Periodic Reporting for period 2 - MUSIC (Market Uptake Support for Intermediate Bioenergy Carriers)
Reporting period: 2021-03-01 to 2023-02-28
In the last decades it has become increasingly clear that fossil fuel resources are scarce, finite and their use can harm the environment and our climate. Besides reducing our CO2 emissions – a need recognised in the Paris Agreement (2015) – increasing renewable energy production will ensure enhanced security of supply, more innovation, jobs and growth.
Bioenergy is an essential form of renewable energy, providing an estimated 60% of EU’s renewable energy production in 2017. Bioenergy is a complex and sometimes controversial topic. There is an increasing understanding that only bioenergy that is supplied and used in a sustainable manner has a place in a low carbon energy future.
Intermediate bioenergy carriers (IBC) are formed when biomass is processed to energetically denser, storable and transportable intermediary products analogous to coal, oil and gaseous fossil energy carriers. These IBCs can be further refined to final bioenergy or bio-based products or directly used for heat and power generation. Despite the fact that the use of IBC introduces an extra conversion step - with associated financial and energy costs– there are significant advantages to the use of IBC as compared to raw biomass, and reputable companies are working on their deployment. Current application remains however modest, compared to the direct conversion of biomass to energy. With the MUSIC project, wider implementation of different kinds of IBCs is facilitated, including torrefied biomass, pyrolysis oil and microbial oil.
The overall objective of the MUSIC project was to facilitate the further introduction of intermediate bioenergy carriers by developing feedstock mobilisation strategies, improving logistics and development of IBC trade centres.
Bioenergy is an essential form of renewable energy, providing an estimated 60% of EU’s renewable energy production in 2017. Bioenergy is a complex and sometimes controversial topic. There is an increasing understanding that only bioenergy that is supplied and used in a sustainable manner has a place in a low carbon energy future.
Intermediate bioenergy carriers (IBC) are formed when biomass is processed to energetically denser, storable and transportable intermediary products analogous to coal, oil and gaseous fossil energy carriers. These IBCs can be further refined to final bioenergy or bio-based products or directly used for heat and power generation. Despite the fact that the use of IBC introduces an extra conversion step - with associated financial and energy costs– there are significant advantages to the use of IBC as compared to raw biomass, and reputable companies are working on their deployment. Current application remains however modest, compared to the direct conversion of biomass to energy. With the MUSIC project, wider implementation of different kinds of IBCs is facilitated, including torrefied biomass, pyrolysis oil and microbial oil.
The overall objective of the MUSIC project was to facilitate the further introduction of intermediate bioenergy carriers by developing feedstock mobilisation strategies, improving logistics and development of IBC trade centres.
In MUSIC, the state-of-the-art of biomass mobilisation and IBC logistics, trade centres and industrial production was mapped, building on results/outcomes of earlier EU projects/activities. Engaging with stakeholders the potential IBC contribution to 2030 EU energy policy targets was assessed. The legal, institutional and political framework conditions at EU level and at the level of case study countries was identified and summarised in a framework conditions report. In the project separate attention was paid to providing advice to policy makers on European and national level. The first summary paper for policy makers, recapping all mapping findings on the perspective for IBCs uptake, obtained from desk research, case study development, expert interviews and online workshops, was produced in 2021. A second paper for policy makers was produced in early 2023.
Biomass mobilisation and chain optimisation software tools were assessed and developed. In addition, a smart phone app tool, called binter (Biomass INTERmediates), was developed (Greece). A series of advanced and strategic case studies for market up-take of IBCs was conducted. The case studies are characterised by strong industrial participation, ranging from SMEs to large multinationals. In four case study regions (Sweden/Finland, Italy, Greece, and International) value chains were assessed and business plans (reflecting a production scale appropriate for implementation in the near future) were prepared . In each case study the economic viability of IBC production, considering availability of renewable energy support schemes and carbon allowances, was assessed. The avanced case studies were related to more immediate implementations, while the strategic studies showed a vision aimed at wider development.
With regard to the Industry Platform, an Industrial Advisory Board was set-up, a database of market actors was established, the industrial sectors to be addressed in Industry Working Groups were determined. Information on the technical, economic, environmental and political drivers and barriers of IBCs was collected and assessed through an survey with the biomass torrefaction, biomass pyrolysis and microbial oil industries respectively.
Various documents and reports were produced to facilitate the implementation of Intermediate Bioenery Carriers, such as the White Papers on Pyrolysis oil, Torrefied Biomass, microbiial oil and biochar. Sector-specific market uptake documents were produced on the use of pyrolysis oil in the marine sector, torrefied biomass in the steel sector and the power sector, and a guidance document for IBC project developers was drafted.
The overall picture that emerges is that there are many (potential) uses for IBCs, as e.g. energy carrier, reductant, or feedstock for bio-based products, but the market is still young and the EU market volume is relatively small.
