Biomass Asia The Traceability and Sustainability Control of Biofuels from Waste and Residual Biomass Materials.

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1 Biomass Asia 2013 The Traceability and Sustainability Control of Biofuels from Waste and Residual Biomass Materials. Sunway Putra Hotel, Malaysia Zerifizierung 1

2 Topics of Discussion Short Introduction of TUV NORD Group Renewable Energy Directive Definitions Type of Biomasses Sustainability German Legislation Amendment of RED Traceability Trace your Claims Mass Balance & Segregation GHG Accounting Certification Conclusion TUV NORD Malaysia 14/05/2013 2

3 TÜV NORD, a competent and international service partner Competence with broad expertise, impartial and independent International present at locations throughout the world Your partner thanks to customer orientation, comprehensive service and reliable expert consultancy Strategic M&A Investor partnership approach focusing on long-term relationships TUV NORD Malaysia 14/05/2013 3

4 The TÜVs in Germany TÜV NORD TÜV Thüringen TÜV Rheinland TÜV Saarland TÜV SÜD TUV NORD Malaysia 14/05/2013 4

5 Renewable Energy Directive (RED) DIRECTIVE 2009/2/EC promotes the use of renewable energy and defines the framework for sustainability certification DIRECTIVE 2009/28/EC: Renewable Energy Directive RED, April 2009 Article 17*: Sustainability criteria for biofuels and bioliquids Article18*: Verification of compliance with the sustainability criteria for biofuels and bioliquids Article 19*: Calculation of GHG impact of biofuels and bioliquids Article 20: Rules of calculating GHG impacts * Fuel Quality Directive contains corresponding criteria Unternehmenspräsentation 14/05/2013 5

6 RED - Definition Biomass : The biodegradable fraction of products, waste and residues from biological origin from agriculture (including vegetal and animal substances), forestry and related industries including fisheries and aquaculture, as well as the biodegradable fraction of industrial and municipal waste; Bioliquids : liquid fuel for energy purposes other than for transport, including electricity and heating and cooling, produced from biomass; Biofuels : liquid or gaseous fuel for transport produced from biomass; 6

7 Type of Biomasses Algae Biomass fraction of mixed municipal waste and industrial waste Animal manure and sewage sludge EFB, PKS, Mesocarp Fibre Bagasse Fruit / Grape marcs (remains of fruit after processing) Wine lees (thick sediments during fermentation process) Nut shells, straws, husks, cobs, bark, branches, leaves, saw dust and cutter shavings Ligno-cellulosic material (wood, pulp fibre & paper, agricultural residues, water plants, grasses, and other plant substances) except saw logs and veneer logswood; 7

8 RED Sustainability Article 75: The requirements for a sustainability scheme for energy uses of biomass, other than bioliquids and biofuels, should be analysed by the Commission in 2009, taking into account the need for biomass resources to be managed in a sustainable manner. 8

9 RED - Proof of Sustainability Source: ISCC Unternehmenspräsentation 14/05/2013 9

10 Requirements of sustainability Biomass does not come from areas after with following status: Forest land Areas designated by law or by the relevant competent authority to serve the purpose of nature protection Grassland with high biological diversity Areas with high stocks of carbon Products from Sustainable agriculture [Cross compliance in EU or Documentation of further sustainable production (soil, water, air, food prices, land use rights) in other countries] or from bio waste Evidence of traceability and mass balance or segregation TÜV NORD CERT GmbH 14/05/

11 Requirement for Production of Biomass PRINCIPLE 1: Biomass shall not be produced on land with high biodiversity value or high carbon stock. HCV areas shall be protected. PRINCIPLE 2: Biomass shall be produced in an environmentally responsible way. This includes the protection of soil, water and air and the application of Good Agricultural Practices PRINCIPLE 3: Safe working conditions through training and education, use of protective clothing and proper and timely assistance in the event of accident; TUV NORD Malaysia 14/05/

12 Requirement for Production of Biomass PRINCIPLE 4: Biomass production shall not violate human rights labour rights or land rights. It shall promote responsible labour conditions and workers' health, safety and welfare and shall be based on responsible community relations PRINCIPLE 5: Biomass production shall take place in compliance with all applicable regional and national laws and shall follow relevant international PRINCIPLE 6: Good management practices shall be implemented Unternehmenspräsentation 14/05/

13 German Legislation - Sustainability Source: ISCC 13

14 German Legislation ISCC and RED Cert are recognized as appropriate schemes to fulfill the requirements of the 36. BImSchV Source: ISCC 14

