UNDP, Preliminary Assessment of Bioenergy Production in the Caribbean, 12-2009

7/31/2019 UNDP, Preliminary Assessment of Bioenergy Production in the Caribbean, 12-2009

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Preliminary Assessment of Bioenergy

Production in the Caribbean

United Nations Development Programme


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United Nations Deelopment Programme (UNDP) Barbados and the OECS, December 2009

This publication or parts o it may be reproduced or educational or non-prot purposes without special permission

rom the United Nations Deelopment Programme, proided acknowledgement o the source is made.

Citation: UNDP (2009) Preliminary Assessment o Bioenergy Production in the Caribbean. United Nations

Deelopment Programme, Barbados and the OECS

The iews epressed in this publication are those o the author and do not necessarily represent those o the

United Nations, including UNDP, or its Member States.

Author: Danielle Eanson

Editing and prooreading: Daid A. Taitt

Design and layout: Blueprint Creatie, Barbados


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Preliminary Assessment o Bioenergy

Production in the Caribbean


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UNDP is the UNs global development network, advocating or change and connecting

countries to knowledge, experience and resources to help people build a better lie. We are

on the ground in 166 countries, working with them on their own solutions to global and

national development challenges. As they develop local capacity, they draw on the people

o UNDP and our wide range o partners.

Energy and environment are essential or sustainable development. The poor are

disproportionately aected by environmental degradation and lack o access to clean

aordable energy services. These are global issues as climate change, loss o biodiversity and

ozone layer depletion cannot be addressed by countries acting alone. UNDP helps countries

strengthen their capacity to address these challenges at global, national and community

levels, seeking out and sharing best practices, providing innovative policy advice and linking

partners through pilot projects that help poor people build sustainable livelihoods.

Energy andEnironment


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FOREWORD 4

PREFACE 6

ACRONYMS 8

UNITS AND NOMENCLATURE 10

1. INTRODUCTION 11

1.1. ADVANTAGES OF BIOENERGY 13

1.2. DISADVANTAGES OF BIOENERGY 15

1.3. OTHER ISSUES AND UNCERTAINTIES 15

1.4. BIOFUELS, ENVIRONMENT AND CLIMATE CHANGE 161.4.1. Land use change and intensication 16

1.4.2. Habitat destruction and biodiversity loss 17

1.4.3. Water and soils 18

1.4.4. Climate change 18

1.5. WHY SHOULD BIOENERGY BE CONSIDERED FOR THE CARIBBEAN REGION? 19

Table o Contents


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2. BIOETHANOL 23

2.1. INITIATIVES IN THE CARIBBEAN 26

2.2. INITIATIVES IN LATIN AMERICA 29

3. BIODIESEL 31



4. BIOGAS AND SOILD FUELS 35


4.1.1. Biogas 36

4.1.2. Biomass cogeneration 37

4.1.3. Fuelwood 39


4.2.1. Biogas 39

4.2.2. Biomass cogeneration 40

5. ECONOMIC COMPARISON 41

6. LESSONS LEARNED 45

6.1. UTILIZATION OF AVAILABLE FUNDING MECHANISMS AND OTHER RESOURCES 45

6.2. APPROPRIATE NATURE OF ACTIVITIES 47

6.3. INTERAGENCY COORDINATION AND RESOURCE SHARING 47

6.4. GOVERNMENT INTERVENTION AND INCENTIVES 47

6.5. PROGRESSIVE DEVELOPMENT 49

6.6. PRIVATE SECTOR SUPPORT 49

6.7. MARKET LIBERALIZATION 50

7. OTHER RENEWABLE ENERGY TECHNOLOGIES IN THE CARIBBEAN 51

7.1. WIND ENERGY 51

7.2. SOLAR POWER 53

7.3. GEOTHERMAL ENERGY 54

7.4. HYDROELECTRICITY 55

8. SECOND GENERATION BIOFUELS 56

8.1. THE FISCHER-TROPSCH PROCESS 56

8.2. LIGNOCELLULOSIC BIOETHANOL 58

9. CONCLUSIONS 59

REFERENCES 63

TABLE OF CONTENTS


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List o Figures

Figure 1: Energy and environmental balances or various crops

used in ethanol production 24

Figure 2: Restructuring and diversication o the Barbados cane industry 26

Figure 3: Fuel station in Brazil displaying prices or ethanol (at top) and

conventional gasoline 29

Figure 4: Energy and environmental balances or various crops used in

biodiesel production 32

Figure 5: Biodiesel manuacture rom waste cooking oil in Barbados 32

Figure 6: Distribution o CDM applications among countries o Latin America

and the Caribbean submitted between January 2005 and April 2008 46

Figure 7: Active volcanic centres o the Lesser Antilles 55

List o Tables

Table 1: Potential biouel crops as petroleum substitutes 12

Table 2: Countries in the Caribbean identied as having good or excellent

potential or bioenergy development 21

Table 3: Sugar cane area under cultivation, production and yield or countries

in Latin America and the Caribbean 24

Table 4: Ethanol production potential or various countries in Latin America

and the Caribbean to ull demand or E10 25

Table 5: Comparative eciency o boilers in energy production rom cane 38

Table 6: Select demographic and energy statistics or selected countries in

Latin America and the Caribbean 41

Table 7: Projected or existing capacity or bioethanol production or selectedcountries in Latin America and the Caribbean 42

Table 8: Projected capacity or biodiesel production in Brazil and Barbados 43

Table 9: Projected or existing capacity or production o energy rom solid

biomass or selected countries in the Caribbean 43

Table 10: Projected or existing capacity or production o energy rom landll

gas in Jamaica and Barbados 44

List o Boxes

Box 1: The case or bioenergy in the Caribbean 20Box 2: Operation o the FICFB gasication system 57

TABLE OF CONTENTS


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Foreword

The United Nations Development Programme (UNDP) is the UNs global develoment

network, an organisation advocating or change and connecting countries to knowledge,

experience and resources to help people build a better lie. The sub-regional oce located

in Barbados serves the ten countries o Barbados and the Organisation o Eastern Caribbean

states (OECS). These small island developing states (SIDS), which have to contend with

the challenges o open and undiverisied economies, continuing social inequities, a high

incidence o poverty and HIV/AIDS and vulnerability to a variety o natural hazards, such

as volcanic eruptions, earthquakes, hurricanes, oods and landslides, and climate change,

also need to nd ways to address their almost complete dependence on imported uel, and

to put in place a sustainable energy sector that can help drive the transormation o their

economies. .

Bioenergy in the Caribbean: Supporting Policy Dialogue on Sustainable Energy Services

or Small Island Developing States through South-South Cooperation was a project

implemented through UNDP with unding assistance rom the United Nations Foundation.

It was designed to assist Caribbean SIDS identiy avenues and practices to help improve their

energy security and access to sustainable energy services. Specic objectives ocused on

enhancing knowledge management or the renewable energy sector, identiying capacity

needs and subsequently addressing these needs, and intra-regional dialogue and sharing

toward a sustainable energy path.

National ocus group consultations were hosted in ve islands to ascertain the state and

needs o their energy sectors. Training workshops were held or science teachers and

electrical and technicians engineers rom various countries to enhance their knowledge

and skills in renewable energy and its applications. An impact assessment was conducted

across nine countries to study the degree o change caused by energy projects in the

last decade in terms o improving energy security and sustainability through reduced

dependence on ossil uel imports and increasing use o indigenous renewable energy. It

also identied remaining gaps and barriers in the industry, and oered recommendations

or a way orward. Alongside CARICOM and the Caribbean Renewable Energy DevelopmentProgramme (CREDP), the project supported development o an interactive online regional

knowledge management hub the Caribbean Inormation Platorm on Renewable Energy

(CIPORE: www.cipore.org). This site is a central hosting point or all data and inormation on

renewable energy activities in the region, and allows communication between, and learning

amongst, stakeholders. Also, this document, an output under the project, examines the


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easibility o bioenergy production in the Caribbean, to be used as an aid in developing

ollow on plans o action.

UNDP is committed to, and actively supports, initiatives that seek to reduce poverty and

vulnerability. Renewable energy can provide access to clean, aordable energy services or the

poor and rural communities. Bioenergy can help improve agricultural livelihoods and produce

valuable energy rom waste, thus improving waste treatment and reducing use o landlls.

Sustainable bioenergy production is not a panacea or all energy challenges, and aces

debates surrounding its impact on ood markets and whether it can be truly sustainable and

lessen greenhouse gas emissions. Nevertheless, it represents a potential solution or reviving

agriculture, diversiying local energy markets and improving energy security.

