Opportunities for Primary Industries in the Bioenergy Sector• Establish Technical Working Groups...

Opportunities for Primary Industries in the Bioenergy Sector

National Research, Development and Extension Strategy

Further InformationJulie BirdSenior Research ManagerNational RD&E StrategiesRural Industries Research and Development Corporation

Ph: 02 62714140Fax: 02 62714199E-mail: [email protected]

Electronically published in August 2011 Print-on-demand by Union Offset Printing Canberra at www.rirdc.gov.au or phone 1300 634 313RIRDC Publication No 11/079

http://www.rirdc.gov.au



August 2011

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Acknowledgements

Contributions from the Biofuels and Bioenergy National RD&E Strategy Steering Committee are gratefully acknowledged. In addition, we thank the many industry participants, university research officers, government officials and others who provided data for the resource analysis and consultation responses. The response rate was outstanding.

The Biofuels and Bioenergy National RD&E Strategy Steering CommitteeAnne Bennett DAFWA

Steven Clarke SARDI

Lesley Dowling DEWHA

Brendan George NSW DPI

Paul Grieve DEEDI QLD

Victoria Haritos CSIRO

David Hurburgh TAS DEDT

Zoltan Lukacs GRDC

Simon Maddocks SARDI

Thomas Maschmeyer University of Sydney

Linda Meisel DEWHA

Richard Niven DRET

Roslyn Prinsley RIRDC (until 2010)

Nathan Rhodes DAFF (until 2010)

Natalie Sabadasz DAFF (until 2010)

Michael Ryan DAFF

Bill Salter APL

Bruce Sawyer NTDOR

Stephen Schuck Bioenergy Australia

Helen Scott-Orr NSW DPI (until 2009)

German Spangenberg VIC DPI

Annette Sugden SRDC

Rob Thomas SARDI

Catherine Viljoen LWA

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Abbreviations and Acronyms

ABRI Australian Biofuels Research Institute

ACRE Australian Centre for Renewable Energy

AFSIG Alternative Fuels Strategic Issues Group

ARENA Australian Renewable Energy Agency

BAA Biofuels Association of Australia

CO2 Carbon Dioxide

CSIRO Commonwealth Scientific and Industrial Research Organisation

DEEDI Department of Employment, Economic Development and Innovation Queensland

DOE (United States) Department of Energy

DRET Department of Resources, Energy and Tourism

FY Fiscal Year

GHG Greenhouse Gas

GWh Gigawatt-Hours

H2O Water

IEA International Energy Agency

LRET Large-scale Renewable Energy Target

NSW DPI New South Wales Department of Primary Industries

PIMC Primary Industries Ministerial Council

PISC Primary Industries Standing Committee

PMSEIC Prime Minister’s Science, Engineering and Innovation Council

RD&E Research, Development & Extension

RIRDC Rural Industries Research and Development Corporation

SCER Standing Council on Energy and Resources

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ContentsAcknowledgements ............................................................................................................ iv

Executive summary ........................................................................................................... vii

1. Background and context ................................................................................................ 1

2. Industry overview ............................................................................................................ 2Introduction ......................................................................................................................................................2

The Australian bioenergy industry today .......................................................................................................3

The potential for growth ..................................................................................................................................4

The challenges of sustainability .....................................................................................................................5

Realising bioenergy’s potential in Australia ...................................................................................................6

3. Bioenergy industries resource analysis ....................................................................... 7Funding Bioenergy RD&E Activities...............................................................................................................7

Resource analysis ..........................................................................................................................................9

Current RD&E Priorities and Gaps ..............................................................................................................13

Capability (Human and Infrastructure) Analysis ..........................................................................................16

4. Improving the coordination of bioenergy R,D&E ..................................................... 17Vision .............................................................................................................................................................17

The Need for Greater RD&E Coordination ..................................................................................................17

An RD&E Advisory Forum for Primary Industry Opportunities in Bioenergy .............................................18

Advisory Forum’s Proposed Terms of Reference ........................................................................................18

Communications and Extension ..................................................................................................................19

Implementation Steps ...................................................................................................................................19

Footnotes ............................................................................................................................ 20

Endorsements .................................................................................................................... 21Australian Government Department of Agriculture, Fisheries and Forestry ..............................................22

Bioenergy Australia .......................................................................................................................................23

Commonwealth Scientific and Industrial Research Organisation ..............................................................24

Department of Economic Development, Tourism and the Arts - Tasmania ..............................................25

Department of Agriculture and Food Western Australia .............................................................................26

Department of Employment Economic Development and Innovation - Queensland ................................27

Department of Primary Industries Victoria ...................................................................................................28

Department of Resources, Energy and Tourism .........................................................................................29

Northern Territory Department of Resources ...............................................................................................30

NSW Department of Primary Industries .......................................................................................................31

South Australian Research and Development Institute ..............................................................................32

Sugar Research and Development Corporation .........................................................................................33

University of Sydney .....................................................................................................................................34

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Bioenergy is already making a substantial contribution to meeting global (including Australian) energy demand, and that contribution could be expanded very significantly in the future. However, bioenergy is a complex topic that crosses several important policy areas including:

• The long term risks to energy security – through improving the affordability, reliability and/or resilience of energy supply, particularly for liquid fuels where future oil prices and availability are uncertain.

• Greenhouse gas (GHG) abatement – through mitigation and displacement of fossil fuels, especially as emissions pricing becomes established (e.g., via the Australian Government’s recently announced Clean Energy Plan).

• Land and water use – in a water limited environment such as Australia and where international experience from direct and indirect land use change has seen adverse impacts on food prices and/or biodiversity, concerns emerge due to competition for scarce resources.

• Rural and regional development – through new market opportunities for farm-based products, bioenergy industry development, salinity mitigation, soil protection and/or increased biodiversity.

While primary industries will be the major suppliers of biomass feedstocks to the downstream producers of bioenergy products, primary industries are just the beginning of a complex, industrial value-chain that results in energy transformation for a range of stationary and transport applications.

Efficient and sustainable production of a wide-range of biomass feedstocks in sufficient volume and at costs that will meet the needs of those bioenergy producers are

key challenges for primary industries. Adding further complexity are the sustainability challenges across social, environmental and economic dimensions. Bioenergy systems have the capacity to address environmental issues and social aspects, but to meet these goals requires integrated management of the bioenergy value chain from growing, harvesting and transporting feedstocks to their conversion into useful end-products.

Through development of this strategy and the actions identified our vision is:

That Australian primary industries benefit from the growth of a local bioenergy sector that profitably and sustainably contributes to the mitigation of climate change and long term risks of Australian energy security.

The key aspects of the vision are that the bioenergy sector is:

1. Profitable – promoting large-scale investment and activities.

2. Sustainable – recognising the risks involved with large-scale development, the judicious selection of land use and technology application is required.

3. A significant contributor to the mitigation of climate change and the long term risks to energy security.

To achieve our vision this strategy aims to consolidate strategic issues and focus potential investment into this nascent and fast-developing field and facilitate the development of globally recognised research and active education and extension to assist with industry development. The strategy focuses on the role of primary industries in bioenergy industry supply chains, while recognising related value chain and technological, social and economic issues.

Executive summary

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The bioenergy industry in Australia has the potential to grow significantly, driven by:• Increased demand for renewable energy for stationary

power and transport fuels (especially aviation fuels for which there are limited alternatives), as Australia seeks to reduce its GHG emissions.

• A market response in the need to diversify heat, power and fuel supplies.

• The development of a variety of new and existing feedstocks that optimise sustainable use of existing farmland and create new opportunities for marginal lands.

• A variety of new conversion technologies, principally those for production of liquid fuels from lignocellulosic and algal biomass sources.

Identified primary industry-specific RD&E priorities include:• Sustainability;

• Feedstocks;

• Supply logistics;

• Policy analysis; and

• Outreach, capacity building and networking.

