REGIONAL WORKSHOP on Sustainable Biomass Production in Latin America Bogota, Colombia 28-29 January 2014 Workshop Summary Report Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Workshop Organization Inviting Organisation: Netherlands Enterprise Agency (RVO) Croeselaan 15 3521 BJ Utrecht The Netherlands www.rvo.nl Contact: Sietske Boschma T + 31 88 602 2604 [email protected] Event Organisation: WIP Renewable Energies Sylvensteinstr. 2 81369 Munich Germany www.wip-munich.de Contact: Dominik Rutz, Rainer Janssen, Cosette Khawaja T +49-8972012(739/743/740) [email protected] [email protected] [email protected] In cooperation with: Ministry of Agriculture and Rural Development www.minagricultura.gov.co The presentations held at this regional workshop are available at the website: http://www.b2match.eu/biomassworkshop2014bogota/pages/presentations 2 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Workshop background The demand for energy is increasing globally and fossil fuel stocks are diminishing. Diversification of energy sources is necessary in order to provide for this increasing demand. For Latin American countries, biofuels and bioenergy are becoming an increasing relevant energy source. In Brazil biofuels are used in a greater extend in comparison to the neighbouring countries. Since the potential area is available, more countries are envisaging extending their agricultural production also towards bioenergy. In the past few years, Netherlands Enterprise Agency has acquired much knowledge and experience through its Programme for Sustainable Biomass. Via pilot projects it supports initiatives in a sustainable biomass production in Latin America. The Netherlands is stimulating the use of biomass as a raw material for energy and chemistry. Netherlands Enterprise Agency facilitates and stimulates projects and supplementary research in order to gain experience in the production and certification of sustainable biomass through the Global Sustainable Biomass and the Sustainable Biomass Import Programme (the Netherlands Programme for Sustainable Biomass – NPSB, www.rvo.nl/biomass). The Global Sustainable Biomass Programme focuses on sustainable production of biomass in developing countries, whereas the Sustainable Biomass Import Programme aims to increase the import of sustainable biomass in the Netherlands. Under these programmes more than 40 projects worldwide have received financial and other support since the start in 2009. Workshop aims Sharing the knowledge and experience gathered in the Netherlands Enterprise Agency funded pilot projects on sustainable biomass production (including the use of agricultural residues) with the other project developers in the region, but also with a wider public. Exchanging knowledge and experiences with other neighbouring countries and (international) organisations, international certification schemes and round tables. Exchange of information about national policies on sustainable biomass and different types of biomass. Attracting new partners and investors to share the results of the biomass projects and investigate the follow-up opportunities of the projects. Target groups and Participants Participants are key stakeholders from Latin America, as well as from the international bioenergy community. These include: Representatives of governments and public bodies in Latin America International organisations and international round tables Experts and interested participants Researchers Industry Project developers 3 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Workshop outcomes and conclusions The following workshop conclusions are based on the presentations held in five thematic sessions as well as the round table and plenary discussions. The Future of Bioenergy in Latin America – Recommendations for Policy Development Modern bioenergy solutions will be an essential part of the future global energy system. Thereby, bioenergy per se is “neither good nor bad”, but overall sustainability crucially depends on how bioenergy projects and programmes are managed. Sustainability is key for successful bioenergy implementation. Policies need to be developed ensuring attention to all three pillars of sustainability, namely environmental, social and economic aspects. Specific focus in Latin American countries needs to be placed on food security and land tenure issues. International agreement needs to be reached on the harmonisation of sustainability requirements such as with respect to LCA (Life Cycle Assessment) and GHG emission calculation methodologies. Policy development in Latin America needs to focus on the promotion of rural development and specifically aim at including small scale producers. Policy action needs to be based on good practice experiences such as those presented by the pilot projects. Policy development in Latin American countries is based on a “learning-by-doing” approach. Sufficient flexibility needs to be ensured to be able to appropriately address emerging issues and “unexpected impacts” of bioenergy development. Policy development in Latin America needs to involve all relevant stakeholders in participatory consultation processes. Bioenergy policy development needs to go beyond so-called first generation technologies and address the establishment of a future sustainable biorefinery sector. Several Latin American countries are engaged in research and development initiatives in the field of second generation biofuels and biorefineries. 4 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Workshop Summary Day 1 – 28 January 2014 Opening Session The Regional Workshop on Sustainable Biomass Production in Latin America was officially opened by: H.E. Hernán Miguel Román Calderón, Vice Minister of Agriculture and Rural Development of Colombia Koen Sizoo, Vice Ambassador of the Royal Netherlands Embassy Bogotá H.E. Hernán Miguel Román Calderón, Vice Minister of Agriculture and Rural Development of Colombia cordially welcomed all workshop participants to Colombia and underlined the importance of the workshop with respect to sound and successful bioenergy development in Latin American countries. He acknowledged the good cooperation with the Government of the Netherlands in the field of biofuels policy development which in Colombia lies in the responsibility of the Ministry of Agriculture. Due to its favourable framework conditions with respect to climate, land, water and labour, Colombia is endowed with considerable biomass resources for the production of biodiesel from palm oil and bioethanol from sugar cane feedstock. Increasing biofuels production in Colombia will trigger socio-economic benefits for the population and mediate negative environmental impacts through the reduction of greenhouse gas (GHG) emissions. The Government of Colombia is committed to develop long-term policies ensuring a sustainable biofuels sector, both for national consumption as well as for export to European markets. Thereby, caution is taken to avoid any conflict with food security for the local