From fossil addiction to a sustainable biomass-driven economy

This week the Minister Verhagen of the Dutch Ministry of Economic Affairs, Agriculture and Innovation released his long-awaited Green Deal.

Supporters and opponents have considered the Green Deal and there are varied positive or negative thoughts about it. Unarguably positive is the much more important role that biomass has to play within the Dutch economy instead of the fossil fuels oil, gas and coal.

After all, Verhagen knows like no other that a country like the Netherlands would be disproportionately hard hit by particularly oil and gas becoming impossibly dear over time: employment, spending power and economic strength would be under great threat. That is because within the Netherlands there are a number of extremely important activities that, considering our population, are actually quite large. Activities that, moreover, could be described as being heavily dependent on fossils: one of the largest harbours in the world (Rotterdam), a very expansive chemical branch of industry and a very large airport (Schiphol) with all of its neighbouring activities.

Emerging economies, with their fast-growing populations which are becoming more prosperous, are making greater demands on the global oil reserves at breakneck speed. The new economic world powers, such as India and China, will claim an increasingly greater percentage of the global resources and their citizens want and will be given access to affluence previously unknown to them. Estimates are, a billion (!) ‘new’ consumers want a car, a smartphone, a laptop and a scooter. A situation that in a few decades will be untenable. Everyone knows that; it will be a problem and that is why we have to head for an economy that is much less or scarcely dependent on fossil raw materials such as oil, an economy that is based on biological raw materials: sustainable and indefinite, the biobased economy.

Currently, the fossil fuels oil, gas and coal still dominate the energy supply, the transport sector and a large percentage of the chemical industry. One thing is certain: there will come a time that sustainable alternatives will take over. Because of their relatively low price, high degree of availability and sustainability, green raw materials (biomass) will form the basis of the biobased economy. Biomass is easily obtainable. Biomass is an ideal alternative to fossil fuels, because under the right cultivation and usage conditions, biomass does not contribute to the concentration of greenhouse gases in the atmosphere. Because of the short cycle of biomass in comparison to fossil fuels, the CO2 emissions are immediately reabsorbed, meaning the use of biomass is CO2 neutral. Throughout the world, there is an enormous potential for biomass from residual flows from industry, forestry and agriculture: for example, more than enough to be able to supply the whole of Europe with green energy.

Currently, only a very small part of the global biomass potential is utilised. For example, of the entire world's production of wood chips, Essent purchases around 12 percent to replace coal and the production of sustainable energy in power plants. An enormous percentage for a relatively small energy utility, certainly when considered globally. The fact that a Dutch energy utility is the global trend-setter as regards producing green energy using biomass means that a foundation has been laid for the biobased economy in the Netherlands. A foundation that is strengthened by the presence of a large harbour such as Rotterdam and a strong chemical sector.

In order to arrive at a real biobased economy, the biomass does, of course, have to be used optimally and not only as a fuel in power plants, to produce green gas or biofuels. The art is to utilise biomass optimally, so that as little as possible is lost. That is possible through ‘cascading’; extracting as many valuable substances as possible and making good use of any remaining parts. The highest step in the cascade is the use with the highest added value, such as in the pharmaceutical industry for producing medicines. That includes utilising this for fodder and food, chemicals, paper and textiles and transport fuel. And finally the use of this as an energy source. It is therefore not a question of choosing between food or fuel, it is an 'and….and’.

Take for example grass obtained from mowing the roadside verges. After processing, the proteins are removed from the grass for the cattle fodder industry, where they are used as an alternative for soya. The fats can be used as a raw material for cosmetic products, or for the pharmaceutical industry. The fibres go to textile or paper factories and be used for making books, etc. Organic acids and sugars go to the fine chemicals or bulk chemicals industry. Here you will see, based on one simple type of biomass (grass) a whole chain of sustainable economic activity, the biobased economy.

The biobased economy offers enormous opportunities to the Netherlands. With Rotterdam as the logistical heart, a strong chemical industry and agricultural sector, and outstanding knowledge establishments, our country has numerous assets to fulfil a pivotal role. The business community, the knowledge economy and employment are also doing their bit and this will help the climate goals to be achieved. To be able to achieve the European and Dutch climate objectives laid down for 2020, the use of biomass – in addition to utilising wind and to a lesser degree the sun as sustainable energy sources – is necessary. Biomass can quickly and cost-effectively reduce CO2 emissions at a large scale. Biomass is already currently contributing significantly to achieving the climate and energy objectives in the Netherlands. Thirty percent of the production of sustainable energy takes place using biomass. With the large-scale co-firing of biomass in, for example, the Amer Power Plant (35%) and later on possibly in the Eemshaven power plant, Essent is contributing massively to this. We are even endeavouring to replace 50% of coal by sustainable biomass in the Amer Power Plant by 2015; a gigantic step.

The energy sector, and especially a large-scale user of biomass such as Essent, is an important player in kick-starting the volumes on which the biobased economy can be built. Of course, and this is a 'must', the sustainability of the biomass has to be guaranteed. The Essent Green Gold Label can take that as a basis for a sustainability certificate for biomass to be created on an international level.

Nina Skorupska, Chief Technological Officer, Essent Executive Board

A shortened version of this article was published in the Dutch financial newspaper ‘het Financieele Dagblad’ on 17 October 2011.

Published: 17 October 2011