For the primary industry sector to optimise the opportunities of bioenergy, significant RD&E gaps within these priority areas must be addressed.

There is a need for greater coordination of focused RD&E that will assist Australian primary industries to best engage and pursue Australian bioenergy opportunities. Australia’s bioenergy sector (including biomass feedstock supply) is relatively immature, and its sustainable growth is significantly dependent on the stability and direction of future policy decisions and technological advances.

Flexible strategies and coordination mechanisms are required to allow for rapid changes in technology and policy. The importance, and challenge, of aligning and coordinating the Primary Industries Standing Committee (PISC) and the Standing Committee on Energy and Resources (SCER) in their consideration of bioenergy supply/value chain opportunities and challenges cannot be overstated.

There is a substantial body of knowledge developed nationally and internationally in bioenergy. Information for communication and extension activities can, and must, be drawn from this knowledge base and transferred to Australian primary industries stakeholders about the opportunities and challenges in the domestic

bioenergy industry. The key will be to provide credible information and resources so stakeholders can assess potential opportunities in the bioenergy sector.

RecommendationsThere is a clear need for a Bioenergy RD&E Advisory Forum (the Forum) to align policies and RD&E activities relevant to primary industry stakeholders in order to maximise returns on their involvement and/or investment in bioenergy supply chains. The Forum will have a primary industries focus, whilst recognising the importance of coordination among and communication with related energy sector stakeholders.

This Forum will be coordinated and supported by RIRDC and will include representatives from relevant PISC agencies, universities, CSIRO, federal agencies and funding bodies (including RDCs) and primary industry representatives. The bioenergy industry will also be represented in order to address the industry-specific needs and to align operation of primary industries to the opportunities in the bioenergy sector. Membership will be voluntary. Participation will offer opportunities to negotiate RD&E activities that will benefit both individual research institutions as well as primary industries as a whole. The National RD&E Framework principle of national R, and regional D&E, will guide the activities of the Forum.

After an initial planning and consolidation phase, the Forum will meet regularly to guide and coordinate potential collaborations. PISC agency financial commitment to this strategy will be in the form of providing representation to the Forum.

The proposed terms of reference for the Forum are to:• Provide national coordination among primary

industry stakeholders and facilitate consultation and communication amongst Australian research providers, funders, industry and government agencies focused on bioenergy RD&E activities.

• Encourage and facilitate collaboration and knowledge sharing in order to achieve greater efficiencies in use of resources and growth in capability.

• Establish Technical Working Groups (TWG) to develop RD&E work programs addressing each of the priority areas. These work programs will help determine coordination and collaboration actions.

• Provide input and representation to high-level decision-making fora relevant to the bioenergy sector, including encouragement of increased and efficient funding and resources for relevant RD&E

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activities through methods such as analysis of existing/baseline activities and ongoing cost benefit analyses.

• Lead and coordinate the communication of RD&E outcomes to primary industries, the general public and policy makers.

• Coordinate and interact with the other sector and cross-sector National RD&E Strategies, and specifically those with expressed interests in bioenergy-related opportunities.

• Increase collaboration with non-primary industry sectors, including relevant Standing Committees and Federal/State agencies and initiatives.

• Examine and further develop opportunities for international collaboration and innovation sharing that will benefit the Australian bioenergy industry.

• Update this National RD&E Strategy, including RD&E priorities, every three years through consultation with industry and researchers.

RIRDC will be responsible for the formation and function of the Forum and reporting to PISC. Each TWG will have an identified Leader and will report to the Forum on specific actions of their TWG and assist RIRDC in formulating reports and discussions with PISC where required.

The scope of this strategy needs to be limited to adequately address the key issues facing primary industries. The breadth and depth of the respective components in the developing bioenergy sector (viz., technical, social, economic and environmental), is acknowledged and in particular the fast-developing processing technology (e.g., significant advances in biorefinery technology and basic science). The complexity and diversity of the bioenergy supply chain is recognised and the strategy has a particular focus on the biomass feedstock resource and supply systems. This will promote the concentration of effort to optimise efficient supply of suitable biomass for renewable heat, power and transport.

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1. Background and context

Research, Development and Extension (RD&E) in primary industries is a key factor for increasing productivity and ensuring sustainability. RD&E across Australia involves a complex web of research providers and investors who are independent operators often with strong interconnections. The 15 rural R&D corporations and industry-owned companies (RDCs) are an integral component of this web, as well as the federal, state and territory governments, CSIRO, universities and private providers. If Australia’s primary industries are to improve their productivity and sustainability they cannot afford a fragmented or duplicative RD&E system. Nationally, RD&E investment in primary industries, which exceeds $1.6 billion annually1, needs to be focussed and used efficiently, effectively and collaboratively.

In April 2005 the Primary Industries Ministerial Council (PIMC) endorsed the concept of ‘National R with Regional D&E’. The concept recognises that basic and strategic research (R) can be provided from a distance, with regional adaptive development (D) and local extension (E) required to improve the uptake of innovation by industry.

Subsequently, in April 2006, PIMC agreed to a set of principles to facilitate further cooperation between agencies and industry for improving the efficiency and effectiveness of the national RD&E capability. These principles emphasise cooperation, information sharing, maintaining funding, access to capability and reporting.

The notion of collaborative RD&E between agencies is now well established and in April 2007, PIMC agreed to develop a National Research, Development and Extension Framework as a broad national plan to provide a more comprehensive, structured approach within an agreed timeframe.

On 6 November 2008, PIMC endorsed the National Primary Industries Research Development and

Extension Framework (National RD&E Framework), including the development of an overarching statement of intent. PIMC also acknowledged the significant contribution and progress that has been made by agencies, RDCs and peak industry bodies in developing the fourteen sectoral and seven cross sectoral industry strategies.

When the Framework is fully implemented it is expected that: • research capability will become more collaborative,

specialised, have larger critical mass and will be less fragmented across the nation. Efficiency and effectiveness of RD&E will be markedly improved overall, although some additional costs could be incurred providing national linkages and to support delivery of regional development and local extension.

• agencies will retain and build capability in fields strategically important to their jurisdictions and industries. At the same time, it is expected agencies will collaborate with others to provide for a more comprehensive national research capability.

• the national research capability will be an integral component of a wider innovation agenda, supporting development and extension. To encourage rapid uptake of new technologies, research developed in one location would be available nationally for the whole industry.

By ensuring the substantial resources invested by government and industry in research are managed cooperatively, a more efficient, effective and comprehensive capability will be possible.

The Framework comprises 14 primary industry sector strategies, and seven cross-industry sector strategies. This report, the National RD&E Strategy for Opportunities for Primary Industries in the Bioenergy Sector, is a cross-industry sector strategy.

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IntroductionRenewable biomass feedstocks use the process of photosynthesis in plants to capture the sun’s energy by converting carbon dioxide (CO2) from the air and water (H2O) into carbohydrates and complex oil and fibre compounds made up of carbon, hydrogen and oxygen. These energy-rich carbohydrates, oils and fibres can be harvested and converted to useful energy carriers (solid, liquid and gaseous fuels; electricity; heat) and/or substitutes for petrochemical and other energy intensive

products for utilisation in a wide range of domestic, commercial, industrial and transport applications (Figure 1, from the IEA Bioenergy, provides a schematic representation of this value chain).

Primary industries will be the major supplier of biomass feedstocks to the downstream producers of bioenergy products. Efficient and sustainable production of a wide-range of biomass feedstocks (Figure 2) in sufficient volume and at costs that will meet the needs of those bioenergy producers are key challenges. In

2. Industry overview

Figure 1. Schematic representation of the bioenergy value chain2

Agriculture Aquaculture Forestry Industries & households

Dedicated crops Residues

Sugarcrops

Lignocellulosiccrops

Starchcrops Oil crops

Oil basedresidues

Organic residuesand others

Lignocellulosicresidues

Algae

Grasses

Figure 2. Types of biomass feedstocks and their source3

Biomass Resources Supply Systems Conversion End Products

Integrating research themes across the value chain: environmental and economic sustainability, system studies, fuel standards, greenhouse gas balances, barriers to deployment, management decision support systems

Conventional forestryShort rotation forestryAgricultural crops and residuesOil-bearing plantsMunicipal solid wasteIndustrial waste

HarvestingCollection

Handling and

storage

Biochemical

Thermochemical

Physical/Chemical processes

Transportation fuels

Heat; Electricity

Solid fuels

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the production of the feedstocks, biomass may be the primary product, a co-product or a by-product of varying systems (as dedicated crops and/or residues).

