Plating the hot potato – how to make intermediate bioenergy carriers an accelerator to a climate neutral Europe

Background With bioenergy on a sustainable resource base in the European energy mix, intermediate bioenergy carriers (IBC) become of growing importance, as they can ensure a more efficient utilisation of biomass feedstocks from agricultural and forest residues [1]. A high potential for market uptake is foreseen for fast pyrolysis bio-oil (FPBO), one of several IBCs. While facing the chicken and egg problem in market entry, it is crucial to develop adequate strategies to support market implementation. Method With an adopted PESTEL method [2, 3], we analysed a promising value chain in which FPBO is produced from sawdust in Sweden and Finland, transported to the Netherlands and upgraded and marketed as a marine biofuel. Macro-environmental factors were collected, coded, and classified in so-called PESTEL + I categories (political, economic, social, technological, ecological, legal, infrastructural). Results Our results show that the market uptake of IBCs such as FPBO and subsequently produced biofuels above all is driven by the European Renewable Energy Directive II (RED II) [4]. In Annex IX Part A, sawdust is listed as a feedstock for advanced biofuels, which can be double counted towards the 14% renewable energy share goal in the transport sector in 2030. To support the use of advanced biofuels in the maritime and aviation sector, the proposal for revision of RED II 2021 contains a new multiplier (1.2x) for fuels delivered to these sectors, while all other multipliers are deleted [5]. These legal European obligations and implementation into national law of member states create strong incentives for many downstream market actors to use advanced biofuel. However, technological challenges for FPBO use such as metal interference with catalysts in fluid catalytic crackers in refineries and ongoing standardisation processes still hamper fast market introduction. Conclusions Overcoming technology challenges and the creation of long-term validity of guidelines and regulatory framework will create stable market conditions, investment security and finally will stimulate long-term offtake agreements between feedstock providers, technology developers and downstream customers.