Setting up international biobased commodity trade chains

Setting up biobased production chains, from biomass feedstock to final biobased product (energy, chemicals, materials) is a complicated process in which a whole range of decisions have to be made. Choices include what feed stocks to use, arranging logistics and, most important of all, the locating of facilities to compact, dewater and convert the biomass into tradable intermediates and final products. Choices depend on the local conditions and factors such as the economy-of-scale of intermediate steps. These are complicated by the fact that biomass is produced dispersed ( a low density per area) and is almost by definition bulky, low in energy density and generally contains considerable amounts of water. Also other aspects such as (local and international) market demands, regulations and competing applications for biomass feedstocks are relevant aspects.

The objective of this study was to develop an overview of possibilities, choices and trade-offs for production and trading of biobased commodities (e.g. raw materials and biobased chemical "building blocks" and fuels that may guide project developers and decision makers in the development of business cases.

5 potential biobased export trade chains from Ukraine to the EU/The Netherlands were assessed. Based on previous studies and expert judgement the production of (basic) feedstocks was judged favourably in Ukraine for established crops. Sugar beet and lignocellulose (straw, energy crops) was assessed to still be unattractive but having a large potential if productivity and associated infrastructure and policies could be improved. Siting of the main (costly) conversion step was compared between Ukraine and the Netherlands. Factors associated with cost (though not financing) were judged to be advantageous for Ukraine. Siting in the Netherlands was judged to score better on security of supply, infrastructure, logistics, tariffs, by-product value and regulation environment and rule of law.