Biomass Strategy

2.1 Biomass sustainability requirements in the UK today 20

2.2 Biomass governance structures and requirements in the UK today 28

2.3 Review of existing biomass sustainability criteria 34

2.4 Actions for strengthening the UK’s biomass sustainability criteria 42 3 Biomass and Air Quality 54

3.1 Impact of biomass use on air pollution 55

3.2 Impact of biomass air pollutant emissions on greenhouse gas emissions 57

3.3 Regulatory requirements on biomass 58

3.4 Research, development, and innovation to support biomass sustainability requirements and air quality 61 4 Biomass availability: sustainable resources from international and domestic sources 62

4.1 Biomass Feedstocks 64

4.2 Future availability of biomass resources 66

4.3 Innovation opportunities for scaling biomass feedstocks in the UK 89 5 Priority use of biomass 94

5.1 Introduction 96

5.2 Principles of best use of biomass 96

5.3 Wider Strategic context for Biomass Use 102

5.4 Principles and conditions for biomass in achieving net zero: The Public Dialogue Project 104

5.5 Prioritising biomass usage in the short, medium and long term 105 2 | Biomass Strategy 6 Biomass with Carbon Capture and Storage 120

6.1 Bioenergy with Carbon Capture and Storage (BECCS) 122

6.2 Public perceptions of BECCS 122

6.3 BECCS Technologies 123

6.4 How BECCS can deliver negative emissions 130

6.5 Principles of deploying BECCS 134

6.6 Supporting BECCS 138

6.7 Biochar 143 7 Biomass uses across the economy 146

7.1 Biomass for renewable electricity generation 149

7.2 Biomethane production and greening the gas grid 154

7.3 The use of biomass in heating 162

7.4 Biomass with combined heat and power 167

7.5 Biomass use in transport 169

7.6 The use of biomass to support the decarbonisation of industry 173

7.7 Biomass for low carbon hydrogen production 177

7.8 Non-energy uses of biomass 180 Annexes 185 Technical Annex 189 Glossary 198 Biomass Strategy | 3 Ministerial foreword The green energy transition has never been more important. In recent years, global energy markets have been rocked by a pandemic, war in Europe, and by pressures on the cost of living across the globe. We have seen how dependence on fossil fuels can leave British citizens paying the price for rogue actions elsewhere in the world. All the while, we are witnessing the increasingly damaging effects of climate change, from rising sea levels to extreme temperatures. That is why, in March this year, the newly Another challenge is the scaling up formed Department for Energy Security of domestic biomass supply, without and Net Zero published the Powering Up compromising food security. That’s Britain strategy, setting out how we’re why the government has awarded £36 going to build a truly green economy. As million to projects across two phases that strategy made clear, biomass has a of the Biomass Feedstocks Innovation major role to play. Programme, funding innovative ideas that address barriers to domestic production. Biomass is already a key component of our energy supply, with bioenergy generating At the same time, we will continue to 11% of total electricity supply in 2022. develop policy measures to support the But its future potential is extraordinary: it is a scale-up and deployment of biomass renewable source that can be used across technology more generally. all three energy sectors (transport; heat; and electricity), as well as non-energy sectors. It In the decades ahead, biomass’ unique can deliver low carbon energy, displace fossil potential as a carbon negative renewable fuel use in materials, and produce negative energy source will prove ever more emissions when combined with carbon valuable in our efforts to reduce emissions, capture and storage. This strategy, which and this strategy explores how we can builds on the Biomass policy statement build this vital industry. published in November 2021, explains how we aim to leverage that potential. The Rt Hon Graham Stuart MP One of the most significant challenges is Minister of State for Energy securing a sustainable supply of biomass, Security and Net Zero both from within the UK and from imports. We are committed to maintaining a strict approach to biomass sustainability and are planning to consult on a sustainability framework to support this approach. 4 | Biomass Strategy Foreword Professor Paul Monks Department of Energy Security and Net Zero Chief Scientific Advisor The United Kingdom has set an ambitious target to achieve net zero greenhouse gas emissions by 2050. Meeting this target will require a significant shift in our approach to energy and low carbon technologies. There has never been a more crucial time to take action, particularly considering the ongoing conflict in Ukraine, which adds to the challenge of decarbonising every These policies have not only helped sector of our economy while ensuring reduce the reliance on coal in our energy security. To tackle this, there is a electricity system but have also stimulated need to invest in low carbon technologies substantial investment in low carbon and take comprehensive action across technologies and fuels. all fronts as we progress through the carbon budgets. Meeting the net zero target will require a combination of strategies, including The decarbonisation challenge is a reducing demand, improving efficiency, complex systems issue that encompasses and implementing low carbon solutions. various sectors, such as transportation, Biomass is not a silver bullet, and neither is power generation, industry, residential carbon capture. We will rely on a range of emissions and agriculture. In the future solutions to achieve net zero. there will be a need for negative emission technologies to compensate for areas One crucial aspect to biomass is its where we cannot decarbonise completely. intersection with the environment and It is not enough to rely solely on technology how we interact with it. It is imperative to solve this challenge; we must actively that biomass is sourced and used engage people to ensure there is an sustainably. This requires clear criteria understanding of the magnitude of the for what constitutes sustainable biomass problem and confidence in the solutions. and implementing robust monitoring, verification, and reporting processes. Biomass can play a significant role in The UK was one of the first countries to decarbonising nearly all sectors of the develop and use sustainability criteria for economy. The UK is already a global biomass across various sectors, and we leader in biomass policy and technologies, have worked actively internationally to with biomass accounting for 8.6% of our enhance and refine them. energy supply in 2022. This progress is driven by the effective biomass policies There is a need, as laid out in this strategy, that have been in place for over 20 years. to review and further strengthen the criteria. Biomass Strategy | 5 There are no easy solutions to the decarbonisation challenge. As we progress towards net zero, we must prioritise low regrets options that allow us to move forward effectively and quickly. Placing sustainability as our top priority when utilising biomass will support this approach. The following strategy outlines our assessment of the potential role of biomass in achieving our net zero target. It acknowledges that there is a finite supply of sustainable biomass, emphasising the need to carefully consider how we can direct its usage. The evidence suggests that we should prepare for a transition to a world where we deploy more carbon capture technologies. Through biomass, we can achieve both low carbon energy sources and some of the negative emissions necessary to reach net zero. 6 | Biomass Strategy Executive Summary The purpose of the Biomass Strategy is A key commitment of the Biomass to set out the role biomass can play in Strategy is to develop and implement a reaching net zero, what government is cross-sectoral common sustainability doing to enable that objective and where framework, subject to consultation. further action is needed. Biomass is defined as any material Biomass availability of biological origin, including the biodegradable fraction of products, crops, The UK’s ability to gain access to wastes and residues from biological origin. sustainable feedstocks at sufficient scale It is a versatile resource that can be used in and acceptable prices will ultimately multiple ways across different technologies determine the overall contribution of and is an important component of biomass to net zero. As the biomass many of our pathways to net zero. supply is so diverse, understanding future The Strategy restates the government’s availability is complex and subject to firm commitment to biomass sustainability. significant uncertainties. It reviews the potential future availability of sustainable biomass to the UK and Biomass from domestic sources currently considers how this resource could be make up 66% of the total biomass used prioritised strategically across the economy in renewable energy generation, with the to help achieve the government’s net rest deriving from international sources. zero target, and wider environmental and The illustrative scenarios presented in this energy security commitments. strategy show that both domestic and imported sustainable biomass supply are expected to be important in supporting Biomass sustainability biomass use across the economy. Government has supported the use Government, businesses, and biomass of biomass across the power, heat producers all have a role in introducing and transport sectors since the 2000s interventions that increase the supply embedding world-leading sustainability of biomass and reduce supply costs. criteria within its support schemes. Only Domestic biomass cultivation and biomass use that complies with strict deployment will be considered in the criteria is considered to be low carbon context of the government’s Food Strategy and to deliver genuine CO2 emissions commitment to maintain current levels of savings. Government is minded to take a food production and alongside our legally series of further actions to strengthen the binding Environment Act 2021 targets. UK’s biomass sustainability criteria used in future schemes, to ensure they reflect the most advanced thinking on sustainability. Biomass Strategy | 7 We will continue to monitor the levels transport contribute the most towards of biomass supply to ensure the UK net zero. Emerging bioeconomy products can secure the necessary supply and markets beyond energy will continue for increasing biomass use across to be reviewed. the economy and we will consider interventions to remove barriers to Based on current analysis, the strategy increasing biomass supply if necessary. sets out that biomass uses that can produce negative emissions (i.e., those that capture and store CO2) should be Priority use of biomass prioritised in the long term to support UK’s net zero target. Biomass could still As sustainable biomass is a limited play a role in hard to decarbonise sectors resource and future availability to the UK that may not be able to universally deploy is uncertain, its use should be prioritised BECCS but have limited alternatives. where it offers the greatest environmental, However, relative demand is expected economic and social benefits. to be lower than BECCS usage. New Opportunities for biomass use within each or existing biomass applications should sector should be considered against other therefore consider options and routes low carbon alternatives available to that to deploy BECCS at their facilities in sector. As a result, harder to decarbonise the longer-term. areas, technologies and sectors should be some of the priority uses of biomass. Biomass with carbon capture In the short term (2020s) government will continue to facilitate sustainable biomass and storage deployment through a range of incentives Bioenergy with Carbon Capture and and requirements covering power, heat Storage (BECCS) is an engineered and transport. Greenhouse Gas Removal (GGR) technology that captures and stores In the medium term (to 2035) government CO2 from biomass while producing low intends to further develop biomass uses carbon energy, including electricity, heat, in power, heat and transport sectors hydrogen and biofuels. to support the delivery of Carbon Budget 6, with a view to transition Alongside the Strategy, the government is away from unabated emission uses of publishing a report led by the Department biomass where possible to uses such for Energy Security and Net Zero Chief as Bioenergy with Carbon Capture and Scientific Adviser’s Task and Finish Storage (BECCS), which are critical to Group which sought to establish an meeting net zero, as they are needed evidence-based position on the validity to balance the residual emissions from of BECCS as a GGR option to deliver hard‑to‑decarbonise sectors. negative emissions. Biomass use in the long term (to 2050) is The report sets out how “well regulated” difficult to predict owing to wide ranging BECCS can achieve its objective to uncertainties and evidence gaps. Current deliver negative emissions and ensure modelling indicates that biomass use positive outcomes for people, the combined with BECCS for power, heat and environment, and the climate. 8 | Biomass Strategy Although BECCS is not currently operating the variability of other renewables. at scale in the UK, the technology The role of biomass electricity is being is operating elsewhere globally in explored in the Review of Electricity Market demonstration plants and at commercial Arrangements (REMA). scale. The deployment of BECCS will come via several possible routes, Biomethane will continue to play an each of which are at various stages of important role in optimising the path to technology readiness. net zero and increasing energy security; it can support decarbonising a number of There is active work ongoing in sectors such as heat, transport and power, government to support BECCS, including and the anaerobic digestion (AD) process development of several business models is recognised as a recycling activity, to support it. creating a more circular economy. As part of this, we are taking a holistic approach to identify the barriers to the growth of the Biomass uses across biomethane market and understand how the economy best to address these. Biomass for renewable electricity Biomass will likely have a role in heating generation has played a significant role in in certain properties such as off-gas grid decarbonising our power sector. Biomass homes that are not readily suitable for heat electricity and power BECCS could provide pumps, and where appropriate mitigations either dispatchable or baseload power, can be set in place to minimise air quality offering valuable flexibility to complement impacts. The government is considering a range of options to decarbonise these types of properties. Low carbon transport fuels include liquid and gaseous fuels produced from biomass. They play an important role in the decarbonisation of the transport sector, replacing the use of fossil fuels. Today we see their use in road vehicles, but as zero tailpipe emission technologies become commonplace their role will increasingly shift to transport modes with limited alternatives to the use of liquid and gaseous fuels, such as aviation and maritime. DfT will publish a Low Carbon Fuels Strategy which will set out how the deployment of low carbon fuels, including biofuels, may evolve in the period to 2050 across different transport modes. Industrial decarbonisation – We are working to enable industry to meet the ambition of replacing 50TWh of fossil Biomass Strategy | 9 fuels with renewable energy sources by 2035. Biomass use in industry should be prioritised in combination with CCUS. In the absence of viable BECCS infrastructure, we will continue to support biomass use in industry where limited low carbon alternatives are available. Biomass can be used directly as a feedstock for low carbon hydrogen through reformation, gasification, or pyrolysis technologies, and if carbon capture and storage is added this can provide negative emissions. The UK is committed to supporting multiple production routes to hydrogen. Other uses of biomass – there is an increased interest globally and in the UK in the concept of the bioeconomy. The bioeconomy includes both energy uses and non-energy uses of biomass, such as wood-based products (e.g., timber, wood panels, etc), biochar, and bio-chemicals and biomaterials (bioplastics). Government will work with international and industry partners to better understand how the bio-based chemicals and materials sectors can form part of the long term priority use of biomass. 1 Introduction – Biomass for net zero Biomass Strategy | 11 Biomass production and use in the UK today When produced sustainably, biomass is a While the UK does produce around 66% renewable, low carbon energy source and of its biomass supply,1 some is imported to material. This is because its inherent energy the UK either as a final fuel, or as a raw or comes from the sun, it absorbs carbon processed feedstock. dioxide (CO2) as it grows, and it can be used to directly displace fossil fuels such as Sustainable biomass is a versatile, low oil, coal, and natural gas, for the production carbon material that can be used as a low of energy or other products. Biomass can carbon alternative to fossil fuels for energy regrow in a relatively short time, unlike (heat, power, transport fuels), including as fossil fuels; and the carbon that is released an energy source for industrial processes from the organic material was sequestered or as a raw material used to make products recently from the atmosphere, compared (such as bio-based plastics and materials to fossil fuels where the carbon was from foundational industries). Biomass has sequestered hundreds of millions of years played a prominent role in decarbonising ago. Many biomass feedstocks are wastes the power, heat, and transport sectors. The or residues that would be combusted or latest energy statistics (2022) estimate that left to decompose, so it is more efficient to bioenergy provided 8.6% of the UK’s energy use that material and displace expensive, supply,2 most of which was supported by volatile fossil fuels in the process. government. Not only does biomass offer a decarbonisation tool to various sectors in Biomass covers a broad and varied range the UK, but it can also provide skilled jobs, of materials, and the current resource boost the economy, and provide a route to supply is diverse. We define biomass as utilise some of the resources the UK has, any material of biological origin (including or has access to, which are often low value biodegradable fraction of products, wastes and problematic to dispose of. and residues from biological origin). Biomass feedstocks considered in this The use of biomass in the power, heat Strategy include purpose-grown biomass, and transport sectors has largely been biomass co-products, residual biomass, supported by policies aimed at achieving and biogenic waste, from both domestic renewable energy targets since the 2000s. and imported sources. Purpose-grown These have been successful in establishing crops are mainly conventional food and the industries, infrastructure, and the supply feed crops, but they can also include chains, and have helped reduce the UK’s perennial energy crops (Miscanthus and reliance on fossil fuels. However, the current short-rotation coppice (SRC)), and short- policy landscape is undergoing changes rotation forestry (SRF). Co-products and considering the net zero target, of which residues include those from the agricultural biomass is expected to make a significant and forest sectors. Biogenic wastes include contribution. This strategy sets out the those from the agricultural, commercial, objectives and priorities that should govern industrial, and municipal sectors. the use of biomass in line with this target. 1 DUKES 2023 renewable sources of energy: https://www.gov.uk/government/statistics/renewable- sources-of-energy-chapter-6-digest-of-united-kingdom-energy-statistics-dukes Table 6.1. 2 DUKES 2023: https://www.gov.uk/government/statistics/energy-chapter-1-digest-of-united-kingdom- energy-statistics-dukes Table 1.1. 12 | Biomass Strategy Policy context In this context, Bioenergy with Carbon Capture and Storage (BECCS) will be The 2012 Bioenergy Strategy introduced a major route for delivering engineered a set of principles for future government GGRs, as it combines the use of policies on bioenergy. It specified biomass to provide low carbon energy that bioenergy should deliver genuine and products with carbon capture and greenhouse gas (GHG) reductions, should storage. This means the CO2 contained make a cost-effective contribution to within the biomass, which was removed UK GHG emission objectives, and any from the atmosphere during plant increased production should consider the growth, is captured and placed into impact on food security and biodiversity, long term storage. amongst others. These principles remain central to government’s approach to The Net Zero Strategy presented biomass, though it must be built upon illustrative scenarios for achieving net zero. to ensure that biomass makes the best Within these, biomass use is scaled up possible contribution to delivering net zero. considerably from today’s level, largely as a result of BECCS development, particularly More recently, the Net Zero Strategy: hydrogen BECCS. As negative emissions Building Back Greener3 set out that the are key for delivering net zero, we expect UK needs to continue to move away from biomass use in BECCS to increase in fossil fuels and expand the production of the future as these new technologies innovative low carbon fuels, reduce the deploy over time. demand for energy and carbon-intensive resources, and increase our resource use Almost all biomass uses could deploy efficiency. Biomass has a role to play in some level of BECCS if optimally sited all these areas. or used at an appropriate scale. Carbon capture and storage (CCS) technology has The Net Zero Strategy also identified been operating safely in locations around that Greenhouse Gas Removal (GGR) the world since the 1970s. There is active technologies (including Bioenergy government work taking place to develop with Carbon Capture and Storage) will business models to support various routes be essential, as they are required to of BECCS, as well as commitments made balance the residual emissions from to deploy carbon capture usage and hard‑to‑decarbonise sectors while storage (CCUS) infrastructure. providing new economic opportunities. A diverse mix of GGR technologies will be required to meet our targets, reduce reliance on any single technology, and deliver a resilient negative emissions market that can support decarbonisation at the lowest cost while maximising the benefits to the UK economy. 3 https://www.gov.uk/government/publications/net-zero-strategy Biomass Strategy | 13 Alignment between Strategies securing the economic benefits of the energy transition, including through Biomass production and use spans many major investment in Carbon Capture sectors of the economy; it features in Utilisation and Storage (CCUS). It also various government strategies including set out that increasing volumes of more recently: domestically produced biomethane will be injected into the gas grid through the • The recently published Powering Green Gas Support Scheme (GGSS) Up Britain: Net Zero Growth Plan4 which will reduce carbon emissions, (2023) reiterated the Net Zero decrease reliance on natural gas and Strategy (2021) ambition to deploy at provide diversity in gas supply. least 5 MtCO2/yr of engineered GGRs by 2030, which could potentially rise to • The Jet Zero Strategy7 (2022), sets 23 MtCO2/yr by 2035. It also restated out the government’s plan for achieving the government’s ambition to achieve net zero aviation by 2050, through rapid 50 TWh of industrial fuel switching to technology development. The Strategy low carbon fuels by 2035. We expect sets out a multi-measures approach this primarily to be reached via and includes ambitious targets of net switching from fossil fuels to electricity zero domestic UK aviation and zero and hydrogen, though bioenergy could emission airport operations in England enable additional carbon savings. by 2040. The government has also committed to having at least five UK • The 2030 Strategic Framework SAF plants under construction by for International Climate and 2025, supported by the £165 million Nature Action5 (2023) set out a Advanced Fuels Fund, and to introduce high-level framework to guide the a SAF mandate targeting at least UK’s international climate and nature 10% SAF in the UK aviation fuel mix policy through to 2030 taking an by 2030. A second consultation on integrated approach to climate the mandate’s design and options (including mitigation, adaptation and for setting targets beyond 2030 was resilience) and nature. published in March 2023. • The Powering up Britain – Energy • The British Energy Security Strategy8 Security Plan6 (2023) outlined how (2022) set out an ambition to deliver the government plans to secure our up to 10GW of low carbon hydrogen energy system by ensuring a resilient production capacity by 2030, subject to and reliable supply, increase our affordability and value for money. energy efficiency, and bring bills down through decisive actions to increase Britain’s low carbon domestic electricity supply. It continues UK leadership in 4 https://www.gov.uk/government/publications/powering-up-britain/powering-up-britain-net-zero- growth-plan 5 https://www.gov.uk/government/publications/2030-strategic-framework-for-international-climate- and-nature-action 6 https://www.gov.uk/government/publications/powering-up-britain 7 https://www.gov.uk/government/publications/jet-zero-strategy-delivering-net-zero-aviation-by-2050 8 https://www.gov.uk/government/publications/british-energy-security-strategy 14 | Biomass Strategy • The UK Hydrogen strategy9 (2021) • The forthcoming Low Carbon Fuels highlighted that low carbon hydrogen Strategy (due 2023) will set out how is a critical component of our strategy low carbon fuels, including biofuels, to deliver energy security, drive could be deployed across transport economic growth and support net zero. modes in the period to 2050. It follows It has the potential to help to bring on from the Net Zero Strategy and the down emissions in vital UK industrial earlier Transport Decarbonisation Plan sectors and provide flexible energy which set out plans for the transport for power, heat, and transport. To sector to achieve net zero, including reach the scale and cost reductions through use of low carbon fuels required to help deliver net zero, we are such as biofuels. supporting multiple production routes, • The England Trees Action Plan12 including via biomass. (2021) set out ambitious tree planting • The Industrial Decarbonisation aspirations, highlighted the importance Strategy10 (2021) acknowledges that of forestry in the green economy and low carbon technologies required for recognised the need to develop the decarbonising industries are at different evidence base for woodland and tree stages of development. The Strategy cover expansion, including species outlines a comprehensive approach to choice for short rotation forestry. support the deployment of low carbon technologies, drive innovation, and The devolved administrations have also ensure the long term competitiveness published several strategies and plans of industries while transitioning towards where production and use of biomass in a net-zero future. individual sectors is reflected. References to these have been made where relevant • The Heat and Buildings Strategy11 in the Strategy. (2021) set out how the UK will decarbonise its homes, and commercial, These strategies outlined how individual industrial and public sector buildings, sectors are expected to contribute to as part of setting a path to net zero climate mitigation and adaptation, with by 2050. This considered the role all touching on either the production or that bioenergy can play in helping to use of biomass. Therefore, the Biomass decarbonise the sector. It recognised Strategy is an opportunity to bring these that increased production of biomethane strategies across all areas of government would be needed to decarbonise the gas together and provide an overview of the grid, as well as how bioenergy can be prioritisation of biomass use, and updated used in decarbonising difficult-to-treat information on the availability of sustainable properties off the gas grid. The strategy biomass to the UK. also acknowledged the need to ensure that environmental standards are not adversely affected (e.g., air quality and feedstock sustainability). 9 https://www.gov.uk/government/publications/uk-hydrogen-strategy 10 https://www.gov.uk/government/publications/industrial-decarbonisation-strategy 11 https://www.gov.uk/government/publications/heat-and-buildings-strategy 12 https://www.gov.uk/government/publications/england-trees-action-plan-2021-to-2024 Biomass Strategy | 15 Public engagement under which biomass sourcing, use and production can be proven as a sustainable Alongside this Strategy we have published energy source; and information on the summary of the Biomass Strategy how biomass use may influence daily Call for Evidence,13 where government lives. Chapters 2 and 5 reflect on these sought the public’s view on the role of conditions and how they are applied to biomass in achieving net zero. The Call for the sustainability criteria review and priority Evidence received 144 unique responses use assessment. The full Public Dialogue from a range of sectors, covering biomass on the Role of Biomass in Achieving Net users, suppliers, trade associations, utility Zero: Final Report’ is published alongside companies, academics and non-profit this Strategy.14 organisations. It overall highlighted the diverse and often opposing views on the use and sustainability of biomass, and Biomass in Scotland, Wales we have used the information gathered and Northern Ireland through this, and through focused industry stakeholder engagement sessions, to The Biomass Strategy takes a cross- inform the Strategy. cutting approach to delivering a comprehensive view on biomass for net To understand the views of the wider zero across the UK and might therefore public, a Biomass Public Dialogue Project touch on policy areas that are devolved. was commissioned in April 2022 to engage All parts of the UK have a significant role a diverse group of participants, broadly to play in delivering net zero, and the reflective of the UK public, on the sources devolved administrations have a range of and uses of biomass. Views gathered plans and policies in place to reach their from this project have helped to inform this own targets and contribute to the UK’s Biomass Strategy, and learnings from the net zero target: project have been reflected throughout this document. • In 2021, the Welsh Government published its Net Zero Wales plan, Participants heard a range of perspectives which focuses on Carbon Budget 2 and whilst most participants thought (2021-2025) and sets out the pathway biomass should play a role in achieving net to net zero by 2050.15 The plan noted zero, views were varied on how large a role that during Carbon Budget 2, there is it should play due to concerns about the a need to clarify the role of biomass in potential environmental impact. reaching net zero. Participants remained sceptical about • The Northern Ireland Assembly passed the concept of ‘sustainable biomass’ and NI’s first Climate Change Act in 2022.16 were initially ambivalent about the role of The Act contains a commitment for BECCS in achieving net zero. Participants NI to achieve net zero emissions by wanted more information on the conditions 2050. To do this, a Climate Action 13 https://www.gov.uk/government/consultations/role-of-biomass-in-achieving-net-zero-call-for-evidence 14 https://www.gov.uk/government/publications/biomass-strategy 15 https://www.gov.wales/net-zero-wales-carbon-budget-2-2021-2025 16 https://www.legislation.gov.uk/nia/2022/31/contents/enacted 16 | Biomass Strategy Plan is being developed which will to consider the biomass priority use be the delivery vehicle for NI’s first assessment, they are not bound to take carbon budget. it into account when considering the • Scotland’s climate change legislation development of policies that are within sets a target date for net zero their competence. emissions of all greenhouse gases by 2045.17 The Scottish Government’s Draft Energy Strategy and Just Principles of biomass use Transition Plan (published January The Biomass Strategy Policy Statement19 2023) set out their aim to see bioenergy outlined the government’s strategic view used only where it can best support on the priorities for biomass use across the Scotland’s journey towards net zero.18 UK economy in the medium- to long term. It also states that decisions over use of It included a series of guiding principles bioenergy should also align with and to inform the priority uses of biomass, support Scotland’s goals for protecting developed through consultation with and restoring nature. stakeholders. The principles include: We will continue to work with the devolved • Sustainability, which focuses on administrations as we develop the policies ensuring that biomass used in the UK and proposals set out in the Strategy to is sustainable and is in line with our support research and innovation, and the climate and environmental goals. deployment of biomass technologies and biomass production. • Air quality, aimed at minimising any public health impacts from the In the Strategy, we commit to consult use of biomass. on the detail and actions required to • Net zero, to ensure that biomass implement a cross sectoral sustainability uses contributes towards the UK’s framework. Some of the proposals in the net zero target. consultation may fall within an area of devolved responsibility in Scotland, Wales • Circular economy & resource and/or Northern Ireland and this would limit efficiency, to ensure that these wider the extent to which these proposals could benefits from biomass use to the be implemented, subject to agreement. UK economy are realised wherever We will continue to work with the possible, in line with government goals. devolved administrations as we develop This Strategy built on these principles the consultation. and presents a priority use assessment We also recognise that some policies that reflects on the best use of biomass related to biomass use may fall within an to support the UK’s net zero target. area of devolved responsibility in Scotland, This assessment includes analysis of the Wales and/or Northern Ireland. While we current biomass use landscape (short would encourage devolved administrations term view), analysis of the role of biomass 17 https://www.legislation.gov.uk/asp/2019/15/contents/enacted 18 https://www.gov.scot/publications/draft-energy-strategy-transition-plan/pages/0 19 https://www.gov.uk/government/publications/biomass-policy-statement-a-strategic-view-on-the-role- of-sustainable-biomass-for-net-zero Biomass Strategy | 17 to meet Carbon Budget 6 (medium term innovation funding for BECCS and the view) and a series of illustrative scenarios recent Department for Energy Security and to outline the potential role of biomass for Net Zero Chief Scientific Advisor’s Task net zero (long term view). As part of this and Finish Group report on BECCS. It also assessment, we also considered the wider includes information on the potential of strategic context around energy security biochar to deliver greenhouse gas removals. and economic growth. Chapter 7 provides details on sector- specific policy plans and action to Structure of this document support biomass use in the short, medium and longer-terms. It is split to cover the Chapter 2 focuses on biomass main policy areas in government, and sustainability criteria that are in operation includes electricity, biomethane and in the UK across various biomass support greening the gas grid, biomass with schemes. It provides an overview of the combined heat and power, transport, work done and proposals to develop industry, low carbon hydrogen production and implement a cross-sectoral biomass and non-energy uses of biomass. sustainability framework, subject to consultation. Alongside this strategy we are also publishing: Chapter 3 discusses the impacts of biomass use on air quality and the • Public Dialogue on the Role of regulatory requirements on biomass. Biomass in Achieving Net Zero: Final It also details related policy development Report – a summary of a project to and research and development projects. engage a diverse group of participants, broadly reflective of the UK public, on Chapter 4 provides an assessment of the the sources and uses of biomass. amounts of sustainable biomass that is • Task and Finish Group Report: used in the UK now and could potentially The ability for BECCS to generate be available in the future. It presents some negative emissions – a report led by illustrative biomass availability scenarios the Department for Energy Security and provides an overview of the innovation and Net Zero Chief Scientific Adviser’s opportunities for scaling up domestic Task and Finish Group which sought to biomass supply. establish an evidenced based position Chapter 5 sets out a priority use on the validity of BECCS as a GGR assessment that informs the best use of option to deliver negative emissions. biomass resources across the UK economy • Analysis of Responses to the Call in the short (2020s), medium (2035) and for Evidence for Biomass Strategy long term (2050) towards our net zero on the Role of Biomass in Achieving target, based on our existing evidence base. Net Zero – a summary report on the analysis of the responses to Chapter 6 focuses on Bioenergy with the 2021 Call for Evidence, which Carbon Capture and Storage. Including sought information and evidence from a review of the role of BECCS in meeting stakeholders on how sustainable net zero, and an overview of the BECCS biomass should be sourced and used technology landscape. It reviews the latest to best support our net zero target. 2 Biomass Sustainability: ensuring sustainable biomass use across the economy Biomass Strategy | 19 Our Key Commitments • To develop and implement a cross-sectoral sustainability framework, subject to consultation. • We will consult on the detail and actions required to implement such a cross‑sectoral sustainability framework. • We will set out next steps, based on the consultation, for implementing a common sustainability framework in the government response. Sustainable biomass is a versatile low place in government support schemes to carbon resource that is needed to meet ensure biomass genuinely contributes to the UK’s net zero target, helping to the UK’s decarbonisation efforts. We only displace the use of fossil fuels in hard- consider biomass that complies with these to-decarbonise parts of the economy criteria to be low carbon and to deliver and by delivering negative emissions. genuine GHG emission savings. The biomass sustainability criteria also cover Government is clear that the main wider aspects of sustainability, including principle for biomass use is sustainability. environmental and social impacts, which Sustainable biomass can be derived ensure that biomass use is in line with the from a range of sources: from purpose- UK’s climate and environmental goals. grown crops to wastes and residues Our ambition is to remain at the forefront of other products and activities. The of sustainability across the bioeconomy, decarbonisation potential of biomass goes strengthening our already strict criteria beyond the displacement of fossil fuels and where required to ensure consistency needs to be considered as part of a wider across the bioeconomy and to continue system of sustainable land and resource delivering genuine GHG savings and in use. This will need to take account of the future, deliver negative emissions. natural capital and ecosystems services potential of land used for biomass as This chapter focuses on the current well as wider social and food security sustainability criteria and regulatory considerations. The Intergovernmental landscape of biomass use in the UK, Panel on Climate Change (IPCC) in their and how these criteria and governance most recent reports20 have outlined that mechanisms may be strengthened in bioenergy and Bioenergy with Carbon the future. We set out the analyses and Capture and Storage (BECCS) can stakeholder engagement conducted contribute towards our global climate to understand where there may be goals; but only if the biomass is from opportunities to strengthen requirements sustainable sources. to ensure our sustainability criteria for biomass remain globally leading We already have stringent and globally and aligned to the most up-to-date leading biomass sustainability criteria in scientific evidence. 20 https://www.ipcc.ch/report/ar6/wg3 20 | Biomass Strategy

2.1 Biomass sustainability requirements in the UK today To ensure biomass use delivers its role The sustainability criteria in the in the UK’s decarbonisation goals, the sector‑specific schemes contain a UK has already set mandatory stringent range of requirements under ‘Land’ sustainability criteria in the power, heat and ‘Greenhouse Gas (GHG)’ criteria and transport sectors. (Figure 2.1: Summary of Land and Greenhouse Gas Criteria across the Meeting these criteria are the gateway UK Biomass Sustainability criteria). to market or government support mechanisms. The criteria relate to The Land criteria stipulate that all feedstocks environmental, social, and economic should be legally sourced according to the conditions which are used to distinguish laws in the country of harvest. They also set between desirable and undesirable requirements for sustainable harvesting that forms of biomass. account for protection for biodiversity and highly biodiverse areas, high carbon stock The current biomass sustainability criteria lands such as wetlands and peatlands, are defined in sector-specific legislation, nature conservation, endangered species, such as the Renewable Obligation ecosystem services such as soil, water and Order (RO),21 Renewable Heat Incentive air quality. They also cover land rights that (RHI),22 Green Gas Support Scheme span the traditional, legal or customary land (GGSS),23 Renewable Transport Fuel rights of local communities; labour rights Obligation (RTFO),24 UK Emissions cover health and safety of workers, right to Trading scheme (UKETS),25 and private collective action, training, minimum age of law contracts within the Contracts for work, and dispute mechanisms. Difference scheme (CfD),26 and in the Low Carbon Hydrogen Standard27 (LCHS) for The GHG criteria require life cycle GHG hydrogen producers. The criteria set out emissions associated with biomass for each scheme contain broadly similar use (including production, cultivation, overarching criteria but vary in their exact harvesting or collection, transportation, requirements as set out below. In all and processing) are included in emission schemes, support payments are subject calculations. Operators must meet set to compliance with the criteria set out thresholds (which tighten over time) to in the scheme. ensure a minimum GHG saving is achieved against a fossil fuel reference. 21 Renewables Obligation Order: https://www.legislation.gov.uk/uksi/2015/1947/contents 22 Renewable Heat Initiative: https://www.legislation.gov.uk/uksi/2018/611/contents 23 Green Gas Support Scheme: https://www.legislation.gov.uk/uksi/2021/1335/contents 24 Renewable Transport Fuel Obligation: https://www.legislation.gov.uk/uksi/2007/3072/contents 25 UK Emissions trading scheme: https://www.legislation.gov.uk/uksi/2020/1265/contents 26 Contracts for Difference: https://www.gov.uk/government/publications/contracts-for-difference/ contract-for-difference 27 Low Carbon Hydrogen Standard: https://www.gov.uk/government/publications/uk-low-carbon- hydrogen-standard-emissions-reporting-and-sustainability-criteria Biomass Strategy | 21 The different government support schemes (food and feed) crops in order to respond are operated separately and have well- to concerns over direct competition established arrangements for updating with food markets and avoid indirectly their sustainability criteria. As a result, distorting existing markets that could they have diverged from each other to result in direct or indirect land use change. respond to particular sustainability issues. This also prevents negative impacts on For example, the RTFO and GGSS have food security and on the final GHG savings introduced limits on the use of arable biomass provides. Land criteria Maintaining carbon Sustainable stock of sourcing area and legal and protecting high harvesting carbon stocks Protections for Land and biodiversity, labour rights ecosystem services Greenhouse gas criteria Greenhouse gas Emission emissions from whole threshold gets life cycle stricter over time Must meet a set carbon threshold and emissions savings compared to fossil fuel Figure 2.1: Summary of Land and Greenhouse Gas Criteria across the UK biomass sustainability criteria 22 | Biomass Strategy A detailed comparison between the • Crop Cap: The RTFO currently has a schemes can be found in Table 2.1, crop cap which is decreasing annually however, the main differences between from 4% in 2020 to 2% in 2032. the schemes are: • Waste use (as per waste categories • Indirect Land use change: The RTFO defined in scheme legislation): and LCHS have provisions for Indirect GGSS has a minimum waste use Land Use Change (ILUC) reporting. threshold of 50%. The RTFO rewards twice the amount of Renewable • GHG thresholds: There are differences Transport Fuel Certificates (RTFCs) per in the emission thresholds applied litre to biofuels derived from certain across the schemes, with the lowest, wastes and residues. 8 gCO2e/MJ, within CfD Allocation Round 4, and subsequent rounds. Biomass Strategy | 23 24 | Biomass Strategy Table 2.1 Summary of existing UK biomass sustainability criteria28 Sector Transport Energy Renewable Transport Fuel Obligation Scheme (RTFO) Renewables Obligation Order (RO) Criteria Land Use Indirect Land Use Change (ILUC) DLUC included. factors added for crop-based biofuels, and Direct Land Use Change (DLUC) included in criteria. GHG Installations before 5th Oct 2015 must Bioliquids: 60% emissions savings for emission achieve 55% GHG saving, after that date installations post-2015, 50% emissions target 65% GHG saving, relative to a fossil fuel saving for pre 2015 installations. comparator of 94 gCO2e/MJ. Solid and gaseous: post 2013 dedicated biomass station threshold is 66.7 gCO2e/ MJ, from April 2020 the threshold is 55.6 g CO2e/MJ, from 2025 it is 50 gCO2e/MJ. Ecosystem No legal requirements but the sustainable Ecosystem health, vitality and productivity Services land use standard mentions water quality, need to be maintained as per Timber air quality, and preservation of natural Standard for Heat & Electricity. landscape. Biodiversity Adhere to national regulations, no Protection for biodiverse areas as per sourcing from highly biodiverse areas. Timber Standard for Heat & Electricity. No sourcing from highly biodiverse areas. Protection No sourcing from high carbon stock areas. No sourcing from high carbon stock areas. of carbon Source from permitted sourcing only. Source from permitted sourcing only. stocks Soil carbon criteria require management of carbon stocks where agricultural residues are used to make biofuels. Crop Cap For 2023, 3.50% (the cap decreases No. threshold annually from 4% in 2020 to 2% in 2032). 28 The UK ETS has its own sustainability criteria; further information is available in the government response to the consultation on Developing the UK Emissions Trading Scheme: https://www.gov.uk/government/ consultations/developing-the-uk-emissions-trading-scheme-uk-ets Biomass Strategy | 25 Heat Energy Heat Hydrogen Low Carbon Renewable Heat Contracts for Green Gas Support Hydrogen Standard Initiative (RHI) Difference (CfD) Scheme (GGSS) (LCHS) DLUC included. DLUC included. DLUC included. ILUC factors reported on for crop derived hydrogen, DLUC included. Biomass fuel at least April 2020-21 March Life cycle GHG GHG emissions to the 60% emissions savings. 2035 55.6 gCO2e/MJ. emissions criteria for point of production biomethane produced: (‘cradle-to-gate’): Emissions limit is April 2025 to end of less than or equal to less than or equal to ≤34.8g CO2e/MJ. term 50 gCO2e/MJ. 24g of CO2e/MJ. 20 gCO2e/MJ LHV hydrogen. From 2021 8 gCO2e/ MJ. Ecosystem health, Land criteria set Land criteria includes Aligned to RTFO. vitality and productivity out maintenance of regulations related to need to be maintained productivity, biodiversity, ecosystem protection as per Timber Standard soil and water and maintenance. for Heat & Electricity. impacts as per Forest Europe criteria. Protection for biodiverse Protections as Protection for biodiverse Aligned to RTFO. areas as per Timber per Forest Europe areas as per Timber Standard for Heat & Sustainability criteria. Standard for Heat & Electricity. No sourcing Electricity. No sourcing from highly biodiverse from highly biodiverse areas. areas. No sourcing from high No sourcing from high No sourcing from high Aligned to RTFO. carbon stock areas. carbon stock areas. carbon stock areas. Source from permitted Source from permitted Source from permitted sourcing only. sourcing only. sourcing only. No. No. No. No. 26 | Biomass Strategy Sector Transport Energy Renewable Transport Fuel Obligation Scheme (RTFO) Renewables Obligation Order (RO) Criteria Waste Use No, but the use of wastes and residues No. threshold is incentivised by awarding of additional certificates. Legal Legal sourcing: Forest criteria requires all 100% legally sourced. Adherence to sourcing forest biomass is legally harvested. national regulations in country of harvest. Social No legal requirements but sustainable Criteria require adherence to national criteria: land use standard includes adherence to regulations in country of harvest. Workers national regulations in country of harvest. rights, Land rights Biomass Strategy | 27 Heat Energy Heat Hydrogen Low Carbon Renewable Heat Contracts for Green Gas Support Hydrogen Standard Initiative (RHI) Difference (CfD) Scheme (GGSS) (LCHS) For Non-Domestic No. Minimum of 50% of Aligned to RTFO. Renewable Heat biogas yield (by energy Incentive (NDRHI) only content) must be minimum of 50% of produced using waste biogas yield (by energy or residue feedstock. content) must be produced using waste or residue feedstock. 100% legally sourced. 100% legally sourced. 100% legally sourced. Aligned to RTFO. Adherence to national Adherence to national Adherence to national regulations in country regulations in country regulations in country of harvest. of harvest. of harvest. Criteria require Criteria require Criteria require Aligned to RTFO. adherence to national adherence to national adherence to national regulations in country regulations in country regulations in country of harvest. of harvest. of harvest. 28 | Biomass Strategy

