitable soil and climatic conditions are important factors to consider when the land is being assessed for growing industrial crops.

Descriptive

Availability of Propagation materials

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

The availability of propagation materials (i.e., seeds, rhizomes, etc.) at commercial scale is one a key factor for a crop to be near-to-

practice. indicates readily available

propagation material, indicates that the

genetic material is generally available, but it is regulated by commercial agreements with breeders and seed companies linked to specific end-uses.

TRL 1-9

Availability of mechanisation

Technological readiness level (TRL) of the crop production is measured in a scale 1 to 9. TRL 1 is the lowest, indicating the earliest stage of development for a new technology, and TRL 9 is the highest.

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

This indicator will help farmers understand the level of innovation regarding crop cultivation and land management practices. This deliverable also follows the deliverable D1.2 TRL assessment method as follows. TRL >7 for crops which are already produced at the industrial scale and meet the commercial demands of the bio-based industries. TRL is between 5-7 when the crop production is the at the demo scale. TRL 3-5 is for crops which are moving from research scale to production development stage. Similarly, TRL<3 is for crops which are undergoing basic research,

TRL 1-9

Crop Yield Crop yield is measured per hectare of cultivated area.

The indicator is crucial for farmers and entrepreneurs to make decision on choice of crops for cultivation.

Tonne/ha/yr

b)

Ab

ilit

y t

o

pro

du

ce

feed

sto

ck f

or

mu

ltip

le m

ark

ets

Recognised interest for multiple end-uses

It identifies possible industrial end-uses of the feedstock. This indicator helps us understand the

possibility of market expansion and

ability of the crop to fulfill the demand of the bio-economy as it expands.

In global market (e.g. energy/fuels) there are emerging opportunities find possible end-uses of NFCs and consumer demand for these end-uses. Therefore, it is important to understand the potential of production and trade these feedstocks as the demand rises. Conversion and quality of the feedstock

Descriptive

c)

i) S

us

tain

ab

ilit

y (

so

cio

-eco

log

ical)

Soil carbon level (SOC)

It is the indicator which estimates the total organic carbon content in arable soils.

This indicator depends on the inherent quality of the soil but also depend on the type of plant/crop cover, land management practices/ cultivation practices, water holding and carbon exchange capacity of the crop, drainage status of the soil and weather conditions.

Total SOC is measured as Megatonnes (Mt); Mean SOC concentration in arable land: g/kg.

Greenhouse has emissions from production

This indicator measures GHG emission from agriculture and agriculture soils.

This indicator depends on the N2 fertilizer used, crop choices, management practices and fossil fuel used for production

tonnes of CO2

equivalent

Water abstraction/ Water use efficiency

It refers to the volume of water applied to soils for irrigation purposes.

Water use efficiency (WUE) gives information on water abstraction to produce crops.

Fertiliser requirements

It refers to the nitrogen fertilizer used or nitrogen use efficiency (NUE)

This indicator depends on the N2 fertilizer used.

Kg- N/ha/yr or Kg-P/ha/yr

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Pesticide and herbicide requirements

Resistance is the ability of a plant variety to restrict the growth and development of a specified pathogen/pest or the damage they cause when compared to susceptible plant varieties under similar environmental conditions and pathogen/pest pressure.

This indicator helps in understanding the resistance capacity of a crop against incidence of pest and diseases. The higher tolerance of crops makes them suitable and better choices. It means less inputs required, which means production costs is lower and the soil and water quality is also not compromised by the surface run off or ground water leaching.

Descriptive

Employment Full-time- employment (FTE) per value chian This indicator helps us estimate the contribution of a value chain in the form of FTE.

Percentage or Number of FTE per tonne of biomass

c)

ii)

Pro

fita

bilit

y

Production Costs

Production costs is the total costs for farmers to produce the crop

The total costs of production of a crop can be calculated by sum of variable costs (costs of inputs, labour cost) as well as fixed costs (land costs, overhead costs like farm level taxes and permits, depreciation costs of capital owned by farm equipment and buildings)

Euro/tonne

Net profit margin for farmers

The gross margin for a crop can be calculated by deducting the variable costs from the gross farm income from a crop per cropping season or per year. In order to measure the net farm profit margin, the calculation should include the capital costs (land, buildings, machinery, irrigation equipment ets) and fixed costs (land, building, machinery depreciation, administration, taxes etc).

The net profit margin is a decisive tool for farmers in farm management, estimating the returns and profit from production of a particular crop. This figure can also help in assess the performance of the crop per season and help in identifying where the farm management can be improved or streamlined.

Euro per year (or per cropping season)

Current market price

The market price for the crop varies during a year or per crop season, it decreases as supply increases and vice versa.

This indicator helps farmer understand the market and the potential profit they can make from the crop production.

Euro/tonne

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D1.3 Strengths and opportunities of near-to-practice non-food crops (NFCs)

in the United Kingdom

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Deliverable Title: D1.3 Strengths and Opportunities of near to practice non-food crops (NFCs) in the UK Deliverable Lead: Imperial College London Related Work package: WP1 Author(s): Imperial College London Communication level: PU Public PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) Grant Agreement Number: 773501 Programme: Horizon 2020 Start date of Project: November 2017 Duration: 40 months Project coordinator: CRES

Selected near-to-practice NFCs in the United Kingdom (UK) Non Food Crops (NFCs) production have been

cultivated in the UK for 20 years366. The share

(2013-15) of industrial (non-food) crop production

is 7.8%367.

Lignocellulosic crops like miscanthus and short rotation coppice (poplar and willow) are mainly grown in the UK for bioenergy whereas rapeseed and sugar beet are grown for biofuel purposes. In addition to these wheat, barley and maize are additional crops which are also used for non-food applications. The PANACEA consortium has selected miscanthus, poplar, rapeseed, sugar beet and lavender as near-to-practice NFCs for the UK, based on the existence of these crops in the UK agricultural industry as food crops with non-food

uses or as non-food crops. These selected five crops have shown the potential of sustainable production and recognized interest from bio-based industries to be used as feedstock for bioenergy and non-energy applications. In the UK, all selected NFCs have been produced widely so the agronomic practices are well established. Compared to the conventional arable crops sugar beet and rapeseed, miscanthus and SRC (poplar) are planted in relatively small area in the UK, but they have shown good potential for large scale production and have the ability to produce feedstocks for the biobased industries. This report provides facts and figures for selected NFCs in the United Kingdom, assesses their strengths, and provides an outlook of opportunities in policy and industry for their future market uptake.

Figure 1. Total areas of NFCs grown for bioenergy and biofuel in UK from 2008-2018.

366 This was the number inferred based on the Energy Crop

Scheme start date which was 2000.

367 Based on CAP, 2016 report for France, Available From

https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/by_country/documents/cap-in-your-country-uk_en.pdf, [Accessed on 15 July, 2019].

STRENGTHS All selected NFCs have been cultivated in the United Kingdom at different scale so the agronomic practices are well established. The strengths for each selected crop are assessed for:

g) productivity and ability to be grown at large-scale using existing machinery

h) ability to produce feedstock for multiple markets

i) sustainability and profitability

A set of indicators from Common Agricultural Policy (CAP)368 and from the project deliverable D1.2369 has been used for the assessment. The detailed definition of the indicators and the rationale for their selection can be found in the Annex Table 3. The rationale for choosing CAP related indicators is because non-food crops are or will be agricultural commodities and any planning, regulation and support will be developed under the framework of the Common Agricultural policy at EU or national level.

368 CAP Impact Indicators, Available from

https://ec.europa.eu/agriculture/sites/agriculture/files/cap-indicators/impact/2016-impact-indicators-fiches.pdf

369 PANACEA Deliverable D1.2 Inventory of near-to-practice

NFC Available from http://www.panacea-h2020.eu/wp-content/uploads/2019/05/D1.2-Inventory-of-near-to-practice-NFC.pdf

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Miscanthus Miscanthus is grown in England in non-traditional arable farms. The production grew under the

Energy Crops Schemes (ECS)370 which was part

of Rural Development Programme for England until 2013. In 2016 miscanthus was grown on 7057 hectares (DEFRA 2016) of agricultural land in England. East Midlands, West Midlands, Yorkshire and the Humber are the top three growers of miscanthus compared to other regions. Yields: The average yield of miscanthus recorded in the UK is 12t/ha to 16t/ha (DEFRA, 2007).

370 ECS Scheme for energy crops: ECS1 (2000-2007) and ECS2 (2007-2013)

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

UK geoclimatic conditions are suitable for the cultivation of miscanthus.

It is popularly used for heat, electricity and for animal bedding.

Well established market for miscanthus propagation material- rhizome. Rhizomes have high germination rate in suitable temperature and soil conditions. Miscanthus cultivation and its harvesting process is mechanised. The harvested miscanthus are turned int bales for storage.

Technological advancement and biorefineries processes can improve the miscanthus feedstocks’ ability to be utilised for various products at low-cost. Bioprocesses and chemical processes can break down complex structure to produce lignin, cellulose and hemicellulose.

Miscanthus Farm, UK Photo credit: Terravesta, UK

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Sustainability Profitability

Miscanthus produces higher yields and is the best land-use option for lower GHG emissions and soil quality as it sequesters carbon at a

higher rate compared to other crops.371

ETI study372 on bioenergy crops like miscanthus has shown that these crops diversify the income of farmers and increase the productivity of their low-quality lands.

Miscanthus is a low input crop and mature plants are tolerant of weeds. Pesticide and chemical fertilisers are not recommended to

use.373

Miscanthus has ecological benefits for wildlife

and increases the biodiversity.374,375

Life-cycle assessment for the production of building materials (insulation) from miscanthus has shown a 31 tonne of CO2eq.C/ha/yr savings (Lewandowski et. al, 2016).

Miscanthus estimated market price is £45-£70 per tonne. The establishment cost of these is high and initial investment is paid back within 6-7 years of the plantation. Energy Technological Institute’s (ETI’s) energy

modelling system376 predicted that bioenergy

generated from 2nd generation biomass feedstocks like miscanthus can be cost-effective means of decarbonizing the UK’s energy future and meet 2050 emissions target.

371 Brandao, M., i Canals, L. M., & Clift, R. (2011). Soil organic carbon changes in the cultivation of energy crops: Implications

for GHG balances and soil quality for use in LCA. Biomass and Bioenergy, 35(6), 2323-2336 372 AN ETI Perspective (Bioenergy crops in the UK), 2016 https://d2umxnkyjne36n.cloudfront.net/insightReports/Perspective-

bioenergy-crops-in-the-UK.pdf?mtime=20161010130635 373 Miscanthus Best Practice Guidelines.

https://www.teagasc.ie/media/website/publications/2011/Miscanthus_Best_Practice_Guidelines.pdf 374 The effects of energy grass plantations on biodiversity. DTI Report: CFP 374/22 375 IACR-Rothamsted, http://adlib.everysite.co.uk/adlib/defra/content.aspx?id=000IL3890W.18LWVYAYCAM3GK 376 Energy System Modelling Environment (ESME) is the internationally peer-reviewed UK’s national energy system design

and planning system.

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Poplar

Poplar is widely grown as short rotation crop (SRC) in the UK. Poplar cultivation grew under the Energy Crops Schemes (ECS) which was part of Rural Development Programme for England until 2013. In 2016 the total area of short rotation crop (poplar and willow) production in England was 2,925 hectares (DEFRA 2016). South East regions in England cultivated the highest area of SRCs (1,068 ha). Yields: The average yield of poplar recorded

in the UK is 8 dry tonnes/ha/yr (Forest

Research, 2003).

377 (Brandao et al., 2011) Brandao, M., i Canals, L. M., & Clift, R. (2011). Soil organic carbon changes in the cultivation of

energy crops: Implications for GHG balances and soil quality for use in LCA. Biomass and Bioenergy, 35(6), 2323-2336 378 Agriculture in the United Kingdom 2018, Department for Environment, Food and Rural Affairs , Department of Agriculture,

Environment and Rural Affairs (Northern Ireland), Welsh Government, Knowledge and Analytical Services and The Scottish Government, Rural and Environment Science and Analytical Services. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/815303/AUK_2018_09jul19.pdf. 379 (Brandao et al., 2011) Brandao, M., i Canals, L. M., & Clift, R. (2011). Soil organic carbon changes in the cultivation of

energy crops: Implications for GHG balances and soil quality for use in LCA. Biomass and Bioenergy, 35(6), 2323-2336.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

UK geoclimatic conditions are suitable. It can grow in a range of soils from heavy clays to sand and in pH of 5.5 to 8.