Bioenergy is already making a substantial contribution to meeting global energy demand, and that contribution could expand significantly in the future. It is the only renewable source that can replace fossil fuels in all energy markets; in the production of heat, power, and fuels for transport. A recent report (Bauen et al. 2010) presented to the International Energy Agency’s (IEA’s) Bioenergy Implementing Agreement’s members predicts that bioenergy could sustainably contribute between a quarter and a third of global primary energy supply in 2050.4 For example, in Sweden biomass provides approximately 20% of their primary energy needs and much of this is for heat.5 Currently such mature technology is underexploited in Australia and is an opportunity for development.

However, bioenergy is a complex topic that impacts a range of important policy areas:

• Energy security – through assistance in mitigating long term risks regarding affordability, reliability and resilience of energy supply.

• Greenhouse gas (GHG) abatement – through mitigation and displacement of fossil fuels. Especially as emissions pricing becomes established (e.g., via the Australian Government’s recently announced Clean Energy Plan).



The Australian bioenergy industry todayThe Australian Bioenergy Roadmap6 (2008) noted that biomass sources provided approximately 1% of Australia’s total electricity generation. By 31 December 2010, approximately 15% of new renewable electricity generation was derived from biomass sources.7 Modelling of the recently established Large-scale Renewable Energy Target (LRET) scheme suggests that biomass sources are likely to further contribute to electricity generation in Australia (Figure 3).8

In the biofuels sector, ethanol and biodiesel are both produced commercially in Australia. The Department of Resources, Energy and Tourism estimated 2010/11 biofuel production to be in excess of 360 megalitres, representing approximately 1% of the estimated 38.8 billion litres of automotive petrol and diesel (excluding jet fuels) sold in Australia in FY2009-109.

Biomass Hydro electricity Solar/PV Wind Geothermal Ocean

70,000

60,000

50,000

40,000

30,000

20,000

10,000

Gen

erat

ion

GW

h

0

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

Figure 3. Forecast generation mix (large scale plant) – LRET design

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Australia has a number of well-established industries providing, or capable of providing, feedstocks for bioenergy:• The sugar and grains industries already provide

feedstock for the production of ethanol and biodiesel.

• The forestry, sugar and grains industries are all capable of providing cellulosic feedstock for production of electricity and advanced generation biofuels.

• Australia is one of the few countries in the world that already has commercial production of algae, noting that it currently is used for production of chemicals (e.g. nutraceuticals), not for fuels.10, 11

Organisations representing Australian bioenergy companies and researchers include:• Bioenergy Australia12, a forum comprising more

than 85 member organisations from government, industry and academia. Its interests include communication and extension of research, development and demonstration activities and commercial projects for electricity, heat and biofuels. It is the body that co-ordinates Australia’s involvement in a number of multinational research projects under the IEA’s Bioenergy Implementing Agreement.

• The Biofuels Association of Australia13 is the main industry body that represents ethanol and biodiesel producers.

• The Clean Energy Council14 is an industry body with more than 400 members. It focuses on low emission generation and energy efficiency within the Australian electricity industry, including an interest in electricity generation via bioenergy.

The potential for growthThe bioenergy industry in Australia has the potential to grow significantly, driven by:• Increased demand for renewable energy for

stationary power and transport fuels, as Australia seeks to reduce its GHG emissions.

• A market response to a sustained increase in oil prices in the longer term, as demand increases and supply is constrained.

• A variety of new conversion technologies, principally those for production of liquid fuels from lignocellulosic (predominantly being commercialised overseas) and algal biomass sources.

• The development of new and existing feedstocks

that aim to optimise sustainable use of existing farmland and create new opportunities for marginal lands (e.g., incorporation of mallee or pongamia species into farming systems).

Power and heatThe Australian Bioenergy Roadmap process identified adequate supplies of economically and logistically accessible biomass resources to support a target of 11,000 gigawatt-hours (GWh) of electricity production per year (or about 4% of Australia’s electricity production) by 2020. Further, the biomass resource appraisal for the Roadmap estimated the long-term potential to 2050 to be 73,000 GWh per year, which is about seven times the size of the 2020 target. This potential is in line with an earlier estimate by the Australian Business Roundtable on Climate Change that bioenergy could supply approximately 20% to 30% of Australia’s electricity needs by 2050.15

Generally the technologies required to implement successful biomass-based stationary energy supply already exist in Australia or elsewhere in the world. Success in this sector lies in being able to produce power and heat at competitive prices, which will be aided by sustainable production of suitable feedstock, communications and extension activities, policy and industry development and technology adaptation and demonstration.

BiofuelsAs a variety of new biofuel technologies are commercialised, biofuels could potentially contribute an important part of Australia’s future fuels for road, sea and air transport. The aviation, mining (logistics and off-grid power generation), heavy-duty road transport, military and marine sectors have a continuing need for liquid fuels, for which biofuels are potentially one of the few low-emission long-term alternatives.

The Department of Resources, Energy and Tourism has commissioned a next generation Biofuels Economics Study that is being carried out by an independent consultant. This study, will be completed during 2011 and will identify the current state of development of biofuels technologies, internationally and in Australia, and will examine the potential economic value of the most prospective biofuels technologies when applied to Australian conditions, resources and capabilities. Outcomes from this study are expected to inform the development of the government’s alternative fuels strategy and can contribute to the knowledge underpinning the directions of the Forum.

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The Biofuels Economics Study will also inform the strategic direction that will be recommended for a new Australian Biofuels Research Institute (ABRI) that is being created to support the development and early commercialisation of an Australian biofuels industry. It is expected that increased indigenous biofuels production could positively impact Australian fuel supply security and contribute to a reduction in Australia’s carbon footprint.

Internationally, the European Union currently accepts seven voluntary schemes that biofuel producers or importers to the EU can use to have their biofuels accredited as contributing to the EU’s directive of increasing the use of biofuels in transport.16

The challenges of sustainabilityThe continuing global increase in population with associated resource development, increasing impacts of climate change, and threats to food, water and energy security place sustainability as a threshold issue for the bioenergy industry internationally.17

There are two related aspects of sustainability that will have a significant impact on the potential for, and realisation of, bioenergy in Australia and indeed globally. First, the competition for resources is critical, particularly in regard to the use of water. Recognised in the recent PMSEIC report Challenges at energy-water-carbon intersections18, an understanding of the interaction between resource availability and capacity to develop low-carbon options for energy supply is paramount in establishing a robust and sustainable bioenergy industry base. Second, the balance of energy

and food production will be a critical concern in large-scale bioenergy industry development.

Given the extensive nature of the potential supply and use of bioenergy, and its interaction with the agricultural and forestry sectors, all three pillars of sustainability (environmental, economic and social [Figure 4]), need to be fully considered and appropriately addressed on policy and implementation levels.

Notwithstanding these challenges, the recently published Sustainable Aviation Fuel Road Map19 notes that:

Australia and New Zealand are in a strong position with respect to potential bio-derived fuel production. Based on available data it is conservatively estimated that within one decade the region has the potential to supply almost half of the local aviation sector’s fuel needs from biomass and supply all its needs over the long term as various novel resources and production systems become more established.

