GLOBAL PROMOTION OF SUSTAINABLE FUELS, FOOD and FIBER
California Low Carbon Fuel Standard
US Cap & Trade System and Impact on Fuel Market in USA
Airline & Martime Shipping Industry
US Cap & Trade System and Impact on Fuel Market in USA
Airline & Martime Shipping Industry
Global Markets
Another important element of the project is the promotion of sustainability of various products in the primary export markets through the establishment of Sustainable Food/Fuel/Fiber Export Promotion Offices. A proposal is being advanced to APEX to use funds that are part of the UN FAO Project in Maranhao to place a sustainability export center in the USA and possibly in other countries to promote the production of sustainable fibers, fuels and food. Other funds targeted for promotion of exports within APEX for biofuels or in conjunction with projects may also be sought if objectives are consistent with the center objectives.
The basic concept of the sustainability centers are to highlight the social, economic and environmental benefits of the feedstock, conversion and final products produced through an integrated approach to food, fuel and fiber production. First and foremost, numerous products produced through production of sisal fibers will be promoted at the center. This includes the various types of sisal paper produced from the several Brazilian sisal paper plants. Other sisal products will also be highlighted such as agricultural twine, sisal rugs, handbags, purses, hats and other artisan crafts. The various benefits associated with production of sisal will be promoted through distribution of CD's with existing promotional material or through development of new materials highlighting the "integrated strategy" as detailed in this paper.
Another objective of the sustainability centers is to promote the role that Ostriches can play in reducing or eliminating poverty in many rural areas while offering a healthier, more environmentally friendly alternative to beef. Many people in the world are not aware of the low cholesterol benefits of Ostrich meat at a time when health concerns about eating too much meat are growing. Information about the many benefits of eating ostrich meat will be highlighted. There will also be information about the ostrich farms being built in Brazil in conjunction with the social program for small producers and the role ostrich production plays in eliminating poverty. The information will stress the role that ostrich can play in fully improving utilization of biomass byproducts of biofuel feedstock production and improve sustainability of meat and fuel.
A key purpose of the sustainability centers is to provide information to the public and the media about how Brazil is tackling the challenge of providing food, fuel and fiber using an integrated strategy that does not require a trade-off between food and fuel as typically portrayed by the press. The center will provide detailed information about the life cycle carbon benefits of producing various biofuel feedstocks and converting them to biofuel. The improved sustainability and carbon benefits of new technologies and improved information about existing production will help destroy the myth that biofuels can only be produced at the expense of higher food prices. The centers will provide data on how oil seed trees are being planted in conjunction with the production of regular food crops on family farms. On larger farms where mono-cropping is more common the information will emphasize the very high yields possible per hectare from sugar cane or new oil seed trees and full utilization of biomass and how this can be reflected in very positive carbon numbers. The team is currently introducing the project to companies, regulators & government agencies to get feedback on project feasibility and identify companies interested in participating in either production or product purchase. Key factors affecting markets & feasibility include the following:
1) California Low Carbon Fuel Standard:
California has passed a law that requires that California Air Resources Board (ARB) develop regulations to lower carbon emissions from fuel. The law requires a 10% carbon reduction in fuel by 2020. ARB is developing regulations that will be in place by the end of 2009 and is expected to require low carbon fuel by 2010. Similar requirements are under consideration in the Northeast, Washington, Oregon and other US states. Europe is also evaluating similar requirements in the EU. This is expected to lead to a increasing demand for low carbon fuels starting in 2010 and with strong demand expected at other states and countries follow the California lead by 2012-3. The ability to produce a variety of biofuels from all biomass produced in a region and elimination of carbon losses from changes in land use policy (no burn policies on agricultural residues, land use change residues used for fuel production or soil enhancement, etc.) will provide added sustainability benefits from biofuel production. Added to this is the potential to sequester CO2 at the refinery level through algae ponds or other technology.
2) US Cap & Trade System and Impact on Fuel Market in USA:
Both the Republican and Democratic candidates for President are supporting measures to implement a cap and trade system for carbon emissions that includes fuels. This will substantially impact the value of low carbon fuels in the US market as limits on carbon emissions affect commodity prices for fuels, chemicals and other products. The ability to produce a lower carbon set of petroleum fuels (through sequestration of Co2 emissions) and blend in biofuels with excellent carbon life cycle performance will result in a high value set of fuels in a market where cap & trade system limits fuel carbon emissions. Similar strategies involving additives will also be used to optimize both carbon & efficiency benefits.