2.2 Biomass governance structures and requirements in the UK today As only sustainable biomass is 1 Office of Gas and considered low carbon, governance Electricity Markets (Ofgem): mechanisms are crucial to ensuring Regulating RO, RHI, GGSS our sustainability criteria reduce and 2 Low Carbon Contracts Company mitigate any risks or impacts associated (LCCC): administers CfD, with with biomass production or use. technical oversight from Ofgem. To ensure compliance with sustainability 3 RTFO Unit: An in-house unit within criteria (summarised in Section 2.1) and the Department for Transport (DfT) regulate biomass use, the UK has robust which regulates the RTFO. multi-tiered governance structures in place. 4 UK ETS Authority: The governing body for the UK Emissions Trading Scheme, consisting of Biomass support schemes the UK Government, Scottish regulatory frameworks Government, Welsh Government and the Department of Agriculture, Governance bodies Environment and Rural Affairs for The UK regulatory framework utilises the Northern Ireland (DAERA). sector-specific support scheme structures Operators must demonstrate compliance for biomass with sector-specific regulatory with the relevant sustainability criteria to bodies in place (Figure 2.2). Four main the relevant regulator or administrator to bodies are involved in the sector-specific receive financial payments. The regulators regulatory processes: require evidence collected to be independently audited to ensure accurate and verified information is supplied. Biomass Strategy | 29 Sustainability criteria in place within Data collection Regulator/ government schemes process Administrator Renewables Obligation (RO) OFGEM Renewables Heat Initiative (RHI) Green Gas Voluntary Support Schemes Scheme or (GGSS) Bespoke Evidence Collection LCCC Contracts for Difference Renewable Transport Fuel RFTO Unit Obligation (RTFO) UK ETS UK ETS Authority Figure 2.2: Summary of UK biomass regulatory framework for sector‑specific schemes within the power, heat and transport sectors, and UK ETS Compliance process Although the compliance requirements 1 By using recognised third-party vary slightly across schemes (See Annex Voluntary Certification Schemes: A), the existing sustainability governance UK biomass support schemes allow structure allows compliance to be the use of approved third-party demonstrated to regulators via multiple voluntary certification schemes evidence collection pathways: 30 | Biomass Strategy to demonstrate compliance.29 3 Collecting bespoke evidence: The approved certification schemes Generators can also collect bespoke are benchmarked by the government evidence from the wider regulatory against the UK’s biomass sustainability landscape (e.g., via permitting criteria. Certification schemes regulations) to demonstrate have their own internal auditing compliance to the regulator through processes which are conducted by self-reporting against the sustainability an independent third party to verify criteria of the appropriate government the certification and associated support scheme. evidence. The existence of this third- party auditing is a requirement for All support schemes require using voluntary certification schemes participants to demonstrate they to demonstrate compliance with the meet the GHG criteria by using the sustainability criteria. As biomass respective scheme’s GHG emission sustainability criteria evolve, the calculation methodologies and certification schemes themselves must reporting processes. For the Land evolve too to provide the necessary criteria, participants can demonstrate evidence and confidence that the compliance using the allowed options criteria are being met. within the scheme in question. Regulators require that data submitted 2 By using approved suppliers: as part of the compliance process be Generators can show they are sourcing independently audited and verified sustainable feedstock to the regulator by an independent third party which by using an approved supplier, e.g., provides assurance to regulators that RHI Biomass Suppliers List (BSL).30 the criteria have been met. Suppliers on the BSL are audited in accordance with RHI regulations covering, for example, fuel quality and Other domestic regulatory sustainability criteria facing suspension from the BSL should they fail to meet frameworks the strict requirements. The BSL Depending on supply chain and administrator is required under the application, some biomass will need terms of the contract to provide to comply with UK environmental, regular updates to the Department for planning and waste regulations outside Energy Security and Net Zero of their of the specific sustainability criteria performance against contract Key associated with the government support Performance Indicators (KPIs). scheme. The main interactions will be 29 Guidance on the use of approved third-part voluntary certification schemes is available: a) RTFO recognised voluntary schemes: https://www.gov.uk/government/publications/renewable- transport-fuel-obligation-rtfo-voluntary-schemes/rtfo-list-of-recognised-voluntary-schemes b) RHI guidance documents: https://www.ofgem.gov.uk/publications/non-domestic-rhi-main-guidance c) RO guidance documents: https://www.ofgem.gov.uk/environmental-and-social-schemes/ renewables-obligation-ro/applicants/biomass-sustainability d) CfD guidance documents: https://www.lowcarboncontracts.uk/publications/lccc-sustainability- criteria-guidance e) GGSS guidance documents: https://ofgem.gov.uk/publications/green-gas-support-scheme-guidance 30 RHI Biomass Suppliers List: https://www.gov.uk/find-fuel-supplier Biomass Strategy | 31 with agricultural and forestry policies, • Sustainability criteria are aligned to waste regulations across devolved internationally recognised criteria: administrations, air quality regulations, UK’s stringent sustainability criteria align environmental permitting regulations, with many internationally recognised and planning policies. Details on domestic criteria of biomass sustainability, such regulation interactions with biomass as the Forest Europe Sustainability policies are provided in Annex A and B. Criteria and those set out in the EU’s Renewable Energy Directive (RED). • Use of internationally recognised International sourcing and voluntary certification schemes global governance & best practice: As set out above, the UK support schemes allow International sustainability governance for third-party voluntary schemes. is essential to facilitate the trade of These schemes set out criteria against sustainable biomass and bioproducts which certifying bodies can conduct such as biofuels. Combined with the third-party audits of supply-chain existing strict sustainability criteria and operators to ensure that sustainability strengthening of the criteria over time, we criteria and traceability requirements recognise that policy actions in the UK can are met. These rely on assessing play an important role in driving up best environmental risks within a region and practice internationally. mitigate based on local and national laws in country of harvest, or company The international governance arena policies and/or internationally agreed covering biomass is complex (Figure 2.3), conventions, often whichever may be with a large range of governance at a higher standard. Examples of such mechanisms set in place. The UK already schemes eligible in the UK include the engages in a range of activities through Sustainable Biomass Program (SBP), policy mechanisms, targeted engagement, Forest Stewardship Council (FSC), and international leaderships in relevant Roundtable on Sustainable Palm Oil forums, which have either direct or indirect (RSPO), Roundtable on Sustainable impacts on the sustainability governance Soy, International Sustainability of imported biomass. and Carbon Certification (ISCC), and standard bodies such as the Internationally recognised International Standards Organisation best-practice and certification (ISO) 13065. These certification schemes schemes and standard bodies use The UK sustainability criteria are linked multi-stakeholder structures involving to international governance mechanisms all relevant stakeholders along the through alignment with international supply chain throughout the different biomass related policies, certification stages of the governance process, schemes and best practices. such as criteria development and enforcement. Examples of links between UK’s biomass sustainability requirements and international governance include: 32 | Biomass Strategy Climate change and net zero related international agreements e.g., the Paris Agreement UK’s net zero International International International targets schemes on certification platforms related timber or forestry schemes for to biomass e.g., Forest Europe biomass e.g., Biofutures Sustainable Forest e.g., benchmarked Platform and Management schemes used to Global Bioenergy criteria, WWF show compliance Partnership Timber Scorecard with UK sustainability criteria UK’s climate Domestic Domestic biomas change and regulations for regulations environmental timber or forestry e.g., sustainability regulations e.g., UK Timber criteria in support e.g., environmental Regulations, Felling scheme permitting regime licenses, UK FLEGT Figure 2.3: UK domestic and international sustainability governance mechanisms for imported biomass. The colours of the boxes correspond to 1) Climate and net zero related agreements, platforms or regulations (blue), 2) Biomaterials related platforms, regulations and standards (yellow), and 3) Biomass related platforms, standards and regulations (green). In the international biomass and net and after this it should ideally be prepared zero policy and best practice landscape, for reuse, then recycled as composite there is increased interest in multilateral boards. Throughout the process, wastes organisations and initiatives as well should also be recycled and, where this as in the certification landscape to is not possible diverted to bioenergy follow the circular bioeconomy model.31 or biofuels. For example, feedstock The cascading use of biomass is at the assessments under the RTFO take into heart of the circular economy. This principle account broader diversionary impacts from ensures that resources are re-used use as fuels, ensuring that an additional sequentially in the order of the specific incentive is targeted towards waste resource quality at each stage of the feedstocks that have limited alternative cascade chain. For example, high-grade uses, such as animal feed. This reduces roundwood should first enter the timber the need for additional resource extraction market (e.g., for construction or furniture), and reinforces the Waste Hierarchy. 31 https://www.ieabioenergyreview.org Biomass Strategy | 33 The cascading use principle also Further assessment is needed on how encourages an efficient use of biomass by best to adopt and regulate the cascading providing multiple products and services. use of biomass in the UK, where it is not However, local economic, environmental already applied, to ensure we continue and social factors at sourcing may affect to champion best practices within a the pathways of material use, such as circular bioeconomy. location and access to processing mills or changing market demands. Overall, International platforms and the cascading use of biomass helps organisations focused on maximise the environmental, societal biomass and economic value and benefits of the biomass resource,32 but location-specific The UK has a strong track-record in requirements of biomass sourcing systems international collaboration and coordination must be considered. For example, this of action across science, innovation, mechanism is already in place informally finance, and trade. We support the work within the forestry sector, where forestry of multilateral initiatives and platforms, products are allocated to uses based on such as the Global Bioenergy Partnership quality, value and local economic needs. (GBEP),34 a Commission on Sustainable As stated above, for waste and residues Development Partnership that received its used in fuels production similar principles mandate from the G7 and supported by are also in place. the G20, and the Clean Energy Ministerial (CEM)’s Biofuture Initiative,35 among others. Following on from the 2015 ILUC Directive, which required EU member states to The Biofuture Initiative aims to lead global have due regard to the waste hierarchy action to accelerate development, scale- and cascading principle for biomass in up, and deployment of sustainable bio- relation to biofuels, the EU in March 2023 based alternatives to fossil-based fuels, provisionally agreed to adopt a cascading chemicals, and materials, coordinated use approach within an update to the by the International Energy Agency. It bioenergy sustainability criteria of the promotes developing an evidence-based Renewable Energy Directive;33 the details understanding of sustainable biomass of how this will be implemented are under production, provides a forum for policy development. The UK is committed to dialogue and collaboration among its moving towards a more circular economy: participants, and aims to foster consensus minimising waste, keeping resources on biomass sustainability, availability, in use as long as possible, extracting governance, and biomass use to help maximum value from them and promoting achieve net zero and climate-smart resource efficiency. development goals. 32 https://www.ieabioenergy.com/blog/publications/cascading-of-woody-biomass-definitions-policies- and-effects-on-international-trade-2 33 https://ec.europa.eu/commission/presscorner/detail/en/IP_23_2061 34 https://www.globalbioenergy.org 35 https://biofutureplatform.org 34 | Biomass Strategy The UK plays an important role within the International agreements premier forum for international economic covering climate change and cooperation, the Group of Twenty (G20). environmental protections Biomass is an area of increasing focus for the G20 and has been discussed as The UK has been at the centre of global a priority area in both the Environment efforts to tackle climate change and and Climate Sustainability Working Group transition to a global net zero economy. We (ECSWG) and the Energy Transition continue to drive international collaboration Working Group (ETWG) as part of the G20 and action on areas that will have the process in 2023. The UK is also promoting biggest impact, building on international international collaboration on biomass, agreements and alliances covering climate including on establishing sustainability change and environmental protection such criteria, as part of sector-specific initiatives, as the Paris Agreement, UN’s Sustainable such as the International Civil Aviation Development Goals (SDGs), Glasgow Organization (ICAO) and International leader’s Declaration on Forests and Land Maritime Organization (IMO). Use, and the UN Programme on Reducing Emissions from Deforestation and Forest Degradation (REDD+), among others, to accelerate the global net zero transition.

2.3 Review of existing biomass sustainability criteria As part of our assessment of the biomass Biomass call for evidence sustainability criteria, we held extensive stakeholder engagement via our 2021 Analysis of responses to the Call for Biomass Strategy Call for Evidence36 Evidence highlighted diverse and often and through several workshops. We opposing views and concerns about the collected information about evidence sustainability of biomass. gaps, stakeholder views, needs and concerns from academia, industry, • 38% viewed the existing trade associations, NGO’s, think tanks, sustainability criteria to be and members of the public to support sufficient and robust, and noted policy development in this complex that the criteria had evolved over time policy space. The evidence and views to become more comprehensive. gathered were considered alongside the These responses also highlighted that wider evidence base from existing and stricter criteria or governance could ongoing research. reduce investment and innovation in the bioeconomy. 36 https://www.gov.uk/government/consultations/role-of-biomass-in-achieving-net-zero-call-for- evidence Biomass Strategy | 35 • 38% regarded the existing require a proportional approach to sustainability criteria to be balance commercial sensitivity and insufficient and suggested that non- administrative burdens. Trust in GHG criteria or indicators should be current voluntary certification schemes included in the net zero landscape. appeared low outside of industry, and However, there was a lack of evidence these stakeholders highlighted a need on how the requirements may be to establish an independent regulatory improved in practice. or auditing body. • 24% of responders did not indicate • Carbon life cycle assessments and whether the existing sustainability carbon accounting: Concerns were criteria were robust enough or not. raised about the accuracy of carbon accounting, and whether carbon The main themes highlighted by emissions are accurately reflected stakeholders within the call for evidence in the correct sectors (e.g., whether are summarised below. emissions from land use change can be verified to be accounted for in the • A need for standardisation across Land Use, Land Use Change and sectors. Respondents highlighted Forestry (LULUCF) sector for imported inconsistencies in domestic biomass feedstock). A full LCA accounting monitoring and reporting requirements for temporal and spatial variations and processes across existing in carbon emissions was required government support schemes. Cross- by some stakeholders. The need to sectoral legislation was proposed introduce accounting for negative as a main mechanism for providing emissions in GGR technologies, such consistency. Some responses noted a as BECCS, was also raised. need to improve Life Cycle Assessment (LCA) methodologies to ensure the • Domestic versus Imported full biomass value chain is captured feedstock: Some stakeholders in all schemes. Opinion on the role highlighted a strong preference for of voluntary certification schemes domestic biomass sourcing. This was was divided, with some seeing it as a raised alongside concerns on the useful mechanism to help administer sustainability of forestry operations policy while others expressed a lack overseas, which was perceived by of trust in these schemes citing lack of stakeholders outside of industry to be transparency as a reason. poor. Stakeholders raised potential large-scale felling of highly biodiverse • Monitoring and reporting: Some forests as the main concern. stakeholders raised concerns on the impartiality of existing governance • Sustainability outside of carbon: mechanisms, the lack of data Stakeholders supported a holistic sharing between them, and a lack of approach to sustainability which a standardised LCA methodology. includes carbon and non-carbon Industry stakeholders highlighted criteria, such as biodiversity. Some that existing data collection already stakeholders suggested that current goes beyond the regulatory non-carbon criteria, such as social requirements and that more granular impacts within biomass supply chains, data could be reported but would could be strengthened. 36 | Biomass Strategy • International consensus: We are committed to ensuring biomass Stakeholders highlighted a need to sourcing and use is in line with our align with internationally recognised domestic and global climate and sustainability requirements in place environmental goals. Strict biomass in other regions, such as wider sustainability criteria have been in place Europe, recognising that biomass for over a decade, including protections is a globally traded commodity and for biodiversity and land use (Section users often operate across borders. 2.1). We have set out actions that could Respondents also raised the need be taken to strengthen criteria related to reach international consensus on to woody biomass in Section 2.4. Our biomass sustainability criteria to ensure sustainability criteria for woody biomass transparency across international trade. set out requirements for sustainable forest management practices, which can vary depending on location-specific Biomass sourcing needs and risks. case studies To demonstrate the robust risk-based International sourcing of biomass, forest management practices already particularly of woody biomass, is a main in place within the forestry sector, two area of interest for stakeholders, due to the forestry case studies covering a domestic potential risks associated with the complex timber sourcing region and a US-based supply chains. Stakeholders raised timber and woody biomass sourcing concerns that unsustainable feedstocks region are presented here. These case may be used in operations because of studies demonstrate the importance of the existing minimum 70% threshold expert local understanding of forestry in certain schemes for the portion of systems for the management of healthy woody biomass feedstocks that must be and productive forests, highlighting proven sustainable. differences in local and regional conditions, such as climatic conditions and risks, This minimum 70% sustainable sourcing leading to different choices and actions in threshold for woody biomass derives from forest management practices. the existing Timber Procurement Policy (TPP),37 recognising that forest-derived woody biomass is part of the wider forestry sector, and is applicable within the RO, RHI, GGSS, and CfD. 37 Timber Procurement Policy Framework for Evaluating Category B (Fourth Edition): https://assets. publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/510456/Cat_B_ Framework_4th_Ed_-_Final.pdf Biomass Strategy | 37 Case study: Louisiana and Mississippi Forestry Sector, US Forestry management practices State regulatory bodies in the US in many parts of the US South are oversee air and environmental focused on producing sawlogs for impacts, wildlife, and land lumber mills, which provide the management practices. Extensive main source of income from the targeted help is provided to forests for landowners. Within this landowners, including through Best system, biomass for energy is a Management Practices for water low-grade product in economic quality, and by state forestry agencies terms, produced from wastes and to ensure good management of residues of the conventional forestry forest land. As US private forest land operations. To produce good quality ownership is very high (>80% in both sawlogs, the forest requires careful Louisiana and Mississippi, and 86% management over the lifespan of the across the US South), the objectives stand (25-30 years for the loblolly of the landowners and local market pine stands visited) from planting conditions have a significant impact to harvest. This generally requires on the forestry sector. Through the fertilisation, pest management targeted help provided to landowners, and two rounds of thinning. The the state forestry agencies’ aim is forest landscape is also extensively to ensure forests are well managed, managed to ensure a range of tree and that a healthy market for ages across the landscape (Figure forestry products can provide a 2.4), as well as the presence of a source of income for landowners diverse range of wildlife habitats, such that incentivises keeping forests as streamside management zones as forests. and open areas surrounded by cover (e.g., a young stand next to a mature State and national level regulations on stand). Thinning of trees provides air quality and environmental impacts wildlife benefits by preventing the must be met by forest products mills, closure of the tree canopy; something with a stringent protocol in place for that would have occurred in a natural addressing any issues, and avenues system by periodic wildfires. for engagement with local populations who live close to industrial sites. Sustainable Forestry Cycle New Thinning Stand Management Harvest New Forest Protection Planning Forest Figure 2.4: Sustainable forestry cycle showing the different stages of sustainable forest management 38 | Biomass Strategy Case study: Kielder, UK Kielder is the largest working forest in We also make the felling and England, constituting 60,000 hectares. restocking coupes smaller than when The forest is sustainably managed originally planted which diversifies the for people, nature and economy age and height structure of the forest outcomes. Managed by Forestry creating more windfirm edges. This England, the forest planning process evolution is making the forest more is underpinned by The UK Forestry resilient to pests, diseases, storms Standard (UKFS) and is independently and wider climate change impacts. certified against the UK Woodland Assurance Standard (UKWAS) The forest sustainably produces over supporting Forest Stewardship half a million tonnes of timber every Council (FSC) and Programme for year, providing a valuable resource of Endorsement of Forest Certification home-grown timber and supporting (PEFC) endorsement. strongly the regional economy. The forest also provides home for wildlife Within upland northern Britain tree including our iconic native red stability plays an important part squirrel. Hundreds of thousands of of our management – harvesting visitors visit the forest every year to trees before reaching a height at enjoy activities from mountain biking which the risk of windblow is high is to dark sky star gazing. economically and environmentally significant. Species choice (windfirm species), ground preparation (i.e., not ploughing as this reduces root spread impacting on tree stability), thinning regimes (delayed thinning reduces tree stability) and rotation lengths (not allowing trees to get too tall, which is when they start blowing over) are all strongly influenced by wind exposure. The forest is evolving every year through a 1000 ha annual clear fell and restocking programme. This is the opportunity to plant more Photo of storm damage in Kielder Forest diverse species, create more open following Storm Arwen in November 2021 habitat and more native woodland. © Steve Allen Biomass Strategy | 39 Public engagement through To ensure the sustainability of biomass, participants wanted a mix of organisations the public dialogue project regulating private companies to ensure the The Biomass Public Dialogue Project,38 focus remains on net zero. explored the views of a diverse group of participants about biomass sustainability, biomass feedstock sourcing, and use. Strengths of UK’s Participants heard a range of perspectives sustainability criteria and remained sceptical about the concept and opportunities for of ‘sustainable biomass’ as well as the feasibility of implementing the current improvements criteria. In particular, the emissions created Alongside the review of the existing in the sourcing and production of biomass biomass sustainability landscape were viewed as intuitively unsustainable. and stakeholder engagement, Many participants were sceptical, given recommendations and insights from expert the complexity of international supply reviews, such as the Climate Change chains, that it is possible to ensure that Committee’s (CCC’s) 2018 report on all elements conform to the sustainability biomass,39 and Supergen Bioenergy Hub’s criteria. This was in part driven by people’s review of sustainability criteria,40 among pre-existing views about the difficulty of others, informed our assessment of the regulating supply chains. Participants UK’s biomass sustainability criteria. generally viewed domestic biomass to The CCC’s 2018 report recommended be more sustainable, especially domestic immediate and longer-term actions to waste. In this chapter, there is further strengthen sustainability governance information on the conditions under which at the domestic and international level. biomass sourcing, use and production can These recommendations included be implemented as a sustainable energy encouraging best practice while phasing source to address these concerns of out unsustainable feedstocks, including sustainability. the impacts of carbon stocks in forests Most participants felt the UK’s land and within principles and ruling out sourcing GHG criteria covered the right areas. from areas with falling carbon stocks, and However, when discussing GHG criteria, reviewing ILUC risks and social sustainability participants perceived there were provisions. The CCC also recommended contradictions in the information provided increased transparency in monitoring by different specialists on the point of and reporting, and a need for strategic emissions accounting and reporting, coordination in international governance. with some highlighting specific emissions The Supergen Bioenergy Hub’s review sources that are not included in the criteria of sustainability criteria highlighted that should be. inconsistencies in the sustainability 38 https://www.gov.uk/government/publications/biomass-strategy 39 https://www.theccc.org.uk/publication/biomass-in-a-low-carbon-economy 40 https://www.supergen-bioenergy.net/news/new-supergen-bioenergy-hub-report-assesses- sustainability-standards-for-sectors-utilising-bio-based-and-low-carbon-feedstocks 40 | Biomass Strategy criteria between different biomass end • Alignment to international policies use sectors. These inconsistencies were and schemes: The existing criteria perceived to limit comparability and align to internationally recognised fair competition between sectors. The biomass sustainability criteria, such report highlighted the presence of well- as the Forest Europe Sustainable developed sustainability policies within Forest Management criteria, and work the energy and transport sectors, but a with internationally recognised best lack of similarly stringent requirements practices and certification schemes as in the chemical, construction, and part of the global biomass market. manufacturing sectors, where biomass • Sustainability criteria for solid use is growing in importance. The report biomass (i.e., forest-derived biomass) noted the need for clear accounting employ requirements of sustainable frameworks for ecosystem services, land management already in place in existing management and biodiversity. It also primary product market: In the case of considered sustainability criteria beyond forest-derived biomass, it is a co-product GHG emissions to be at a very limited level of an existing industry, i.e., timber for sectors outside of transport and energy, industry. Strict sustainability criteria have with voluntary certification schemes been in place for the forestry sector for a filling in some of these sustainability considerable time at a landscape level to accounting gaps. ensure sustainable forest management Based on the comprehensive assessment and sustainable timber production. of the UK’s biomass sustainability criteria These forestry-specific criteria evolved we identified strengths and areas for over time through consultation to potential improvements within the existing ensure they address stakeholder needs criteria implemented within sector-specific in line with the latest evidence base. subsidy schemes. Biomass sustainability criteria utilise the criteria of this primary industry from The strengths of the current within which the biomass market was sustainability criteria include: established. The criteria support the efficient use of the harvested material, • Capturing sector-specific needs: the maximising the value derived from the UK’s sector-specific criteria reflect the harvest and supporting the maintenance needs and reality of different sectors, of the forest. allowing the criteria to be adapted to address and minimise risks specific to Areas where sustainability criteria can that sector, and to account for differing be strengthened include: international best practice schemes. • Lack of overarching criteria across • Alignment to wider domestic the bioeconomy leading to some environmental policies: The current inconsistencies between sectors: UK sustainability criteria align to and Although there are sector-specific work with domestic environmental requirements, these can mean that regulations and policies, such as the same feedstock can be subject those related to air quality, agriculture, to different criteria depending on the forestry, waste, and planning, sector of use, opening up the possibility complimentarily (Annex B). of market distortion. Biomass Strategy | 41 • Reliance on local governance The UK’s strict biomass sustainability mechanisms: For ecosystem services criteria already addresses some areas and social criteria, the benchmark for of stakeholder concerns in whole or meeting the criteria is the existence of partially, for example, protections for local governance mechanisms in the biodiverse habitats and protections for country of sourcing. Although the local land use rights are included in current mechanisms are risk assessed through criteria. However, it is vital that biomass the certification and auditing process, sustainability criteria continue to evolve and they may differ from one sourcing area strengthen in line with the emerging needs to another for the same feedstock. of new technologies and feedstocks, and • Developing criteria for new and with new scientific evidence to ensure emerging feedstocks and technologies: biomass feedstocks continue to deliver New biomass technologies such as, benefits for the climate, ecosystems, and power BECCS, and new feedstocks, society. Details on how the current criteria such as algae, seaweed, and hemp could be improved is provided in the are currently not eligible for existing following section. subsidy schemes and therefore there is an opportunity to develop, revise and strengthen criteria that would have to be applied. These new technologies and feedstocks will have their own benefits, risks, and needs, which will need to be addressed through appropriate requirements. • Assessing the current evidence base on Indirect Land Use Change (ILUC) metrics, soil carbon accounting, and waste exemptions: Scientific understanding continues to develop in these areas and should inform future iterations of the criteria. ILUC is further discussed in Box 4.1 and Box 4.2 in Chapter 4. The themes encompassing the potential areas identified for strengthening sustainability criteria and addressing stakeholder areas of interest (identified through engagement) are summarised in Table 2.2. 42 | Biomass Strategy

2.4 Actions for strengthening the UK’s biomass sustainability criteria Key commitment: To enable the successful implementation of the cross-sectoral biomass Development of a cross- sustainability framework, we intend sectoral sustainability to publish a consultation in 2024. The framework for biomass actions below detail the government’s minded to position on the inclusion of A cross-sectoral sustainability framework various parameters and principles to be would deliver increased alignment of included in the sustainability framework, sustainability requirements across sectors which will be subject to consultation. of the bioeconomy by creating shared As part of this consultation, we will gather minimum criteria, which can also expand views on the details of the actions set to cover emerging biomass feedstocks out, including on implementation routes and uses. Such a framework would considered by government, as well as be applied to new future policies and the necessary monitoring, reporting, and schemes on biomass. It would not be verification (MRV) requirements. applied to existing government schemes and contracts, save that it may be applied where an existing scheme updates its Actions for delivering a sustainability criteria, provided that it is cross-sectoral sustainability deemed appropriate. This overarching sustainability framework would continue framework to allow flexibility for the variable sectoral and technical needs of different biomass Overarching Actions feedstocks and end uses. 1 Develop and implement a cross- sectoral sustainability framework It is essential that biomass sustainability for biomass: Develop a sustainability criteria are in place across the bioeconomy framework that can be practically to ensure biomass continues to deliver implemented across all biomass towards net zero while providing uses across the economy, which will environmental and economic benefits. This increase alignment in approaches cross-sectoral sustainability framework will and provide market fairness. Details be the mechanism for the implementation of a cross-sectoral sustainability of the actions detailed below to strengthen framework, including detailed requirements based on up-to-date sustainability criteria, and the evidence and changing needs of the governance mechanisms involved bioeconomy. It is our intention that this will require development alongside cross-sectoral framework would enable the continued engagement with management of sustainable biomass use stakeholders to ensure these are fit across the economy in the future. for purpose. Given the global and interacting nature of many biomass Biomass Strategy | 43 supply chains, the development conditions and needs of each sector. and implementation of a cross- Any improvements in international sectoral sustainability framework will voluntary certification schemes, and require consideration of the current by extension, improvements in best international certification landscape, practice within the global market will established voluntary certification also need to be considered within schemes in use, and various the cross-sectoral sustainability government support schemes. framework alongside common Further work is also required to make requirements. For example, best use of modern data collection assessing whether the cascading methods for improving MRV, and to use of biomass, which is now being establish data reporting requirements adopted globally, can be implemented of the biomass sustainability criteria. practically within sustainability criteria. This will ensure suitable data In practice, industry and trade bodies granularity for transparency and are keen to highlight and implement assurance purposes, which can help best practice wherever possible, and build trust in the benefits biomass use adopting best practice into policy can deliver. The sustainability criteria, would support innovations and and any associated governance increase trust in biomass use overall. mechanisms, including approved certification schemes should be kept Actions on Greenhouse under review, and updated regularly gas criteria to ensure they remain aligned to the needs of a changing bioeconomy and 3 We are minded to implement retain confidence in the sustainability a common GHG emissions of the biomass supply chain. calculation methodology for biomass supply chains with 2 Encourage best practice alongside comparable units within the cross- common minimum requirements sectoral sustainability framework: in the cross-sectoral sustainability We will look to implement a framework: A cross-sectoral consistent and comparable sustainability framework will look calculation methodology for biomass to include common minimum uses that recognises and accounts requirements, such as criteria for for sector-specific needs (such as the waste, crop cap, efficiency and GHG existence of different supply chain thresholds, but allow flexibility for steps). This would limit divergence of sectors to set higher requirements methodologies and potential perverse and ambitions where achievable. To incentives across the bioeconomy. encourage different sectors of the It would also allow comparisons economy to go beyond the minimum between sectors to better understand requirement and adopt best practices, the relative contribution of different we must identify the appropriate biomass technologies to net zero. incentives and requirements for those Any new feedstocks, technologies sectors. International certification and ideas could be incorporated schemes and their requirements into the methodology as needed to within different sectors also evolve address future stakeholder needs at different paces, due to the unique (e.g., BECCS). 44 | Biomass Strategy We will set out the details of the ongoing) and we will use outcomes common GHG emissions calculation from this report to review our approach methodology via the consultation. to ILUC during the development of the detail of the cross-sectoral 4 We will look to include Indirect sustainability framework, which will Land Use Change (ILUC) in the be set out as part of the government cross-sectoral sustainability consultation on biomass sustainability. framework based on up-to-date scientific evidence on ILUC: It 5 Explore practicalities of is imperative that strict biomass accounting for soil carbon sustainability criteria are in place to changes based upon up-to-date avoid food and feed crop-derived scientific evidence: To support biomass causing indirect land use implementation of accounting for change, which could impact carbon- soil carbon changes based on rich or biodiverse habitats. Biomass up-to-date scientific evidence, we produced on existing agricultural land commissioned an assessment of the can lead to the production of food soil carbon accounting landscape and feed crops elsewhere, potentially and practicalities of reporting soil leading to the conversion of additional carbon. We intend to provide more land to agricultural use. This can information on this area as part of the result in significant environmental biomass sustainability consultation. impacts and in substantial amount of GHG emissions being released Actions on Land Criteria into the atmosphere if land with high 6 Where not already mandatory, carbon stocks and highly biodiverse we are minded to require habitats, such as forest land, biomass users to ensure 100% grassland, peatlands, is converted of woody biomass feedstocks to agricultural use. These ILUC used in their operations to be effects cannot be easily observed or proven sustainable, either via measured, or directly attributed to a certification scheme or national land use management decisions of schemes that demonstrate individuals or groups and are complex compliance (e.g. felling licenses) to calculate (See Box 4.1). or by collection of bespoke data Nevertheless, it is important to by the supplier:​To maximise understand the potential ILUC impacts the contribution of biomass to of our policies. The RTFO scheme decarbonisation, the government already requires the reporting of ILUC is minded to require all woody effects where evidence-based default biomass to be from sustainable values are applied; however, these sources as part of the sustainability are not directly accounted for as part criteria. However, we recognise that of the GHG emissions calculation certification may be beyond the methodology, but instead reported means of some smaller landowners on as part of regular statistics. We therefore placing a requirement commissioned a review of existing on them may lead to unintended ILUC assessment methods (project is consequences. These could include having a negative impact on the Biomass Strategy | 45 landowner, forester, and potentially environment. We intend to explore the forests from which the woody the implementation of this, including biomass is sourced. Therefore, to the monitoring and reporting implement this action, we are minded requirements of this change, in the to require users of biomass to provide biomass sustainability consultation proof of certification, or align to a that will follow this strategy. The national scheme, or provide bespoke consultation will need to consider how data to show 100% of woody implementation could avoid ruling biomass feedstocks are sustainable. out the using of legal and sustainable feedstocks that are not covered by Demonstrating (by reporting the felling licence regime, including relevant data to regulators) that arboricultural arisings, material from woody biomass used in biomass power line clearance, and dead trees. operations is from sustainable sources can increase transparency 7 We will look to implement the and trust, which is vital for public same definitions for sustainable acceptance of biomass technologies. feedstocks where possible to Implementing such a requirement increase alignment across sectors: would address stakeholder concerns Currently, definitions for different that unsustainable feedstocks may feedstock categories may differ be used in operations as a result of across support schemes, including the existing requirements in some in how far a feedstock might classify schemes that sets a minimum 70% as a waste or a residue. Aligned threshold for the portion of feedstocks definitions within the cross-sectoral that must be proven sustainable. sustainability framework should This recommendation also aligns to be applied where possible while the wider bioeconomy trends where accounting for sector-specific retailers are increasingly using 100% definition needs such as around sustainable certifications to meet their different feedstock uses. For example, consumer’s needs. Forest Research has suggested definition changes related to wood The existing 70% - 30% split for products.41 We will review these woody biomass sustainability derives definitions in line with current up-to- from the existing government Timber date forest management practices Procurement Policy, recognising that and evidence around cascading forest-derived woody biomass is part uses within a circular bioeconomy. of the wider forestry sector. Therefore, Separately, biogenic waste it is important to understand how feedstocks can be treated differently the 100% requirement can be in GHG emission calculations implemented without undesirable and may receive a higher reward. impacts on the wider forestry sector Therefore, where a feedstock is and forest landowners while also deemed to be a waste, it is important maximising the benefits of forest- to have certainty the waste is genuine derived, woody biomass for the and not purposefully created. 41 https://europeanclimate.org/wp-content/uploads/2018/05/CIB-Summary-report-for-ECF-v10.5- May-20181.pdf 46 | Biomass Strategy Research is ongoing to assess the to some stakeholders, including the sustainability of wastes to establish extent to which impacts are verifiable, whether exemptions should remain how biodiversity is managed, and in place for all biogenic waste monitored on the ground. It is feedstocks in a cross-sectoral essential to ensure that the biomass sustainability framework. Further sustainability criteria continue work and stakeholder engagement to strengthen its protections for as part of the biomass sustainability biodiversity and continues to have consultation will be required to appropriate processes in place to assess any requirements for changing demonstrate how these requirements definitions as appropriate based are achieved. Further engagement on scientific evidence, including with stakeholders is required to considering verification processes and understand the practicalities of interactions with regulators. measuring and benchmarking biodiversity, including through 8 We will look to include the consultation. requirements related to protecting, maintaining, and 9 We will look to include enhancing biodiversity within requirements explicitly around a cross-sectoral common protecting ecosystem services sustainability framework, building within a cross-sectoral biomass on requirements within current sustainability framework: support schemes and based Ecosystem services (e.g., air, water, upon scientific evidence: Biomass soil quality) are intrinsically linked to production and use can be an both biodiversity and social criteria. important driver for sustainable use Ecosystem services is a complex of land when robust sustainability area, with location-specific needs criteria are followed and enforced. which can be difficult to quantify. Sustainable land use can help achieve The complexity of measuring our biodiversity goals, leading to ecosystem services includes better outcomes for biodiversity. As identifying the appropriate services part of existing sustainability criteria, to measure, the extent to which biomass feedstocks cannot be impacts are verifiable, and how sourced from protected lands and they are managed and monitored lands with high biodiversity, such on the ground. The interactions as highly biodiverse grasslands, between biomass sourcing and and there are requirements for ecosystem services are an area of maintaining biodiversity in biomass interest for stakeholders. The current sourcing regions. However, there is biomass sustainability criteria cover potential to strengthen the existing ecosystem services somewhat criteria, by for example, stipulating indirectly through the land criteria adherence to internationally agreed by stipulating requirements around or ratified agreements on biodiversity, land use change, land rights of local and alignment to future domestic communities and health and vitality of biodiversity policies and strategies. forests. To strengthen this criterion, Impacts on biodiversity are of interest we are minded to include ecosystem services explicitly within the cross- Biomass Strategy | 47 sectoral sustainability framework, Labour Organisation conventions considering the practicalities of (ILO 169)). Further work is required appropriate measurable parameters to understand which internationally and verification processes required. agreed convention or agreement may Further consideration is required be most suitable, and detail will be set on how to benchmark ecosystem out in the consultation. services appropriately, such as stipulating requirements to adhere Actions to develop New Criteria to local or national regulations in 11 As biomass feedstocks and area of sourcing, or internationally technologies evolve and new agreed and ratified agreements on ones emerge, we are minded ecosystem services, whichever is to introduce appropriate new deemed to be of a higher standard. criteria within the cross-sectoral Keeping these considerations in sustainability framework and mind, further work and stakeholder associated governance that engagement as part of the biomass ensure continued delivery towards sustainability consultation will be climate and environment goals: required to assess the appropriate Ongoing monitoring and review of mechanisms for including ecosystem new feedstocks and technologies will services in the cross-sectoral be required, and an understanding sustainability framework. of how they could scale up over time 10 We will look to include Land and to allow timely implementation of Labour rights, Health and Safety of improvements to the sustainability workers, and Community welfare criteria. For example, further work is in a cross-sectoral sustainability required to establish the requirements framework and aligning with that would best help regulate new principles in internationally feedstocks such as algae and recognised agreements or seaweed to ensure only sustainable conventions: Social criteria are feedstocks are produced. A process currently included as part of the for implementation of new criteria will land criteria, where they rely on local support adaptation of sustainability or national governance in areas frameworks according to changes of sourcing as the benchmark to in the bioeconomy over time. This which criteria must be met. The will allow us to address conflicts requirements in the existing criteria and gaps that may arise in future refer to health and safety, dispute but cannot be accounted for in solving mechanisms, and legal, current criteria. customary and traditional rights of the local communities. Government is minded to strengthen this by benchmarking the social criteria requirements against principles in appropriate internationally agreed conventions (e.g., United Nations Declaration of Rights of Indigenous Peoples (UNDRIP), International 48 | Biomass Strategy Future engagement on and use. Through ongoing bilateral and multilateral engagement, and as biomass across the global members of the main international biomass governance arena initiatives, we will continue to promote best practices in sustainability governance The CCC’s 2018 report on biomass42 internationally. highlighted that the role of biomass in net zero depends on the quality and strength of international sustainability governance Summary and next steps to mandate managing the risks related to sustainability of imported biomass We have set out our key commitment feedstocks. The UK remains committed to and related actions to develop a cross- engaging with international stakeholders sectoral sustainability framework, subject and continues to support initiatives to to consultation (Section 2.4). This embed strict biomass sustainability commitment was developed through our requirements for biomass use across the own analyses and extensive stakeholder world, such as the work of GBEP and engagement outlined in the chapter. We the Biofuture Initiative. We champion the will continue to refine details around the need for biomass sustainability criteria for potential actions set out within this section biomass use across the world to reduce as we develop the consultation which we sustainability risks for biomass production intend to publish in 2024. 42 https://www.theccc.org.uk/publication/biomass-in-a-low-carbon-economy Biomass Strategy | 49 Table 2.2: Themes of interest within the current biomass sustainability landscape. These themes encompass areas for improvement identified through our assessment and stakeholder engagement. Themes of interest within Is this theme already How will this theme the current biomass addressed in be addressed through sustainability landscape current UK biomass our commitments sustainability criteria? and actions Consistency in Within government Our commitment to sustainability across the incentives, the UK only develop an overarching bioeconomy: A need to supports sustainable cross-sectoral sustainability ensure all biomass end biomass which meets the framework, subject to uses adhere to the same sustainability criteria. consultation, will aim to minimum criteria across address the identified lack sectors and internationally, of consistency across with alignment to the sectors. This framework European and wider global would regulate all market. Stakeholders biomass uses across the wanted consistency, and economy in future. unsustainable biomass use to be phased out while encouraging best practice. Preference for domestic Domestically produced Any new feedstock feedstocks: Domestic feedstocks are not types (produced in the grown feedstock inherently more sustainable UK or abroad) would was preferred by than imported feedstocks. need suitable criteria, as some stakeholders. The UK takes an agnostic detailed in Action 11. approach to where biomass feedstocks are sourced from as long as they comply with the relevant sustainability criteria. Imported pellets form an important part of UK’s energy supply and energy security, and currently domestic supply is unable to match demand. There are policies in place to support domestic biomass production, such as the Biomass Feedstocks Innovation Programme. 50 | Biomass Strategy Themes of interest within Is this theme already How will this theme the current biomass addressed in be addressed through sustainability landscape current UK biomass our commitments sustainability criteria? and actions Carbon emissions and The GHG criteria Actions 3, 4, and 5 relate to accounting: Reducing implemented in government GHG criteria. The actions emissions across the support schemes requires highlight where further work supply chain was important the whole supply chain is needed to understand to stakeholders. More to be included, including how metrices can be reliable evidence was growing, processing and included meaningfully deemed necessary by transport of biomass. in criteria, such as ILUC stakeholders on carbon The UK reports and and soil carbon. emissions being accounted accounts for biomass for in the right sectors, such use in accordance with as the LULUCF sector. A internationally agreed rules review of the most up-to- that follow guidance from date evidence on ILUC the IPCC that avoids double accounting and soil carbon counting of emissions in was deemed necessary both the forest and energy to ensure landscape sectors. For example, the carbon stock changes loss of carbon stock when are accurately calculated a tree is felled is reported to ensure sourcing does in the land use, land use not occur from areas of change and forestry sector. falling carbon stock. For transparency, the UK reports internationally the emissions of carbon dioxide from bioenergy use as a memo item, outside of national totals. Biomass Strategy | 51 Themes of interest within Is this theme already How will this theme the current biomass addressed in be addressed through sustainability landscape current UK biomass our commitments sustainability criteria? and actions Sustainable land Current sustainability criteria Actions on Land management, Biodiversity already cover non-carbon criteria set out further and Ecosystem services: criteria such as biodiversity enhancements that could Stakeholders were keen and contain definitions be made to strengthen that efficient and up-to-date for protected forests criteria on biodiversity, land management practices and ecosystems and ecosystem services and were used, and verification provisions for protection sustainable sourcing. of ecosystem services of highly biodiverse areas, such as air quality match regardless of area of the clean air objectives. sourcing. While subject Some stakeholders had to a separate domestic low confidence in the legislative framework, sustainability of imported biomass support schemes feedstocks, particularly with give due consideration to regards to the impacts on the air quality impacts of highly biodiverse forests. using biomass. Social criteria: Land and labour rights Action 10 set out how Stakeholders deemed the to be upheld as per social criteria could be current criteria insufficient national or local law in strengthened further by for social impacts. country of harvest, and aligning to principles Engagement with experts land rights respected in internationally identified corporate ethics as part of the existing recognised criteria and and reporting should be sustainability criteria. standards explicitly. verified. Current schemes do not feature high levels of local community ownership or focus enough on community welfare which may hinder a just net zero transition. 52 | Biomass Strategy Themes of interest within Is this theme already How will this theme the current biomass addressed in be addressed through sustainability landscape current UK biomass our commitments sustainability criteria? and actions Scale and Adaptation: The current criteria are A cross-sectoral Criteria may work at periodically updated via sustainability framework, smaller scales but may not consultation at different subject to consultation, will translate to address societal timescales, depending on aim to provide consistency concerns. Sustainability sector-specific policies. within the bioeconomy and governance framework and allow improved may also need to adapt interactions with the wider and change as the policy landscape. Action bioeconomy grows and 11 highlights the need to new challenges emerge. develop and accommodate Need to look beyond just novel feedstocks improved/transparent and technologies. sustainability frameworks, and consider other drivers such as finance, development activities, public procurement, trade agreements Monitoring, reporting Where biomass use Further work will be and verification (MRV): is supported by the required to understand Stakeholders were strongly government, there are appropriate governance in favour of an effective independent regulators mechanisms for a cross- MRV system that follows a in place to verify the use sectoral sustainability whole systems approach of sustainable biomass. framework, and how to sustainability. There All data submitted as part the governance system was a lack of trust from of this regulation process can address stakeholder some stakeholders in is already required to be needs around increased certification schemes. independently verified and data transparency and Some stakeholders audited. Details of the accessibility. highlighted that auditing compliance process is set should be prioritised out in Annex A. Certification over certification and the schemes already use use of more transparent modern technologies for methodologies and modern data collection wherever technologies (e.g., satellite, possible and practicable. public datasets) Biomass Strategy | 53 Themes of interest within Is this theme already How will this theme the current biomass addressed in be addressed through sustainability landscape current UK biomass our commitments sustainability criteria? and actions Industry stakeholders UK criteria are already The cross-sectoral raised concerns that aligned to internationally sustainability framework increased specificity in recognised best practice would require regular sustainability criteria would standards which updates in line with up- be cost prohibitive for small industry follows. to-date evidence, and it is suppliers, stifle innovation, intended to keep pace with and prevent uptake of current industry led best biomass within the market. practices and align to latest scientific evidence. 3 Biomass and Air Quality Biomass Strategy | 55 Poor air quality is the biggest The production and use of biomass can environmental risk to human health. lower the quality of the air we breathe, The latest published figures43 (2021) increasing the risk of harm to human show that emissions of key pollutants health. The pollutants emitted from have reduced significantly since 2010. biomass use can also affect the capacity of However, government recognises that ecosystems to sequester greenhouse gas there is more to do to protect people and (GHG) emissions. the environment from the effects of poor air quality and to meet emission ceilings.

