Second Generation Biofuels and Biomass - Roland A. Jansen - E-Book

Second Generation Biofuels and Biomass E-Book

Roland A. Jansen

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Beschreibung

This guide to investing in the bioenergy market covers the topic from both a scientific, economic and political perspective. It describes the increasing number of second generation biodiesel projects which are now emerging in anticipation of growing sustainability concerns by governments, and in response to market demands for improved process efficiencies and greater feedstock production yields.

The book also closely examines the science and technology involved in second generation biofuels and gives concrete examples, such as in the aviation industry. The result is an essential guide for scientists, investors, politicians and decision-makers in the energy sector.

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Seitenzahl: 475

Veröffentlichungsjahr: 2012

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Contents

Acknowledgments

Abbreviations

Chapter 1: The Commodity Case – Introduction

1.1 Commodity Cycles – Past and Present

1.2 The Most Precious Commodity: Energy

1.3 Cheap and Expensive

1.4 Federal Reserve

1.5 Transformation to a Low-Carbon Society

1.6 Commodity Costs

1.7 The “Per Capita” Factor

1.8 Demographics: India and China

1.9 Oil, and First- and Second-Generation Biofuels

1.10 Nuclear Energy

1.11 Eleven Megaforces

1.12 Resource Wars

1.13 Geopolitical Shift in Oil Production

1.14 Oil Companies, Production, and Transportation

Chapter 2: First- and Second-Generation Biofuels

2.1 Second-Generation Requirements

2.2 Applications

2.3 First-Generation Feedstock: What Speaks against Biofuels of the First Generation?

2.4 Second-Generation Feedstock

2.5 Biomass

2.6 Bioethanol and Biodiesel Production

2.7 Biodiesel Refining

2.8 Benefits of Biodiesel

2.9 The Big Biofuel Inventors

Chapter 3: Biofuels Feedstock: Jatropha curcas

3.1 Characteristics

3.2 Jatropha Products

3.3 Advantages and Risks of Jatropha

3.4 Negative Aspects and Risks

3.5 Water Use

3.6 Invasiveness

3.7 Opinion of the UN FAO

3.8 Opinion of the World Bank

3.9 Code of Conduct

3.10 Summary of Jatropha

3.11 Where Does Jatropha Grow?

3.12 Genetic Improvement of J. curcas

References

Chapter 4: Other Biofuel Feedstocks

4.1 Pongamia pinatta

4.2 Algae

4.3 Palm Oil

4.4 Camelina

4.5 Crambe

4.6 Cheers!

4.7 Pennycress

4.8 Moringa

4.9 Castor

4.10 Halophytes

4.11 Sugarcane

4.12 Miscanthus

4.13 Grass to Ethanol: Napier Grass

Chapter 5: Cropping Methods

5.1 Intercropping and Double Cropping

5.2 Reliance Life Sciences

5.3 Nestlé

Chapter 6: Socially Responsible Investing

6.1 Principles

6.2 Practice: Jatropha curcas

6.3 Breaking the Cycle of Poverty

6.4 Food First

6.5 A Wider Context

6.6 Guatemala

6.7 Corporate Governance

Chapter 7: Sustainability

Chapter 8: Biomass

8.1 What Is Biomass?

8.2 Five Basic Categories

8.3 Benefits of Biomass

8.4 Feedstock of Biomass

8.5 Biomass Potential in Brazil

8.6 Sustainability of Agripellets

8.7 Agripellets versus Coal and Lignite

8.8 Energy Density: Gigajoules per Tonne

8.9 Why Is Biomass in High Demand?

8.10 EU Environmental Regulations: Poland

8.11 The Challenges

Chapter 9: Carbon Credits

9.1 Carbon is the Enemy

9.2 Jatropha Kerosene: A Monster Market Emerges

9.3 Carbon Reductions

9.4 Global Warming Around Us

9.5 Extreme Weather Patterns

Chapter 10: Biofuels in Europe – EU Policies

10.1 EU Policy in 2008

10.2 Heated Debates

10.3 National Policies

10.4 EU Rift in Biofuel Policy

10.5 Indirect Land-Use Change

10.6 Where Do We Stand Now?

Chapter 11: Biofuels in the United States