Related climate change mitigation and adaptation measures assist in sustainable

management o water resources, reduction o air pollution, conservation o biodiversity, and

ecosystem protection. Ultimately, human settlements are dependent on such environmental

goods and services. Climate change, disaster risk, and poverty are inextricably intertwined,

and UNDP continues to strive to strengthen the capacity o developing countries to charta low-emissions path because current patterns threaten to halt and even reverse the

development gains o the last ew decades, and reduce the likelihood o achieving the

Millennium Development Goals by 2015. Climate change adaptation and attainment o a

sustainable energy path demand that uture development be done dierently.

Michelle Gyles-McDonnough

UNDP Resident Representative

Barbados and the OECS

FOREWORD


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Preace

This paper gives a brie overview o bioenergy technology and applications and represents

a summary compilation o work done by various bodies, reerenced at the end o the

document, throughout Latin America and the Caribbean.

An extensive technical report on the economics and easibility o biouels in the Caribbean

region entitled Technical, Social and Economic Aspects of Agro-energycan be requested rom:

Inter-American Institute or Cooperation on Agriculture

St. Lucia Country Oce

P.O Box 1223

Castries

St. Lucia

Tel: +1 758 451 6760/1

Fax: +1 758 451 6774

Email: [email protected]

This document details experiences rom around the globe, including the Philippines,

Australia, Cuba, Brazil, and India. It also analyses challenges to and opportunities or

developing an agro-energy industry in the Caribbean, including requirements or policy

and legal rameworks, investment capital, hardware and inrastructure, national capacity

and public ownership. The accompanying Strategy for the Development of an Agro-energy

Programme for the Caribbean Region was presented at a regional high-level seminar on

expansion o sustainable bioenergy opportunities in August 2007. It outlines strategies and

programmes to enable the Caribbean to develop a sustainable bioenergy production sector,

and the role o IICA in realizing this goal.

The World Bank has also assembled a policy research working paperReview of Environmental,

Economic and Policy Aspects of Biofuels which deals with these issues rom a global

perspective. Further, the World Bank has developed a RE Toolkit: a resource for renewable

energy development which analyses grid-connected and stand-alone systems, barriers to

their implementation, and means to overcome them, as well as an overview o the various

renewable technologies, including bioenergy.

The International Institute or Energy and Development (IIED) published a paper on Biofuels

production, trade and sustainable development: emerging issues covering such topics as

market development, trade barriers, WTO and GATT rules, and sustainability questions


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relating to economic aspects such as energy diversication, environmental issues such as

greenhouse gas mitigation, and social implications such as ood security.

Further, in 2008 FAO in its annual publication The State of Food and Agriculture ocused on the

subject o biouels prospects, risks and opportunities. With a global outlook, the document

examines a number o issues, including economic and policy drivers, markets, and impacts

on poverty, ood security and the environment.

Finally, the International Union or Conservation o Nature (IUCN) produced a guide or

toolkit entitled Implementing Sustainable Bioenergy Production: A Compilation of Tools and

Approaches suggesting ways to reduce, manage and mitigate the risks associated with

biouels. It targets a variety o stakeholders, including communities, civil society, project

developers, businesses, land owners and government ministries.

PREFACE


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Acronyms

AFD Agence Franaise de Dveloppement (French Development Agency)

B2 2% biodiesel mixture with conventional diesel

BAMC Barbados Agricultural Management Company Ltd

BL&P Barbados Light and Power Company Ltd

BNOCL Barbados National Oil Company Ltd.

CARICOM Caribbean Community

CARILEC Caribbean Electric Utility Services Corporation

CBI Caribbean Basin Initiative

CCGT Combined cycle gas turbine

CDB Caribbean Development Bank

CDM Clean Development Mechanism

CER Certied emission reductions

CIDA Canadian International Development Agency

CREDP Caribbean Renewable Energy Development Programme

E10 10% ethanol mixture with conventional gasoline

ECLAC Economic Commission or Latin America and the Caribbean

EIA Environmental impact assessment

EU European Union

FFEM Fonds Franais pour lEnvironnement Mundial (AFD)

FFV Flex-uel vehicle

GEF SGP Global Environment Facility Small Grants Programme

GHG Greenhouse gas

GMO Genetically modied organism

GRENLEC Grenada Electricity Services Ltd

GTZ Deutsche Gesellschat r Technische Zusammenarbeit (German Agency or

Technical Cooperation)


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IADB Inter-American Development Bank

IICA Inter-American Institute or Cooperation on Agriculture

IIED International Institute or Energy and Development

IPCC Inter-governmental Panel on Climate Change

IUCN International Union or Conservation o Nature

JPSCo Jamaica Public Service Company

LCA Lie cycle analysis

LFG Landll gas

LPG Liqueed petroleum gas

MTBE Methyl tertiary-butyl ether

MDG Millennium Development Goals

MOU Memorandum o understanding

MSW Municipal solid waste

NGO Non-governmental organization

OAS Organization o American States

OLADE Organizacin Latinoamericana de Energa (Latin American Energy Organization)

OPEC Organization o the Petroleum Exporting Countries

OUR Oce o Utilities Regulation, Jamaica

PIA Power interchange agreement

PNPB Programa Nacional de Produo e Uso de Biodiesel (National Biodiesel Production and Use

Programme)

PPA Power purchase agreement

SRC Scientic Research Council, Jamaica

UNDP United Nations Development Programme

UNFCCC United Nations Framework Convention on Climate Change

VINLEC St. Vincent Electricity Services Ltd

VOC Volatile organic compounds

VOME Vegetable oil methyl ester nits and Nomenclature Introduction

ACRONYMS


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Units and Nomenclature

bbl barrels

cal calories

CH4

methane

CO carbon monoxide

CO2

carbon dioxide

t eetG giga (109)

gal gallons

ha hectares

H2O water/water vapour

HFCs hydrouorocarbons

J Joules

k kilo (103)

km kilometres

l litres

lpd litres per day

M mega (106)

m3 cubic metresN Newtons

N2O nitrous oxide

NO2

nitrogen dioxide

O3

ozone

PFCs peruorocarbons

SF6

sulphur hexauoride

tCO2

tonnes o CO2

toe tonnes o oil equivalent

W Watts

Wh Watt-hours

C degrees Celsius

Euros

$ United States dollars (unless otherwise stated)


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Biological energy (bioenergy) is derived rom non-ossil

organic (living or recently living) matter and its metabolicby products.

Further distinction can be made, where biouels are liquid or gaseous uels

rom biomass which can be used to replace natural gas and some petroleum

derivatives, e.g. diesel, gasoline/petrol, LPG1. However these terms are oten used

interchangeably.

Typically starchy and cereal crops are used to produce ethanol by ermentation. Biodiesel is

extracted rom oily plants and seeds, animal ats and waste vegetable oils. Biogas, which is

mostly composed o methane, is generated during the anaerobic decomposition o organic

matter, usually municipal solid waste (MSW) and sewage. Other organic by-products o

industrial and manuacturing processes could also be considered biouels when used or

energy or electricity, e.g. black liquor produced rom paper and pulp production. These areconsidered rst generation biouels.

Selection o bioenergy crops, and thus the success o biouel development, is inuenced by

a number o actors, including:

agro-industrial productivity (litres o uel per hectare);

1 IUCN, 2008a

Introduction

1


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1 INTRODUCTION

power generation eciency (kWh/tonne);

technological availability (access and aordability);

energy balance (energy contained/delivered : energy used in production);

environmental impact o production;

competition with ood production; and

incentives and barriers.

A wide array o crops is available or use as biouel eedstock or petroleum substitution, and

some are still being researched. Some o these are outlined in Table 1.

Second generation biouels use a broader range o cellulosic biomass, including grasses,

woody perennials and agricultural wastes, and are converted using more advanced

biochemical and thermochemical processes. Third generation biouels consist o potential

uture uels rom energy-designed eedstocks or much improved production and

conversion eciencies.2

Bioenergy is not new. Statistics rom the International Energy Agency (IEA) in 2007 indicated

that bioenergy accounted or 10 percent o total primary energy and 78 percent o all

renewable energy in 2005. In some developing countries it constitutes up to 80 percent o

primary energy supplies. Due to recent rapid expansion o the sector, judicious planning and

adaptation o existing knowledge to local contexts are necessary to maximize opportunities

while minimizing environmental risks and social inequalities.3

2 IUCN, 2008a

3 IUCN, 2008a

TABLE 1: POTENTIAL BIOFUEL CROPS AS PETROLEUM SUBSTITUTES

Plant Fuel substitution Primary biomass

yield

Secondary

biomass yield

jatropha

castor

diesel transport, power generation seeds -

cassava gasoline starch tubers -

coconut diesel transport, power generation oil shells

oil palm diesel transport, power generation oil shells

ast growing trees diesel or uel oil power generation wood -

ast growing legume

trees

diesel or uel oil power generation

LPG

leaves wood

sugar cane gasoline

diesel transport


sucrose bres and cane

trash

energy cane gasolinediesel transport


bres and canetrash

sugars

Source: Adapted rom IICA, 2006b


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1 INTRODUCTION

1.1 Adantages o bioenergyMany waste products can be converted into a useul resource by extracting uels rom them.

This conversion will also lessen the burden on waste treatment and disposal processes or

serve as a treatment system in itsel and, consequently, also minimize pollution o land,

groundwater and aquatic environments. Biomass residue rom the processing o rice,

soybean, sugarcane, used vegetable oils and organic MSW are all very valuable resources

that can be converted to energy.