3.1 Impact of biomass use on air pollution Making greater use of biomass can ammonia emissions from spreading have a significant impact on air quality. and soil management. In addition, EA For example, its combustion produces Standard rules permits require the use of a variety of pollutants including fine covered containers or covered lagoons particulate matter (PM2.5). PM2.5 has to minimise ammonia emissions from been identified as the most harmful air digestate when stored. pollutant to human health, shortening lifespans and leading to respiratory and As set out in the National Emission Ceilings cardiovascular problems. Regulations 2018 (NECR),44 the UK has statutory emission reduction commitments Another example comes from digestate, in place for emissions of five of the a by-product of the Anaerobic Digestate most damaging air pollutants, including (AD) process, which can be used as a ammonia and PM2.5. The combustion low-carbon fertiliser. It does, however, of biomass already makes a substantial require careful management e.g., when contribution to the national emission totals it is stored and spread on agricultural of several pollutants. For example, the land. Without this it can cause substantial stationary combustion of biomass and emissions of ammonia and lead to harmful wood as a fuel within the manufacturing nitrogen deposition, which leads to loss and construction industries accounted for of biodiversity and ecosystem function 18% of PM2.5 emissions in 2021. Likewise, in sensitive habitats. To manage this, the the domestic combustion of wood Environment Agency’s Quality Protocols accounted for 21% of PM2.5 emissions require that quality Anaerobic Digestate in 2021. Emissions of PM2.5 from both of products are supplied with documentation these sources have increased significantly which specifies that they must be used, over the past 10 years.45 stored and handled in accordance with good practice guidelines to minimise 43 https://www.gov.uk/government/statistics/emissions-of-air-pollutants 44 https://www.legislation.gov.uk/uksi/2018/129/contents/made 45 https://www.gov.uk/government/statistics/emissions-of-air-pollutants/emissions-of-air-pollutants-in- the-uk-particulate-matter-pm10-and-pm25 56 | Biomass Strategy Combustion of biomass also contributes size are also key, with domestic biomass towards the population’s exposure to boilers having less stringent emission limits PM2.5 concentrations. In order to protect than industrial-scale boilers, reflecting the human health and the environment, greater ability and cost effectiveness of local concentrations of key pollutants controlling emissions at larger scale. are also subject to limits through the Air Quality Standards Regulations 2010.46 These factors are already reflected in We have also set two ambitious national the regulatory framework for different targets for PM2.5 in The Environmental end uses, for example through the Targets (Fine Particulate Matter) (England) consideration of local air quality impacts Regulation 2023.47 when setting emission limits for large biomass combustion plants through Consideration of the local impacts of environmental permits. However, biomass is therefore crucial, and these improvements could be made, particularly can vary according to several factors. for smaller biomass combustion plants Location is important, as air pollutants from where regulation and permitting is domestic or district biomass boilers can currently less effective at ensuring local have disproportionate impacts on people’s air quality is protected and population health as they are often located closer to exposure minimised. human populations. Technology type and 46 https://www.legislation.gov.uk/uksi/2010/1001/contents/made 47 https://www.legislation.gov.uk/uksi/2023/96/contents/made Biomass Strategy | 57

3.2 Impact of biomass air pollutant emissions on greenhouse gas emissions The use of biomass aims to decarbonise Nitrogen within the soil can also promote the economy and reduce GHG emissions. respiration of bacteria and decomposition However, air pollution from the use of of soil organic matter – both of which biomass can, in some cases, lead to release carbon dioxide and reduce soil secondary GHG emissions and lower carbon sequestration.51 As well as direct carbon sequestration in habitats. For nitrogen pollution, the emissions from example, nitrogen oxides (resulting from burning biomass can generate ozone. the combustion of biomass) and ammonia This can counteract any positive growth can be deposited on soils. If this nitrogen effects caused by nitrogen, and can affect is not taken up by plants, microbes can photosynthesis, flowering and crop yield. transform it to other forms of nitrogen, Stressors such as drought and excess including nitrous oxide, a potent GHG. nitrogen deposition can exacerbate ozone injury.52 Air pollution also impacts the sequestration of carbon in soils, plants, and trees. In order to achieve our net zero target and Nitrogen pollution (and its acidifying air quality goals in parallel, it is vital that impacts) can reduce biological diversity biomass policies maximise co-benefits by affecting plant growth and fungi in the and mitigate negative impacts by being soil which assist with nutrient uptake.48,49 dynamic and promoting the latest and The habitats that are most sensitive to most effective abatement techniques. these changes, including peatlands, native woodlands, heathlands, and grasslands, are those that play a critical part in carbon sequestration in the UK.50 48 https://data.jncc.gov.uk/data/9f1ab259-00f1-4080-9039-ec83e4031db1/JNCC-Report-447-FINAL- WEB.pdf 49 Lilleskov, E.A., Kuyper, T.W., Bidartondo, M.I. and Hobbie, E.A., 2019. Atmospheric nitrogen deposition impacts on the structure and function of forest mycorrhizal communities: a review. Environmental Pollution, 246, pp.148-162. (https://doi.org/10.1016/j.envpol.2018.11.074). 50 https://publications.naturalengland.org.uk/publication/5419124441481216 51 Jesmin, T., Mitchell, D.T. and Mulvaney, R.L., 2021. Short-Term Effect of Nitrogen Fertilization on Carbon Mineralization during Corn Residue Decomposition in Soil. Nitrogen, 2(4), pp.444-460. (https://doi. org/10.3390/nitrogen2040030). 52 Grulke, N.E. and Heath, R.L., 2020. Ozone effects on plants in natural ecosystems. Plant Biology, 22, pp.12-37. (https://doi.org/10.1111/plb.12971). 58 | Biomass Strategy

3.3 Regulatory requirements on biomass Regulatory requirements develop over time system for updating standards for small as technologies improve, new evidence industry. The BAT approach has been emerges, and markets change. Action highly successful in reducing emissions will be needed in the future to ensure from large industry and applying a that, where biomass is used, regulatory similar approach to small industry will requirements represent the best technically help to reduce and manage pollution and economically achievable methods for from this source and increase regulatory controlling emissions. Main areas for policy certainty for industry. development are: Lastly, we will identify and manage the air quality impacts of bioenergy with carbon Industrial and commercial capture and storage (BECCS) technologies as they develop. biomass combustion plant There is an existing regulatory framework, for instance, in England and Wales through Domestic biomass the Environmental Permitting (England combustion and Wales) Regulations 2016,53 emissions controls on the smallest plant through the New biomass boiler installations are Ecodesign for Energy-Related Products supported where the building is located in and Energy Information Regulations 2021, a rural area and does not have an existing and conditions within low carbon heat mains gas connection. The boiler must subsidy schemes. meet specific standards for emissions, to be eligible, to mitigate negative impact on However, there are gaps in this framework air quality in line with the government’s and the best available techniques (BAT) Clean Air Strategy. The scheme conditions for reducing pollution are not required for for low carbon heating subsidy schemes all categories of plant. As set out in the such as the Boiler Upgrade Scheme (BUS) Clean Air Strategy,54 the government is reflect this position. As new schemes are considering the case for tighter emissions developed, we will review requirements standards on Medium Combustion Plant to ensure they include adequate air (MCP) and Specified Generators (including quality protections. biomass plant) and considering closing the regulatory gap between the current Government has already taken steps to Ecodesign and MCP regulations. reduce emissions from domestic burning by introducing the Domestic Solid Fuels In the Environmental Improvement Plan, Standards Regulations.55 These include we committed to consulting on a new restricting the moisture content of wood 53 The Environmental Permitting (England and Wales) (Amendment) Regulations (EPR) 2018 SI 110 were published in January 2018 to transpose the requirements of the Medium Combustion Plant Directive (MCPD) EU/2015/2193 of 25 November 2015. 54 https://www.gov.uk/government/publications/clean-air-strategy-2019 55 https://www.legislation.gov.uk/uksi/2020/1095/contents/made Biomass Strategy | 59 sold for use in domestic burning and stores and must spread digestate using banning traditional house coal for domestic low emission spreading techniques that use. Government has also made it easier reduce ammonia emissions. Government for local authorities to enforce smoke has published a techno-economic study control area rules by providing powers to into emerging ammonia abatement issue fines for smoke emissions, rather technologies and their associated than prosecuting in court. environmental impacts.57 We will continue to monitor the development of these In the recently published Environmental technologies to understand their potential Improvement Plan,56 government role in driving more sustainable biogas and committed to take forward further policy biomethane production. to restricted emissions from domestic solid fuel burning, including tightening limits that new stoves in Smoke Control Transport Areas must meet, extending the solid fuels legislation, including to cover fuels burned The government is continuing to take outside, and designing and implementing action to improve air quality and deliver measures to drive a shift towards newer cleaner transport through measures set out appliances compliant with tough new in the Environmental Improvement Plan. emission standards. Regulation to reduce the impacts of biofuels from transport on UK air quality is already We are not considering a ban on domestic in place. This includes European Emission burning in England. The UK government Standards which require vehicles operating recognises that some households are reliant on biofuels to meet the same standards as on solid fuel burning as a primary source for those running on fossil fuels. In addition, heating, hot water, and cooking. With this The Motor Fuel (Composition and Content) in mind government is not seeking to ban Regulations also outline the requirements burning. This is particularly pertinent in light that biofuels need to comply with in order to of the current focus on energy security and be sold and used in the UK. the global rise in energy prices. When burned in internal combustion engines, biofuels typically do not deliver Anaerobic digestion significant air quality benefits compared to their fossil equivalents. Within transport, Government is developing proposals biofuel use is therefore to be increasingly on reducing ammonia emissions from focused on transport applications with organic manures. These will also relate to limited alternatives to liquid and gaseous the storage and spreading of digestate, fuels and our ultimate ambition is to a by-product of biogas generation which support the development of vehicles with is used as an agricultural fertiliser. These zero harmful tailpipe emissions. proposals will be consulted on later this year. For participants under the GGSS, plants are required to cover digestate 56 https://www.gov.uk/government/publications/environmental-improvement-plan 57 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/ file/1145312/identifying-impacts-from-food-and-farm-digestates.pdf 60 | Biomass Strategy Local action exposure. Siting of industry which emits air pollution must take local conditions into Local Authorities (LAs) have a role to account, including whether new industry play in reducing emissions of harmful would exacerbate an existing air pollution air pollutants, and the government will hotspot, or disproportionately impact a continue to support LAs to improve group already severely affected by poor air. their air quality locally. We need to make Government published a revised national sure that local authorities and regulators Air Quality Strategy58 in April 2023, with have powers that are fit for purpose to a focus on improving local authorities’ quickly address emissions that threaten delivery of measures to improve air quality health or habitats and make sure that across the country. the framework, including the planning regime, supports local action. This is particularly important in existing pollution hotspots, or where communities may be more vulnerable to health impacts of 58 https://www.gov.uk/government/publications/the-air-quality-strategy-for-england Biomass Strategy | 61

3.4 Research, development, and innovation to support biomass sustainability requirements and air quality Further research and innovation will • A process and impact evaluation of also be required to ensure that the the Domestic Solid Fuels Standards impacts of biomass on air quality are Regulations 2020. The regulations better understood and improvements in were introduced in England and put abatement technologies are developed. in place a ban on the sale of wet wood in quantities under 2sqm and, from May 2023, a ban of the sale Existing and planned of traditional house coal, for use in work includes: domestic settings. • A literature review and consultation with • The government has launched a experts on the air quality impact of new funding competition of up to £1 million and emerging low carbon technologies, to help industry develop technologies to including bioenergy. abate emissions from solid fuel burning. • Ongoing domestic combustion survey work to track domestic burning activity and quantities and types of fuel burned. • A research study to develop emission factors for domestic solid fuels, including wood, in order to better understand emissions from domestic combustion. These data will help develop future polices to reduce emissions from domestic burning. 4 Biomass Availability: sustainable resources from international and domestic sources Biomass Strategy | 63 Our Key Messages • The potential future availability of sustainable biomass is uncertain and challenging to determine with precision due to uncertainties over how economic factors will affect biomass availability in the future. • We expect demand for biomass to increase in the medium to long term to support net zero through the delivery of negative emissions. • Both domestic and imported supply of sustainable biomass are expected to continue to play an important role in supporting biomass use across the economy. • Reducing barriers to increasing domestic production of biomass will be important to ensure the UK can secure the supply needed across the economy to support decarbonisation. This is supported by the £36 million Biomass Feedstocks Innovation Programme, which funded innovative ideas that address barriers to UK biomass production. However, we are determined that this will not compromise government’s Food Strategy goal of maintaining food production or our ability to meet our Environment Act targets. • We will soon publish the updated Global Bioenergy Resource Model that has supported the analyses in this Strategy. The availability of sustainable and The chapter also presents an overview suitable biomass feedstocks at of the existing policies and future policy sufficient scale and at appropriate plans to deliver sustainable biomass over prices is one of the primary factors that time in support of biomass demand in the will determine the overall contribution of UK. We also highlight the opportunities biomass to net zero. to scale up domestic biomass production by increasing dedicated perennial energy This chapter sets out government’s crop production, and through delivery of latest assessment of biomass feedstock novel feedstocks following research and availability between now and 2050 from innovation activities. both domestic and international sources based on existing policies and the best available evidence for future projections. 64 | Biomass Strategy

4.1 Biomass Feedstocks Biomass feedstocks include purpose- transport fuel production.60 Solid biomass, grown feedstocks as well as organic including wood, waste wood, animal and wastes and residues. Biomass feedstocks plant biomass (excluding biodegradable under consideration in the strategy waste), represented 33% of the total include conventional food and feed crops, renewable energy demand in 2022, perennial energy crops (Miscanthus and with nearly 66% being used in electricity short-rotation coppice (SRC)), short- generation and the remaining 34% to rotation forestry (SRF) and wastes, produce heat.61 The electricity sector products (incl. forest derived products),59 predominantly uses wood pellets from agricultural residues, forest residues, forest residues and low-grade roundwood. and residues from processing, as well as The heat sector utilises a combination of marine-based and novel feedstocks. wood-based solid fuels and renewable biogas produced from animal-derived Sustainable biomass has multiple benefits wastes (such as manures, poultry litter, and for decarbonisation. Plants and trees animal processing residues), food wastes, absorb carbon dioxide (CO2) as they grow, industrial organic wastes, and crops, such and the biomass harvested from them as maize. The biogas can be upgraded to can be used to directly displace fossil biomethane and injected into the gas grid, fuels such as oil, coal, and natural gas, where it directly displaces fossil natural to produce energy or other products. gas. In the transport sector, renewable Biomass can also provide a carbon transport fuels are predominantly produced sink by storing carbon in soil and plant from wastes and residues, such as used material, and through long term storage in cooking oil, starch slurry, food waste or products (e.g., wood panels, construction) tallow. Crops, such as corn, wheat and and in bioenergy production with carbon sugar cane, also play a role, in particular in capture and storage (BECCS). However, bioethanol production.62 permanent land use change, particularly for longer rotation biomass crops, can Given its key role for decarbonisation, it represent a very significant increase in the is important to understand the potential average carbon stock on the land. future availability of biomass. However, as the biomass feedstock supply is so Today, a significant portion of our biomass diverse, understanding future availability supply is composed of wastes and is a complex task and one which is residues, with some purpose-grown arable subject to significant uncertainties. Future crops being used for renewable gas or feedstock availability will depend on a 59 Other biomass products, i.e., a product of economic value or use that could lead to indirect impacts if used for energy use (e.g., distillers’ grain which could be used for animal feed) are not encouraged for bioenergy uses. 60 https://www.gov.uk/government/statistics/area-of-crops-grown-for-bioenergy-in-england-and-the- uk-2008-2020/summary 61 https://www.gov.uk/government/statistics/renewable-sources-of-energy-chapter-6-digest-of-united- kingdom-energy-statistics-dukes 62 https://www.gov.uk/government/collections/renewable-fuel-statistics Biomass Strategy | 65 range of factors, including government source, its potential environmental impact, policies and market developments in the and land use. Participants expressed a UK and in other countries, as well as the clear preference for waste as a source prices different end users are willing to pay. of biomass compared to others because they saw it as a more reliable source, with To support our assessment of future a lower impact on the environment, and biomass availability we have updated the not detracting from other uses of land UK and Global Bioenergy Resource Model, in the way that using crops for biomass which will be published later this summer. would. Participants raised concerns This is a complex biophysical model over the sustainability of, for example, that provides several future availability imported forestry residues, and whether scenarios based on user inputs within a sourcing biomass from forestry is the model framework. The model provides an best use of land. estimate of potential sustainable biomass feedstock availability to the UK up to Participants also expressed hope that 2050 from domestic and international the domestic supply of biomass could sources under various scenarios. Biomass potentially reduce the cost of energy feedstocks in scope of the model can and make energy supplies more reliable be categorised into perennial energy because it could exploit new or free crops, biogenic wastes and residues resources, such as (domestic) waste. (including forestry residues), arable crops, Participants were concerned about the and biofuels.63 The full list of in-scope impact that dedicating land to grow crops feedstocks and information on the supply specifically for biomass would have on the assumptions can be found in the Technical availability of food. There were also doubts Annex. There may be additional biomass about the feasibility of sourcing biomass feedstocks which may be in scope of the from both forestry residues and SRF, and Strategy but have not been included in whether there was enough land available the model due to lack of available data in the UK to do this. When presented with or its relatively small scale, e.g., novel information on perennial energy crops, and feedstocks, such as seaweed. the ways they differ from food and feed crops, participants thought this allowed for The Biomass Public Dialogue Project,64 a more consistent supply of biomass. which gathered public views on the role of biomass in achieving net zero, included views on the different sources of biomass. The report focusses on five main feedstocks: waste; food and feed crops; perennial energy crops; forestry and forestry residues; and marine feedstocks. Participants were not given criteria to assess sources but tended to rely on perceptions concerning the reliability of the 63 Note that global biofuels included in the model are not ‘feedstocks’ but ‘finished fuels’. This is because it is likely that these will be processed overseas and imported to the UK as ‘finished fuels’ rather than raw feedstocks. 64 https://www.gov.uk/government/publications/biomass-strategy 66 | Biomass Strategy

4.2 Future availability of biomass resources Biomass Availability To help inform policy development, it is important to differentiate between Scenarios theoretical levels of potential future availability and what is referred to as Several factors were considered in ‘sustainable implementation potential’ developing our assessment of potential (Figure 4.1). The former refers to the total future biomass availability to the UK. amount of biomass that is theoretically These include domestic policies relating available to a given region at a given time. to biomass production and availability The latter refers to the remaining portion (for example, waste reduction targets), of that biomass potential after considering domestic and global land availability technical, socio-economic and political under a range of socio-economic developments (such as land use policies, future scenarios, biomass crops yields, population levels, agricultural productivity, sustainability policies that stipulate supply and lifestyles) alongside biomass chain greenhouse gas (GHG) emissions sustainability requirements.66 Ultimately, thresholds, and competition from non- the potential future biomass availability that energy uses. Here we set out ranges of reflects the ‘sustainable implementation future biomass availability that account for potential’ is lower than the theoretical some of these factors and recognise the potential both on a global and a UK level. significant levels of uncertainty associated with estimating biomass resource We recognise that there are already availability, especially over the long term. significant pressures on global land use, The complex interactions across the food security and biodiversity. Climate- biomass supply system make forecasting related policies and market initiatives which precise future availability unreliable. drive additional demands on land use amplify these pressures, as do the impacts Previous studies65 show a number of of a changing climate. It is important that models can assess the potential future countries considering their approach to availability of biomass for the bioenergy renewable energy consider the marginal sectors, each with different constraints and impact of these policies on food security assumptions, that provide a wide range of (both the level and volatility of agricultural estimates (approximately 600 PJ to 3,200 prices), global emissions, factoring in both PJ at the UK scale based on the energy direct and indirect effects (in particular, content of the feedstocks). indirect land use change), and biodiversity. 65 Supergen Bioenergy Hub UK Biomass Availability Modelling Scoping Report, 2021: https://www. supergen-bioenergy.net/wp-content/uploads/2020/10/Supergen-Bioenergy-Hub-UK-Biomass- Availability-Modelling-Scoping-Report-Published-Final.pdf 66 IEA Bioenergy Review, 2023: https://www.ieabioenergyreview.org Biomass Strategy | 67 Theoretical potential Technical potential Economic potential Sustainable implementation potential Distinction of biomass potentials Figure 4.1: Different levels of future biomass potential. IEA Bioenergy Review 2023 The biomass supply scenarios presented The approach taken aims to avoid the in this strategy have been developed to risk of causing indirect land use change minimise impacts on land use and food (ILUC), which is caused when increasing security. The scenarios limit the global demands for food and feed crops land availability for biomass production by displaces production in ways that modify only allowing the expansion of bioenergy existing land use, or brings new land into crops for import to the UK to be grown cultivation, in ways that are associated with on abandoned arable land, as predicted additional emissions (see Box 4.1), or by by a global integrated assessment other measures that expand agricultural model (IMAGE). The global area of land at the expense of other land uses. abandoned pastureland is assumed to The biomass supply estimates provided in be used to promote internationally agreed this strategy are therefore considered to be biodiversity goals. The land area available conservative, as they assume no land use for biomass production is dependent on the change from food production and hence scenarios’ assumptions on socioeconomic a reduced risk of ILUC. The estimates pathways to 2050 which affect population, also comply with current sustainability dietary habits and the outcome of efforts to requirements by not including feedstocks improve food system efficiency and reduce produced from forestry regions that are food waste. Hence the demand for land harvested at a rate faster than their growth, for food can be impacted by a wide range or from deforested areas, so as to preserve of factors which will in turn influence the forest area and carbon stocks. Further amount and production cost of biomass. work is required to establish suitable ILUC 68 | Biomass Strategy metrics and emissions factors for land- to different constraints and assumptions derived biomass feedstocks in scope of concerning domestic and imported the biomass availability model. feedstocks. Due to the uncertainty described here, these are not intended Potential future biomass to be upper or lower estimates of what availability scenarios we expect biomass availability to be, but rather to provide a broad frame of Modelling the future availability of reference within which to analyse how sustainable biomass to the UK is biomass might be used in a world where complex and there are uncertainties there is greater or lower availability. over how various economic factors can affect biomass availability, e.g., The two illustrative scenarios include a future global competition and trade of restricted supply and an ambitious supply. biomass, the future cost of biomass and The primary difference between these the price businesses will be willing to scenarios is how much feedstocks we can pay for biomass and secure long term import. In both, we include a sustainability supply chain contracts. Most potential constraint to ensure we only build a picture biomass availability estimates are based of sustainable biomass potentials. In on biophysical models that estimate both, we use the same assumptions to maximum technical potential of biomass determine the potential future availability availability globally and do not include from domestic sources, except for energy economic considerations that could limit crop planting rates. or promote biomass availability in the future, for example due to the lag between Assumptions of the future biomass establishing crops and harvesting them. availability scenarios: To illustrate this, we have set out two Most domestic availability assumptions scenarios of biomass availability according are kept consistent between the two scenarios. These include government’s waste minimisation and increased recycling targets, the near elimination of biodegradable municipal waste to landfill, ambitious afforestation targets, and improved handling of sewage and slurries. The main difference between the two scenarios relate to import levels and to domestic energy crop planting rates. These differences reflect the uncertainty about future UK land use change, the precise biomass species mix, policy choices around cultivation, and interaction between domestic biomass and other UK land-based targets. We assume no export of UK produced biomass or biofuels. Bio Global Industries Ltd Biomass Strategy | 69 Box 4.1. Land Use Change Land is a limited resource facing multiple increased demands, nationally and globally. A key rationale for incentivising the use of biomass in producing renewable energy is to reduce GHG emissions. Assessments of GHG savings take account of emissions directly associated with the production, transportation and use of biomass. However, beyond these direct effects, and in line with the sort of market processes outlined in Box 4.2, increasing biomass production can also result in emissions stemming from displacement effects known as indirect land use change (ILUC). Emissions associated with ILUC matter, because they can dilute or even outweigh direct emissions benefits. Direct land use change occurs when an area of land is converted from one use to another, e.g., from forestry to the production of bioenergy crops, such as Miscanthus. Our existing biomass sustainability criteria include requirements to include GHG emissions or removals associated with direct land use change in the GHG emissions calculations and to prevent sourcing that adversely impacts areas with high biodiversity value or high carbon stocks, such as primary forest, protected areas, peatlands, and wetlands. ILUC relates to unintended consequence of a land use decision taken elsewhere. For example, the use of biomass produced on existing agricultural land can lead to both the intensification of production on existing agricultural land (which may involve extra use of fertiliser, associated with additional GHG emissions) and the displacement of production of food and feed crops elsewhere, potentially leading to the cultivation of additional land. This cultivation can result in substantial amounts of GHG emissions being released into the atmosphere if land with high carbon stocks and highly biodiverse habitats, such as forest land, grassland, or peatlands, is converted to agricultural use. Similar effects might also apply to biomass other than their use as primary feedstocks. For example, if wastes have a range of potential uses, then it would be important to consider whether, and how far, their use might displace demand into the markets for alternative inputs produced on land. GHG emissions associated with ILUC are inherently uncertain. ILUC effects are complex and cannot be easily observed, measured, or directly attributed to land use management decisions of individuals, groups, or a particular policy. The estimation of ILUC effects is dependent on modelling studies that seek to understand how changes in demand for agricultural commodities (e.g., via biofuel policies) and other products used for renewable energy production affect global land use. GHG emissions associated with ILUC are influenced by a variety of factors, such as what was produced on the land previously, the technology used for the bioenergy production, and the region of the world where ILUC occurred. 70 | Biomass Strategy Not all feedstocks have the same ILUC impacts but when ILUC is considered, some biomass can have greater carbon impacts than fossil fuel alternatives. A variety of modelling tools and approaches can be used to calculate ILUC. Any model-based ILUC factors used to calculate GHG emissions are not fixed values, but depend on market dynamics (see Box 4.2) and local circumstances. To account for the resulting lack of certainty in the impact of ILUC, while also accounting for the need to recognise the potential ILUC impacts of different biomass feedstocks we require the reporting of estimated ILUC emissions from land-based biofuels using ILUC values provided for suppliers under the RTFO and the LCHS. As detailed in Chapter 2.4, we commissioned a review of existing ILUC assessment methods (project is ongoing) and we will provide further detail in the forthcoming government consultation on biomass sustainability on next steps for ILUC in our biomass sustainability criteria. • The restricted supply scenario: The full set of assumptions behind how the scenarios were constructed can be found – Includes levels of domestic energy in the Technical Annex and the model used crop planting that reach 9 kha/yr will be published later this summer. from 2038 onwards. – The import levels in this scenario The illustrative scenarios presented in the assume that most countries Net Zero Strategy for how the UK could producing biomass prioritise their reach the net zero target showed that own domestic use, and so only biomass use would scale up considerably one-fifth of overseas production is from today’s level, largely fuelling BECCS exported. Of this volume available technologies. As negative emissions will for trade, it is assumed that the play an important role, we expect biomass UK competes equally with all other use in BECCS, and therefore overall nations and so is able to secure a demand, to increase in future as these new fraction of this market equal to the technologies deploy over time, which will UK’s share of global GDP. require biomass supply to scale up. • The ambitious supply scenario: The total potential sustainable biomass estimated to be available to the UK varies – Includes higher levels of domestic significantly across these scenarios (Figure energy crop planting, reaching 17 4.2), with 550-750 PJ in 2025, and 500- kha/yr from 2038 onwards. 1,000 PJ in 2050. – The import levels in this scenario Under both scenarios, the availability assume the UK is able to import of biomass feedstocks from domestic a fraction equal to its share of sources remains relatively stable. In the global GDP of all overseas- ambitious supply scenario, total domestic produced bioenergy that meets our resource supply varies only between sustainability criteria. 370 PJ in 2025 and 390 PJ in 2050, Biomass Strategy | 71 while in the restricted supply scenario, increase our imports by clear signalling total UK resource supply remains around of demand policies until we are importing 370 PJ in 2025 and 2050 (Figure 4.3). a share of overseas sustainable biomass The next section discusses the potential production equal to the UK’s fraction of future domestic supply and policies global GDP. Then between 2030 and 2050 influencing this. this scenario initially sees the UK’s share of importable bioenergy slightly decreasing as Availability of biomass from international the UK’s share of global GDP decreases sources varies significantly between slightly due to the growth of developing the two scenarios. Total supply from countries, thereby increasing competition international sources in the ambitious for the biomass resource. In later years scenario varies between 400 PJ in 2025 this declining share is offset by increases in and 600 PJ in 2050 (Figure 4.3). The sustainable global production of biomass, import availability increases out to 2030 which increases availability to the UK. under the assumption that we are able to 1200 1000 Bionergy (PJ) 800 600 400 200 0 2025 2030 2035 2040 2045 2050 Year Key Modelled availability Demands in Carbon Budget scenarios range Delivery Plan Current UK usage Minimum required for Net Zero (Table 5.1) in UK TIMES Figure 4.2: Sustainable biomass availability ranges (from domestic and international sources) potentially available to the UK between 2025 and 2050 based on availability estimates under two biomass availability scenarios, with comparisons to current and estimated future demand levels. 72 | Biomass Strategy The breakdown of biomass by feedstock is only able to accrue a share equal to is included in Figure 4.5, based on the UK its fraction of global GDP. Crucially, this moving towards importing an equal share restricted scenario sees the UK only of each type of biomass which is available have access to a total of around 500 PJ internationally - the actual future mix of of sustainable biomass by 2050, which imported biomass is uncertain, and the significantly reduces the amount of chart should not be read as a projection of decarbonisation that is possible through future imports for each fuel. deployment of biomass, with a particular reduction in the level of negative emissions In contrast, in the restricted supply achievable from BECCS. The impact of scenario, total potential supply from this is that our whole systems energy international sources is 170 PJ in 2025 modelling (using UK TIMES, described decreasing to 120 PJ in 2050 (Figure 4.3). in Chapter 5 and the Technical Annex) is This assumes that overseas producers of no longer able to find a net zero solution sustainable biomass only make one-fifth for 2050, based on current demand and of their production available for export, technology assumptions. and the UK must compete equally for this limited international supply and so 1000 800 Bioenergy (PJ) 600 400 200 0 2025 2030 2035 2040 2045 2050 Year Total imports - Ambitious Total imports - Restricted UK resources - Ambitious UK resources - Restricted Figure 4.3: Total potential future availability of biomass feedstock to the UK from domestic and imported sources in restricted and ambitious supply scenarios.67 67 The feedstocks (food and feed crops) from which the global first generation (1G) biofuels are made are not quantified in the model as these are assumed to be available to the UK as ‘finished fuels’, processed overseas and imported to the UK. Biomass Strategy | 73 Therefore, we have modelled a further example, innovation will also be needed to scenario by starting at the ambitious level scale up domestic supply of sustainable of biomass imports and incrementally feedstocks. The £36 million Biomass reducing the share of global production Feedstocks Innovation Programme is a that the UK is able to access until the government-funded innovation programme UK TIMES model is unable to find a that aims to help scale up the domestic pathway to net zero in 2050. This occurs production of sustainable biomass by at around two-thirds of the level of the funding innovative ideas that address ambitious scenario, or around 400 PJ per barriers to biomass feedstock production year of imports of sustainable biomass within the farm gate (Chapter 4.3). by 2050. This scenario uses the same level of domestic supply as assumed in The following sections provide a more the ambitious scenario, requiring in total detailed overview of the potential future around 800 PJ of sustainable biomass supply of major domestic and international (Figure 4.2). This represents around biomass feedstock to the UK, the use and 30% increase in bioenergy use between availability of different feedstocks today, Carbon Budget 6 and 2050 to support the policy landscape and what may be net zero under current technical and required in the future to support these demand assumptions. feedstocks in the UK. Biomass supply is sensitive to the cost of biomass, therefore actions to reduce the Domestic biomass sources cost of biomass will be needed to ensure the UK can secure the supply needed to In 2022, 66% of biomass feedstocks support decarbonisation. Government, used in renewable energy supply (heat, businesses, and biomass producers will electricity, and transport) were from all have a role in introducing interventions domestic sources.68 The current makeup that increase the supply of biomass and of domestic biomass resource is diverse. develop sustainable supply chains while About 35% is composed of plant reducing supply costs, whilst at the same biomass, which includes straw, wood time safeguarding food production and the pellets, agricultural residues, and other delivery of our nature goals. plant-based biomass. Around 121,000 hectares of land are used to grow biomass We will continue to monitor the levels of crops for energy and the majority (92%) biomass supply to ensure the UK can of this is used for biofuels or biogas.69 secure the biomass supply needed for Biogenic waste makes up about 18% any scale-up of biomass use across the of the domestic feedstock supply which economy. Should the ‘restricted’ supply includes materials such as waste wood, scenario become likely, we would consider sewage gas, landfill gas and food waste. the interventions needed to remove In the transport sector, renewable fuels barriers to increasing biomass supply from from UK feedstocks made up 10% of total domestic or international sources. For renewable fuels in 2021, with 77% of UK 68 https://www.gov.uk/government/statistics/renewable-sources-of-energy-chapter-6-digest-of-united- kingdom-energy-statistics-dukes Table 6.1. 69 https://www.gov.uk/government/statistics/area-of-crops-grown-for-bioenergy-in-england-and-the- uk-2008-2020/summary 74 | Biomass Strategy origin renewable fuel being produced from The total availability of biogenic waste a waste feedstock, such as used cooking resources is expected to decrease over oil, food waste, and biogenic fraction of time as environmental policies progress. municipal solid waste.70 For example, our waste minimisation ambitions in support of our Environment Domestically supplied biomass will Act 2021 targets, and with greater use continue to play an important role in of a circular economy, will mean that providing the sustainable, stable, secure the volume of waste going to residual and cost-effective biomass supply that waste treatment is expected to decrease. the UK will need for a variety of biomass Concurrently, mandatory food waste uses across the economy. Our analysis collection policies will mean a greater suggests relatively stable levels of biomass volume of food waste will be available availability from domestic sources in the for recycling. future, varying between 370 PJ in 2025 and 370 PJ (restricted scenario) and Future availability of purpose-grown 390 PJ (ambitious scenario) in 2050. biomass feedstocks is inherently more Cattle slurry, residual biogenic waste, uncertain, while also having a greater and waste wood are the three largest potential for growth. In our feedstock sources of domestic feedstocks in our availability assessment, the biomass analysis by primary energy content, supply from Miscanthus, short rotation with all three showing small variability coppice (SRC), and short-rotation forestry between 2025 and 2050 (Figure 4.4). The (SRF) sees a marked increase from 2030 largely stable future availability of these onwards from today’s low supply levels and other feedstocks (e.g., pig slurry, in both supply scenarios, but at different small roundwood, sawmill co-products, levels (Figure 4.4). The latest government arboricultural arisings, sewage sludge, assumptions on potential future planting etc) is due to a mix of assumptions. For rates assume that planting increases example, the quantities of straw surplus to c.17kha per year in England could to agricultural requirements from cereal be achieved by 2038. Higher prices crops and production of other agricultural for growers and removal of barriers to residues are stable in foreseen policy and greater deployment of these feedstocks market environments as are animal herd could facilitate development of stable sizes. Some feedstocks such as sewage supply chains and therefore, the greater gas are a function of population and production of these purpose-grown energy technology assumptions. crops. Further work is needed to remove some of the technological barriers to The availability of different waste and using these feedstocks in a wider variety waste-related feedstocks, such as food of applications and end uses, such as waste, and residual biogenic waste, is hydrogen production, to support the scale- dependent on our domestic waste policies up of domestic planting. and ambitions. 70 https://www.gov.uk/government/statistics/renewable-fuel-statistics-2021-final-report/renewable-fuel- statistics-2021-final-report#renewable-fuel-trends Biomass Strategy | 75 400 A A R A R A A R R A R R 350 300 250 Bioenergy (PJ) 200 150 100 50 0 2025 2030 2035 2040 2045 2050 Year Key A Ambitious Cattle slurry R Restricted Pig slurry Straw Tallow Forestry harvesting residues UCO Small roundwood SRC willow Short rotation forestry Miscanthus Sawmill co-products Maize Arboricultural arisings Wheat Waste wood Sugar beet Residual biogenic waste Brown Grease Food waste Waste tyres biogenic fraction Landfill gas Microalgal Oils Sewage sludge Agricultural Residues Figure 4.4: Potential future availability of biomass from domestic sources in the restricted and ambitious supply scenarios. 76 | Biomass Strategy The following sections explore in greater could be combined with carbon capture detail the policies underpinning domestic and storage, or processed as a material biomass supply and the opportunities for for manufacture. increasing this. Short-rotation forestry Perennial energy crops and Common forestry species such as Sitka short-rotation forestry spruce can be grown over shorter rotations (10-25 years), providing an SRF resource A relatively small area of the UK (~10,000 in the uplands. Some species such as hectares) is cultivated with perennial Aspen, Sycamore, Birch and clonal Poplar energy crops, and this is mainly used for hybrids have been grown as single stem heat and electricity generation. There is short-ration biomass crops. They are often currently (2020) a negligible amount of incorporated into agroforestry systems, dedicated SRF and around 2,000 hectares although their planting is less common of SRC. There is an unknown area of SRF than elsewhere in Europe. within UK Forestry Standard-compliant woodlands. Given the role that we expect Fast-growing exotic species could make biomass will play in the UK’s journey to net a rapid and major contribution to both zero, it is likely that the UK will grow more biomass supply and carbon sequestration biomass here in the future, but domestic in growing biomass (increasing the long biomass cultivation and deployment term average carbon stock of the land). should not compromise the government’s However, such crops could have negative commitment to broadly maintain current environmental impacts, including on water levels of food production, or ability to availability, plant health, and biodiversity, meet our legally binding Environment Act and more evidence on the scale of these 2021 targets. The upcoming Land Use impacts is needed for many novel species Framework for England will help support before adopting them at scale. and balance the delivery of net zero, food production and Environment Act targets. Short-rotation coppice Government is considering the types of Clonal Willow hybrids, which have been biomass that could be grown domestically grown extensively in SRC systems, are as dedicated feedstocks for use in the more familiar to landowners than SRF generation of energy, or more broadly systems and can yield earlier (three across the bioeconomy. Species covered to four years). are Miscanthus, SRC (e.g., Willow and SRC crops such as Willow are attractive Poplar) and SRF (including native and in that they are pioneer species and can exotic species). Hemp is covered later grow in a wide variety of conditions and in this chapter. soils. Over a lifespan of at least 20 years, We are exploring these species types they can help rejuvenate soil, and can due to their potential to sequester also offer excellent natural flood barrier carbon in both above and below ground protection as it can slow down the peak stores, supporting the transition to net flow of water by increasing the hydraulic zero in the natural resources sector, as roughness. Native or naturalised species well as potentially providing low carbon including sweet chestnut and hazel also feedstocks for energy generation that offer potential for diversifying SRC. Biomass Strategy | 77 A number of options are available for thereafter. Growers may therefore find establishing new short-rotation crops this crop attractive due to its ease of with a view to expanding the availability establishment and maintenance and it of domestically produced feedstock. can have comparative benefits for soil and However, consideration must be given water quality. on how woodlands and or plantations comprising short-rotation crops are Miscanthus is a relatively versatile crop designed and managed. and can be grown in most soil types and tolerate a wide range of pH levels. The statutory tree canopy and woodland It can survive being immersed in water cover target for England excludes purpose- for long periods of time and can support grown SRF and SRC plantations that biodiversity depending on how and are not UK Forestry Standard-compliant where it is cultivated. Miscanthus is because they are unlikely to provide the considered a crop, and as such does not range of woodland benefits set out in the face the same permanency issues that Environmental Improvement Plan. SRF and SRC may do, providing greater flexibility of land use. Woodland creation, including for species that have the potential to form woodland, is Existing Miscanthus and SRC is eligible considered a permanent land use change for support under the Sustainable under forestry regulations, acting as a Farming Incentive (SFI), the first of the barrier to the planting of SRC and SRF new environmental land management systems that have a short-rotation and are schemes introduced under the Agricultural unlikely to develop the same natural capital Transition Plan. This support applies for benefits of ‘conventional woodland’. We actions taken to manage land in a way have recently consulted on developing a that improves crop production and is more policy to no longer require that planting environmentally sustainable, including one these systems represents a permanent soil management action, three integrated land use change and will update on the pest management actions and one nutrient results of this consultation in due course. management action. Perennial Grasses: Miscanthus Interactions with Land Use Miscanthus is usually propagated by Domestic perennial energy crops and SRF planting sections of rhizomes and can would be developed in balance with other be first harvested in the late winter spring priorities on our limited supply of land. two years after planting. Harvesting is These priorities include growing food, then normally carried out every year with planting trees, building homes and other a lifespan of up to 20 years. The perennial infrastructure, creating natural habitats, nature of this crop is advantageous to and using land for leisure and recreation. farmers compared to the biomass types Striking the right balance between different above in terms of providing an annual land uses is a challenging task which income once established. will involve trade-offs, and biomass is no exception. To help find the right balance Miscanthus is a relatively low-input crop between these priorities we will publish a and requires minimal fertilisers in its early Land Use Framework for England in 2023. production stages and limited inputs 78 | Biomass Strategy This will mean making sure that Biomass Feedstocks and incentives and advice align to support Waste Policies food production and the delivery of environmental benefits from land The Environmental Protection Act 1990 (as according to what might be appropriate amended by the Environment Act 2021) for a particular landscape, which will be enable all local authorities in England to dependent on the local context and needs. be required to arrange for the separate The Framework will support the delivery collection of food waste for recycling at of multifunctional landscapes which least weekly from households. will be dependent on the local context The legal requirement for separate and needs and must be resilient to our collections of food and garden waste will changing climate. be enacted by secondary legislation and Government has allocated £6.6m to a Net statutory guidance that will set out details, Zero Land Use Research & Development commencement dates and requirements. programme over the spending round Separately collected food waste must be (SR) period (2022-2025). The research recycled or composted. The government’s programme’s aim is to provide government preference is for food waste to be with the capability and evidence to develop collected for treatment by anaerobic and deliver a strategic and operational digestion (AD), which produces biogas approach to land use change for net (which can be upgraded to biomethane) zero and environmental recovery, whilst and by-products, such as digestate. In maintaining food security. addition to generating renewable energy, The research programme contributes AD is recognised as a form of recycling to developing modelling capability and activity where it recycles nutrients, and the evidence on spatial land allocation, resulting digestate can be spread to land impacts of land-use change on ecosystem creating a more circular economy. The services and biodiversity and attitudes use of food waste as a feedstock delivers and behaviours towards land-use change. significant carbon savings over sending The Programme combines in-house and food waste to landfill. Digestate produced commissioned research. One of the land- from food waste and other wastes must use changes in scope of the programme is comply with the Anaerobic Digestate the development of woody biomass. Quality Protocol (QP), or it should be managed as a waste product. The QP Outputs from this programme are establishes criteria for the production of supporting the development of the quality outputs from AD and its use in the Land Use Framework. Longer term designated markets such as spreading work will continue to underpin land use on agricultural land – including limits policy development. on the size of plastic contamination within digestate as set out within the Publicly Available Specification (PAS) 110 standard.71 71 https://www.gov.uk/government/publications/quality-protocol-anaerobic-digestate Biomass Strategy | 79 Waste that cannot currently be prevented, waste disposal contracts between waste reused, or recycled, including material operators and Local Authorities. that is too degraded or contaminated to recycle, is termed residual waste. Residual In 2022 there were 57 fully operational waste contains a mixture of biogenic EfW plants in the UK.72 The installed matter (unrecycled food waste, wood, capacity associated with EfW was cardboard, paper etc.), as well as fossil 1505 MW, and electricity generation carbon materials (plastics), and metals. It (associated with biodegradable energy is dealt with in three main ways: recovery from waste) is 2,378 GWh.73 A wide of energy to produce electricity and heat variety of wastes and residues can and through domestic Energy from Waste are used in the production of biofuels. (EfW) plants, production of refuse derived Examples include used cooking oil, which fuel (RDF) for export and energy recovery is typically collated from restaurants overseas, or disposal to landfill. According and converted into biodiesel, waste to our best estimates, EfW (even when starch slurry which can be fermented to producing electricity only) remains a better produce ethanol, and wastes such as option for processing residual waste than sewage sludge and manure, which can landfill in terms of both GHG emissions be used as an AD feedstock to produce and wider environmental impacts. If heat biomethane. Processing wastes into from the EfW process is utilised, it is an biofuels ensures effective energy recovery even more attractive option. Emerging from wastes that cannot be prevented, technologies also seek to process residual reused, recycled. Under the Renewable waste into transport fuels or chemical Transport Fuel Obligation (RTFO), there is streams that could be used to produce a feedstock assessment process which plastic products. considers wider impacts on factors such as the environment and agriculture before In England, as required under the awarding additional incentive. This helps to Environment Act 2021, government ensure that incentives are directed towards has set a statutory target under The utilising the most difficult to process (e.g., Environmental Targets (Residual Waste) contaminated) feedstocks. (England) Regulations 2023 to ensure that the total mass of residual waste (excluding Landfill Gas major mineral wastes) for 2042 does not The anaerobic breakdown of the exceed an average of 287kg per person biodegradable faction of residual waste in England. This is equivalent to a 50% in landfill produces methane. In modern reduction from 2019 levels. This reflects engineered landfill sites, the gas containing government’s ambition to minimise waste the methane is captured. Power generation and collectively means that the availability is currently the dominant use for landfill of residual waste for use as a feedstock will gas in the UK. decline over the next 20 years. Additionally, much of this municipal material is tied into An estimated 6.1 Mt of biodegradable EfW treatment via established long term waste was sent to landfill in the UK in 72 Tolvik – UK Energy from Waste Statistics 2022, based on Annual Performance Reports submitted to regulators for 2022. 73 https://www.gov.uk/government/collections/digest-of-uk-energy-statistics-dukes Table 6.4. 80 | Biomass Strategy 2020.74 In 2021, landfill gas from closed Industry reports that around 53 million and operational landfills was estimated to tonnes of raw sewage sludge are treated emit 13.6 Mt CO2e, which is ~72% of the per annum by ~8500 WwTWs. Although total emissions from the Waste Sector.75 In most sludges are processed by AD in 2021 732 Kt of methane from landfills was the UK (approximately 93% of sludge),78 captured (58%) of which the majority (662 the resulting digestates are typically Kt) was used for power generation and dewatered to produce a phosphorus- the rest (70 Kt) flared. Of the remainder an rich cake/biosolids. Nitrogen-rich liquors estimated 54 Kt of methane was oxidised are either returned directly to WwTWs for (4%) and 486 Kt (38%) emitted.76 In 2021 processing or first processed via nitrogen a reported 3,313 GWh of renewable removal systems that include nitrification electricity was produced from landfill gas.77 and denitrification. This results in the production of approximately 4 million Government policy recognises that tonnes of biosolids. Approximately 87% increased diversion of biodegradable (3.5 MT) of these are subsequently applied waste, along with increased landfill gas to agricultural land as a natural fertiliser capture from operating and recently with 6% used for land reclamation or closed, as well as legacy landfills, offers restoration, 4% incinerated and 3% used the best potential to reduce methane in industrial processes.79 emissions from the waste sector. Although we expect to see some Wastewater process changes in the wastewater treatment sector in future (for example, Organic materials generated by the to accommodate chemical phosphorus treatment of municipal sewage (sludge) sludges from final effluent polishing), we at wastewater treatment works (WwTWs) do not expect these to result in significant contain nutrients that could potentially changes to sludge production. It is be recovered and recycled back to predicted that growth should correlate to agricultural land. Sewage sludge can also population growth. be used as an AD feedstock for producing biomethane, and with the development A reduction in riverine discharges of of new technologies like hydrothermal untreated domestic sewage (and rainwater) liquefaction, could be converted from storm overflows under the Storm into advanced fuels like sustainable Overflows Discharge Reduction Plan80 is aviation fuel. likely to increase the amount of sewage treated at WwTWs. 74 UK statistics on waste: https://www.gov.uk/government/statistics/uk-waste-data/uk-statistics-on-waste 75 Emissions from Energy from Waste are not currently included in the Waste Sector for the purposes of reporting to the National Inventory. 76 UK Greenhouse Gas Inventory, 1990 to 2021 Annexes – Table A 3.5.4: https://uk-air.defra.gov.uk/ assets/documents/reports/cat09/2304171442_ukghgi-90-21_Annex_Issue1.pdf 77 UK Greenhouse Gas Inventory, 1990 to 2021 Section 7.2.3.2 Gas Utilisation: https://uk-air.defra.gov.uk/ assets/documents/reports/cat09/2304171441_ukghgi-90-21_Main_Issue1.pdf 78 Ofwat, 2021 Bioresources Market Review: https://www.ofwat.gov.uk/wp-content/uploads/2021/05/ Jacobs-report-Bioresources-Market-Review.pdf 79 assuredbiosolids.co.uk 80 https://www.gov.uk/government/publications/storm-overflows-discharge-reduction-plan Biomass Strategy | 81 Development of new WwTWs’ processes • Sugar beet and fodder beet – can be with lower carbon footprints may also alter converted into bioethanol using similar both the production and quality of treated techniques to those used for wheat. sewage sludge, but these impacts cannot • Oilseeds – the harvested crop is be quantified at this time. crushed and refined to produce The ‘sludge strategy’81 sets out biodiesel, although supply under the recommendations for sludge to continue RTFO of biodiesel from food and feed to be used as a beneficial resource. crops is minimal as the RTFO focusses Application to farmland is the typical on biofuels derived from wastes and means of disposing of sewage sludge. residues to minimise indirect land use However, in autumn and winter this is change impacts. associated with biosolid application rates Demand for food and feed crops as that may exceed soil and crop need and biomass feedstocks so can cause the farmer accepting the biosolid to be in breach of the Farming The demand for UK produced food Rules for Water (FRfW).82 There is the and feed crops as used for example in potential for an accumulation of sludge bioethanol production or AD are subject to with both a risk to operation at the global market prices and supply. Currently, WwTWs and risk to human health, wildlife no data is available for the UK-wide area and the wider environment. of maize produced for AD; however, the government’s June Survey of Agricultural Biomass Feedstocks: Use and Horticulture asked farmers in England to specify the end purpose of their maize of conventional arable food/ for the first time since 2014. feed crops Food and feed crops are used for a range The demand for UK produced crops is of bioenergy uses, and many conventional subject to global market prices and supply. technologies for bioenergy conversion Strains of wheat grown in the UK are of a were developed with food and feed crops specification for food, feed and bioenergy in mind. Wheat, maize and sugar beet are standards, so that there is in-built all used in UK bioethanol production and flexibility for farmers to ensure an end-use maize and forage grasses in AD for the market for their product. For farmers, the production of biogas (and biomethane). opportunity to sell into bioenergy offers a secondary market for their surplus or lower In terms of biofuel production, the main UK quality crops and associated agricultural crops used include: residues. The production of biofuels also produces valuable by-products including • Wheat – can be converted into protein rich animal feed which is used by bioethanol using enzymes and livestock farmers. fermentation technology. 81 https://www.gov.uk/government/publications/environment-agency-strategy-for-safe-and-sustainable- sludge-use/environment-agency-strategy-for-safe-and-sustainable-sludge-use 82 https://www.gov.uk/government/publications/applying-the-farming-rules-for-water/applying-the- farming-rules-for-water 82 | Biomass Strategy The government’s policy on the use of food up of domestic wood pellet and chip and feed crops for energy is to proceed production could act as a catalyst. The with caution taking advantage of the UK Forestry Standard offers a robust environmental opportunities they can offer, framework for woodland creation and while safeguarding against its potential management which should guide disadvantages. Whilst growing crops for the harvesting of biomass from our the biofuel sector offers farmers flexibility domestic woodland resource. However, and additional routes to market for their increasing the level of harvesting in harvest, consideration must also be given existing woodlands has the potential to to land biodiversity or carbon-store value. increase land use, land use change and Therefore, the drive should not be on food forestry (LULUCF) GHG emissions, which and feed crops. The government supports will be an important consideration of the use of waste feedstocks in AD policy development. alleviating using maize as a purpose crop. Government will continue to monitor and The future availability of biomass evaluate agricultural land use change. feedstocks will be influenced by a number of the policies set out in the England Low carbon transport fuels in the UK Trees Action Plan, particularly those are predominately waste-based - in relating to future regulatory reform, timber 2021, 76% of Renewable Transport Fuel in construction and the forthcoming Obligation (RTFO) fuel was produced from revision to the Tree Health and Woodland renewable wastes. The RTFO provides Resilience Strategy. We are also a double reward for the supply of waste- considering biomass in the ongoing review based fuels, incentivising their use over of the UK Forestry Standard. crop-based fuels. Furthermore, the RTFO has a tightening crop cap, which limits the In conventional harvesting operations, amount of crop that can be used for low about 20% of cut wood is left on-site as carbon fuel production. residue or branches and foliage. Some of these residues need to be left on- As detailed in Chapter 2, policies are in site for reasons of soil protection and place to limit the amount of food and soil sustainability, but some could be feed crops used for renewable energy extracted for biomass without negative generation to minimise impacts on environmental impact. We are currently food security. undertaking research into this and will provide more information publicly once Opportunities to scale up it is available. domestic wood pellet production There is scope for increasing biomass from existing woodlands and feedstock from existing levels of timber forests processing, as long as the biomass Existing woodlands in the UK represent a sustainability criteria are met. Wood potential material and feedstock resource, processing co-products (i.e., sawdust both from harvesting residues associated from timber mills) are already fully with commercial timber production and utilised as bioenergy. An increase in UK from bringing woodland into management, domestic timber production would also predominantly hardwood. The scaling increase biomass available from wood processing co-products. Biomass Strategy | 83 Unmanaged broadleaf woodland resource, from international sources (net imports). particularly in England, where 70% is Biomass imports primarily composed of reported as unmanaged, offers potential plant biomass (i.e., wood pellets, straw, as a significant feedstock (in England, and other plant-based biomass), waste potentially 1 million oven dried tonnes wood, wood, and liquid biofuels. Plant (ODT) per annum) for biomass, timber and biomass (mostly wood pellets) made up other wood products. Bringing woodlands 61% of all biomass imports in 2022 and into management is a recognised policy are used for renewable heat and electricity for improving habitat condition by opening production in the form of wood pellets.83 up the canopy allowing the ground In 2021 the UK imported c. 9.1 million flora to flourish. tonnes of wood pellets (a 1% increase on 2020) for renewable energy production, To help bring more woodlands into with the majority (c. 60%) coming from management, we are already helping the USA, 18% from EU countries (Latvia, more owners manage more woodlands Portugal, and Estonia), and 16% from by providing Countryside Stewardship Canada, and the remaining pellets deriving woodland management planning grants, from Brazil and Russia.84 infrastructure grants and woodland improvement grants. The Woods into In response to Russia’s illegal invasion Management Forestry Innovation Funds of Ukraine, we expect sourcing from are part of government’s Nature for Climate Russia to have ceased in 2022 in line with Fund, aim to encourage and broaden policies requiring wood pellets to meet the innovation in forestry. The second round ‘Preferred by Nature’ requirements,85 and closed in May 2022 and included Routes actions by businesses to end sourcing to Market for Ash Timber Innovation Fund, from the country. Temporary Infrastructure Innovation Fund, Regional Woodland Restoration Innovation In the transport sector, renewable fuels Funds and the Timber in Construction from imported feedstocks made up 90% Innovation Fund. These funds are aimed of total renewable fuels in 2021. The at forestry businesses and conservation largest single share of feedstock was used organisations who are in a position cooking oil (UCO) from China for biodiesel, to help owners better manage their which made up 23% of renewable fuel existing woodlands. supplied. The most widely reported source for bioethanol supplied to the UK in 2021 was corn from Ukraine, which International sources made up 7% of renewable fuel supplied. Overall, feedstocks from China, USA, UK, In 2022, 34% of biomass feedstocks Ukraine and France accounted for 59% of used in renewable energy production the renewable fuel used in the transport (heat, electricity, and transport) were sector in 2021.86 83 https://www.gov.uk/government/statistics/renewable-sources-of-energy-chapter-6-digest-of-united- kingdom-energy-statistics-dukes Table 6.1. 84 https://www.forestresearch.gov.uk/tools-and-resources/statistics/forestry-statistics/ 85 https://www.ofgem.gov.uk/sites/default/files/docs/2021/04/sustainability_self-reporting_guidance_ final_2021.pdf 86 https://www.gov.uk/government/statistics/renewable-fuel-statistics-2021-final-report/renewable-fuel- statistics-2021-final-report 84 | Biomass Strategy Biomass used for renewable energy may evolve over time for other feedstocks generation is incentivised in various as well, as demand for biomass scales up government schemes, which all require around the globe. As global competition for compliance with biomass sustainability biomass evolves and increases over time, criteria. We intend the sustainability of we expect the UK’s absolute share of global biomass to continue to be a central pillar traded biomass to decrease. for biomass use in the UK in the future. Overall, the potential total availability of We expect biomass imports to continue biomass from imports varies significantly to play an important role in providing between the two scenarios presented sustainable and cost-effective biomass here. Total imported supply in the supply that the UK will need for a variety ambitious scenario varies between 405 of biomass uses across the economy. PJ in 2025 and 622 PJ in 2050 (Figure However, we recognise that there will 4.5), with some variability in the years in be increasing competition for biomass between due to variations in potential feedstocks from other countries as these global production and demand (Box 4.2). countries implement decarbonisation In contrast, total potential imported supply policies. Well-established supply chains and varies between 166 PJ in 2025 and 124 where possible, long term supply contracts PJ in 2050 in the restricted supply scenario are important factors in ensuring stability, (Figure 4.5) In 2025 agricultural residues cost-effectiveness, and continuation of make up the largest share of imports in the imports. The primary factors determining ambitious scenario, with sawmill residues the volumes of biomass the UK will be and small roundwood contributing over able to import include global competition half as much of supply than agricultural for biomass resources, developments residues. In contrast sawmill residues, in international biomass production and agricultural residues and small roundwood transport infrastructure, expansion of global contribute similar levels of supply in the markets, and the price at which these restricted scenario. biomass feedstocks can be accessed. These factors become more uncertain the In 2050, availability of sawmill residues and further we look into the future. Therefore, small roundwood decreases significantly the future potential supply to the UK from the 2025 levels in both scenarios. from imports is inherently uncertain and Agricultural residues and energy crops challenging to determine with accuracy. dominate potential availability of imports in 2050 in both scenarios. In the ambitious It is important to recognise that not all scenario availability of global agricultural biomass feedstocks are currently well residues increased to 247 PJ in 2050 (from suited to be imported. Wood pellets and 171 PJ in 2025), while availability of global liquid biofuels already have well-established energy crops increases to 245 PJ in 2050 international markets supported by long from 4 PJ in 2025, showing the importance term, stable policies in the UK, Europe, of global energy crop production to and elsewhere, such as those incentivising potential future availability of international renewable transport fuel use (e.g., RTFO), biomass supply to the UK. As noted, our and renewable electricity production (e.g., scenarios assume that bioenergy crops RO in the UK, Renewable Energy Directive are grown on abandoned arable land, and in the EU). International markets and trade that there is sufficient land available to Biomass Strategy | 85 produce these crops on land not in direct In both scenarios, the availability of competition with other activities, such as lignocellulosic feedstocks (plant-based production of food and feed crops hence biomass) (Figure 4.5) surpasses those of no indirect land use change occurs. Our other feedstocks, including for example, assumption that production of bioenergy food and feed crops or wastes and crops can only happen on abandoned residues used in biofuel production. arable land is important for ensuring While availability of food and feed crops that the increase in the production of remains relatively stable in these scenarios, these crops is achieved without adverse significant changes are expected in carbon, biodiversity, water, and other the lignocellulosic feedstocks. In both ecosystem service impacts. Other factors scenarios the potential future availability that will support the growth of bioenergy of biodiesel from UCO/tallow decreases crop production will be increased yields significantly (from 36 PJ in 2025 to achieved by advancements in crop 14 PJ in 2050 in the ambitious supply species, and innovations in feedstock scenario and from 32 to 3 PJ in the productions and processing. restricted scenario). A 600 A A A A A Bioenergy (PJ) 400 200 R R R R R R 0 2025 2030 2035 2040 2045 2050 Year Key A Ambitious Global energy crops R Restricted Global 1G bioethanol Global agricultural residues Global 1G biodiesel Global sawmill residues Global Biodiesel from UCO/Tallow Global small roundwood Figure 4.5: Potential future availability of different biomass feedstocks to the UK from international sources in the restricted and ambitious supply scenarios. 86 | Biomass Strategy Box 4.2. International agricultural markets, and biomass for energy An appreciation of the workings of international agricultural markets provides a framework for thinking about the likely impacts of using different forms of biomass for renewable energy, on global agricultural prices and food security. The world produces over 2.5 billion tonnes of grain every year. The most important grains and oilseeds are maize, wheat, rice and soybeans, and the biggest trade flows are typically from North and South America to Asia. Key features of international grain and oilseeds markets include the following. • Patterns of production and trade are constantly evolving. For example, over the last 40 years Brazil’s share of global soybean exports has grown from under 10% to about 50% whilst the US’s share of global wheat exports fell from around 40% to around 10%. • Supply and demand are typically relatively insensitive to price changes in the short run. • Prices are sensitive to changing expectations of supply and demand. This is most pronounced when projected end stocks are relatively tight, especially in major exporters. • Prices can be volatile, and supply shocks can prompt significant price spikes. • There are significant amounts of substitution between arable products (in consumption and production) so price movements in one can result in price movements in the others. • International price transmission to national markets may be more or less than 100% and will vary over time and by country. It is typically affected by exchange rate movements, changes in regional supply and demand balances, movements in international freight rates and domestic trade policies. • Internationally, growing shares of key crops are used to produce biofuels (currently around 15% of both global maize and vegetable oil production). Biomass Strategy | 87 A sustained increase in global prices for arable crops will typically result in a combination of: • Draw downs in global stocks, if there is scope; • Reduced consumption internationally, concentrated in those parts of the market with most scope to contract, or the least scope to afford higher prices; and • An international supply response in the next production season, partly from the intensification of production on existing arable land, and partly from expansion onto ‘new’ arable land. This has important implications. For example, if there is an increase in the global demand, or expected future demand, for agricultural feedstocks for use in biofuels or other forms of renewable energy production, or if there is additional competition for arable land from the production of other forms of biomass, then key variables will be affected, by more than would otherwise have been the case: • Internationally, prices for arable crops would be higher; • Prices for agricultural products where arable crops are inputs, such as meat, eggs and dairy, would therefore be higher; • International consumption of arable crops would contract across all potential uses; and • In the subsequent year, there would be an international supply response (partly through intensification of production on existing land, and partly through bringing new land into production). Furthermore, in times of tight markets, international prices may spike further than they otherwise would if biomass end-use demand remains insensitive to global prices, leading to important distributional issues. In the UK, policies are already in place to reduce impacts of biomass use on agricultural markets. For example, UK biofuels policy caps the contribution of biofuels from food and feed crops under the Renewable Transport Fuel Obligation (RTFO). In addition, the forthcoming Sustainable Aviation Fuel mandate excludes fuels produced from crops. Section 2.4 details how the government intends to explore options to incorporate ILUC reporting into other schemes. 88 | Biomass Strategy Our analysis show that the source of towards our decarbonisation. As outlined imports is wide-ranging across the globe: in Chapter 2, we intend to consult on the largest share of agricultural residues actions to strengthen the UK’s biomass is derived from Brazil, with the USA, sustainability criteria to ensure biomass other countries in South and Central continues to deliver renewable and low America, Europe, India and China, and carbon energy. other Southeast Asian countries also contributing considerable volumes of It is important to recognise that there agricultural residues to the global market. is uncertainty over long term market Forest-derived biomass (e.g., small developments of all biomass feedstocks, roundwood and sawmill residues) are which will ultimately determine the supplied largely by African countries, India, origins of feedstock supply to the UK. Europe, Brazil and other South and Central Nevertheless, it is reasonable to expect American countries in the availability global bioenergy production to scale model. Meanwhile, energy crop production up and diversify over time as countries is widely dispersed across the world, as increase production to support their production increases in most countries and move away from fossil fuel use. This regions, with areas, such as Europe, North will ultimately lead to a more resilient and South America, and Southeast Asia international biomass feedstock market having a significant role in global supply. As with greater number of countries supplying detailed earlier, our assessment of future feedstocks, which will help reduce future availability considers only the sustainable supply risks. This is in line with projections supply. Government is clear that regardless by other biomass demand and supply of where biomass is sourced from it availability, such as the IEA.87 needs to be sustainable for it to contribute 87 IEA, 2021. Net Zero by 2050: https://www.iea.org/reports/net-zero-by-2050 Biomass Strategy | 89