The Australian Government has committed to work with the Biofuels Association of Australia (BAA), Bioenergy Australia and Standards Australia to develop internationally agreed sustainability criteria that can be applied to biofuels and bioenergy. The BAA, through Standards Australia, is seeking to move Australia from observer to participant status in ISO TC248 – Sustainability Criteria for Bioenergy.

The Government considers this action will ensure that support for biofuels does not compromise sustainable production practices but will provide greater impetus for initiatives such as advanced generation biofuels.

Figure 4. Environmental, social and economic aspects of bioenergy production contributing to the ‘sustainability’ concept.

Some examples of each aspect are given highlighting the different spatial and temporal scales and impacts of respective components.20

• Employment• Landissues• Smallholderintegration• Foodsecurity

Sustainability

• Energysecurityandself-sufficiency• Balanceofpayments• Financing• Fuelcosts

• GHGemmissionsandairquality• Soilquality• Wateruseandquality• Biodiversity

Social Environmental Economic

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Realising bioenergy’s potential in AustraliaTo stimulate investment on the scale required to realise the potential for deployment of sustainable bioenergy in Australia will require cross-sectoral and primary industries-specific actions21:

• Creation of stable, long-term, national policy frameworks to increase investor and supplier confidence and allow for the sustainable expansion of bioenergy production, including:

− The Government’s Plan for a Clean Energy Future, including a national carbon price, promoting innovation and investment in renewable energy, encouraging energy efficiency and creating opportunities in the land sector to cut pollution.

− The Renewable Energy Target (RET) scheme, designed to deliver on the Government’s commitment to ensure that 20 per cent of Australia’s electricity supply will come from renewable sources by 2020.

− Alignment of low-emission energy and primary industries development policies through promotion and coordination by key agencies such as the Standing Council on Energy and Resources (SCER) and PISC.

• Support for national and international collaboration on capacity building and technology transfer to promote the adoption of sustainable bioenergy production locally and globally, including:

− Engagement and involvement of key primary industries stakeholders for their key role in biomass feedstock supply.

• Continuation of the development of internationally agreed sustainability criteria in the implementation of sound certification schemes for bioenergy

(particularly biofuels) and related land-use policies on a national level. Without creating trade barriers, especially for developing countries, the certification schemes should facilitate the adoption of sustainable land-use management systems that aim to ensure all agricultural and forestry land is comprehensively managed in a balanced manner avoiding negative indirect land-use change and supporting the wide range of demands in different bioenergy sectors. Specifically certification should support development of:

− Integrated land use systems that provide for sustainable biomass production, whilst continuing to meet social, production and environmental objectives;

− Policy mechanisms to support adoption of these systems; and

− Biomass handling systems to facilitate efficient collection, transport and processing of biomass.

• Sustained funding and support mechanisms at the research, development, demonstration and deployment levels to enable promising advanced bioenergy (particularly biofuel) technologies to reach commercial production within the next 10 years and to prove their ability to achieve cost and sustainability targets, including:

− Increasing efforts on locally applicable biomass feedstocks (technical characteristics, supply potential, costs, integration with target conversion technologies), land availability mapping and co-production benefits (e.g. soil protection, carbon storage) in order to identify the most promising feedstock types and locations for future scale-up in Australia and integration into farming and forestry systems.

Increasing efforts on promising conversion technologies, including adoption and adaption of overseas developed technologies to Australian conditions in order to fast-track commercial deployment in Australia.

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Funding Bioenergy RD&E ActivitiesA number of initiatives and programs are underway to support Australian bioenergy RD&E.

The National Collaborative Research Infrastructure StrategyThe NCRIS Program has funded strategic research and pilot scale manufacturing facilities, available to researchers, which are focused on advanced generation ethanol and biofuels from algae.22

Rural Industries Research and Development CorporationOver the last decade RIRDC23 has initiated and co-sponsored a wide variety of RD&E projects and studies into various aspects of bioenergy and currently has a program specifically related to bioenergy activities (Bioenergy, Bioproducts & Energy).24

Commonwealth Scientific and Industrial Research OrganisationCSIRO’s bioenergy activities involve a team of approximately 30 people working across the bioenergy value chain, include technology development, sustainability investigations, plant and microbial

genetics, and appraisals of biomass sources for use as bioenergy feedstocks.

Department of Resources, Energy and Tourism In recognition of the need to develop a sustainable biofuels industry and to move away from any potential impacts on food supply and prices, the Australian Government established the $15 million Second Generation Biofuels Research and Development Program (Gen 2), which supports the research, development and demonstration of new biofuel technologies25. DRET is the lead agency funding and supporting the activities of ACRE and ABRI (see below) and the newly announced Australian Renewable Energy Agency (ARENA). 26

Australian Renewable Energy AgencyAlso under the Plan for a Clean Energy Future, the Government has announced a new independent Australian Renewable Energy Agency to streamline and coordinate the administration of $3.2 billion in existing support for R&D, demonstration and commercialisation of renewable energy technologies.

3. Bioenergy industries resource analysis

Woodchips

8

Australian Centre for Renewable Energy

ACRE has two forthcoming programs: the Renewable Energy Venture Capital fund ($100 million), which will support venture investment in a range of commercially-prospective renewable energy (including bioenergy) companies; and the Emerging Renewables Program ($100+ million), which will support meritorious renewable (including bioenergy) demonstration projects.

Australian Biofuels Research InstituteABRI has been allocated $20 million to support meritorious biofuel development and commercialisation projects. This includes a $5 million foundation grant for James Cook University (Queensland), which specialises in algal fuels research and development. An establishment council consisting of prominent members of the academic community, industry and government has been appointed to guide a Biofuels Economics Study that is being conducted by an independent consultant and to develop recommendations regarding the parameters of the new institute.

Department of Agriculture, Fisheries and ForestryBioenergy projects are being considered under the $5 million Forest Industries Climate Change Research Fund administered by DAFF. This fund aims to address major knowledge gaps about the impact of climate change on forestry and Australian forest industries. DAFF is also investing $1.4 million into biochar research under the Climate Change Research Program, which is a part of Australia’s Farming Future – the Australian Government’s major climate change research program for Australia’s primary industries. This research project will help understand this emerging technology and draw together Australian and international experts in areas of biochar, soil science and emissions management in order to address uncertainties about its use.

Clean Energy Finance CorporationAs part of the Australian Government’s Plan for a Clean Energy Future, the Australian Government will establish a $10 billion Clean Energy Finance Corporation that will invest in the commercialisation and deployment of renewable energy, energy efficiency and low pollution energy technologies. The CEFC will be independent from the Government and will play a vital role in unlocking significant new private investment into clean energy projects through a variety of funding tools

including loans and equity investments.

Carbon Farming Futures Fund – Filling the Research GapThe Australian Government has also announced a new $201 million program, Filling the Research Gap, which will provide competitive grants funding to support research into emerging abatement technologies, strategies and innovative management practices that improve soil carbon and reduce greenhouse gas emissions and enhance sustainable agricultural practices. This program is part of the Carbon Farming Futures Fund which will deliver $429 million over six years to help farmers and other landholders benefit from financial opportunities under the Carbon Farming Initiative.

Clean Technology Innovation ProgramThe Australian Government will support innovation through the $200 million Clean Technology Innovation Program by providing grants over five years to support business investment in R&D in the areas of renewable energy, low pollution technology and energy efficiency. This funding will be in addition to the broader R&D tax concession and will help Australian businesses creatively work towards a clean energy future

State GovernmentsAustralian State governments are supporting a range of bioenergy related projects under particular renewable energy programs, such as:• Western Australia has supported bioenergy as part

of its long-term initiative to establish commercially viable tree crops in wheat belt areas prone to salinity;

• New South Wales (Department of Primary Industries) has undertaken studies on options for lignocellulosic feedstocks, the mitigation benefit of utilising forest residues for electricity generation, the impact of soil carbon stock change on mitigation benefits of bioenergy, and mitigation through utilisation of biochar as a soil amendment.