3) Airline and Maritime Shipping Industry:
The airline industry has made a commitment to reduce carbon emissions through an agreement signed on 4/22/08 at the Third Aviation and Environment Summit in Geneva, Switzerland. A cornerstone of the program involves "pushing forward the development and implementation of new technologies, including cleaner fuels". "Cleaner fuels" refers to use of synthetic fuels from either a biomass, gas or coal to liquid process or renewable diesel technologies. Significant testing has been completed on jet engines using synthetic fuels including a flight that was completed by Airbus and GE using gas to liquid fuel this winter. Testing of renewable diesel has been completed by the US Air Force & UOP. Virgin Atlantic also completed a demonstration flight in Europe in March using biodiesel in one engine and has announced its intention to develop biodiesel and synthetic fuel using algae and other feedstock. Similar messages have been made by other major airline companies & engine manufacturers. CO2 Star, Sustainable BioMexico and BioPure Fuels are jointly approaching the airlines to seek their support for the project and to get early stage participation through either industry endorsement of the project or direct investment by airlines in fuel development. The ability to deliver fuel by ship or through a pipeline to global petroleum terminals makes the project attractive, particularly if a very low carbon goal is achieved through both sequestration and use of algae as a feedstock in synthetic fuel production. Lower carbon numbers on the jet fuel produced from petroleum will also add to the attractiveness of the project. The project team is writing to all of the participants in the Aviation and Environment Summit to ask them to participate in the development of the marketing program and to interact at early and later stages. Airline companies are likely to be an important part of defining the market feasibility of 2nd generation fuels through offtake agreements. Similar opportunities exist to work with the martime shipping industry, which is under similar threat to address greenhouse gas emissions and is now outside of the regulatory framework of Kyoto or other carbon reduction requirements.
4) Global Markets:
An important project objective is to define that low carbon fuels can be produced sustainably at a cost that is competitive with petroleum. The large scale of the project and the production of billions of gallons of biofuel, synthetic fuel and refined petroleum will generate strong global interest in the mix of products offered. Numerous countries have made commitments to meet certain biofuel goals in conjunction with sustainability criteria or are likely to adopt low carbon fuel standards. This will allow for global marketing of sustainable biofuels in combination with petroleum fuels and catalysts. Similar marketing strategies will be employed globally to stress fuel economy & carbon benefits of fuels blended with additives and potential to achieve substantial carbon reductions from low carbon fuels and lubes.
The basic concept of the sustainability centers are to highlight the social, economic and environmental benefits of the feedstock, conversion and final products produced through an integrated approach to food, fuel and fiber production. First and foremost, numerous products produced through production of sisal fibers will be promoted at the center. This includes the various types of sisal paper produced from the several Brazilian sisal paper plants. Other sisal products will also be highlighted such as agricultural twine, sisal rugs, handbags, purses, hats and other artisan crafts. The various benefits associated with production of sisal will be promoted through distribution of CD's with existing promotional material or through development of new materials highlighting the "integrated strategy" as detailed in this paper.
Another objective of the sustainability centers is to promote the role that Ostriches can play in reducing or eliminating poverty in many rural areas while offering a healthier, more environmentally friendly alternative to beef. Many people in the world are not aware of the low cholesterol benefits of Ostrich meat at a time when health concerns about eating too much meat are growing. Information about the many benefits of eating ostrich meat will be highlighted. There will also be information about the ostrich farms being built in Brazil in conjunction with the social program for small producers and the role ostrich production plays in eliminating poverty. The information will stress the role that ostrich can play in fully improving utilization of biomass byproducts of biofuel feedstock production and improve sustainability of meat and fuel.