Indigenous and renewable energy sources, coupled with energy eciency measures,

signicantly enhance a countrys energy security and sustainability by reducing the

importation o increasingly expensive and nite ossil uels. Price volatility and resource and

market monopolization all ampliy the risk o supply decits to non-oil-producing countries.

Developing states in particular are heavily reliant on imports to sustain their small and ragile

economies, and are spending greater proportions o their oreign exchange reserves on uel

imports. Thus, locally produced energy sources will translate into annual savings o millions

in oreign exchange on uel importation bills.

Using local energy sources oers opportunities or vast improvements in energy eciency

compared to standard practices due to the requisite new inrastructure that is required,

which one expects to be the best reasonably available. Due to the higher capital costs

and desire to shorten payback times, production capacity and eciency would also be

optimized. Additionally, because o pre-existing attributes such as a well-established and

organised sugar industry and market, as well as the technological developments already

available on the market, capital costs relating to areas such as research and land acquisition

are averted.

Bioenergy production can increase agricultural productivity and rural development and

assist in poverty alleviation. Sustainable industries mean sustainable jobs. Job creation woulddepend on the particular crop and its level o mechanization, and there is also employment

potential in the construction sector and technical specializations.

The value added and associated potentials or diversication o agricultural products beyond

the traditional outputs can help stabilize the cost o produce and prevent gluts in the market

because the crop is utilized more eciently. This added value increases when there is the

capacity to convert the crop to uel rather than simply growing eedstock or export. Further,

bioenergy production could help stabilize or revive the agricultural sector, specically the

sugar industries in the region, shielding them rom volatility in prices and export demand4.

Ethanol and biodiesel can be blended with conventional uels in internal combustion

engines with no need or modication. Biodiesel can be introduced directly into dieselengines. A blend o up to 10 percent o ethanol with gasoline (E10) is possible without engine

alteration. These uels have comparable mileage perormances. Flex-uel vehicles (FFVs)

4 Loy and Coviello, 2005


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1 INTRODUCTION

permit any blend o the uels, even complete substitution,

and are able to operate on conventional ossil uels when

biouels are not available. Ethanol is an excellent oxygenate

(reduces carbon monoxide (CO) emissions) and raises the

octane number (acts as an anti-knocking agent) o uel,

and can substitute or the petrochemical uel additive

MTBE (methyl tertiary-butyl ether) which has been shown

to pollute groundwater.

Biouels can be substituted or traditional cooking uels,

such as kerosene, wood and charcoal, which are typically

used in poor and/or rural households. This would reduce

pressure on orest resources as well as improve indoor air

quality by reducing particulates and pollutant gases within

the home. By extension this improves the health o those

more routinely exposed and more vulnerable to such

conditions, such as women, children and the elderly, andlessens the risk o developing respiratory problems.

Some energy crops can help to restore marginal and

degraded lands and thus increase agriculturally productive

land area without encroaching on other uses. Jatropha is

drought-resistant, needs minimal inputs and helps stabilize

soil and retain moisture. It starts producing ater less than

a year and as a perennial it does not require uprooting the

plant to reap the crop. The land could also be potentially

used or intercropping.

Bioenergy supplies valuable commodities or the exportmarket, particularly targeting Annex I countries5 that

have specic reduction GHG targets in accordance with

the Kyoto Protocol o the United Nations Framework

Convention on Climate Change (UNFCCC). This opens

avenues or developing countries to pursue Clean

Development Mechanism (CDM) unding oered under

the UNFCCC. It will allow them to secure scal support or

the development o the industry, mitigate climate change,

make progress in achieving the Millennium Development

Goals (MDGs) and earn revenue rom carbon credits.

5 Annex I Parties to the UNFCCC are: Australia, Austria, Belarus, Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia,

European Community, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Liechtenstein, Lithuania,

Luxembourg, Monaco, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Russian Federation, Slovakia, Slovenia, Spain,

Sweden, Switzerland, Turkey, Ukraine, United Kingdom o Great Britain and Northern Ireland, United States o America

Denition: CLIMATE CHANGE

Change in the state o the climate that can be

identied by changes in the mean and/or ariability

o its properties that persists or an etended

period, typically decades or longer, whether due to

natural ariability or human actiity. (IPCC, 2007)

Change in climate attributed directly or indirectly

to human actiity that alters the composition o

the global atmosphere and which is in addition

to natural climate ariability obsered oer

comparable time periods. (UN, 1992)

Climate change is anticipated to hae many aderse

impacts, including sea leel rise, melting o the polarice caps, altered precipitation patterns and seasons,

increased requency and intensity o etreme weather

eents (e.g. droughts, oods, storms), migration

and etinction o species, epanded range o some

ector-borne diseases (e.g. malaria). These hae

repercussions or social systems such as reduced

reshwater aailability due to saltwater intrusion

into aquiers, decline in agricultural productiity, and

displacement o settlements.

Some o the eects are already being eperienced in

places around the world, most pointedly in low-lying,

small islands and in poor communities.

The principal cause is accepted to be global warming

o the earths surace and lower atmosphere resulting

rom rising greenhouse gas concentrations (e.g. CO2,

CH4, N

2O, O

3, SF

6, HFCs, PFCs, H

2O). These emissions

are rom anthropogenic actiities such as industries,

transport, agriculture, waste incineration and

deorestation, with eidence indicating that signicant

changes began during the Industrial Reolution o

the 1700s. CO2

is responsible or about 60% o this

enhanced greenhouse eect.


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1 INTRODUCTION

Disadantages o bioenergy

Competing land uses must be addressed. Growing energy crops may reduce the amount

o land available or growing ood, thus raising ood prices, which has been identied as

a contributor to the current ood crisis. It may also impact on housing needs, encroach

on protected ecosystems, and encourage deorestation. Land ownership, land tenure and

access to land play an important role and where these structures are weak or ill-dened the

poor may become marginalized as large agri-businesses expand their production.

The oreited revenue rom imports must be taken into account. Fuel import duties also

constitute substantial earnings or governments and lessening the quantity o oil imported

automatically reduces this income source.

The nancial competitiveness o bioenergy is highly variable. Inuential actors include

the biouel under consideration, the type and place o origin o eedstock used, and the

technology used. For instance, sugar cane yields more ethanol per ha than maize. Financial

viability also depends heavily on world oil prices. OPEC (Organization o the PetroleumExporting Countries) prices saw a 53 percent increase rom January 2008 to the peak six

months later at $140/bbl in July 2008. This was ollowed by a rapid crash to 2005 levels with

the daily price alling below $40/bbl at least 15 times between December 2008 and February

20096. Thus the viability and appeal o renewables have also uctuated.

Initially bioenergy generation, particularly production and distribution inrastructure, is

very capital intensive. Private sector investment is a critical component in mobilizing such

ventures.

Trade barriers and subsidies distort the market and decrease the market access and

competitiveness or developing countries where bioenergy can be produced more eciently,

as demonstrated by Brazil. Tari systems tend to encourage developing countries to exportunprocessed eedstock to the developed countries o Europe and the US where the majority o

demand resides, thus circumventing possibilities to gain rom value added products.

Other issues and uncertainties

There are a number o other actors accompanying development o bioenergy that may lead

to positive and/or negative environmental and socioeconomic impacts, which need to be

analysed comprehensively.

For instance, the need or new inrastructure such as processing plants, and possibly roads

and mass transportation mechanisms, is benecial in terms o providing employmentand increasing skills o the work orce. However consideration must be given to where

this inratructure is being placed, or instance whether it will displace settlements, cause

deorestation, or be in a hazard-prone area. Introduction o genetically modied crop varieties

(GMOs) can improve crop yields, reduce the use o agrochemicals and improve resistance

to pests and disease. Alternatively, it is eared that GMOs could destroy local biodiversity

6 http://www.opec.org/home/basketDayArchives.aspx

1.2

1.3


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1 INTRODUCTION

and be detrimental to small armers because o the high costs o seeds and monopolized

manuacture. The need or economies o scale to increase production eciency can be a

drawback or small armers. In another light, armers could orm cooperatives and pool

resources to maximize output and keep themselves competitive.

