GDF SUEZ Energie Nederland
CREATING A SUSTAINABLE
BIOMASS SUPPLY CHAIN IN
MOZAMBIQUE
World Biofuel Markets
13-15 March 2012, Rotterdam, The Netherlands
Maarten Gnoth Manager Sustainability Projects
GDF SUEZ Energie Nederland
CONTEXT
Commercially available solid biomass of current geographic origins likely to reach full potential in the future
Incremental demand likely to be covered by biomass from developing countries
Availability of competitively priced and sustainable biomass from these countries is currently low
GDF SUEZ and Solidaridad work together since 2008 to develop basic elements for a sustainable biomass supply chain from Mozambique
Approach: addressing and solving uncertainties to reduce risk profile and build viable business cases
GDF SUEZ Energie Nederland
(JOINT) TRACK RECORD
2008 – 2009: Solidaridad project in Mozambique with Biopec funding. Main results:
Improved understanding of Mozambican market potential and challenges for solid biomass
Establishment by Solidaridad of Fair Biomass Mozambique (FBM) Lda. (farmer association company with currently 12 members)
Development of web-based traceability system
2009 -2012: Solidaridad project with EC funding Main objectives:
Development of viable biomass supply chains for domestic and/or export markets
Installation of biomass pelletizer at FBM Lda.
Pilot and role out of agro forestry program
Policy support to Government of Mozambique
GDF SUEZ Energie Nederland
THE NEXT STEP
2010-2012: joint project ‘Triple bottom line torrefied biomass supply chain from Mozambique’
Funding from Global Sustainable Biomass Fund:
Commissioned by Dutch Ministry of Foreign Affairs
Executed by Agentschap NL / Agency NL
Goal: promote production of sustainable
biomass for energy purposes in
developing countries
50% co-financing for companies,
75% for NGO’s
Our proposal is one of 16 approved, out of a total of 56
GDF SUEZ Energie Nederland
Objective:
• Development of a certified, sustainable (triple bottom line) biomass supply chain from agricultural by products and short rotation coppiced trees from
smallholder producers in Mozambique, and evaluation of the feasibility of
torrefaction under Mozambican circumstances
Activities:
• Developing a bankable business plan for torrefied biomass from Mozambique
• Sharing lessons learned with Government of Mozambique and others
OBJECTIVE & ACTIVITIES
Q4 Q1 Q2 Q3 Q4 Q1 Q2
Sourcing and selection biomass (sustainable, applicable,
feasible)
Building a sustainable biomass supply chain incl. agro forestry
Torrefaction sampling and power station testing
Sustainability assessment, certification and traceability
Financial modeling / Business Case development
GDF SUEZ Energie Nederland
BIOMASS IDENTIFICATION
• Origination of biomass
• Selection on sourcing, availability & logistics
• Selection available on sustainability criteria
• Selection on local stakeholders
• Sample lab testing on chemical & physical comp.
• Selection on technical applicability for torrefaction • Selection on technical applicability for co-firing
• Selection on commercial feasibility
• Integrated in business modeling
GDF SUEZ Energie Nederland
BIOMASS SUPPLY CHAIN
Chipper / cuttermill
Wood (soft/exotic)
BIOMASS FEEDSTOCK
Harvesting & collecting
Other (Bamboo, bush etc.)
Transport Blending & Storage
Torrefaction
Pelletizing
Storage
Briquetting
Prepared carbon
Storage at port
Sea vessel loading
EXPORT
Shipping
Storage
Soil amendment
LOCAL TO LOCAL
Charcoal Local cement
factory / power plant ?
Transport
Transport
CONVERSION
SCENARIO 2
SCENARIO 1
Agro residues Smallholders / Outgrowers
GDF SUEZ Energie Nederland
Business case Local-to-LOCAL
GDF SUEZ Energie Nederland
Business case Local-to-EXPORT
GDF SUEZ Energie Nederland
Storage at port
Sea vessel loading
EXPORT
Shipping
Transport
Torrefaction &
pelletization
SCENARIO 2
SC
EN
AR
IO 1
Harvesting &
collecting by local population
BIOMASS
FEEDSTOCK
Bamboo Nacala corridor
Farmers cooperation in
bamboo storage Bamboo collection fixed route
Storage
Storage
Chipper / cuttermill
CONVERSION
Business case Local-to-EXPORT
GDF SUEZ Energie Nederland
Business case Local-to-EXPORT
GDF SUEZ Energie Nederland
TORREFACTION &
POWER STATION TESTING
GDF SUEZ Energie Nederland
SUSTAINABILITY
Principle Clarification Cramer
(NTA 8080)
Corbey RED UK Belgium
(LBE)
IWPB
1 GHG
BALANCE
Positive CO2 balance of total biomass
supply chain (against conventional) Will
2 CARBON
STOCKS
Production of biomass not impacting
high carbon stocks in vegetation & soil X Will
3 BIO-
DIVERSITY
No production of biomass at protected
or vulnerable biodiversity X Will
4 SOIL Soil (quality) is maintained or improved X X X Aim to
5 WATER Water not exhausted and water quality
maintained or improved X X X X Aim to
6 AIR Air quality is maintained or improved X X X X Aim to
7 SOCIAL Preserve food- and local biomass
applications from unfair competition X X X Aim to
8 LOCAL
WELFARE
Production of biomass contributes to
local prosperity X X X X Aim to
GDF SUEZ Energie Nederland
BUSINESS CASE DEVELOPMENT
Main findings:
• Theoretical potential biomass in Mozambique is high
• Availability of underutilized biomass does not match minimum scale
for export
• Security of large-scale supply requires nucleus estate
• Logistics and infrastructure are challenging
• Availability of qualified people and service industry is limited
• Complicated legislation for shipping/import torrefied biomass (MSDS, self-heating test, export/import permits, REACH, IMO etc.)
What is needed to develop an export supply chain of torrefied biomass from Mozambique?
Our approach:
1. Local-to-local supply chain: stepping stone model and learning vehicle
2. Export supply chain: hypothetical - based on some actual building blocks
GDF SUEZ Energie Nederland