Parallel Session 13 – Biofuels in Emerging Markets

Thursday 24 October 2024, 11.30-13.00 BRT

Video recording of the session

Moderators: Bharadwaj Kummamuru (WBA, Sweden) & Glaucia Mendes Souza (USP, Brazil)

Speakers:

  • Glaucia Mendes Souza (USP, Brazil): Biofuels in emerging markets
  • Rocio Díaz-Chaves (Imperial College, UK): Biofuels production in Emerging Markets: A renewal of the sector in the Global South?
  • Aida Lorenzo (GRFA, Guatemala): Central America perspectives, opportunities and challenges to implement an ethanol blending program
  • Jossy Thomas (UNIDO, Austria): Unlocking the potential of sugar industry for SDGs in Africa
  • Unity Chipfupa (UNISA, South Africa): Small-scale bioenergy development pathways: A South African perspective
  • Monika Merdekawati (ASEAN Centre for Energy (ACE), Indonesia): Biofuel Development in ASEAN

Panelists (L-to-R): Bharadwaj Kummamuru, Glaucia Mendes Souza, Monika Merdekawati, Jossy Thomas, Unity Chipfupa, Rocio Díaz-Chaves, Aida Lorenzo.

Selected conclusions and key messages:

  • The global production of biofuels is around 160 billion litres, which represents 4% of global transport energy demand. In future, the amount of biofuels will at least need to triple. There is a major role for biofuels in emerging economies, especially in the Global South. Most of these countries are fossil fuel importers, they have a significant population growth and increasing energy demand, and at the same time they also want to decarbonize their energy and transport system. Biofuels offer a lot of opportunities, not just in reducing GHG emissions, but also in creating jobs and stimulating economic development in these regions, as well as reducing the dependency on fossil fuel imports. At the same time the development of biofuels faces a number of challenges in terms of finance, technology, policy, criticism from NGOs, and awareness. We not only need scaling up, but also scaling up at pace. Sout-south cooperation can help overcome these barriers to achieve the targets for transport decarbonization.
  • IEA Bioenergy Task 39 studied a set of emerging markets with large populations and potential for high energy demand: Argentina, Brazil, China, Colombia, Ethiopia, Guatemala, India, Indonesia, Malaysia, South Africa, Thailand, all together representing 47% of the world’s population. If this group of emerging economies were to achieve the same per capita carbon intensity of the transportation sector as the OECD average, worldwide emissions of the transportation sector would more than double. These countries have considerable biomass potentials and biodiesel and bio-ethanol produced in these regions can achieve up to 84% less GHG emissions than fossil fuels.
  • Several biofuel mandates have been implemented globally; in developing countries the driver was mostly energy security, not necessarily climate change mitigation. Half of Africa (26 countries) has a common market, which is a step towards a continental free trade area. African countries have a considerable potential in biomass residues to produce some kind of bioenergy/biofuels. More than 30% of GDP in Sub Saharan Africa is related to the export of raw material. The goal is to increase the local value addition and have a higher aggregated value, e.g. related to the valorisation of residues and co-products. Biomass is contextual; location and biomass availability, logistics and infrastructure, supportive policy/regulations and equity and inclusion are very important for financing the bioeconomy. We are often still working in silos: we need to bring policies and systems together and go for just transitions. Improving local conditions and satisfying own energy needs is part of a just transition.
  • Central America imports 100% of its fossil fuels – costing more than 10 billion USD – but exports 100% of its ethanol production to the EU and USA, which is a paradox. The region has an installed capacity for sugarcane and ethanol production and with local production could save at least 1 billion USD in fossil fuel imports. The challenges are political will and the lobby power of the oil sector in the region. It is important to prioritize a biofuel blending program as a decarbonization strategy for the transport sector, and develop sustainable, long-term public policies to implement biofuels programs. To convince policy makers, we need to show what the benefits are for the countries.
  • Several countries in Africa have a strong potential for sugarcane cultivation due to favorable climates. Africa’s share in global sugar supplies is 8% with around 10 million tons of sugar produced from over 1.5 million hectares. Most countries still have significant sugar imports to meet their domestic demand and import expenses can be high. Expanding sugarcane production would primarily focus on attaining self-sufficiency in sugar production. Clean energy can be produced from the byproducts of sugar production: bagasse for electricity and heat; molasses for ethanol as cooking fuel or transport fuel; and vinasse for biogas. Next to cleaner energy (SDG 7) and reduced greenhouse gas emissions (SDG 13), positive impacts can be expected on the reduction of health risks (SDG 3), economic development and job creation (SDG 8 & 9).
  • In South Africa 90% of sugarcane is still harvested by burning, thereby losing a lot of value and potential. The use of sugarcane biomass for energy generation diversifies energy sources and promotes inclusivity and sustainable practices. Production and management of sugar can trash (SCT) and development of SCT value chains are critical for smallholders. Total SCT potential from small-scale sugarcane farmers in Africa is 110 ktons per year. This energy is sufficient to irrigate over 54000 hectares of sugarcane. A crucial aspect is that the bioenergy value of the cane delivered by small scale farmers is recognized by millers. A comprehensive policy framework for biomass supply from different sources, and for local energy generation should be developed.
  • Southeast Asia (ASIAN) has a Regional Energy Cooperation. Industry and Transport are the highest energy-consuming sectors, dominated by coal and oil. There is a need for fuel shifting to cleaner energy sources like electricity, bioenergy, and hydrogen. Primary feedstocks for biofuels are crude palm oil in Indonesia and Malaysia; coconut oil in the Philippines; and sugarcane, molasses, and cassava in Thailand. Depending on the country, the strategy of transport decarbonization depends on biofuels, electric vehicles or a mix. In that sense there are similarities with Brazil, being developing countries with diverse resources, and the same understanding on how to prioritize the local development offer.

Contribution of sugar by-products to clean energy in Africa (From presentation Jossy Thomas, UNIDO)

  • Biofuels scalability, compatibility with existing infrastructure, and potential for substantial GHG emissions reductions make them indispensable in the energy transition and social development.
  • A low carbon intensity biofuels policy framework could be considered to stimulate biofuels production and reward the current low carbon energy effort.
  • Glaucia: talk about common challenges and productive cooperation. Amazing potential in global South: important to transition in fair way (decarb process). Many challenges solve knowledge in oil crops, sugar crops, irrigation (increased droughts). Develop crops that are more tolerant to drought. Managing practices and knowledge. Formal cooperation.