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Economic Perspectives of Renewable Energy Systems

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Economic Perspectives of Renewable Energy Systems ( economic-perspectives-renewable-energy-systems )

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not currently economic but might become so in the EU if there is a continuing need to pay farmers to take agricultural land out of food produc tion and find other uses for it. (D) Priorities for augmented R&D 16. The EU-wide R&D contribution AGE sees here should aim at breeding plants optimized for energy use, looking for a better trade-off between high yield and limited environmental impact. It also consists in making available the results of field trials and in encouraging a few local communities to demonstrate, with currently available technology, the complete biomass supply chain in action. Biomass to Liquids 17. The best way to transport energy in bulk is as liquid fuels, in tankers or pipelines. Liquids are also the most versatile fuels, since they are easily usable in transport vehicles as well in stationary applications. The conversion of solid carbohydrate biomass into liquids has therefore always been seen as a highly desirable goal. 18. Making ester bio-fuels from oilseeds can certainly be done but looks uneconomic for the foreseeable future and has poor energy payback. Similarly, making ethanol by fermentation of plant sugars, though widely used in Brazil with public support, would be more difficult to pursue in the cooler, drier countries of the EU. In contrast, the conversion of whole plants, including sugars, starches and cellulose, to liquid fuel via biomass-to-liquid (BTL) processes could be widely applicable in the EU. 19. Various gasification and pyrolysis options are available and all the required chemistry, such as Fischer-Tropsch reactions, is well known. However, the current cost of biomass derived liquid fuels is more than 12 €/GJ, whereas crude oil is available to the EU at 30 € per barrel, corresponding to only 5 €/GJ. Since many of the costs are in the technology rather than the feedstock, biomass liquids produced overseas are not likely to become competitive in the foreseeable future either, with crude oil often produced at less than 0.5 €/ GJ. 20. However, because of the potential of BTL to provide CO2- neutral liquid fuels, indigenously or from a wide range of external sources, AGE believes that EU – wide R&D here is justified, in particular on trying to find bioconversion processes for the ligno-cellulose parts of woody plants. The alternative approach of using chemical or biological processes to separate liquefiable sugars and starches from solid lignin, which can then used as a solid fuel, also needs pursuing. R&D on optimising the design and operation of more conventional BTL plant for the different biomass feedstock which might become available in or to the EU would also be useful, in order that the conversion technology and costs of BTL fuels might be reduced or at least become less uncertain. Biomass Combustion and Processing Equipment for Export 21. The potential of biomass energy outside the EU, in Asia, Africa and South/Central America is great. Those poor countries which use wood and agricultural wastes as fuels would greatly benefit from using these resources more cleanly and efficiently. In lightly populated rural areas where wood or other biomass is available but coal and gas are not and oil is expensive, modest-size, decentralised biomass generating plants will probably prove a good way of making electricity. 85

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