population. In his welcome address Koen Sizoo, Vice Ambassador of the Royal Netherlands Embassy Bogotá acknowledged the long-term cooperation with the Government of Colombia in the areas of peace, human rights, and economic development. During past years focus is placed on establishing an equal commercial partnership with the aim to realise sustainable and durable economic growth. Target sectors for this partnership include the water sector as well as sustainable biomass development. Keynote Speech: Bioenergy for Sustainable Development in Latin America The introductory keynote presentation on the current status and future perspectives of bioenergy development in Latin America was delivered by: Omar Masera, Centro de Investigaciones en Ecosistemas, Universidad Nacional Autónoma de México (UNAM) Omar Masera started his keynote with stressing the current highly controversial debate about the impacts of large scale bioenergy development on food security as well as on the environment. Thereby, he underlined the importance of keeping in mind the large variety of different biomass energy options in the fields of electricity, heat/cool and fuels production, and the need to focus on integrated (bioenergy) solutions addressing the global energy challenge. Furthermore, great care has to be taken to address all three pillars of sustainability (environmental, social and economic) in the development of bioenergy policies in Latin America and worldwide. 5 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report As member of the Intergovernmental Panel on Climate Change (IPCC), Mr Masera anticipated the up-coming IPCC report to be published in April 2014. This report will clearly state the large contribution of bioenergy with respect to potential GHG mitigation, but it will also place emphasis on necessary adaptation measures affecting the global and Latin American agricultural sector, and thus potential bioenergy development options. In summary, Mr Masera stated that bioenergy will play an important role in the transition to a future, more sustainable energy system focussing on smart integration of all available (renewable) energy options. Furthermore, if implemented with care bioenergy may be a crucial pillar of rural development strategies in Latin American countries. Instruments to ensure sustainable development of the bioenergy sector thereby include tools for integrated resource planning which may serve to avoid undue resource competition by the various sectors involved (e.g. food, materials, chemicals, energy). Session 1: Biomass Policies in Latin America The session on biomass policies in Latin America was chaired by Rainer Janssen, WIP Renewable Energies, Germany. This session included presentations by: Juan Carlos Mejia Narino, Asesor Biocombustibles Ministerio de Agricultura y Desarrollo Rural, Colombia Luis Fernando Campuzano Duque, Corporación Colombiana de Investigación Agropecuaria (CORPOICA) Nero Cunha Ferreira, Ministry of External Relations, Brazil Miguel Almada, National Biofuels Programme, Ministry of Agriculture, Livestock and Fisheries, Argentina Ailieen Lee, Secretaria Nacional de Energia, Panama Juan Carlos Mejia Narino, Ministerio de Agricultura y Desarrollo Rural, Colombia gave an overview of biofuel policies in Colombia. Biofuel policy development started in 2001 with the aim to contribute to economic development by prioritising biofuels in the agricultural and energy sector strategies. Focus was placed on the expansion of consolidated feedstock, namely palm oil for biodiesel and sugar cane for ethanol production. Economic incentives have been introduced and close cooperation with the private sector (e.g. Fedepalma, Asocaña) and research institutions (e.g. Cenipalma, Cenicaña) have been established. The main objective of biofuels development in Colombia is the diversification of energy sources, thereby ensuring environmental sustainability, agro-industrial development, as well as a contribution to energy self-sufficiency. Recent studies performed indicate a GHG emission reduction potential of 83% for palm oil biodiesel and 74% for sugar cane ethanol in Colombia. Furthermore, no negative impacts on food security are expected by the Government of Colombia and an expansion of the area under feedstock for biofuels production may rely on the intensification of land use for cattle grazing. Finally, the Government of Colombia is also investigating the potential of alternative feedstock such as yuca and sweet sorghum as well as opportunities offered by advanced bioenergy technologies. 6 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Luis Fernando Campuzano Duque, Corporación Colombiana de Investigación Agropecuaria (CORPOICA) presented an overview on opportunities for rural development offered by a variety of established and innovative biomass feedstock resources for energy production. With respect to first generation biofuels, feedstock suitable for Colombia includes sugar cane and sweet sorghum for ethanol production and oil palm, Jatropha, Halophytes (e.g. Salicornia), and algae for biodiesel production. Second generation ligno-cellulosic feedstock in Colombia comprise dedicated energy crops (e.g. switch grass, miscanthus), forests, residues from agriculture and forestry, as well as animal wastes and Municipal Solid Waste (MSW). Current agricultural research activities performed within CORPOICA aim at optimising value creation from available feedstock through the implementation of a variety of biorefinery concepts, such as biorefineries based on sugar cane, bananas, coffee, palm oil, and new multi-purpose Halophytes. In his presentation on the status of bioenergy in Brazil, Nero Cunha Ferreira, Ministry of External Relations, Brazil stated the importance of bioenergy in the national energy matrix, accounting for 24.5% of the total primary energy supply. In the transportation sector ethanol and biodiesel account for 20.6% and 2.7% of the total fuel consumption, respectively. Current forecasts for the internal biofuel market expect an increase of ethanol use from 23 billion litres in 2013 to 45 billion litres in 2022 and an increase of biodiesel use from 2.8 billion litres in 2013 to 4 billion litres in 2022. With respect to environmental performance, the US EPA (Environmental Protection Agency) rated Brazilian ethanol produced from sugar cane as "advanced biofuel” due to calculated GHG emission reductions of 67% compared to gasoline. Furthermore, burning of sugar cane fields is banned by 2014 promoting increased mechanisation of sugar cane harvesting. Impacts on sensitive environments are addressed by agro-ecological zoning initiatives for sugar cane and palm oil and expansion potentials for biofuels production are associated with more intensive cattle farming in Brazil. Social benefits of the biofuels sector in Brazil include about 70,000 independent producers of sugar cane and social inclusion of more than 100,000 family farmers through the Social Fuel Certificate of the biodiesel programme. In Brazil