Another aspect is the introduction o incentives to promote the adoption o alternative uels

by industry and the public. These may include tax allowances or establishing production

acilities, reduced uel taxes on biodiesel and ethanol compared to traditional uels, subsidies

or purchasing FFVs, and rebates or tax waivers on production or conversion equipment.

As the Brazilian ethanol and Barbados solar water heater experiences demonstrate, such

measures can prove overwhelmingly successul to catalysing the widespread uptake o

renewable energy in a country.

On the downside they can deplete scarce resources, take ecologically important lands, and

increase pollution i not comprehensively planned. Developers must take due consideration

o the types, nature and quantities o co-products and waste products that will be generated

during the production process and how they will be treated. For instance, i chemicals arebeing used to scrub cooling towers the efuent cannot be mixed into a biological treatment

system designed or the organic components o the waste. But there are treatment systems

which eectively remove contaminants such that the wastewater can be reused in processing.

Biological systems may also release methane that can be captured or electricity generation.

Biouels, enironment and climate change

1.4.1. Land use change and intensifcation

Competition or land will intensiy as the market demand or and the production o bioenergy

expand. Pressures on orests and human developments are increasing. In many countries,or example, the USA, more agricultural land is being segregated to grow maize and other

crops or ethanol production as opposed to human consumption. This trend has led to the

increase in prices o grain and staple oods in the region, as well as in eed prices or livestock,

thus jeopardizing the ood security o many in terms o quantity and aordability o ood.

There is also the potential to increase landlessness as rural communities and indigenous

people dependent on orest resources and ecosystem services are displaced. Deensive

arguments include the act that marginal lands can be used to grow energy crops; biouels

are not envisioned as completely replacing ossil uels; and ood shortages are more related

to inequitable distribution and high unemployment, thereore the betterment o livelihoods

through bioenergy development will increase disposable income.

Land use conversion is a critical actor in assessing the greenhouse gas and energy balanceso biouels through lie cycle analysis (LCA). This process compares the amount o energy

used in the production o biouels, the energy content o the biouel, and the amounts and

types o GHGs emitted at various stages o the process (cultivation, harvest, processing,

transport, etc). Land use conversion to biouel production can also trigger GHG release. For

instance, the conversion o grassland to energy crops can release 300tCO2(tonnes o carbon

dioxide) per ha per year; or orests it can be as much as 600-1,000tCO2

per ha per year. This

1.4


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1 INTRODUCTION

compares to 1.8tCO2

per ha per year saved by ethanol rom maize, and a possible 8.6tCO2

per

ha per year saved using second generation crops. Some research even indicates that over a

30-year period more CO2

would be sequestered (removed rom the air) by employing orest

conservation and restoration alongside uel eciency rather than by using biouels.7

Growth in bioenergy demand ar outstrips the historic rate o growth in crop yields. Whether

this demand will be met by increased productivity, expansion in cultivated area, new crop

varieties and technologies or improved practices determines the sustainability o the

industry, the greenhouse gas balance, and environmental impacts. Previously non-viable

plots may become protable as commodity prices rise; this may lead to the conversion o

unsuitable lands, or reintroduction o ormer agricultural lands to production. Adoption o

integrated pest management, irrigation, new research and other means may be incorporated

in order to increase yields on lands currently in production.8 However, the Intergovernmental

Panel on Climate Change (IPCC) Fourth Assessment Report (4AR) surmises that even with

relatively modest temperature increases (1-2C) crop yields in tropical areas are expected to

decrease9. By 2050 yields or various crops can decline in the region o 3-7 percent 10. There

are also issues o land rights and the seizing o traditional lands rom local and indigenouscommunities to expand agriculture.

1.4.2. Habitat destruction and biodiversity loss

Furthermore, deorestation is again on the rise because lands are being cleared or agriculture,

e.g. in Indonesia and Malaysia or the cultivation o palm trees or conversion o palm oil to

biodiesel. Protesters argue that the entire lie cycle o biodiesel manuacture would result in

a net increase in greenhouse emissions rom slash and burn clearance methods, burning o

sugar cane beore harvesting, removal o dense orest cover and other damaging practices.

Expansion into non-agricultural land may adversely impact provision o ecosystem services

(e.g. water provision and ltration, ood, medicine, carbon sequestration) and biodiversityloss. Displacement o ood crops may also lead to relocation o those crops in natural

habitats which may displace wild species, introduce chemicals and pests, among other

detrimental eects. The desire to maximize crop yields may give rise to other problems

relating to monocropping, habitat and soil degradation, high levels o water consumption,

water pollution rom agrochemicals, exploitation o labour and poor working conditions.

Biodiversity o natural ecosystems is threatened by habitat destruction rom land use change.

Research indicates that rising commodity prices due to increased bioenergy demand could

induce land use change and intensication in Brazil, and agricultural expansion driven by

these higher prices could endanger areas with high diversity o bird species. Monocropping

also reduces the genetic diversity o crops, thus increasing susceptibility to disease and

reducing possibilities or developing new varieties. Some second generation crops areconsidered invasive or potentially invasive species and thus a threat to biodiversity, water

resources and agriculture.11

7 FAO, 2008

8 FAO, 2008

9 IPCC, 2007

10 IFPRI, 2009

11 FAO, 2008


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18

1 INTRODUCTION

1.4.3. Water and soilsWater or agriculture is becoming scarcer as competing

uses increase. About 70 percent o reshwater resources

worldwide are used or agriculture.12 The IPCC 4AR indicates

that under most climate change scenarios there is strong

evidence that water resources in SIDS are likely to be

seriously compromised. Annual river runo and water

availability are projected to decrease 10-30 percent by mid-

century in some regions, some o which are already water

stressed.13

Many o the crops presently used or bioenergy have high

water requirements; processing can also use vast quantities

o water, mainly or washing plants and seeds and or

evaporative cooling. However expansion o irrigated systems pose the most concern given the

impact on local water resource balances and limitations relating to unavourable land tenure

systems, costly land acquisition, and inrastructural requirements and costs or extraction,delivery and storage. Higher surace temperatures will also increase water demand, as well

as induce changes in precipitation patterns and increase the likelihood o drought. Land use

changes and cultivation and production processes may initiate or exacerbate problems o soil

erosion and sedimentation o water courses, and o pollution o ground and surace waters

rom runo o excess ertilisers and pesticides.14, 15

Soil quality, structure and stability are largely dependent on the techniques employed.

Monocropping, waterlogging and salinsation o irrigated land, excessive application o

agrochemicals, and clearance o crop residue are some contributors to poor soil quality and

land degradation. Crop rotation, contour ploughing, intercropping, adequate drainage, and

conservation or no tillage are some o the sustainable agricultural practices which can help

maintain nutrients and organic content, minimize erosion, and prevent soil becoming inertile.

Feedstocks will impact the soil dierently. Growing perennials such as sugar cane, palm

and switchgrass instead o annual crops can increase soil cover and organic matter. Crops

also dier based on their water and nutrient requirements. Some crops such as jatropha

and grasses need ewer inputs and less intensive management, and can contribute to the

improvement o marginal soils. Increasing demand or crop residues such as bagasse or

energy production, i not managed sustainably, can have inimical eects on soil quality by

reducing soil cover and organic content.16

1.4.4. Climate change

Debate continues to rage as to whether bioenergy is truly renewable or mitigative in termso GHG emissions reduction. CO

2is sequestered during the growth o energy crops as they

store it in their biomass and the soil. Quantities o various greenhouse gases (GHG) emitted

12 FAO, 2008

13 IPCC, 2007

14 FAO, 2008

15 IFPRI, 2009

16 FAO, 2008

You have the power to chart a saer, moresustainable and prosperous course or this and

uture generations. The power to reduce theemissions that are causing climate change...to help the most vulnerable adapt to changesthat are already under way... to catalyse anew era o global green growth. Now is yourmoment to act.

UN Secretary-General Ban Ki-moon addressing global leaders

at the Climate Change Summit Plenary in New York, 22

September 2009


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19

1 INTRODUCTION

rom combustion o bioethanol and biodiesel are signicantly lower as compared to ossil

uels. Thus they serve a role in mitigating urther climate change, and enabling Annex I

countries to ull their emissions reduction commitments under the Kyoto Protocol.

There are also reductions in the amount o other pollutants such as sulphates, CO, VOCs,

and particulate matter. However, the levels o reduction are dictated by the type o biouel,

eedstock, and conversion technology, inter alia. Capture and aring o biogas, which

is primarily methane (a GHG 25 times more potent than CO2), or conversion to electricity

reduce its release into the atmosphere and its capacity or causing res. Conversely, nitrous

oxide (300 times more potent than CO2) is released rom nitrogen ertilisers; other GHGs are

released during dierent stages, such as during pesticide and ertiliser production, chemical

processing, and transport and distribution17.