Complex structure can be broken down with bioprocesses and chemical processes to produce lignin, cellulose and hemicellulose.

It can be easily propagated using plant cuttings and the sowing is not mechanised because the cuttings should have apical bud within 1 cm of the top cutting.

Technological advancement and biorefineries processes can improve the poplar feedstocks’ ability to be utilised for various products at low-cost.

Harvesting is mechanised and harvesting can be in the form of rods, billets and chip.

Sustainability

Profitability

Higher yields and lower GHG emissions compared to 1st-generation crops like

rapeseed.377

In 2018 output of industrial crops like miscanthus, SRCs and other specialty

crops together was £32 million.378

Detrimental impact on soil quality. Net increase in soil organic carbon is very small when

compared with reference system.379

Phytoremediation of contaminated soil,

Poplar, Pencoyd Court Farm, UK Photo credit: geograph .org.uk

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380 Bianconi D, De Paolis M, Agnello A, Lippi D, Pietrini F, Zacchini M, et al. Field-scale rhyzoremediation of a contaminated

soil with hexachlorocyclohexane (HCH) isomers: the potential of poplars for environmental restoration and economical sustainability. 2011:783-94.

rehabilitate the degraded floodplains and slows

desertification.380

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Rapeseed

Rapeseed production in the UK is meeting the domestic use requirement but the domestic production has decreased between 2014-2018. m 113% to 97%.

According to the AHDB381 3.5 t/ha is the maximum

potential yield. Rapeseed grown in UK is used for biodiesel which is highest after the cereal crop wheat. This could be because of its ability to produce more biofuel per tonne of crop. One tonne of rapeseed can produce

429 litres of biodiesel.1

Yields: According to the report Agriculture in the

UK382 t crop yields range from 3.1-3.9 t/ha.

381 AHDB (Agriculture and Horticulture Development Board) 382 DEFRA, 2018 Agriculture in the United Kingdom 2018, Available From

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/815303/AUK_2018_09jul19.pdf

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Suitable for UK geoclimatic conditions- requires a optimum pH level of 6.5.

Primarily used for producing biodiesel but increasing interest in high erucic acid rapeseed (HEAR) varieties which are commercially grown across the UK.

Harvested using different techniques like desiccation, swathing and direct combining depending on the seeds ripening stage. Direct combining is the lowest cost method and seed moisture content is highest at the harvest.

Oleochemical biorefineries are processing erucic acid to produce erucimide in the UK. Similarly, long fatty acid chains, fatty esters and glycerol are extracted from rapeseed to form functional monomers which can be used in lubricants and surfactants.

Rapeseed Field in Cotswold UK, Photo credit: southwestreviews.co.uk/

383 Brandao, M., i Canals, L. M., & Clift, R. (2011). Soil organic carbon changes in the cultivation of energy crops: Implications for GHG

balances and soil quality for use in LCA. Biomass and Bioenergy, 35(6), 2323-2336 384 https://www.sruc.ac.uk/info/120186/novel_and_non-food_crops/173/high_erucic_acid_rapeseed/4 385 DEFRA, 2018 Agriculture in the United Kingdom 2018, Available From

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/815303/AUK_2018_09jul19.pdf [Accessed 1 August, 2019]

Sustainability

Profitability

Detrimental impacts among five selected

crops in the soil quality.383

HEAR’s estimated market price is £30/tonne

according to SRUC.384

GHG emissions from rapeseed is higher compared to other crops. Rapeseed has lower water requirement but requires fertiliser to get the optimum seed yield.

Output from all UK industrial crops in 2018 was £1,052 million out of which rapeseed

contributed £643m million.385

Acts as winter cover crop and supports biodiversity.

Sugar beet

Yields: The average yield for sugar beet is 66.5 - 89.5 t/ha as recorded for England (Agro Business Consultants Ltd, 2019).

386 Curran: a material developed from the extraction of

nanocellulose fibres of root vegetables, primarily from sugar beet pulp, which is a by-product of the sugar industry. Curran® offers exceptional mechanical and rheological properties for numerous applications, such as paints and coatings, inks,

personal care, home care, paper, food, concrete, drilling fluids, composites and other potential applications. https://www.cellucomp.com/about/about-us

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Sugar beet is suitable for UK climate as the optimal daytime temperature required is 15-27°C and night temperature is 4- 10°C for the first 3 months of the plant growth. Optimum soil pH required is 6.5.

Sugar beet grown in UK is mainly for food purposes, but a small portion is used for bioethanol. Sugar beet industry in the UK is optimising their sugar beet’s value chain by looking at possible ways to minimise the waste as well as create a wide range of co-products (like animal-feed, bioelectricity and bioethanol, topsoil and soil condition materials like limex).

Sugar beet has well established mechanization. However, loading of sugar beet for transportation and cleaning are considered labour intensive process of all.

Sugar beet is used for bioethanol production through fermentation process. However, a range of by-products can be extracted from the sugar beet by applying the principles of biorefinery. E.g. molasses, vinasses, sugar beet pulp, betaine.

Curran386 is a cellulose based non-fibre from

sugar beet which is used by Scottish-based company to produce range of products like bio composites, personal care, paints, ink, food etc.

Sugar beet field, UK. Photo credit: www.farminguk.com

387 Based on agreement of British Sugar and NFU Sugar

(Farmers Weekly accessed on 25th July 2019) 388 NNFCC Sugar beet, 2019 389 Agriculture in the United Kingdom 2018, Department for

Environment, Food and Rural Affairs , Department of Agriculture, Environment and Rural Affairs (Northern Ireland),

Welsh Government, Knowledge and Analytical Services and The Scottish Government, Rural and Environment Science and Analytical Services. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/815303/AUK_2018_09jul19.pdf.

Sustainability

Profitability

Sugar beet increases the soil carbon level because a large amount of organic material (leaves, stalks) is returned to the soil after harvesting.

Sugar beet market price is estimated to be

£22.50/tonne in 2018/19.387

GHG emissions from sugar beet cultivation is lower compared to other cereal crops as it requires less fertilizer. GHG emission during sugar beet cultivation happens due to machinery use in land preparation for drilling

seeds and harvesting of the beet388.

Output from all UK industrial crops in 2018 was £1,052 million and out of which the sugar beet

contributed £246 million.389

Sugar beet is a water efficient crop and suitable for intercropping.

It is also a good cover crop and slows down soil erosion. The crop also provides habitat and forage for wildlife and farm birds.

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Lavender Lavender production in the UK is happening at small scale Yields: In average Lavender can produce up to 1000 to 1500 lb of dried buds per acre of land. (Farmers

Weekly)390

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Lavender grows very well in warm, full sun, well-drained soil with pH of 6.5 to 7.5. Lavender is suitable for UK climate because it can also survive in extreme cold conditions and in rocky soils.

Biochemicals and biopharmaceuticals products made from lavender are already produced and sold in the UK.

For large scale farms lavender in the UK is harvested using machines built for the purpose and small-scale farms harvest it using bypass pruners.

Sustainability

Profitability

Lavender requires moderate amount of inputs (fertilizers and pesticides) depending on the land used for the production.

Lavender offers opportunities for good profitability.

390 https://www.fwi.co.uk/business/business-management/best-cash-crops-for-small-farms

Lavender field, Darenth Valley UK, Photo credit: www.farmlocations.co.uk

OPPORTUNITIES

Current Markets & Industry of the selected crops Miscanthus Miscanthus is a low carbon crop with high yielding capacity, low input requirement and low GHG emissions, therefore making it suitable crop to meet increasing demand from biobased industry. Miscanthus is already used for biofuel and bioenergy in the UK but it needs to keep up with the increasing demand of energy industry. The UK has the third largest operating capacity of the combustion plants across Europe. Large combustion plants make the major percentage of the installation in the UK. If you look at the trends of fuel input data of the EU-28 countries, we can see that the UK has the largest biomass input of 19%391. This shows that UK needs to keep up with the demand of biomass feedstock for energy industry.

The national targets set out in the UK Bioeconomy Strategy to double the size of the UK bioeconomy from £220bn in 2014 to £440bn by 2030 opens opportunities to increase the market of miscanthus based building materials. The cost competitiveness of the miscanthus based value chains for insulation building materials can increased by reducing the distance between the production site the processing plants. There are research and technological innovations happening rapidly in the UK to breakdown the complex structure of lignocellulosic crops for its use in biopharmaceutical, agrochemical and coating industries. Agripellets limited is Warwickshire based company which produces miscanthus pellets for bioenergy purposes.

Poplar Poplar is a suitable feedstock to meet the growing demand of biofuel industry take advantage of the opportunity created by Renewable energy Directive II 2009/EC/28 and the ILUC Directive (EU) 2015/1513. UK has cap on conventional first-generation biofuels starting from 2020 at 4% up to 2% in 2032. This creates an opportunity for second generation feedstock like Poplar to replace the first-generation feedstocks to contribute to reach the targets set for 2020 and 2032 in transport sector. 72% of the total biofuel consumption in 2014 (1016 ktoe) is from advanced biofuels (wastes, 2nd generation energy crops etc) and rest 28% is from conventional, first generation biofuel (for example from sugar beet and rapeseed etc). Poplar offers the possibility of diversifying the feedstock choices for bioenergy and second-generation advanced biofuels and to meet the targets. Poplar has the potential to contribute in the UK Clean Growth Strategy by reducing the dependence on non-renewable and unsustainable resources and mitigating and adapting to climate change by moving towards cleaner fuel options. High establishment cost of the poplar can be subsidized by the government and industry support mechanism. Global biopolymer market is growing, making the price of the plant-based biopolymers more competitive compared to petrochemical based. Cellulose based biopolymers from poplar are approved for food contact and are also certified for it biodegradability. This they can be used for range of food packaging applications.

391 Reported data on large combustion plants covered by Directive 2001/80/EC

provided by DG-ENV and EEA.

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For example Packaging Chimp392 is a small company providing eco-packaging options for consumers which

are biodegradable and compostable. The annual turnover of UK industrial biotechnology and bioenergy sectors is estimated to increase to £8.6bn

by 2035 393 thus creating opportunities of market uptake for feedstocks like poplar. In the UK technological

advancement in the pretreatment processes and supply of low-cost feedstocks will open opportunities for bio-based chemicals to enter into the bioeconomy, however at present the UK has limited capabilities test

and scale up the pretreatment technologies.394

There are the 10 top bio-based chemicals395 which are recognized as commercially viable biochemicals based

on UK ‘s position to take advantage of these chemicals’ functionality and sustainability in the context of its market opportunities. Lactic acid is used for production of biodegradable plastics PLA in the UK. Cellulac is a successful UK based company producing biodegradable plastics (PLA) and are dedicated to reduce toxic plastic, CO2 emissions, increase cost competitiveness of biodegradable plastics to petrochemical based plastics. Rapeseed In 2018, 97% of the total new supply of rapeseed to the UK is produced in the UK and only a small percentage

if imported from other EU countries.396 Rapeseed share the highest percentage, more than 50% of industrial

crops grown in the UK which means rapeseed is always extensively used in the UK and major portion of it is used as a biodiesel. At present HEAR rapeseed are collected from small-scale producers, which is then crushed and processed in large-scale.

In 2018, plant biomass contributes a highest share of RES-E in the UK which is 10.4% of the total share.397

And 4.9% of the total RES-T came from liquid biofuels- biodiesel and bioethanol in 2017.As biodiesel production from conventional crops are capped, the rapeseed has opportunities to be mainly used for oleochemicals and energy for local rural communities.

Thermobile heater398 is an example of small-scale innovation of technology. It is a space heater which can

run on rapeseed oil to produce heat. However small-scale technologies like this needs support to increase their market.