4.3 Innovation opportunities for scaling biomass feedstocks in the UK Biomass Feedstocks The programme awarded 12 contracts,91 with projects concluding in March 2025. Innovation Programme In Phase 1, projects received full funding to The Biomass Feedstocks Innovation produce robust plans for innovations that, Programme aims to increase the if implemented, would make a positive production of sustainable UK biomass material contribution to UK feedstock feedstocks by funding innovative ideas supply. A diverse range of biomass that address barriers to their production. feedstocks and technologies were It supports projects seeking to improve covered, ranging from growing microalgae productivity, through breeding, planting, from whisky manufacturing, increasing cultivating and harvesting various production of hemp, improving the planting feedstocks. The programme forms part efficiency of trees with bio-based tree of government’s £1 billion Net Zero shelters, and exploring ways to harvest Innovation Portfolio (NZIP),88 which aims bracken with drone assisted technology. to accelerate the commercialisation of innovative clean energy technologies and In Phase 2, there are 11 innovation processes through the 2020s and 2030s. projects and 1 multi-site demonstrator project, ‘Biomass Connect’.92 The The Biomass Feedstocks Innovation innovation projects cover a range of Programme89 has awarded £36 million biomass feedstock types: Miscanthus, across two phases. Phase 1 (design and Willow, long- and short-rotation forestry, feasibility) ran from July 2021 to March macroalgae, and heather; and for the 2022 with £4 million of funding awarded different biomass feedstocks, a range of across 25 contracts.90 Phase 2 builds on innovations focused on: breeding and Phase 1, providing £32 million in funding propagation, cultivation and harvesting, to take projects from the design stage on-farm processing, and decision through to innovation demonstration. As support systems. such, the Phase 2 competition was open to applications from projects supported under Phase 1. 88 The Net Zero Innovation Portfolio: a £1 billion fund aiming to accelerate the commercialisation of low- carbon technologies, systems and business models in power, buildings, and industry. https://www.gov. uk/government/collections/net-zero-innovation-portfolio 89 https://www.gov.uk/government/publications/biomass-feedstocks-innovation-programme- successful-projects 90 https://www.gov.uk/government/publications/biomass-feedstocks-innovation-programme- successful-projects/biomass-feedstocks-innovation-programme-phase-1-successful-projects 91 https://www.gov.uk/government/publications/biomass-feedstocks-innovation-programme- successful-projects/biomass-feedstocks-innovation-programme-phase-2-successful-projects 92 https://www.biomassconnect.org 90 | Biomass Strategy Based on engagement with funded is a long term (c. 20 year) commitment projects in Phase 2, a challenge and barrier and so with many markets around different faced by projects in this sector is the technologies and sectors still emerging uncertainty around the end use; for most (e.g., BECCS, gasification, biochar, verified of the land-based biomass crops, planting carbon removal credits), policy is vital. Case study on the multi-site demonstrator platform: Biomass Connect The Biomass Connect project innovations are evaluated and has created a demonstration demonstrated to a broad range of and knowledge sharing platform stakeholders across the UK; and 3) to showcase best practice and to enable the sharing of knowledge, innovations in land-based biomass experiences and case studies across feedstock production. Led by the the industry and contribute to relevant UK Centre for Ecology & Hydrology, policy development. Biomass Connect has three aims: 1) to provide robust, independent During the first year, the project information on biomass feedstock showcased harvesting a range of performance, agronomy, economics biomass feedstocks, and successfully and environmental benefits to planted eight Hub sites with the same landowners and land managers; 2) to ten biomass crops for comparisons ensure that geographic variations in of establishment and growth between biomass feedstocks and relevant different areas of the UK. Biomass Strategy | 91 Case study on an innovation: Envirocrops The Envirocrops93 project has base to identify biomass crop types created a web-based app, which and varieties suited to different forms a decision support system for land areas; make estimates of land growers and end-users considering required for desired yields and land-based biomass feedstocks. overall economic potential; indicate The project team is utilising a production timescales and costs. range of data from across industry, consultants, and academia, to create Envirocrops is looking to build up a a series of linked calculators, decision directory of the main stakeholders, trees, and digital mapping tools. such as growers, local contractors, Envirocrops, will therefore act as a and end users, and act as an digital consultant, providing users with online trading platform with a local the confidence to de-risk biomass dimension. The team have also crops as an investment choice. developed an engaging game called ‘Cropper’, which provides a useful Led by the Agri-food and Biosciences way of educating the next generation Institute in Northern Ireland, of land use decision makers. the innovation uses a wide evidence 93 https://envirocrops.com 92 | Biomass Strategy Case study on an innovation: New Energy Farms New Energy Farms, based in The project is also exploring Wiltshire, are leading an energy grass agronomic improvements to energy focused project, demonstrating new grass crops, by evaluating cheaper varieties appropriate for the UK and and easier ways of multiplying and enhancing planting and establishment planting, utilising the company’s practices of the crops. The project is patented artificial seed technology. testing varieties from existing global New Energy Farms see the breeding projects, reducing the time combination of higher yielding required to bring new, higher yielding varieties and improved methods variety options to the UK market. It of establishing energy crops as has the added benefit of allowing encouraging more energy crop consideration of varieties optimised planting and increasing biomass for phytoremediation, producing production. biomass on metal contaminated land (spoil land) and degraded wetlands, which are a source of GHG emissions. New Energy Farms Biomass Strategy | 93 Hemp as a feedstock for second generation bioethanol production, and as insulation Hemp is a long-standing crop in UK material. UK cultivation is estimated at 800 agriculture with a variety of uses. A strong hectares annually, by around 20 farmers. resurgence of cultivation and use is now However, there is growth potential. gathering momentum globally, driven by the need for spring cropping and greater Government is currently examining hemp diversity in the farmed environment. cultivation from a grower and consumer standards perspective, alongside its Many forms of carbon sequestration, environmental benefits and efficacy as including enhanced soil organic matter an alternative break crop. Government content, use in many carbon-based, will work to help farmers understand the renewable alternatives to building agronomy of the crop and if it is suitable materials, plastic and other synthetics for their land and planting plans. The is driving interest in this crop. New food need to protect citizens from the potential and health products using extracts harm from production of narcotics from from the seeds, flowers and leaves are high tetrahydrocannabinol (THC) varieties also emerging. means that cropping requires a mandatory licence, obtained from the Home Office. Hemp can provide good economic returns, This can be perceived as a barrier to with low agrochemical input requirements growing hemp, in terms of cost and and great potential for reduced tillage and regulatory burden. Departments across improved soil health. Hemp can produce government are working together to help around 8 tonnes of dry biomass per farmers navigate the licencing system and hectare and can be added into the normal make sure all related processes are fit for annual farm rotation thereby not competing purpose; for example, there have been with food supplies. claims that delays in licencing paperwork can hinder the planting window and we are Plant breeding to produce high biomass working across government to resolve this. varieties for the UK climate is now a priority for those in the sector alongside the selection of the best existing cultivars. The recent Hemp-30 project conducted by the University of York and funded by the government’s Biomass Feedstocks Innovation Programme, drew on their expertise in molecular plant breeding technology to fast-track improvement of hemp traits to meet the needs of developing markets. Researchers targeted traits such as biomass yield, fibre quality and drought resistance to produce varieties of hemp that are best suited to UK growing conditions. Hemp offers potential to supply biomass pellets to the UK bioenergy sector, 5 Priority use of biomass Biomass Strategy | 95 Our Key Commitments • Government will continue to support policy for biomass use based on guiding principles that address sustainability, air quality, net zero and the circular economy & resource efficiency. Government will be launching a series of sector- specific consultations in 2023 and 2024; these will support the implementation of these guiding principles, as relevant to different sectors in the economy. • Government’s approach to achieving net zero is flexible and technology agnostic, acknowledging that pathways may change over time, in response to new technologies and commercial opportunities that may emerge in the future. We will continue to promote and support innovation for development of biomass technologies. • In developing policy that directly or indirectly touches on biomass availability and use, government will take into account wider strategic issues around energy security, electricity prices, land use and technology readiness and deliverability. Government will also take into account matters that are of concern to the public including impact on the environment and need for robust evidence base to support decision making. • In the short term government will continue to facilitate biomass deployment through a range of incentives and requirements covering power, heat and transport. • In the medium term government will look to further develop biomass uses in certain power, heat and transport sectors to support delivery of Carbon Budget 6, but with a view to transition away from unabated uses of biomass where possible to uses such as bioenergy with carbon capture and storage (BECCS), which are critical to meeting net zero. • Biomass use in the long term is difficult to predict with precision owing to wide-ranging uncertainties and evidence gaps but current modelling implies that uses that are combined with BECCS will contribute the most towards net zero. Biomass could also have some role in hard-to-decarbonise sectors that cannot deploy BECCS. • Government will continue to build a robust evidence base for biomass uses across different sectors and technologies in order to support optimal policy choices in achieving net zero and energy security targets. 96 | Biomass Strategy

5.1 Introduction Biomass is a versatile low carbon resource 6 (medium term view) and a series of with uses that span the economy, from illustrative scenarios (using whole energy energy generation to the synthesis of system modelling) to outline the potential bioproducts and materials, as well as the role of biomass to meet net zero (long delivery of negative emissions. The versatility term view). The assessment also takes into of biomass means that it is a highly consideration wider strategic context around complex and interconnected resource with energy security and economic growth to competing and complementary uses across inform this assessment (Section 5.3). the economy. As highlighted in Chapter 3 and 4, there are interactions with wider The analysis presented within this chapter environmental services which need to be is centred around the biomass availability carefully considered when utilising biomass. scenarios presented in Chapter 4. It presents a range of illustrative scenarios for This chapter sets out a priority use biomass use across the UK economy to assessment that informs the best use of provide a view on the scale and impact of biomass in the short (2020s), medium biomass, in meeting UK’s net zero target. (2035) and long term (2050) to meet our net zero target, based on our existing evidence We also recognise that this is an area base. The assessment is centred around undergoing significant evolution with a series of guiding principles as set out in new technologies and data emerging Section 5.2. This assessment is supported and acknowledge the need for ongoing by analysis of the current biomass use review of the government’s evidence base landscape (short term view), analysis of the supporting this assessment, especially with role of biomass to meet Carbon Budget regards to prioritisation of biomass use in the longer term.

5.2 Principles of best use of biomass The Biomass Policy Statement94 set out a for biomass use, such as on energy security. series of guiding principles that are used here to support the priority use assessment The biomass priority use principles address for biomass, recognising it is a limited four main areas: sustainability, air quality, resource that will require targeted uses net zero and the circular economy & to achieve the best outcomes. These resource efficiency. These principles principles should be considered when were developed through consultation developing sector specific policies related with stakeholders (including through the to biomass use, along with other relevant responses to the Biomass Strategy Call factors relating to the wider strategic context for Evidence).95 94 https://www.gov.uk/government/publications/biomass-policy-statement-a-strategic-view-on-the-role- of-sustainable-biomass-for-net-zero 95 https://www.gov.uk/government/consultations/role-of-biomass-in-achieving-net-zero-call-for-evidence Short term (2020s) Medium term (2035) Long term (2050) Be compatible with current and emerging sustainability criteria based Be compatible with the future cross-sectoral sustainability on latest evidence considering a framework and associated sector specific criteria and legislation* Sustainability range of economic, social, and environmental impacts.* Be compatible with regulatory requirements on air quality and compliance with statutory air quality targets and ceilings. Wherever practicable, biomass use should be carried out away from populations and at a scale where Air quality mitigation techniques can be applied economically, to minimise public health impacts. Utilise existing infrastructure and planned investments to provide Contribute to carbon budgets and net zero by providing greatest life through carbon abatement existing cycle GHG emissions savings**, considering biomass feedstock and emerging policy frameworks. availability and cost-benefits. Net Zero Support the achievement of our longer Integrate Carbon Capture, Usage, and Storage (CCUS) where term (over CB6 and net zero timelines) feasible to produce genuine negative emissions. Where CCUS is objectives for biomass end use, e.g., not feasible biomass is only used in harder to decarbonise sectors avoiding technology lock-in or not diverting with limited or no low carbon alternatives. investments in long-term solutions. Circular Be compliant with waste Be compliant with waste hierarchy principles and provide additional Biomass Strategy | 97 economy hierarchy principles. co-benefits and/or circular economy benefits. and resource efficiency *A consultation to support the development of a common sustainability framework for biomass use across the economy is being planned for 2024. **Compared to GHG emissions of appropriate counterfactual. Figure 5.1: Guiding principles for prioritising the uses of biomass in the short, medium and long term (updated). 98 | Biomass Strategy Following further policy development and Air quality stakeholder engagement, some minor amendments have been made to the Prioritising biomass use should priority use principles to strengthen them consider compatibility with relevant UK (Figure 5.1). The changes relate to the air quality requirements to minimise any sustainability principle which now reflect public health impacts. the commitments made in this Strategy to develop a cross-sectoral sustainability The use of biomass, and particularly its framework, which we intend to consult combustion, releases pollutants that on in 2024. As part of this consultation, can damage health. These will be more we will gather views on the details of the damaging in more densely populated actions set out in Chapter 2, including areas, and therefore biomass combustion on implementation routes considered by should, wherever practicable, be carried government, as well as the necessary out away from populations and at a scale monitoring, reporting, and verification where mitigation techniques can be (MRV) requirements. We recognise that applied economically. the priority use principles will need to be We will continue to work across updated as evidence evolves. government on the implications of the priority use principles and framework on Sustainability air quality. The regulatory framework for environmental permitting will continue to Biomass use should be compatible with reduce harm to health and the environment strict sustainability criteria. from the combustion of biomass, as well as anaerobic digestion (AD) and other biomass The priority use principles shown in Figure technologies. New regulatory standards will 5.1 have been revised to make clear also reflect detailed engagement between the need for biomass uses across the regulators and industry. (Further details on economy to meet existing sustainability the existing air quality regulations can be criteria applicable to the relevant sector in found in Chapter 3). the short term. (Table 5.1, Section 5.5.1). As the new cross-sectoral sustainability framework is developed (subject to Net zero consultation), any new government support for biomass use will be expected The determination of the priority use for to meet the requirements under the biomass in the short, medium, and long common sustainability framework. We term hinges on the scale and impact of anticipate that, over the medium to long its contribution towards the UK’s net term, biomass use across the economy zero target. should be compatible with the cross- The priority use principles (Figure 5.1) set out sectoral sustainability framework and guidelines for assessing whether a particular any additional associated sector-specific biomass end use should be a priority. criteria and legislation. In the short term, uses should avoid technology lock-in to avoid impacting our ability to meet carbon budgets and net Biomass Strategy | 99 zero in later timescales. This may require Circular Economy assessing whether a biomass use involves utilising existing infrastructure and planned Prioritising biomass use should investments. For example, in the electricity consider circular economy benefits and sector this may involve requiring new resource efficiency. and refurbished biomass plants to meet For pathways that use biogenic waste Decarbonisation Readiness requirements resources (a major feedstock group within (Chapter 7), meaning they are fit to deploy the scope of this strategy), this principle carbon capture in the future. is already being followed through the Considerations of the scale and impact implementation of the Waste Hierarchy,96 of the contribution towards carbon which should continue to be followed in budgets and net zero should become line with current government (England more prominent when supporting medium only) and devolved administration policies to long term policies for biomass use. and guidance. The UK government’s Here, outcomes that provide the greatest Resources and Waste Strategy for greenhouse gas (GHG) emissions savings, England97 sets out how we will preserve compared to alternatives, should be material resources by minimising waste, prioritised. This will require a whole system promoting resource efficiency and analysis that considers cost and benefits, moving towards a circular economy biomass feedstock availability and the wider in England (Figure 5.2). An addendum energy-system impacts of biomass use. to the Resources and Waste Strategy The following sections capture this principle which will focus on net zero, will be by considering the carbon abatement published this summer. potential and GHG emissions associated The waste hierarchy ranks waste with each of the biomass pathways in management options according to their scope of this strategy. The ability of the environmental impact. It informs wider technology or pathway to produce negative government priorities and policies, including emissions (including the scale and costs of the biomass priority use principles. The those negative emissions) is considered in waste hierarchy supports the circular the assessment. This is because negative economy and resource efficiency by emissions are needed to meet net zero to ensuring that waste is prevented where balance the residual emissions from hard- possible and that valuable resources to-decarbonise sectors, as set out in the remain in circulation for as long as possible, Net Zero Strategy. preventing resource depletion and reducing The net zero principle also allows for the the environmental costs of waste. Any biomass to be prioritised where there public body or business that handles are no other available alternatives for waste has a legal obligation to take all such decarbonisation. This recognises the fact measures as are reasonable, on the transfer that there are areas of the economy that of waste to apply the waste hierarchy as are hard to decarbonise e.g., transport a priority order to avoid waste in the first modes such as aviation and maritime, and instance, or during the transfer of waste to off gas grid properties. another owner. 96 https://www.gov.uk/government/publications/waste-management-plan-for-england-2021 97 https://www.gov.uk/government/publications/resources-and-waste-strategy-for-england 100 | Biomass Strategy Evolution of waste management practices In the past, most waste was dealt with by disposal, but over that will shift increasingly to recycling, reuse and ultimately prevention. 1 2 3 4 5 1990 2010 2020 2030 1 Prevention 2 Preparing for reuse 3 Recycling Using less material Checking, cleaning, Turning waste into a in design and repairing, refurbishing, new substance or manufacture. Keeping whole items or product. Includes products for longer; spare parts. anaerobic digestion reuse. Using less and composting. hazardous materials. 4 Other recovery 5 Disposal Includes materials Includes landfill, and form waste and some landfilling; also co-incineration incineration plants plants, and incineration plants (including gasification (including gasification and pyrolysis) that have R1 status. and pyrolysis) that don’t have R1 status. (See gov.uk for more information on how energy-from-waste plants can obtain R1 status). Figure 5.2 : Waste Hierarchy and the Evolution of Waste Management Practices98 98 https://www.gov.uk/government/publications/waste-management-plan-for-england-2021 Biomass Strategy | 101 A number of policies are also in set a 70% recycling by 2030 target. To development that will seek to minimise support this, NI has developed a number waste from arising in the first place and of strategies – the Energy Strategy,104 the increase the proportion of waste that is draft Circular Economy Strategy,105 the recovered for recycling. As announced in draft Green Growth Strategy106 and the the Environmental Improvement Plan,99 draft Environmental Improvement Plan.107 government published the Maximising The Welsh Government in 2021 published Resources and Minimising Waste its Beyond Recycling strategy.108 Wales has programme in England in July 2023.100 already increased recycling rates so that The programme will set out our priorities over 65% of municipal waste is recycled for action across seven main sectors – and is on track to meet its target of zero construction, textiles, furniture, electronics, waste going to landfill by 2025. The Welsh vehicles, food, and plastics, packaging and Government has set a 70% recycling single-use items – to manage resources target for 2025, alongside a 26% reduction and waste in accordance with the in waste and a 50% reduction in avoidable waste hierarchy. food waste (against a 2006-07 baseline). It has additional targets of a 33% reduction There are similar strategies currently in in waste and 60% reduction in avoidable place across the devolved administrations. food waste by 2030, with an overarching The Scottish Government has set out aim of achieving one planet resource use priorities for moving towards a more and zero waste by 2050. circular economy and a pathway to deliver its world leading climate change targets For the longer term, this principle also in its recent Circular Economy and Waste involves looking at the cascading use Route Map consultation (2022),101 and in principle identified in Chapter 2; that the update to the Scottish Government’s resources should be first prioritised for Climate Change Plan (2020).102 use and re-use sequentially in the order of appropriate resource quality at each These include proposed priorities and stage of the cascade chain – such as the actions to accelerate progress against its refurbishment of furniture for reuse and at waste, recycling and emissions reduction a later stage the use of waste timber to targets, including ending the landfilling of make panel board. Only when materials biodegradable municipal waste by 2025, are unsuitable for material use should they and recycling 70% of all waste. In Northern be used for energy recovery. Ireland, the Climate Change Act103 has 99 https://www.gov.uk/government/publications/environmental-improvement-plan 100 https://www.gov.uk/government/publications/waste-prevention-programme-for-england-maximising- resources-minimising-waste 101 https://www.gov.scot/publications/consultation-delivering-scotlands-circular-economy-route-map- 2025-beyond/ 102 https://www.gov.scot/publications/securing-green-recovery-path-net-zero-update-climate-change- plan-20182032/ 103 https://www.legislation.gov.uk/nia/2022/31/contents/enacted 104 https://www.economy-ni.gov.uk/publications/energy-strategy-path-net-zero-energy 105 https://www.economy-ni.gov.uk/consultations/circular-economy-strategy-northern-ireland 106 https://www.daera-ni.gov.uk/consultations/consultation-draft-green-growth-strategy-northern-ireland 107 https://www.daera-ni.gov.uk/consultations/environmental-plans-principles-and-governance 108 https://www.gov.wales/beyond-recycling 102 | Biomass Strategy This is to ensure biomass stays in in the UK as part of the sustainability circulation for the longest time possible criteria. To support this, work is underway before becoming waste or is used for to better understand biomass uses in energy production. Additional resource non-energy sectors such as chemicals efficiency can be achieved from certain and materials, which will help to clarify biomass pathways by ensuring that the the broader circular economy benefits by-products from production stages from biomass use. of either materials or energy vectors are used to make other products and The UK is also supportive of international materials which can be used elsewhere collaboration and coordination of action on in the economy, preventing them from biomass use and sustainability, including being discarded. To support a move that of the G20 Energy Transition Working towards a more circular economy, we will Group on the circular bioeconomy as make a further assessment on how best highlighted in Chapter 2 (Section 2.2). to adopt the cascading use of biomass