the biofuels sector accounts for about 2% of the national GDP and has already contributed to avoided fossil fuel imports worth more than 50 billion US$. Finally, the Brazilian Government is actively supporting the development of advanced biofuels such as the production of ethanol from ligno-cellulosic feedstock. Miguel Almada, National Biofuels Programme, Ministry of Agriculture, Livestock and Fisheries, Argentina presented a variety of reasons for the development of a biofuels sector in Argentina, namely the comparative advantage in the production of oil crops due to large and fertile extensions of land available for oilseed production and the abundance of varied ecosystems fuelling the growth of diverse crops. In 2006, LAW 26.093/2006 for the Promotion of Production and Use of Biofuels introduced the mandatory use of 7% bioethanol and 9% biodiesel, a definition of domestic prices for biofuels, as well as biofuels quality standards. As one of the major soy bean producers in the world with an annual production of about 50 million tons, Argentina regards the production of biodiesel from soy bean oil as means to add value to the raw material. Total biodiesel production capacity amounts to 4 million tons with investments of 1.2 billion US$. In recent years, about 60% of the biodiesel was exported, mainly into European markets. These exports are, however, currently under threat due to biofuel policy developments in Europe, thus production capacities in Argentina are presently underutilized. In the coming years Argentina may increase internal consumption of biodiesel (up to technical limits) and search for alternative markets. 7 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Finally, Mr Armada presented the recent Program to promote the use of biomass for energy production in Argentina (PROBIOMASA) implemented by the Government of Argentina through the Ministries of Agriculture and Energy with technical assistance from the Food and Agriculture Organization of the United Nations (FAO). The objective of PROBIOMASA is to add value to wastes and by-products of the agriculture, livestock and forestry sector in order to promote the development of bioenergy at regional and national level to supply clean, reliable and competitive energy. Ailieen Lee, Secretaria Nacional de Energia, Panama provided an overview of recent bioenergy policy developments in Panama. The general guidelines of the national policy on biofuels and electricity from biomass in Panama are set by Law 42 of 20 April 2011, modified in Law 21 of 26 March 2013. The Regulation for Implementation of Law 42 of 20 April 2011 was specified in Decree 345 of 14 May 2013. Currently, the main focus in Panama is placed on the production of anhydrous bioethanol, biodiesel, and biogas. Executed projects in Panama include the implementation of anhydrous bioethanol blends (E5) with gasoline in the City of Panama, within the blending limits set in Law 42 of 2011, and the construction and operation of a large scale anhydrous bioethanol plant operated by the private company Campos de Pesé, S.A. using sugar cane and molasses as feedstock. From April 2014 it is foreseen to extend anhydrous bioethanol blends (E5) to the whole country, increasing to E7 in 2015 and E10 in 2016. Furthermore, a 10 MW electricity plant located in Cerro Patacón, Panama City is planned for 2016 and the Government will investigate opportunities for biodiesel blends in Panama. Session 2: Sustainability of Bioenergy in Latin America The session on sustainability of bioenergy in Latin America was chaired by Dominik Rutz, WIP Renewable Energies, Germany. This session included presentations by: Ella Lammers, Netherlands Enterprise Agency Maria Michela Morese, Executive Secretary, Global Bioenergy Partnership, Food and Agriculture Organization of the United Nations Isabella Freire Vitali, Proforest, Brazil Ella Lammers, Netherlands Enterprise Agency presented an overview of current European policies and regulations in the field of renewable energies. The EU Renewable Energy Directive (RED) mandates a 20% overall renewable energy share and a 10% renewable energy share in the transport sector in 2020. It was highlighted that bioenergy and biofuels play an important role in achieving these EU targets and that the biofuels sector is currently the only sector subject to mandatory sustainability criteria (on GHG emission reduction, biodiversity, and carbon stocks) specified in the RED. Compliance with sustainability criteria is crucial for ensuring social acceptance of bioenergy, and currently a large number of biomass certification systems are being implemented. Ms Lammers furthermore provided information on the Netherlands Programme for Sustainable Biomass funded by the Dutch Government. This programme funds more than 40 pilot projects addressing the sustainability of biomass chains. The pilots are now coming to an end, and therefore Netherlands Enterprise Agency organised this workshop to enable projects to present their results. Further, Netherlands Enterprise Agency provides support on several issues, such as certification (toolbox sustainability assessment, guidance documents, food security), biomass feedstock (Jatropha, alternative feedstock), and 8 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report financing (climate financing, support on project replication). Information on activities and results of the pilot projects is available under: www.rvo.nl/biomass. In her presentation Ms Lammers specifically highlighted recent results from projects elaborating guidance for project developers and producers on how to select a suitable biomass certification scheme, and recommendations for smallholder certification in biomass supply chains. Maria Michela Morese, Executive Secretary, Global Bioenergy Partnership (GBEP), Food and Agriculture Organization of the United Nations gave an overview of GBEP objectives and activities, as well as the present partnership (37 partners and 38 observers). GBEP is a forum where voluntary cooperation works towards consensus amongst its partners in the areas of the sustainable development of bioenergy and its contribution to climate change mitigation. Main priorities of GBEP include piloting of the GBEP common methodological framework on GHG emission reduction measurement, promoting sustainable development of bioenergy, and facilitating capacity building for sustainable bioenergy. In 2011, GBEP has developed a set of 24 sustainability indicators for bioenergy, 8 each addressing the topics of environmental, social and economic sustainability. Furthermore, GBEP has elaborated methodology sheets that include supporting information relating to the relevance, practicality and scientific basis of each indicator, including suggested approaches for their measurement. Based on the results of piloting activities for the sustainability indicators in a variety of different countries, it was concluded that the GBEP indicators could be of good use to Governments, producer sectors and other