• Queensland (DEEDI) has recently released a bioindustries discussion paper Strategic directions for development of the Queensland bio-based industrial products sector.27

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The total funding of $117.2M includes cash and in-kind contributions

Resource analysisTo assist the development of this RD&E strategy for bioenergy, an analysis of the national investment in the field over the three years to 2010 was undertaken. The data for the analysis were collected from all research organisations, including all universities, known to have any possibility of involvement in biofuel or bioenergy RD&E.

Cumulatively, cash and in-kind resources of approximately $117 million have been invested into biofuel and bioenergy projects across Australia during the period 2007-2010 (Figure 5). The Australian Research Council (ARC), AusIndustry, DRET and State Government departments dominate (55% of total funding) the public sector investment during this period.

More than 95% of this cumulative funding has been applied to RD&E projects in three areas:

• biofuel conversion technologies ($50.4 million, with a strong focus on conversion of lignocellulose to ethanol);

• electricity/heat production technologies ($9.4 million, particularly anaerobic digestion of wastes and electricity/heat generation using the produced methane); and

• feedstocks ($53.9 million, particularly sugar, algae and woody plants/fibre).

Figures 5 to 10 provide detail on the sources and application of bioenergy related RD&E funding for 2007-10.

Figure 5 . Sources of funding for bioenergy related RD&E for the period 2007-10 across Australia.

State Departments

8.1%Universities

3.0%CSIRO 5.9%

RDCs 3.0%

Unknown0.9%

ARC19.4%

AusIndustry16.2%

DRET11.5%

Private25.8%

Other Government

6.1%

All projects – total funding $117,221,766 (over 3 years)

10

Figure 6. The investment of various State Departments, universities and other research organisations (by State) for the period 2007-10 in bioenergy related RD&E programs.

New South Wales3.0%

Queensland97.0%

Northern Territory 0.0%Tasmania 0.0%

Victoria 0.0%Western Australia 0.0%

South Australia 0.0%

Tasmania1.2%

Victoria10.6%

Western Australia14.7%

New South Wales3.0%

Northern Territory0.1%

Queensland56.8%

Northern Territory 0.0%New South Wales 0.0%

South Australia 0.0%Tasmania 0.0%

Tasmania 0.0%Northern Territory 0.0%

Victoria 0.4%South Australia 1.7%

Northern Territory 0.0%

Tasmania 0.6%South Australia 0.5%

Western Australia 1.7%Victoria 1.9%

Biofuels projects Electricity/Heat projects

Feedstock projects Biorenery and bioproducts projects

Policy/Sustainable projects


Victoria47.1%

Queensland13.0%


New South Wales15.4%

Queensland42.3%

Queensland32.9%

New South Wales59.3%

11

Figure 7 . The breakdown of funding for biofuel projects for the period 2007-10 ($50.3M cash and in-kind in total).

Figure 8. The breakdown of funding for electricity and heat projects for the period 2007-10 ($9.4M cash and in-kind in total).

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Figure 9. The breakdown of funding for feedstock projects for the period 2007-10 ($53.9M cash and in-kind in total).

Figure 10. The breakdown of funding for policy and sustainability ($1.1M) and biorefinery projects ($2.5M) for the period 2007-10 (cash and in-kind contributions).

To place Australia’s investment in bioenergy research, development and demonstration at least partially in context with international capacity, analysis of the United States Department of Energy’s (DOE) biomass program shows that, relatively, Australia’s investment in bioenergy innovation is modest in comparison to total public and private sector investment, in dollar terms, in the USA. And of course there is other significant global investment, particularly in the EU. As stated

in the DOE’s Biomass Multi-Year Program Plan28, “From the 1970s to the present, DOE has invested over $3.7 billion (including more than $900 million in [American Recovery and Reinvestment Act] funds) in a variety of [research, development, demonstration and deployment] programs covering biofuels (particularly ethanol), biopower, feedstocks, municipal wastes, and a variety of biobased products.”

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13

Current RD&E Priorities and GapsTo guide and supplement existing Australian bioenergy RD&E several review processes have been undertaken led by RIRDC and CSIRO.29, 30 From these processes a conceptual generic RD&E framework for biofuels was further developed (Figure 11) to facilitate and promote investment. These frameworks assist with the determination of program priorities (e.g., RIRDC Bioenergy, Bioproducts & Energy program). The framework developed by O’Connell & Haritos (2010) in Figure 11 is essentially the same as the key issues identified and modelled in this PISC process from the

original workshop in 2009 and subsequent presentations and interaction with industry at subsequent Bioenergy Australia meetings and conferences. This interaction with stakeholders, facilitated through Bioenergy Australia and guided by the steering group then utilised the available resource information (displayed as Figures 5 – 10) to identify and prioritise existing RD&E gaps. Due to recent Australian Government announcements (see Section 3 above) there are several as yet unpublished reviews underway regarding renewable energy and climate change. Some of these reviews (e.g. ACRE review due in late 2011) will have a direct impact on bioenergy activities and will significantly assist the Forum direction and discussion.

Figure 11. Conceptual bioenergy RD&E framework31

Bioenergy operates across a wide range of industries and sectors, this can lead to a range of complex and competing areas that require RD&E investment. This conceptual framework can be useful for targeting RD&E investment by individual research organisations, sectors, industries or governments and as an aid in collaboration to achieve a more comprehensive effort. For bioenergy to be considered as a genuine contender for providing a major contribution to our future energy supply mix without creating unintended challenges to sustainability, then all aspects of this RD&E framework

must be dealt with at a national level. While there has been a significant increase recently in proposed funding of bioenergy related activities, it is still significantly less than the annual expenditure on established fossil fuel industries. Funding should be at least comparable in magnitude for serious alternatives to fossil fuels to become established.

Biomass resources Transport and preprocessing Multiple conversion technologies Product development Market

Current production base• Diversionofcommodities• Useof‘waste’• Minorchangesinmanagement• ChangeinharvestregimeFuture production base• Expensionofproductionareas(landusechange)• Newspeciesandvarieties• Novelsources(e.g.,algae)

• Newsupplychains• Harvestscheduling• Prepreocessingtechnologiesand costs• Transportdistanceversus preprocessing(trade-offs)

• Leadingtechnologiesfor second-generationbiofuels• Technicalandeconomicbarriers toscale-upofproduction• High-valuecoproductsand biorefineries

• Identificationofproducts anduses• Cost-effectiveseparationand conversion

• Pathwaystomarket• Marketandcompetitor analysis• Barrierstosuccess

Matching feedstock production systems to conversiontechnologies• NewinvestmentinR&Dversusadoptingexistingtechnology• Singleversusmultiplesourcesofbiomass• EconomiesofscaleIargeandsmall-scaletomatchdistributionoffeedstockandtechnology

Matching new fuels and combustion technologies• Establishedbiofuelsusedinfuelblends• Developmentofnewbiofuels• Strategicalignmentwithnewengineandcombustiontechnology

Sustainability• Economicviabilityofeachsegmentpluswhole-valuechain• Communitiesofconsentanda‘licensetooperate’• Sustainabilityissuesalongthevaluechain(localandglobal,directandindirect)• Assessmentsystemsforsustainability

Communication and information dissemination• Purpose,vormsofcommunication,coordinationandintegration

Capacity building• Multidisciplinaryresearchwithcross-sectoralreach• Rolesforprofessionalandeducationalinstitutions

Integration

14

Table 1 . Bioenergy RD&E priorities, gaps and actions for consideration by the Forum and specific Technical Working Groups.

Primary Industries RD&E Priorities RD&E Gaps Actions

Sustainability1. Continue to understand the significant sustainability

issues and basic science, e.g., understanding of carbon balance in bioenergy systems; water management, ‘Food versus Fuel’.

2. Review national and international development in the approaches to addressing and documenting sustainability relevant to production of bioenergy products in Australia, including relevant government policies and pathways to adoption of future sustainability guidelines.

3. Develop and test processes and methods for assessing sustainability across scales, regions and particular configurations of industry.