5.3 Wider Strategic context for Biomass Use The implementation of the principles to power the UK through affordable, described above requires consideration home-grown, clean energy. This follows of the wider strategic context for biomass the publication of the British Energy use across the UK economy. In meeting Security Strategy in April 2022.110 our primary objective to maximise the For the UK, this means a future in decarbonisation benefits from biomass, which we are more energy secure, which is a limited resource, we also which will support our objectives to need to consider the impact this might bring down energy bills and reduce have on wider government priorities and inflation. Therefore, where the UK still ambitions. Ensuring that the UK is on track needs to import biomass or biomass to meet its legally binding net zero target fuels, those imports should be built while also supporting economic growth on strong relationships with trusted by significantly speeding up delivery of partners and allies that can ensure a network infrastructure and domestic energy sustainable, stable and lowest cost production is a priority for government. source of supply. This highlights the Any future policy on biomass use across all importance of ensuring the UK biomass sectors should take into consideration: sectors remain competitive on the global market for a range of biomass • Energy security: In March 2023 the feedstocks, which is currently being government published the Energy achieved by having a stable biomass Security Plan109 which set out a vision policy landscape. 109 https://www.gov.uk/government/publications/powering-up-britain 110 https://www.gov.uk/government/publications/british-energy-security-strategy Biomass Strategy | 103 • Land Use: Future policy development Transport Fuel Obligation (RTFO). to support biomass use in the UK We have commissioned an assessment needs to consider the impact of of how ILUC could be reported increased demand for domestic under all biomass support schemes biomass feedstocks on domestic (See Section 2.4). and global land use. As discussed in Chapter 4, the government will publish • Sector-specific objectives relevant a Land Use Framework for England to biomass use in the short, medium later this year. The Framework will take and long term needs to be considered a systems approach to set out how we as part of any assessment on best use can deliver multifunctional landscapes of biomass across the UK economy. that are resilient to our changing climate These relate to hydrogen production, whilst meeting our needs for net zero, greenhouse gas removals (GGRs), food production and environmental low carbon fuels, including aviation, recovery. Our existing biomass industrial low carbon fuel switching and sustainability criteria already consider biomethane production. The relevant land use, as direct land use change Strategies’ specific objectives are is already regulated, while reporting introduced in Chapter 1, and in further requirements exist for indirect land use detail in Chapter 7. change (ILUC) within the Renewable 104 | Biomass Strategy

5.4 Principles and conditions for biomass in achieving net zero: The Public Dialogue Project The principles and conditions for biomass • On impact on the environment: use in achieving net zero, developed The priority use framework takes into during the Biomass Public Dialogue account wider environmental impacts of Project,111 have been considered as part biomass use through the sustainability of the priority use assessment set out principle which means that biomass in this chapter: uses should align with the UK’s current and future sustainability criteria • On cost and financing: The priority (Chapter 2.4). use assessment includes careful consideration of system-wide costs • On prioritising natural resources: of biomass use and comparison with The priority use principles include alternative solutions to biomass in each circular economy and maximising sector. See Section 5.5.3. resource efficiency aims which is designed to ensure biomass uses • On feasibility and evidence base: continue to align with the waste The analysis for the priority use hierarchy and can provide additional assessment is built on robust evidence circular economy benefits via the base on biomass feedstock availability products or co-products resulting from and end uses including biomass biomass pathways. technology readiness and feasibility collected from a broad range of • On impact on society: The priority sources. The priority use assessment use assessment includes domestic also includes a consideration of and global land use considerations potential supply and demand side within the future sustainable biomass risks of biomass in the achievement availability estimates used in the of decarbonisation goals set out in analysis (see Technical Annex). In this Strategy (see further detail in addition, the sustainability and air Technical Annex). quality principles were developed to ensure impact on society is minimised. 111 https://www.gov.uk/government/publications/biomass-strategy Biomass Strategy | 105

5.5 Prioritising biomass usage in the short, medium and long term Given the complexity and scope of the analysis is used to understand the supply priority use principles, a range of analytical and demand constraints for biomass into approaches have been used to present the mid-2030s. For the long term, a whole a current government view on the priority systems energy model (UK TIMES) is used uses of biomass in the short, medium and to understand the role of biomass under long term. For the short term view, the the existing net zero strategy pathways. current policy landscape, investment, and Additional sector-specific context is also infrastructure across the different end-use presented and incorporated into the longer sectors are analysed to establish where term view where there was insufficient biomass has a continued role to play. For evidence to feed into our main modelling. the medium term, our Carbon Budgets 6

5.5.1 Current Biomass end-use policy landscape (Short term view) This section provides an overview of how In 2022 it was estimated that bioenergy biomass is currently used and incentivised provided 8.6% of the UK’s energy across the different sectors, including a supply,112 most of which was supported by view of existing and planned support in government. Table 5.2 shows the existing the short term (up to and including Carbon and planned government support for Budget 5 and beyond in some instances). biomass use across different sectors in the Biomass already plays an important role UK over the short term. as a low carbon resource across the UK economy (Table 5.1). 112 https://www.gov.uk/government/statistics/energy-chapter-1-digest-of-united-kingdom-energy- statistics-dukes 106 | Biomass Strategy Table 5.1: 2022 Biomass use across the UK113 Usage Source Terawatt-hours (TWh) Used to generate electricity Solid biomass 62.2 (plant and animal) Biogas (landfill, sewage 21 and anaerobic digestion) Biodegradable wastes 19 Bioliquids 0.3 Used to generate heat Solid biomass (wood, 32.7 waste wood, plant and animal biomass) Biogas (landfill, sewage 2.1 and anaerobic digestion) Biodegradable wastes 1.4 Bioliquids 0.5 Used as transport fuels114 Biodiesel 13.7 Bioethanol 7.2 Other fuels (e.g., biomethane, 6.4 hydrogenated vegetable oil (HVO), sustainable aviation fuel (SAF), drop-in fuels) Biogas (biomethane) injected Anaerobic Digestion 6.2 into the grid Sewage gas 0.6 Total 173.5 113 https://www.gov.uk/government/statistics/renewable-sources-of-energy-chapter-6-digest-of-united- kingdom-energy-statistics-dukes 114 RTFO publications 2022: https://www.gov.uk/government/collections/renewable-fuel-statistics Biomass Strategy | 107 Table 5.2: Summary of existing policy measures that support biomass across different UK sectors Area Policy measures that Timeline support biomass use Renewable Electricity Renewable Obligations 2002-2017, with support for last entrants lasting until 2037. Feed in Tariff (FIT) 2010 – 2019 (with some exceptions due to COVID-19). Existing accreditations run for between 10 and 25 years. Contract for Difference 2017 – ongoing. (CfD) Smart Export Guarantee 2020 – ongoing (no end date)115 (SEG) Biomethane injection Non-Domestic 2018-2021. Closed to new applicants. to the gas grid – Renewable Heat Existing contracts run until 2041116 Renewable Heat Incentive (NDRHI) supporting biomethane injection into the grid. Green Gas Support 2021-2025.117 Expected to support Scheme (GGSS) biomethane injection until early 2040s. Participants are also eligible to submit claims for the RTFO, subject to eligibility criteria. Renewable Heat – Domestic Renewable 2018-2021. Closed to new applicants. domestic heating and Heat Incentive (RHI) Existing contracts run until 2029.118 non-domestic heating NDRHI As above on NDRHI GGSS As above, using biomethane injected into the gas grid Renewable Heat – NDRHI As above on NDRHI Industry GGSS 2021-2025. As above, using biomethane injected into the gad grid. Renewable Transport RTFO Since 2008. No end date, rising targets Fuels set to 2032 and will continue at that level. Upcoming Mandate Separate SAF mandate is to apply from for SAF 2025 onwards 115 There is no current end date for the SEG policy. Individual contracts agreed by biomass plants and SEG licensees may have end dates. 116 The number of participants will gradually start reducing from 2031, given the typical contract length of 20 years. 117 Proposal to extend the application window to March 2026 currently being consulted on through the scheme’s mid-scheme review. 118 The number of participants has gradually started to reduce given the typical contract length of 7 years. 108 | Biomass Strategy

5.5.2 Carbon Budget 6 Analysis (Medium term view) Biomass is expected to continue to be For example, in the transport sector, important for many sectors to deliver biomass demand for aviation is expected emissions savings up to the end of the to rise, while its use in surface transport Carbon Budget 6 (CB6) period, as set is expected to fall as electric vehicle (EV) out in the Carbon Budget Delivery Plan numbers continue to increase. By CB6, (CBDP),119 published in March 2023. biomass will also have a role in hydrogen production through hydrogen BECCS. The CB6 period can be viewed as a mid- This is a critical technology to support way point between now and our 2050 longer term decarbonisation through its net zero target. The expected demands potential for significant negative emissions, for biomass during this period (Figure and which could also support hydrogen 5.3) reflect the medium term priority use production ambitions. principles in an ambitious biomass supply scenario. Here biomass uses in harder to decarbonise sectors, and in uses that can support delivery of negative emissions in the longer term, are expected to increase. 119 https://www.gov.uk/government/publications/carbon-budget-delivery-plan Biomass Strategy | 109 UCO, tallow, brown grease and microalgal oils Global Biodiesel from UCO/Tallow Global 1G bioethanol Wheat and sugar beet Global agricultural residues Surface Transport Global energy Biofuels (liquid) IAS crops DAS Global Agriculture sawmill residues Straw and agricultural residues Lignocellulosic Spare availability biomass Global small roundwood Waste wood Sawmill co-products Industry Arboricultural arisings Forestry harvesting residues Hydrogen production Small roundwood SRC willow Miscanthus Power Waste Residual biogenic waste Sewage sludge and farm slurries Food waste Buildings Landfill gas Biomethane and biogas Biomethane injection into the grid Maize Figure 5.3: Sankey diagram representing biomass feedstocks and end-use sectors in 2035, in an ambitious biomass supply scenario. ‘Global’ feedstocks imply those which the UK has access to, and the ‘Spare availability’ node denotes excess availability that the UK would not need to import. Sector demands are averages across the CB6 period. Presented uses for feedstocks are indicative and may vary based on policy development and changes in end-use demand. 110 | Biomass Strategy The level of biomass demand during CB6 The Sankey diagram also makes no is subject to uncertainty as we develop indication of how sustainable aviation fuels our Carbon Budget plans, recognising (SAF) will be produced, as this is subject the need to retain flexibility to adapt as to the government’s ongoing work on circumstances change. However, based the SAF mandate consultation, although on the policies and proposals set out in sector demands for SAF are considered the CBDP in the CB6 period, the average in line with the CBDP. Under the SAF annual biomass demand is expected to mandate, food and feed crops, as well as be 176TWh per year between 2033 and perennial energy crops (Miscanthus and 2037. This represents little overall change short rotation coppice (SRC)), and short from biomass demand in 2022, though rotation forestry (SRF) will not be eligible. the makeup and use of that biomass is Further details around SAF production expected to be significantly different. routes will be provided on this as part of the government’s response to the recent The future biomass supply estimates SAF mandate consultation. The Low developed using the availability model Carbon Fuels Strategy will also outline how suggest a total potential biomass low carbon fuels, including biofuels, could availability of between 130TWh and be deployed across transport modes in 251TWh in 2035 across the restricted the period to 2050, with the aim to provide and ambitious supply scenarios, which more investment certainty, including for after processing yields between 113TWh biofuel production. and 234TWh of delivered energy. As such CB6 demand is estimated to be within the To succeed in delivering our biomass range of overall biomass availability. Carbon Budget 6 targets we will need to manage the supply and demand side The biomass routes represented in Figure risks associated: 5.3 provide an indication of where we expect biomass supply to be directed to • Supply side: As highlighted in Chapter meet the expected demand, however this 4, the potential future sustainable is illustrative and subject to uncertainty. It biomass supply from domestic and represents potential biomass pathways international sources is uncertain. As in line with existing and planned policies. indicated by our feedstock availability For example, depending on feedstock analysis, we recognise that sustainable availability and technological readiness, imports will continue to play a role to it is possible that lignocellulosic biomass support our Carbon Budget 6 biomass could be processed through gasification demands. In the medium term, this to generate biomethane. Additionally, means that action to deliver the residual biogenic waste, biomethane and quantities of sustainable biomass that hydrogen could be used in transport fuel will be needed. To support this, we are applications. On food and feed crops for also working with industry, academia first generation biofuels, the Renewable and other partners to support UK Transport Fuel Obligation (RTFO) already domestic biomass production. has a gradually reducing crop cap in • Demand side: Technology readiness place to limit the amount of such crops and attracting investment to the being used in biofuels used in transport to UK also create additional risks to minimise impacts on food security. delivery where expected demand for Biomass Strategy | 111 biomass may not come through. To We must acknowledge that the package minimise these risks, the government of proposal and policies contained is actively developing various policies in the CBDP represents one of many to support the deployment of emerging routes to full decarbonisation of the UK biomass technologies such as the economy by 2050. We expect the world power BECCS and GGR business to change between now and the end models, and potentially the Net Zero of Carbon Budget 6, so we expect that Hydrogen Fund (NZHF) and hydrogen the plan will evolve to adapt to changing business model. circumstances, new evidence, to use technological developments and to address emerging challenges.

5.5.3 Biomass use towards 2050 (Long term view) Whole energy system analysis In addition to costs and carbon emissions, UK TIMES includes additional constraints The UK TIMES Model120 is a model of the on wider environmental impacts. These UK energy system that identifies the most include ensuring that bioenergy feedstocks cost-effective way of achieving net zero comply with existing UK biomass while meeting the UK’s energy demands. sustainability criteria and GHG emission The model minimises the total energy thresholds and include damage costs of air system costs, subject to constraints quality pollutants arising from the energy such as the requirement to meet future system.122,123 UK TIMES can present carbon budgets and net zero by 2050. illustrative optimal paths of using resources It was previously used121 in agreeing the towards net zero but may not represent level of Carbon Budgets 5 & 6 and the the distributions of resources across many Net Zero Strategy, among other projects. options or account for delivery risks across While UK TIMES is unable to capture the policies and technologies. detail or precision of more granular sector models, its system-wide perspective can We use three illustrative scenarios to reveal interactions between sectors that explore a range of potential uses for cannot be covered by individual sectoral biomass in 2050, noting that different models. It is used here to understand the outcomes within and beyond this range potential roles, and associated costs, of are also possible. This is due to various biomass technologies compared to low risks and uncertainties relating to the carbon alternatives, across the whole UK biomass system which are difficult to energy system. predict, especially in the longer term. 120 UK TIMES uses the TIMES methodology which emerged from the Energy Technology Systems Analysis Program (ETSAP); one of the longest running Technology Collaboration Programmes of the International Energy Agency (IEA). 121 https://www.legislation.gov.uk/uksi/2016/785/impacts; https://www.legislation.gov.uk/uksi/2021/750/ impacts; https://www.gov.uk/government/publications/net-zero-strategy 122 https://www.gov.uk/government/publications/assess-the-impact-of-air-quality/air-quality-appraisal- damage-cost-guidance 123 Lott et al., ‘Quantifying the co-impacts of energy sector decarbonisation on outdoor air pollution in the United Kingdom’, Energy Policy, Volume 101, 2017 (https://doi.org/10.1016/j.enpol.2016.11.028). 112 | Biomass Strategy This highlights the need to remain flexible will depend on how quickly such to ongoing developments. These risks and technology and the supporting uncertainties relate to: infrastructure becomes available and can be deployed. • Scale of demand: The detail of how existing and planned biomass Illustrative UK TIMES 2050 scenarios policies to meet wider UK priorities Modelling different illustrative net zero on decarbonisation are implemented scenarios enables us to contrast different will have an impact on the optimal potential energy and technology solutions use of biomass. in 2050, gain a deeper understanding of • Scale of resource supply: As crucial system-wide interactions, and, in discussed in Chapter 4, the potential particular for this Strategy, explore the role future availability of sustainable that biomass can play in these scenarios. biomass to the UK is uncertain. The The three scenarios presented below scenarios presented here assume the demonstrate a range of practical ways in ambitious supply profile. The amount which net zero could feasibly be delivered of biomass available will determine with the technology and resources we are the scale of decarbonisation possible aware of today. It is important to note that from bioenergy technologies and of these scenarios do not represent ‘most the role biomass in the UK can play in likely’ or ‘preferred’ solutions, and the achieving net zero. actual state in 2050 is likely to differ from • Technology readiness and these. Given the uncertainties associated deployment: The scale of negative with modelling distant futures such as emissions achievable through 2050, these outcomes are highly sensitive technologies such as BECCS to economic, societal, and technological developments. See the Technical Annex for details of the modelling. The three scenarios, constructed in UK TIMES, are based on the illustrative scenarios used for the Net Zero Strategy, but updated to include the ambitious biomass feedstock availability supply profile as set out in Chapter 4.2, where the risks and uncertainties are discussed in more detail. The other major change to the model since the publication of the Net Zero Strategy is the addition of a number of technologies to produce SAF as well as the central-level SAF mandate from DfT’s recent consultation.124 The table below sets out the illustrative scenarios explored. 124 https://www.gov.uk/government/consultations/pathway-to-net-zero-aviation-developing-the-uk- sustainable-aviation-fuel-mandate Biomass Strategy | 113 Table 5.3: Illustrative scenarios and associated assumptions Illustrative scenario Assumptions High Electrification Transport, heating and industry predominantly electrified. No hydrogen used for power or heating buildings. High Resource Greater use of hydrogen including heat and power. Increased ambition in afforestation. High Innovation Significant technological advances, including increased carbon capture rates, deployment of direct air carbon capture & initial roll-out of hydrogen-powered aeroplanes. All scenarios Meet all Carbon Budgets and Net Zero by 2050 and assume ambitious biomass supply profile. Common themes across all The common theme across the three illustrative scenarios scenarios is that biomass is most cost- Under current technological and demand effectively used in BECCS technologies assumptions, not all sectors are able to that can achieve the highest negative fully decarbonise by 2050. Therefore, as emissions, whilst producing additional low- set out in the Net Zero Strategy, GGRs carbon energy vectors. However, the exact are important for achieving net zero. mix of these different BECCS technologies BECCS technologies are a major source depends on the relative conversion of these GGRs. efficiencies, capture rates and costs as well as wider system considerations. This means that all lignocellulosic feedstocks (plant-based biomass) are allocated to BECCS technologies, whether producing hydrogen, electricity, biomethane or biokerosene in all scenarios.125 Furthermore, biomethane is most often used in the power and industry sectors, where it can be combined with CCUS technologies at the point of generation, providing further negative emissions. Other BECCS technologies such as industrial routes of BECCS and anaerobic digestion with BECCS, have not been included in UK TIMES modelling at this stage due to an incomplete evidence base around transport and storage of CO2. 125 Under the proposed SAF mandate, food and feed crops, as well as perennial energy crops (Miscanthus and short rotation coppice (SRC)), and short rotation forestry (SRF) will not be eligible. 114 | Biomass Strategy The other main theme in the modelling Due to existing evidence gaps, we are results relates to the role of biomass in the aware of potential biomass pathways that production of biofuels such as biokerosene are not currently represented here but and biodiesel, particularly where carbon could play an important role in achieving capture and storage (CCS) can be part of net zero, including non-energy uses that the production process. These are primarily fall outside the scope of UK TIMES (see allocated to hard-to-decarbonise modes of Chapter 7.8 which covers bio-chemicals transport, e.g., aviation, which require fuels and materials, and the use of biomass in with high energy densities (See Section 7.5 construction). for more on transport). A small proportion however could also be used in heating Work is also required to understand the buildings that are not connected to the gas impact of biomass use on the deployment grid and are unsuitable for heat pumps or of other non-biomass technologies further electrification - this use is not fully within the energy system as part of the captured in UK TIMES modelling but is government’s ongoing carbon budget and discussed further in Section 7.3. net zero delivery plan work. We will continue to update the UK TIMES whole energy systems model as the evidence develops and attempt to reduce the uncertainty around supply and demand, and technological readiness. Biomass Strategy | 115 2050 Illustrative Scenario 1: High Electrification In a scenario where widespread and deeply decarbonised electrification is deployed to decarbonise transport, heating and industry, biomass is cost-effectively used to provide crucial negative emissions and low carbon energy vectors such as hydrogen, biomethane and biofuels. Under this scenario, as much lignocellulosic or zero-carbon electricity and so there is biomass feedstock as possible is allocated less production of biofuels than in other to BECCS technologies, achieving large scenarios. Sustainable aviation fuels still amounts of GGRs whilst producing play a role in decarbonising air travel. zero-carbon energy vectors such as hydrogen, electricity and biokerosene Biomethane is produced from wet (SAF) (Figure 5.4). feedstocks by anaerobic digestion, which could also deploy BECCS technology in In this High Electrification scenario, a future. The biomethane is primarily used in greater proportion of surface transport carbon-capture technologies in the power (road & rail) is decarbonised using low and industry sectors by 2050. Animal slurry Anaerobic digestion Food waste & maize Biomethane Domestic wastes & residues Sewage sludge Upgrade of landfill gas Landfill gas Fuel imports UCO, brown grease & tallow Biogenic fraction of MSW Biodiesel Agricultural waste Biokerosene Electricity Imports Waste wood BECCS Hydrogen Woody biomass Domestic energy crops Grass Figure 5.4: Sankey diagram representing the allocation of biomass to the different processing technologies and end uses in illustrative Scenario 1, High Electrification. 116 | Biomass Strategy 2050 Illustrative Scenario 2: High Resource Within an energy system scenario that uses low carbon hydrogen extensively (particularly for decarbonising buildings, power and heavy vehicles), biomass plays less of a role as a source of hydrogen, instead producing more biomethane and biofuels. This scenario also assumes higher levels of non-energy-use forest planting are achievable, increasing the ‘negative emissions’ possible from land-use sinks. The High Resource illustrative scenario somewhat; with less hydrogen BECCS and features less electrification across an increase in biokerosene (SAF) BECCS, the energy system, instead relying on and also the production of additional hydrogen for decarbonisation, particularly biomethane, through the use of gasification for heating buildings. However, the broad to biomethane with BECCS. This reflects role of biomass remains unchanged, with lower reliance on overall removals from all lignocellulosic feedstocks allocated to BECCS (due in part to higher assumed BECCS technologies (Figure 5.5). The mix levels of nature-based removals) which of BECCS technologies used changes allows for a lower cost mix of technologies. Animal slurry Anaerobic digestion Food waste & maize Biomethane Domestic wastes & residues Sewage sludge Upgrade of landfill gas Landfill gas Fuel imports UCO, brown grease & tallow Biogenic fraction of MSW Biodiesel Agricultural waste Biokerosene Electricity Imports Waste wood BECCS Hydrogen Woody biomass Domestic energy crops Grass Figure 5.5: Sankey diagram illustrating the uses of biomass and derived energy forms in 2050 in illustrative Scenario 2, High Resource. Biomass Strategy | 117 2050 Illustrative Scenario 3: High innovation In a world where successful innovations enable higher carbon capture efficacy, greater deployment of Direct Air Carbon Capture and Storage (DACCS) through the 2040s accompanies improvements in aviation, such as efficiency gains and the introduction of hydrogen-powered aircraft. The overall energy system is therefore less reliant on BECCS to provide greenhouse gas removals, and biomass is used more extensively to provide biofuels instead. The third illustrative scenario features required to meet net zero, which enables significant technological advancements a mix of BECCS technologies that which reduce the residual emissions produces more biofuels127 to abate other from many sectors across the economy sectors (Figure 5.6). There is therefore and also permit additional negative less hydrogen produced by BECCS emissions from greater deployment of technologies than in the other scenarios, DACCS.126 This means lower levels of but an increase in biokerosene (SAF) negative emissions from BECCS are and biomethane. Animal slurry Anaerobic digestion Food waste & maize Biomethane Domestic wastes & residues Sewage sludge Upgrade of landfill gas Landfill gas Fuel imports UCO, brown grease & tallow Biogenic fraction of MSW Biodiesel Agricultural waste Biokerosene Electricity Imports Waste wood BECCS Hydrogen Woody biomass Domestic energy crops Grass Figure 5.6: Sankey diagram depicting the various uses of biomass across the energy system in illustrative scenario 3, High Innovation. 126 DACCS refers to a suite of greenhouse gas removal (GGR) technologies that capture carbon dioxide directly from the atmosphere and sequester it in permanent storage. 127 Biomass-to-Liquid BECCS technologies that produce biofuels like kerosene and diesel cannot capture as much of the carbon contained in the biomass feedstocks as the hydrocarbon fuel outputs must still contain carbon, in contrast to technologies that produce hydrogen or electricity. 118 | Biomass Strategy

5.5.4 Insights from the biomass priority use assessment Despite the evolving picture on biomass • Access to carbon transport and and the uncertainties around supply storage infrastructure is needed for and demand, we can draw some the delivery of negative emissions from broad conclusions from the priority use BECCS technologies. assessment set out in this chapter to help • Biomass use to support industrial shape our approach: decarbonisation will also be an area • In the short term, biomass will continue of priority for the government, though to make important contributions currently outside this modelling work. across the UK economy to support This will require coupling industrial uses decarbonisation through existing with carbon capture where feasible. support schemes. • While delivery of negative emissions • For the medium term, biomass is essential for net zero and should is expected to play an important be prioritised, biomass could also role in meeting Carbon Budget 6, have a complementary role to play with an increasing role in hard-to- in producing biomethane (which by decarbonise sectors. 2050 is likely to be predominately used in carbon-capture technologies • In the long term, the illustrative 2050 in the power and industry sectors) and scenarios prioritise biomass uses providing other low carbon fuels for that produce negative emissions those transport modes and rural off-gas through BECCS. The precise mix grid properties with limited alternatives of BECCS technologies should be (particularly where CCUS can be determined over time as cost- and integrated with the production process). carbon-effective solutions develop. As many technologies are at an early • Sustainable biomass will be increasingly development stage, it is inappropriate important for manufacturing to favour specific options at this point. materials and chemicals, drawing on infrastructure such as bio-refineries. • Power BECCS will likely provide However, the relative future demands an important contribution to deliver of these applications are uncertain at negative emissions and low carbon present and are outside the scope electricity in upcoming Carbon Budget of energy system modelling using periods and the run-up to 2050s, while UK TIMES. Further research and hydrogen BECCS is expected to have a development are needed to bring such greater role in the longer term. technologies to the market. Policy • Biokerosene (SAF) BECCS has frameworks will play an important role potential to deliver negative emissions in facilitating the deployment of new in the UK, with three projects currently technologies in a sustainable manner. in development, supported through the DfT Advanced Fuels Fund. Biomass Strategy | 119 6 Biomass with Carbon Capture and Storage Biomass Strategy | 121 Our Key Messages • Greenhouse Gas Removal (GGR) technologies are essential to the UK’s Net Zero Strategy – balancing residual emissions from hard-to-decarbonise sectors while providing new economic opportunities. • Bioenergy with Carbon Capture and Storage (BECCS) is an engineered GGR technology that captures and stores CO2 from biomass while producing low carbon energy. • Well-regulated BECCS can provide both genuine GGRs and low carbon energy or products. • There is active work ongoing in government to support BECCS, including the development of new business models, underpinned by clear guidance and principles for GGRs and BECCS. • In 2023 we will set out a vision for the UK carbon capture, usage and storage (CCUS) sector, setting out how CCUS will support our net zero ambitions to raise confidence and improve visibility for investors. Greenhouse Gas Removal (GGR) GGRs are defined as measures that technologies are essential to the UK’s result in net removal of greenhouse gases net zero strategy – balancing residual (GHGs) from the atmosphere and storage emissions from hard-to-decarbonise in organic material or geological stores.128 sectors while providing new economic The range of GGR approaches fall broadly opportunities. into two categories: engineered GGRs and nature based GGRs. Nature-based The importance of GGRs as part of the approaches include techniques such as UK’s efforts to tackle climate change has afforestation, and soil sequestration.129 been widely recognised by a range of The Biomass Strategy focuses on the independent institutions, including the engineered-based BECCS technologies. Climate Change Committee (CCC), the Royal Society, the International Energy Below we have outlined the role that Agency (IEA) and the Intergovernmental BECCS can play in reducing carbon Panel on Climate Change (IPCC). These emissions across the economy and set out institutions make it clear that removing how the technology could be deployed. carbon dioxide from the atmosphere is Section 6.7 provides an overview on the imperative for achieving net zero and potential for biochar to deliver GGRs. limiting global warming. 128 https://www.ipcc.ch/report/ar6/wg3 129 https://www.gov.uk/government/publications/net-zero-strategy 122 | Biomass Strategy

6.1 Bioenergy with Carbon Capture and Storage (BECCS) BECCS is an engineered GGR 75 and 81 MtCO2/yr by 2050 to help technology that captures and stores compensate for residual emissions. The CO2 from biomass while producing Strategy set an ambition of at least 5 low carbon energy. MtCO2/yr of engineered removals by 2030, potentially rising to 23 MtCO2/yr by There are several potential routes to 2035. BECCS is expected to make the BECCS recognised, such as: bulk of this, potentially delivering 52-58 MtCO2/yr by 2050. • Post-combustion CO2 capture (wood, agricultural residues, wastes, etc.). Chapter 5 of this strategy indicated that • Capturing CO2 streams arising from biomass uses with carbon capture and advanced conversion processes such storage (CCS) will contribute the most to as gasification or steam reformation meeting net zero. This way, BECCS has to produce fuels such as sustainable the potential to not only deliver negative aviation fuels and hydrogen; emissions, but also deliver co-benefits through providing low carbon energy • CO2 emitted and captured via biological products and providing a use for low value processes such as fermentation or products. Therefore, either new or existing anaerobic digestion (AD). biomass applications should consider As outlined in the Net Zero Strategy: Build options to and routes to deploy CCS in the Back Greener,130 engineered removals short to medium term, in order to plan a could be deployed at a scale of between transition to BECCS.

6.2 Public perceptions of BECCS Public perceptions of BECCS tend to understood by policy makers and are one focus on the validity of BECCS as a of the reasons we have focused on the negative emission technology and are robustness of our sustainability criteria. sceptical of the ability to deploy BECCS at scale. Responses to the 2021 Call for Evidence highlighted the need for more funding We recognise that biomass GHG emission and investment and support for BECCS, accounting is highly complex and there particularly at low carbon innovation is some public concern over the large- clusters where high-quality skilled labour scale use of biomass, and scepticism in and economic growth can be stimulated. the use of biomass for delivering negative Respondents highlighted the various emissions via BECCS. These concerns are routes that BECCS could be deployed, 130 https://www.gov.uk/government/publications/net-zero-strategy Biomass Strategy | 123 highlighting the need for innovation and BECCS is, as yet, unproven at scale investment required to reduce the costs and emphasised that some scaled of BECCS across a range of scales. implementation should be assessed Many of the points raised focused on first until the evidence becomes more the sustainability of the biomass used certain. As with sustainability, participants in BECCS, stressing the need for a wanted regulation of the sustainability of full life cycle emissions assessment of biomass sources used for BECCS and the BECCS and improved sustainability of carbon captured when it is deployed, to biomass sources. occur through a coalition of independent stakeholders to ensure that the focus of The Public Dialogue Project presented BECCS remained on net zero. participants with a detailed explanation of BECCS. Although some respondents The following section provides a review were ambivalent about BECCS, after the of BECCS technologies, and an overview discussions there was some agreement of the research government has done that it has a role to play in achieving net to assess how BECCS can deliver zero. Participants raised concerns that negative emissions.

6.3 BECCS Technologies Bioenergy for power generation and Although BECCS is not currently operating carbon capture and storage are not new at scale in the UK, the technology technologies. is operating elsewhere globally in demonstration plants and at commercial Carbon capture and storage (CCS) refers scale. The 2022 Global CCS Institute to the process that: Status Report shows there are 30 commercial CCS facilities in operation,131 • Captures CO2 from power stations, with 11 under construction and more than processing plants or other 150 in various stages of development. industrial sources; The commercial CCS facilities in operation • Handles and transports CO2; and today are capturing CO2 from a wide • Stores the CO2 for example by injection range of emission sources inducing in deep geological formations; or gas processing, ethanol, fertiliser, steel, hydrogen production as well as • Stores carbon in a non-CO2 form power generation.132 such as solid carbon/biochar (see Section 6.7) 131 https://status22.globalccsinstitute.com/2022-status-report/global-status-of-ccs 132 https://www.globalccsinstitute.com/wp-content/uploads/2022/06/MythBusters-Flyer_FINAL-5.pdf 124 | Biomass Strategy Norway has used CCS technology in its Chapter 5 identified many biomass North Sea oil fields for more than two pathways that will rely on gasification- decades,133 and the USA has operated based routes for BECCS (hydrogen and CCS since the 1970s.134 The current total SAF BECCS), therefore gasification is a of CO2 captured and stored is over 42 Mt priority area for innovation. For this reason, per annum which would rise to 244 Mt as part of the Net Zero Innovation Portfolio when current projects are completed. At (NZIP), the Hydrogen BECCS Innovation a single plant, post combustion carbon Programme supports technologies which capture has been demonstrated up can produce hydrogen from biogenic to a scale of capturing 1 Mt CO2/yr.135 feedstocks and be combined with carbon Properly permitted and operated CCS is a capture (Box 6.1). The NZIP Direct Air safe and mature technology and there is Capture (DAC) and GGR Innovation a strong regulatory framework in place to Programme has directed funding to deliver mitigate any associated risks. a portfolio of First-of-a-Kind (FOAK) GGR projects, including BECCS and biochar. The deployment of BECCS will come via The programme aims to identify the most several possible routes, each of which are promising technologies for deployment at various stages of technology readiness in the UK, verify the quantity and cost of (Table 6.1). While some BECCS routes removing CO2, and through successful may be more technologically advanced, piloting, catalyse further investment into their potential may be limited by the scale the UK (Box 6.2). of the parent technology, or the size and location of existing or future plants. There may be more innovative, next generation routes of CO2 capture that are Examples of more mature BECCS on a longer deployment timescale and technologies include those that could be are at the lower Technology Readiness deployed with low carbon fuel production, Level (TRL) stages than shown in Table such as in bioethanol production in the 6.1, to which innovation funding has been United States. Low carbon fuel production targeted (Box 6.3). Such innovations can coupled with BECCS is yet to be deployed accelerate deployment at scale, and some in the UK but has potential to deliver may not require direct access to the CO2 negative emissions. The upcoming transport and storage network connected sustainable aviation fuel (SAF) mandate to the CCUS clusters. Therefore, in the proposes to reward SAF on the basis medium- and longer-term future, BECCS of GHG savings to ensure the future deployment may develop at various scales. integration of CCS in SAF production and encourage the best use of biomass. 133 https://www.ccsassociation.org/discover-ccus/explore-ccus 134 https://www.iea.org/reports/about-ccus 135 https://www.globalccsinstitute.com/wp-content/uploads/2021/10/2021-Global-Status-of-CCS- Report_Global_CCS_Institute.pdf Biomass Strategy | 125 Box 6.1. Innovation: Hydrogen BECCS Innovation Programme In Phase 1, launched in early 2022, the programme awarded £5m to 22 projects to scope and develop a demonstration project to be run in Phase 2.136 In June 2023, £21.2 million of funding was awarded for Phase 2 of the programme, enabling five organisations to build and test their innovative hydrogen BECCS technologies by March 2025. The aim of the programme is to support the development of technologies which will enable the commercialisation and deployment of hydrogen BECCS at scale to achieve negative emission and hydrogen production ambitions. Technologies being supported in Phase 2 of the programme including syngas upgrading after gasification, pyrolysis to generate hydrogen and biochar, and conversion of biogas from wastewater treatment into hydrogen and, a novel means of carbon capture and storage, graphene. Hydrogen BECCS case study: Compact Syngas Solutions Ltd Compact Syngas Solutions (CSS) is an SME based in North Wales that creates synthesis gas from biomass, waste biomass and prepared solid recovered fuels (SRFs). Synthesis gas, or ‘syngas’, largely comprises hydrogen (H2), carbon dioxide (CO2) carbon monoxide (CO) and methane (CH4), with hydrogen being a critical net zero fuel and carbon capture being essential for the net zero negative emissions. CCS has been awarded almost £4 million in Phase 2 of the NZIP Hydrogen BECCS programme to demonstrate their novel advanced gasification and syngas separation process. As part of their Phase 1 feasibility study, CSS designed and constructed a water-based carbon capture prototype capable of processing 100 Nm3/h of syngas to extract more than 75% of the CO2 from the gas stream. This unit was tested in conjunction with their gasification system to produce hydrogen. The study proved that it is feasible to integrate both systems and viable to use water as a CO2 capture solvent, rather than using the higher cost, traditional solvents such as amines. The trials also allowed CCS to improve their hydrogen production. The carbon life cycle assessment suggests that the system will provide significant emissions reductions when compared to competitor technologies, due to (1) the sequestration of the carbon in the biochar generated in the gasifier and (2) the additional capture of CO2 in the scrubbing column. 136 Further details of the projects funded in Phase 1: https://www.gov.uk/government/publications/ hydrogen-beccs-innovation-programme-successful-projects 126 | Biomass Strategy Box 6.2. Direct Air Capture (DAC) and GGR Innovation Programme Phase 1 (design and feasibility) ran from March 2021 to April 2022 with a total value of £7.5 million. Each project was awarded up to £250,000. Phase 2 (construction and operation of a pilot) has a total value of around £55million will continue until March 2025, with projects awarded up to £5 million. Only projects from Phase 1 were able to apply for Phase 2 and the 14 successful projects are split between 4 technologies namely, DAC, BECCS, biochar and Direct Ocean Capture. Phase 2 case study: Kew Projects Ltd – CCH2: Carbon Capture and Hydrogen This project focuses on carbon capture and hydrogen production from biomass (CCH2) and plan to demonstrate a modular, cost-effective system capable of delivering 50ktCO2/yr of GGR during 2025-2030 and scaling to a potential 24 MtCO2/yr in the subsequent decade. The CCH2 demonstration will combine two individual units (TRL6) into an innovative and fully integrated BECCS hydrogen system. The technology using an advanced gasification process (a form of Advanced Conversion Technology, or ACT) can convert a wide range of sustainable feedstocks to produce a hydrogen-rich syngas as a replacement for natural gas. By coupling this process with additional carbon capture and hydrogen purification steps, KEW can capture CO2 while simultaneously producing a carbon negative hydrogen stream which can help decarbonise other energy-intensive industries. ©KewTech Biomass Strategy | 127 Box 6.3. Innovation: CCUS Innovation Between 2004-2021 the UK has provided over £346 million in public funding for CCUS research, development and demonstration projects.137 This has been crucial in understanding the fundamental science, developing improved capture processes and equipment, as well as training the next generation of subject matter experts in CCUS.138 More recently, as part of the £1 billion Net Zero Innovation (NZIP), 2021 - 2025, the £25 million has been allocated for CCUS innovation. The £5 million Accelerating Carbon Capture and Storage Technologies 3 (ACT‑3) led by academia and industry has provided research grant funding for eight projects.139 The £20 million CCUS Innovation 2.0 competition aims to reduce the cost of capture and help UK industry to understand the opportunity for developing and deploying next generation carbon capture technologies from 2025. Eight projects were awarded over £12 million in Call 1140 with £7.3 million available during Call 2.141 In addition to the grant funding, a technology review and techno- economic analysis of next generation carbon capture technologies for industrial, waste and power sectors was published in May 2022.142 137 https://www.iea.org/data-and-statistics/data-tools/energy-technology-rdd-budgets-data-explorer 138 CCUS Supply Chains: a roadmap to maximise the UK’s potential: https://assets.publishing.service.gov.uk/ government/uploads/system/uploads/attachment_data/file/984308/ccus-supply-chains-roadmap.pdf 139 https://www.gov.uk/government/publications/accelerating-carbon-capture-and-storage-technologies- act-3-grant-funding-winners/grant-funding-winners-accelerating-carbon-capture-and-storage- technologies-3#the-winners 140 Further details of the successful Call 1 projects: https://www.gov.uk/government/publications/carbon- capture-usage-and-storage-ccus-innovation-20-competition-call-1-successful-projects 141 Further details on Call 2: https://www.gov.uk/government/publications/carbon-capture-usage-and- storage-ccus-innovation-20-competition-call-2 142 Review of next generation carbon capture technology for industrial, waste and power sectors: https:// www.gov.uk/government/publications/review-of-next-generation-carbon-capture-technology-for- industrial-waste-and-power-sectors 128 | Biomass Strategy Table 6.1: BECCS TRL produced in support from the IEA Clean Energy Technology Guide – IEA(2022), ETPClean Energy Technology Guide, IEA, Paris https://www.iea.org/data-and-statistics/data-tools/etp-clean-energy-technology-guide Routes to CO2 Capture TRL BECCS Type Technologies method CO2 Transport Assessment Fuel-BECCS Biological Fermentation Separation Pipeline Mature Biomethane- Biological Anaerobic Separation Pipeline Early adoption BECCS digestion Hydrogen Biological Anaerobic Biomethane Pipeline Early adoption BECCS digestion with steam methane reforming with CO2 capture* Power BECCS Post- Combustion Chemical Pipeline Precommercial Combustion absorption Industrial Post- Combustion Chemical Pipeline Precommercial BECCS Combustion absorption SNG or Thermochemical Gasification Pre- Pipeline Demonstration Biomethane to SNG combustion -BECCS Fuel-BECCS Thermochemical Gasification Pre- Pipeline Demonstration to fuel combustion Hydrogen Thermochemical Gasification Pre- Pipeline Demonstration BECCS to fuel combustion Key Mature Above TRL9 Early adoption Early adoption – solution is commercially available, but needs improvement to stay competitive Precommercial TRL8-9 Proven to work Demonstration (TRL 6-7) Prototype complete, planned operation 143 https://www.globalccsinstitute.com/wp-content/uploads/2019/03/BECCS-Perspective_FINAL_18- March.pdf 144 https://co2re.co/FacilityData Biomass Strategy | 129 Regarded as the most mature and relatively cost effective of BECCS- where the CO2 emitted from the fermentation stage is captured and either used or stored. There are five operational BECCS projects in North America that have combined bioethanol production with CCS. The largest, the Illinois Industrial CCS facility, which has been operational since 2017, captures up to 1 Mt CO2 /yr from corn‑based bioethanol and stores the CO2 in a dedicated geological storage site deep underneath the facility.143, 144 Anaerobic digestion plants routinely separate CO2 during the process of biogas upgrading prior to grid injection. The AD-route of CO2 capture has been demonstrated to be cost effective for the utilisation market, and the role for AD as a source of low carbon CO2 may expand. There is, however, no current demonstration of geological carbon storage and AD combined- although the Audi-E plant in Germany utilises CO2 captured from a biogas plant to produce synthetic methane. Although not yet demonstrated in the UK, hydrogen production via natural gas SMR with CCS is already operational in North America at two plants. It could therefore be possible in the UK for biomethane could be used to generate hydrogen-BECCS with relatively little innovation required. This route is currently eligible for support under the Renewable Transport Fuel Obligation (RTFO). The Mikawa plant in Japan that captures and temporarily stores biogenic CO2 at a rate of 500t/ CO2 day (ref). Other demonstration plants (e.g., Drax in conjunction with C-Capture (from 2018) and then Mitsubishi Heavy Industry (2020) have captured and vented at a small-scale UK pilot programme since 2018. BECCS in industrial applications has been demonstrated at two plants under development in Norway, combining CCS with biomass use in cement manufacture, and with energy from waste, so far demonstrating successful capture at a few thousand tonnes of CO2, and aim to save 0.8 Mt CO2 /yr by 2024. Some of these gasification processes have been proven, but not with integrated carbon capture and utilisation or storage, though there are some emerging projects that will be developing this soon. 130 | Biomass Strategy

