Parallel Session 17 – Grain and sugar-based biofuels
Thursday 24 October 2024, 14.00-15.30 BRT
Video recording of the session
Moderator: Federico Salcedo (US Grains Council, USA)
Speakers:
- Linda Schmid (US Grain Council, USA): Bioethanol Trends
- Bruno Alves (UNEM, Brazil): Corn ethanol production in Brazil: current status and prospects
- Sofia Arantes (Agroicone, Brazil): Sustainability of second-crop maize ethanol and its importance for energy transition
- Vitor Paulo Vargas (Yara International, Brazil): Assessing the Impact of Nitrogen Fertilization on N2O emissions in Maize Production in Representative Soils from Brazilian Subtropic
- Tiziana Pirelli (FAO/GBEP, Italy): Grain and sugar-based biofuels: the importance of sustainability assessment. Case studies from Paraguay
Panelists (from L-to-R): Tiziana Pirelli, Vitor Paulo Vargas, Sofia Arantes, Bruno Alves, Linda Schmid, Federico Salcedo.
Selected conclusions and key messages:
All over the world there are blending mandates for ethanol. This is driven by economic, environmental and health reasons. Some countries eliminate subsidies for (imported) fossil fuels, opening this market for relatively cheap (domestic) ethanol. Other countries have clean fuel mandates and renewable fuels are part of their pathway to net zero emissions. Ethanol blending (as oxygenate) also reduces harmful emissions, thereby improving air quality and replacing toxic oxygenates; this has been the initial driver for ethanol blending in the USA. In most economies a 10% blending mandate is the floor. Other countries like Brazil have higher mandates, mostly driven by domestic availability of ethanol feedstocks.
Next to sugarcane ethanol, there is a rapid expansion of corn ethanol – based on second crop maize – in Brazil. The climate and soils in subtropic areas of Brazil are suitable to grow soybean and maize as second crop in the same year. Combined with the benefit of DDG production (by-product of ethanol which can be used as animal feed) this reduces the agricultural area demand.- Second-crop corn ethanol can achieve almost 80% less GHG emissions than gasoline. Most impact still comes from the agricultural part of corn production; wood chips from eucalyptus are used to provide heat
for the process. In future, the CO2 from the process can be captured and stored (to obtain negative emissions) or used to produce green methanol (in combination with green hydrogen). - Nitrogen fertilization plays a pivotal role in the impact of agriculture in the GHG balance for corn ethanol. Fertilizers account for about 70% of the crop’s carbon footprint: 40% is related to fertilizer production and 60% results from infield N2O emissions (N2O is a very potent greenhouse gas). N2O emissions vary by soil type, with higher rates in poorly drained soils. It is recommended to work with regionalized factors to estimate N2O emissions.
Bioethanol from maize and sugarcane in Paraguay: a rapid increase of ethanol production for transport occurred between 2005 and 2016, with impacts in terms of land use change (LUC), especially in the case of sugarcane, while maize was cultivated as secondary crop. Sustainable intensification of feedstock cultivation is recommended, especially for sugarcane at small scale level. In a future scenario, a rapid increase of bioethanol consumption for transport has been foreseen. As a consequence, producer prices for sugarcane and maize will increase, making it more attractive for farmers to grow these. Nevertheless, the price for consumers is not expected to be affected in the same manner and will continue to diminish. Overall, the final consumption of sugarcane or corn for food will not be significantly affected.
Global ethanol blending trends. Sources: Inspire SGS. Ethanol mandates and average content in gasoline. Jan. 2024. USGC field office reports. 2024. ePure. Overview of biofuels policies and markets across the European Union. Feb. 2023.