The energy balance (units o clean energy generated per unit o non-renewable energy

used) o biouels is, again, dependent on characteristics such as eedstock, climatic

conditions, cultivation practices, and extraction and production technologies. For instance,

the energy balance or cane-based ethanol rom Brazil is on average 8.3, compared to 0.81-1.03 or wheat, and 0.56-0.65 or sugar beet.18 The energy balance or sugar cane ethanol is

so high relative to beet and maize mainly because biomass (bagasse rom the cane) is used

to produce electricity or the process. The use o ossil uels in the production process will

drastically reduce the potential or GHG reduction. Conversely there is the consideration

that biouels emit less CO, sulphates and particulate matter. This is also countered by

greater emissions o NO2. Also, the value o co-products such as glycerine, ertiliser and

electricity, must be actored into the LCAas emissions avoided rom an additional or more

polluting processes.

Most LCAs indicate emissions reductions in the range o 20-60 percent or rst generation

biouels, assuming high-eciency systems and ignoring emissions related to land use

change. Eorts are underway to standardize the methodologies used or LCAs, e.g.how co-products and land use are accounted or, and identiying the broader social and

environmental impacts.19

Why should bioenergy be considered or the Caribbean region?

Social inequalities, small and undiversied economies, high dependence on ood and uel

imports, concentration o settlements and critical inrastructure in the coastal zone, and

many other actors make Caribbean countries highly vulnerable to impacts o world trade

markets, natural hazards and climate change. Every country will be aected by climate

change. Forecasts indicate that climate change will result in greater vulnerability to hunger

and poverty, less secure means o subsistence, exacerbation o social inequalities (including

gender inequalities) and more environmental degradation. Hence the poorest and mostvulnerable countries, which produce the lowest levels o emissions,20 will be most aected.

17 FAO, 2008

18 Duey, 2006

19 FAO, 2008

20 UNDP, 2009

1.5


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21

1 INTRODUCTION

Growing populations, expanding industry and escalating energy demand and prices have

orced gradual shits in outlook regarding energy strategies and policies. The territories o the

region in recent years have been turning their ocus increasingly to renewable energy, and

particularly to bioenergy. Various drivers surround these moves, including high dependence

on ossil uel imports, rising per capita energy consumption and waste production, crippled

sugar industries, and creation o agreements such as the US-Brazil Biouels Partnership, and the

Caribbean Basin Initiative (CBI) which allows duty ree export o ethanol to the United States.

The IICA Agro-energy Strategy23 indicates that the organization will give priority attention to

countries where the potential or bioenergy development is considered good or excellent,

as illustrated in Table 2. Further, the IICA Regional Biouels Industry Development Initiative

outlines our main areas o ocus in order or the prospective benets o these industries to

be realized:

capacity development and public education;

catalysing production o biouels or transport;

catalysing production o bioenergy or electricity generation; and

development o small and medium-sized enterprises or biouels.

23 IICA, 2006a

TABLE 2: COUNTRIES IN THE CARIBBEAN IDENTIFIED AS HAvING GOOD OR

ExCELLENT POTENTIAL FOR BIOENERGY DEvELOPMENT

Potential Country Lead crops Biouels market Imported petroleum

products 2004 (US$000)

Excell

ent

Belize

sugar cane

oil seeds

ast-growing trees

transport uelspower generation

73,185

Guyana 164,004

Cuba 1,449,014

Dominican Republic 1,712,591

Good

Barbados sugar cane transport uels

power generation

209,451.3

Jamaica sugar cane

oil seeds

ast-growing trees

transport uels

power generation

928,646.2

Suriname 162,381.4

Trinidad and Tobago sugar cane transport uels 1,258,352.8

Source: IICA, 2006a


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1 INTRODUCTION

In the medium term it is unlikely that there will be sucient quantities o ossil uels to meet

global demands24. Coupled with the pollution and climate change rom burning o these

uels, the expected shortall presents the opportune time or the transition to renewable

orms o energy. While production o bioenergy raises many concerns on several ronts, e.g.

geopolitical implications, concerns over trade and ood security, it provides an alternative by

which countries can increase their sel-suciency in energy production, reduce their carbon

ootprint, generate local employment, and chart a more sustainable development path.

Nevertheless, in climate change mitigation eorts and in driving to improve energy security,

bioenergy cannot be the sole solution. There must be a combination o several measures,

which must include energy/uel eciency and conservation, that can be adopted at various

scales by the entire society and typically have a much lower cost per tonne o CO2

abated.

The strategy may also include use o other renewable orms o energy, reorestation and

orest preservation, and more sustainable agricultural practices.

24 IICA, 2007


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23

Bioethanol is a distilled liquid produced via the

ermentation25 o sugars rom agricultural produce or by-products such as sorghum, sugar cane, maize, wheat,

ruit, cane juice and molasses.

Hydrated ethanol is the output o distillation, but can be rened to obtain an

anhydrous product.26

Ethanol can be used as a transport uel either when blended with conventional petrol

to power automotives or used alone. It can be blended with petrol up to 10 percent (E10) without

the need or engine modication. Its energy content and combustion eciency are similar to

those o conventional gasoline, and thus has approximately equivalent economic value.

Figure 1 below indicates the energy balance (units o clean energy generated per unit o non-renewable energy used) and environmental balance (GHG emissions per toe in equivalent

tCO2) or various crops used to produce ethanol.

25 Fermentation is the biochemical process whereby sugars (e.g. glucose, sucrose) are broken down

into ethanol and carbon dioxide under anaerobic conditions (i.e. in the absence o oxygen). The

simplied equation below shows the conversion o glucose.

C6H

12O

61 2C

2H

5OH + 2CO

2

26 Duey, 2006

Bioethanol

2


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2 BIOETHANOL

Figure 1: Energy and enironmental balances or arious crops used in ethanol production27

Agricultural research in this area ocuses mainly on developing crop varieties that will give

greater yields, on new cellulosic eedstocks, and testing the energy perormance o ethanol-

gasoline blends.

Sugar cane is the principal crop used in the region rom which ethanol is derived. Captured

below are the E10 production potential or various countries, along with present yield o

sugar and amount o land available or cultivation.

27 Adapted rom IICA, 2007

10

9

8

7

65

4

3

2

1

0

Sunower Canola Soybean Palm Wood

energy balance

environmental balance

TABLE 3: SUGAR CANE AREA UNDER CULTIvATION, PRODUCTION AND YIELD FOR COUNTRIES

IN LATIN AMERICA AND THE CARIBBEAN

Country Area under sugar cane Recent sugar cane yield Sugar production

000 ha kt/ha t t/ha

Argentina 296.8 66.05 2,030,653 6.84Barbados 8.0 62.0 54,000 6.75

Belize 24.3 64.0 107,000 4.41

Bolivia 105.0 45.71 510,000 6.8

Brazil 5,800.0 77.0 29,500,000 5.1

Colombia 212.5 122.9 2,415,117 13.1

Costa Rica 52.0 75.3 382,824 8.0

Dominican Republic 350.0 40.0 464,000 1.3

Ecuador 78.0 78.0 510,000 6.8

Honduras 88.1 73.1 381,018 4.32

Jamaica 40.0 47.5 167,000 4.18

Mexico 680.0 77.5 5,800,000 8.5

Panama 37.0 56.8 165,000 4.5Peru 66.2 102.4 694,599 12.0

Venezuela 130.0 67.7 706,000 5.4

Source: Adapted rom IICA, 2007; data delivered between 2005 and 2007


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2 BIOETHANOL

TABLE 4: ETHANOL PRODUCTION POTENTIAL FOR vARIOUS COUNTRIES IN LATIN AMERICA AND

THE CARIBBEAN TO FULFIL DEMAND FOR E10

Country Gasoline

consumption

Area under

sugar cane

Arable

area

E10 ethanol

demand

Current

ethanol

output

Area o sugar cane to

meet E10 demand

000 m3 000 ha 000 ha 000 m3 000 m3 000 ha %

Argentina 4,911.1 296.8 128,747.0 491.1 230.0 81.9 27.6

Barbados 124.4 8.0 19.0 12.4 0 2.1 26.3

Bolivia 763.4 105.0 37,087.0 76.3 33.8 12.7 12.1

Brazil 16,000.0 5,800.0 150,000.0 1,600.0 15,999.2 266.7 4.6

Colombia 4,937.0 212.5 45,911.0 493.7 270.0 63.0 29.7

Costa Rica 855.1 52.0 2,865.0 85.5 30.5 14.3 27.5

DominicanRepublic

1,423.3 350.0 3,696.0 142.3 0 23.7 6.8

Ecuador 1,944.6 78.0 8,705.0 194.4 47.1 24.5 31.4

Guyana 130.0 49.0 1,740 13.0 23.6 2.2 4.5

Haiti 288.0 18.0 1,590.0 28.8 2.0 4.8 26.7

Honduras 457.2 88.1 2,936.0 45.7 26.3 7.6 8.6

Jamaica 699.8 40.0 513.0 70.0 12.0 11.7 29.3

Mexico 39,455.3 680.0 107,300.0 3,945.5 445.2 657.6 96.7

Panama 576.7 37.0 2,230.0 57.7 12.4 9.6 26.0

Peru 1,203.0 66.2 21,210.0 120.4 78.4 20.1 30.4

Suriname 106.5 3.0 89.0 10.6 0.4 1.8 60.0

Trinidad and

Tobago

493.1 13.0 133.0 49.3 5.3 8.2 63.1

Venezuela 12,700.6 130.0 21,640.0 1,270.1 0 234.5 180.4

Source: Adapted rom IICA, 2007

The last ew years have seen many sugar-producing SIDS scaling back or closing their