6.4 How BECCS can deliver negative emissions Well-regulated BECCS can deliver genuine GHG removals, providing biomass is sourced sustainably, if supply chain emissions are regulated, and if the BECCS value chain is robustly and independently verified. CO2 Miscanthus Biomass Poplar energy conversion CO2 capture and storage Wood Transport Transport residue CO2 H2 Crop residue Processing and pelleting Fuel Waste wood Municipal solid waste (biogenic fraction) Biomass growth and harvest Figure 6.1: Illustrative flow diagram of an archetypical bioenergy with carbon capture and storage (BECCS) value chain. Biomass Strategy | 131 The biosphere is estimated to remove 3.5 technical, commercial, legal, financial, and ±0.9 Gt CO2 from the atmosphere each policy “know-how” associated with the year through plant growth.145 Therefore, delivery of sustainable BECCS/GGR. If combining biomass use, whatever the the UK chooses not to pursue GGR and source, with carbon capture is a route to BECCS, it could miss out these innovation create a flow of ‘negative CO2 emissions’ and associated export opportunities, where CO2 leaves the atmosphere, enters in addition to increasing the costs of the biosphere, is captured and then moved delivering net zero. into long term storage. The BECCS Task and Finish Group report The additional benefit of BECCS is that the set out suggested approaches whereby process involves the conversion of biomass BECCS could achieve its objective to into valuable energy products, such as deliver negative emissions and ensure electricity, heat or renewable fuels. This positive outcomes for people, the enables BECCS to provide an additional environment, and the climate. This can be decarbonisation benefit from the energy possible if the biomass is “well regulated” use in the relevant sectors of the economy. meaning if it is sourced, sustainably with appropriate certification, if significant negative impacts on forest carbon stocks Task and Finish Group Report: are avoided, and if carbon and supply The ability for BECCS to chain GHG emissions are minimised and regulated, and if the BECCS value chain generate negative emissions is robustly and independently verified. Alongside this Strategy, government has These areas are all being addressed in published a report led by the Department government policy development currently. for Energy Security and Net Zero Chief Any biomass used in BECCS will be Scientific Adviser’s Task and Finish Group required to meet the updated sustainability which sought to establish an evidenced requirements, as per commitments set out based position on the validity of BECCS in this Strategy (See Chapter 2), which will as a GGR option to deliver negative be refined via consultation. emissions.146 While the group recognised It is recognised that negative impacts on there are some challenges, it did not identify forest carbon stocks and the supply chain any insurmountable scientific barriers to the emissions would reduce the net carbon net removal of CO2 from the atmosphere removal efficiency of BECCS. Supply and subsequent permanent geological chain emission are already regulated in storage via BECCS when carried out in unabated biomass policies in government, accordance with appropriately designed where reward or subsidy are conditional biomass sustainability criteria and via on meeting strict GHG criteria. Literature sustainable supply chains. suggests that in practice, the carbon The report noted there is a substantial removal efficiency of power BECCS could opportunity for the UK to develop a be between 65-85% after accounting leadership position in the range of for the supply chain and losses of non- 145 Friedlingstein, P. et al, Global Carbon Budget 2022, Earth Syst. Sci. Data, 14, 4811–4900, 2022 (https:// doi.org/10.5194/essd-14-4811-2022). 146 https://www.gov.uk/government/publications/biomass-strategy 132 | Biomass Strategy captured biogenic carbon. So far, emerging that prioritising biomass use in BECCS will policy work in government has recognised maximise the contribution that biomass the need to regulate supply chain emissions can make to the net zero target. from BECCS so that it achieves at least a minimum approved level of negative In terms of land use, the modelling to inform emissions.147 Further investigation is needed the Strategy took a precautionary approach to understand the potential to supply to reduce the risk of Indirect Land Use biomass from forests, whilst ensuring Change (ILUC), limiting the expansion of positive impacts on of forest carbon stocks bioenergy crops to abandoned agricultural are encouraged, whilst negative impacts land, which will ultimately place a limitation are avoided or minimised. Also, government on the extent that BECCS will be delivered is examining how to encourage BECCS via purpose-grown crops. Such crops from utilising biogenic wastes in low carbon would need to be grown in suitable fuel production to ensure GHG savings locations and an appropriate scale, or are maximised and is assessing how best innovations will be required to gain access to treat negative emissions under the to other novel feedstocks that are either upcoming SAF mandate. complementary to other land uses, or go beyond land (e.g., marine feedstocks). Biomass supply for BECCS The carbon dynamics of BECCS: It is recognised that a portfolio of GGR methods will be required for net zero, Forestry Focus with BECCS being just one of them. For The Task and Finish Group report this reason, the GGR business model noted significant stakeholder interest in is designed to be applicable to a range forest-derived biomass, and therefore of GGR technologies (See Section 6.5). focussed on this aspect. It outlined the Government has also been clear that ideal carbon dynamics of conventionally GGRs are not a substitute for taking managed forests as they cycle between decisive action across the economy to establishment, active growth and felling on cut emissions. a landscape level to provide a continuous supply of harvested wood products The deployment of BECCS in the UK will and biomass.148 The report stated that be limited by the biomass supply and in principle, forests can be managed to the deployment of CCUS infrastructure. supply carbon neutral biomass at scale, Chapter 4 provides the full assessment of and the ability of the Carbon Capture and the UK and Global Bioenergy Resource Storage element of the value chain to Model, where it is fully recognised that deliver was not contested. there is a limit to the quantity of sustainable biomass that can be produced globally, After the Report concluded, the outputs and then potentially be available to the of the Forest Research CARBINE Forest UK. This is why this Strategy has identified Sector Carbon Accounting Model were elaborated to allow for the impact of 147 https://www.gov.uk/government/consultations/business-model-for-power-bioenergy-with-carbon- capture-and-storage-power-beccs 148 Matthews, R., 2020, ERAMMP Report-36, Annex-4: Climate Change Mitigation: https://erammp. wales/sites/default/files/2022-11/36%20ERAMMP%20Rpt-36%20NF%20Annex-4%20Climate%20 Change%20v1.0_en.pdf Biomass Strategy | 133 integrating BECCS into the scenarios forest landscape. It shows that the use presented in the report. This assumes a of harvested wood products can provide proportion of forest residues are used in a additional decarbonisation benefits by power BECCS plants and a proportion of displacing the production of other building post-consumer waste products are used in materials (such as cement and steel). an energy from waste (EfW) BECCS plant Additional CO2 removal can be achieved (Figure 6.2). It shows, in this scenario, that by placing harvested wood products the permanent removal of CO2 via BECCS in EfW BECCS facilities at the end of can significantly increase the overall long their useful life. term carbon removal potential from the 16,000 A GHG removed/avoided (tonnes CO e./area) 14,000 B 12,000 C ² 10,000 D 8,000 6,000 E 4,000 2,000 0 1960 1980 2000 2020 2040 2060 2080 Key A Carbon stored by EfW BECCS at end-of-life of wood products B Carbon stored by power BECCS C Displacement of alternative products D Carbon in Harvested Wood Products E Total carbon stock in forest Supply chain emissions Figure 6.2: Results from the Forest Research CARBINE Forest Sector Carbon Accounting Model after allowing for the impact of integrating BECCS into the scenarios presented in the Task & Finish report. 134 | Biomass Strategy The scenario includes the additional CO2 The drivers of forest management can removal that BECCS could contribute, in be diverse, and can include economic, addition to that provided from an area of biodiversity, fire reduction, or other recently created commercially managed management objectives. While biomass forest in the UK, where any recovered from managed forests (including low value biomass was used in BECCS, and end thinnings and low grade roundwood) of life wood products entered energy and residues from sawmills can make a recovery with CCS. As the UK imports sustainable and economically significant the majority of its wood pellet supply, contribution to existing forestry operations it is necessary to develop this work to and local economies,149 the evidence on assess the impact of sourcing, processing whether the market for biomass influences and importing biomass to the UK from decisions in forest management are less overseas. Research is also needed to clear cut, as biomass is part of a system assess the carbon removal potential of of products from the forestry sector and energy crops as a BECCS feedstock, management decisions are influenced by including any impacts of land use change. multiple parameters. Nevertheless, this will continue to be an area for research.

6.5 Principles of deploying BECCS The government is actively working A robust evidence base on existing on developing clear guidance and standards for GGRs will provide a sound principles for GGRs and BECCS. basis for future policymaking, and we are mindful that there are various standards The government recently published a already operating or in development across response150 to the GGR consultation held the marketplace. Building on responses to in 2022, which focussed on developments the consultation, our MRV proposals will of the GGR Business Model. The response be informed by an independent review of also set out the ongoing work to develop the existing landscape of standards being clear guidance and principles for defining conducted by E4Tech and Element Energy, negative emissions and to strengthen our which we intend to publish. understanding of the current landscape of standards for all GGRs, including BECCS. Until those standards are developed, the recently published response to the GGR Alongside the business model, we Business Model consultation laid out recognise the need to develop a some ‘guiding parameters’ for our overall monitoring, reporting and verification (MRV) strategic priorities for deploying GGRs in framework which provides confidence the UK. These principles relate to revenue that GGR projects deliver verifiable certainty, value for money, climate integrity, climate benefits based on a full life amongst others. cycle assessment. 149 https://www.forumforthefuture.org/beccs-done-well-conditions-for-success-for-bioenergy-with- carbon-capture-and-storage 150 https://www.gov.uk/government/consultations/greenhouse-gas-removals-ggr-business-models Biomass Strategy | 135 The government response also set out Task and Finish Group’s report for criteria for robust negative emissions government151 (Table 6.2). that drew on the previous GGR MRV Table 6.2: The government’s criteria for a robust negative emission. CO2 source CO2 must be directly captured from the atmosphere or seawater (via biological, chemical or geochemical means). Net Negativity End-to-end CO2 emissions must be lower than the total amount of stored carbon. For some technologies we propose that we would set requirements to limit the level of supply chain emissions, to ensure that GGR technologies achieve a minimum level of net negative emissions. Permanence Once captured by a project, carbon must be sequestered in a highly durable store. The assessment of permanence should consider durability and ‘risk of reversal’ (likelihood of captured carbon being re-emitted into the atmosphere) associated with a carbon store. Utilisation of carbon in short-lived products, such as fuels and plastics, does not constitute a negative emission. The Biomass Strategy sets out principles sustainable biomass which meets specifically for BECCS deployment. clear, enforceable, and transparent They are designed to reflect both sustainability criteria. the government’s wider approach to • Support should only be for BECCS engineered removal technologies and systems that deliver net GGRs the need to maintain strict sustainability based on a full life cycle assessment standards for BECCS as are used in irrespective of where in the supply existing bioenergy support schemes. chain emissions occur. The Biomass Strategy has identified • BECCS should provide valuable, complementary principles, or detail to low carbon co-products or services the GGR principles, that are specific to alongside GGRs to maximise the use of BECCS. They are designed to reflect sustainable biomass. the need to maintain strict sustainability • A BECCS project must achieve long standards for BECCS as are used in term and safe carbon storage to existing bioenergy support schemes. guarantee atmospheric carbon removal. In summary, the BECCS Unlike targets and rules, this principles- principles state that: based system is flexible enough to remain • Government should only support valid in the face of evolving evidence and the capture and storage of biogenic technological development and innovation. CO2 emissions generated from 151 https://www.gov.uk/government/publications/monitoring-reporting-and-verification-of-ggrs-task-and- finish-group-report 136 | Biomass Strategy Principle 1: Government BECCS will therefore be required to meet GHG criteria, and GHG supply should only support the use chain thresholds that ensure that the full of sustainable biomass. biomass supply chain GHG emissions, from growing, processing, transporting It is vital that biomass used in BECCS and storing, are taken into account in is sustainably sourced. All biomass the assessment of the final capture of supported under government support CO2. These GHG emissions should schemes must meet sustainability criteria be accounted for irrespective of the covering land and GHG criteria, and international boundaries where the this will apply to BECCS. It is expected emissions are taking place. that biomass used in BECCS will meet the wider land criteria and air quality It is important that these BECCS principles requirements covered in Chapter 2. apply when attempting to calculate the CO2 removal potential of BECCS, i.e., As applies under both the existing land the calculation must be based on GHG and GHG sustainability criteria, no emissions that have been emitted, versus government support will be available the volume of biogenic carbon or CO2 unless the consignment of sustainable captured during the process that is stored biomass is evidenced and verified by in safe, long term storage. third-party sustainability auditors, including on the basis of UK-domestic category In the power BECCS Business Model B evidence.152 This is consistent with Consultation, government asked for views the UK’s existing MRV processes for about whether power BECCS projects renewable electricity, heat generation or should run during periods of Transport renewable transport fuel production. & Storage (T&S) unavailability, such as temporary outages. In the response, we Principle 2: Support of recognised that there are both benefits and risks of incentivising projects to run during BECCS should only be for these periods. We set out that we are BECCS projects that deliver continuing to develop a position on power net-negative emissions. BECCS projects running during periods of T&S unavailability. Following on from the GGR consultation response153 it is the intention that the Where BECCS is integrated into an supply chain emissions from BECCS will existing biomass scheme, there may be be monitored, reported and verified in some circumstances where it is necessary order to ensure that the BECCS process to use CCS to reduce the carbon results in net negative emissions. The intensity of a bioenergy co-product (e.g., government’s overarching ambition is to sustainable aviation fuel). In instances ensure that removals deployed in the UK where captured CO2 is used to meet a can meet an agreed definition of legitimacy defined GHG threshold, such as the Low and therefore be confidently attributed to Carbon Hydrogen Standard, these units our carbon budgets. of captured carbon cannot qualify for 152 https://www.gov.uk/guidance/timber-procurement-policy-tpp-prove-legality-and-sustainablity 153 https://www.gov.uk/government/consultations/greenhouse-gas-removals-ggr-business-models Biomass Strategy | 137 additional government support or be sold the government response to the GGR on a negative emissions market. They will Business Model consultation, further work also not be double claimed under national is needed to understand the feasibility carbon inventories. of deploying large-scale non-CCUS GGR approaches in the UK (see Section 6.7 on biochar). Principle 3: BECCS should provide valuable, low carbon Principle 4: A BECCS project co-products alongside a must achieve long term greenhouse gas removal and safe carbon storage By combining GGRs and low carbon to guarantee atmospheric energy outputs, BECCS will help maximise the contribution to the UK’s carbon removal. net zero commitment. BECCS could be As with the government’s criteria for a delivered alongside energy vectors that robust negative emission (Table 6.1), can provide additional decarbonisation once captured by a project, carbon across the sectors, including delivering must be sequestered in a highly durable electricity, heat, hydrogen, biomethane and store. The assessment of permanence sustainable transport fuels. should consider durability and ‘risk of reversal’ (likelihood of captured carbon In the biomass sphere, there is a growing being re-emitted into the atmosphere) international focus on alternative storage associated with a carbon store. Utilisation methods such as mineralisation and of carbon in short-lived products, such as biochar, which could potentially deliver fuels and plastics, does not constitute a highly durable carbon storage outside negative emission. of the CCUS clusters. As highlighted in 138 | Biomass Strategy

6.6 Supporting BECCS There is active work ongoing in Power BECCS government to support BECCS. Business Model In 2023 we will set out a vision for the UK CCUS sector, setting out how CCUS As set out in the Biomass Policy will support our net zero ambitions to Statement, published in November 2021, raise confidence and improve visibility the government has commenced work for investors. to develop a business model for FOAK Power BECCS. The model will incentivise Initially, BECCS deployment will be the delivery of both low-carbon electricity dependent on there being access generation and negative emissions. The to carbon transport and storage business model is being designed to infrastructure. Powering Up Britain includes enable the deployment of power BECCS a commitment to deploy CCUS in two at scale, through addressing prevailing industrial clusters by the mid-2020s market failures, deployment barriers and (Track-1), and a further two clusters by risk to investment. A priority for the power 2030 (Track-2). The Net Zero Strategy BECCS business model is to provide confirmed government’s ambition to projects with sufficient support to give capture and store 20-30 MtCO2/yr by investor confidence, whilst ensuring that 2030, with at least 10Mt of this capacity to these projects are affordable and represent be delivered by ‘Track-2’ clusters. value for money for consumers and/or taxpayers alike. Government maintains the ambition to deploy 5Mtpa of engineered GGR by 2030. Government recently published a response In March 2022 the government confirmed to a consultation on potential power the Track-1 project negotiation list, which BECCS business models.154 The response included some projects with the potential confirmed the Dual contract for difference to deliver negative emissions (see industrial (CfD) as the preferred model and set out carbon capture (ICC) Business Model). several early design features. The model will include a payment mechanism of Delivering BECCS is likely to require three parts, a difference payment for the government support initially. A number of low carbon electricity generated (referred business models are being developed to to as a CfDe); a difference payment for support BECCS or facilitate the generation carbon captured (referred to as a CfDc); of negative emissions. There will be and, to support the use of a transport and similarities across other business models storage (T&S) network, a T&S charges and the government will ensure alignment payment. The two difference payments where possible. The following section are broadly based on the difference provides a summary of the main business payment mechanism in the existing CfD models being developed to support or scheme and all parts of the payment deliver negative emissions. mechanism will be within one contract. 154 https://www.gov.uk/government/consultations/business-model-for-power-bioenergy-with-carbon- capture-and-storage-power-beccs Biomass Strategy | 139 The contract will include a requirement to The government response to the comply with robust sustainability criteria. consultation, published in June 2023,155 Work to determine how the business confirms our intention to proceed with model will ensure compliance with the the development of a GGR business sustainability criteria is ongoing, and the model based on a contract for difference Biomass Strategy will inform that work structure, where the subsidy is determined as it develops. by the difference between a ‘strike price’ reflecting the cost of producing negative As confirmed in the consultation response, emissions and a ‘reference price’ reflecting government is keen to gather evidence the market value. and develop the design of the business model through a series of regular Building on our initial analysis of the engagement sessions with industry, NGOs consultation responses, we will continue and other interested parties. to develop the business model design with input from stakeholders, including through the GGR Business Model Expert Group, GGR Business Model with a view to setting out our preferred positions on the detailed design features In the Net Zero Strategy we committed later this year. to developing markets and incentives for investment in GGRs by consulting on our The consultation invited views on the preferred business models to incentivise potential role of the GGR business model early investment in GGRs. Modelling by the in supporting BECCS projects that are government and CCC shows that a mix of not eligible for the FOAK Power BECCS, GGR technologies will play an important ICC or Waste ICC business models. The role in meeting Carbon Budget 6 and net evidence we received will inform future zero. A diverse portfolio of GGRs will be decisions on eligibility criteria for the GGR strategically important to reduce reliance business model. More details will be on any single technology and create a announced in due course. resilient negative emissions market that can support net zero at the lowest cost to business, while maximising the benefits of Industrial Carbon Capture this sector to the UK economy. (ICC) and Waste ICC Business A consultation on the design of a GGR Models business model was published in July 2022. It outlined the government’s There is a role for BECCS in the industrial intention to introduce a contract-based sector, including the cement and glass business model to incentivise investment industries, where the use of sustainable in a portfolio of GGR projects by providing biomass and biodegradable waste derived revenue support for negative emissions. combined with CCS could deliver negative emissions alongside the decarbonisation of these industries. 155 https://www.gov.uk/government/consultations/greenhouse-gas-removals-ggr-business-models 140 | Biomass Strategy The 2021 GGR methods and their The residual waste management sector potential UK deployment study156 assessed disposes of mixed wastes, which the maximum technical potential for currently have a range of fossil:biogenic industry BECCS deployment at 10Mt CO2 content split (usually around 50%:50%). year. Analysis carried out for the Net Zero Residual waste is expected to continue Strategy and the Net Zero Growth Plan to need to be processed through to suggests, within that technical potential, 2050 and, at present, CCS is the only the socially cost-effective potential net zero compliant technology for the deployment of industry BECCS could be residual waste management sector. This between 2-4Mt CO2 per annum by 2050 will help deliver potential engineered depending on T&S availability. This range removals requirements set out in the Net includes relatively significant ‘low regret Zero Strategy through the capture of options’ in industrial clusters. For example, biogenic emissions. biogenic content used in the cement sector can generate BECCS and can It is anticipated that some BECCS could deliver significant co-benefits by mitigating be delivered through support provided process emissions that can otherwise via the Industrial Carbon Capture ICC) not be abated, alongside any fossil fuel and Waste ICC business models, which emissions, via CCS. aim to support deployment of CCUS in UK industrial and residual waste The technological barrier to industrial management sectors. The ICC and BECCS deployment is not deemed to be Waste ICC business models will cover the larger than power or hydrogen, however a capital and operational costs of deploying number of factors complicate the robust CCUS, including Transport and Storage assessment of the costs and the cost- (T&S) fees. Initial projects will be eligible to effectiveness of these technologies. For receive a grant for up to 50% of the capital one, BECCS can be applied to a range costs through the CCUS Infrastructure of industrial sectors and combustion Fund. The ICC and Waste ICC business technologies, from autogeneration to models will support the costs and fees cement kilns, leading to a wide range associated with the capturing of both of parameters on fuel gas compositions fossil and biogenic emissions. The sale and other characteristics. Secondly, the of negative emissions will initially be amount of CO2 that can be removed from restricted, but subject to a review, this may one site can vary significantly, leading to be lifted in future. The subsidy payments radically different economies of scale. will then be adjusted proportional to the Thirdly, many sites currently using biogenic value of the negative emissions credits. fuels are dispersed sites and not located in industrial clusters, which means future In Track-1 of the Cluster Sequencing access to CO2 T&S networks introduces Programme, three ICC and two EfW further uncertainty on costs. Reflecting this facilities were selected to proceed to variation, latest estimates suggest a wide negotiations. In the short term, these two range for capture cost of between £50- EfW facilities could be some of the first 270/t by 2030 and £40-300/t by 2050 for projects in the UK to deliver BECCS. industrial BECCS applications. 156 https://www.gov.uk/government/publications/greenhouse-gas-removal-methods-technology- assessment-report Biomass Strategy | 141 Biomethane BECCS As more AD plants invest in capture equipment to profit from the utilisation Biomethane is a renewable gas produced market, by either designing new plants most commonly via anaerobic digestion with CO2 capture or retrofitting, the usage (AD), a process whereby organic materials market will eventually become saturated. are broken down by microbes in the Therefore, AD plants will need to consider absence of oxygen to produce biogas, longer-term opportunities to provide a which is in turn upgraded by removing form of BECCS. CO2 and other gases prior to grid injection. This upgrading process generates a high We will consult on introducing a policy purity stream of CO2 as a by-product, in framework for biomethane to follow the comparison to other CO2 sources, that closure of the Green Gas Support Scheme can be efficiently captured, resulting in (GGSS) and as set out in the GGSS Mid- additional carbon savings. Scheme Review, we are taking a holistic approach to identify the barriers to the Anaerobic digestion is a mature industry growth of the biomethane market and (Table 6.1), with carbon capture understanding how best to address these. technologies already in use across the This includes understanding the economic sector. At present, it remains a commercial and carbon abatement opportunities decision for producers to use CCUS from CO2 from biomethane production technologies, however CO2 capture in both the usage and storage markets, represents a significant opportunity for and how we can seek to maximise the AD industry. these opportunities, and identifying and considering how to address potential The shortage of CO2 from UK fertiliser barriers to AD Biomethane BECCS production has offered opportunities deployment, including transport and for AD plants to sell their CO2 to the storage of CO2. general usage market, including the food and drinks industry. Other markets for In addition to the potential for AD CO2 usage may develop in time such biomethane BECCS described above, as low carbon cement and refrigerated any future gasification plants producing transportation. CO2 used in food biomethane could also capture carbon for production must meet a specific standard, storage, though these technologies are not which the majority of CO2 from the AD yet deployed commercially at scale (Table process in the UK meets. 6.1). The UK TIMES modelling of High Resource and High Innovation scenarios suggests that deployment biomethane BECCS (via gasification) could be cost- optimal in 2050. 142 | Biomass Strategy Hydrogen BECCS The Low Carbon Hydrogen Standard157 sets a maximum threshold for GHG Hydrogen BECCS is expected to play emissions allowed in the production an important role in supporting the process for hydrogen to be considered UK’s decarbonisation objectives. The ‘low carbon’ and therefore potentially government is supporting new low eligible for the Hydrogen Production carbon hydrogen projects through the Business Model and the NZHF. Hydrogen development of a Hydrogen Production producers are permitted to account for Business Model, to provide ongoing negative emissions directly related to revenue support, and the Net Zero CCS in their process when calculating the Hydrogen Fund (NZHF), to support carbon intensity of hydrogen production. development and construction costs of However, the Low Carbon Hydrogen new low carbon hydrogen production Standard does not provide an incentive in facilities. These will help to stimulate private and of itself to deliver additional negative investment in new low carbon hydrogen emissions beyond the threshold being met. projects and to achieve our ambition of up to 10 GW of low carbon hydrogen capacity by 2030, subject to affordability Low carbon fuels BECCS and value for money. Both the Hydrogen Production Business Model and NZHF are Although production of low carbon fuels designed to be applicable to a broad range with BECCS is yet to be deployed in the of hydrogen production technologies and UK, there are five operational BECCS operating patterns. projects in North America that have combined bioethanol production with Whilst the Hydrogen Production Business CCS. The largest, operational since 2017, Model does not explicitly value negative captures up to 1 Mt CO2/yr from corn- emissions, it will support both the capture based bioethanol and stores the CO2 in plant and hydrogen production plants a dedicated geological storage site deep for CCUS-enabled hydrogen producers. underneath the facility.158 It is likely that the Therefore, it is possible that the model may future deployment of this route of BECCS provide sufficient policy support to deliver will be minor, due to the capped nature negative emissions through hydrogen of crop-based routes for renewable fuel BECCS, without the need for additional supply, although advanced fermentation support. In 2022 the GGR business processes may develop. models consultation sought views on the most appropriate route to incentivising As with hydrogen BECCS, there are more this technology, which will inform future advanced and developing technologies, decisions on the relationship between the such as gasification with Fischer-Tropsch, Hydrogen and GGR business models with that will be vital for delivering low carbon respect to hydrogen BECCS. fuels, that could also provide a stream of CO2 for capture and sequestration. 157 https://www.gov.uk/government/publications/uk-low-carbon-hydrogen-standard-emissions- reporting-and-sustainability-criteria 158 https://www.globalccsinstitute.com/wp-content/uploads/2019/03/BECCS-Perspective_FINAL_18- March.pdf Biomass Strategy | 143 This will be deployed at a larger The recent SAF consultation sought scale, but on a longer timeframe than views on how negative emissions should other BECCS routes. be treated under the mandate and how this can complement existing and Encouraging the integration of BECCS in future DESNZ policy. When finalising the SAF production process will maximise the policy design, we will ensure that GHG savings from SAF. The upcoming it is appropriately aligned with wider SAF mandate, due to start in 2025, is government policy on negative emissions viewed as a key mechanism to increase markets and incentives to avoid perverse the adoption of SAF BECCS. It has been impacts; for example, by creating market confirmed that the mandate will reward distortions or a competitive advantage for the supply of SAF proportionate to the life SAF projects over other negative emissions cycle GHG savings, thereby incentivising production technologies. technologies that can maximise decarbonisation.

6.7 Biochar Biochar is a carbon-rich solid material right conditions.159 If realised, these dual obtained from the thermochemical benefits of environmental improvement and conversion of biomass, that has removed carbon storage would mean that biochar CO2 from the atmosphere during plant could play a valuable role in achieving growth, via pyrolysis or gasification. It can the UK’s climate objectives and providing be produced from a range of biomass, ecosystem services whilst leaving our though biochar properties are highly natural environment in a better state affected by the biomass feedstock and than we found it. We have committed to production conditions. continue exploring the potential to deploy biochar for carbon sequestration through There is growing interest in the application application to land in the Carbon Budget of biochar to suitable land to deliver Delivery Plan. a range of environmental co-benefits – including reduced GHG emissions, However, these benefits are still not improved soil functions, and carbon assured and further research is required sequestration. In addition to agricultural before biochar could be deployed at scale. and land use benefits, biochar may offer For example, there remain uncertainties a GGR route by providing stable carbon on the precise timescales of carbon storage over long timescales – potentially storage as well as the potential risks hundreds or thousands of years under the associated with applying biochar to soils 159 Estimates of the carbon sequestration potential of biochar in the UK is limited. According to a 2021 study conducted by Element Energy and the UK Centre for Ecology and Hydrology, commissioned by Department of Energy Security and Net Zero, biochar could deliver 3.8 MtCO2/yr engineered removals by 2050 under the Balanced-Central scenario. However, these estimates assume the use of dedicated biomass crops and do not account for variable durability of biochar in soils, which may vary as a function of biomass feedstock, pyrolysis, and the properties of the soil in which it is stored. 144 | Biomass Strategy in the UK. To date, much of the evidence through its GGR research and innovation on biochar stability is based on laboratory programmes. As part of a £30 million data and localised short term studies in project, UK Research and Innovation tropical regions. Additional complexity (UKRI) is funding a biochar demonstrator arises from the fact that biochar’s physical that will investigate the stability of biochar properties, carbon sequestration potential, with respect to carbon sequestration as and co-benefits when applied to the soil well as impacts on environmental health are highly affected by variables such and soil ecosystems (e.g., Box 6.4). as biomass feedstock type, pyrolysis conditions, application rate, soil conditions, The project includes field trials of biochar climate, and agricultural or management application across different farming and practices. As a result, biochar represents a land management scenarios in England challenge to regulators, because different and Wales, allowing the effects of ‘real- varieties of biochar can have so many world’ management practices on the different properties, and these can in turn behaviour of biochar to be evaluated to influence its effects. provide a sound basis for future policy development. Additionally, the Environment There are existing regulations which Agency is currently undertaking its own landowners who want to apply biochar research to collate evidence on the wider produced from waste feedstocks to land environmental impacts of biochar, as well must adhere to, as well as guidance and as undertaking long term biochar trials a permitting system for using this biochar to assess their impact on soil health as for land spreading that they can consult. well as agricultural quality and quantity. The Environment Agency has published Phase 2 of the DAC and GGR Innovation advice covering the small scale and low risk Competition was announced in July 2022, production of biochar and is continuing to which included £18 million of government explore appropriate regulation for biochar.160 funding awarded across five promising biochar demonstration projects.161 Land use implications will be important when considering most suitable biomass Along with the government’s regular feedstocks for biochar production. engagement with academics and Demand for dedicated biomass crops research institutes, the findings of for biochar will need to be balanced with these research programmes will help other priorities such as food security and to inform the development of policy delivering environmental targets. and regulatory frameworks to enable the safe and sustainable utilisation of The government is taking active steps biochar for climate mitigation and other to address critical evidence gaps environmental services. 160 Storing and treating waste to make biochar: LRWP 60 – GOV.UK (https://www.gov.uk/government/ publications/low-risk-waste-positions-miscellaneous/storing-and-treating-waste-to-make-biochar- lrwp-60), Storing and spreading biochar to benefit land: LRWP 61 – GOV.UK (https://www.gov.uk/ government/publications/low-risk-waste-positions-landspreading/storing-and-spreading-biochar-to- benefit-land-lrwp-61), SR2010 No 4 mobile plant for land spreading (https://assets.publishing.service. gov.uk/government/uploads/system/uploads/attachment_data/file/790263/SR2010_No_4_mobile_ plant_for_landspreading.pdf) 161 https://www.gov.uk/government/publications/direct-air-capture-and-other-greenhouse-gas-removal- technologies-competition Biomass Strategy | 145 Box 6.4 Case Study: Severn Wye Energy Agency – Mersey Biochar The Mersey Biochar project is part of the GGR Innovation Programme. It is led by Severn Wye and Pure Leapfrog, two charities with a drive to deliver community scale zero carbon energy solutions. The project combines innovative and existing technologies to create a carbon negative, community scale, flexible power and heat process. The vision is for small scale biochar processing facilities to be connected onto communal and district heat networks, decarbonising heat and providing flexible dispatchable power into the grid from the projects innovative energy storage system. The process not only removes carbon from atmosphere, but critically it tackles the two of the biggest challenges in the energy transition, the decarbonisation of heat and the provision of zero carbon peak demand energy. This is achieved by using biochar pyrolysis technology designed by Pyrocore, to turn underutilised biomass feedstocks from local and sustainable sources into biochar, capturing carbon in a stable structure which is then sequestered for generations. The pilot site location will be in Warrington. © Department for Energy Security and Net Zero 7 Biomass uses across the economy Biomass Strategy | 147 Our Key Messages Electricity • The use of biomass in the UK’s power sector has helped to reduce the use of fossil fuels. • Biomass electricity and Power Bioenergy with Carbon Capture and Storage (Power BECCS) could play an important role in providing either dispatchable or baseload power, complementing the variability of other renewables. • The priority for biomass in the electricity sector is BECCS. Government recently consulted on all new and refurbishing biomass plants needing to be carbon capture ready. Biomethane and greening the gas grid • Biomethane can directly displace fossil methane across a range of end uses, and the government recognises that it will continue to play an important role in optimising the path to net zero and increasing energy security. • Government is considering options for a future policy framework for biomethane following closure of the Green Gas Support Scheme (GGSS) and will consider the strategic and value-for money case of including other technologies and business models within scope. Heating • Biomass has a role in decarbonising the heating of certain properties such as off- gas grid homes that are not readily suitable for heat pumps, and where appropriate mitigations can be set in place to minimise air quality impacts. Combined heat and power • The Combined Heat and Power Quality Assurance Programme (CHPQA) will be setting out a Net Zero aligned policy trajectory for to help incentivise current combined heat and power (CHP) sites to decarbonise whether that be transitioning to electrification or low carbon CHP option. Transport • Biofuels are liquid and gaseous fuels produced from biomass that play an important role in the decarbonisation of the transport sector, replacing the use of fossil fuels. • While we see the use of biofuels today in light road vehicles, their role in transport will increasingly shifting to transport modes with limited alternatives to the use of liquid and gaseous fuels, such as aviation and maritime.162 162 Maritime is another transport mode that will be difficult to decarbonise in the period to 2050. More work is still needed to understand the demand for the different low carbon fuels needed to decarbonise the sector. 148 | Biomass Strategy Industry • Government aims is to facilitate industry’s switch from fossil fuels to low carbon renewable alternatives such as biomass. The challenge is to support this change by creating a robust strategy that enables industry to meet its objective of replacing 50TWh of fossil fuels with renewable energy sources by the year 2035. • Our focus is on effectively utilising biomass to achieve this target using greenhouse gas removal (GGR) technologies, such as BECCS. In the absence of viable BECCS infrastructure, we will continue to support biomass use in industry where limited low carbon alternatives are available. Hydrogen • In the British Energy Security Strategy (2022) we doubled the UK ambition to 10GW of low carbon hydrogen production capacity by 2030, subject to affordability and value for money. The hydrogen economy is still a nascent sector, and the UK is committed to supporting multiple production routes, including those that use biomass feedstocks, provided they meet the Low Carbon Hydrogen Standard and relevant funding criteria. Non-energy uses • Biomass is a flexible resource with potential to contribute towards decarbonisation activities not just as an energy source but also as material to displace fossil fuel use. • There is an increasing focus globally on the concept of the bioeconomy, which can be defined as including all sectors of the economy that use biomass to make materials and products. The following Chapter outlines details on out away from dense populations and sector-specific policy plans and action at a scale where mitigation techniques to support biomass use in the short, can be applied economically, to minimise medium and longer-terms. It is split to impacts to public health from air cover the main policy areas in government, pollution (Chapter 3). and includes electricity, biomethane and greening the gas grid, biomass with combined heat and power, transport, Biomass use across the industry and low carbon hydrogen economy: Public views production. Each section identifies the role of biomass within the sector and upcoming Biomass use across the economy was policies, plans and milestones. explored in the Biomass Public Dialogue Project.163 Participants evaluated the various Government is clear that wherever uses of biomass through a prioritisation practicable, biomass use should be carried exercise before explaining their underlying 163 https://www.gov.uk/government/publications/biomass-strategy Biomass Strategy | 149 thinking. Participants tended to discuss There were some concerns over the cost biomass in the context of the current energy of transitioning to biomass alternatives to crises, and so focused on the potential heat, power and transport fuels (biofuels), impact on fuel costs and the capacity of though for the latter it was expected that biomass to meet the nation’s energy needs. biofuels could be cheaper in future. The majority thought that using biomass Participants tended to connect biofuels for electricity generation should be more directly to net zero. Participants were prioritised over other uses because it has in favour of using biomass for the modes multiple applications, such as heating of transport they perceived as the highest homes and powering electric cars. In emitting, such as aviation and diesel- discussion, electricity and heating were fuelled vehicles. Participants were also in considered to always be in demand, favour of using biomass to replace other rather than linking directly back to their sources of electricity generation that were potential contribution to achieving net zero. perceived as less sustainable, such as gas.