entities that require information to take decisions towards a sustainable development of bioenergy. Measured over time the indicators will show progress towards or away from a sustainable development path as determined nationally. Isabella Freire Vitali, Proforest, Brazil reported on the opportunities offered by voluntary sustainability standard schemes and voluntary certification to tackle potential environmental and social impacts of agricultural expansion. Thereby, environmental impacts may include deforestation, land use change, biodiversity loss, carbon emissions, water scarcity and soil erosion, and social impacts include loss of land access, use and ownership rights, land grabbing, food scarcity, inadequate community consultation, and labour issues. Voluntary standards may serve various objectives and can be used as good practice guidelines, tools for self-assessment and improvement, tools for communication, tools for improving access to finance and markets, and as basis for independent certification. Ms Freire stated that the key challenges for the implementation of sustainability standards currently concern suppliers and smallholders. The engagement of external suppliers in biomass value chains may lead to an outsourcing of worst impacts and a concentration of land or management control by centralised production units. Here, potential solutions exist through the establishment of long term contracts and service provision for suppliers as well as monitoring intitiatives for continuous improvements. Smallholders may be left behind in the strive for sustainability as they face difficulties in meeting standards. Often criteria are not suitably adapted, assistance is not available, and standard systems may even impose specific barriers for smallholders. For example, mandatory legal compliance with labour rights of temporary workers may be difficult to fulfill as informal work is widespread in smallholder environments. Potential solutions include the involvement of cooperatives or buyer companies providing necessary services and support for smallholders. 9 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Session 3: Facilitating investment for sustainable bioenergy projects The session on facilitating investment for sustainable bioenergy projects was chaired by Sietske Boschma, Netherlands Enterprise Agency. This session consisted of a presentation by: Pjotr Schade, Everest Energy Group, The Netherlands Pjotr Schade, Everest Energy Group, The Netherlands presented the results of a study implemented with the aim to enhance the insight into the economic feasibility and scalability of projects funded within the Netherlands Programme for Sustainable Biomass by the Dutch Government by improving structure and bankability of the funded projects. 48 project success indicators, both quantitative and qualitative, have been developed based on strategic analyses of the projects and the following main requirements for good project development have been identified: Structured project development is paramount for all projects Small and manageable core teams are recommended Clarity and precise information is needed with respect to information, opinions and project strengths and weaknesses “Diffuse pictures” leading to high risk perception need to be avoided Scalable projects need to be developed Based on the results of this study, Everest Energy is now engaged in the development of an open ended fund (Commercial Investment Fund – FUMA) starting with the project-base of the Netherlands Programme for Sustainable Biomass. The goal of this fund is to cluster renewable energy projects which help to improve both sustainable as well as economic development into portfolios and match financers with these portfolios of projects. This fund will be developed in two phases. Phase 1 addresses the Clustering of Project Portfolios based on key financial parameters, project funding requirements and preconditions of an investment portfolio. Phase 2 is concerned with the potential match between portfolio requirements and investor demands. Thereby, clustering of projects serves to control and reduce investment risks, to increase the overall portfolio investment value, to develop portfolios adapted to specific investor groups, and thus to attract potential investment from development banks, private investors, commercial banks and foundations. 10 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Day 2 – 29 January 2014 All projects presented in sessions 4 and 5 of the Regional Workshop on Sustainable Biomass Production in Latin America are pilot projects supported by the Netherlands Programme for Sustainable Biomass funded by the Dutch Government. Session 4: Lessons learnt and the way forward of projects funded by Netherlands Enterprise Agency: Projects on Policies and Sustainability Certification This session was chaired by Ella Lammers, Netherlands Enterprise Agency and included presentations by: Jeroen Douglas, Solidaridad, The Netherlands and Jorge Hilbert, INTA, Argentina Frans van Hulle, Agro2, Panama Maria Adelaida Perez Perez, GMSP, Colombia and Gladis Sierra Sierra, CNPML, Colombia Madelon Meijer, Stichting Oxfam Novib, The Netherlands and Hernan de Arriba Zerp, Proyungas, Argentina Jeroen Douglas, Solidaridad, The Netherlands presented the results of two projects focussing on “Improving the sustainability of cane ethanol through mainstream marketing in Brazil” and “Establishing a sustainable and certified supply chain for EU imports of biodiesel from soy in Argentina”. The project implemented in Brazil focused on re-training of redundant cane cutters, supporting farmers in applying Better Agricultural Practices, assessing the potential for sustainable ethanol from Northeastern regions in Brazil, and investigating the traceability of certified ethanol for the Dutch market. In order to promote mechanization in the Brazilian sugar cane sector, in 2007 mills agreed with the State of São Paulo Government to realise the end of sugar cane field burning in 2014. This voluntary agreement was signed by 168 mills and 29 associations of sugarcane suppliers. The programme RenovAção was created to mitigate the impact for rural workers. In the framework of the present project more than 4,500 workers received training to increase their opportunities to find employment in the mechanised sugar sector. Furthermore, in order to promote better social and environmental practices 260 farmers received assistance for the implementation of BONSUCRO production standards. The project implemented in Argentina addressed GHG emissions and wider sustainability aspects of soy based biodiesel value chains in Argentina. In the framework of the project a registration platform was developed for the sustainability standard of the Roundtable for Responsible Soy (RTRS) allowing full track-and-trace of certified raw material as well as trade of issued certificates. Furthermore, field measurements on actual GHG emissions were implemented by project partner INTA from Argentina which showed values of 54-56% emission reductions, being significantly lower than the default value specified in the European Renewable Energy Directive (RED). Conceived market barriers introduced by the EU are currently significantly impacting the biodiesel sector in Argentina and recommendations by Mr Douglas included an increase of the national biodiesel market as well as the promotion and recognition of certification schemes by the Argentine Government in order to improve sustainability and public perception of soy based biodiesel. 