11.1 Biomass Demand in the United States

11.2 Second-Generation Biofuels for the United States

11.3 A Growing Shortage of Domestic Oil Production

11.4 Fuel Use at the USDA

11.5 Partnership with the FAA

Chapter 12: Biofuels in China

12.1 Clean Energy? Go to China

12.2 China is Going Green

12.3 China’s 12th 5-Year Plan

12.4 Inclusive Growth

12.5 The Beneficiaries

12.6 China’s Energy Consumption

12.7 Staggering Car Sales Numbers

12.8 China’s Diesel Pricing Mechanism

12.9 China–United States Biofuel Pact

12.10 China’s Biofuels Expansion

Chapter 13: Biofuels in Brazil

13.1 Introduction: Biofuel Industry Leader

13.2 Comparison with the United States

13.3 What is Driving the Urgency in Renewable Jet Fuel?

13.4 Biofuels from Sugarcane

13.5 Sugar Production

13.6 Ethanol Production and Flex-Fuel Cars

13.7 Bagasse, Bioelectricity, and Biofuels

13.8 Flex-Fuel = Biofuel

13.9 Fuel Consumption

13.10 Greenhouse Gas Reductions

13.11 Energy Balance

13.12 Sugarcane for Biofuels

13.13 Sugarcane Straw: A Growth Opportunity

13.14 Bioplastics

13.15 Biofuels and Public Health

13.16 Cautionary Notes

13.17 The Bottom Line

Chapter 14: Biofuels and Biomass in Africa

14.1 Dependency on Fossil Fuels

14.2 Africa’s Potential

14.3 Three African Examples

Chapter 15: General Aviation and Biofuels

15.1 Important Aviation Facts

15.2 Carbon Reduction of Carbon Dioxide Emissions

15.3 Biofuels – Providing Diversified Supply

15.4 Lifecycle of Carbon Dioxide

15.5 Green Aviation

15.6 Why Use Biokerosene?

15.7 Global Emissions of Carbon Dioxide

15.8 Sustainable Aviation Fuel Users Group

Chapter 16: Aviation and Carbon Credits

16.1 Greenhouse Gases

16.2 EU Emission Trading Scheme

16.3 Cap and Trade

16.4 Carbon in Chains

16.5 Biokerosene Targets

Chapter 17: Biokerosene

17.1 Airline Industry Lifts Biofuel Development

17.2 Safety

17.3 Ready for Take-Off – A Monster Market in the Making: Aviation Biofuels

17.4 Refining

17.5 Benefits

17.6 Jet Fuel Standards

17.7 Certification of Biofuels

17.8 ASTM

17.9 Intensive Testing

Chapter 18: Fermenting Fuels

18.1 New Generation

18.2 What are Hydrocarbons?

18.3 What are Enzymes?

18.4 What are “Drop-In Fuels”?

18.5 Converting Feedstock into Fuels

18.6 Cellulosic Ethanol

18.7 Biokerosene

Chapter 19: Airline Test Results with Biofuels

19.1 Air New Zealand

19.2 Qatar Airways

19.3 Japan Airlines Test Flight – Biofuels Tested: Jatropha, Camelina, and Algae

19.4 KLM – Biofuel Tested: Camelina

19.5 Continental Airlines

19.6 TAM

19.7 British Airways

19.8 The Milestone: Lufthansa’s Daily Flights

19.9 Cathay Pacific

19.10 Air China

19.11 Alaska Airlines

19.12 Aeromexico: First Transatlantic Biofuel Flight

Chapter 20: Investment Opportunities

20.1 The Opportunity of a Lifetime

20.2 Eight Ways to Invest in Biofuels and Biomass

20.3 Investments Check-Up

Chapter 21: Jatropha Projects, Research, and Joint Ventures

21.1 Waterland

21.2 KUOSOL: Repsol and KUO

21.3 SG Biofuels and Bunge

21.4 Shell and Brazil’s Cosan

21.5 JOil

21.6 Others

Chapter 22: The Future

22.1 Conclusions

22.2 From Nuclear to Renewable Energies

22.3 The Future of Waste

22.4 Future of Jatropha Feedstock

22.5 Future of Sugarcane

22.6 Low-Carbon Economy

22.7 Zero-Waste Economy

22.8 Our World in 2030

Glossary

Index

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The Author

Roland A. Jansen

Mother Earth Investments AG

Zürcherstrasse 37

8852 Altendorf

Switzerland

All books published by Wiley-VCH are carefully produced. Nevertheless, authors, editors, and publisher do not warrant the information contained in these books, including this book, to be free of errors. Readers are advised to keep in mind that statements, data, illustrations, procedural details or other items may inadvertently be inaccurate. The views of the author are his own and do not represent those of Wiley-VCH.