7.1 Biomass for renewable electricity generation Summary Key benefits and The use of biomass in energy generation opportunities in the UK’s power sector has helped to The use of biomass in energy generation reduce the use of fossil fuels dramatically. in the UK’s power sector has helped to Biomass electricity generation (and power reduce the use of fossil fuels dramatically. BECCS) can operate at a baseload or In 2022, renewable electricity represented dispatchable level, which can help make 41.5% of total generation (135 TWh), and the electricity system reliable as well as biomass provided 11%164 of this, making net zero consistent. Post combustion it the second largest renewable electricity carbon capture and storage (CCS) is provider that year.165 technologically ready to deploy, and therefore government recently consulted Biomass electricity generation (and power on all new and refurbishing biomass plants biomass with carbon capture and storage: needing to be carbon capture ready. power BECCS) can operate at a baseload or dispatchable level, which can help make Government is reviewing the role of the electricity system reliable as well as biomass electricity in the power sector net zero consistent. Biomass and BECCS (unabated and with BECCS) in the Review therefore can contribute to our energy of Electricity Market Arrangements (REMA) system by ensuring a resilient and reliable and will consult later this year. 164 https://www.gov.uk/government/statistics/renewable-sources-of-energy-chapter-6-digest-of-united- kingdom-energy-statistics-dukes Table 6.2. 165 Second to wind which is combined onshore and offshore wind. 150 | Biomass Strategy supply, a priority outlined in the Powering the main by the priority use principles Up Britain – Energy Security Plan.166 and analysis underpinning this Biomass Strategy. Most biomass-based electricity generation, and some biomass with CHP has been We have no plans to remove support incentivised in the UK since 2002 under for biomass generating stations that the Renewables Obligations (RO), and are already supported under a current since 2010 in Great Britain at small scale government scheme. The existing support under the Feed in Tariff (FIT), which in schemes have enabled the investment and total have accredited 6.6 GW of installed construction of plants, the establishment capacity. These schemes are now closed. of biomass supply chains, and local distribution grid investment that have The Contracts for Difference (CfD) scheme been instrumental in reducing greenhouse is now the government’s main mechanism gas (GHG) emissions from the power for supporting new low carbon electricity sector so far. generation in Great Britain – which supports 1.4GW of biomass generation.167 Moving forward, it is anticipated that This provides income stabilisation, support for new plants will be directed generally for 15 years, making projects towards those priority use areas that with high up-front costs but long lifetimes may best enable biomass to be used to attractive to investors and lenders. It decarbonise hard to abate sectors and also protects consumers when electricity provide the services and products that will prices are high. be vital for meeting net zero. Ensuring a resilient and reliable The role of biomass for electricity supply net zero in supporting the The REMA programme is a major review decarbonisation of electricity into Britain’s electricity market design. generation REMA considers options for reform to all electricity (non-retail) markets and policies In ‘The Role of Biomass in Achieving that can provide signals for the investment Net Zero Call for Evidence’ (2021) a and operation of assets that generate, number of respondents indicated that store, and use electricity. This includes biomass could be valuable in supporting biomass and BECCS to the extent that the decarbonisation of electricity, and it currently does, or potentially could, the opportunity for biomass in delivering participate in electricity markets. negative emissions alongside electricity was important. For unabated power, One of REMA’s core objectives is to there was a general view that biomass increase the renewables deployment should be moved to where more valuable rate to meet our commitment to contributions to decarbonisation could decarbonise our electricity grid by be made. These views are supported in 2035. The REMA consultation168 in 166 https://www.gov.uk/government/publications/powering-up-britain 167 Includes 299MW plant MGT Teesside which is commissioning. 168 https://www.gov.uk/government/consultations/review-of-electricity-market-arrangements Biomass Strategy | 151 Summer 2022 identified that biomass Policy plans, proposals, and BECCS could play an important role in providing either dispatchable or milestones baseload power, complementing the The transition to a fully decarbonised power variability of other renewables. REMA system by 2035, subject to security of will build on the successes of the CfD supply, poses challenges to the continued scheme and will consider the role of smooth running of the electricity system. biomass and BECCS within this to ensure It will be critical that we have a range of our market arrangements are fit for the firm and flexible assets (including biomass future, and that they deliver for current and BECCS) which can generate electricity and future consumers, and maintain when variable renewable output is low, for security of supply. example during periods of low wind. Power bioenergy with carbon Balancing services that are used to ensure capture and storage grid operability, such as reserve and system restoration are currently highly Although there are various routes for dependent on fossil fuel generation. deploying BECCS across different Biomass already supplies ancillary industries, deploying BECCS in the power services, including frequency response sector meets the priority framework in that and system restoration services. REMA there are opportunities to deploy BECCS is considering options for raising the on existing plants which have already participation of low carbon providers in established biomass supply chains. Also, balancing services, including through the carbon capture technology, with the possible reforms to the Electricity System ability to capture around 90% of the CO2 Operator’s (ESO) procurement processes emitted during combustion, is available and modifications to the CfD and the and already being deployed at some scale Capacity Market to provide an incentive on non-biomass plants169 (Chapter 6). for low carbon generators to provide Biomass electricity and CHP without these services. Government intends to carbon capture is recognised as an publish a second REMA consultation important contributor to the electricity in Autumn 2023. system, but we do not anticipate We will continue to allow new eligible170 government support for deployment biomass projects to participate in the of any new, large scale biomass CfD scheme. The government keeps CfD plants without CCS. eligibility under review, and any proposals to change the technology scope of the scheme for future CfD awards would be consulted on, with any reforms to the CfD being wholly considered within the context of the proposed REMA reforms. 169 Wang et al. A Review of Post-combustion CO2 Capture Technologies from Coal-fired Power Plants. Energy Procedia 114 (2017) 650-665. 170 Eligible new projects include those that can meet the 2018 CfD sustainability criteria, and include technologies such as advanced conversion technologies, biomass with CHP, sewage gas, landfill gas and anaerobic digestion (above 5MW). 152 | Biomass Strategy Power generation with Carbon Unabated generation: Capture and Storage Repowering or repurposing? BECCS has been identified as a priority Several respondents to the 2021 Biomass use of biomass, and plants should Strategy Call for Evidence highlighted that consider the various business models consideration needed to be given to the being developed by government at present future of current electricity plants that are directly or indirectly supporting biomass not possible to retrofit to BECCS after they with carbon capture, as well as other reach the end of their subsidies. practical considerations for deploying BECCS from a particular location and It is recognised that many biomass plants scale. For this reason, the Decarbonisation provide an environmental service as well Readiness Consultation,171 proposed all as provide low carbon electricity and CHP new and substantially refurbishing biomass generation. Examples include landfill gas, generation plants will need to meet the poultry litter, waste wood and straw that Carbon Capture Readiness requirements172 would have to otherwise find alternative on their plant to provide a feasible future disposal routes. It is expected that the route to BECCS. The government support schemes should have delivered response to this consultation will be the necessary investment to deliver published this year. the plant and necessary infrastructure, however it is a priority that these While there were no power BECCS feedstocks are used now and in the future. projects on the Track 1 project negotiation list announced in March 2023, the This government acknowledges that the government indicated that Track 1 was not full repowering of renewable electricity the extent of our ambition and announced generation sites could play an important future development of carbon capture, role in our future electricity system and usage and storage (CCUS) through Track meeting HMG’s net zero and energy 2 and expansion of the Track 1 clusters. security objectives. HMG published Government is committed to facilitating its consultation response to the future the transition to power BECCS and has considerations for the CfD in July,173 within committed to develop a power BECCS which we note there is merit in further business model, subject to affordability and exploring the most appropriate revenue value-for-money. Government is currently support mechanism for repowering of considering the energy security landscape existing renewable sites. This includes the and the future ability to deploy power role the CfD specifically could deliver from BECCS given the CCUS timelines and is in CfD allocation round 7 onwards, however discussions on power BECCS deployment further work is required before specific with Track 1 applicants. decisions can be made. 171 https://www.gov.uk/government/consultations/decarbonisation-readiness-updates-to-the-2009- carbon-capture-readiness-requirements 172 https://www.gov.uk/government/publications/carbon-capture-readiness-ccr-a-guide-on-consent- applications 173 https://www.gov.uk/government/consultations/considerations-for-future-contracts-for-difference-cfd- rounds Biomass Strategy | 153 This does not apply to unabated coal-to- conversions to biomethane injection, biomass conversions, as government is due to value for money and operational working towards a power BECCS business considerations. Responses to that model that will look to support these types consultation are currently being analysed. of technologies in the future. The Energy Security plan committed Whilst we are committed to considering to consulting on a policy framework for the case for repowering within the CfD, biomethane following the GGSS. As it may be beneficial to divert biomass to part of considering options for future priority uses. In some instances, it could biomethane policy, government will be possible to repurpose existing sites consider the strategic and value-for-money to provide more strategic outcomes. case of including other technologies and For example, Anaerobic Digestion (AD) business models within the framework’s technologies could be diverted to grid scope, including conversion of existing injection, as is currently supported by infrastructure (e.g., biogas CHPs) to the GGSS (AD biomethane production biomethane production. was supported under the Non-Domestic Renewable Heat Incentive (NDRHI)), There may be alternative options to however eligibility is restricted to new repurpose or to otherwise support plants, biomethane plants. In the recent Green for example, government is undertaking Gas Support Scheme Mid-Scheme research to consider the options for Review consultation,174 government set landfill sites, including the co-location of out proposals to maintain the eligibility linked electricity generation or other low criteria of the GGSS to exclude CHP plant carbon businesses. 174 https://www.gov.uk/government/consultations/green-gas-support-scheme-mid-scheme-review 154 | Biomass Strategy

7.2 Biomethane production and greening the gas grid Biomethane is a renewable gas produced November 2021. Both schemes will most commonly via anaerobic digestion support biomethane injection into the (AD), a process whereby organic materials early 2040s. In the Powering Up Britain: are broken down by microbes in the Energy Security Plan, the government absence of oxygen to produce biogas, recognised the role that increasing which is in turn upgraded by removing CO2 domestic biomethane production can play and other gases. This biomethane can be to reduce carbon emissions, decrease injected into our existing gas grid to directly reliance on fossil methane, and provide displace fossil methane across a range of diversity in gas supply. Biomethane is also end uses. Biomethane also contributes eligible for support under the Renewable to increasing energy security, by virtue of Transport Fuel Obligation (RTFO), reflecting being produced domestically, sustainably, its potential to support the decarbonisation and delivering steady production volumes, of heavy transport. Biomethane also has provided feedstock supply is stable; plants an important role to play in improving can also be deployed relatively quickly, the circularity of our food systems, as compared to other energy infrastructure. resulting digestate could reduce the need for fossil fuel-based fertilisers, and Though AD plants are presently the increased treatment of slurries in AD could chief source of biomethane, it could also reduce the carbon emissions associated be produced through the gasification with agriculture. of biomass, or the upgrading of landfill gas produced when organic waste The analysis underpinning the priority use decomposes in landfill sites. Whilst assessment in Chapter 5 illustrates the biomethane will be the predominant focus important role that biomethane production here, raw biogas from AD can also play and usage can play in optimally reaching a role in decarbonising off-grid heating net zero by 2050. The prioritisation and and power through direct use of biogas sustainable deployment of biomass will in CHP engines. be critical to enable this role. Feedstocks suitable for the AD process represent Government recognises that biomethane only a subset of the whole of biomass injection into the gas grid is a cost-effective considered through this Strategy, and this way of contributing to near term legally Strategy analysis indicates which elements binding carbon budgets and decarbonising of the whole could be prioritised for our gas supplies. Biomethane production biomethane production in 2035 and 2050. via AD and injection into the gas grid is Across the three modelled 2050 pathways currently supported by two schemes and the Carbon Budget Delivery Plan in Great Britain: the Non-Domestic scenario for 2035, feedstocks such as Renewable Heat Incentive (NDRHI, which food waste, slurries and manures, sewage closed to new applicants on 31st March sludge, and the upgrade of landfill gas, are 2021, subject to certain exceptions), prioritised for biomethane production via and the GGSS, which launched on 30th AD. As biomethane can be used flexibly Biomass Strategy | 155 across many different end-uses, it has Increasing the proportion of biomethane the potential to help decarbonise multiple in the grid is a practical, established, and distinct sectors. This flexibility is valuable cost-effective way of reducing carbon as it enables us to adapt to the hard emissions associated with gas usage for to predict cost curves and deployment heating. The Climate Change Committee trajectories of existing and emerging has been recommending increasing the technologies in each sector, without having proportion of green gas in the grid since to make expensive decisions on which 2016, which government has supported solutions to focus on too soon. through the NDRHI, and now the GGSS. This section sets out how sustainable Biomethane can also be used as a biomethane production and usage is renewable fuel to decarbonise transport consistent with principles underpinning (either compressed into bio-CNG the priority use of biomass across the or liquefied into bio-LNG). Its use is economy, and how it can make an particularly attractive for heavy goods important contribution to the delivery of net vehicles (HGVs) and agricultural machinery, zero and increasing energy security. and other harder to decarbonise fleets, which may be more challenging to electrify. Biomethane (or raw biogas) from AD can Key benefits and also be used as part of a CHP system to opportunities power and heat industrial processes or a small off-grid area, as well as generate Key benefits and emissions savings from renewable electricity to export to the biomethane production and usage can national grid. Alongside production of be split into upstream and downstream digestate and its use as a natural fertiliser, elements. Upstream refers to benefits this can contribute to decarbonising the associated with waste management and agricultural sector. the feedstocks used, whereas downstream incorporates displacement of fossil fuels Capturing the biogenic CO2 removed from with biomethane, and benefits from CCUS biogas as part of the upgrading process and use of digestate. to biomethane can result in even greater carbon savings. This upgrading process Beginning with the downstream generates a relatively pure stream of CO2, component, biomethane has a range in comparison to other sources, that can of end-uses, which contribute to be efficiently captured, and the technology decarbonising various sectors of the to do so is currently being deployed on economy. This includes decarbonising AD biomethane plants. In the future, this heat, transport and power, and it can also CO2 could either be geologically stored, be used as a feedstock for a variety of with the potential to deliver negative industrial processes, as well as hydrogen emissions as a form of BECCS (Chapter 6) production, through steam methane or treated for CO2 usage markets across a reformation (SMR). Its flexibility as a fuel variety of sectors including agri-food and provides valuable optionality across end construction. Given the dispersed location uses, which could be adapted based on of AD plants across the country and the a context that will inevitably change and need to diversify and secure sources of evolve between now and 2050. food-grade CO2 supply, much of the focus 156 | Biomass Strategy on AD CO2 capture has been to potentially As recognised in the United Kingdom service the agri-food utilisation market. methane memorandum,175 processing However, as shown in Chapters 5 and wastes via anaerobic digestion reduces 6, we will need an increasing volume of these methane emissions, contributing negative emissions to remain on track for towards the UK’s commitments in line net zero up to 2050, in which biomass has with the Global Methane Pledge. To a critical role to play. As part of work on ensure we have capacity to optimally treat a future biomethane policy framework to these wastes and deliver the associated follow current support, government intends emissions savings, it is necessary for the to identify, and consider how to address, AD biomethane sector to continue growing potential barriers to AD Biomethane and developing. BECCS deployment, including transport and storage of the CO2. Biomethane production also contributes towards the development of renewable As well as biomethane and biogenic CO2, energy supply chains. Our analysis the AD process produces digestate. This suggests that over two thirds of existing organic material is what remains of the biomethane plants are located in rural biomass after the digestion process and areas, with 80% of all GB plants located can be used in place of fossil-derived in areas with a lower-than-average fertiliser, due to its nutrient rich content. Gross Value Added.176 Supporting the This further cements AD’s position in local development of this industry therefore circular economies and diversifies fertiliser benefits the wider economy by creating supply with a low carbon alternative. In jobs, developing net zero skills in the this way, waste streams produced directly workforce, and helping to diversify and from agriculture, such as slurries and crop grow the rural economy. residues, food waste, sewage sludge, and sustainably grown energy crops, can be processed to deliver renewable energy The role of biomass for before being returned to the soil as a high- biomethane production and quality fertiliser, beginning the cycle anew. its contribution to net zero In addition to these downstream emission The continued growth of the biogas and reductions, biomethane from AD delivers biomethane sector and maximising the upstream emissions savings and wider role it plays in the pathway to net zero, environmental benefits through its role as is dependent on a sustainable supply a waste management technology. When of biomass. Likewise, ensuring the left to decompose either in the open or in a optimal treatment of wastes, such as landfill, organic matter such as food waste, food waste, sewage sludge and slurries, municipal biowaste, sewage sludge, or depends on this continued growth in agricultural waste (manures, slurries), AD capacity (and consequent biogas or release potent GHG emissions such as biomethane production). methane and nitrous oxide. 175 https://www.gov.uk/government/publications/united-kingdom-methane-memorandum 176 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/ file/1018133/green-gas-impact-assessment.pdf Biomass Strategy | 157 Waste and residue feedstocks are a crucial Biomethane production from AD is element of the feedstock mix for AD, as consistent with each of the principles their use cements AD’s place in the circular that underpin the biomass priority use economy and leads to higher carbon assessment (sustainability, air quality, savings overall. As part of the food and net zero, circular economy), when drink waste hierarchy, AD is the preferred produced and managed sustainably destination for unavoidable food waste that and in line with sustainability criteria and cannot be redistributed, used as animal environmental protections. It contributes feed or processed into biomaterials. This to net zero and near-term carbon and delivers significant carbon savings over has the potential to deliver biogenic sending food waste to landfill and digestate CO2 for usage markets or sequestration that recycles nutrients to land and supports through the deployment of proven carbon a more circular economy. AD contributes capture technology. The upstream and toward several objectives; exploring options downstream emissions abatement means for the near elimination of biodegradable a biomethane plant supports maximising waste to landfill from 2028 (England), the value of residual biomass, in line with meeting an ambition to work towards waste hierarchy principles. Government eliminating food waste to landfill by 2030 support for AD biomethane through the (England) and meeting the target to recycle NDRHI and GGSS is already contingent 65% of municipal waste by 2035. Through on compliance with stringent sustainability using minimum waste thresholds of 50% of criteria, and we will explore opportunities biomethane by energy content on support to further build on this for any future policy schemes such as the NDRHI and GGSS, framework through the sustainability work we encourage the use of wastes and described in Chapter 2. residues in biomethane production over bioenergy crops. The analysis underpinning Chapter 5’s priority use assessment confirms the The use of perennial and non-perennial important role that biomethane production crops can also be incorporated in and usage can play in optimally reaching a sustainable feedstock mix for AD net zero by 2050. Across the three biomethane production, provided they are illustrative scenarios reaching net zero by grown sustainably, for example as part 2050, and the CB6 projection to 2035, of an integrated crop rotation regime and feedstocks such as food waste, slurries in accordance with good practice and and manures, sewage sludge, and the high environmental standards and with upgrade of landfill gas, are prioritised for minimal risk of indirect land use change biomethane production via AD. emissions. When incorporated in this way, we recognise the useful role that crops When biomethane is injected into the can play for managing feedstock mix grid, it can play a role in decarbonising when waste supplies fluctuate. However, all end-users of the gas grid, such as the use of these feedstocks should be heat for buildings, industry, and power balanced with other priority uses across generation. As we transition to net the economy and managed appropriately zero, we will continue to rely on the to minimise any potential impacts on food gas grid for energy and biomethane security, biodiversity and other sustainable will play a role in decarbonising the grid land management practices. and various end-uses, alongside other 158 | Biomass Strategy renewable technologies. As seen in the effectively. 30 TWh of AD and landfill gas Carbon Budget Delivery Plan scenario production is consistently included across for 2035 in Chapter 5, biomethane can each pathway, with additional production help decarbonise users of the gas grid, coming from gasification BECCS in certain including heating buildings. Beyond 2035 pathways. This significantly exceeds and towards 2050, the role of biomethane projected peak generation from current for heating buildings will be contingent on policy support for AD biomethane. future decisions on the role of the gas grid and will likely decrease as other renewable Biomethane can also play a role in heat technologies play a much larger role. decarbonising transport in the transition The UK TIMES model (Chapter 5) suggests to net zero and prior to other technologies that by 2050, in certain pathways, such as electrification becoming widely biomethane could largely be used to available. This is reflected in the fact deliver peaking power requirements that biomethane is currently helping to with CCS technology as part of a cost- decarbonise transport through the RTFO. optimised pathway to net zero. In this way, In addition to increasing AD deployment to biomethane in the gas grid could become make best use of the biomass feedstocks in effect a flexible “green gas battery”, referenced above, there is the potential that could support both inter-seasonal to increase biomethane production from and short term power requirements, other sources, including slurry lagoon complementing the variability of other gas capture, landfill gas upgrading and renewables. However, it is important to advanced gasification of biomass. As the note that these scenarios just set out what technology matures, gasification could is possible, rather than represent the ‘most facilitate increased biomethane production likely’ or ‘preferred’ solutions, and the beyond the upper potential derived from UKTM does not model the optimal future waste AD-suitable feedstocks, in line with role and scale of the gas grid. the priority use assessment and UK TIMES In 2022, 6.2 TWh of biomethane was analysis in Chapter 5. Gasification plants injected into the GB gas grid through could be designed to allow the production AD.177 Most of this injection was of biomethane, hydrogen or other biofuels, supported financially by the NDRHI providing adaptability through the transition or the RTFO. Continued support from to net zero. We will consider the strategic these schemes and the current GGSS and value-for-money case of including is expected to support a peak of around further technologies and business models 8TWh of biomethane injection per within the scope of a future post-GGSS annum by 2030.178 biomethane policy framework. Likewise, as existing AD CHP sites approach the end UK TIMES modelling suggests around of their subsidies for producing combined 30-40 TWh of biomethane production power and heat under existing schemes across the illustrative scenarios in 2050 such as the Renewables Obligation, Feed- would help the UK achieve net zero cost- in-Tariffs and the NDRHI, we will continue 177 https://www.gov.uk/government/statistics/renewable-sources-of-energy-chapter-6-digest-of-united- kingdom-energy-statistics-dukes 178 Based on internal DESNZ modelling of projected NDRHI and GGSS AD deployment and biomethane injections. Biomass Strategy | 159 to review evidence of the value for money requiring end-user behaviour change case associated with converting AD biogas or infrastructure investment. Where CHP sites to AD biomethane injection there is demand for gas across the plants or expanding those plants with economy, biomethane has a role to play biomethane injection capacity. in decarbonising this fuel supply. As mentioned above, the technology also Biomethane production from AD can has the potential in the future to deliver be, and is being, deployed at scale negative emissions as a form of BECCS. now to deliver carbon savings without Policy plans, proposals, milestones 2030s 2020s Future Framework Post GGSS 2010s Green Gas Support Scheme Role of biomethane Renewable Heat to 2050 Incentive 2021–2025/6 Address market barriers 2011–2021 Tariff based support funded by the Green Maximise revenue Tariff based support for sources biomethane injection Gas Levy Assess optimal production methods and technology Build on current sustainability criteria Investment and supply chain growth Figure 7.1: Policy plans, proposal and milestones to support biomethane production. Current support – GGSS tariff payments for a 15-year lifetime. The and NDRHI GGSS launched on 30 November 2021 and is currently open to applicants for four The Non-Domestic RHI launched in 2011 years. The GGSS only supports new AD and closed to new applications on 31 plants and does not support conversions March 2021 (subject to certain exceptions). of existing plants to biomethane injection. The GGSS provides tariff-support for In March 2023, we published the GGSS biomethane produced via AD and injected mid-scheme review consultation179 to into the gas grid. Producers will receive consider the effectiveness of the scheme 179 https://www.gov.uk/government/consultations/green-gas-support-scheme-mid-scheme-review 160 | Biomass Strategy and review several areas for potential how future policy could mitigate long amendments, with the aim of implementing term challenges affecting the availability any amendments during the 2023-2024 of waste and non-waste feedstocks for financial year. AD; the potential for greater diversion of livestock wastes to AD as a possible If it meets eligibility criteria, biomethane enabler of a more circular economy for use as a fuel can be supported under the nutrients and agricultural decarbonisation; RTFO. Under GGSS regulations, quarterly and barriers to maximising the value of production can be split between both the revenue streams that form part of the GGSS and the RTFO to enable different biomethane business model, including CO2 consignments of biomethane to receive capture and digestate valorisation. This payments from either the GGSS or the will consider how to unlock the benefits RTFO within the same quarter. Allowing from the growth in AD capacity and interaction between the GGSS and RTFO biomethane production, as well as how provides a strengthened incentive for to ensure any environmental impacts are investment in biomethane and encourages appropriately managed. maximum utilisation of plant capacity and provides greater flexibility for plants. Government will continue to work towards ensuring that the potential negative Future biomethane environmental impacts of AD deployment policy framework are mitigated, and practices which maximise the environmental benefits of Chapter 5 illustrates the additional volume AD and biomethane are incentivised. of biomethane that could be required for Government recognises that digestate an optimal pathway to net zero by 2050, contributes to ammonia emissions if above the level projected from current handled improperly when stored or policy support. In line with commitments in spread onto land. Therefore, government the Net Zero Strategy, Heat and Buildings is bringing forward a range of actions to Strategy and Repowering Britain: Energy reduce ammonia emissions, as set out in Security Plan, we are considering options the Clean Air Strategy. Industry standards for a consultation on a future policy such as the Environment Agency’s framework for biomethane to follow the (EA) Quality Protocols180 and the British closure of the GGSS. As set out in the Standard Institution’s Publicly Available GGSS Mid-Scheme Review, we are Specification (BSI PAS 110: Specification taking a holistic approach to identify the for whole digestate, separated liquor barriers to the growth of the biomethane and separated fibre derived from market and understand how best to the anaerobic digestion of source- address these. This includes, among segregated biodegradable materials)181 others, the following areas: work to ensure that digestate is managed and understand the right mix of soft levers and used appropriately to mitigate these regulations required to support growth of environmental impacts. the biomethane market, and assessing whether a market-based mechanism is Government has set out plans to reform required and what form this could take; fertilisers regulations and consult on 180 https://www.gov.uk/government/publications/quality-protocol-anaerobic-digestate 181 https://wrap.org.uk/resources/guide/bsi-pas-110-producing-quality-anaerobic-digestate Biomass Strategy | 161 measures to reduce ammonia from the is keen to continue working with industry storage and spreading of digestate. to minimise the risk of fugitive methane Similarly, as part of a broader review of emissions reversing the assumed climate waste quality protocols, the Environment benefits of policy and so undermining Agency is currently reviewing the quality the multitude of benefits deriving from protocols for digestate. We will also biomethane AD production. Government continue to monitor best practices in is also committed to ensuring the planning ammonia mitigation from digestate and and environmental processes continues work with partners, including in industry, to to support efficient and sustainable consider future policy decisions. This will biomethane deployment. include work to further our understanding of the market for digestate and consider Research & Innovation ways to stimulate demand and facilitate To support existing and future biomethane end uses so that it can become a policy, we are commissioning research to substantial revenue stream for AD plants. create a methodology for conducting a life In order to avoid erosion of the benefits cycle assessment (LCA) of biomethane set out above, it is vital that methane produced from AD in the UK. This work leakage from AD biomethane plants is will result in an updated tool for calculating minimised. Government commissioned whole-life GHG emissions, including the a study into fugitive methane emissions impacts of end-of-life use of feedstock, from the AD industry, which concluded in embodied carbon in the infrastructure April 2023, and we have also sought to used to process the feedstock, fugitive gather evidence on current and potential emissions or indirect land use change methane leakage prevention, monitoring, due to feedstock expansion. The project and mitigation practices through the will also provide an evidence review of GGSS Mid-Scheme Review consultation, AD LCAs and develop a methodology to which closed in May 2023. Government assess different types of AD plants. This will inform analysis of the carbon saving benefits from AD biomethane, and how it may be supported in the future. 162 | Biomass Strategy

7.3 The use of biomass in heating Summary to play in all future heating scenarios, therefore this is a ‘no-regrets’ target as it The use of biomass in heat generation will be necessary even if hydrogen were has increased in recent years. Renewable to become the primary fuel source for heat generation across all technologies heating buildings. (e.g., bioenergy technologies, active solar heating, heat pumps, etc) has increased Biomass has a role in decarbonising by 14.6% between 2019 and 2022 with certain properties, such as off gas grid most of the increase generated from use homes that are not readily suitable for heat of biomass resources. In 2022, biomass pumps, and where appropriate mitigations for heat (including biodegradable waste) can be set in place to minimise air quality totalled 3.2 Mtoe representing 72% of the impacts. Biomass is also used to generate

4.4 Mtoe of heat from renewable sources, biomethane for injection into the gas grid, whilst heat pumps provided most of the or to use directly for heat (Section 7.2). remainder (27% or 1.2 Mtoe). Of the heat Biomass for use in domestic and non- from biomass resources 2.8 Mtoe or 89%, domestic heating has until recently was provided by wood, waste wood, and been supported through the Domestic plant biomass, with the remainder provided Renewable Heat Incentive (DRHI) and by biogas and biodegradable waste.182 NDRHI and more recently by the Boiler The Heat and Buildings Strategy183 outlined Upgrade Scheme. the strategic approach government is taking to the decarbonisation of the heat and buildings sectors. The Scottish Government The role of biomass published its Heat in Buildings Strategy184 for net zero in heating on 7th October 2021, setting out a vision decarbonisation and actions for the decarbonisation of heat in homes and buildings in line with Domestic Renewable Heat Scotland’s statutory climate targets. Incentive (DRHI) Scheme Electrification of heat is currently one The DRHI launched in April 2014 and of the few proved scalable options for closed to new applications in March 2022. decarbonising heat. The ‘Ten Point Plan It operated in England, Scotland, and for a Green Industrial Revolution’, the Wales (there was a separate Northern government announced an aim to install Ireland Renewable Heat Incentive which 600,000 heat pumps a year by 2028, is also closed to new applications). up from approximately 70,000 per year The DRHI supported ground and air currently. Heat pumps will have a role source heat pumps, and solar thermal 182 https://www.gov.uk/government/statistics/digest-of-uk-energy-statistics-dukes-2022 Table 6.4. 183 https://www.gov.uk/government/publications/heat-and-buildings-strategy 184 https://www.gov.scot/publications/heat-buildings-strategy-achieving-net-zero-emissions-scotlands- buildings Biomass Strategy | 163 panels, in addition to biomass boilers and Non-domestic Renewable Heat pellet stoves. The scheme was targeted Incentive (NDRHI) Scheme largely, but not exclusively at single domestic retrofit properties that are off In November 2011 the NDRHI scheme gas grid. Although the scheme has closed was launched offering financial support for to new applications, DRHI payments are the installation of eligible renewable heating made in arrears over 7 years, so final systems. It was applicable in Great Britain payments will be made, and the scheme (there was a separate NDRHI Scheme for will finally shut down, in 2029. DRHI Northern Ireland). It was open to renewable payments for biomass installations are heat installations that provide heat to calculated by multiplying the biomass buildings and for purposes other than tariff by the heat demand for the property, heating a single domestic property. taken either from the property’s Energy A range of technologies were eligible Performance Certificate or the actual heat for support under the NDRHI, include generated by the installation if metering for biomass boilers; air source, water source payment has been installed. and ground source heat pumps; solar At the end of December 2022, 114,766 thermal systems; deep-geothermal; installations had been accredited to the biogas-combustion systems; combined DRHI, generating 7,865 GWh of heat, and heat and power CHP) systems using a installing 1,355 MW of renewable capacity. range of renewable fuels and sources, and Of these installations, 12,477 were biomass the production of biomethane for injection boilers or pellet stoves, generating 3,242 into the gas-grid. GWh of renewable heat, and installing 323.5 As per the Clean Air Strategy, the MW of renewable capacity. The majority of government changed the regulations in these installations took place in 2014 (4,054 2021 to manage the trade-offs between installations), and 2015 (4,816 installations). energy and public health when developing This reflected that ‘legacy’ installations strategies to meet air quality and carbon (installations with a commissioning date on targets. These changes included or after 15 July 2009 that were otherwise mandating fuel quality standards and the eligible for the DRHI) could apply to be introduction of annual maintenance checks accredited to the DRHI in the first year of (See Chapter 3 for more on air quality). scheme operation, and that the biomass tariff at scheme launch made biomass In March 2022 both the DRHI and NDRHI installations particularly attractive. schemes introduced air quality standards, with the requirement that all wood pellets As part of the DRHI’s budget control must meet the ENplus A1 standard or measures, the biomass tariff ‘degressed’ an equivalent standard, and that all other (reduced) several times throughout 2014 wood fuel must also meet fuel quality and 2015, and deployment levels after standards. However, the Russian illegal 2015 were much lower, averaging just over invasion of Ukraine in February 2022 led to six hundred installations per year for the the UK and European Union suspending remaining 6 years that the DRHI was open imports of Russian and Belarussian for applications. pellets. This caused a shortage of biomass pellets and significant price increases across Europe. As a result, these air 164 | Biomass Strategy quality requirements for pellets were meet air quality and carbon targets. These suspended for 12 months to allow changes included mandating fuel quality alternative grades of pellet to be used in standards and the introduction of annual installations accredited to the NDRHI, and maintenance checks. to reduce pellet prices. The government is keeping biomass pellet prices under The NDRHI scheme is now closed and review and has powers to extend the there are no policy changes planned. suspension, if necessary. We however will continue to monitor with a view to ensuring that policies are The Scheme was closed to new compatible with net zero plans. This will applicants on 31 March 2021, subject to ensure the sustainability of the fuel is certain exceptions. compatible with UK laws and could help stabilise prices during periods of scarcity. Biomass saw a strong deployment under the NDRHI and continue to provide Boiler Upgrade Scheme strong contributions towards the UK’s decarbonisation targets. Support for The Boiler Upgrade Scheme opened for biomass under the NDRHI aimed to applications on 23 May 2022 and aims to foster a strong market and supply chain, incentivise and increase the deployment of by bridging the gap between the cost of low carbon heating by providing targeted biomass systems, their feedstocks and support to the supply chain. It is focused fossil fuel alternatives. on building the heat pump supply chain but will offer grants of £5,000 to support NDRHI installations are required to the installation of biomass boilers up to comply with strict sustainability criteria 45 kW capacity in domestic and non- for the feedstocks used and this properly domestic buildings in rural areas off the managed use of biomass can deliver gas grid. Biomass boiler owners should the additional benefit of encouraging use fuel from a supplier listed on the sustainable forestry practices. Biomass Suppliers List. Solid biomass is eligible for the NDRHI only Decarbonising Properties Off the where that heat is generated using boilers Gas Grid specifically designed and installed to burn biomass. The 2018 reforms to the NDRHI There are around 1.1 million homes in delivered improved value for money to the England not connected to the gas grid, taxpayer by altering the tariff structure to which are using some of the most carbon focus support on larger installations and intensive fuels still in use for heating biomass for process and district heating. purposes across the UK, including heating oil, liquefied petroleum gas, At scheme closure, there have been and coal. Transitioning these properties 16,890 biomass installations accredited onto clean heat is a priority as it will to the NDRHI, with a combined total keep us on track for net zero, build our capacity of 4,252MW. As per the Clean energy independence, and help protect Air Strategy, the government changed households from the impact of high and the regulations in 2021 to manage the volatile energy costs. trade-offs between energy and public health when developing strategies to Biomass Strategy | 165 We expect most of these properties fuels which have been proposed for use will ultimately transition to a heat pump. in heat – including Hydrotreated Vegetable Heat pumps are a proven, highly efficient Oil (HVO) and bio-liquified petroleum gas technology. They are consistent with net (bioLPG) – are not currently available zero as the electricity grid decarbonises, for heat on a commercial basis. It is not and households switching to them from currently clear what volume of sustainable oil systems will be much less exposed to feedstocks would be available to produce the impact of price spikes in global energy these fuels, but we expect them to be markets due to the greater use of secure, limited in supply and in high demand from renewable forms of energy. Government other sectors like transport. modelling estimates that around 80% of off-gas-grid homes are already sufficiently However, we have been working with well insulated for a low temperature heat representatives of the heating oil industry, pump to work effectively. and liquified petroleum gas (LPG) industry, to start building the evidence We recognise that heat pumps will not on the potential to scale up production work everywhere, a small number of off- of renewable liquid fuels such as HVO gas-grid properties are simply too poorly and bioLPG, respectively, consistent insulated or have certain characteristics with very low levels of carbon emissions that would make installing this technology for use in heat. unfeasible. Consistent with the principles of best use of biomass (set out in Chapter Use of HVO in heating 5) we expect any use of biomass to Hydrotreated Vegetable Oil (HVO) could decarbonise heat off the gas grid would prove a convenient route to decarbonising be focussed on those properties which are some off-grid properties – oil heated not readily suitable for electrification. households would only need to make minor modifications to their existing oil The government is considering a range boilers to use this fuel. However, HVO is of options to decarbonise off-grid not currently offered to heat customers on properties that are not readily suitable for a commercial basis, and the government electrification, including pairing energy understands that the current cost of efficiency measures and a low temperature heating a property with HVO would be heat pump, installing high temperature significantly more expensive than the cost heat pumps, hybrid heat pump systems, of heating a property with kerosene. solid biomass systems, and renewable liquid fuels. The government will assess When derived from waste feedstocks the suitability of these options, considering like used cooking oil, HVO can have the extent to which they are consistent considerably lower carbon emissions than with the priority use principles and also the traditional fossil fuels currently used the extent to which they offer a positive for heating off the gas grid. However, HVO experience for households. derived from used cooking oil is likely to be in short supply and in high demand from The use of biomass to decarbonise heat other sectors such as transport due to its off the gas grid is one of the areas that suitability as an aviation fuel. HVO derived have not been included in the UK TIMES from other feedstocks can be associated illustrative scenarios set out in Chapter with much higher carbon emissions than 5. This is because the renewable liquid 166 | Biomass Strategy fossil fuels. Moreover, over-committing fuels such as HVO or bioLPG towards these scarce sustainable feedstocks risks those properties off the gas grid that shortages in sectors that need it most, cannot be readily decarbonised through or driving up the use of virgin feedstocks electrification, subject to further work to like palm oil, which can have much higher establish confidence in the likely available emissions, and which are associated supply of the sustainable feedstocks used with deforestation in other countries, to to produce these fuels, and considerations supply global HVO demand that cannot be around best use across other sectors, met from wastes. incorporating the priority use principles. Use of bioLPG in heating Following the publication of the Biomass Renewable liquid petroleum gas (BioLPG) Strategy, the government will continue and renewable dimethyl ether (rDME) to work with stakeholders to build the could also prove useful measures for evidence base that will inform decisions decarbonisation of off-grid properties. later this decade on what role renewable BioLPG is a drop in fuel that could be liquid fuels could play in the future heating used in existing LPG boilers without mix, especially where heat pumps cannot modifications being made. We understand be used, and the policy framework which from the LPG industry that rDME could would support such a role. This work will be used in an existing LPG system with consider the overall amount of sustainable certain modifications or blended with LPG feedstock, available to the UK, that could up to a certain point with no need for be used to produce renewable liquid system modification. fuels for heat, how this could be best used across the economy to achieve our As with HVO, these fuels are not yet net zero target. commercially available for home heating, may be subject to limited availability of Domestic heat policy, including domestic sustainable feedstocks, and the costs of biomass, is a devolved competence in using these fuels in heat may be much Scotland. Therefore, any future support higher than current cost of heating a for biomass and other domestic heat property with regular (fossil) LPG. decarbonisation measures in Scotland will now be provided by the Scottish Government as part of their Heat in Policy plans, proposals, Buildings Strategy.185 milestones The use of sustainable biomass must be prioritised in sectors that offer the greatest opportunity to reduce emissions and where there are fewest options to decarbonise through alternative low carbon technologies For heat, this will mean focussing the use of renewable liquid 185 The Scottish Government’s Heat in Buildings Strategy: https://www.gov.scot/publications/heat- buildings-strategy-achieving-net-zero-emissions-scotlands-buildings Biomass Strategy | 167

7.4 Biomass with combined heat and power Summary Following the closure of the Renewable Obligation scheme and the Non-Domestic Combined heat and power (CHP) is Renewable Heat Incentive, a Contracts for an efficient process that captures and Difference scheme has provided funding to uses the heat that is produced in power some renewable CHP sites. generation, this is usually electrical but can in some instances be mechanical. By Renewable fuels used in CHP are reported generating heat and power simultaneously to have generated a total of 16.0 TWh of from the same fuel, CHP can achieve high electricity and heat in 2022.186 CHPQA efficiencies and reduce emissions. Where a certified CHP plants are able to provide demand for both heat and electricity an audit compliant high efficiency use exists in the same location, CHP can for strategically important biomass reduce energy costs. feedstocks. Such applications of CHP technology are well suited to hard-to- CHP plants can encompass a range of decarbonise situations such as providing different generation technologies and be low carbon heat and power to dispersed fuelled by fossil fuels or renewable sources locations distal from the industrial clusters. such as biomass. CHP generators may export power not used on site and when acting as dispatchable generation, CHP The role of biomass for net can adjust its exported power output to zero in CHP provide flexibility services to the electricity network. CHP has been identified as CHP is a proven and versatile technology having an important role in contributing that can provide a low carbon fuel option to decarbonising heating and cooling, for existing unabated natural gas CHP. achieving energy efficiency savings across A benefit of the technology is that it multiple sectors and the transition to can maximise the efficiency of biomass low carbon fuels. conversion by producing heat and power simultaneously. It is also flexible in that The Combined Heat and Power Quality it is suitable for dispersed locations and Assurance Programme (CHPQA) off grid applications and can operate certification acts as a ‘passport’ to enable from small to large capacities (10 KW certified CHP plants to access government to 1.3 GW). It can therefore provide support through several incentives. The flexibility and security of supply for sites, current incentives are predominantly with an 8-15-year life cycle of main operational tax exemption-based engine component allowing for long term incentives which require the CHP plants investment decisions to be made. CHPQA to maintain CHPQA Certified Good Quality will be setting out a Net Zero aligned status to continue to access the support. policy trajectory to help incentivise current 186 https://www.gov.uk/government/statistics/combined-heat-and-power-chapter-7-digest-of-united- kingdom-energy-statistics-dukes 168 | Biomass Strategy CHP sites to decarbonise whether that Policies, proposals, and be transitioning to electrification or low carbon CHP options. milestones CHPQA does not administer or control CHP can also offer flexible dispatchable any direct funding mechanisms to support capacity to the electricity grid to help biomass CHP. The scheme has historically offset renewable generation intermittency provided a passport via certification to a and can provide surplus heat to district range of fiscal measures. As new business heating projects and heat networks. models are developed to encourage the The widespread use of CHP across use of biomass to aid decarbonisation, different sectors results in many complex CHPQA certification could provide a cross cutting policy interactions. There valuable means of verifying fuel inputs, are interdependencies with fiscal primary efficiency savings and heat and matters and legislative links to various power outputs thus acting as an eligibility other government policies where CHP gateway to new funding opportunities for is represented. potential biomass users. Use of BECCS alongside CHP must be Some major CHP equipment carefully considered and strategically manufacturers are producing engines deployed to maximise the potential which are able to operate on natural benefits. There are potential applications gas initially but be converted with to combine BECCS with highly efficient minimal modification to be able to burn CHP technology in dispersed hard to alternative fuels. decarbonise sectors such as cement production that are geographically suitable for the onward transportation of the captured carbon. Biomass Strategy | 169

7.5 Biomass use in transport Summary how BECCS can be best incorporated in the biofuel production processes and Biomass plays a role in decarbonising incentivised accordingly. transport as set out in the Transport Decarbonisation Plan. Biofuels, including Biofuels can be made from a variety of bioethanol, biodiesel and biomethane, biomass feedstocks. 2021 RTFO statistics account for around a third of the carbon list 45 different biogenic feedstocks from savings in the domestic transport sector 89 countries.188 As biofuels and their required under current carbon budget. feedstocks are often traded internationally, Currently, biofuel use in transport is mainly feedstocks and country of origin can vary incentivised by the UK’s Renewable year-on-year, depending on market drivers. Transport Fuel Obligation RTFO), which UK policy for low carbon fuels,189 including obligates all fuel suppliers to blend a biofuels, is driven by our commitments proportion of low carbon fuel into fossil to reduce our climate impacts, enhance fuels used in transport. The RTFO sets energy security and support green growth. rising low carbon fuel targets to 2032 after We are focused on promoting waste- which they will continue at that level. In derived rather than crop-derived biofuels, 2021, 2,558 million litres of low carbon to deliver the highest possible GHG fuels, mainly biofuels, were supplied under savings and address risks of indirect land the RTFO, which contributed 5.4% of total use change. All RTFO eligible biofuels need fuels supplied to the road and non-road to comply with strict sustainability criteria transport sectors.187 and minimum GHG thresholds. As set out in Chapter 6, BECCS can be The dominant feedstock for biofuels deployed in the production of biofuels has been used cooking oil (accounting and has the potential to deliver negative for 55% of all renewable fuels in 2021), emissions. Some biofuel plants already predominately used in the production of regularly capture and produce stored biodiesel. Other waste feedstocks include CO2 for use in the beverage and nuclear food waste, waste starch, slurry, tallow industry. The RTFO already accounts for and waste pressings. The contribution of CCS in its methodology, and the upcoming crop-derived biofuels to RTFO targets is sustainable aviation fuel (SAF) mandate capped, with the cap decreasing from 4% will reward SAF on the basis of GHG of total fossil and renewable fuel supplied savings to ensure the future integration in 2020, to 2% in 2032. In 2021, less of CCS in SAF production. However, than a quarter (24%) of biofuels supplied further work is still needed to establish under the RTFO were made from crops 187 In 2021, only 1,878litres of renewable fuels were derived from non-biomass origins, mainly hydrogen (a non-biological origin renewable fuel). 188 https://www.gov.uk/government/statistics/renewable-fuel-statistics-2021-final-report 189 The term low carbon fuels refers to fuels which deliver greenhouse gas savings compared to fossil fuels on a life-cycle basis. This includes biofuels but also renewable fuels of non-biological origin, for example renewable hydrogen, or recycled carbon fuels produced from unrecyclable plastics or waste gases. 170 | Biomass Strategy such as wheat, corn, barley, sugar In view of the transition of the use of low beet and sugarcane. Use of vegetable carbon fuels within the transport sector, oils, such as rapeseed oil, palm or soy, DfT will also publish a Low Carbon Fuels tends to be minimal given incentives for Strategy which will set out how the waste-derived fuels. deployment of low carbon fuels, including biofuels, may evolve in the period to 2050 Currently, most biofuels deployed in across the different transport modes. the transport sector are used to reduce emissions from road vehicles. As the transport sector decarbonises and the Key benefits and uptake of vehicles that are zero emission at the exhaust accelerates, the demand opportunities for liquid and gaseous fuels from the road At present, biofuels offer an available and sector will decline across all forms of road flexible resource to achieve immediate transport. However, low carbon fuels, carbon savings in the road and NRMM including biofuels, will remain important in sector. In 2021, fuels supported under the replacing fossil fuels in transport modes RTFO saved 5,068 kt CO2. On average, with more limited alternatives to use of fuels supported under the RTFO achieved liquid and gaseous fuels, such as parts a GHG saving of 83% compared to fossil of industrial Non-Road Mobile Machinery fuels on a life-cycle basis (almost 80% (NRMM) and in aviation, where they when accounting for indirect land use will likely be required in the period to change impacts) in 2021. This reflects the 2050 and beyond. fact that 76% of the fuels under the RTFO were produced from waste and residues. Separate to the RTFO, in support of the By diversifying supply of feedstocks, Jet Zero Strategy, DfT is developing a biofuels could also make a contribution to mandate for SAF to be operational from enhancing fuel security. 2025, which includes waste-derived biofuels amongst other low carbon Most biofuels are currently blended into transport fuels. Crop based biofuels standard petrol and diesel, using existing will not be eligible. The government infrastructure for fossil fuels. As we move response to the 2021 SAF mandate to zero emission cars and vans, demand consultation confirmed a target of at for liquid and gaseous fuels from road least 10% of UK aviation fuel to be made transport will decline. This may offer further from sustainable sources from 2030 and opportunities to deploy fuels with a higher high-level principles for the supply of SAF. biocontent, such as higher blends of The SAF mandate second consultation biodiesel, drop-in fuels190 or biomethane, was published in March 2023, building to maximise GHG savings from existing upon these commitments, outlining the vehicles with internal combustion engines mandate’s detailed design. The long in the short and medium term. However, term trajectory for the mandate will be as use of some of these fuels will require confirmed in the government response to some adaptations to infrastructure and the second consultation. engines, their use will need to be focussed on compatible heavy-duty vehicles. 190 ‘Drop-in fuels’ are fuels that are sufficiently similar to the fossil fuels they replace (e.g., petrol, diesel or kerosene) that they can be blended with no particular limits or ‘blend wall’. Biomass Strategy | 171 As part of the Transport Decarbonisation The role of biomass for net Plan, DfT committed to work with stakeholders to identify potential measures zero in the transport sector to address existing barriers to the Biofuels are currently one of the major deployment of higher biocontent fuels. measures to reduce carbon emissions in the transport sector, in particular from Heavier vehicles and vessels covering long road vehicles. As set out above, their role distances will continue to require liquid and within the transport sector is expected gaseous fuels for some time to come. In to evolve. As we move to net zero, their these cases, biofuels can play a vital role in use in the transport sector will need to be providing an alternative to fossil fuels and increasingly focused in areas and transport reduce carbon emissions. modes with limited alternatives to the use According to industry figures, more than of liquid and gaseous fuels. This includes 10,000 people are currently employed aviation and maritime, which are likely to in the UK biofuels sector.191 The require low carbon fuels beyond 2050. To government’s ambition to establish a UK further reduce emissions, carbon capture SAF industry could support around 60,000 and storage technologies will increasingly jobs by 2050 and £10bn of Gross Value need to be applied to biofuel production Added per annum including upstream processes, particularly in SAF production. benefits, though not all these fuels would be produced from biomass.192 Policy plans and milestones The production of biofuels can also result in valuable by-products, with biofuels just one • Later in 2023: Publish Low Carbon outcome of the refining process. Bioethanol Fuels Strategy, followed by further production in the UK, for example, results implementation actions. in protein-rich animal feed and stored • Summer 2023: Launch UK Clearing CO2 which is used in the agriculture and House for Sustainable Aviation Fuels and nuclear industries. Additionally, emerging announce winners of the second round biofuel production technologies such as of the £165m Advanced Fuels Fund. gasification and pyrolysis tend to result in • By end of 2023: Government response a suite of hydrocarbon products, some to second SAF mandate consultation of which can be used as precursors for and successful operation of the world’s the materials and chemicals sectors, first transatlantic flight on 100% SAF. supporting the circular bioeconomy. Adopting a biorefineries approach could • By end of 2023: Publication of a enable a suite of different products to be refreshed Clean Maritime Plan 2, setting produced which could process different out UK’s vision for the decarbonisation feedstocks depending on availability, with of maritime, including the role of the products being flexibly directed towards low carbon fuels. the sectors where they are most needed. • 2025: SAF mandate to come into force. 191 https://www.r-e-a.net/wp-content/uploads/2021/07/REview-2021-.pdf, p.34. 192 https://www.sustainableaviation.co.uk/wp-content/uploads/2023/04/Sustainable-Aviation-SAF- Roadmap-Final.pdf. The jobs and GVA figures are based on direct, construction and upstream jobs benefits. Analysis assumes UK SAF production costs are equivalent to wider global SAF production costs. 172 | Biomass Strategy Research & Innovation With demand for biofuels in particular from aviation expected to increase, The government is supporting research government want to capitalise on the and innovation on diversifying feedstocks environmental and economic opportunities for biofuels, new and improved processing that developing a strong UK SAF industry technologies as well as carbon capture can bring and we are exploring how to and storage through various means. As accelerate the commercialisation of UK such the RTFO contains a sub-target for SAF facilities. Through the Advanced Fuels “development fuels”, which are strategic Fund, DfT has made an additional £165m fuels not yet fully commercialised. These available to support the development of are novel, waste-derived biofuels and sustainable aviation fuel (SAF) plants in renewable fuels of non-biological origin the UK. In December 2022, five winning of strategic importance. They include projects were awarded a share of £82.5 for example drop-in fuels, hydrogen and million and the remaining funds will be fuels for aviation. As new feedstocks and allocated in the second application round. processing technologies become available, This funding drives the ambition to see we will also make sure that these fuels are at least five commercial scale SAF plants sustainable and provide maximum GHG under construction in the UK by 2025. To savings, for example through updates to accelerate novel SAF production pathways our sustainability criteria. to market, DfT is also setting up a UK SAF Clearing House to support testing DfT has also run successive grant and certification of advanced fuels. The funding competitions targeted to Clearing House is expected to launch develop innovative low carbon transport in Summer 2023. fuel production: the Advanced Biofuel Demonstration Competition, the Future Fuels for Freight and Flight Competition and the Green Fuels Green Skies competition providing capital funding to UK projects. A total of £62m was previously made available through these competitions. Biomass Strategy | 173