11 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Jorge Hilbert, INTA, Argentina provided further details on GHG emission measurements for soy based biodiesel and emphasised difficulties in communicating results towards European institutions responsible for GHG methodologies and default values within the EU biofuels sustainability system. He underlined the importance of the soy sector for the Argentine GDP and the necessity to address entire productions chains and production sectors rather than to merely focus on biofuels, which in the case of soy only represents a minor part of the overall value chain. Frans van Hulle, Agro2, Panama presented achievements and lessons learnt from a project on sustainable ethanol production from cassava in the region of Veraguas in Panama implemented by the company Agro2 with support of Netherlands Enterprise Agency and the Dutch FACT foundation. Cassava is regarded as promising crop as it is traditionally farmed in the area, needs relatively little inputs (fertilizer, pesticides), and is suitable for nutrientpoor, acid soils as well as climates with long droughts and periods with heavy rain and heat. Furthermore, due to its high starch content cassava offers a high ethanol yield potential of about 6,000 litres per ha per year. During the last three years 250 ha of cassava were developed and planted establishing the first industrial cassava production in Panama. Trustful relationships with farmers have been realized and a farmer association with more than 50 farmers has been set up. A small scale ethanol plant with a capacity of 500 litres per day is already in operation and ISCC certification is obtained for the value chain indicating 47% GHG emission savings. The upscaling of the ethanol plant to 5,000 litres per day and a processing capacity of 5 tons of cassava per day is planned for 2014. Lessons learnt within the project include the importance of policies and regulations, Governmental support and suitable subsidies. Furthermore, feedstock needs to be selected which offers diversification of end products such as the production of peeled cassava, cassava flour and ethanol in the case of the present project. Maria Adelaida Perez Perez, GMSP, Colombia and Gladis Sierra Sierra, CNPML, Colombia presented results of the project “Sustainability for small trapiches” aiming at improving energy efficiency of the panela production process and hence obtaining surplus bagasse for the production of briquettes to replace firewood and other polluting fuels. Between 2010 and 2012 the selected trapiche located 94 km Northeast of Medellin underwent several infrastructure and operational modifications concerning production area, packaging area, bagasse deposit as well as the access road to the trapiche. Results achieved include an increased milling efficiency and higher yields of juice per unit of processed sugar cane, thus realizing a higher overall yield of panela per unit of harvested sugar cane. Surplus bagasse can now be processed to make briquettes to replace coal or firewood in (cooking) stoves and/or kilns. This project has a very large replication potential in Colombia with many (of the 18,000 existing) trapiches interested to implement improvements of organizational capacity (e.g. by associating in cooperatives), production practices, infrastructure, and production facilities. Madelon Meijer, Stichting Oxfam Novib, The Netherlands presented results of the project “Sustainability challenges of the soy and sugar cane production in Brazil (Mato Grosso State)” investigating social and environmental impacts of the rapid expansion of sugar cane and soy frontiers. The development of participatory monitoring systems are strongly recommended in order to get more and improved independent and verifiable information on social and environmental impacts of the production of sugar cane and soy, to enhance the capacity of civil society organizations to monitor impacts, and to increase their ability to participate effectively in policy dialogues. 12 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report This is specifically important with respect to the assessment of social impacts such as land concentration, rural exodus, overall decline in employment in agricultural sector, poor working conditions, health problems, compromised feed security, as well as the lack of technical and financial support. Lessons learnt from this project include the importance of robust environmental and social criteria and a high level of assurance within certification systems approved by the EU RED. Furthermore, adequate funding/support for local communities need to be provided in order to increase awareness and capacity building and to support small scale farmers. Recommendations for the Brazilian government address the need to undertake integrated land use planning, to implement strict regulations on pesticide use and other pollutants as well as continuous analyses of water quality, and the establishment of national programs in support of family farmers. Finally, the new tool STAT PLANET developed for the participatory monitoring and analysis of data was presented by Hernan de Arriba Zerp, Proyungas, Argentina. STAT PLANET offers interactive on-line maps and graphics accessible via the website of the Instituto Centro da Vida: http://www.icv.org.br/. Session 5: Lessons learnt and the way forward of projects funded by Netherlands Enterprise Agency: Pilot and Demonstration Projects This session was chaired by Sietske Boschma, Netherlands Enterprise Agency and included presentations by: Felipe Guerrero, DABOON, Colombia Leonardo Sanchez, Stichting Utz Certified Luis Felipe Barahona, Centro De Investigacion Cientifica De Yucatan (CICY), Mexico Claudia M. Daza Montaño, ECN, The Netherlands Felipe Guerrero, DABOON, Colombia provided an overview of the project “Generation and application of biogas from palm oil mill effluents (POME)”. DAABON is a family owned and operated business dating back to 1914 engaged in banana, coffee, cocoa, and palm oil production in the area of Santa Marta. DAABON is the major agricultural employer in the region with more than 2,000 direct employees and an indirect influence on over 15,000 people, as well as more than 520 families involved in its smallholder program. With the support of Netherlands Enterprise Agency the set-up of anaerobic lagoons to treat mill effluents was launched in 2009 in order to improve the environmental and economic performance of palm oil