15 Amendment of RED Source: ISCC 15

16 Amendment of RED New Proposal to tackle iluc Reaching the 2020 targets of the RED (10% renewable fuels in transport sector) and of the FQD (minimum of 6% GHG reduction per energy unit of fuel supplied) will become more difficult 16

17 Traceability Supply Chain Production Process Distribution Process Subject to certification Source: ISCC 17

18 Traceability Value Chain Subject to certification Individual or Group Source: ISCC 18

19 Tracing Sustainability Chain of Custody Two requirements: 1. Minimum requirements for the management system: these define requirements for the organisation of the respective elements of the supply chain. 2. Information requirements regarding sustainable products. These describe necessary data for identification of sustainable products at any step of the supply chain. a) Information requirements for delivery notes regarding sustainability characteristics and traceability attributes b) Information and documentation requirements for audits Source: ISCC 19

20 Traceability Step by Step Across steps or stages of the value chain Source: ISCC 20

21 Trace your Claims The database provides security and traceability for sustainability claims An independent database, globally applicable, open for all system users of recognized certification schemes and fulfils member states' double counting requirements Provides the security of a closed system, covering feedstock origination and all processing steps. It reduces documentation and verification costs A secure tool for registration and handling of double counting material on a global basis. The database covers the entire supply chain from the point of origin via further processing and conversion towards trade and final use by quota obligated parties Interfaces will be provided to other public databases as well as databases operated by national authorities (e.g. Nabisy) and up- and download functions in order to ease data handling 21

22 Mass Balance & Segregation Segregation DE Mass Balance EU Unit 1 Certified 3,000t Unit 1 Certified 3,000t 3 rd Party Not Certified 1,000t 3 rd Party Not Certified 1,000t 4,000t Mixture Reduce booking records Identity of physical stocks Sustainable batches can be mixed Easy handling as no segregation required Smallholder Friendly No shortage allow with a certain period 22

23 Mass Balance 1. Amount on incoming sustainable biomass should not exceed amount of outgoing sustainable biomass 2. Need to be product specific up to last conversion unit Source: ISCC 23

24 RED GHG Double Accounting Not in a harmonised way Source: ISCC 24

25 Proposal on GHG Counting Source: ISCC 25

26 GHG Savings GHG saving requirements: 01/04/2013: 35 % 2017: 50 % 2018: 60 % for installations in which production started from 2017 onwards Methodology: The RED contains default values and disaggregated default values that can be used in certain cases* The RED contains a calculation methodology for actual values Source: ISCC 26

27 GHG Calculator Uniform Procedure Transparent and fully documents Update of all input data possible Based on recognised RED methodology Comparability of results Calculation of independent of final use Can be used for certification audit Source: ISCC 27

28 RED GHG Calculation 1. Annex V: Rules for calculating the greenhouse gas impact of biofuels, bioliquids and their fossil fuel comparators Typical and default values for biofuels if produced with no net carbon emissions from land-use change Estimated typical and default values for future biofuels that were not on the market or were on the market only in negligible quantities in January 2008, if produced with no net carbon emissions from land-use change. 2. Methodology of calculation refer to below formula in RED. Greenhouse gas emissions from the production and use of transport fuels, biofuels and bioliquids shall be calculated as: E = e ec + e l + e p + e td + e u e sca e ccs e ccr e ee, 28

29 Certification Source: ISCC TUV NORD Malaysia 14/05/

30 Certification Schemes Recognised by EC 1. International Sustainability and Carbon Certification (ISCC) 2. Bonsucro EU partially recognized (GHG, grassland) 3. Round Table on Responsible Soy EU RED (RTRS) 4. Roundtable of Sustainable Biofuels (RSB) 5. 2BSvs, Bunsucro partially recognised (GHG, grassland) 6. Abengoa RED Bioenergy Sustainability Assurance (RBSA) 7. Greenergy Brazilian Bioethanol partially recognized (grassland) 8. Ensus (ethanol production) UK 9. Red Tractor (only crops) UK 10.Biomass Biofuels Sustainability voluntary scheme (2BSvs) only partially recognized (GHG, grassland) 11.SQC (only crops) Scotland 12.REDCert EU 13.NTA 8080 (Netherlands) 14.Round Table of Sustainable Palm Oil (RSPO) only partially recognized (GHG) 30

31 Conclusion Member states requirements The source of the biomass in the supply chain Mass Balance & Segregation Trace your claims 31

32 Thank you for your attention. TUV NORD Malaysia Sdn Bhd Robert CY Cheong No. 20, Jalan Tiara 3, Tiara Square Taman Perindustrian UEP Subang Jaya, Selangor. Malaysia T: M: E: 32

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