operations in response to unavourable international markets. This is aecting the traditional

landscape o many Caribbean countries and displacing many workers in the agricultural

sector. However many SIDS are now seeking to transition into energy production. This has

signicant social benets including employment generation, reduced oreign exchangeoutows, and reduced greenhouse gas emissions28.

28 Binger, 2005


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2 BIOETHANOL

Initiaties in the Caribbean

Barbados

Feasibility analyses29 have been conducted to assess the viability o diversiying the sugar

industry to produce rened and specialty sugars or local and international markets, molasses,

bioethanol and electricity rom bagasse cogeneration (Figure 2). The annual production

capacity or ethanol was estimated at 14.4Ml; and over 9,000Mt o molasses. Estimates

o initial capital investment required are in the range o $150 million; this is expected to

translate to annual oreign exchange savings o $39 million, which are comparable to or

greater than revenue earned rom sugar exports.

More recent gures suggest that at ull capacity, to be attained by 2014, the system should

have an annual production capacity o 23Ml o anhydrous ethanol; 36,445t o molasses; and

15-20MW o electricity with input to the national grid30.

Figure 2: Restructuring and diersication o the Barbados cane industry31

29 Schaer and Associates, 2006

30 Briggs, 2008

31 Adapted rom Schaer and Associates, 2006

2.1

CANE

PRODUCTION

Commercial cane

and fuel cane

Independent

producers

Agricultural

input suppliers

Harvest and

transport

BAMC

Agricultural Operations Industrial Operations

Research and

Development

For domestic markets

Electricity (BL&P)

Fuel blends (BNOCL)

For domestic

rum industry

For domestic and

international

markets

Sugar

production

Ethanol

production

Power

production

Natural gas

Wood and

paper waste

Syrup

Bagasse

Molasses

Sugar

sugars

Refined and specialty


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2 BIOETHANOL

Cuba32

The ethanol production industry in Cuba dates back to 1862, peaking in 1961. Investigations

into the use o ethanol or the transport sector resumed in 1977. Hydrated ethanol is preerred

due to such actors as its availability, physio-chemical properties, and cost. Results o studies

looking at the use o a 25 percent hydrated ethanol blend with gasoline showed several

benets, including increasing the octane number by 10 units, eliminating knocking, and

reducing incidences o spark plug ailure. Unortunately it could not be utilized commercially

due to the possible separation o the mixture over time.

Experiments blending 25 percent hydrated ethanol in diesel engines demonstrated that 21

to 23 percent less diesel was used with the mixture, and separation did not occur. However,

1.5-2 units o ethanol were required or every unit o diesel replaced, and a special device

was needed or the uels to be injected separately.

Dominican Republic33

Data show that the Dominican Republic has the potential to produce 50-60Mt o biomass

annually rom 300,000ha o sugar cane. Since the gradual closure o sugar mills starting inthe 1980s, sugar production has progressively declined and by 2007 the cultivated area was

125,000ha. Thereore their rst objective is to reclaim an additional 130,000ha o abandoned

lands to initiate the bioethanol programme. The aim is to diversiy the industry so as to yield

300-1,500 million gallons o ethanol per year along with biogas, with annual expansion o

the cultivated area eventually to 700,000ha dedicated to bioethanol production.

Guyana34

Assessments show that more than sucient quantities o ethanol can be produced rom

molasses (with a more avourable price comparison than using cane juice) to achieve

a 10 percent substitution o gasoline without altering the area o land presently under

cultivation. The daily production capacity required would be 65,000lpd utilizing 38 percent

o the available current supply o molasses.

A plant o this size would cost about $6.5 million; this compares to importation costs o

$5.4 million in 2005. Depending on the raw material used (molasses or cane juice), 30,000-

280,000m3 o ethanol can be produced annually. In light o the removal o preerential trade

agreements across the Caribbean, Guyana is also looking to expand sugar production by 50

percent, diversiying products, generating electricity rom bagasse and producing ethanol.

Jamaica

At present Jamaica has a production capacity o 606Ml or dehydrating ethanol rom Europe

and Brazil which is then exported to the United States under the CBI35.

Bioethanol is being considered or its application in transport. Jamaica Broilers Ltd, withcooperation rom Brazilian investors, constructed an ethanol plant, opened in August 2007,

32 Villareal, 2005

33 Tabar, 2007

34 Horta, 2007

35 Tulloch and Barrett-Edwards, 2007


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2 BIOETHANOL

with an annual production capacity o 230Ml. Generation o E10 commenced in 2008, using

eedstock imported rom Brazil, and the blend is available at petrol stations throughout the

country. Local eedstocks under consideration are sugar cane and cassava.

Vast improvement in the eciency o the operation o the industry is crucial or the viability

o this venture. Privatization is presently underway, and is expected to yield marked changes

in productivity and energy consumption.

To achieve an E10 mix in transport uel by 2010, it is projected that an additional 19,000ha o

land are need or growing sugar cane. This assumes an annual rate o growth in demand o

4 percent, which would see consumption rise rom 68Ml or an E10 blend in 2004 to 91Ml.36

St. Kitts-Neis

Brazil and the US have pledged technical assistance to the twin island state in the

development o biouels rom sugar cane. A memorandum o understanding (MOU) to

Advance Cooperation on Biouels was signed by the three governments in March 2007, in

which it was agreed that St. Kitts and Nevis would receive assistance or the completion o anational energy policy, assessment o agricultural land available or sugar, building investor

support, and capacity building or decision makers37.

The US-Brazil Biouels Partnership also encompasses Haiti and the Dominican Republic.

In association with the OAS and IADB, these governments will und easibility studies to

investigate soil quality, the types o sugar cane most appropriate or local conditions,

environmental impact, and potential or rural development.38

Recent research has indicated that, based on sugar cane production in 2004, the estimated

annual ethanol production potential is 21Ml rom cane juice and bagasse. This has an

economic value o $10-15 million depending on the price o

crude oil ($70-100/bbl). The electricity output is projectedin the range o 15-50GWh, depending on crop yield and

energy conversion eciency.39

Suriname

Suriname has neither national policy nor government

incentives or development o bioenergy. There are very

limited technical, nancial, inrastructural and human

capacities; as well as a number o political and bureaucratic

barriers. The country possesses petroleum resources and has

developed hydropower, which orm the main bases or energy.

Nevertheless, bioenergy presents potential or increasein technical skills, employment and government revenue.

Suriname has a vast land area (over 160,000km2), with 85


37 http://www.caribbeantoday.com/index.php?option=com_content&task=view&id=2186&Itemi

d=162

38 http://www.cuopm.com/newsitem.asp?articlenumber=1324

39 Binger, 2008

We have only one planet to live on. We mustensure that the way we live and develop isconsistent with keeping its ecosystems inbalance. We must all nd a diferent, moresustainable way to grow our economies, andensure that poor people and nations havethe opportunity to create a better lie orthemselves.

Op-Ed A green deal or rich and poor nations by Helen Clark,

UNDP Administrator, 8 September 2009


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2 BIOETHANOL

percent orest cover40. This aords opportunity or agricultural expansion, but also engenders

the likelihood o high deorestation, monoculture and subsequent soil inertility and eects

o pests and disease.