Library of Congress Card No.: applied for

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library.

Bibliographic information published by the Deutsche Nationalbibliothek

The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available on the Internet at <http://dnb.d-nb.de>.

© 2013 Wiley-VCH Verlag & Co. KGaA, Boschstr. 12, 69469 Weinheim, Germany

All rights reserved (including those of translation into other languages). No part of this book may be reproduced in any form – by photoprinting, microfilm, or any other means – nor transmitted or translated into a machine language without written permission from the publishers. Registered names, trademarks, etc. used in this book, even when not specifically marked as such, are not to be considered unprotected by law.

Printed in the Federal Republic of Germany

Print ISBN: 978-3-527-33290-8

ePDF ISBN: 978-3-527-65300-3

ePub ISBN: 978-3-527-65299-0

mobi ISBN: 978-3-527-65298-3

oBook ISBN: 978-3-527-65297-6

Acknowledgments

I want to thank the following people, who inspired me and have been instrumental to put me on the biofuel and biomass road, which enabled me to write this book:

Ben Sze from Hong Kong. In 2007, I was invited for an interview on the Asian channel of Bloomberg Television in Singapore to talk about renewable energies. I talked about this exotic plant called “Jatropha” and 5 minutes after the interview my BlackBerry rang. A voice said: “Hi, my name is Ben Sze. We have Jatropha plantations in China and I would like to meet you”! A little while afterwards we met in Hong Kong and we flew to Hainan, the beautiful island south of China where his company CPE Ltd. cultivates over 100 hectares of Jatropha nurseries in collaboration with the China–UN Development Program Green Poverty Alleviation Collaboration Project. This was a new world for me and from that moment on I was inspired and convinced that this plant could deliver not only energy, but also organic fertilizers on a giant scale. Ben Sze is extremely knowledgeable about Jatropha and has insight information how the government in Beijing plans its clean energy future. Ben moves very easily between Western and Chinese cultures, and is a great interpreter. He has been a partner and a loyal friend ever since.

Professor Feng Shang, PhD in Life Sciences at the University of Sichuan in Chengdu. His research team is developing a medicine, made out of Jatropha, against lung cancer. He is probably the best Jatropha scientist in China and a real authority. He closely linked to the renewable energy policy of the Beijing government. He inspired me very much.

Hans van den Berg is a private equity specialist in Zurich who has always helped me throughout the years.

Peter Poort, a grain specialist from Glencore Grain in Rotterdam, has always inspired me with “the big picture” and always gavin me his view from one of the big grain traders in the world.

Bloomberg TV has always given me room to communicate my commodity views live on the air in their programs worldwide. I have been interviewed in their studios in New York, London, Zurich, Singapore, Hong Kong, and Tokyo. Bloomberg always treated me extremely well.

Vital Kharoshi is one of the Jatropha pioneers in Ethiopia. With very modest means he develops Jatropha plantations where he gives employment to the poorest of the poor. He practices “intercropping”, and the farmers grow sorghum, tomatoes, coffee, and sesame between the Jatropha, and improve the quality of their lives. He inspired me about what you can achieve with simple means.