392 https://www.packagingchimp.co.uk/eco-packaging.html 393 BBSRC, Biotech Britain (2015): www.bbsrc.ac.uk/documents/capital-economics-biotech-britain-july-2015/ 394 UK Top Bio-based Chemicals Opportunities, 2017, E4tech (UK) Ltd for LBNet. 395 UK Top Bio-based Chemicals Opportunities, 2017, E4tech (UK) Ltd for LBNet. List of 10 top bio-based chemicals -Lactic acid, 2,5-

Furandicarboxylic acid (FDCA), Levoglucosenone, Hydroxymethyl furfural (HMF), Muconic acid, Itaconic acid, 1,3-Butanediol, Glucaric acid, Levulinic acid, n-Butanol 396 Agriculture in the UK, 2018. 397 Data source: Renewable Electricity capacity generation (ET6.1) https://www.gov.uk/government/statistics/energy-trends-section-6-renewables 398 https://www.industrial-equipment.co.uk/online-tools-store/r096-6105-biofuel-waste-oil-burner-info.html

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Sugar beet Sugar beet industry is well established in the UK and is used for bioethanol. UK can use this experience with sugar beet production and processing to develop their biodegradable polymers uses and expand its market. Sugar beet is found to outcompete the oil crops in their application for biochemicals and biomaterials when assessed based on their non-renewable energy use, greenhouse gas

emissions and land use impacts.399 This makes sugar beet

feedstock attractive commodity for biobased industries and to contribute in the larger UK Bioeconomy Strategy objectives like reducing the dependence on non-renewable and unsustainable resources and mitigating and adapting to climate change. Lavender

In the UK lavender production as well as its products have niche market. Small-scale farmers produce their own independent line of products and there is no established large market infrastructure

for lavender product. Jersey Lavender400 and Cotswold

Lavender 401 are example of family run business who are

growing, harvest and distilling lavender to produce range of cosmetics, toiletries and perfume products. These small business are also creating economic returns from the tourist visiting farms every season. Thus, there is an opportunity for Lavender to contribute two key objectives of the European Bioeconomy objectives of managing natural resource sustainably and strengthen economy by creating new jobs. Increasing interest

from biobased industries (cosmetics, biochemical, pharmaceutical) to manufacture products which was organic and bio-based also creates opportunities for Lavender to be a feedstock which can supply essential oils necessary for the growing market. As the global interest is rising in organic products and green products small-scale farms like that of lavender can capitalise on these niche demand. There are funding opportunities for organic farming under CAP- UK RDPs which can be used for lavender farming in more sustainable and green way.

Supporting Policies The UK has many supporting policies in place for the development of value chains based on these selected NFCs. The UK has National Renewable Energy Action Plan with legally binding 2020 targets of 15% of energy from renewable energy sources and carbon reduction target of 34% by 2020. The Renewable Transport Fuels Obligation (RTFO) aims to increase the 10% share of renewable by 2020. Similarly, the EU Fuel Quality Directive (FQD) was transcribed into UK Motor Fuel GHG Emissions Reporting Regulations 2012 which requires UK to reduce average GHG by 6% in 2020 as a mandatory obligation on UK fuel suppliers. Under NREAP the three sectors (electricity, heat and transport) have different renewable energy trajectory and targets set for 2020. RES-E: In the UK, various policy mechanisms (regulatory and financial tools) to support RES-E. Renewables Obligation Order (RO) regulates, and Certificates (ROCs) incentivise, large scale renewable electricity generation. Contracts-for-Difference - incentives for large scale renewable electricity (replacing ROCs). Feed-in tariff system incentivises small scale electricity generation. Similarly, Quota obligation system, Green

399 Bos HL, Meesters KP, Conijn SG, Corré WJ, Patel MKJIC, Products. Comparing biobased products from oil crops versus sugar

crops with regard to non-renewable energy use, GHG emissions and land use. 2016;84:366-74. 400 https://jerseylavender.co.uk/about-us/ 401 https://www.cotswoldlavender.co.uk/

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certificate system, Carbon Price Floor (CPF), Tax exemption mechanisms are also in place for renewable sources for electricity. RES-H&C: In the UK, a subsidy and price-based mechanisms are available for supporting RES-H installations. The Renewable Heat Incentive (RHI) is the Feed-in-Tariff for renewable heat for both domestic and non-domestic sectors. The budget for RHI is increase from £430 million in 2015/16 to £1.15 billion in 2020/21. R RES-T: In the UK, a obligatory quota system, Renewable Transport Fuels Obligation Order (RTFO) regulates, and Certificates (RTFCs) incentivise, suppliers to include increasing levels of biofuels in the road transport fuel mix. All these national targets and sector specific targets and pathways encourages the production of resource efficient energy crops which can uptake the market of both bioenergy and bio-based products. On analyzing the existing UK policies in place to mobilize the biomass, we can see below that UK has policies in place to support the use of energy crops for biofuel and bioenergy productions however there is a huge gap of policies in place to promote the use of biomass for non-energy applications. The UK Clean Growth Strategy402 published in 2017 presents strategy to decarbonize all sectors of UK. The 2032 pathway is one of the strategies presented which will focus on energy consumption change across the whole economy. Projections under both scenarios of existing policy and the UK’s 2032 pathway we can see that bioenergy consumption increases by 28% and 29% by 2032. This shows the existing policies are promoting the mobilization of biomass, which however can be improved in order to increase percentage share of bioenergy consumption.

Bioeconomy Industrial Strategy403 for 2030 focus on efficient use of resources and is considered as

important step to achieve clean growth. Therefore, selecting crops which are efficient in resources use (inputs like water, nutrients, fertilizer, pesticides) is first step towards developing a value chain which is resource efficient. All selected 5 crops are good in resource use efficiency thus making them suitable choices to achieve the industrial strategy. All four UK regions have the Common Agriculture Policy - England, Northern Ireland, Scotland and Wales and allocated budget for Rural Development Programmes (RDPs). The uptake of production of the NFCs, their processing and market development for the bio-based products from these NFCs can be supported by the suitable funding allocated under different priority areas. The United Kingdom is recognized as the innovation leader under S3 platform and they are focusing on these priority areas in their strategy404 : Manufacturing & industry, Energy production & distribution, Human health & social work activities, Sustainable innovation and Services. European Structural and Investment Funds (ESI) for year 2014-2020 has a budget of 454 billion under which UK European Regional Development Fund (ERDF)405 has the largest share of 5.53 billion Euro and there funding priorities are:

• Strengthen research, technological development and innovation (22% of ERDF support)

• Enhance the competitiveness of small and medium-sized enterprises (39% of ERDF support)

• Support the shift towards a low-carbon economy in all sectors (22% of ERDF support). UK’s ESI fund main priorities are to build low-carbon environmental technologies, good and services, energy efficiency, climate change policies and sustainable land-use management through agricultural and environment actions among others. These are great opportunities for the NFCs mobilization as a low-carbon, energy efficiency biomass feedstock options for bioeconomy. The UK priorities areas and funding eligibility for ERDF and ESF (European Social Fund) is different based on their categorization as least developed, transition and more developed regions.

402 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/700496/clean-growth-strategy-

correction-april-2018.pdf 403 UK Industrial Strategy for Growing the Bioeconomy

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/761856/181205_BEIS_Growing_the_Bioeconomy__Web_SP_.pdf 404 https://ec.europa.eu/regional_policy/en/information/publications/factsheets/2017/smart-specialisation-strengthening-innovation-in-united-kingdom 405 https://ec.europa.eu/regional_policy/EN/atlas/programmes/2014-2020/united-kingdom/2014uk16rfop001

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Production Conversion Distribution End-use

CAP: British Rural Development Programmes CAP England; CAP Northern Ireland; CAP

Scotland; CAP Wales Products Policy

Woodlands Grant

Scheme

Biofuel quota

Energy Act

Tax exemption for

RES_E

Renewable Heat Incentive

Feed-in Tariffs for Electricity

CfD (Contract for Difference) scheme

Industrial Emissions Directive

Renewable Obligation for England, Wales,

Northern Ireland and Scotland

Low-carbon heating systems post 2025.

Microgeneration Certification Scheme (MCS) for RES Installations

Clean Air Act Low-carbon heating

systems post 2025.

National Energy Efficiency

EU Emissions Trading System (EU-

ETS)2021-2030

UK Renewable Energy Strategy; UK Clean Growth Strategy; Climate Change Act 2019; Carbon Plan; National emissions target under the EU Effort Sharing Decision (406/2009/EC) The United

Kingdom Biorefinery Roadmap for Scotland; National Plan for Industrial Biotechnology

Bioeconomy Industrial Strategy406 for 2030 focus on efficient use of resources and is considered as

important step to achieve clean growth. Therefore, selecting crops which are efficient in resources use (inputs like water, nutrients, fertilizer, pesticides) is first step towards developing a value chain which is resource efficient. All selected 5 crops are good in resource use efficiency thus making them suitable choices to achieve the industrial strategy. All four UK regions have the Common Agriculture Policy - England, Northern Ireland, Scotland and Wales and allocated budget for Rural Development Programmes (RDPs). The uptake of production of the NFCs, their processing and market development for the bio-based products from these NFCs can be supported by the suitable funding allocated under different priority areas. The United Kingdom is recognized as the innovation leader under S3 platform and they are focusing on these priority areas in their strategy407 : Manufacturing & industry, Energy production & distribution, Human health & social work activities, Sustainable innovation and Services. European Structural and Investment

406 UK Industrial Strategy for Growing the Bioeconomy

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/761856/181205_BEIS_Growing_the_Bioeconomy__Web_SP_.pdf 407 https://ec.europa.eu/regional_policy/en/information/publications/factsheets/2017/smart-specialisation-strengthening-innovation-in-united-kingdom

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Funds (ESI) for year 2014-2020 has a budget of 454 billion under which UK European Regional Development Fund (ERDF)408 has the largest share of 5.53 billion Euro and there funding priorities are:

• Strengthen research, technological development and innovation (22% of ERDF support)

• Enhance the competitiveness of small and medium-sized enterprises (39% of ERDF support)

• Support the shift towards a low-carbon economy in all sectors (22% of ERDF support). UK’s ESI fund main priorities are to build low-carbon environmental technologies, good and services, energy efficiency, climate change policies and sustainable land-use management through agricultural and environment actions among others. These are great opportunities for the NFCs mobilization as a low-carbon, energy efficiency biomass feedstock options for bioeconomy. The UK priorities areas and funding eligibility for ERDF and ESF (European Social Fund) is different based on their categorization as least developed, transition and more developed regions.

In addition to these existing policies and strategies to promote the renewable source of energy and non-energy end-uses there are research and technology funding bodies, finance companies and technology commercialisation centres, networks and clusters which are working together to promote the UK bioeconomy by supporting the biotechnological developments.

408 https://ec.europa.eu/regional_policy/EN/atlas/programmes/2014-2020/united-kingdom/2014uk16rfop001

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ANNEX Table 1. Country Indicators UK

410 https://www.gov.uk/government/statistical-data-sets/agriculture-in-the-united-kingdom (Accessed on 15th July, 2019) : for the period of 2014-2020 (https://ec.europa.eu/agriculture/rural-

development-2014-2020/country-files_en).

Indicators United Kingdom

EU-28 average Assessment

1. Population and Demographics

Total Population 65

Million

18 Million

Only 3.9% of the farmers are young farmers which means more young people from rural areas can be supported to join farming industry

Population living in rural area

2.4 %

Young Farmers (<35 yrs) 3.9 % 5.9 %

2. Land use indicators

Total Area 248530 km² km² 30.41% of the total land is marginal area which means there is availability of land

Agricultural Area 71.30 % without competition with food production.409

Forest Area 13 %

Marginal Land (D2.1 MAGIC)

106508 km²

3. Farming Sector

Farm Size

Large-scale: 22.4%

>100 ha

16.1

ha 6 times higher farm size than EU average. Large scale farm size is an advantage to open biorefineries and processing plant on the site to reduce the storage and logistics cost. Large scale farm size also reduces the t

Industrial crops production

7.8 %

Organic Agriculture 576

1000 ha

Total (fully organic and in conversion) organic farming land in 2013410.

Total employment supported by Agriculture

1.1 % 4.7 % Lower contribution to employment compared to EU average. Potential to increase that by increasing the jobs by supporting the agricultural value chains.

Farm Structure

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4. RDPs Funding (2014-2020)

Total Budget 7.2

€ billion

Agriculture Environment Climate (AEC)

3310 (45%)

€ million

Support measures in place to support sustainable agricultural ecosystem

Area of Natural Constraints (ANC)

575* (8%) € million

*England and Wales have no ANC funds

Organic Farming 53.5 (0.74%)

€ million

Table 2. Strengths of selected five NFCs

Criteria Indicators Miscanthus Poplar Sugar beet Rapeseed (HEAR) Lavender

a) Productivity and ability to be grow at large scale

Ag

ron

om

ic

Req

uir

em

en

ts

Geoclimatic conditions

Availability of Propagation materials

Availability of mechanisation

Crop Yield

b) Ability to produce feedstock for multiple markets

Recognised interest for multiple end-uses

c) i) Sustainability (socio-ecological)

En

vir

on

men

tal Im

pacts

Soil carbon level

GHG emissions from Ag.