Biomass mobilisation and chain optimisation software tools were assessed and developed. In addition, a smart phone app tool, called binter (Biomass INTERmediates), was developed (Greece). A series of advanced and strategic case studies for market up-take of IBCs was conducted. The case studies are characterised by strong industrial participation, ranging from SMEs to large multinationals. In four case study regions (Sweden/Finland, Italy, Greece, and International) value chains were assessed and business plans (reflecting a production scale appropriate for implementation in the near future) were prepared . In each case study the economic viability of IBC production, considering availability of renewable energy support schemes and carbon allowances, was assessed. The avanced case studies were related to more immediate implementations, while the strategic studies showed a vision aimed at wider development.
With regard to the Industry Platform, an Industrial Advisory Board was set-up, a database of market actors was established, the industrial sectors to be addressed in Industry Working Groups were determined. Information on the technical, economic, environmental and political drivers and barriers of IBCs was collected and assessed through an survey with the biomass torrefaction, biomass pyrolysis and microbial oil industries respectively.
Various documents and reports were produced to facilitate the implementation of Intermediate Bioenery Carriers, such as the White Papers on Pyrolysis oil, Torrefied Biomass, microbiial oil and biochar. Sector-specific market uptake documents were produced on the use of pyrolysis oil in the marine sector, torrefied biomass in the steel sector and the power sector, and a guidance document for IBC project developers was drafted.
The overall picture that emerges is that there are many (potential) uses for IBCs, as e.g. energy carrier, reductant, or feedstock for bio-based products, but the market is still young and the EU market volume is relatively small.
MUSIC was expected to lead to:
- Facilitate the introduction of these technologies and increase the share of renewable energy in the final energy consumption;
- Lead to substantial and measurable reductions for project developments, whilst still fully addressing the needs for environmental impact assessments and public engagement;
- Develop more informed policy, market support and financial frameworks, notably at national, regional and local level, leading to more cost-effective support schemes and lower financing costs for RES facilities.
The three impacts are all expected to lead to market uptake of IBCs (in particular torrefied biomass, pyrolysis oil and microbial oil), for stand-alone use, or combined use with fossil resources, in sectors such as: steel mills, cement kilns and other energy intensive industries, oil refineries for production of advanced biofuels
On practical terms, the project was expected to have a meaningful, quantifiable but ultimately limited direct impact on the increase of renewable energy in final energy consump-tion, through the advanced and strategic case studies that are under development. Although not all of these cases will lead to actual IBC deployment, through the interaction with the project they are making accelerated progress that will hopefully lead them into adopting such solutions in the longer run and under favourable conditions.
With respect to the anticipated reductions for project development, the case study development has yielded practical knowledge on mobilisation strategies (GR, IT) cost effective logistics (all cases) and trade centres (GR), which will likely reduce future project development time and costs. The Guidance document that was developed in WP6 is to facilitate IBC (technology) introduction and reduce project development time and costs
Through the activities of WP2, WP6 and WP7 the groundwork for the development of more informed policy, market support and financial framework conditions was established
MUSIC is expected to lead to more bioenergy production in these industries due to 1) the expected implementation of (part of) the developed value chains, and 2) because of the many other activities that will – more indirectly - facilitate market uptake of IBCs.
The renewable energy that is to be produced in the case all the case studies are implemented is substantial, totalling 4.66 PJ/year (all advanced case studies combined) or even 17.33 PJ/year (all strategic case studies combined). Main reason for these substantial numbers is the medium/large scale industrial focus of the MUSIC project.
- Facilitate the introduction of these technologies and increase the share of renewable energy in the final energy consumption;
- Lead to substantial and measurable reductions for project developments, whilst still fully addressing the needs for environmental impact assessments and public engagement;
- Develop more informed policy, market support and financial frameworks, notably at national, regional and local level, leading to more cost-effective support schemes and lower financing costs for RES facilities.
The three impacts are all expected to lead to market uptake of IBCs (in particular torrefied biomass, pyrolysis oil and microbial oil), for stand-alone use, or combined use with fossil resources, in sectors such as: steel mills, cement kilns and other energy intensive industries, oil refineries for production of advanced biofuels
On practical terms, the project was expected to have a meaningful, quantifiable but ultimately limited direct impact on the increase of renewable energy in final energy consump-tion, through the advanced and strategic case studies that are under development. Although not all of these cases will lead to actual IBC deployment, through the interaction with the project they are making accelerated progress that will hopefully lead them into adopting such solutions in the longer run and under favourable conditions.
With respect to the anticipated reductions for project development, the case study development has yielded practical knowledge on mobilisation strategies (GR, IT) cost effective logistics (all cases) and trade centres (GR), which will likely reduce future project development time and costs. The Guidance document that was developed in WP6 is to facilitate IBC (technology) introduction and reduce project development time and costs
Through the activities of WP2, WP6 and WP7 the groundwork for the development of more informed policy, market support and financial framework conditions was established
MUSIC is expected to lead to more bioenergy production in these industries due to 1) the expected implementation of (part of) the developed value chains, and 2) because of the many other activities that will – more indirectly - facilitate market uptake of IBCs.
The renewable energy that is to be produced in the case all the case studies are implemented is substantial, totalling 4.66 PJ/year (all advanced case studies combined) or even 17.33 PJ/year (all strategic case studies combined). Main reason for these substantial numbers is the medium/large scale industrial focus of the MUSIC project.