production. Due to the very low value of CERs (Certified Emission Reductions) initial engineering had to be rearranged to use the produced biogas for electricity generation to ensure economic viability. For this, sulfur removal equipment had to be installed to gain biogas of sufficient quality for use in generators. In March 2012, the equipment was installed for the production of 1.5 MW of electricity from POME. As the own consumption of the palm oil mill only amounts to 430 kW, excess biogas had to be flared. In order to make better use of the biogas the company Voltaje Empresarial S.A.S. specialized on selling electricity to the grid has been created and two additional generators will be installed. Important lessons learnt stated by Mr Guerrero included the necessity to plan and implement such projects in accordance with existing and future needs in close cooperation with communities and businesses in the region. Furthermore, turn-key solutions are not appropriate and installations have to be carried out by company operators to facilitate sufficient on-site skills for operation and maintenance. 13 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Leonardo Sanchez, Stichting Utz Certified reported results achieved by the project “Energy from coffee waste in Central America” implemented in Guatemala, Honduras and Nicaragua. The main aim of this project was to contribute to sustainable coffee production by producing energy from coffee processing waste, preventing methane emissions, and reducing pollution through waste water treatment. For small scale producers in Nicaragua and Honduras tubular biodigesters were investigated for anaerobic waste water treatment. At one pilot site operated by a cooperative 390 m3 of waste water were treated in five biodigesters leading to an elimination of 82% of the contaminants. 320 m3 of biogas were generated by each biodigester and used as alternative fuel for cooking. For medium and large scale producers waste water systems were implemented consisting of primary treatment for the removal of solid particles and pH control, secondary treatment comprising anaerobic reactors, and tertiary treatment processing the effluents. At a typical large scale pilot site 22,000 m3 of waste water were treated during the last two harvests with a daily production of 650 m3 of biogas used to fuel electric generators and to heat process water. The project “Improving the sustainability of the Jatropha-biodiesel chain in the Yucatán Peninsula” was presented by Luis Felipe Barahona, Centro De Investigacion Cientifica De Yucatan (CICY), Mexico. Within this project an inventory of secondary and waste products from Jatropha and biodiesel production chains was performed. It was found that Jatropha varieties have different growth patterns depending on soil conditions, climate and plantation management which need to be thoroughly investigated before establishing large scale plantations. Until today, Jatropha cultivation did not prove successful in Mexico and there are no commercial plantations established in Yucatán. Mr Barahona concluded with policy recommendations for Mexico, stating that the current Law for Use of Renewable Energy and Energy Transition and the Law for Promotion and development of bioenergetics in México do not yet sufficiently encourage the implementation and use of renewable energies. The Government needs to facilitate the development and use of bioenergy by helping producers to establish viable processes at affordable prices, introducing mandatory biofuel blends and clearly defining roles and obligations of PEMEX with respect to biofuel production, distribution and sales. Claudia M. Daza Montaño, ECN, The Netherlands presented results from the project “Torrefied Bamboo: an alternative for sustainable biomass export” assessing the whole chain of bamboo cultivation and collection via torrefaction upgrading to the application as biofuel. Benefits of bamboo include its fast growth of 10-40 tons per ha per year and its ability to regenerate when responsibly cared for and harvested. Furthermore, bamboo is an excellent reforesting crop due to its low consumption of fertilizer, easy propagation, as well as biodiversity and water table preservation. Torrefaction is regarded as promising biomass upgrading technology through treatment of the feedstock at 200-300 °C in the absence of oxygen. Torrefaction tests of bamboo feedstock have been performed at ECN with a 50 kg/h pilot plant. In conclusion, Ms Daza stated that bamboo has the potential to be a highly sustainable biomass source for the biobased economy in Colombia and worldwide with superior performance with respect to agricultural residues and herbaceous biomass. Torrefaction of bamboo feedstock seems feasible and first estimates indicate equivalent costs over the entire chain when compared to conventional wood pellets. 14 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Round Table & Plenary Discussion: The Future of Bioenergy in Latin America This Round Table was moderated by Ella Lammers, Netherlands Enterprise Agency. Round Table Panellists: Juan Carlos Mejia Narino, Ministerio de Agricultura y Desarrollo Rural, Colombia Nero Cunha Ferreira, Ministry of External Relations, Brazil Ailieen Lee, Secretaria Nacional de Energia, Panama Jeroen Douglas, Solidaridad, The Netherlands Harold Martina, CNPMLTA, Colombia Maria Michela Morese, Global Bioenergy Partnership The panellists participating in this concluding round table of the Regional Workshop on Sustainable Biomass Production in Latin America were invited to address and summarise lessons learnt and policy recommendations derived from pilot projects presented within sessions 4 and 5. These projects were supported by the Netherlands Programme for Sustainable Biomass funded by the Dutch Government. The following key findings were highlighted by the panellists: Modern bioenergy solutions will be an essential part of the future global energy system. Thereby, bioenergy per se is “neither good nor bad”, but overall sustainability crucially depends on how bioenergy projects and programmes are managed. Sustainability is key for successful bioenergy implementation. Policies need to be developed ensuring attention to all three pillars of sustainability, namely environmental, social and economic aspects. Specific focus in Latin American countries needs to be placed on food security and land tenure issues. International agreement needs to be reached on the harmonisation of sustainability requirements such as with respect to LCA (Life Cycle Assessment) and GHG emission calculation methodologies. Policy development in Latin America needs to focus on the promotion of rural development and specifically aim at including small scale producers. Policy action needs to be based on good practice experiences such as those presented by the pilot projects. Policy development in Latin American countries is based on a “learning-by-doing” approach. Sufficient flexibility needs to be ensured to be able to appropriately address emerging issues and “unexpected impacts” of bioenergy development. Policy development in Latin America needs to involve all relevant stakeholders in participatory consultation processes. Bioenergy policy development needs to go beyond so-called first generation technologies and address the establishment of a future sustainable biorefinery sector. Several Latin American countries are engaged in research and development initiatives in the field of second generation biofuels and biorefineries. 