Ecological impacts Inputs requirements Pest and Diseases

So

cia

l Im pa

ct

s

Employment and jobs

c) ii) Profitability

Eco

no

mic

Imp

acts

Production costs

Profit margin for farmers

Current market price

TR

L>

7

; TR

L 5

-7

;TR

L 3

-5; T

RL

<3

Table 3. Indicators and rationale of sélection

Criteria Indicators

Defintion Rationale of Selection Units

a)

Pro

du

cti

vit

y a

nd

ab

ilit

y t

o b

e g

row

at

larg

e s

cale

Geoclimatic conditions Soil (clay content, texture, pH level, porosity)

and climatic conditions affect the crop production process.

Suitable soil and climatic conditions are important factors to consider when the land is being assessed for growing industrial crops.

Descriptive

Availability of Propagation materials

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

The availability of propagation materials (i.e., seeds, rhizomes, etc.) at commercial scale is one a key factor for a crop to be near-to-

practice. indicates readily available

propagation material, indicates that the

genetic material is generally available, but it is regulated by commercial agreements with breeders and seed companies linked to specific end-uses.

TRL 1-9

Availability of mechanisation

Technological readiness level (TRL) of the crop production is measured in a scale 1 to 9. TRL 1 is the lowest, indicating the earliest stage of development for a new technology, and TRL 9 is the highest.

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

This indicator will help farmers understand the level of innovation regarding crop cultivation and land management practices. This deliverable also follows the deliverable D1.2 TRL assessment method as follows. TRL >7 for crops which are already produced at the industrial scale and meet the commercial demands of the bio-based industries. TRL is between 5-7 when the crop production is the at the demo scale. TRL 3-5 is for crops which are moving from research scale to production development stage. Similarly, TRL<3 is for crops which are undergoing basic research,

TRL 1-9

Crop Yield Crop yield is measured per hectare of cultivated area.

The indicator is crucial for farmers and entrepreneurs to make decision on choice of crops for cultivation.

Tonne/ha/yr

b)

Ab

ilit

y t

o

pro

du

ce

feed

sto

ck f

or

mu

ltip

le m

ark

ets

Recognised interest for multiple end-uses

It identifies possible industrial end-uses of the feedstock. This indicator helps us understand the

possibility of market expansion and

ability of the crop to fulfill the demand of the bio-economy as it expands.

In global market (e.g. energy/fuels) there are emerging opportunities find possible end-uses of NFCs and consumer demand for these end-uses. Therefore, it is important to understand the potential of production and trade these feedstocks as the demand rises. Conversion and quality of the feedstock

Descriptive

c)

i) S

us

tain

ab

ilit

y (

so

cio

-eco

log

ical)

Soil carbon level (SOC)

It is the indicator which estimates the total organic carbon content in arable soils.

This indicator depends on the inherent quality of the soil but also depend on the type of plant/crop cover, land management practices/ cultivation practices, water holding and carbon exchange capacity of the crop, drainage status of the soil and weather conditions.

Total SOC is measured as Megatonnes (Mt); Mean SOC concentration in arable land: g/kg.

Greenhouse has emissions from production

This indicator measures GHG emission from agriculture and agriculture soils.

This indicator depends on the N2 fertilizer used, crop choices, management practices and fossil fuel used for production

tonnes of CO2

equivalent

Water abstraction/ Water use efficiency

It refers to the volume of water applied to soils for irrigation purposes.

Water use efficiency (WUE) gives information on water abstraction to produce crops.

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Fertiliser requirements

It refers to the nitrogen fertilizer used or nitrogen use efficiency (NUE)

This indicator depends on the N2 fertilizer used.

Kg- N/ha/yr or Kg-P/ha/yr

Pesticide and herbicide requirements

Resistance is the ability of a plant variety to restrict the growth and development of a specified pathogen/pest or the damage they cause when compared to susceptible plant varieties under similar environmental conditions and pathogen/pest pressure.

This indicator helps in understanding the resistance capacity of a crop against incidence of pest and diseases. The higher tolerance of crops makes them suitable and better choices. It means less inputs required, which means production costs is lower and the soil and water quality is also not compromised by the surface run off or ground water leaching.

Descriptive

Employment Full-time- employment (FTE) per value chian This indicator helps us estimate the contribution of a value chain in the form of FTE.

Percentage or Number of FTE per tonne of biomass

c)

ii)

Pro

fita

bilit

y

Production Costs

Production costs is the total costs for farmers to produce the crop

The total costs of production of a crop can be calculated by sum of variable costs (costs of inputs, labour cost) as well as fixed costs (land costs, overhead costs like farm level taxes and permits, depreciation costs of capital owned by farm equipment and buildings)

Euro/tonne

Net profit margin for farmers

The gross margin for a crop can be calculated by deducting the variable costs from the gross farm income from a crop per cropping season or per year. In order to measure the net farm profit margin, the calculation should include the capital costs (land, buildings, machinery, irrigation equipment ets) and fixed costs (land, building, machinery depreciation, administration, taxes etc).

The net profit margin is a decisive tool for farmers in farm management, estimating the returns and profit from production of a particular crop. This figure can also help in assess the performance of the crop per season and help in identifying where the farm management can be improved or streamlined.

Euro per year (or per cropping season)

Current market price

The market price for the crop varies during a year or per crop season, it decreases as supply increases and vice versa.

This indicator helps farmer understand the market and the potential profit they can make from the crop production.

Euro/tonne

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187

D1.3 Strengths and opportunities of near-to-practice non-food crops (NFCs)

in Greece

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Deliverable Title: D1.3 Strengths and Opportunities of near to practice non-food crops (NFCs) in Greece Deliverable Lead: Imperial College London (ICL) Related Work package: WP1 Author(s): CRES, ICL Communication level: PU Public PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) Grant Agreement Number: 773501 Programme: Horizon 2020 Start date of Project: November 2017 Duration: 40 months Project coordinator: CRES

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Selected near-to-practice NFCs in Greece Non-Food Crops (NFCs) have been cultivated at experimental, demonstration and commercial level in Greece. The share industrial crop is 8.6% of the total agricultural output for the 2017-2019

average. 411

Switchgrass, camelina, hemp, castor and lupin are selected in PANACEA as near-to-practice NFCs for Greece based on the presence of these crops in Greek agriculture as food crops with non-food uses or as non-food crops. These selected crops have good potential for sustainable production and there is recognized interest from bio-based industries to use them as feedstock for bioenergy and non-energy applications. Switchgrass has been cultivated in Greece for more than 20 years and there is substantial information for its agronomic practices. Industrial hemp is an old-new crop for Greece since it used to be grown for its fiber stems till the 70s. In 2016 the crop was re-introduced to

farmers and now its area of its cultivation is around 300 ha. Camelina experiments in Greece (conducted by COSMOS Horizon 2020 project) have shown that the crop can be grown both as winter and spring crop. Lupin is an old-new crop for Greece. The area of its cultivation had been gradually described the last decades but the last couple of years a gradually increased interest had been recorded by some industries. Castor had been tested for several years in fields throughout Greece. Although there is a growing interest for the market for castor its mechanical cultivation has not yet been well organised. This report provides facts and figures for selected NFCs in Greece, assesses their strengths, and provides an outlook of opportunities in policy and industry for their future market uptake.

411 Based on Factsheet Greece https://ec.europa.eu/info/sites/info/files/food-farming-

fisheries/farming/documents/agri-statistical-factsheet-el_en.pdf (Accessed on July 2020)

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STRENGTHS

All selected NFCs have been cultivated in Greece at different scale so the agronomic practices are well established. The strengths for each selected crop are assessed for:

a) productivity and ability to be grown at large-scale using existing machinery

b) ability to produce feedstock for multiple markets

c) sustainability and profitability

A set of indicators from Common Agricultural

Policy (CAP)412 and from the project deliverable

D1.2413 has been used for the assessment. The

detailed definition of the indicators and the rationale for their selection can be found in the Annex Table 3. The rationale for choosing CAP related indicators is because non-food crops are or will be agricultural commodities and any planning, regulation and support will be developed under the framework of the Common Agricultural policy at EU or national level.

412 CAP Impact Indicators, Available from https://ec.europa.eu/agriculture/sites/agriculture/files/cap-indicators/impact/2016-impact-indicators-fiches.pdf

413 PANACEA Deliverable D1.2 Inventory of near-to-practice NFC Available from http://www.panacea-h2020.eu/wp-content/uploads/2019/05/D1.2-Inventory-of-near-to-practice-NFC.pdf

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Camelina Camelina has been cultivated for oil in Europe for many years but it gained interest for industrial scale production because of high oil content of 35-38%. Experiments in Greece (conducted by COSMOS Horizon 2020 project; 2015-19) have shown that camelina can be grown both as winter and spring crop.

Yields: Recorded seed yields for camelina is between 1.8 to 2.2 t/ha d.m. seeds based on study

done on different genotypes.414 Yield results are

also substantiated by results from COSMOS project.

414 Zanetti, F., Eynck, C., Christou, M., Krzyżaniak, M., Righini, D., Alexopoulou, E., ... & Monti, A. (2017). Agronomic performance and seed quality attributes of Camelina (Camelina sativa L. crantz) in multi-environment trials across Europe and Canada. Industrial Crops and Products, 107, 602-608. 415 Gugel, R. K., & Falk, K. C. (2006). Agronomic and seed quality evaluation of Camelina sativa in western Canada. Canadian journal of plant science, 86(4), 1047-1058./ Séguin-Swartz, G., Eynck, C., Gugel, R. K., Strelkov, S. E., Olivier, C. Y., Li, J. L., & Falk, K. C. (2009). Diseases of Camelina sativa (false flax). Canadian Journal of Plant Pathology, 31(4), 375-386 416 http://cosmos-h2020.eu/#media 417 Zanetti, F., Eynck, C., Christou, M., Krzyżaniak, M., Righini, D., Alexopoulou, E., ... & Monti, A. (2017). Agronomic performance and seed quality attributes of Camelina (Camelina sativa L. crantz) in multi-environment trials across Europe and Canada. Industrial Crops and Products, 107, 602-608.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Greek geoclimatic conditions are suitable for camelina. Camelina has the ability to be grown in low-input farming systems. Propagation is easy with seeds. Camelina is a low maintenance crop, compared to other oilseed crops, it is tolerant to insects, and diseases therefore it

does not require pesticides.415

It grows well in rotation with legumes and cereals therefore it can be easily integrated into current agricultural production systems as intercropping, double cropping, crop rotations.

There are research and demonstration

projects (like COSMOS)416 which supported

the research of use of camelina into oleochemical industry. Camelina has potential uses for oleochemical industry because it is rich in oleic (14-16%), linoleic (15-23%), linolenic (31–40%), and gondoic) (12–15%) acids. The protein content of

camelina seeds range from 23-27% d.m.417

Linolenic acid content were noted different in the warmest climate of Greece, where this parameter was determined at 28.7% on average.

Camelina, Greece

Photo credit: CRES ; COSMOS project

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Sustainability

Profitability

The average amount of energy used for the production of 1 Mg of camelina seeds is 17 GJ Mg−1 and the average energy gain from production of camelina is

56.33 GJ ha−1418 which makes it a

sustainable crop option. Nitrogen requirement is low, 75 kg N/ha are sufficient amount to meet the nitrogen needs of the crop.

Camelina is considered as a profitable alternative to reduce dependence on imports of palm oil but more research is required to understand the potential profit

(COSMOS project).419

Camelina can be used as source for low-ILUC biofuels as it can be grown in marginal land.

418 Stolarski, M. J., Krzyżaniak, M., Kwiatkowski, J., Tworkowski, J., & Szczukowski, S. (2018). Energy and economic efficiency of camelina and crambe biomass production on a large-scale farm in north-eastern Poland. Energy, 150, 770-780 419 https://medium.com/@michaeleggleston_25780/cosmos-the-future-of-plant-oil-cbffa3cf3b23

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Hemp The cultivation of hemp was abandoned in Greece in late 1950s but in 2016 the cultivation started again with a revised legal framework. In central Greece hemp is grown for their stems while in northern Greece they are grown for seeds. Since 2016 a number of varieties had been grown in Greece: Futura 75, Felina, Fedora, Santhica, etc. Initially, the interest was focused on varieties for fiber production and later on a growing interest was recorded for varieties for seed production. Yield: In Greece the stem yields production came up to 15 t/ha. It should be noted that the cultivation protocol has not properly organised and thus large variation in terms of yields (stems and/or seeds) had been recorded. The area of industrial hemp cultivation in 2019 came up to 300 ha.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

The cultivation practices of hemp are well known; however harvesting can be further mechanised with innovative technologies.