Trinidad and Tobago

This twin island state currently has no policy stance on biouels, but is anticipating the

development o a national energy policy in the near uture in which this matter will be

addressed. There is a lack o incentives or renewable energy development due to the

inexpensive petroleum products derived rom local resources. However these reserves are

diminishing. Further, the sugar cane industry has been closed or a number o years. There

is an ethanol purication plant which operates in Point Fortin, and exports the nished

product is exported to the United States. 41

Initiaties in Latin America

BrailBrazils National Alcohol Programme (Prolcool), pioneered in the 1970s, is the largest ossil

uel substitution initiative within the transport uel market. It is the most ecient example

o extraction o ethanol rom sugar cane in the world, with the uel being competitive at

oil prices o $30-40 per barrel. Government controls, subsidies and incentives that were

used to oster the growth o the programme were gradually removed rom the mid-1990s

to 2002. The tremendous progress and increases in productivity over the last 30 years have

been as a result o progressive introduction o new technologies, sugar cane species and

management practices, which has resulted in eciency improvements in areas such as

transport, extraction and ermentation.42 Bioethanol is now a highly competitive commodity

in Brazils transport uel market, as illustrated in Figure 3.

Figure 3: Fuel station in Brail displaying prices or ethanol (at top) and conentional gasoline43

40 Universiteit van Suriname, 2007

41 ECLAC, 2007

42 Moreira, 2003

43 Moreira, 2003

2.2


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2 BIOETHANOL

Furthermore, the demand created by Brazils policies has revolutionised the automobile

market. By 2005 seven global manuacturers (Fiat, Volkswagen, General Motors, Ford,

Citron, Renault and Peugeot) were oering 24 FFV models with all the necessary engine

and vehicle modications. By this time there were 2.5 million pure hydrated ethanol vehicles

in Brazils national eet, and 608 billion FFVs using blends rom E25 to E100.44

The IADB has earmarked more than $2.5 million or Brazil to support the countrys objective

o tripling ethanol production by 2020. There have also been discussions surrounding

technical assistance and acilitating technology transer to enable other countries in the

region to benet rom Brazils experience.45

Colombia46,47

In 2001 a Fuel Ethanol Law was approved which demanded use o sugarcane-derived ethanol

in transport rom 2006. This is part o an initiative to use renewable energy to improve air

quality in cities, create jobs and promote sustainable development. Domestic gasoline

would be blended to E10, with a production capacity o 2.5Ml per day. No gasoline taxes

are levied on the ethanol substitute. There are to be nine distilleries, creating an expected

170,000 jobs or armers, and requiring an additional 150,000ha o sugar cane. It will increase

the average earnings o armers and the contribution to GDP rom agriculture. Production

costs are estimated at $0.90-1.15/gal. Sales are expected to generate $400 million annually.

Required investment will total $680 million, and expected uel importation savings are at

least $150 million per annum.

Proposals were also included or substituting $20 million o imported beverage ethanol, which

would allow reopening o 12 liquor plants mothballed because o vinasse contamination,

and generate associated employment.

Further, the IADB is contemplating nancing a $20 million biodiesel enterprise using palm oilas the raw material. This is anticipated to eventually have an annual production o 100,000t.48

El Salador

Here, as well as in Costa Rica, the IADB has nanced easibility studies and technical assistance

in areas such as market development, regulation and public outreach to help the countries

achieve their target o E10 blended gasoline49.

44 Lucon, et al, 2005

45 IADB, 2007http://www.iadb.org/NEWS/detail.cm?language=English&ARTID=3779&id=3779&CFID=53030

67&CFTOKEN=56941889

46 Cala Hederich, 2002

47 2002 http://www.iea.org/Textbase/work/2002/ccv/ccv1%20echeverri.pd

48 IADB, 2007

49 http://news.mongabay.com/bioenergy/2007/04/inter-american-development-bank-to.html


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31

Catalysed50 transesterication51 o ethanol and vegetableoil produces biodiesel or vegetable oil methyl ester

(VOME) with glycerine as a by-product.

Inputs include soya, palm, jatropha, coconut and sunower oil, waste cooking oil, tallow

and animal ats.52 Rapeseed, soya and palm oil currently tend to dominate the biodiesel

markets in developed and developing countries. While its use is not yet widespread,

jatropha seems to hold much promise as a eedstock. It is a perennial crop which can grow

on marginal lands in dry conditions, and has a very high energy balance. This is encouraging

in light o the ood-uel debate, where biouel crops are occupying vast tracts o agricultural

land usually used to grow ood or human or livestock consumption. There are also issues o

deorestation in Malaysia and Indonesia over cultivating plantations to grow oil palms.

Figure 4 below indicates the energy balance (units o clean energy generated per unit o non-

renewable energy used) and environmental balance (GHG emissions per toe in equivalent

tCO2) or various crops used to produce ethanol.

50 Catalysts alter the rate o a chemical reaction, typically increasing it, by creating an alternative

reaction pathway, but are not reagents and are thus not consumed by the reaction.

51 Transesterication reers to the switching o an organic group o an ester with that o an alcohol.

52 Duey, 2006

Biodiesel

3


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3 BIODIESEL

Figure 4: Energy and enironmental balances or arious crops used in biodiesel production53


Barbados

Located at Counterpart Caribbean/Future Centre Trust a private entity, NativeSun NRG,

produces biodiesel rom waste cooking oil, shown in Figure 5. With support enlisted

rom the nearby Lester Vaughan Secondary School, NativeSun NRG sells the biodiesel or

use in agricultural machinery and private transportation54. Collaboration with the school

has opened an avenue or broader community involvement, with the students engaging

their households, neighbours and others in collection o the waste oil. It has also ostered

broader environmental education within the school, and provides an income stream or

the Environmental Club. This venture was started with the support o the GEF Small Grants

Programme (SGP) or Barbados and the OECS, and has developed to the level where it

has received a commitment o investment capital rom international interests or urther

expansion o the initiative to other islands.

Figure 5: Biodiesel manuacture rom waste cooking oil in Barbados55

53 Adapted rom IICA, 2007

54 http://sgp.undp.org/web/projects/9741/community_based_recycling_programme_

produciton_o_biodiesel_rom_used_vegetable_oil_with_the_lester_.html

55 GEF SGP Barbados and the OECS photo stock, 2008

3.1

9

8

7

6

5

4

3

2

1

0Wheat Sugar

beetMaize Sugar

caneStraw

energy balance

environmental balance


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3 BIODIESEL

Jamaica

Locally-grown eedstock options or biodiesel include oils rom rapeseed, castor, palm,

jatropha and sunower. The production target or 2010 is 73Ml. Land requirements to

achieve substitution with B10 are in the range o 65,000-96,500ha.56

Guyana

In August 2007, a MOU was signed between the OAS, IICA, IADB and the Government o

Guyana during the regional high-level seminar Expanding bioenergy opportunities in the

Caribbean57. The parties have committed to explore promotion and nancing o initiatives

in energy eciency, renewable energy and bioenergy in the region; develop a CARICOM

agro-energy strategy; and help member states access world biouel markets.

In April 2008, $925,000 in grants was approved rom the IADBs Japan Special Fund and its

Sustainable Energy and Climate Change Initiative Fund. This would go towards institutional

strengthening, nalization o the national agroenergy policy, training, supporting eld visitsby potential oreign investors, and conducting easibility and pre-investment studies.58

56 Tulloch and Barrett-Edwards, 2007

57 IADB news release 6.08.2007

http://www.iadb.org/NEWS/detail.cm?Language=En&parid=2&artType=PR&artid=3977&id=3

977&CFID=5303067&CFTOKEN=56941889

58 http://www.stabroeknews.com/2008/news/local/08/21/idb-government-to-sign-agro-energy-

agreement/

WHAT CAN YOU DO?

I in Barbados, you can collect the oil used in cooking, lter out the ood remains and store it in plastic bottles (let it

cool rst!). Take it to Counterpart Caribbean at the Future Centre Trust at No 2, Edgehill, St. Thomas. Your oil will betransormed into a clean uel instead o dumped into the drains to pollute the groundwater system. You may also

purchase biodiesel at this location or all diesel-powered ehicles and machinery.

I you are interested in starting such an initiatie in your territory you may contact the GEF SGP in Barbados, Belie, Cuba,

Dominican Republic, Jamaica, Trinidad or other countries or adice and support. I t can be a community-leel project, or

can be as epansie as including ast ood and restaurant operations. Think globally, act locally.


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3 BIODIESEL

Initiaties in Latin America

Brail59

The country noted as a orerunner or its advances in bioethanol production has embarked

on a programme or biodiesel, with government authorization o commercial production,

initially or B2 (2 percent blend o biodiesel with regular diesel). The National Biodiesel

Production and Use Programme (PNPB) is a collaboration o 14 ministries under an Inter-

ministerial Executive Committee (CEI).

There is a great degree o exibility in the type o oilseeds grown as eedstock, as well as in

the techniques used or rening. This acilitates participation by armers and armers groups

on all scales and at all levels, and ensures lands are used optimally. However, all output must

conorm to the international quality standards dictated by the regulatory authority.

