SQ Consult and IINAS have developed together for the IEA-RETD the report:
The aim of this study is two-fold:
Getting a better understanding of the scale of the opportunity for adapting existing sites to produce advanced biofuels; and,
Analysing the potential role of government policy to incentivize sit conversion.
The study concludes that significant synergies and cost savings, especially for bioethanol plants are possible. Advanced (2nd generation / 2G) biofuel plants can be implemented as stand-alone units or integrated with conventional (1st generation / 1G) biofuel plants. Integration strategies can refer to: co-location (installing a separate 2G entity adjacent to an existing 1G facility), retrofitting (altering the existing 1G production line for producing 2G biofuels alongside 1G biofuels) or repurposing (adjusting the production process of an existing (mothballed) facility to produce 2G biofuels). There are cases where significant synergies between 2G and 1G plants exist, while in other cases, integration options are very limited. The variety of conceptual and design studies identify cost-savings from co-location for all 2G conversion pathways in the order of 5-10%.
From the policy perspective, the sequence of implementation of policy instruments is crucial. A market start-up will only happen if stable support to technology development and technology commercialization is given (by way of economic incentives) for a reasonable timeframe reflecting investment lifetimes. Blending mandates would cause more harm than benefits if they were applied in an immature market where biofuel prices have not yet reached stability and fossil fuel prices remain low.
The report and presentation can be found here.
Contact person: Sergio Ugarte (firstname.lastname@example.org)