Hemp is a multipurpose crop. In Greece it is currently grown for its flowers (tea, CBD, etc.) and for its seeds (oil production, etc.). The use of hemp fibers still requires additional research and development.

Hemp cultivation in Greece requires irrigation.

Sustainability

Profitability

Hemp can be grown for phytoremediation purposes in land highly polluted with heavy metals. In Greece, the crop can be grown in areas that have been released from lignite mining.

Due to the lack of optimised harvesting technologies and well-established market the crop profitability is still uncertain. It is however a multi-purpose crop and can be utilised for high value added bioproducts, so if the supply chain is well organised and the whole plant is utilised they can be profitable crops for farmers.

Hemp, Greece Photo Credit: CRES/BECOOL project

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Switchgrass

Switchgrass420 is grown in experimental and

demonstration trials for the last 20 years in Greece and most studies have shown that lowland varieties are

more productive than the upland varieties421.

Yield: Dry mean biomass yields of 10-12 tons ha−1 have been reported in a study of 17-years period where switchgrass has been established on marginal area with shallow soil depth14. The crop, like all perennial grasses, reached its maximum yields from the 2nd to the 5th growing year and then dry yields of 20 t/ha can be achieved.

420 Elbersen, H. W., Poppens, R. P., & Bakker, R. R. C. (2013). Switchgrass (Panicum virgatum L.): a perennial biomass grass for efficient production of feedstock for the biobased economy. NL Agency. 421 Alexopoulou, E., Monti, A., Elbersen, H. W., Zegada-Lizarazu, W., Millioni, D., Scordia, D., ... & Christou, M. (2018). Switchgrass: From Production to End Use. In Perennial Grasses for Bioenergy and Bioproducts (pp. 61-105). Academic Press.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Cultivation of switchgrass is easy as it can be established by seeds and it can be adapted to a wide range of climatic conditions and soils. Switchgrass can be placed into two distinct ecotypes: upland and lowland. Upland ecotypes are better adapted to the drier and colder habitats, while lowland ones tend to thrive in warmer, wetter habitats. Alamo, Kanlow, and Pangburn are considered promising low land varieties. Harvesting is done with haying equipment.

Switchgrass is considered suitable for bioenergy production through thermochemical and biochemical conversion processes. It is excellent low-cost feedstock for cellulosic ethanol14, direct combustion for heat and electricity, gasification and pyrolysis It is also suitable for bioproducts and biomaterials.

Sustainability

Profitability

Cover crop for soil conservation, intercropped with sugar beet for land use efficiency and for phytoremediation.

It is low-cost feedstock making it a profitable option for biofuels.

Low input crops with high water use efficiency

(Eichelmann et al., 2016).

Low cost feedstock which has potential to lower GHG emission when grown on marginal lands, therefore can be source for low ILUC biofuels.

Switchgrass, Greece Photo Credit: CRES

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Castor

Castor is well suited crop for climatic conditions of Greece and has good potential for the chemical industry. Castor seeds contains 50% oil and about 80% ricin oleic fatty acid, which has many applications in the bio-based industry.

Yield: A range of varieties and hybrids (imported) have been tested and seed yields is recorded 3-5 t/ha. So far, the mechanical cultivation of the crop has not yet organized. Emphasis, is being given to mechanical harvesting of the crop.

422 http://www.oilseedcrops.org/castor-bean/. 423 Xue, X., Mai, W., Zhao, Z., Zhang, K., & Tian, C. (2017). Optimized nitrogen fertilizer application enhances absorption of soil nitrogen

and yield of castor with drip irrigation under mulch film. Industrial crops and products, 95, 156-162.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Castor can grow in a wide range of soils and climatic conditions. For optimum high yield castor

requires 20.6 – 24.7 cm/ha water annually. 422

Castor is resistant to drought and requires optimal nitrogen dose of 300 Kg N/ha for highest

yield.423

Additional research is required to improve the mechanical harvest of the seed as this would improve the annual yield.

Castor is an industrial oilseed crop because of its high seed oil content. The importance of castor oil arises from its richness (80%) in ricinoleic acid (12-hydroxy 9-octadecenoic acid). Castor oil has numerous chemical and medicinal applications. It is mainly used for cosmetic, pharmaceutical, paints, resins, anticorrosive, emulsifiers, surfactant, hydraulic fluids, bio lubricants, polyurethanes, PVC, nylon etc. The seed meal can also be used for animal-feeding as it has high protein content.

Sustainability

Profitability

Castor has ability for carbon sequestration, phytoremediation and high energy use efficiency.

Castor has potential to be profitable crop because of its multiple end-uses and interest from the European chemical industry for castor oil as it is a source of hydroxylated fatty acid.

Castor, Greece Photo Credit: CRES

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Lupin

Lupin crop is mainly cultivated in south Greece and it is a minor crop in other areas of the country.

Yield: Yield recorded under LIBBIO project424 study is 3-4 ton/ha and recorded yield in study done by the Julius Kühn-Institut (JKI) Federal Research is 4-7 ton/ha.425 Besides the lupin seed, there is also green biomass production of up to 16 ton dry matter/ha. Lupin is seen as potential source of biomass to meet the increasing need of biomass in Europe

424 https://cordis.europa.eu/project/id/720726 425 https://www.seemla.eu/wp-content/uploads/2018/12/Rob-van-Haren-Irmgard-Starmann_LIBBIO.pdf

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Andes lupin can be grown in north-central Europe in summer and in Mediterranean Europe in winter. The crop grows well in marginal lands due to its ability to fix nitrogen, mobilise soil phosphate and they require minimum inputs. Improved varieties of Lupinus mutabilis which is more suitable to climatic conditions of Greece can increase its yield (LIBBIO Project). Mechanical harvesting of the lupin and improved varieties of seeds for castor can yield better yields in pedoclimatic conditions.

Lupin seeds has high (20%) oil content, protein (40%) and carbohydrates (oligosaccharides) and can be used through optimised processes to produce different high added value products for consumers e.g. high nutrient content foods, anti-aging cosmetics, new biomaterials.

Lupin bioactive components are used in cosmetics and anti-aging creams (LIBBIO project). It can also be used for emulsification, stabilization and coloring agent in food industry.

Sustainability

Lupin also has ecological benefits through prevention of soil-erosion, increase soil carbon sequestration and nitrogen fixing properties.

Lupin can be grown as rotational cover crop with conventional crop thus improves the land use efficiency. Lupin can also reclaim volcanic soil and has nitrogen fixing property.

Profitability Improved varieties of Lupin and mechanical harvesting can be profitable.

Lupin, Greece

Photo Credit: LIBBIO project, Andean Lupin

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OPPORTUNITIES

Current Markets & Industry of the selected Non Food Crops In 2013 hemp cultivation was legalized in Greece under the Greek Law No. 4139/2013 which offered a progressive view on cannabis regulation. The first cultivation licenses were granted by Greek authorities in 2016. In spite of the existing regulations and growing interest from investors hemp cultivation is still facing difficulties in Greece because of regulatory ambiguity of CBD and THC products. A primary obstacle is the

lack of legislation for regulation of THC limits in food and cosmetics426. With constructive regulations in place

Hemp is seen a potential plant which can revitalize the Greek economy.427

Greek CBD Shop428 sells online a range of high-quality CBD products which

are produced from hemp grown at farm in Greece. The online market is supported by a consulting company called the New Boost Greece which helps

in product development to branding to wholesale to retailing. They are also selling organic hemp seeds, flowers and even biomass as a commodity to the business partners for further processing. COSMOS project is a Horizon 2020 research project focused on wide range of technologies, hemp oil seed breeding and genetics to optimize the yield and oil content, oil extraction and fractionation and conversion of medium chain fatty acids to

polymer building blocks for oleo chemistry industry end uses. Similarly, project OPTIMA429, funded by the

Seventh Framework Programme supported the research on suitability of switchgrass cultivation on marginal lands (soil salinization, water limitation, steep slope and contaminated soils) in Mediterranean region and evaluate the industrial production of bioenergy and other value added bioproducts.

LIBBIO Project430 is a European research project for lupin and is evaluating the

environmental impact of lupin production on farm as well as techno-economic viability of the lupin processing on biorefinery profits. The project performs research to develop technologies to extract oil and alkaloids from crop varieties and further develop a prototype of new bio-based products which is ready for upscaling in collaboration with other SMEs and companies.

There are around 36 biorefinery plants spread out in different regions of Greece431 which can mobilize

biomass feedstock from agriculture and forest. A small percentage of facilities process sugar and starch in

Greece compared to bio-chemicals, paper and pulp facilities432.Mobilisation of switchgrass at commerical

scale is a possibility because there are many biofuel production facilities spread through out the Greece. Camelina, lupin and castor have multiple end uses and there are facilities which process multiple products

from the same feedstock spread through out the country433. Greece needs plants which process

biocomposites and fibres so that hemp can be processed for its fibre uses. Almost all, 97.2% of the facilities present in Greece are commercial scale faciltiies and only 2.8% of them are pilot and demonstration

facilities.434

426 https://hemptoday.net/hemp-push-in-greece/ 427 https://hemptoday.net/hemp-push-in-greece/ 428 https://greek-cbd.com/products.html 429 https://cordis.europa.eu/project/id/289642/reporting 430 http://www.libbio.net/ 431 https://ec.europa.eu/knowledge4policy/visualisation/bio-based-industry-eu_en 432 https://ec.europa.eu/knowledge4policy/visualisation/bio-based-industry-eu_en 433 https://ec.europa.eu/knowledge4policy/visualisation/bio-based-industry-eu_en 434 https://ec.europa.eu/knowledge4policy/visualisation/bio-based-industry-eu_en

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Supporting Policies There are national policies to support the innovation activities and to promote renewable energy and energy efficiency measures to promote eco-innovations. Greece is considered a moderate innovator based on the

regional innovation scoreboard index of 2017.435 There is funding available for research activities and under

the new National Strategic Reference Framework (2004-2020) 28.8 EUR million was allocated. Similarly, there are funds like Environment Structural Investment (ESI) Funds which has a total budget of EUR 1.5 billion for Research and Innovation. They also have the Green Fund whose main aim is to foster development through environmental protection. The Green Fund is providing administrative, economic, technical and financial support to programs, measures and actions which aim to promote and restore Greece's environment, to support the national environmental policy and to serve the public good through the use of the Fund's resources. National Energy Efficiency Fund 2021-2027 is another fund which can support the bioeconomy activities. The new investment law (4399/2016) provides investment support for the production of sustainable biofuels other than food-based biofuels and for the conversion of existing food-based biofuel plants into advanced biofuel plants in accordance with European Commission guidelines. However, biofuels that are subject to supply or blending obligations are excluded from receiving investment support. Policies in Greece which can support the development of non-food crops for biobased value chains. Production Conversion Distribution End-use

CAP: Greek Rural Development Programme Biofuel Quota

RES-E support Schemes: Feed-in Tariff,

Subsidies Biofuel Sustainability Criteria

RES-T Support schemes RES-H building obligations

Investment Law

National Emissions Ceilings (NEC)

Directive 2016/2284 -2021-2030

Biomass Heating Regulation

Good Agricultural

Practices

Energy Efficiency

Obligation

Programme

National Strategy for Forests

Law on income tax

National Energy Efficiency Fund or the Structural Funds Special Fund for Forests (Green Fund)

National emissions target under the EU Effort Sharing Decision (406/2009/EC) Greece National Energy and Climate Plan (NECP)

National Strategy for Adaptation to Climate Change (NSACC)

435 https://ec.europa.eu/environment/ecoap/greece_en

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ANNEX Table 1. Country Indicators Greece436

436 Based on Factsheet Greece https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/farming/documents/agri-statistical-factsheet-el_en.pdf (Accessed on July 2020) 437 https://iiasa-spatial.maps.arcgis.com/apps/webappviewer/index.html?id=a813940c9ac14c298238c1742dd9dd3c

Indicators Greece

EU-27 average

Assessment

1. Population and Demographics

Total Population 10 Million 18 Million

Population living in rural area 31.3 % 20.5 % Significant percentage of the population lives in the rural areas.

Young Farmers (<35 yrs) 3.7 % 5.1 % 3.7% of the farmers are young farmers which is lower than EU average.

2. Land use indicators

Total Area 131,694 km² km²

Agricultural Area 63,893 km²

Forest Area %

Marginal Land (MAGIC)437 19,622 km² 31.56% of the total area is the marginal land (MAGIC) which means a huge potential to exploit these underutilised land resources.

