Using the UNFC-2009 to classify
Renewable Energy Resources
ABLC 2014Washington, D.C.
Raffaella CristanettiDuPont Industrial Biosciences
Presentation Objectives
• Review an ongoing initiative to develop a framework for estimating and classifying Renewable Energy resources
• Highlight key elements of the proposed draft Renewable Energy Specifications document (Phase 1)
• Stimulate interest for additional stakeholder participation in the commodity sub-specifications workstreams (Phase 2)
2
What is the UNFC?
3
• United Nations Framework Classification for Fossil Energy and Mineral Reserves and Resources
• Global, generic, principles-based “umbrella” system– Solid minerals and fluids– Numerical coding system– Facilitates global communications
• Compatible, integral, and collaborative – CRIRSCO Template for minerals and PRMS for oil & gas
A consistent methodology across all Energy & Mineral resources, creates transparency and comparability
UNFC-2009 is and remains a voluntary system, intended as set of common rules that can be used by different stakeholders
Why consider renewables in terms of resources and reserves?
4
• Enhanced overview of asset values• Provide a measure of comparability with traditional energy systems• Offer a basis to estimate the scale of each renewable resource• Provide reliable estimates based on best practices and common standards
Renewable asset
owners
External stakeholder
s
• Investment community– Better assess and contrast investment opportunities– Enhance portfolio valuation
• Governments– Better understand total resource base– Facilitate achievement of integrated energy strategy and policies
• Global organisations– Assess and contrast global energy systems and different energy
sources• Other external users (Interested public, accounting profession, technical
consultants, etc.)
UNFC – How it works
5
• Socio-economic viability (E-axis): The social and economic conditions used to establish the commercial viability of the Project, including consideration of market prices and relevant legal, regulatory, environmental and contractual conditions.
• Project status and feasibility (F-axis): The maturity of studies and commitments necessary to implement the Project.
• Geological knowledge / uncertainties (G-axis): The level of confidence in the available data and potential recoverability of the quantities.
Resources are estimated and classified based on a “project”
6
The project generally represents represent the level at which a decision is made whether or not to proceed (i.e., spend more money)
Renewable energy projects are very similar to fossil energy or mineral projects
7
• A conventional resource represents an expectation of energy in place that can be economically produced / extracted and brought to market.
• A renewable energy resource represents an expectation of the renewable energy production potential that can be economically produced / converted and brought to market.
8
A Renewable Fuel Example
Liquid Fuel
Solid Fuel
Source Processing Losses Marketable Energy Products
Storage
UNFC Common project characteristics:
• A defined level of investment, with an expected production profile
• Prerequisites such as gaining access to the resource and market, receiving authorization, and validation of the economic case
• As the project develops, risk declines and certainty of returns improves
April 2014 – ABLC Washington, D.C.Copyright © 2014 DuPont. All rights reserved.
Renewables vs. Non-Renewables
9
Common Characteristics Key Differences
Projects have a defined level of investment, with an expected production profile
The renewable energy source does not deplete (SE4ALL definition: “… is replenished at a higher rate than consumed”)
Common prerequisites for project feasibility, such as gaining access to the resource and market, receiving authorization, and validation of the economic case
Geological risks do not apply to most Renewable energy projects, but similar uncertainties exist (e.g. meteorological variations, seasonal variations, etc.)
As the project develops, risk declines and certainty of returns improves
Structure and Contents of the Draft Specifications
10
Key definitions
UNFC-2009: E,F,G tables
Generic specifications
Glossary of key terms
Next Steps: Important Work Remains
11
Question Comments
Point of Reference / Measurement
• “Marketable Energy Products” Definition – Is wood an energy product ? • Treatment of non-energy co-products – Particularly where there is an option
to swing production between energy and non-energy products (e.g., sugar)• Energy used in conversion process
Access and Entitlement • Treatment of volumes produced using feedstock sourced from the market, rather than grown or sourced from land owned or leased?
• Treatment of lease extension / renewal?
Market Connectivity • How do we define/limit plant lifetime ?
Unit Conversion • Mbbl to Mboe ? • Twh to xxx ?
• The ECRG will review and consider for approval the draft Renewable Energy Specifications at their 5th Session April 29 – May 2, 2014 in Geneva
• Phase 2: (a) Subject to EGRC approval, public consultations on draft Specifications; (b) Development of commodity-specific specifications
Key Bioenergy Considerations
12
Thank you!
Questions? Feedback?
All documents at:
http://www.unece.org/energy/se/unfc_re.html