A key purpose of the sustainability centers is to provide information to the public and the media about how Brazil is tackling the challenge of providing food, fuel and fiber using an integrated strategy that does not require a trade-off between food and fuel as typically portrayed by the press. The center will provide detailed information about the life cycle carbon benefits of producing various biofuel feedstocks and converting them to biofuel. The improved sustainability and carbon benefits of new technologies and improved information about existing production will help destroy the myth that biofuels can only be produced at the expense of higher food prices. The centers will provide data on how oil seed trees are being planted in conjunction with the production of regular food crops on family farms. On larger farms where mono-cropping is more common the information will emphasize the very high yields possible per hectare from sugar cane or new oil seed trees and full utilization of biomass and how this can be reflected in very positive carbon numbers. The team is currently introducing the project to companies, regulators & government agencies to get feedback on project feasibility and identify companies interested in participating in either production or product purchase. Key factors affecting markets & feasibility include the following:
1) California Low Carbon Fuel Standard:
California has passed a law that requires that California Air Resources Board (ARB) develop regulations to lower carbon emissions from fuel. The law requires a 10% carbon reduction in fuel by 2020. ARB is developing regulations that will be in place by the end of 2009 and is expected to require low carbon fuel by 2010. Similar requirements are under consideration in the Northeast, Washington, Oregon and other US states. Europe is also evaluating similar requirements in the EU. This is expected to lead to a increasing demand for low carbon fuels starting in 2010 and with strong demand expected at other states and countries follow the California lead by 2012-3. The ability to produce a variety of biofuels from all biomass produced in a region and elimination of carbon losses from changes in land use policy (no burn policies on agricultural residues, land use change residues used for fuel production or soil enhancement, etc.) will provide added sustainability benefits from biofuel production. Added to this is the potential to sequester CO2 at the refinery level through algae ponds or other technology.
2) US Cap & Trade System and Impact on Fuel Market in USA:
Both the Republican and Democratic candidates for President are supporting measures to implement a cap and trade system for carbon emissions that includes fuels. This will substantially impact the value of low carbon fuels in the US market as limits on carbon emissions affect commodity prices for fuels, chemicals and other products. The ability to produce a lower carbon set of petroleum fuels (through sequestration of Co2 emissions) and blend in biofuels with excellent carbon life cycle performance will result in a high value set of fuels in a market where cap & trade system limits fuel carbon emissions. Similar strategies involving additives will also be used to optimize both carbon & efficiency benefits.
3) Airline and Maritime Shipping Industry:
The airline industry has made a commitment to reduce carbon emissions through an agreement signed on 4/22/08 at the Third Aviation and Environment Summit in Geneva, Switzerland. A cornerstone of the program involves "pushing forward the development and implementation of new technologies, including cleaner fuels". "Cleaner fuels" refers to use of synthetic fuels from either a biomass, gas or coal to liquid process or renewable diesel technologies. Significant testing has been completed on jet engines using synthetic fuels including a flight that was completed by Airbus and GE using gas to liquid fuel this winter. Testing of renewable diesel has been completed by the US Air Force & UOP. Virgin Atlantic also completed a demonstration flight in Europe in March using biodiesel in one engine and has announced its intention to develop biodiesel and synthetic fuel using algae and other feedstock. Similar messages have been made by other major airline companies & engine manufacturers. CO2 Star, Sustainable BioMexico and BioPure Fuels are jointly approaching the airlines to seek their support for the project and to get early stage participation through either industry endorsement of the project or direct investment by airlines in fuel development. The ability to deliver fuel by ship or through a pipeline to global petroleum terminals makes the project attractive, particularly if a very low carbon goal is achieved through both sequestration and use of algae as a feedstock in synthetic fuel production. Lower carbon numbers on the jet fuel produced from petroleum will also add to the attractiveness of the project. The project team is writing to all of the participants in the Aviation and Environment Summit to ask them to participate in the development of the marketing program and to interact at early and later stages. Airline companies are likely to be an important part of defining the market feasibility of 2nd generation fuels through offtake agreements. Similar opportunities exist to work with the martime shipping industry, which is under similar threat to address greenhouse gas emissions and is now outside of the regulatory framework of Kyoto or other carbon reduction requirements.
4) Global Markets:
An important project objective is to define that low carbon fuels can be produced sustainably at a cost that is competitive with petroleum. The large scale of the project and the production of billions of gallons of biofuel, synthetic fuel and refined petroleum will generate strong global interest in the mix of products offered. Numerous countries have made commitments to meet certain biofuel goals in conjunction with sustainability criteria or are likely to adopt low carbon fuel standards. This will allow for global marketing of sustainable biofuels in combination with petroleum fuels and catalysts. Similar marketing strategies will be employed globally to stress fuel economy & carbon benefits of fuels blended with additives and potential to achieve substantial carbon reductions from low carbon fuels and lubes.