3. Farming Sector

Farm Size 6.6 ha 15.2 ha Small farm-size

Industrial crops production 8.6 % 4.9 ha 8.6% of the Agricultural output (2017-19 average)

Organic Agriculture 3.8% 1000 ha

Total employment supported by Agriculture

11 % 4.1 %

Farm Structure 77.3% of the farms are <5 ha. Almost 78% of the total UAA is classified as area facing with natural constraints and 53.9% are in mountainous regions. 86% of water use in Greece is consumed in agriculture, often with considerable water losses.

4. RDPs Funding (2014-2020)

Total Budget 5.95 € billion

Agriculture Environment Climate (AEC) 440 € million 7.4% of the total RDP

Area of Natural Constraints (ANC) 1347 € million 22.63% of the total RDP

200

Table 2. Strengths of few of the selected nonfood crops

Criteria Indicators Switchgrass Hemp Camelina Castor Lupin

a) Productivity and ability to be grow at large scale

Ag

ron

om

ic

Req

uir

em

en

ts

Geoclimatic conditions

Availability of Propagation materials

Availability of mechanisation

Crop Yield

b) Ability to produce feedstock for multiple markets

Recognised interest for multiple end-uses

c) i) Sustainability (socio-ecological)

En

vir

on

men

tal

Imp

ac

ts

Soil carbon level

GHG emissions from Ag.

Ecological impacts

Inputs requirements

Pest and Diseases

So

cia

l

Imp

ac

ts Employment and

jobs

c) ii) Profitability

Ec

on

om

ic

Imp

ac

ts

Net profit margin for farmers

Production costs/

Market price

TRL>7 ; TRL 5-7 ;TRL 3-5 ; TRL <3

201

Table 3. Indicators and rationale of selection

Criteria Indicators Definition Rationale of Selection Units

a)

Pro

du

cti

vit

y a

nd

ab

ilit

y t

o b

e g

row

at

larg

e s

cale

Geoclimatic conditions Soil (clay content, texture, pH level, porosity)

and climatic conditions affect the crop production process.

Suitable soil and climatic conditions are important factors to consider when the land is being assessed for growing industrial crops.

Descriptive

Availability of Propagation materials

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

The availability of propagation materials (i.e., seeds, rhizomes, etc.) at commercial scale is one a key factor for a crop to be near-to-

practice. indicates readily available

propagation material, indicates that the

genetic material is generally available, but it is regulated by commercial agreements with breeders and seed companies linked to specific end-uses.

TRL 1-9

Availability of mechanisation

Technological readiness level (TRL) of the crop production is measured in a scale 1 to 9. TRL 1 is the lowest, indicating the earliest stage of development for a new technology, and TRL 9 is the highest.

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

This indicator will help farmers understand the level of innovation regarding crop cultivation and land management practices. This deliverable also follows the deliverable D1.2 TRL assessment method as follows. TRL >7 for crops which are already produced at the industrial scale and meet the commercial demands of the bio-based industries. TRL is between 5-7 when the crop production is the at the demo scale. TRL 3-5 is for crops which are moving from research scale to production development stage. Similarly, TRL<3 is for crops which are undergoing basic research,

TRL 1-9

Crop Yield Crop yield is measured per hectare of cultivated area.

The indicator is crucial for farmers and entrepreneurs to make decision on choice of crops for cultivation.

Tonne/ha/yr

b)

Ab

ilit

y t

o

pro

du

ce

feed

sto

ck f

or

mu

ltip

le m

ark

ets

Recognised interest for multiple end-uses

It identifies possible industrial end-uses of the feedstock. This indicator helps us understand the

possibility of market expansion and

ability of the crop to fulfill the demand of the bio-economy as it expands.

In global market (e.g. energy/fuels) there are emerging opportunities find possible end-uses of NFCs and consumer demand for these end-uses. Therefore, it is important to understand the potential of production and trade these feedstocks as the demand rises. Conversion and quality of the feedstock

Descriptive

c)

i) S

us

tain

ab

ilit

y (

so

cio

-eco

log

ical)

Soil carbon level (SOC)

It is the indicator which estimates the total organic carbon content in arable soils.

This indicator depends on the inherent quality of the soil but also depend on the type of plant/crop cover, land management practices/ cultivation practices, water holding and carbon exchange capacity of the crop, drainage status of the soil and weather conditions.

Total SOC is measured as Megatonnes (Mt); Mean SOC concentration in arable land: g/kg.

Greenhouse gas emissions from production

This indicator measures GHG emission from agriculture and agriculture soils.

This indicator depends on the N2 fertilizer used, crop choices, management practices and fossil fuel used for production

tonnes of CO2

equivalent

Water abstraction/ Water use efficiency

It refers to the volume of water applied to soils for irrigation purposes.

Water use efficiency (WUE) gives information on water abstraction to produce crops.

Fertiliser requirements

It refers to the nitrogen fertilizer used or nitrogen use efficiency (NUE)

This indicator depends on the N2 fertilizer used.

Kg- N/ha/yr or Kg-P/ha/yr

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Pesticide and herbicide requirements

Resistance is the ability of a plant variety to restrict the growth and development of a specified pathogen/pest or the damage they cause when compared to susceptible plant varieties under similar environmental conditions and pathogen/pest pressure.

This indicator helps in understanding the resistance capacity of a crop against incidence of pest and diseases. The higher tolerance of crops makes them suitable and better choices. It means less inputs required, which means production costs is lower and the soil and water quality is also not compromised by the surface run off or ground water leaching.

Descriptive

Employment Full-time- employment (FTE) per value chain This indicator helps us estimate the contribution of a value chain in the form of FTE.

Percentage or Number of FTE per tonne of biomass

c)

ii)

Pro

fita

bilit

y

Production Costs

Production costs is the total costs for farmers to produce the crop

The total costs of production of a crop can be calculated by sum of variable costs (costs of inputs, labour cost) as well as fixed costs (land costs, overhead costs like farm level taxes and permits, depreciation costs of capital owned by farm equipment and buildings)

Euro/tonne

Net profit margin for farmers

The gross margin for a crop can be calculated by deducting the variable costs from the gross farm income from a crop per cropping season or per year. In order to measure the net farm profit margin, the calculation should include the capital costs (land, buildings, machinery, irrigation equipment ets) and fixed costs (land, building, machinery depreciation, administration, taxes etc).

The net profit margin is a decisive tool for farmers in farm management, estimating the returns and profit from production of a particular crop. This figure can also help in assess the performance of the crop per season and help in identifying where the farm management can be improved or streamlined.

Euro per year (or per cropping season)

Current market price

The market price for the crop varies during a year or per crop season, it decreases as supply increases and vice versa.

This indicator helps farmer understand the market and the potential profit they can make from the crop production.

Euro/tonne

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New strategies for the development and promotion of NFC in Europe

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D1.3 Strengths and opportunities of near-to-practice non-food crops (NFCs)

in The Netherlands

PANACEA. Non Food Crops For a EU Bioeconomy

New strategies for the development and promotion of NFC in Europe

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Deliverable Title: D1.3 Strengths and Opportunities of near to practice non-food crops (NFCs) in The Netherlands Deliverable Lead: Imperial College London (ICL) Related Work package: WP1 Author(s): WUR, ICL Communication level: PU Public PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) Grant Agreement Number: 773501 Programme: Horizon 2020 Start date of Project: November 2017 Duration: 40 months Project coordinator: CRES

PANACEA. Non Food Crops For a EU Bioeconomy

New strategies for the development and promotion of NFC in Europe

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Selected near-to-practice NFCs in The Netherlands Non Food Crops (NFCs) like sugar beet, hemp, miscanthus, Russian dandelion, linseed are selected as near to practice crops in PANACEA for Netherlands. Linseed is produced for non-food uses such as coating and flooring in Netherlands. Hemp is produced at industrial scale for composites and insulation materials. In Netherlands Russian dandelion is still not produced at industrial scale though the biorefinery process for extraction of

rubber and inulin has been developed. Similarly, miscanthus production options are explored for their co-digestion with manure and use for farm energy supply. This report provides facts and figures for the selected NFCs in Netherlands, assesses their strengths and describes their opportunities in policy and industry for their market uptake for the Dutch bioeconomy.

PANACEA. Non Food Crops For a EU Bioeconomy

New strategies for the development and promotion of NFC in Europe

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STRENGTHS

The PANACEA consortium has selected five crops -sugar beet, hemp, linseed, Russian dandelion, hemp as near-to-practice NFCs for Netherlands, based on their presence and suitability of cultivation as well as prospects for their utilization in the country. These selected crops have shown potential for sustainable, low input production with positive energy balance and could be used as feedstock for bioenergy and non-energy applications. The strengths for each selected crop are assessed for:

• productivity and ability to be grown at large-scale using existing machinery

• ability to produce feedstock for multiple markets

• sustainability and profitability A set of indicators from Common Agricultural Policy (CAP) and from the project deliverable D1.2 has been used for the assessment. The detailed definition of the indicators and the rationale for their selection can be found in the Annex Table 3. The rationale for choosing CAP related indicators is because non-food crops are or will be agricultural commodities and any planning, regulation and support will be developed under the framework of the Common Agricultural policy at EU or national level.

PANACEA. Non Food Crops For a EU Bioeconomy

New strategies for the development and promotion of NFC in Europe

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Miscanthus

Production area: Geographic distribution of cultivation: Yields: Miscanthus giganteus yields of 25-28 t/ha dry matter have been reported. (Lewandowski et al., 2016). High yielding hybrids of M x giganteus, M sinensis and M sacchiflorus are selected for cultivation of high yielding miscanthus.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

It is widely grown in Europe and suitable for a wide range of soils and best produced is pH between 5.5 and 7.5.

Miscanthus can be used for bioenergy, insulation, composites and bio-chemicals if production and the supply chain is well established.

Establishment can be done with rhizomes or seeds while harvesting requires specialized equipment. Post-harvest logistics require mechanized processes for compaction and pre-processing.

Sustainability Profitability Miscanthus can help in flood risk mitigation, soil protection, nitrate mitigation,438 increase soil carbon sequestration and biodiversity.439

Currently, the cost of processing is high and conversion process is labour intensive. To improve miscanthus profitability these need to be improved.

It is a resource efficient crop as it can be grown on marginal, contaminated land with limited use of fertilizers, pesticides and water inputs.

It can be used as source for biofuels (double counting) because it has potential of GHG mitigation and other positive environmental impacts.440 Miscanthus has high GHG gas (30 t O2eq C/ha/y) and energy saving ((429 GJ/ha/y) potential.441

438 Lewandowski, I., Clifton-Brown, J., Trindade, L. M., van der Linden, G. C., Schwarz, K. U., Müller-Sämann, K. & Farrar, K. (2016). Progress on optimizing miscanthus biomass production for the European bioeconomy: results of the EU FP7 project OPTIMISC. Frontiers in plant science, 7, 1620. 439 Bellamy, P. E., Croxton, P. J., Heard, M. S., Hinsley, S. A., Hulmes, L., Hulmes, S., et al. (2009). The impact of growing miscanthus for biomass on farmland bird populations. Biomass Bioenergy 33, 191–199. doi: 10.1016/j.biombioe.2008.07.001 440McCalmont, J., Hastings, A., McNamara, N. P., Richter, G. M., Robson, P., and Clifton-Brown, J. C. (2015). Environmental costs and benefits of growing miscanthus for bioenergy in the UK. Glob. Change Biol. Bioenergy. doi: 10.1111/gcbb.12294 441 Final report Summary OPTIMISTIC : https://cordis.europa.eu/project/rcn/101300/reporting/en

Photo Credit: University of Bologna

PANACEA. Non Food Crops For a EU Bioeconomy

New strategies for the development and promotion of NFC in Europe

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Hemp Industrial Hemp (Cannabis sativa L.) is a drought resistant crop which is gaining interest for its potential end use for bioethanol, composite and fibres, pharmaceutical purposes. Northern European varieties of hemp are considered to have rapid early growth and high seed yields compared to the southern varieties which are slow-growing and high fibre quality and yield. Yield: In Europe, hemp biomass yields ranged from 3.4 -31.2 t/ha and were affected by genotypes, fertilisation rates, plant density etc.442 Temperate regions like NL and UK have higher yields. 443

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Hemp can be grown in low nutrient and water conditions and can be used as rotational crop which has potential to increase land use efficiency.

Hemp is a multipurpose crop and has uses for fibre seed and oil.

Hemp requires improved harvesting system so that they have a suitable storage system and is well prepared for the processing stages depending on its end-use.