4. Undertake Life Cycle Assessments and develop Life Cycle Inventories using common ISO standard methods.

2, 3 & 4 Development of a Forum and paper to inform policy on biomass/bionergy sustainability for policy makers. Establish a Technical Working Group to co-ordinate and where appropriate implement the RD&E work program to:

• address key sustainability issues (e.g., criteria harmonisation; development of LCA, competition for resources)

• coordinate reviews of national and international activities

• participate in developing processes and criteria for bioenergy production

Feedstocks1. Compare and develop options for increasing

sustainable feedstock production through:

• Continued identification of suitable species.

• Identifying and modifying existing crops to improve yield for different regions of Australia – e.g., new oilseed perennials, grasses, algae, trees and indigenous species, including their costs of production.

• Assessing sustainability issues (including effect of removal of crop and forest residues on ecosystem carbon, and biodiversity as well as cost of production) for new and existing production systems.

• Assessing and developing suitable sustainable farming and production systems which complement other land uses (such as integrating with food production crops and systems) e.g., changing the management of harvest regimes of existing production systems, expanding current production systems to new areas, creating new and novel production systems. Ensuring a balanced portfolio (and limited number) of short and long term/high risk and low risk potential crops.

2. Characterise material properties of novel feedstocks, their variation and suitability for next generation processing opportunities.

3. Identify regions for the sustainable growing of bioenergy/biofuel crops and integrated biomass production (including the impacts of expanding production of lignocellulosic crops), in particular underutilised and low productivity land.

All priorities still have gaps. Limited RD&E in this area relative to strategic importance, opportunity and capacity.

Need to develop the opportunity for specific demonstration projects.

Establish a Technical Working Group to co-ordinate and where appropriate implement the RD&E work program to:

• Identify existing feedstock gaps (e.g., species and farming systems; characterisation of novel feedstocks)

• Collate and communicate key industry needs (e.g., sustainable production limits) and opportunities

• Further opportunities for targeted RD&E focussing on understanding regional opportunities

15

Primary Industries RD&E Priorities RD&E Gaps Actions

Supply Logistics1. Investigate the scales of economy, logistics and costs of

harvesting, storage and processing, risks and suitability of distributed as compared to centralised biomass conversion systems.

2. Investigate use of existing or development of small modular processing plant for distributed production of products &/or energy.

3. Investigate partial local processing options (especially densification) for the most promising new feedstock systems (e.g., harvesting and briquetting/pelletising technology).

4. Identify infrastructure requirements, supply logistics and transitions for regional processing and distribution.

All priorities are gaps. Some RD&E in this area but more work required.

Need specific demonstration projects.


Review existing activities regarding logistics (e.g., CRC Forestry projects) to identify specific gaps

Identify international activities for applicability to Australian systems to improve efficiencies and reduce costs (e.g., densification technologies)

Policy analysis1. Investigate policy mechanisms which steer the industry

towards sustainable development.

2. Develop a strategy for informing policy development.

1 is a gap. Some work, but more needed.

Need a suite of papers to inform policy. Need to ensure consistency with IEA Bioenergy work in this area.


1. Assess the current opportunity and applicability of bioenergy in addressing energy, climate and primary industries policies

2. Communicate internationally related policy developments (e.g., through IEA Bioenergy activities)

3. Provide succinct information to assist development of appropriate bioenergy policy

Outreach, capacity building and networking1. Maximise the research networking, coordination and

information-brokering role of key organisations such as Bioenergy Australia.

2. Identify capacity shortages or barriers to industry development, and develop appropriate strategies to address them.

3. Further enhance the networking with industry, government and researchers.

1 & 2 are gaps.

Research available skills against expected requirements for bioenergy.

1. The TWGs will provide relevant information (content) to the Forum regarding specific bioenergy outcomes

2. The Forum will facilitate the communication and extension of the technical material (content) especially via established bioenergy industry partners and networks including RIRDC, BEA, BAA & CEC.

3. Through the Forum contributing research agencies will provide information regarding the opportunities and constraints in developing required skills to optimise industry development and efficiency

4. The Forum will communicate back to PISC the issues and ‘roadblocks’ facing RD&E providers and suggested solutions

16

Capability (Human and Infrastructure) AnalysisThe following analysis was carried out by the Steering Committee using data collected in the resource analysis, previous reviews and tacit knowledge to map human and infrastructure capability against industry priorities.

Table 2. Capability analysis regarding key priority bioenergy RD&E areas.

Priority Capability Availability CommentsSustainability Yes No • There is good capability, but it is often required to

work in other areas (e.g., water and climate change).• CSIRO and some universities have good capability,

but it is unavailable for the above reason.• Some capability in the States, but again have to

balance other priorities.• Limited extension capacity.• A skills audit is required to improve understanding

of capacity.• Limited skills in LCA. Need standard tools and data

sets (e.g., development of the AusLCI32).Feedstocks Not enough No • Shortage of specific bioenergy-related agronomy

expertise.• There is an availability of foresters, but they are still

developing a specific understanding of biomass for bioenergy systems.

• Shortage of entomologists and pathologists in regional areas.

• The pulp and paper industry decline may provide infrastructure and people.

Supply Logistics Yes Not at this stage. • Highly capable people in fuel, mining, private enterprise, that may be able to adapt to this new industry.

• Availability is currently restricted, as good money available elsewhere.

• Above capability good in supply logistics, transport, but lacking in harvesting and processing. This expertise may need to be sourced internationally.

Policy Yes Yes • Expertise within state and federal government departments, as well as private consultants, but the ‘churn’ of staff can be an issue for long-term issues and developments.

• Knowledge and liaison is improving over time with the realisation of the potentially important role of bioenergy in the future.

Outreach, capacity building and networking

Partly Partly • Bioenergy Australia is the main outreach Forum for the bioenergy sector.

• Some state departments provide bioenergy extension networks.

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4. Improving the coordination of bioenergy R,D&E

VisionThrough development of this strategy and the actions identified our Vision is:

That Australian primary industries benefit from the growth of a local bioenergy sector that profitably and sustainably contributes to the mitigation of climate change and long term risks of Australian energy security.

To achieve our Vision this strategy aims to consolidate strategic issues and focus potential investment into this fast-moving field and facilitate the development of globally recognised research and active education and extension to assist with industry development. The strategy focuses on the role of primary industries in the provision of feedstocks into bioenergy industry supply chains.

The Need for Greater RD&E CoordinationThere is a need for greater coordination of bioenergy RD&E in Australia. The process of the Forum supported by Technical Working Groups (see below)

will have two specific aims:

1. Development and implementation of strategic direction (i.e., ensure effective work is carried out);

2. Minimise overlap and maximise communication (i.e., ensuring efficiency in delivery).

Whilst instances of duplication of RD&E are not prevalent, increased coordination and collaboration could better utilise the available capability and resources for improved outcomes.

Australia’s bioenergy industry is relatively immature, and is significantly dependent for its sustainable growth on the stability and direction of future policy decisions and technological advances. Bioenergy technology development generates high levels of intellectual property (IP), and involves a high level of private sector investment into cutting edge innovation. The commercial nature of a large percentage of RD&E for this sector presents difficulties for collaboration, which need to be examined further.

Bioenergy is a more complex sector than other new agricultural industries. The primary industries aspects of bioenergy (i.e., production of biomass feedstocks and their pre-processing for transport), as crucial as they are

18

in the bioenergy value chain, are just the beginning of a complex, industrial value chain that results in energy production for a range of stationary and transport applications.

Adding further complexity are the sustainability challenges across social, environmental and economic dimensions (Figure 4). Bioenergy systems have the capacity to address environmental issues (e.g., reduced reliance on fossil fuels) and social aspects (e.g., regional development), but to meet these goals requires further understanding and development of optimum feedstock selection and management of the value chain from growing to harvest, transport and processing. Sustainability issues need to be further understood to give the ‘social licence to operate’ for bioenergy systems (i.e., prove that bioenergy systems are not only sustainable in their own right, but contribute to larger social and environmental aspects of sustainability).

