Sustainable biomass procurement for Japan’s bioenergy sector · 2018-09-11 · Biomass power...

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Sustainable biomass procurement for Japan’s bioenergy sector

Takanobu Aikawa, Ph.DSenior researcher, Renewable Energy Institute, JapanMember of board, Japan Woody Biomass Association

IEA Bioenergy International Workshop:Future perspectives of bioenergy

development in AsiaSeptember 6thth2018

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Outline

n Biomass resource in Japann Recent biomass market developmentn Sustainability requirementsn Concluding remarks

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BIOMASS RESOURCE IN JAPAN

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Natural resource potential

�Forest and agricultural area in Asia-pacific region�

Source� FAOstat

Country Population(millions)

Forest area Agricultural areaMillion ha ha/capita Million ha ha/capita

Canada 35.9 347 9.65 63 1.74USA 319.9 310 0.97 406 1.27Australia 23.8 125 5.24 366 15.37Viet Nam 93.6 15 0.16 12 0.13Indonesia 258.2 91 0.35 57 0.22Malaysia 30.7 22 0.72 8 0.26Thailand 68.7 16 0.24 22 0.32China 1,428.4 208 0.15 529 0.37South Korea 50.6 6 0.12 2 0.03Japan 128.0 25 0.20 4 0.04

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Historical trend of wood supply

Source) Forestry Agency, Japan

Photo� Forestry Agency, T. Aikawa

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Woody biomass flow

Source� Furubayashi et al. (2017)

<Wood flow chart for Japan in 2014>

Domestic round wood: 21.3m3 -> Energy use: 7.0m3

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Woody biomass flow

Source� Furubayashi et al. (2017)

<Wood flow chart for Japan in 2025>

Domestic round wood: 30.3m3 -> Energy use: 13.3m3

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RECENT BIOMASS MARKET DEVELOPMENT

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0

10

20

30

40

50

60

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Hydro(<30MW) Solar Bioenergy Wind Geothermal

Rapid renewable development

Source) REI

<Cumulative installed capacity of renewables>

(Fiscal Year)

(GW)Feed-in-TariffRPS

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Bioenergy generation development

Source) REI

<Cumulative installed capacity of biomass power>

(Fiscal Year)

Feed-in-TariffRPS

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Biomass power plants in Japan

Note) The capacity means rated output only of each coal-fired power plant without considering the biomass ratio.Plant number is taken from the data of business plan approval reporting as of June 2018(ANRE/METI)

Source) By REI, from figures based on ANRE/METI Renewable Power Plant Certification Status

<Three types of biomass generation in Japan>

Cofiring of existing coal plants

Dedicated/ co-firing biomass generation

Dedicated biomass generation

Total capacity* 200 - 4,000MW 20 – 200MW 2 - 10MWNumber of approved plants**

23 110 43

Biomass fuel Wood pellet Wood pellet, PKS(import)

Wood chip (domestic)

Boiler type PCB CFB CFB, Stoker

nVarious technologies are deployed by sizel For smaller than 2MW , Japan’s FIT is also trying to deploy small-scale CHP

plants

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0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

FY2015 FY2016 FY2017

Forestry residues, thinned wood Lumber remnantsWaste wood Imported chipOthers (landscape caring etc.,)

Wood chip (for energy use only)

<Woodchip consumption by feedstock sources >

Source) Forest Agency

(1,0

00-d

ry-M

T)

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0

100

200

300

400

500

600

2012 2013 2014 2015 2016 2017 2018(first half

of theyear)

Canada China Vietnam Others

Wood pellet

Source) Trade statistics of Japan

Domestic production:12 (1,000MT/yr) in 2016

(1,000MT)<Import of wood pellet>

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( ) 359 406383 42209

42971872 50 ) ) ) (( , , (.060 50 , ) ) ( , ) , (

)

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PKS (Palm Kernel Shells)

Source) Trade statistics of Japan

<Import of PKS>

Photo) Biomass Industry Network

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FiT for biomass

Source) FiT page, METI/ANRE website

FiT Category Fuel Tariff(JPY/kWh)Bio-methane manure, food waste 38

Unutilized wood forest residues,thinned wood

32(>2MW),40(<2MW)

Ordinary wood,Agricultural wastes

wood pellet, PKS 21 (>20MW)24 (<20MW)

Waste wood Landscape-caring,Demolished wood

13

Wastes Municipality waste 17

Total -

nHigh tariff was set to boost biomass utilizationl 20 years purchase agreement with transmission operators

<FiT tariff for biomass generation>

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0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

December, 2016 December, 2017 Energy mix (2030)

RPS Formaly appoaved by RPS

Biomethane Unutilezed wood (<2MW)

Ordinary wood, agricultural residues Waste wood

Biogenic fraction of waste

Skyrocketing registration

Source) FiT page, METI/ANRE website

(MW) <Bioenergy capacity registered by FIT>

Many palm oil projects!

(50% in number, 36% in capacity)

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21

A5F

4C8

3C5C8B 5

.5

8A5

4C8

09 3

88 .C5 A5

6835

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Rapid growth in global market

Source) REN21 (2018) Global Status Report

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<Cumulative Installed Capacity of Bioenergy (the end of 2017) >

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Coal phase out in Japan?