High biomass content make it suitable for bioenergy, high oil content 35% (polyunsaturated fatty acids and antioxidants such as tocopherols and carotenes) makes it suitable for

pharmaceutical uses.

Sustainability

Profitability

Hemp can increase soil carbon level and can be used for weed control as it is suitable for rotational cropping.

Hemp can provide very good opportunities for profitability to Dutch farmers.

GHG emissions abatement potential of hemp depends on the agronomic management practices, conversion process and its end-use

442 Zhao, J., Xu, Y., Wang, W., Griffin, J., Roozeboom, K., & Wang, D. (2020). Bioconversion of industrial hemp biomass for bioethanol production: A review. Fuel, 281, 118725. 443 Kreuger E, Sipos B, Zacchi G, Svensson S-E, Björnsson LJBt. Bioconversion of industrial hemp to ethanol and methane: the benefits of steam pretreatment and co-production. 2011;102(3):3457-65.

Photo Credit: https://www.agropro.lt/en/photo-

album/agropro-ekologiniai-laukai-2015/

PANACEA. Non Food Crops For a EU Bioeconomy

New strategies for the development and promotion of NFC in Europe

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Sugar Beet

Sugar beet fits well in the rotational cropping schemes of arable farming in NW Europe. There is strong interest from the chemical industry to purchase sugar beets for sugar to ethanol conversion. Yields: Sugar beet yield depends on climate, fertilisation, infectious diseases. The recorded average yield ranges from 15-45 tones/ha.444

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

It is adaptable in a wide range of soil and climate in European regions, therefore the crop production is well established.

It has multiple end -uses in biofuel industry, pulp industry to produce bio composites, paints, inks and food industry for coloring and flavoring agent.

Beetroot can be harvested manually and mechanically. A specialised tool- defoliator is used to do mechanical harvesting of the sugar beet. The pre-processing options to optimize the whole crop can be explored further.

Sustainability

Profitability

Sugar beet can be used in intercropping schemes.

Profitability depends on the world sugar market price. However, a small scale biorefinery can also deliver a stable profit for farmers and source of employment.

Sugar beet can be cover crop providing forage for wildlife and they can increase the soil carbon level when leaves and stalks are returned to the soil after harvesting.

444 Production Guideline produced by South African

Starke Ayres Group (2014).

https://www.starkeayres.co.za/com_variety_docs/Beetroot-Production-Guideline-2014.pdf

Photo: Sugar beet, UK/ Source: https://ls-

portal.eu/

PANACEA. Non Food Crops For a EU Bioeconomy

New strategies for the development and promotion of NFC in Europe

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Linseed

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Crop production is well established and can be grown with limited use of fertilisers and suitable for European climate and soils. Harvesting of fiber from linseed need specialised equipment. Seed oil production and refining is well established.

Linseed is currently used for oil extraction (used for coatings, linoleum) but fiber extraction is not established at industrial scale. Fibers has potential to be used in textile industry, paper, insulation and as composites. It has nutritional and health benefits so can be used to produce dietary supplements.

Sustainability

Profitability

It can be grown as rotational crop therefore not competing with existing lands which is used to grow food.

At present low-price linseed is imported from outside of EU, therefore competition to lower production costs is high.

Photo credit: https://world-crops.com/linseed/linseed-crop-field/

PANACEA. Non Food Crops For a EU Bioeconomy

New strategies for the development and promotion of NFC in Europe

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Russian Dandelion

Yields445: Experimental study in Germany for a 17 months period resulted in a root yield of 1.3-1.9 t/ha (with plant density of 60,000 plants/ha, trial 1) and 2.2 -3.7 t/ha (with plant density of 500,000 plants/ha). The biomass, rubber and inulin yield all were varying in different season.

Productivity and ability to be grown at large scale

Ability to produce feedstock for multiple markets

Russian dandelion can be easily propagated using seeds or seedlings. It is recommended to establish them in high density using seeds as the transplanting seedlings are more costly. High rubber yielding genotypes, optimum harvesting mechanisms needs to be researched further for production of high yielding crops.

The industrial scale production and supply chain is not established but biorefinery process for rubber and inulin extraction is developed. Inulin has naturally occurring polysaccharides and green chemicals. Inulin can be used in processed foods to replace sugar, fat and flour which improves the texture, taste and mouthfeel of food (Mensink et al., 2015). Non-hydrolized inulin can be converted to ethanol whereas non-hydrolyzed inulin can be used to make polyethylene furanoate (PEF) to make sustainable PET in bottling industry.446

The roots and leaves can be used as composting. Besides these industrial uses they have nutritional and culinary uses because they are rich in vitamin A and C, potassium, calcium and iron. They also have medicinal uses because of diuretic substance in it. 447

Sustainability

Profitability

Russian Dandelion can offer sustainable source solutions for rubber.

The whole production and supply chain of the crop has the potential to create new jobs in rural areas.

445 Eggert, M., Schiemann, J., & Thiele, K. (2018). Yield performance of Russian dandelion transplants (Taraxacum koksaghyz L. Rodin) in flat bed and ridge cultivation with different planting densities. European Journal of Agronomy, 93, 126-134.

446 https://www.gea.com/en/news/insights/2018/extracting-rubber-and-inulin-russian-dandelion.jsp 447 Mensink, M. A., Frijlink, H. W., van der Voort Maarschalk, K., & Hinrichs, W. L. (2015). Inulin, a flexible oligosaccharide I: Review of its physicochemical characteristics. Carbohydrate polymers, 130, 405-419.

Photo Credit: JKI, https://www.julius-kuehn.de

PANACEA. Non Food Crops For a EU Bioeconomy

New strategies for the development and promotion of NFC in Europe

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OPPORTUNITIES

Current Markets & Industry of the selected crops

According to the JRC database on biobased industries 448,

there are 86 biomass feedstock processing facilities in

Netherlands which are dependent on feedstocks originating

from agriculture, forestry, grasses and SRCs. 88.4% of these

facilities are commercial facilities, 7% of them pilot and

demonstration facilities and rest are R&D449.

The Circular Biobased Delta Foundation450 is a group of

businesses and knowledge centres in the delta region of North

Brabant, Zeeland and South Holland. The foundation supports

the initiative to use biomass as a raw materials in chemical construction and packaging

industries and to boost transition towards sustainable and profitable biobased economy. The

foundation is linking up innovative start-ups with established companies, attract investors,

strengthen cooperation between government authorities, businesses and knowledge centres,

lobby with local authorities and government and organise networking events to build

collaboration and partnerships. Residual from agriculture production of sugar beet, corn,

hemp and timber are mobilised to reduce dependency on fossil raw materials.

ECOR451 is a Dutch company which produces composite material from cellulose fibres. They

use plant based residuals from paper, cardboard,

coffee ground, hemp, cotton, paddy straw and

use pressure, heat and water to form ECOR

panels. Hemp is selected as near-to practice NFC

for NL for their textile fibres end uses. Hemp is

used at industrial scale for production of

composites for insulation materials in construction. In spite of strong industry in the fashion

industry, currently hemp is not used in textile processing.

According to the JRC database on biobased

industries 452, there are many bio-chemical facilities

in NL compared to others bio-based industries

which is good opportunity for selected NFCs like

linseed and Russian dandelion. Linseed has

traditionally been used in NL for production of

flooring and coating like paints, varnishes etc and with many bio-based chemical plants

448 https://ec.europa.eu/knowledge4policy/visualisation/bio-based-industry-eu_e 449 https://ec.europa.eu/knowledge4policy/visualisation/bio-based-industry-eu_en 450 https://biobaseddelta.com/what-is-the-biobased-delta/ 451 https://ecorbenelux.com/ 452 https://ec.europa.eu/knowledge4policy/visualisation/bio-based-industry-eu_e

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spread though out the country there is a potential opportunities for the linseed for further

upscaling. Similarly, Russian dandelion is another selected crop for NL but their production

is not yet commercial. However if Europe wants to meet demand for rubber without imports

crop like Russian dandelion is a potential alternative source. The by-product of inulin is low

calorific sweetener. The Green Chemistry Campus453 supports the entrepreneurs with

innovative bio circular ideas to scale up the production of bio- chemical building materials

and packaging industry.

Besides the biobased industries there are institutions which supports the collaboration,

information exchange among all biobased stakeholders. For example, institutions from

Netherlands and Flanders, Belgium are working together on GBO (Grenzeloos Biobased

Onderwijs)454 known as Boundless Biobased Education project, which works on the

development of demand-driven biobased education programs at secondary, higher and

university level and on better training and research facilities for education and business.

Similarly there is a media platforms like Agro & Chemistry455 which promotes the

information exchange, knowledge transfer about potential of biobased sector.

Holland Biomass 4 Energy Solutions456 is a collaboration of

several companies who have expertise in ethanol production,

pyrolysis, biogas, biomass combustion plants and other

technologies. They provide consulting services for biomass

production, pre-processing of biomass to conversion of biomass to bioenergy. Miscanthus is

selected for NL as potential near-to-practice crop and considered as potential option for co-

digestion with manure for biomethane production. The commercial scale production of

miscanthus is not yet established but there is a potential possibility with a services of

companies like Holland Biomass. Similarly, they can also support the upscaling of feedstock

like sugar beets whose industrial scale production and supply chain is well established for

sugar but further processing to ethanol in large scale needs additional investments. For a

continuous production of bioethanol from sugar beet, its conversion process needs to be

optimised to reduce production costs.

Supporting Policies

453 https://www.greenchemistrycampus.com/en/contact 454 https://www.biobasedonderwijs.eu/project 455 https://www.agro-chemistry.com/news/workshop-natural-fibertastic-for-smes/ 456 http://www.hollandbiomass4energysolutions.eu/about/

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The Netherlands implements the European as well as national directives on renewable energy, sustainability criteria and ILUC to increase the share of bioenergy and contribute in reduction of GHG emissions. The Netherlands is a member of the Global Bio-Energy Partnership (GBEP)457 which is a global cooperation of governments, international organization and companies to advance sustainable use of bio-energy. Based on the regional innovation scoreboard 2019458, NL is considered innovation leader. They have attractive research systems and innovation friendly environment and strongest innovation dimensions. NL performance was weak in firm investments and sales impacts dimensions which can be improved by right set of policy frameworks in place to boost the bio-based technologies and products. The Vision Biomass 2030 and Energy Agenda 2050 are few of the long term forward looking biomass strategies in place which can support the mobilization of biomass to achieve low-carbon.

Production Conversion Distribution End-use

CAP: Dutch Rural Development Programme Taxation of passenger cars and motorcycles (BPM) Decree on use of

manure Act on Income Tax

Energy Investment Tax Deduction Scheme (WEM)

Forestry Act

RES-E schemes: Loans, Tax regulation, Premium Tariff

National Agenda on infrastructure for alternative

fuels

Sustainable Energy Transition Scheme (SDE++)

Investment for charging stations

RES-H schemes: tax credits, loans,

premiums Subsidies for commercial EVs

RES-H schemes: biofuel quota and tax

regulations Environmental Protection Act Vision Biomass 2030

Biofuel Quota

Environmental Management Act

National Energy Efficiency Action Plan

RES-H infrastructure: Tax credits, Premiums

Heat Act

Green Deal on Maritime transport Climate Act; Climate Agreement

The National Climate Agenda for 2030; National Energy Efficiency Action Plan; New Energy for Climate Policy: The Clean and Efficient Programme (CEP)

The Energy Agenda 2050; Vision Biomass 2050

457 http://www.globalbioenergy.org/aboutgbep/partners-membership/en/ 458 https://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards_en

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ANNEX Table 1. Country Indicators The Netherlands459

459 Based on Factsheet Netherlands https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/farming/documents/agri-statistical-factsheet-nl_en.pdf (Accessed on July 2020) 460 https://iiasa-spatial.maps.arcgis.com/apps/webappviewer/index.html?id=a813940c9ac14c298238c1742dd9dd3c

Indicators The Netherlands EU-27 average

Assessment

1. Population and Demographics

Total Population 17 Million 18 Million

Population living in rural area 0.6 % 20.5 % Significant percentage of the population lives in the rural areas.

Young Farmers (<35 yrs) 4.1 % 5.1 % 3.7% of the farmers are young farmers which is lower than EU average.

2. Land use indicators

Total Area 37,378 km² km²

Agricultural Area 27, 031

km² Agriculture is one of the most important industry in France. Industrial farming is popular but there are small-scale farmers who run farms on traditional techniques and bio-farms. 16% of the total EU Utilised Agriculture Area is in France.