Flexible strategies and coordination mechanisms are required to allow for rapid changes in technology and policy. The importance, and challenge, of aligning and coordinating COAG’s new Primary Industries Standing Committee (PISC) and the Standing Committee on Energy and Resources (SCER) in their consideration of bioenergy supply/value chain opportunities and challenges thus cannot be overstated.

An RD&E Advisory Forum for Primary Industry Opportunities in BioenergyThere is a clear need for an RD&E Advisory Forum to align policies and RD&E activities relevant to primary industry stakeholders in order to maximise returns to them from their involvement/investment in bioenergy supply chains. The Forum needs to have a primary industries focus while recognising the importance of coordination among and communication with related energy sector stakeholders.

The Forum will be coordinated and supported by RIRDC, and include representatives from relevant Primary Industries Standing Committee (PISC) agencies, universities, CSIRO, federal agencies and funding bodies (including Research and Development Corporations) and primary industries. The bioenergy industry will also be represented in order to address industry-specific needs and to align operation of primary industries to the opportunities in the bioenergy sector. Membership will be voluntary. Active participation will provide opportunities to negotiate RD&E that

will benefit individual research institutions as well as primary industries as a whole. The National RD&E Framework principle of national R, and regional D&E, will guide the activities of the Forum.

After an initial planning and consolidation phase, the Forum will meet as required to guide and coordinate potential collaborations. PISC agency financial commitment to this strategy will be in the form of providing representation to the Forum. RIRDC will plan and facilitate these meetings and where suitable they will be held in conjunction with industry-based activities (e.g., Bioenergy Australia meetings or conferences).

Within the Forum a series of Technical Working Groups (TWG) will be developed. These groups, with specific expertise, will be voluntary and will develop the specific actions identified in Table 1 and report to the Forum on progress as well as seek guidance concerning activities and outcomes. Each TWG will have an identified Leader to coordinate activities and meet with the Forum as required. It is expected that most activities will be carried out via remote working relations (e.g., webinars and teleconferences) to minimise transaction costs. The role of the TWGs will be significantly influenced by developing policy activity and programs expected during 2011-12.

Advisory Forum’s Proposed Terms of ReferenceIt is proposed that the terms of reference for the Forum are to:• Provide national coordination among primary

industry stakeholders and facilitate consultation and communication amongst Australian research providers, funders, industry and government agencies focused on bioenergy RD&E activities.

• Encourage and facilitate collaboration and knowledge sharing in order to achieve greater efficiencies in use of resources and growth in capability.

• Establish Technical Working Groups to develop RD&E work programs addressing each of the identified priority areas. These work programs will help determine coordination and collaboration actions.

• Provide input and representation to high-level decision-making relevant to the bioenergy sector, including encouragement of increased funding and

19

resources for relevant RD&E activities through methods such as analysis of existing/baseline activities and ongoing cost benefit analyses.

• Lead and coordinate the communication of RD&E outcomes to primary industries, the general public and policy makers.

• Coordinate and interact with the other sector and cross-sector National RD&E Strategies, and specifically those with expressed interests in bioenergy-related opportunities.

• Increase collaboration with non-primary industry sectors, including relevant Standing Committees and Federal/State agencies and initiatives.

• Examine and further develop opportunities for international collaborations and innovation sharing that will benefit the Australian bioenergy industry.

• Update this National RD&E Strategy, including RD&E priorities, every three years through consultation with industry and researchers.

Communications and ExtensionThere is a substantial body of knowledge developed nationally and internationally in bioenergy. Information for communication and extension activities can, and must, be drawn from this knowledge base and transferred to Australian primary industries stakeholders about the opportunities and challenges for them to participate in the growing local bioenergy industry. The TWGs will work to integrate Australian expertise with international knowledge and networks (e.g., IEA Bioenergy via Bioenergy Australia) and the Forum will facilitate communication (Table 1 – Outreach, capacity building and networking).

Implementation StepsThe next steps in the implementation of this RD&E Strategy set out in Table 3.:

Table 3. Implementation plan timeframe

Delivery date Action ResponsibilityNov 2011 Strategy approved by PIMC NSW DPI & RIRDCDec 2011 Negotiate representation for the Advisory Forum RIRDCMar 2012 First Advisory Forum meeting. Major activities include:

• Finalise terms of reference and governance arrangements

• Confirm applicability and currency of bioenergy industry RD&E priorities relevant to primary industries

• Develop a reporting framework

• Refine and expand on current coordination negotiations

• Establish the framework for the Technical Working Groups and call for nomination to lead these groups

• Develop a schedule for further Advisory Forum activity

Advisory Forum

Dec 2012 Second Advisory Forum meeting

• Report against framework for PISC

• TWGs – First report regarding program outline, project scoping and timelines and way to progress

20

1. http://www.daff.gov.au/agriculture-food/innovation/national-primary-industries; accessed August 2011.

2. http://www.ieabioenergy.com/OurWork.aspx, accessed July 2011.

3. Cherubini, F.; Jungmeier, G.; Wellisch, M.; Willke, T.; Skiadas, I.; Van Ree, R.; de Jong, E. (2009). Toward a common classification approach for biorefinery systems. Biofuels, Bioproducts and Biorefining 3(5): 534-546.

4. Bauen, A.; Berndes, G.; Junginger, M.; Londo, M.; Vuille, F.; Ball, R.; Bole, T.; Chudziak, C.; Faaij, A.; Mozaffarian, H. (2010). Bioenergy – A sustainable and reliable energy source. A review of status and prospects. pp. 108. International Energy Agency Bioenergy.

5. Alm, M.; Cato, J.; Lundmark, L.; Myrman, J.; Raab, U.; Karlberg, M.; Karlsson, T.; Jöhnemark, M.; Bohnstedt, S.; Petersson, K.; Sahlin, K.; Berggren, T.; Bäck, M.; Sahlin, M.; Linder, E.; Bäck, M.; Wagman, N.; Sahlin, M.; Lindberg, C.; Parikka, M.; Kärrmarck, U.; Veibäck, E.; Östensson, E. (2009). Energy in Sweden: facts and figures. (Table 10) pp. 56. Stockholm, Sweden: Swedish Energy Agency.

6. Clean Energy Council (2008). Australian Bioenergy Roadmap: Setting the direction for biomass in stationary energy to 2O2O and beyond.

7. http://www.orer.gov.au/publications/pubs/ORER_booklet.pdf; accessed June 2011.

8. Impacts of Changes to the Design of the Expanded Renewable Energy Target, Report to Department of Climate Change and Energy Efficiency. http://www.climatechange.gov.au/government/initiatives/~/media/publications/renewable-energy/mma-modelling-report.ashx; accessed June 2011.

9. Department of Resources, Energy and Tourism, Australian Petroleum Statistics, Issue No. 179 (Table 3A), August 2011.

10. http://www.aquacarotene.com.au; accessed July 2011.

11. http://www.australianspirulina.com.au/index.html; accessed July 2011.

12. http://www.bioenergyaustralia.org; accessed July 2011.

13. http://www.biofuelsassociation.com.au; accessed July 2011.

14. http://www.cleanenergycouncil.org.au; accessed July 2011.

15. Australian Business Roundtable on Climate Change (2006). The Business Case for Early Action.

16. http://ec.europa.eu/energy/renewables/biofuels/sustainability_schemes_en.htm; accessed August 2011.

17. O’Connell, D.; Braid, A.; Raison, J.; Handberg, K.; Cowie, A.; Rodriguez, L.; George, B. H. (2009). Sustainable Production of Bioenergy: A review of global bioenergy sustainability frameworks and assessment system. pp. 164. Canberra, Australia: Rural Industries Research & Development Corporation 167/09.