15 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Workshop Closing – Summary and Conclusions The Regional Workshop on Sustainable Biomass Production in Latin America was officially closed by: H.E. Hernán Miguel Román Calderón, Vice Minister of Agriculture and Rural Development of Colombia Sietske Boschma, Netherlands Enterprise Agency H.E. Hernán Miguel Román Calderón, Vice Minister of Agriculture and Rural Development of Colombia thanked all workshop participants for sharing experiences and lessons learnt on the development of a sustainable bioenergy sector in the framework of this regional workshop. The Government of Colombia is committed to further develop policies and regulatory frameworks to promote the production and use of bioenergy and biofuels in the country. Focus will be placed on the development of the agricultural sector with the aim to generate socio-economic benefits for the population and mediate negative environmental impacts through the reduction of greenhouse gas (GHG) emissions. Despite current controversy about the sustainability of so-called first generation biofuels, H.E. Calderón emphasised opportunities for the production of biodiesel from palm oil and bioethanol from sugar cane feedstock, both consolidated sectors in Colombia. The Government will continue to promote and offer economic incentives for agro-industrial sector development in close cooperation with the private sector (e.g. Fedepalma, Asocaña) and research institutions (e.g. Cenipalma, Cenicaña). Also Ecopetrol, the largest private company in Colombia, has already made large investments in the national biofuels sector. In addition, small scale feedstock producers will be supported if respective value chains prove to be economically viable. Furthermore, the Government of Colombia is actively supporting research and development in the fields of advanced biofuels and biorefinery concepts based on residues of the palm oil, sugar and banana production. In order to ensure environmental, social and economic sustainability of biofuels and other agricultural commodities the implementation of voluntary certification schemes seems to be a viable option. In Colombia, great care will be taken to avoid any conflict with food security for the local population. Finally, biofuels policies in Colombia will continue to be developed by the Cross-sectoral Commission on Biofuels (established by Decree 2328 of 2008) constituted by the Ministries of Agriculture, Mines and Energy, Environment, Transport, Commerce, and the National Director of Planning. Sietske Boschma, Netherlands Enterprise Agency cordially thanked all workshop participants for their active participation and the fruitful discussions during the two days of the Regional Workshop on Sustainable Biomass Production in Latin America. Ms Boschma highlighted the very large potential of biomass based renewable energy production in Latin American countries offering opportunities for a large variety of biomass feedstock, technologies and production systems. This potential shall be exploited in a sustainable way, paying due respect to local framework conditions and focussing on the integrated production of food, fuels, energy, feed, compost, and chemicals. 16 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report The realisation of sustainable biomass production in Latin America crucially depends on suitable policy frameworks aiming at maximising social benefits for the local population. Support for sustainable biomass projects is needed and public private partnerships offer opportunities for the implementation of projects. Thereby, close cooperation between project developers and funding organisations are recommended in order to facilitate financing of projects with promising business cases. Finally, Ms Boschma specifically acknowledged the success stories presented by implementers of pilot projects supported by the Netherlands Programme for Sustainable Biomass. Such success stories are of large importance to show the feasibility and benefits of sustainable biomass projects in Latin American countries and worldwide. 17 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Annex 1 – Workshop Agenda Day 1 – 28 January 2014 8:00 Registration Opening Session 8:30 Opening of the Workshop HERNÁN MIGUEL ROMÁN CALDERÓN, VICE MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT KOEN SIZOO, VICE AMBASSADOR, ROYAL NETHERLANDS EMBASSY BOGOTÁ 9:20 Keynote Speech: Bioenergy for Sustainable Development in Latin America OMAR MASERA, UNAM, MEXICO 10:00 Coffee/Tea Break Session 1: Biomass Policies in Latin America Chair: RAINER JANSSEN, WIP RENEWABLE ENERGIES, GERMANY 10:30 Biofuels / Bioenergy in Colombia JUAN CARLOS MEJIA NARINO, ASESOR BIOCOMBUSTIBLES MINISTERIO DE AGRICULTURA Y DESARROLLO RURAL, COLOMBIA 10:55 Opportunities for Rural Development in Colombia LUIS FERNANDO CAMPUZANO DUQUE, CORPORACIÓN COLOMBIANA DE INVESTIGACIÓN AGROPECUARIA (CORPOICA), COLOMBIA 11:20 Biofuels / Bioenergy in Brazil NERO CUNHA FERREIRA, MINISTRY OF EXTERNAL RELATIONS, BRAZIL 11:45 Biofuels / Bioenergy in Argentina MIGUEL ALMADA, NATIONAL BIOFUELS PROGRAMME, MINISTRY OF AGRICULTURE, LIVESTOCK AND FISHERIES, ARGENTINA 12:10 Bioenergy Policies in Panama AILIEEN LEE, SECRETARIA NACIONAL DE ENERGIA, PANAMA 12:35 Lunch 18 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Session 2: Sustainability of Bioenergy in Latin America Chair: DOMINIK RUTZ, WIP RENEWABLE ENERGIES, GERMANY 14:00 Sustainability certification ELLA LAMMERS, NETHERLANDS ENTERPRISE AGENCY 14:30 Pilot testing of the GBEP Sustainability Indicators – Lessons Learned MARIA MICHELA MORESE, EXECUTIVE SECRETARY, GLOBAL BIOENERGY PARTNERSHIP, FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS 15:00 Implementation of Sustainability Standards in Latin America ISABELLA FREIRE VITALI, PROFOREST, BRAZIL 15:30 Coffee/Tea Break Session 3: Facilitating investment for sustainable bioenergy projects Chair: SIETSKE BOSCHMA, NETHERLANDS ENTERPRISE AGENCY 16:00 A Tool for Investments in Bioenergy Projects PJOTR SCHADE, EVEREST ENERGY GROUP, THE NETHERLANDS 17:00 Side-event: Discussion on the Tool for Investments in Bioenergy Projects FOR INVITED REPRESENTATIVES ONLY! 19:00 Conference Dinner 19 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Day 2 – 29 January 2014 Session 4: Lessons learnt and the way forward of projects funded by Netherlands Enterprise Agency: Projects on Policies and Sustainability Certification Chair: ELLA LAMMERS, NETHERLANDS ENTERPRISE AGENCY 8:30 Brazil: Real benefit sharing (certification – sugar cane) Argentina: Establishing a sustainable and certified Supply Chain for Import of Biodiesel from Soy JEROEN DOUGLAS, SOLIDARIDAD, THE NETHERLANDS JORGE HILBERT, INTA, ARGENTINA 8:55 Panama: Sustainable ethanol production from Cassava in impoverished rural Panama FRANS VAN HULLE, AGRO2, PANAMA 9:20 Colombia: Sustainability for small trapiches MARIA ADELAIDA PEREZ PEREZ, GMSP, COLOMBIA GLADIS SIERRA SIERRA, CNPMLTA, COLOMBIA 9:45 Brazil: Working towards sustainable biomass production in Mato Grosso, Brazil MADELON MEIJER, STICHTING OXFAM NOVIB, THE NETHERLANDS HERNAN DE ARRIBA ZERP, PROYUNGAS, ARGENTINA 10:10 Coffee/Tea Break Session 5: Lessons learnt and the way forward of projects funded by Netherlands Enterprise Agency: Pilot and Demonstration Projects Chair: SIETSKE BOSCHMA, NETHERLANDS ENTERPRISE AGENCY 10:45 Colombia: Generation and application of biogas from POME FELIPE GUERRERO, DABOON, COLOMBIA 11:10 Guatemala, Nicaragua, Honduras: Energy from Coffee Waste in Central America LEONARDO SANCHEZ, STICHTING UTZ CERTIFIED 11:35 Mexico: Improving the sustainability of the jatropha-biodiesel chain in the Yucatan peninsula LUIS FELIPE BARAHONA, CENTRO DE INVESTIGACION CIENTIFICA DE YUCATAN (CICY), MEXICO 12:00 Colombia: Torrefied Bamboo Pellets for Sustainable Biomass Export CLAUDIA M. DAZA MONTAÑO, ECN, THE NETHERLANDS 12:25 Lunch 20 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Session 6: Cooperation opportunities for future projects Chair: COSETTE KHAWAJA, WIP RENEWABLE ENERGIES, GERMANY 14:00 Brokerage event Each participant will have the opportunity to meet other participants to discuss opportunities for cooperation in more detail. For arranging the bi-lateral meetings advance online registration is needed. Prior to the workshop, short profiles of registered participants are shown online to facilitate the selection of the brokerage face-to-face meetings. 16:00 Coffee Break Round Table & Plenary Discussion The Future of Bioenergy in Latin America Chair: ELLA LAMMERS, NETHERLANDS ENTERPRISE AGENCY 16:30 Panellists: - JUAN CARLOS MEJIA NARINO, MINISTERIO DE AGRICULTURA Y DESARROLLO RURAL, COLOMBIA - NERO CUNHA FERREIRA, MINISTRY OF EXTERNAL RELATIONS, BRAZIL - AILIEEN LEE, SECRETARIA NACIONAL DE ENERGIA, PANAMA - JEROEN DOUGLAS, SOLIDARIDAD, THE NETHERLANDS - HAROLD MARTINA, CNPMLTA, COLOMBIA - MARIA MICHELA MORESE, GLOBAL BIOENERGY PARTNERSHIP 17:30 Closing Speech – Summary and Conclusion of the Workshop - HERNÁN MIGUEL ROMÁN CALDERÓN, VICE MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT - SIETSKE BOSCHMA, NETHERLANDS ENTERPRISE AGENCY 19:00 Socializing Dinner - BUS TRIP TO THE SCENIC RESTAURANT CASA BRAVA (WWW.RESTAURANTECASABRAVA.COM) - REGISTRATION FOR THE DINNER IS URGENTLY NECESSARY VIA THE W ORKSHOP REGISTRATION WEBSITE: WWW .B2MATCH.EU/BIOMASSWORKSHOP2014BOGOTA 21 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Annex 2 – Participants List Part. Last Name First Name Organisation 1 Adrichem Robert Interconnect Caribbean NV 2 Ali Liaqat Liaqat corp 3 Almada Miguel Ministry of Agriculture, Livestock and Fisheries 4 Amomtegui Diego Colombiana de Compostajes 5 Barahona Luis Centro de Investigacion Cientifica de Yucatan 6 Bastiaenem Philip Embajada Países Bajos 7 Boschma Sietske Netherlands Enterprise Agency 8 Branzini Agustina Ministerio de Agricultura, Ganadería y Pesca 9 Camargo Juan Carlos Universidad Tecnológica de Pereira 10 Campuzano Duque Luis Fernando CORPOICA 11 Cantillo Andrew KIS Group 12 Ceron Maria Patrimonio Natural Fondo para la biodiversidad 13 Chaparro León Dayana Agencia Presidencial de Cooperación, APCColombia 14 Cuenca Osorio Jorge Antonio Unidad de Planeación Minero Energetica 15 Daza Christie Fedepalma Daza Montano Claudia Energy Research Centre of the Netherlands (ECN) 17 De Zerpa Hernán Fundación ProYungas 18 Douglas Jeroen Solidaridad Network 19 Duron Eduardo Uni-Systems 20 Ezzine Blas Driss CIRAD 21 Fajardo Dario Universidad de Nariño 22 Ferreira Nero Ministry of External Relations 23 Freire Vitali Isabella Proforest 24 García Gonzalo CIDAUT 25 Gomez Jesus CCEP, Colombia Clean Energy Program Grateron Carlos Federación Nacional de Bicombustibles de Colombia Guerrero Felipe DAABON Group 16 26 27 Arriba De 22 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Part. Last Name First Name Organisation 28 Gutierrez Juan Acquaire Ltda 29 Henry Guy CIRAD @ CIAT 30 Hernandez Mauricio Mauricio Hernandez Sarabia 31 Hilbert Jorge Antonio Instituto Nacional de Tecnologia Agropecuaria 32 Hoekstra Jentse Netherlands Enterprise Agency (NL Agency) 33 Janssen Rainer WIP Renewable Energies 34 Johansen Marius Ingeniera y Projectos 35 Khawaja Cosette WIP Renewable Energies 36 Klint Harald KIS Group 37 La Cruz Gonzalo Solidaridad Andes 38 Lammers Ella Netherlands Enterprise Agency 39 Lee Aileen Secretaría Nacional de Energía 40 Lipschits Daniel Programa Biosfera Llano Ferro Rafael Energia Termica Sostenible ENTERESA LTDA. Mahmud Fauzi Agencia Presidencial de Internacional de Colombia 43 Martina Martinez Harold GMSP BV - Sustainability Consultants 44 Martínez Londoño Edgar Alberto Cementos Argos S.A. Masera Omar UNAM and Red Mexicana de Bioenergía (REMBIO) 46 Mateus Carlos Alberto Fedebiocombustibles Colombia 47 Meijer Madelon Oxfam Novib 48 Mejia Nariño Juan Carlos Ministerio de Agricultura y Desarrollo Rural 49 Mejía Restrepo Alberto AMBIENTAL MENTE S.A.S. 50 Morese Maria Michela FAO 51 Naik Satya Narayan Indian Institute of Technology Delhi 52 Paneque Navarro Sebastián Asociación Alterna ONG 53 Pantoja Andres Universidad de Nariño 54 Pedraza Fabio Ministerio de Relaciones Exteriores 55 Pérez Andrés Colciencias 56 Pérez Pérez Maria Adelaida GMSP Colombia SAS 41 42 45 y Ambiental Cooperación 23 Regional Workshop on Sustainable Biomass Production in Latin America Summary Report Part. Last Name First Name Organisation 57 Petra Victoria Ministeria Agricultura 58 Pinto Jorge IICA 59 Ramirez Maria Elena Colombiana de Compostajes 60 Ramírez Dainel Fondo Patrimonio Natural 61 Ramírez Martínez Jorge Enrique Departamento Administrativo de Ciencia y Tecnología 62 Rey Luengas Olga Leandra Unidad de Planeación Minero Energetica Rodriguez Lylian Red Colombiana de Energía de la Biomasa RedBioCOL 64 Rodriguez Javier E. UPME-BID Project 65 Rojas Pedro DMT Environmental Technology 66 Rueda Alejandra Solidaridad Colombia 67 Rutz Dominik WIP Renewable Energies 68 Salcedo Julian Uni-Systems Inc. 69 Sánchez Leonardo UTZ Certified 70 Schade Pjotr Everest Energy Sierra Gladis Centro Nacional de Produccion Mas Limpia y Tecnologias Ambientales CNPMLTA 72 Sierra Angie Universidad Pedagogica Nacional 73 Suescún Carlos National University of Colombia 74 Torres Jose Eddy Colombia Clean Energy Program 75 Valderrama Felipe Fundación Humedales 76 Van Hulle Frans Agro2 SA 77 Vargas Mauricio KIS Group Vergel John Agencia Presidencial de Internacional de Colombia Weertman Sven Kroftman América Latina 63 71 78 79 Cooperación 24
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