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Program Overview
Background and Long-Term Strategy
Bioenergy - for heat, power and liquid fuels - is the subject of considerable interest and activity worldwide. Drivers for bioenergy include:
- The reduction of CO2 emissions via the substitution of bioenergy for fossil fuels
- Security of energy supplies
- Regional development, especially through new rural industries
- Potential health benefits such as reduced particulate emissions.
Bioenergy is widely regarded as having a significant potential role in a low-carbon energy future.
However, bioenergy is a complex topic:
- It encompasses multiple feedstocks from agriculture, forestry, and urban sources
- It includes many different technologies: some widely used for decades and others only recently commercialised
- Energy products include electricity, heat and liquid fuels. In the future it is possible that co-products will also feature in many bioenergy projects
- As with other forms of renewable energy, it often involves the use of fossil fuels for its production, which reduces net greenhouse gas benefits
- It is the subject of active R&D world-wide, with a number of new technologies and feedstocks expected to be commercialised over the next decade.
Bioenergy contributes approximately one quarter of the new renewable electricity generated in Australia under the Mandatory Renewable Energy Target (MRET)[1], which came into force in 2001 and was designed to provide 2 per cent of Australia's total electricity generation in 2010. Bioenergy generation under MRET is primarily from landfill gas and bagasse-fired power stations at sugar mills.
Ethanol and biodiesel are both produced commercially in Australia. Production in 2008 was estimated to total approximately 250 ML per year. This production represents less than 1% of the estimated 37 billion litres of petrol and diesel used in Australia in 2007/08[2].
The bioenergy industry in Australia has the potential to grow significantly. This may be driven by:
- Increased demand for renewable energy for stationary power and transport fuels, as Australia seeks to reduce its CO2 emissions
- A market response to a sustained increase in oil prices in the longer term, as demand increases and supply is constrained
- The development of a variety of new and existing feedstocks that optimise sustainable use of existing farmland and create new opportunities for marginal lands
- A variety of new technologies, principally those for production of liquid fuels from woody biomass that are currently being commercialised overseas and also from algae.
Power and heat - The Australian Bioenergy Roadmap notes that bioenergy currently provides some 0.9% of Australia's electricity generation. The Roadmap reports that bioenergy could potentially provide from 19.8% to as much as 30.7% of Australia's electricity requirements by 2050.
Biofuels - As a variety of new biofuel technologies are commercialised, biofuels could potentially make up an important part of Australia's future transport fuels. This could include ethanol, biodiesel and synthetic diesel for use in blends and as fuels in their own right. In addition to current production via sugar, grains, tallow, used cooking oil and vegetable oils, additional fuel production could come from woody residues, new tree crops (for oil and for biomass) and algae. The potential for production of biofuels from algae could also be considered. Algae production has the potential to be linked to broader rural aquaculture initiatives.
The longer-term opportunities for bioenergy production will in part be determined by future policy direction and the best use of land resource for energy production. Bioenergy will also need to compete with other forms of renewable energy such as wind and solar, as well as other new sources of transport fuels such as coal (for electricity or liquid fuels) and natural gas.
With strong worldwide interest in bioenergy, a variety of new technologies for electricity generation and biofuel production are already being developed and commercialised overseas with significant industry investment and government support. Most of these technologies could be utilised in Australian conditions. Australian RD&E could adapt these technologies to suit local conditions and feedstocks, and assist with demonstration and commercial prototypes.
In situations where Australian researchers can demonstrate a strong competitive business case based on unique Intellectual Property or world leading capabilities, RD&E support has been shown to enhance the opportunities to create new local industries and technologies that complement developments made overseas.
Whereas bioenergy technologies developed overseas may be utilised in Australia, considerable local RD&E may result in a greater understanding of the optimal production, harvest, delivery and processing characteristics of Australian feedstocks. Such work will help to provide prospective businesses with a clear understanding of the cost, availability, benefits and limitations of feedstocks for heat and power and liquid fuels.
Local feedstocks will ideally be produced in ways that enhance the sustainability of rural enterprises and maximise the reduction of greenhouse gases. RD&E could be of benefit to both these areas. Where Australian conditions are different to those experienced overseas, local RD&E will assist with a thorough and balanced evaluation of these feedstocks.
Key long-term strategies
- Develop sustainability guidelines for the Australian bioenergy and bioproducts industries
- Assess and adapt existing Australian and international feedstocks and develop new feedstocks for bioenergy and bioproducts
- Scope, compare and develop energy and cost efficient technologies, infrastructure and logistics for harvesting and processing biomass
- Evaluate conversion technologies and select, research and develop those that are competitive for Australian circumstances
- Develop bioproducts that complement bioenergy production systems
- Identify sustainable transition pathways for bioenergy in the context of a range of alternative energy futures, given different climate change, economic and policy scenarios
- Develop and implement an outreach program using existing and new networks to deliver the capacity of Australia's rural industries to utilise the results of this program
- R&D into methane capture and use including the use of demonstration sites.
[1] http://www.orer.gov.au/publications/mret-overview.html
[2] http://www.abare.gov.au/publications_html/energy/energy_09/auEnergy09.pdf