Frank ter Voorde is a very experienced palm oil trader and always has time to discuss the latest developments. I learned a lot from him about how the physical markets function.

Dr. Walter Ammann from Davos, Switzerland, Chairman of the Global Risk Forum. (www.grforum.org). Dr. Ammann organizes a large biannial conference on global risks, and he gave me a platform to speak about desertification, marginal land, erosion, its consequences, and planting Jatropha.

Lucas Bruggeman, an expert on derivative products in Zurich and one of the best marketers in Switzerland, always stimulated me in my development into renewable energies and introduced me to several decision makers in his network.

Stephan and Christiane Oberacher, my German partners with whom I learned the ins and outs of biomass, calorific values, and gigajoules.

Peter Berger, a well known journalist on financial matters, who brought me in contact with Wiley-VCH Verlag in Germany.

Dominique Menoud from Switzerland and living most of the time in Romania, who lives and dreams megawatts and kilowatts. She is a great connoisseur of the power industry and the best planner of renewable energy power plants I have ever met.

Dr. Julia Stuthe from Wiley-VCH Verlag in Germany, who guided me from the manuscript presentation to the publication of this book.

John Teo from Kuala Lumpur, who introduced me to important biofuel and biomass players in Malaysia.

Peter Möckli, CEO Sharewood Switzerland AG, an expert in wood and teak plantations in Brazil, who has always inspired me with new ideas.

Dr. Hong Yan, Chief Scientific Officer of JOil, the premier research company in Jatropha plant biotechnology in Singapore for the production of elite lines, development of tissue culture facilities, and nurseries. Dr. Hong Yan taught me a lot about the future of Jatropha as a source for clean energy.

Chris Niemandt, biofuel farmer in South Africa, who has always informed me from his tractor about the latest developments in the energy plantations.

The Bionas Management team from Kuala Lumpur: Mohd Safi’e M. Jaffri (Chairman), Zurina Amnan (CEO), and Khairil Anuar Bin Zainuddin (General Operations Manager). Bionas is probably one of the very few profitable companies in Jatropha worldwide and they showed me how it is done with contract farming in 13 countries.

My wife Anna, who always stimulated me into realizing this project. She always gives me new ideas, inspires me, is always realistic, critical, loyal, and a big support in life.

I dedicate this book to my children Laura and Vincent. As a singer, Laura Jansen is becoming a real star and she has a global audience today. She works very hard in composing beautiful music, she performsg on stage in the United States, Europe, and China, and never gives up her goals. You can follow her on Facebook. Vincent saves lives as a helicopter pilot in the US Coast Guard in Alaska. In November 2011, he starred in a documentary on the Weather Channel about the Coast Guard heroes, doing their work under extreme circumstances. The film is comparable to Top Gun with Tom Cruise. Only Top Gun is fiction and the Coast Guard documentary is for real!