Jobs will be created in construction o plants, transport and distribution, arming, technical

assistance, and rening. Crops can be grown in isolated rural communities to replace the

diesel used or electricity rom generators.

Nicaragua

In 1994, a collaborative venture o the Austrian government, Petronic, the Union o Agricultural

Cooperatives and the National Autonomous University o Nicaragua commenced with the

planting o an initial 1000ha oJatropha curcas. The ve-year project would have annual

outputs o 1,700t o biodiesel, 1,600t o animal odder with 56 to 58 percent protein content,

144t o glycerol, and 1,800t o oilseed shells or heat generation. 60 An economic easiblity

study was previously completed by Petrotrin, with Nicaragua ullling World Bank dened

cost eectiveness criteria or such a project, namely extensive wastelands, high transportation

costs, availability o labour, and the need to oset expenditure on diesel imports. 61

59 Ministry o Mines and Energy, n.d.

60 Mayorga, 2005

61 Grimm, n.d.

3.2


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Over 2.5 billion people rely on traditional uses o biomass

or heating and cooking.62

However, there is a diverse array o modern applications or conversion o biomass

to energy, here specically reerring to energy extracted directly rom the biomass

rather than any o its metabolic products such as sugars and oils. Sewage, MSW,

wood, garden waste and agricultural waste such as rice husks and bagasse are

among the possible raw materials. Energy is extracted by combustion o the material itsel

or heat, producing process steam or electricity. Alternatively, products o decomposition,

e.g. methane, are used or heat or electricity. Notably, there must be due consideration given

to cultural perceptions relating to use o treated sewage or even greywater as these may

not be very amenable to some societies. Adequate regulations and monitoring systems

must also be in place to ensure proper procedures to avoid contamination, as well as quality

standards or the end products.

Energy-rom-waste technologies result in a number o additional benets beside creating

a renewable energy source. These include reduced toxic and GHG emissions; better waste

treatment and disposal; less pressure on landlls, extending their longevity; ertilizer

production; and reduced pathogens and pollution o air, soil, groundwater and aquatic

environments.

62 IUCN, 2008b

Biogas and soild uels

4


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4 BIOGAS AND SOILD FUELS

But our planet needs more than just actionby governments and corporations; it needseach o us. Although individual decisions mayseem small in the ace o global threats andtrends, when billions o people join orces in

common purpose we can make a tremendousdiference.

Statement by UN Secretaty-General Ban Ki-moon on World

Enironment Day 2009


4.1.1. Biogas

Biogas is produced by the biodegradation o organic matter under anoxic conditions. This

organic matter includes animal waste, sewage and wastewater, abattoir efuent63, and the

organic portion o MSW. The cycle involves numerous types o microorganisms, including

methanogens which generate methane (CH4).

Barbados

An environmental impact assessment (EIA) was conducted

in relation to a planned waste-to-energy project or

collecting landll gas (LFG) to convert it to electricity.

Models estimated LFG generation rates in the order o

14Mm3 per year. Observations rom surace sampling

indicated actual rates o 3.7Mm3. There is also an associated

wind arm which is expected to have an annual output o16.5GWh o electricity.64

The project is to be operated as a public-private partnership

between Barbados and a Canadian rm. Phase I involves

design, construction and operation o a LFG collection

and aring system. Phase II entails the construction and operation o a 2-5MW electricity

generation plant or a leachate treatment system, depending on the consistency o LFG

production. The justication or this project lies in stabilization o the landll, increased

rate o regeneration o the site, improved air quality, reduced hazards rom risk o re,

explosion and groundwater contamination, and reduction o GHGs (CH4and CO

2). There are

surrounding issues relating to ownership o the land, which the Sanitation Service Authority

has been renting towards purchase. A drat Landll Agreement has been prepared sinceownership needs to be nalized or the project to be eligible under the CDM.65

Jamaica

Although, due to the poor management o disposal sites, the potential or LFG capture is

lower than might be expected or MSW with an organic content o 65 percent, including 40

percent yard waste, proposals or CDM projects have nonetheless been submitted to the

Government.66 A suggested alternative is the controlled decomposition o separated organic

waste, which would generate biogas to cooking, heating or electricity, as well as ertilizer.

Biogas can also be derived rom treatment o liquid wastes (sewage, efuents, sludge, etc)

with high organic content. The existing central sewage system manages 30 percent o the

islands domestic wastewater at a primary treatment level. The approximately 150 treatmentacilities are almost 50 years old and in deplorable condition.67 In 1978 OLADE, the Ministry

63 IUCN, 2008b

64 R.J. Burnside International and Biothermica International Inc, 2003b

65 Marshall, 2008



4.1


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o Mining and Energy, the Ministry o Agriculture, and SRC initiated a pilot project aimed

at appropriately adapting the design o and constructing biodigesters or use by livestock

small armers, and to transer the technology and expertise. The rationale was to reduce

the impact o the energy crisis on the poor, particularly those in rural communities. Nine

demonstration plants were constructed, using designs rom Mexico, Brazil, China, Costa

Rica and Guatemala and evaluation o the digesters was based on costs, perormance, and

operation and maintenance requirements. An indigenous adaptation was created, but cost

was prohibitive to wide dissemination. Thus in 1983 the programme expanded to create a

revolving loan und to subsidize the costs.68

The public education component o the programme proved very eective, promoting

energy diversication through waste diversion. It was enhanced by a United Nations

University (UNU) which included training o agricultural extension workers and introduction

o biodigesters to selected arming communities. Further a design improvement put orward

by the CDB and GTZ enabled a local NGO to get involved in the project. Also, SRC was able to

broaden its technology dissemination through a armers inormation centre, an agricultural

training school, and a penal institution.

Jamaicas Energy Minister announced in October 2009 that the country has contracted a

rm to construct two waste-to-energy plants. It is anticipated that this investment will see

generation o 18 percent o the islands electricity and reduce uel imports by 700,000bbl,

thus saving $60 million annually.69

St. Lucia

With support rom the government, IICA, the Bank o St. Lucia and UNDP a cadre o small

armers travelled to Costa Rica in 2008 or an intensive training course in the construction and

use o biodigesters. These will enable waste products to be transormed into useul energy

and by-products and reduce associated pollution. With this new capacity, the armers are

expected to share their knowledge and spread the application o the technology or moresustainable management o the agricultural sector in their country.

4.1.2. Biomass cogeneration

Cogeneration is the simultaneous generation o mechanical and/or electrical energy plus

thermal energy or process heat using the same energy source within a single acility. It

improves the eciency o the heat and electricity system rom by 33 percent to possibly as

much as 80 percent. Topping cycles are typical in most industries, where uel input is used

rst to produce electricity ater which the thermal energy is recovered. Bottoming cycles

are less common, usually associated with high-temperature processes.70

BarbadosThe combined cycle gas turbine (CCGT) in the sugar industry diversication programme is

projected to produce up to 30MW o electricity rom bagasse, with cultivation o high-bre

cane varieties.71

68 UNDP SUSSC, 1999

69 Jamaica Gleaner, 2009

70 Barrett, 2002

71 Schaer and Associates, 2006


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Guyana72

Improvement in the eciency o boilers, i.e. increased pressure, could realize generation o

1,400GW o energy rom bagasse rom 3.4Mt o cane, compared to current outputs o 30MW.

This output duration is o course limited by the length o the harvest season which provides

the uel source, unless a supplemental source is ound.

Rice is also considered a potential source or electricity production on small cogeneration

plants. With approximately 110,000t o rice husk residue produced rom the annual crop o

over 500,000t (in 2004), the energy potential o this waste product is equivalent to about 11

percent o diesel consumption.

Timber production is another major industry in Guyana, thus wood is under consideration

or electricity production in small cogeneration plants. Conservative estimates suggest

that about 33 percent o the resource ends up as waste rom sawmills. Calculated outputs

reached 1.55Mtoe, almost treble the countrys diesel consumption.

JamaicaIn conjunction with the production o ethanol, the bagasse derived rom the sugar cane can

be used to generate an additional 300GWh o electricity annually. Conventional cogeneration

resulted in process eciencies o less than 10 percent when it was considered primarily a

disposal process. The total amount o energy that can be extracted rom sugar cane depends

on its bre content, the moisture o the bagasse which determines its net caloric value,

and the technology used or energy conversion73. High temperature and pressure boilers

need to be used, which would improve the quantity o energy produced rom cane and

bagasse, allowing export to the grid, as indicated in the ollowing table. The old boilers

served principally as incinerators to dispose o the bagasse, and not or maximising energy

production; hence they were o low eciency74.

Further improvements could be realized with the use o other cane residues such as leavesand with application o gasication techniques.

72 Horta, 2007

73 Loy and Co

Documents

UNDP, Preliminary Assessment of Bioenergy Production in the Caribbean, 12-2009