Forest Area %

Marginal Land (MAGIC)460 4209 km² 15.13% of the total area is the marginal land (MAGIC) which means a huge potential to exploit these underutilised land resources.

3. Farming Sector

Farm Size 32.3 (average) ha 15.2 ha NL has medium size farms with average size of 32.3 ha

Industrial crops production 0.7 % 4.9 ha 8.6% of the Agricultural output (2017-19 average)

Organic Agriculture 1000 ha

Total employment supported by Agriculture 1.8 % 4.1 % 2019

Farm Structure UAA <5 ha is 20.2%

4. RDPs Funding (2014-2020)

Total Budget 1.69 € billion Agriculture Environment Climate (AEC) 518 € million 30.74% of the total RDP Area of Natural Constraints (ANC) € million

; TRL 5-7 ;TRL 3-5 ; TRL <3

Table 2. Strengths of few of the selected Non Food Crops

Criteria Indicators Sugar beet Hemp Miscanthus Russian dandelion Linseed

a) Productivity and ability to be grow at large scale

Ag

ron

om

ic

Req

uir

em

en

ts

Geoclimatic conditions

Availability of Propagation materials

Availability of mechanisation

Crop Yield

b) Ability to produce feedstock for multiple markets

Recognised interest for multiple end-uses

c) i) Sustainability (socio-ecological)

En

vir

on

men

tal

Imp

ac

ts

Soil carbon level

GHG emissions from Ag.

Ecological impacts

Inputs requirements

Pest and Diseases

So

cia

l

Imp

ac

ts Employment and

jobs

c) ii) Profitability

Ec

on

om

i

c I

mp

ac

ts Net profit margin

for farmers

Production costs/

Market price

TRL>7 ; TRL 5-7 ;TRL 3-5 ; TRL <3

Table 3. Indicators and rationale of selection

Criteria Indicators Definition Rationale of Selection Units

a)

Pro

du

cti

vit

y a

nd

ab

ilit

y t

o b

e g

row

at

larg

e s

cale

Geoclimatic conditions Soil (clay content, texture, pH level, porosity)

and climatic conditions affect the crop production process.

Suitable soil and climatic conditions are important factors to consider when the land is being assessed for growing industrial crops.

Descriptive

Availability of Propagation materials

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

The availability of propagation materials (i.e., seeds, rhizomes, etc.) at commercial scale is one a key factor for a crop to be near-to-

practice. indicates readily available

propagation material, indicates that the

genetic material is generally available, but it is regulated by commercial agreements with breeders and seed companies linked to specific end-uses.

TRL 1-9

Availability of mechanisation

Technological readiness level (TRL) of the crop production is measured in a scale 1 to 9. TRL 1 is the lowest, indicating the earliest stage of development for a new technology, and TRL 9 is the highest.

TRL >7 (corresponding to ) which

is the maximum achievable value for any

crop to TRL <3 (corresponding to )

which identifies a very limited performance for the availability of mechanization system.

This indicator will help farmers understand the level of innovation regarding crop cultivation and land management practices. This deliverable also follows the deliverable D1.2 TRL assessment method as follows. TRL >7 for crops which are already produced at the industrial scale and meet the commercial demands of the bio-based industries. TRL is between 5-7 when the crop production is the at the demo scale. TRL 3-5 is for crops which are moving from research scale to production development stage. Similarly, TRL<3 is for crops which are undergoing basic research,

TRL 1-9

Crop Yield Crop yield is measured per hectare of cultivated area.

The indicator is crucial for farmers and entrepreneurs to make decision on choice of crops for cultivation.

Tonne/ha/yr

b)

Ab

ilit

y t

o

pro

du

ce

feed

sto

ck f

or

mu

ltip

le

mark

ets

Recognised interest for multiple end-uses

It identifies possible industrial end-uses of the feedstock. This indicator helps us understand the possibility of market expansion and ability of the crop to fulfill the demand of the bio-economy as it expands.

In global market (e.g. energy/fuels) there are emerging opportunities find possible end-uses of NFCs and consumer demand for these end-uses. Therefore, it is important to understand the potential of production and trade these feedstocks as the demand rises. Conversion and quality of the feedstock

Descriptive

c)

i) S

us

tain

ab

ilit

y (

so

cio

-eco

log

ical)

Soil carbon level (SOC)

It is the indicator which estimates the total organic carbon content in arable soils.

This indicator depends on the inherent quality of the soil but also depend on the type of plant/crop cover, land management practices/ cultivation practices, water holding and carbon exchange capacity of the crop, drainage status of the soil and weather conditions.

Total SOC is measured as Megatonnes (Mt); Mean SOC concentration in arable land: g/kg.

Greenhouse gas emissions from production

This indicator measures GHG emission from agriculture and agriculture soils.

This indicator depends on the N2 fertilizer used, crop choices, management practices and fossil fuel used for production

tonnes of CO2

equivalent

Water abstraction/ Water use efficiency

It refers to the volume of water applied to soils for irrigation purposes.

Water use efficiency (WUE) gives information on water abstraction to produce crops.

Fertiliser requirements

It refers to the nitrogen fertilizer used or nitrogen use efficiency (NUE)

This indicator depends on the N2 fertilizer used.

Kg- N/ha/yr or Kg-P/ha/yr

PANACEA. Non Food Crops For a EU Bioeconomy

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Pesticide and herbicide requirements

Resistance is the ability of a plant variety to restrict the growth and development of a specified pathogen/pest or the damage they cause when compared to susceptible plant varieties under similar environmental conditions and pathogen/pest pressure.

This indicator helps in understanding the resistance capacity of a crop against incidence of pest and diseases. The higher tolerance of crops makes them suitable and better choices. It means less inputs required, which means production costs is lower and the soil and water quality is also not compromised by the surface run off or ground water leaching.

Descriptive

Employment Full-time- employment (FTE) per value chain This indicator helps us estimate the contribution of a value chain in the form of FTE.

Percentage or Number of FTE per tonne of biomass

c)

ii)

Pro

fita

bilit

y

Production Costs

Production costs is the total costs for farmers to produce the crop

The total costs of production of a crop can be calculated by sum of variable costs (costs of inputs, labour cost) as well as fixed costs (land costs, overhead costs like farm level taxes and permits, depreciation costs of capital owned by farm equipment and buildings)

Euro/tonne

Net profit margin for farmers

The gross margin for a crop can be calculated by deducting the variable costs from the gross farm income from a crop per cropping season or per year. In order to measure the net farm profit margin, the calculation should include the capital costs (land, buildings, machinery, irrigation equipment ets) and fixed costs (land, building, machinery depreciation, administration, taxes etc).

The net profit margin is a decisive tool for farmers in farm management, estimating the returns and profit from production of a particular crop. This figure can also help in assess the performance of the crop per season and help in identifying where the farm management can be improved or streamlined.

Euro per year (or per cropping season)

Current market price

The market price for the crop varies during a year or per crop season, it decreases as supply increases and vice versa.

This indicator helps farmer understand the market and the potential profit they can make from the crop production.

Euro/tonne

PANACEA. Non Food Crops For a EU Bioeconomy

New strategies for the development and promotion of NFC in Europe

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PANACEA. Non Food Crops For a EU Bioeconomy

New strategies for the development and promotion of NFC in Europe

2

ANNEX II Table 1 criteria and indicators

Criteria Indicators Definition Rationale of Selection Units a) Productivity and ability to be grow at large scale

Geoclimatic conditions

Soil (clay content, texture, pH level, porosity) and climatic conditions affect the crop production process.

Suitable soil and climatic conditions are important factors to consider when the land is being assessed for growing industrial crops.

Descriptive

Availability of Propagation materials

TRL >7 (corresponding to

) which is the maximum

achievable value for any crop to TRL <3 (corresponding to

) which identifies a very

limited performance for the availability of mechanization system.

The availability of propagation materials (i.e., seeds, rhizomes, etc.) at commercial scale is one a key factor for a crop to be near-to-

practice. indicates readily

available propagation material,

indicates that the genetic

material is generally available, but it is regulated by commercial agreements with breeders and seed companies linked to specific end-uses.

TRL 1-9

Availability of mechanisation

Technological readiness level (TRL) of the crop production is measured in a scale 1 to 9. TRL 1 is the lowest, indicating the earliest stage of development for a new technology, and TRL 9 is the highest.

TRL >7 (corresponding to

) which is the maximum

achievable value for any crop to TRL <3 (corresponding to

) which identifies a very

limited performance for the availability of mechanization system.

This indicator will help farmers understand the level of innovation regarding crop cultivation and land management practices. This deliverable also follows the deliverable D1.2 TRL assessment method as follows. TRL >7 for crops which are already produced at the industrial scale and meet the commercial demands of the bio-based industries. TRL is between 5-7 when the crop production is the at the demo scale. TRL 3-5 is for crops which are moving from research scale to production development stage. Similarly, TRL<3 is for crops which are undergoing basic research,

TRL 1-9

Crop Yield Crop yield is measured per hectare of cultivated area.

The indicator is crucial for farmers and entrepreneurs to make decision on choice of crops for cultivation.

Tonne/ha/yr

b) Ability to produce feedstock for multiple markets

Recognised interest for multiple end-uses

It identifies possible industrial end-uses of the feedstock. This indicator helps us understand the possibility of market expansion and ability of the crop to fulfill the demand of the bio-economy as it expands.

In global market (e.g. energy/fuels) there are emerging opportunities find possible end-uses of NFCs and consumer demand for these end-uses. Therefore, it is important to understand the potential of production and trade these feedstocks as the demand rises. Conversion and quality of the feedstock

Descriptive

c) i) Sustainability (socio-

Soil carbon level (SOC)

It is the indicator which estimates the total organic carbon content in arable soils.

This indicator depends on the inherent quality of the soil but also depend on the type of plant/crop cover, land management practices/ cultivation practices, water holding

Total SOC is measured as Megatonnes (Mt); Mean SOC

PANACEA. Non Food Crops For a EU Bioeconomy

New strategies for the development and promotion of NFC in Europe

2

ecological)

and carbon exchange capacity of the crop, drainage status of the soil and weather conditions.

concentration in arable land: g/kg. al

Greenhouse gas emissions from production

This indicator measures GHG emission from agriculture and agriculture soils.

This indicator depends on the N2 fertilizer used, crop choices, management practices and fossil fuel used for production

tonnes of CO2

equivalent

Water abstraction/ Water use efficiency

It refers to the volume of water applied to soils for irrigation purposes.

Water use efficiency (WUE) gives information on water abstraction to produce crops.

Fertiliser requirements

It refers to the nitrogen fertilizer used or nitrogen use efficiency (NUE)

This indicator depends on the N2 fertilizer used.

Kg- N/ha/yr or Kg-P/ha/yr

Pesticide and herbicide requirements

Resistance is the ability of a plant variety to restrict the growth and development of a specified pathogen/pest or the damage they cause when compared to susceptible plant varieties under similar environmental conditions and pathogen/pest pressure.

This indicator helps in understanding the resistance capacity of a crop against incidence of pest and diseases. The higher tolerance of crops makes them suitable and better choices. It means less inputs required, which means production costs is lower and the soil and water quality is also not compromised by the surface run off or ground water leaching.

Descriptive

Employment Full-time- employment (FTE) per value chain

This indicator helps us estimate the contribution of a value chain in the form of FTE.

Percentage Or Number of FTS per tonne of biomass

c) ii) Profitability

Production Costs

Production costs is the total costs for farmers to produce the crop

The total costs of production of a crop can be calculated by sum of variable costs (costs of inputs, labour cost) as well as fixed costs (land costs, overhead costs like farm level taxes and permits, depreciation costs of capital owned by farm equipment and buildings)

Euro/tonne

Net profit margin for farmers

The gross margin for a crop can be calculated by deducting the variable costs from the gross farm income from a crop per cropping season or per year. In order to measure the net farm profit margin, the calculation should include the capital costs (land, buildings, machinery, irrigation equipment ets) and fixed costs (land, building, machinery depreciation, administration, taxes etc).

The net profit margin is a decisive tool for farmers in farm management, estimating the returns and profit from production of a particular crop. This figure can also help in assess the performance of the crop per season and help in identifying where the farm management can be improved or streamlined.

Euro per year (or per cropping season)

Current market price

The market price for the crop varies during a year or per crop season, it decreases as supply increases and vice versa.

This indicator helps farmer understand the market and the potential profit they can make from the crop production.

Euro/tonne

PANACEA. Non Food Crops For a EU Bioeconomy

New strategies for the development and promotion of NFC in Europe

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