Strategy & Management

Sustainable Biomass Gaining Significance

Why the Chemical Industry Should Become Certifiable

08.12.2011 -

Discussion On Sustainability - Biomass is booming. It is one of the most important sources of renewable energy and will play an important role in tomorrow's energy supply as an alternative to fossil fuels.

In the area of bioenergy, an EU directive prescribes the use of certified, sustainable biomass. But biomass is also widely used in other sectors, such as food production, animal feed production and the chemical industry. Although the use of biomass in these areas is not regulated by legislation, these industries must nevertheless address the discussion on sustainability.

Not All Biomass Is Created Equal

In addition to sun and wind, biomass is now one of the chief sources of renewable energy. Its use has triggered public debate on how the use of raw materials which can be regrown affects the environment and the Earth's climate. We have all seen images of devastated tropical rainforests.

In stipulating that only certified sustainable biomass could be used in the motor fuel sector from Jan. 1, 2011 onwards, the EU ruled out the use of carbon-rich and biodiverse land for biomass production in this sector. Over and above this, a requirement stating that biofuels must achieve a reduction in greenhouse gases of at least 35% in comparison to fossil fuels was put in place.

However, a directive covering this area only represents a mere drop in the ocean. Only around 8% of palm oil, for example, is actually used for biofuel production. The bulk of the harvest is used by the chemical and food-producing industries. It follows that it makes sense to extend certification demonstrating the sustainability of biomass into these areas. Otherwise it will be virtually impossible to prevent the overexploitation of nature and changing landscapes at the expense of food production.

The coalition agreement of the German federal government provides for the extension of sustainability requirements to all areas of biomass use. Such an extension is also under discussion at EU level. While decisions on the introduction of binding legislation have yet to be made, enterprises in the relevant sectors can obtain certification voluntarily.

Certified Products Attract Premium Prices

Around 10% of the feedstock used by the chemical industry consists of biomass. The international chemical group Braskem has just had a plant in Brazil certified by International Sustainability and Carbon Certification (ISCC), establishing an importing precedent in the process. More and more of the chemical industry's customers are requesting proof of sustainability from suppliers.

In the medium term, enterprises using non-certified biomass can expect that the prices for their products will drop. The general public is increasingly displaying an interest in sustainability-related topics which is not confined to products targeted directly at consumers. Enterprises' actions are increasingly being scrutinised to determine whether they are economically, socially and ecologically sustainable.

However, these are not the only aspects relevant to the decision to opt for voluntary certification. In the biofuels sector, premium prices are paid for ISCC certified products. Here, certification has become a selling point for producers to distinguish themselves from competitors. It can be assumed that this effect will also apply to other sectors in the future. It is crucial that the certification systems are of high quality.

Social criteria as well as purely ecological criteria should be audited; systems which do not consider social criteria are unlikely to be perceived as credible by the media and the society. The production of certified sustainable biomass helps to export social and ecological standards and to improve living and working conditions in countries outside the EU. The production of sustainable biomass can serve to generate incomes in countries or regions with poor infrastructure.

For example, 140,000 small farmers in India grow jatropha for the Australian company Mission New Energy, which extracts oil from the plant for biodiesel production. Most of these small farmers live close to the poverty line in isolated regions. Jatropha is planted on fields which are not suited to food production.

No chemicals are used, and only organic fertiliser is applied. The farmers cultivate the land using basic techniques and resources, and they are supported in their work by various Mission New Energy service centres. This allows subsistence farmers to profit from the growing demand for sustainable biomass by tapping into a new income stream. At the same time, greenhouse-gas emissions are reduced and agriculture for food production is not threatened. A classic win-win situation.

The sustainability discussion in the chemical industry is only now getting off the ground, but those involved in the sector are aware that the topic will continue to grow in importance and that it should be tackled head-on before legislative requirements are implemented. Pilot projects are currently being realised with various chemical enterprises. Competition in the area has heated up following the recent certification of Braskem. This is likely to result in increasing numbers of chemical enterprises seeking voluntary certification.

The more participants in the market join this process, the faster humans and the environment will benefit.

Contact

ISCC System GmbH

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50670 Köln
Germany

+49 221 17932966
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