Photo) RIEF

<Coal plants approved by FIT for co-firing>Company name MW

1 Chubu Electric Power Co., Inc. 4,100

2 Electric Power Development Co., Ltd. 2,000

3 TEPCO Fuel & Power, Inc. 2,000

4 Joban Joint Power Co., Ltd. 1,200

5 The Chugoku Electric Power Co., Inc. 1,000

6 The Chugoku Electric Power Co., Inc. 1,000

7 Kansai Electric Power Co., Inc. 900

8 Kansai Electric Power Co., Inc. 900

9 Hokuriku Electric Power Company 700

10 Hokuriku Electric Power Company 700

11 Electric Power Development Co., Ltd. 600

12 Shikoku Electric Power Co., Inc. 50013 The Chugoku Electric Power Co., Inc. 500

14 The Chugoku Electric Power Co., Inc. 500



17 Nippon Steel & Sumitomo Metal Corporation 330

18 Joban Joint Power Co., Ltd. 250


20 Ube Industries, Ltd. 216

n Case of Sumitomo at Sendail Changed their new coal power project

with biomass co-firing to dedicated biomass plant

nIncreasing of co-firing in existing coal plants

nBanning poor energy efficiency coal plants development with co-firing

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nAuctionl Ordinary wood & agricultural residues

– Larger than 10MW will be applied to the bid (total 180MW)

l Establishing a new category “Bio liquid fuel”– All projects will be applied to the bid (total 20MW)

– Liquids other than palm oil will be judged by experts group?

nEnsuring sustainable fuel supplyl Sustainability certification by the third party

l Contracts with local suppliers

FiT committee’s decisions in FY2017

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What is sustainable criteria?

GHG reductionLand

sustainability�inc. legality�

Traceability

Fuel type FeedstockWoody biomass�Chip, pellet�

Solid Residues (forest, sawmill)

PKS Solid Agricultural residue

Palm oil Liquid Product�Residue�

<Three pillars of sustainability criteria>

�

FSC, PEFCRSPO

SBP, GGL etc.

<Bioenergy fuel used for FiT >

UK, Netherland, (EU)+Japan?

<National standard> <Voluntary scheme>

What kind of scheme will be relevant for Japan / Asia?

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Sustainability verification method in Japan

Guideline for business plan (Biomass power)By ANRE/METI (revised in April 2018)

Guideline of woody biomass for power generation By Forestry Agency (issued in 2012)

Guideline for Verification on

Legality and Sustainability of Wood and Wood

Products

Certification scheme such as

RSPO(IP, SG)

Traceability(No specific

scheme mentioned)

1) Forest certification2) Association based3) Company based

1) Voluntary code of conduct

(developed by industrial

associations)2) Separative management

Woody biomass(domestic)

Woody biomass(import)

Agricultural biomass Liquid biofuel

Gohoguideline

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Sustainability requirements

Woody biomassAgricultural

biomassLiquid biofuel

DomesticImportForest biomass

�Un-utilized wood�By-products

�Ordinary wood�Stable procurement, avoiding influence on existing use � � � � �

Procurement plan, agreement with suppliers � � � � �

Checking by local government � � � � �

Sustainability � � � � �Legality � � � � �Land use, forest management � � � � �Traceability � � � � �GHG � � � � �iLUC � � � � �

<Sustainability requirements by biomass type >

nStable procurement and sustainability are two major pillars of sustainability requirements for FITl GHG, iLUC are not covered

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Recognition of voluntary schemes

1) Forest certification

2) Verification by company under the authorization of association

3) Original measure of eachcompany

<Goho Wood Guideline>

<Forest certification>FSC, FSC Mix (controlled),

PEFC

<Voluntary scheme>

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<Biomass certification>SBP, GGL etc.

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Agricultural biomass?

Voluntary scheme could be recognized ?

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Summary: Japan’s sustainability requirements

nIt’s a responsibility for Japan to establish sustainable requirements so that we could expand the market

nStable procurement and minimizing effects on existing utilization are regarded as most important

nTo fulfill the requirements for sustainability, existing (voluntary) schemes are utilized

nBiomass specific certification schemes, such as SBP or GGL, could be used for woody biomass

nGHG analysis as well as monitoring & reporting, which are required by Japan’s FIT might be covered by those voluntary schemes

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Realizing sustainable biomass deployment

0

500

1,000

1,500

2,000

2012 2013 2014 2015 2016

Japan South Korea

0

50

100

150

200

250

300

2012 2013 2014 2015 2016

Japan South Korea

<Wood pellet import in South Korea and Japan>

Amount (1,000t) Price (USD/t)

Source) FAO stat

ü Long-term contractü Sustainability

ü Spot tenderingü Sustainability?

nEstablish sustainable biomass trade framework for the Asia-Pacific regionl Why not return to IEA Bioenergy task40!

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Thank you for your kind attention!

Takanobu Aikawa, Ph.DSenior Researcher

Renewable Energy Institute, [email protected]

Sustainable biomass procurement for Japan’s bioenergy sector · 2018-09-11 · Biomass power...

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