Abbreviations

AAU

Assigned Amount Unit

ABPPM

Associação Brasileira de Produtores de Pinhão Manso

AIREG

Aviation Initiative for Renewable Energy in Germany

ARA

Amsterdam, Rotterdam, and Antwerp

ASA

Asian

ASTM

American Society for Testing and Materials

ASTM

American Society for Testing and Materials

ASTM

American Society for Testing and Materials

ASTM

American Society for Testing and Materials

ASTM

American Society for Testing and Materials

BCAP

Biomass Crop Assistance Program

BEES

Bio-Energy Emission Solution

BTL

biomass-to-liquid

BTL

biomass-to-liquid

BTL

biomass-to-liquids

CAAC

Civil Aviation Administration of China

CDM

Clean Development Mechanism

CDM

Clean Development Mechanism

CEPI

Confederation of European Paper Industries

CERs

Certified Emission Reductions

CNOOC

China National Offshore Oil Corporation

CNPC

China National Petroleum Corporation

COFCO

China National Cereals, Oils and Foodstuffs Corporation

CPI

Consumer Price Index

DESC

Defense Energy Support Center

EIA

Energy Information Administration

EIA

Energy Information Administration

EIA

Environmental Impact Assessment

EITI

Extractive Industry Transparency Initiative

EPA

Environmental Protection Agency

EPFL

Ecole Polytechnique Fédérale de Lausanne

ETF

exchange-traded fund

ETS

Emission Trading Scheme

ETS

emissions trading scheme

ETS

Emissions Trading Scheme

ETS

Emissions Trading Scheme

EUAs

European Emission Allowances

FAA

Federal Aviation Administration

FAO

Food and Agricultural Organization

FAO

Food and Agriculture Organization

FARA

Forum for Agricultural Research in Africa

FCCC

Framework Convention on Climate Change

GIPC

Ghana Investment Promotion Council

GRC

Genetic Resource Center

GTL

gas-to-liquid

IATA

International Air Transport Association

IATA

International Air Transport Association

IATA

International Air Transport Association

IATA

International Air Transport Association

IEA

International Energy Agency

IEA

International Energy Agency

IFAD

International Fund for Agricultural Development

IFPRI

International Food Policy Research Institute

IPCC

Intergovernmental Panel on Climate Change

IPO

initial public offering

IPPC

International Plant Protection Convention

IUCN

International Union for Conservation of Nature

MGO

marine gas oil

NGO

non-governmental organization

NGO

non-governmental organization

NGO

non-governmental organization

NGO

non-governmental organization

NGO

non-governmental organization

NGO

non-governmental organization

NREL

National Renewable Energy Laboratory

OPEC

Organization of the Petroleum Exporting Countries

PET

polyethylene terephthalate

QABP

Qatar Advanced Biofuel Platform

RLS

Reliance Life Sciences

RSB

Roundtable on Sustainable Biofuels

RSB

Roundtable on Sustainable Biofuels

RSB

Roundtable on Sustainable Biofuels

RSPO

Roundtable on Sustainable Palm Oil

SAFUG

Sustainable Aviation Fuel Users Group

SAFUG

Sustainable Aviation Fuel Users Group

SORESIN

SOcially RESponsible INvesting

SPK

synthetic paraffinic kerosene

UNDP

UN Development Programme

UNEP

United Nations Environment Programme

USDA

US Department of Agriculture

WMO

World Meteorological Organization

WWF

World Wide Fund for Nature

WWF

World Wide Fund for Nature

Chapter 1

The Commodity Case – Introduction

We have to change towards a low-carbon society. The problem with carbon dioxide is: we don’t smell it, we don’t see it, it is colorless, tasteless and invisible.

Al Gore – Speech at the Paul Scherrer Institute, Switzerland, 21 June 2010.

1.1 Commodity Cycles – Past and Present

In August 1998, John Wiley & Sons, New York published my first book on commodities called Profits from Natural Resources. Oil was trading at $10 a barrel, nobody was paying attention to natural resources, and the high-tech bubble was in full swing. Every investor jumped on the bandwagon of the Internet and computer stocks like Microsoft, Yahoo, Oracle, and Amazon. In those days Amazon was trading at $5 a share – in August 2012 it was trading at $230 a share (and by owning Amazon stock for 10 years you would have enjoyed a few stock splits on the way up as well)! At the beginning of the first decade of this century very few people were seriously investing in the basic resources of our world. Although my timing was a little ahead of what was going to unfold, the analysis of the book (i.e. the coming commodity boom) was 100% correct.

This book is not about speculation. This is not another commodity book about trading techniques in gold, silver, or copper. This book is not about exchange-traded funds (ETFs), leverage, selling short, or high-frequency trading. This book is a guide to liquid renewable energies called second-generation biofuels and solid biomass. I think this is one of the best investments you can make today. Such an investment is “early stage.” It is like buying Microsoft at $5 a share. However, those investors who have the vision and the courage to get in early will reap the biggest benefits.

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!