18. PMSEIC (2010). Challenges at energy-water-carbon intersections. pp. 88. Canberra, Australia: Prime Minister’s Science, Engineering and Innovation Council.

19. CSIRO Energy Transformed Flagship (2011). Flight path to sustainable aviation: Towards establishing a sustainable aviation fuels industry in Australia and New Zealand, http://www.csiro.au/resources/sustainable-aviation-fuel-report.html; accessed June 2011.

20. International Energy Agency (2010). Technology Roadmap: Biofuels for Transport. http://www.iea.org/papers/2011/biofuels_roadmap.pdf; accessed July 2011.

21. Adapted from recommendations made in the International Energy Agency’s Technology Roadmap: Biofuels for Transport, 2011.

22. http://www.ncrisbiofuels.org/facilities; accessed July 2011.

23. http://www.rirdc.gov.au; accessed July 2011.

24. http://www.rirdc.gov.au/RIRDC/programs/new-rural-industries/bioenergy-bioproducts-and-energy/bioenergy-bioproducts-andenergy_ home.cfm; accessed July 2011.

25. http://www.ret.gov.au/Department/archive/cei/second_generation_biofuels_research_and_development_program/Pages/SecondGeneration BiofuelsResearchandDevelopmentProgram.aspx; accessed July 2011.

26. On 10 July 2011 the Australian Government announced its Cleaner Energy Future policy. For details see http://minister.ret.gov.au/ MediaCentre/MediaReleases/Pages/InnovationandRenewableEnergy.aspx, accessed July 2011.

27. http://www.industry.qld.gov.au/documents/AlternativeRenewablefuels/strategic-direction-biobased-fuel.pdf, accessed July 2011.

28. http://www1.eere.energy.gov/biomass/pdfs/mypp_april_2011.pdf, accessed June 2011.

29. O’Connell, D.; Batten, D.; O’Connor, M. et al. (2007). Biofuels in Australia: issues and prospects. RIRDC Publication Number 07/071.

30. O’Connell, D.; Haritos, V.; Graham. S.; et al. (2007). Bioenergy, bioproducts and energy – a framework for research and development. RIRDC publication number 07/178.

31. O’Connell, D.; Haritos, V. S. (2010). Conceptual investment framework for biofuels and biorefineries research and development. Biofuels 1(1): 201-216.

32. http://www.auslci.com.au; accessed August 2011.

Footnotes

http://www.orer.gov.au/publications/pubs/ORER_booklet.pdf

http://www.climatechange.gov.au/government/initiatives/~/media/publications/renewable-energy/mma-modelling-report.ashx

http://www.bioenergyaustralia.org

http://www.biofuelsassociation.com.au

http://www.cleanenergycouncil.org.au

http://www.csiro.au/resources/sustainable-aviation-fuel-report.html

http://www.iea.org/papers/2011/biofuels_roadmap.pdf

http://www.ncrisbiofuels.org/facilities

http://www.rirdc.gov.au/RIRDC/programs/new-rural-industries/bioenergy-bioproducts-and-energy/bioenergy-bioproducts-andenergy_home.cfm

http://www.rirdc.gov.au/RIRDC/programs/new-rural-industries/bioenergy-bioproducts-and-energy/bioenergy-bioproducts-andenergy_home.cfm

http://www.ret.gov.au/Department/archive/cei/second_generation_biofuels_research_and_development_program/Pages/SecondGenerationBiofuelsResearchandDevelopmentProgram.aspx

http://www.ret.gov.au/Department/archive/cei/second_generation_biofuels_research_and_development_program/Pages/SecondGenerationBiofuelsResearchandDevelopmentProgram.aspx

21

Endorsements

Australian Government Department of Agriculture, Fisheries and Forestry ..............................................22

Bioenergy Australia .......................................................................................................................................23

Commonwealth Scientific and Industrial Research Organisation ..............................................................24

Department of Economic Development, Tourism and the Arts - Tasmania ..............................................25

Department of Agriculture and Food Western Australia .............................................................................26

Department of Employment Economic Development and Innovation - Queensland ................................27

Department of Primary Industries Victoria ...................................................................................................28

Department of Resources, Energy and Tourism .........................................................................................29

Northern Territory Department of Resources ...............................................................................................30

NSW Department of Primary Industries .......................................................................................................31

South Australian Research and Development Institute ..............................................................................32

Sugar Research and Development Corporation .........................................................................................33

University of Sydney .....................................................................................................................................34

22

Australian Government Department of Agriculture, Fisheries and Forestry

23

Bioenergy Australia

24

Commonwealth Scientific and Industrial Research Organisation

25

Department of Economic Development, Tourism and the Arts - Tasmania

26

Department of Agriculture and Food Western Australia

27

Department of Employment Economic Development and Innovation - Queensland

28

Department of Primary Industries Victoria

29

Department of Resources, Energy and Tourism

Endorsement Form

National Primary Industries Research, Development & Extension Framework

Agency Department of Resources, Energy and Tourism

Strategy BIOENERGY NATIONAL RESEARCH, DEVELOPMENT AND EXTENSION STRATEGY

Does this Agency have an interest in the Strategy? (Please circle)

Yes

No

Agency Position (please circle, and provide comments with options 2 and 3)

1. Endorsed

2. Endorsed with commentsEndorsed with acceptance of comments regarding energy security and noting that relevant work which may relate to the Strategy is still under way in RET.

3. Not endorsed

Signature block

Name Richard Niven

Position Manager, Transport Fuels

Signature

30

Northern Territory Department of Resources

Endorsement Form


Agency NORTHERN TERRITORY DEPARTMENT OF RESOURCES



Yes

No


1. Endorsed

2. Endorsed with comments

3. Not endorsed

Signature block

Name Rod Gobbey

Position Executive Director Primary Industries

Signature

31

NSW Department of Primary Industries

32

South Australian Research and Development Institute

33

Sugar Research and Development Corporation

Endorsement Form


Agency Sugar Research and Development Corporation



Yes

No


1. Endorsed: Annette Sugden


3. Not endorsed

Signature block

Name Annette Sugden

Position Executive Director

Signature

34

University of Sydney

Endorsement Form


Agency The University of Sydney

StrategyBIOENERGY NATIONAL RESEARCH, DEVELOPMENT AND

EXTENSION STRATEGY

Yes X


No


1. Endorsed X


3. Not endorsed

Signature block

Name Thomas Maschmeyer

Position Professor

Signature

35

36

Bioenergy is already making a substantial contribution to meeting global (including Australian) energy demand, and that contribution could be expanded very significantly in the future. However, bioenergy is a complex topic that crosses several important policy areas including:

• The long term risks to energy security – through improving the affordability, reliability and/or resilience of energy supply, particularly for liquid fuels where future oil prices and availability are uncertain.

• Greenhouse gas (GHG) abatement – through mitigation and displacement of fossil fuels, especially as emissions pricing becomes established (e.g., via the Australian Government’s recently announced Clean Energy Plan).



While primary industries will be the major suppliers of biomass feedstocks to the downstream producers of bioenergy products, primary industries are just the beginning of a complex, industrial value-chain that results in energy transformation for a range of stationary and transport applications.

There is a clear need for a Bioenergy RD&E Advisory Forum (the Forum) to align policies and RD&E activities relevant to primary industry stakeholders in order to maximise returns on their involvement and/or investment in bioenergy supply chains. The Forum will have a primary industries focus, whilst recognising the importance of coordination among and communication with related energy sector stakeholders.

Further InformationJulie BirdSenior Research Manager, National RD&E StrategiesRural Industries Research and Development Corporation

Ph: 02 62714140Fax: 02 62714199E-mail: [email protected]

Electronically published in August 2011 Print-on-demand by Union Offset Printing, Canberra at www.rirdc.gov.au or phone 1300 634 313RIRDC Publication No 11/079



http://www.rirdc.gov.au

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Opportunities for Primary Industries in the Bioenergy Sector• Establish Technical Working Groups...

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