7.6 The use of biomass to support the decarbonisation of industry Summary Stakeholder engagement Biomass is a widely used, renewable The Biomass Strategy Call for Evidence source of energy and input material and several bilateral engagement sessions for industrial processes. However, it explored stakeholder views on the use comes in many forms and is used in of biomass in the industrial sector. The a variety of industrial processes, the engagement outlined the challenges the relative sustainability of these materials sector had encountered in finding a secure and uses varies. We recognise the role supply of waste biomass. Industries with of biomass use in industry to meet net feedstock uses and waste opportunities, zero, particularly where there are limited for example sugar and paper industries, alternatives to biomass to decarbonise noted concerns about market distortion specific processes (including those where by intervention. Trade-offs also include solid fuel is currently used). This includes the use of biomass for bioenergy where, long term uses in combination with BECCS for example, it may be more beneficial to to generate negative emissions, and in continue to sell feedstock for other uses, the short and medium as a transition fuel. such as animal feed. Additionally, as set out in Chapter 7.8, we recognise the need to further understand Stakeholders suggested that biomass non-energy uses of biomass across the use should be prioritised to sectors that economy including within industry. have limited options for decarbonisation, which could include decarbonising heat Biomass usage as a fuel in industry had use and raw materials in the manufacturing a steady increase in growth over the last industry. Responses also reflected that the ten years. Industry biomass use for final costs of switching to biofuels should be energy has increased steadily from 2 TWh supported, as there was competition for in 2005 to 20 TWh in 2022. Alongside this, biomass in other sectors. biomass has made up an increasing share of total industry final energy use over time, The engagement outlined the varying reaching 6.8% from a low of 0.5% in the views on the potential for biomass to early 2000s.193 Biomass, predominantly support decarbonisation across different plant based followed by waste wood industrial sectors, which ranged between derived fuels, are used in a range of biomass being seen as transitional rather industrial sectors, including paper, mineral than long term, to biomass being the only products, chemicals, food and drink, and current technological alternative to fossil other industries. fuels. They did however emphasise that where biomass was used, it was in CHP 193 Digest of UK Energy Statistics Table 1.1: Aggregate energy balances and Table 6.1: Renewables and waste commodity balances 2023 (https://www.gov.uk/government/collections/digest-of-uk-energy- statistics-dukes#2023) 174 | Biomass Strategy plants, which helped maximise the net However, industry is also a major source energy output. In contrast, the minerals of CO2 emissions, producing 17% (76 sector viewed the use of waste biomass as MtCO2e) of UK’s total in 2021. central to a zero fossil carbon fuel mix for cement manufacture. In the glass sector, Biomass will continue to play a key part in biofuels are viewed as transitional as they the transition to net zero for the industrial can be used in existing furnaces. sector, allowing industry to transition away from fossil fuels, reducing their emissions Industry noted that the security of while infrastructure is developed or supply and sourcing of biomass in the replacing fossil fuels in processes where future is a challenge. Trade-offs also other alternatives aren’t feasible, such as include the use of biomass for bioenergy off gas-grid sites, or in industries, such as where, for example, it may be more cement production, where biomass is the beneficial to continue to sell feedstock only current technological alternative to for other uses, such as animal feed. fossil fuels in some stages of the process. Government is considering what, if any, Biomass, in the form of biofuels, can also intervention is required. act as a fuel replacement for industrial NRMM, which currently accounts for 6 The sectors that utilise biomass are mostly MtCO2e/yr, with some industrial NRMM outside of the main industrial clusters users already switching to biofuels, such which affects which technologies are as HVO. Biofuels may play an important accessible for decarbonisation. Any use role as a transition fuel for industrial NRMM of BECCS, for example, will be expected (and potentially longer term for certain to occur in areas within or close to the machine types), in particular where these industrial clusters in the short term. can be substituted for fossil fuels without the need for machine modifications. Key benefits and opportunities Fuel switching from fossil fuels to low The UK’s industrial sector (manufacturing carbon alternatives in industry is crucial and refining) plays an important role in for the sector to meet its net zero target, society, contributing £180 billion to the and biomass will play a role in this in the overall UK economy in 2019 (£160 billion short and medium term as well as in the in 2020).194 It is a high value area of long term in combination with BECCS. employment, directly accounting for 9% of Additionally, as referenced previously in the UK’s GDP in 2019 (8% in 2020)195 and this Strategy, non-energy uses of biomass providing 2.5 million direct jobs196 across could play a role in decarbonising industrial the country, rising to around 5 million processes by replacing fossil fuels. jobs197 if including indirect jobs across the value chain. 194 https://www.ons.gov.uk/businessindustryandtrade/business/businessservices/datasets/ uknonfinancialbusinesseconomyannualbusinesssurveysectionsas 195 https://www.ons.gov.uk/economy/grossvalueaddedgva/timeseries/abml/qna 196 https://www.ons.gov.uk/businessindustryandtrade/business/businessservices/datasets/ uknonfinancialbusinesseconomyannualbusinesssurveysectionsas 197 https://www.ons.gov.uk/economy/nationalaccounts/supplyandusetables/ adhocs/009747ftemultipliersandeffectsreferenceyear2015bespokeindustrygroups Biomass Strategy | 175 The role of biomass for net zero The Industrial Pathway modelling within the sector carried out for the 2023 Net Zero Growth Plan indicates that bioenergy As laid out in the Industrial Decarbonisation demand could be in the range between Strategy (IDS) (2021) and the Biomass 25TWh to 35TWh between 2035-2050 Policy Statement, it is the government’s depending on scenario. position that biomass use in industry should be prioritised in combination with Policy plans, proposals, CCUS. Bioenergy is a part of the IDS and, along with other technologies, will help milestones to transform the UK’s industrial regions, Government support for biomass will attracting inward investment, future continue to align with the principles for proofing businesses and securing the long best use. We will continue to support term viability of jobs. Additionally, biomass biomass use across industry as a short also has potential as a transitional fuel for term transitionary fuel for some of the sectors where decarbonisation networks sectors within the scope of current cannot be accessed or in processes where schemes. In the long term (out to 2050), other decarbonisation technologies are not biomass use will be supported when readily available. combined with CCS technologies, or when there are limited alternative options The government’s ambition, as set out in to decarbonise. the Net Zero Strategy (2021), is to achieve 50TWh of industrial fuel switching to low Current government support includes the carbon fuels by 2035. We expect this Non-Domestic Renewable Heat Incentive primarily to be reached via switching from (NDRHI) (See Section 7.3). Government fossil fuels to electricity and hydrogen, outlined a series of reforms in 2018 which though bioenergy could enable further included tariff guarantees to provide carbon savings. We recognise that UK investment certainty to larger renewable industrial electricity prices are higher installations, changes to feedstock than those of other countries and have requirements to ensure the utilisation of committed to address this to ensure UK waste feedstock for anaerobic digestion industry remains competitive. A call for and amendments to eligible heat uses. evidence on industrial electrification will be The scheme subsequently closed in March published later this year. 2021 and was replaced by the Green Gas Support Scheme (GGSS), which supports Additionally, as described in Chapter biomethane production via anaerobic 7.2, biomethane can be used either in injection into the gas grid. CHP systems or separately to power industrial processes, the high innovation The Industrial Energy Transformation and high resource scenarios set out Fund (IETF) supports biomass projects in Chapter 5 see increased roles for principally as part of fuel switching biomethane in industry. technology solutions. This includes switching from fossil fuels to biomass if Analysis for the IDS found that between the stakeholder can justify the reason 51 to 57% of industrial energy will be for switching to biomass over other fuel decarbonised from fuel switching by switching options within scope of the 2035, increasing to 71-84% by 2050. IETF. Other criteria specific to biomass 176 | Biomass Strategy apply such as compliance with relevant Biomass does have potential to act as a air quality regulations, intention to transition fuel in industry and it is important secure appropriate permits, sustainable to strike a balance between taking sourcing of the biomass feedstock and advantage of these short term emission operational temperature of the industrial reductions and the longer term `deep process ≥240°C. Subject to business decarbonisation’ emission reductions that case approval, IETF Phase 3 will open for can be generated by other forms of fuel applications in early 2024, increasing the switching and BECCS. total funding available to over £500 million. In line with the priorities for biomass use As described above, modelling carried laid out in Chapter 5, we will continue to out for the Net Zero Growth Plan gives an review the need for further intervention to indication of the demand for bioenergy, direct the use of biomass within industry. however further work is needed to fully understand how to manage use within industry to maximise carbon abatement and drive us towards our decarbonisation goals. Where other technologies are not yet mature enough for widespread deployment and biomass can play a crucial role in driving abatement as a `transitional’ fuel, we will work to see if further support is needed to incentivise biomass use for this purpose and ensure equal access to biomass for industry to use as both a feedstock and a decarbonisation option. Additionally support for industrial BECCS will incentive industry to both decarbonise its processes and deliver negative emissions in the long term. As made clear in the previous sections of this strategy, biomass is a limited resource and as such its use needs to be targeted, additionally we recognise that, biomass represents one of the limited options to decarbonise certain industrial processes, and that work is needed to ensure access to these feedstocks is maintained. What follows from this is that biomass should be used where switching to other low carbon alternatives is not feasible and prioritised where carbon capture is possible, thus generating negative emissions. Biomass Strategy | 177

7.7 Biomass for low carbon hydrogen production Summary Key benefits and To deliver the future energy system we opportunities need to meet our legally binding carbon The most prominent hydrogen production budgets and achieve net zero, we need a pathways using biomass as a feedstock rapid increase in new low carbon hydrogen are expected to involve gasification production in the UK. In the British Energy technologies, were high levels of heat is Security Strategy (2022) we doubled used to break down organic material in the UK ambition to 10GW of low carbon the presence of little to no oxygen. It can production capacity by 2030, subject to also be produced via the AD of organic affordability and value for money. material, can be reformed using steam methane or autothermal reformers. Other The hydrogen economy is still a nascent methods of producing hydrogen from sector, and majority of hydrogen production biomass are in development, but not yet this decade is expected to come from proven in an operational environment at water electrolysis powered by low carbon commercial scale. electricity (‘green hydrogen’) and CCUS- enabled methane reformation (‘blue Delivering on our hydrogen production hydrogen’). The UK is however committed ambition could mobilise over £11 billion of to supporting multiple production private investment and support over 12,000 routes, including those that use biomass jobs by 2030,198 ensuring that we have feedstocks, provided they meet the Low reliable, secure energy while maintaining Carbon Hydrogen Standard and relevant progress towards our legally binding targets funding criteria. This will help bring forward under the Climate Change Act. The CCC the broad range of projects needed to have estimated that by 2050, low carbon ensure a rapid and cost-effective build out hydrogen could be comparable in scale of the hydrogen economy. to existing electricity use in the UK, As set out in the Net Zero Strategy, up to 20% Biomass can be used directly as a of hydrogen supply in 2050 could come feedstock to produce low carbon from hydrogen BECCS, providing not only hydrogen, through reformation, gasification, a valuable route to decarbonising multiple or pyrolysis technologies, and if carbon end-use sectors, but also delivering capture and storage is added this can negative emissions in support of our provide negative emissions. carbon budgets and net zero. 198 https://www.gov.uk/government/publications/hydrogen-net-zero-investment-roadmap 178 | Biomass Strategy The role of biomass for net Business Model support was limited to electrolytic hydrogen production, but this zero in supporting low carbon does not preclude the inclusion of other hydrogen production technologies (including hydrogen BECCS) in future allocation rounds (See Chapter 6 The deployment of hydrogen BECCS over for more on hydrogen BECCS). the coming decades will be contingent on the availability of appropriate biomass All hydrogen production routes seeking feedstocks, the availability of CCUS funding through these routes must first infrastructure, including storage capacity, meet the UK Low Carbon Hydrogen and technological innovation. Standard.202 This standard ensures that the hydrogen production supported Evidence from the CCC’s Sixth Carbon is sufficiently low carbon across its Budget199 advice suggests that the extent supply chain and conversion process of deployment of hydrogen BECCS is more and sets sustainability criteria for dependent on the demand for negative biomass feedstocks in line with wider emissions, more so than the need for government policy. additional hydrogen production. However, we recognise that hydrogen BECCS In addition to meeting a GHG emissions projects may help to meet localised intensity of no more than 20 gCO2e/MJLHV demand for hydrogen, or potentially make of produced hydrogen, bio-hydrogen use of otherwise underutilised feedstocks. producers wishing to prove compliance with the standard must meet additional requirements for the use of biogenic Policies, proposals, inputs, where relevant and as appropriate and regulation for the feedstock source and classification, This includes demonstrating compliance Support for commercial-scale low carbon with the land, soil carbon and forest hydrogen production is available through criteria, satisfying the minimum waste and the Net Zero Hydrogen Fund (NZHF)200 residue requirement, and reporting on (development and capital support), the estimated indirect land-use change (ILUC) Hydrogen Production Business Model201 GHG emissions. (revenue support) and the Renewable Transport Fuel Obligation. We are taking It is likely that the ability to use hydrogen forward actions to support development BECCS to produce both hydrogen of biomass to hydrogen and welcome and negative emissions will constitute further input from stakeholders on how the most valuable use of biomass in best to enable this. Strands 1 and 2 of the hydrogen production in the long term, Net Zero Hydrogen Fund (NZHF) have the although innovation and the availability potential to support near-term hydrogen of CCUS infrastructure will be important from biomass projects. The first allocation to enabling this. However, we are aware round for access to Hydrogen Production of nearer-term production projects 199 https://www.theccc.org.uk/publication/sixth-carbon-budget/ 200 https://www.gov.uk/government/publications/net-zero-hydrogen-fund-strand-1-and-strand-2 201 https://www.gov.uk/government/publications/hydrogen-production-business-model 202 https://www.gov.uk/government/publications/uk-low-carbon-hydrogen-standard-emissions- reporting-and-sustainability-criteria Biomass Strategy | 179 looking to produce low carbon hydrogen Phase 2 was launched in January from biomass, particularly involving the 2023 with total budget of £25 million, reforming of biomethane from AD. While and it intends to take projects from these may have value in helping develop innovation design through to innovation local hydrogen use, direct use of this demonstration. biomethane in the gas grid is likely to deliver greater energy efficiency and Innovation funding has been provided to carbon reduction benefits. Other policies a range of different hydrogen production across government already incentivise use technologies through the Low Carbon of biomethane in the energy system, such Hydrogen Supply Competition.204 While as the GGSS and the RTFO. this and other programmes in the £1.3 billion Net Zero Innovation Portfolio In response to the recommendations from are now closed, a progress report205 was Mission Zero: Independent Review of Net published in May 2023 and the findings Zero,203 we have committed to publishing will be integral to the design of future a hydrogen production delivery roadmap government net zero innovation portfolios. by the end of 2023. This will set out details on the mix of technologies needed to meet our 2030 production ambition, as well as meet expected demand in 2035 for our sixth carbon budget. This will include detail regarding our position on hydrogen from biomass, including hydrogen BECCS. Research & Innovation To help facilitate the development of hydrogen BECCS, government launched the Hydrogen BECCS Innovation Programme in 2022. During Phase 1 £5 million of funding was awarded to develop 22 project proposals aiming to deliver commercially viable, innovative hydrogen BECCS technology solutions. Technologies being supported by the programme include gasification feedstock pre-processing, syngas treatment and upgrading, and novel biohydrogen technologies such as dark fermentation. 203 https://www.gov.uk/government/publications/review-of-net-zero 204 https://www.gov.uk/government/publications/hydrogen-supply-competition 205 https://www.gov.uk/government/publications/net-zero-innovation-portfolio-and-the-advanced- nuclear-fund-progress-report-2021-to-2022 180 | Biomass Strategy

7.8 Non-energy uses of biomass Summary While these non-energy uses of biomass present real economic and Biomass is a flexible resource with potential job opportunities, there is significant to contribute towards decarbonisation uncertainty on the potential demand these activities not just as an energy source but end uses generate for biomass, the size also as material to displace fossil fuel use. of these markets, and the GHG emissions There is an increasing focus globally on reductions some of these uses will offer the concept of the bioeconomy, which in the future. can be defined as including all sectors of the economy that use biomass to make materials and products. This includes both Timber and woody biomass energy uses, and non-energy uses, such as low carbon materials as wood-based products (e.g., timber, wood panels, etc), and bio-chemicals and Timber and woody biomass are low bio-materials (bio-plastics). carbon materials that can displace the use of carbon intensive materials. The UK Responses to the 2021 Biomass Strategy consumed 53.1 million m3 Wood Raw Call for Evidence, alongside reports by Material Equivalent (WRME) underbark206 the IEA Bioenergy, CCC, and others, of wood in 2021, with UK production have highlighted that there is a clear accounting for 31% of the UK sawnwood opportunity for biomass to be used in market, 50% of the UK wood-based non-energy sectors for the production panel market and 54% of the UK paper of high value renewable chemicals and market in 2021.207 materials and in construction applications. Here biomass can displace fossil fuel- We have committed in the Environmental heavy materials in the chemicals, Improvement Plan to maintain and materials, and manufacturing sectors, grow a sustainable and long term UK supporting sustainable production and timber supply. This includes measures the decarbonisation of these sectors. The to encourage both supply and demand use of biomass in higher value, higher for UK grown timber, including a new employment markets, such as fine and £1.5 million Forestry Innovation Fund which speciality chemicals and materials (etc.) will provide financial support to develop can enable the extraction of maximum innovative timber products, and increasing value from the finite biomass feedstocks public demand for sustainably sourced and can help maximise end-of-life energy timber through procurement policies. recovery from biomass waste arisings. An important enabling technology for this is We have identified that increasing the industrial biotechnology (IB). safe use of timber in construction can encourage greater demand for wood 206 Volumes are expressed in wood raw material equivalent (WRME) underbark. WRME volumes represent the amount of wood that would have been required to make the product. 207 https://cdn.forestresearch.gov.uk/2022/09/Ch3_Trade_2022.pdf Biomass Strategy | 181 products, displacing more carbon intensive The resulting increase in tree planting and building materials such as concrete and managed woodland cover by 2050 could steel. We have committed in the England provide a source of domestic biomass Trees Action Plan (ETAP) and Net Zero supply in the form of harvesting residues Strategy to work with industry and across generated through sustainable forest government to develop a timber in management practice. construction policy roadmap setting out how we will achieve this. Engineering Biology The ETAP is supported through the Nature for Climate Fund, enabling a new tree Engineering biology is the design, scaling planting programme. Additional funding and commercialisation of biologically of £124 million for the Nature for Climate derived products and services that can Fund was announced in the Net Zero transform sectors or produce existing Strategy. We aim to at least treble tree products more sustainably. It draws on planting rates in England by the end the tools of synthetic biology to create of this Parliament, reflecting England’s the next wave of innovation in the contribution to meeting the UK’s overall bioeconomy. Engineering biology has a target of planting 30,000 hectares per wide range of applications, from growing year by the end of this Parliament. We climate resistant crops and creating have also legislated a statutory tree and new sources of proteins, to sustainably woodland target to increase tree canopy producing chemicals and materials like and woodland cover in England to dyes, to more effective medicines like the 16.5% by 2050. COVID-19 vaccine. In the government’s Science and Technology Framework There are similar strategies and policies in engineering biology was identified as a place across the devolved administrations. critical technology.210 The Scottish Government has committed to an ambitious target of increasing Engineering biology’s applications will woodland cover from around 19% of the create a greater demand for sustainable total area of Scotland, to 21% by 2032 feedstocks. Carbon in the form of by increasing annual woodland creation sustainable sugars is the primary raw from the current level of 8,000 hectares material for producing products from per year in 2022/23 up to 18,000 hectares biology, and this is largely derived from per year by 2024/25 of which 4,000 biomass.211 For example, Colorifix is a hectares would be native woodland.208 UK firm that uses engineering biology The Welsh Government has committed to dye fabrics, powering their microbes to tree planting targets of 43,000 with feedstocks such as sugar, yeast, hectares by 2030 and a total of 180,000 and plant byproducts. The UK’s strategy hectares by 2050.209 for engineering biology and the business 208 https://www.gov.scot/publications/scotlands-forestry-strategy-20192029/pages/2 209 https://gov.wales/written-statement-trees-and-timber 210 https://www.gov.uk/government/publications/uk-science-and-technology-framework/the-uk-science- and-technology-framework 211 National Research Council. 2015. Industrialization of Biology: A Roadmap to Accelerate the Advanced Manufacturing of Chemicals. Washington, DC: The National Academies Press. 182 | Biomass Strategy models of UK engineering biology firms will carbon-based. Instead, the use of fossil need to account for biomass feedstock fuels can be reduced through a shift to distribution and seasonal availability.212 biogenic carbon. Therefore, sustainable biomass will be increasingly important for Engineering biology is also increasing the manufacturing of materials and chemicals range of what biomass can be used for using engineering biology, drawing on because it could enable efficient resource infrastructure such as biorefineries. It is recovery from waste.213 For example, C3 theoretically possible to use biomass as a Biotechnology is an innovative UK firm feedstock for many different chemicals. working on creating a range of products not derived from fossil fuels using waste The UK chemical industry directly employs biomass, including synthetic kerosene around 104,000 highly skilled workers.215 It and acrylics. The ability to repurpose this is also the UK’s largest manufacturing export waste can be an important resource for the sector and the second largest domestic UK’s bioeconomy.214 manufacturing industry, with £28 billion value added to the UK economy in 2020. Engineering biology is a critical technology It is also the national leader in research and with potential to be essential for the UK’s development spending at £8bn per annum, health, wealth, and security. It is also a providing significant economic scope field where the UK can become a leading for investment into the bioeconomy.216 nation. Government is establishing a However, the emissions are difficult to strategic approach to engineering biology evaluate, with voluntary reporting on Scope and its applications across the economy 3 emissions which make up an estimated to maximise its opportunities. This will 77% of the chemical industry’s emissions.217 involve building on the biomass availability Further work is needed to understand the mapped in this Strategy and its principles applications and conditions necessary for of best use and prioritisation. the bio-based chemicals and materials sectors to form part of the long term priority use of biomass. As a first step, government Biomass in chemicals and commissioned a project to understand the materials production economic and climate benefits to the UK of an increased use of bio-based chemicals The carbon-based chemical and materials (see below). This will help shape the UK’s sectors cannot be fully decarbonised, future ambition in this area and how this since most chemical products that can sector can best contribute to growing be displaced by biogenic alternatives are innovation and the economy, while also 212 Cambridge Industrial Innovation Policy (2022). Life Sciences beyond human health: modern industrial biotechnology in the UK. IfM Engage. Institute for Manufacturing, University of Cambridge. 213 Dietz, T.; Börner, J.; Förster, J.J.; Von Braun, J. Governance of the Bioeconomy: A Global Comparative Study of National Bioeconomy Strategies. Sustainability 2018, 10, 3190. 214 House of Lords (2014). Waste or resource? Stimulating a bioeconomy. Science and Technology Select Committee. 215 https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/ datasets/employeejobsbyindustryjobs03 216 https://cefic.org/a-pillar-of-the-european-economy/landscape-of-the-european-chemical-industry/ united-kindgom/#h-chemical-industry-snapshot 217 CDP Europe (2020). Running Hot: Accelerating Europe’s Path to Paris. Biomass Strategy | 183 helping to meet UK’s net zero ambitions. UK to develop a competitive advantage in export markets? The project aims to gain a deeper insight into the role of these sectors in the context Results and conclusions are expected of net zero. The project will answer three to be published in 2024. These results main questions which will fill evidence gaps will improve government’s understanding and support future policymaking: of how biomass can help decarbonise the chemicals and materials industries, 1. Which bio-based chemicals offer providing a more holistic view of the overall the largest potential for GHG demand for biomass and serving as a emission savings relative to the platform for future policy decisions. fossil incumbents? 2. How can the UK’s sustainable biomass resource be effectively and efficiently processed to bio-based chemicals? 3. What economic benefits could result from the increased production of bio-based chemicals, including the value-add compared to bioenergy applications and the opportunity for the 184 | Biomass Strategy Case study on an innovation: SeaGrown Wild harvested seaweed accounts The project is creating a system that for the majority of seaweed utilised can provide a source of sustainable bulk in the UK. However, any increasing biomass from the ocean, positioning demand will likely be met by the UK to lead the way in European seaweed aquaculture production. seaweed farming and develop a While the seaweed farming industry national Blue Carbon capability. is still very much in its infancy a SeaGrown see huge potential in shift in production has already Seaweed biomass as a low carbon been observed with the number alternative, for use in a wide range of of applications for seaweed farms industries, including packaging, foods, steadily increasing throughout the animal feed and biofuels. early 2020s. SeaGrown are using their expertise To enable sustainable growth in in the offshore environment – both the seaweed aquaculture sector, technical and scientific to innovate government, the Marine Management equipment and processes used in Organisation, Natural England and seaweed farming that are currently the Centre for Environment, Fisheries expensive, time consuming, labour- and Aquaculture Science (Cefas) intensive and failure-prone, especially have compiled guidance aimed at in offshore waters. A year into the applicants and regulators, that will project, their new in-water system is provide clarity around the application already showing great improvements process for seaweed aquaculture in in cost and labour efficiencies over the marine area within England. previous methods, and the team will now continue trialling equipment Scarborough-based SeaGrown and optimising the system for operate a 25-hectare offshore commercialisation. seaweed farm in the North Sea off the Yorkshire Coast. Their project, ‘Transforming UK offshore marine algae biomass production’, is developing and demonstrating an innovative, automated end-to-end seaweed farming system, which will enable year-round production in open-water sites. © SeaGrown Biomass Strategy | 185 Annexes Annex A: Compliance requirements of government biomass subsidy schemes The compliance requirements vary slightly provides an independent third-party across schemes, as summarised below: view, commissioned by generators, to verify that generators have provided • Renewables Obligation (RO): For sufficient evidence of compliance with projects supported through the RO, the criteria. Failure to comply with an Ofgem requires monthly reporting for exercised sustainability criteria audit all generators at capacity greater than may lead to the suspension of payment 1MW. Alongside this, the generator to generators of any Net Payable is required to report annual profiling Amounts. LCCC has appointed Ofgem data which contains information on as a contractor to support and advise characteristics of the fuel, such as type LCCC on sustainability aspects related of biomass, country of origin, derived to the CfD scheme. from wood or wood, and form of biomass. An annual sustainability audit • Renewable Heat Incentive (RHI): report is required from an independent The scheme is administered by Ofgem. party commissioned by generators, Once accredited onto the RHI there are to verify the sustainability information on-going obligations to comply with, submitted by the generator. these include measures to meet air quality requirements such as operating • Contracts for Difference scheme and maintaining the installation in line (CfD): Similarly, generators supported with the manufacturer’s instructions and through the CfD with a minimum meeting fuel sustainability requirements Commissioned Installed Capacity of by providing evidence of only using fuels 1MW or above are required to submit on the Biomass Suppliers List (BSL) or an monthly and annual reports to LCCC equivalent. Participants must complete demonstrating compliance with the and submit an annual declaration Sustainability Criteria under the CfD confirming they meet their obligations. Scheme. Reports by generators Additionally, Ofgem have a robust must include information on the annual audit programme to mitigate sustainability characteristics of all non-compliance, this includes randomly consignments of fuel, such as the selected and targeted audits. The audit biomass feedstock type, country of checks the installation is eligible to receive origin, the form of biomass and fuel RHI payments and that the scheme rules classification. Data from monthly and are being properly followed. annual submissions are cross-checked by LCCC. LCCC employ additional • Green Gas Support Scheme auditing mechanisms to verify data (GGSS): Under the GGSS scheme collected by generators through the participants must demonstrate to sustainability criteria audit report, which Ofgem that they meet the scheme’s 186 | Biomass Strategy sustainability requirements through exact requirements for evidencing quarterly declarations and independent compliance with the emissions annual sustainability audit reports threshold, audit frequency and commissioned by the generator. coverage, and consequences of non- These reports must demonstrate compliance. This includes the Net compliance with the scheme’s Zero Hydrogen Fund (NZHF) and Greenhouse Gas (GHG) limits, including Hydrogen Production Business Model. information about the total life cycle For demonstrating compliance with emissions associated with the injected the additional sustainability criteria biomethane, as well as evidence that which apply to biomass feedstocks, their biomass has been sustainably the use of a voluntary scheme listed in sourced in line with the Land Criteria the LCHS is strongly recommended. including requirements ensuring Otherwise, an independent third-party it does not come from protected audit may be used. land. Failure to comply with these • UK Emissions Trading Scheme (UK sustainability requirements may result in ETS): Under the UK ETS, sustainability compliance action, including reducing criteria are agreed by the UK ETS or withholding support payments, Authority and must be met for specific which would be determined on a exemptions under the scheme and a case-by-case basis. zero-emissions factor rating associated • Renewable Transport Fuel Obligation with emissions. If an operator is using (RTFO): Under the RTFO, all bioliquids to generate energy; the land applications for renewable transport use criteria exemption for waste; the fuel certificates (RTFCs) must be specific qualifying category for tallow; independently verified and the vast or a recognised certified voluntary majority of fuel supplied is certified by scheme for the RTFO, they must voluntary schemes (98% in 2021).218 provide evidence and demonstrate To provide an additional check on to their independent verifier that they compliance, the RTFO Administrator meet the specified sustainability criteria also performs a series of random and associated with that exemption. If it is risk-based checks on applications determined an operator has reported including in-depth investigations where emissions as being sustainable and necessary. Collectively, this provides it is later determined that this was assurance over the sustainability and incorrect, the regulator will re-determine traceability of fuels supplied under their emissions to ensure they are the RTFO. Non-compliance is rare, reported correctly. This may result but where identified can result in the in enforcement action after the fact. revocation of certificates and/or the Government recently consulted on issuing of civil penalties. Any suspected the UK ETS biomass sustainability fraud identified is reported to the police. criteria. Further information about the • Low Carbon Hydrogen Standard development of criteria is available in the (LCHS): The individual schemes government response.219 which apply the LCHS set the 218 https://www.gov.uk/government/statistics/renewable-fuel-statistics-2021-final-report 219 https://www.gov.uk/government/consultations/developing-the-uk-emissions-trading-scheme-uk-ets Biomass Strategy | 187 Annex B: Domestic policies which interact with domestic biomass sourcing and use Biomass policies interact with domestic 2 Waste regulation: Waste is a policy landscape through the following devolved area and some provisions domestic regulations: for waste regulation vary across the devolved administrations, such 1 Forestry policies (felling licences, as the definition of food waste. All forestry regulations and timber parts of the UK have policies in regulations): Forestry in England place to reduce waste. In England is regulated by the Forestry Act the resources and waste sector is 1967. Other relevant legislation regulated by the Environment Agency on afforestation and deforestation and in Wales by Natural Resources includes the Environmental Impact Wales under The Environmental Assessment (Forestry) Regulations Permitting (England and Wales) 1999, the Forestry (Felling of Trees) Regulations 2016. In Scotland the Regulations 1979, the Forestry sector is regulated by the Scottish (Exceptions from Restriction of Felling) Environment Protection Agency Regulations 1979 and the Forestry (SEPA). In Northern Ireland to operate (Modification of Felling Restrictions) an Anaerobic Digester (AD) for food Regulations 1985. The UK Forestry waste an authorisation (licence or Standard is the reference standard permit) is required from Northern for sustainable forest management. Ireland Environment Agency (NIEA). If The UK Woodland Assurance the food waste includes animal by- Standard (UKWAS) is an independent products there must also be approval certification standard for verifying for the AD from a Divisional Veterinary sustainable woodland management in Office in Northern Ireland. There are the UK that is used for certification by exceptions for an on-farm facility that the Forest Stewardship. The Timber only handles waste from the farm. and Timber Products (Placing on the The spreading of digestate from an Market) Regulations 2013 regulate the AD that takes in waste and is not placing on the market of imports of PAS110 is also regulated by NIEA in some forms of biomass, for example the form of a Paragraph 9 Exemption. wood pellets. This is based on their legality of harvest in the country of harvest. The Forest Law Enforcement Governance and Trade (FLEGT) Regulations 2012 aim to prevent illegal logging through Voluntary Partnership Agreements (VPAs) with producer countries who opt to provide national level assurance of legal harvest. 188 | Biomass Strategy 3 Air Quality: The UK has statutory to decarbonise. The UK ETS ceilings in place for emissions of five currently applies to energy of the most damaging air pollutants intensive industries, the power (including ammonia and PM2.5 ), generation sector and aviation. as well as local concentrations limits of key pollutants. In addition, b. Biomass operations are also England has two ambitious national regulated through the planning concentration targets for PM2.5. To system. Planning applications are ensure that these targets can be determined in accordance with met, regulatory requirements that the development plan, (including apply to the use of biomass (primarily the adopted local plan and any through environmental permitting made neighbourhood plans) and Best Available Techniques) will unless material considerations need to develop over time as the indicate otherwise. The National use of biomass expands, and as Planning Policy Framework220 sets our knowledge and understanding out the government’s planning grows. Further detail on Air Quality policies for England and how regulations is found in Chapter 3. these should be applied, and the National Policy Statements 4 Other regulation: for energy,221 currently being a. The UK Emissions Trading updated, detail government’s Scheme (UK ETS), a ‘cap and policy for the delivery of Nationally trade’ scheme, is a market-based Significant Infrastructure Projects pricing mechanism to incentivise (NSIPs) for energy and provide and control the reduction of the legal framework for planning emissions in a cost-effective decisions. The National Planning way. A cap is set on the total Policy for Waste will also be amount of certain greenhouse relevant particularly if the biomass gases that can be emitted by the operations are utilising waste as a sectors covered by the scheme feedstock. over a given period. The cap is divided into allowances, and participants receive or purchase allowances which they can sell and buy with one another as needed. The UK ETS will reduce over time, providing a long term market signal so companies can plan and invest in abatement accordingly. The UK ETS acts as a cross-cutting policy lever to drive market-based abatement, incentivising industries to find the most cost-effective solutions 220 https://www.gov.uk/government/publications/national-planning-policy-framework--2 221 https://www.gov.uk/government/publications/national-policy-statements-for-energy-infrastructure Biomass Strategy | 189 Technical Annex The analysis that underpins the Biomass • overhaul the representation of domestic Strategy is taken from three main sources: feedstock supply, in particular making it more spatially granular at an ITL1 • modelling of biomass availability level of detail. • Carbon Budget 6 analysis (CB6) • future-proof it so that it is • UK TIMES modelling of the able to incorporate new UK energy system evidence that emerges. The sources and models used have been The spreadsheet-based model provides subject to rigorous quality assurance. estimates of the quantity of both domestically produced and imported biomass feedstocks that the UK could Biomass feedstock access out to 2050, if the technical potential availability of a range of availability scenarios feedstocks were realised. The UK and Global Bioenergy Resource Imports of bioethanol and biodiesel are Model was originally developed in 2011 considered as availability of finished fuels and used to support the 2012 Bioenergy as the UK is unlikely to access the raw Strategy. The model was updated feedstocks. For the first-generation (1G) substantially in 2015/2016 with a new biofuels, production of a representative module on sustainability, and an expansion feedstock is modelled for each region, in the range of feedstocks modelled such as maize, sugar cane or wheat for 1G to reflect developments in the market. bioethanol; or soybeans, rapeseed or oil Finally, estimates of land available for the palm fruit for 1G biodiesel. cultivation of biofuels and energy crops globally were updated to be consistent The model does not directly address with the Shared Socioeconomic Pathways timber or other high-value biological developed for use in international climate materials such as food. Use of potential modelling. This version of the model, feedstocks for higher value purposes and its supporting spreadsheets, were are subtracted from the theoretical published in 2017.222 In support of the supply available for energy. However, any Strategy, the model was updated again in substantial increase in the use of biomass 2022-2023 with an aim to: for higher value uses such as materials, food or the chemical sector to substitute • review and determine whether for fossil fuel derived carbon may make methodological developments these projections higher than the outturn, are necessary to improve the as these sectors are likely to have a higher representation of key sensitivities. willingness to pay than the energy sector. • include the most up to date evidence base and improved methodologies. 222 https://www.gov.uk/government/publications/uk-and-global-bioenergy-resource-model 190 | Biomass Strategy The final published 2023 version of The global forestry model includes the model will include a further major several mechanisms to allow the user restructure to provide a break-down of the to represent the implementation of domestic feedstock supply by regions of sustainability criteria, including the the UK, and a more flexible treatment of ability to specify the proportions of each the share of imports and of sustainability of the forest types represented in the criteria. These changes were implemented model, and allowing the user to select internally by DESNZ analysts to an interim a threshold yield class below which model for the purposes of the Biomass harvesting is assumed to be avoided or Strategy and so minor differences may partially restricted. In line with the UK’s exist between the final model outputs and current sustainability criteria the model those used here. has been set to exclude harvest from primary forests and to not take material Key sources of estimates from countries in which the forest used in modelling: harvest rates are greater than gross forest growth. • Global non-forestry feedstock production is estimated based on • The domestic feedstock availability land area information from the IMAGE assumptions were circulated to a range Integrated Assessment Model, of government stakeholders taking shared by PBL of the Netherlands into account current policy objectives. incorporating scenarios that span a Feedstock numbers are constrained by range of future climate outcomes using views on the likely outcomes of policy assumptions derived from the IPCC’s in England rather than representing Shared Socioeconomic Pathways. technical potential. The SRC/SRF areas, while significantly greater than • The production of biomass crops currently planted areas, are much lower requires land availability estimated than other estimates and represent by IMAGE where land availability Defra views on the constraints on land is a function of pressures such as from food security and biodiversity and population growth, dietary change, other land use pressures arising from food productivity, food waste and Environment Act requirements. system efficiency. The model takes a precautionary approach in only • All feedstocks are required to meet allowing the planting of energy crops current UK sustainability requirements. on abandoned arable land to avoid biomass displacing food crops. There remain major uncertainties about the UK’s share of internationally produced • The global forestry model (from Forest biomass and of the uptake of bioenergy Research) contains data on areas of crops domestically, particularly in the coniferous and non-coniferous primary, Devolved Administrations which are poorly regenerated and plantation forest on represented in the model due to policy a country-by-country basis. These frameworks being under development. areas are combined with estimates The model was used to support the of the mean yield class of each type Biomass Strategy by generating of forest in each country, to estimate scenarios which illustrate ranges of the annual potential harvest of forestry feedstock availability. biomass wood in that country. Biomass Strategy | 191 The Biomass Strategy presents two the UK competes equally with all other availability scenarios to explore how much nations and so can secure a fraction sustainable biomass the UK could access. of this market equal to the UK’s share of global GDP. The ambitious supply scenario: – This factor of one-fifth (20%) is • Includes higher levels of domestic based on values found through energy crop planting, reaching 17 kha/ interrogating other modelling, yr from 2038 onwards. specifically the 2017 version of the • Assumes the UK can import a fraction ‘UK and Global Bioenergy Resource equal to its share of global GDP of all Model’, the TIAM-UCL global overseas-produced bioenergy that energy model223 and the Global meets our sustainability criteria. Energy and Climate Outlook 2022 of the EU’s JRC.224, 225 • Includes the underlying assumption that the future may see a well- • Could be characterised as each country established global market for biomass prioritising their own decarbonisation supported by the required increase goals ahead of considering potential in infrastructure, with producers of market opportunities. biomass willing to export it rather than retain it for domestic use. This • In these scenarios, GDP is used as would likely be supported by strong a proxy to reflect the UK’s potential price signals from importing countries, purchasing power and therefore ability possibly with demand ensured by firm to import and compete for biomass decarbonisation policies. from other regions. The UK’s GDP as a proportion of global GDP is taken The restricted supply scenario: from Shared Socio-economic Pathways modelling using IMAGE,226 assuming • Includes levels of domestic energy the ‘SSP1: Sustainability – Taking the crop planting that reach 9 kha/yr Green Road’ scenario: from 2038 onwards. • Assumes that most countries producing biomass prioritise their own domestic use, and so only one-fifth of overseas production is exported; of this volume available for trade, it is assumed that 223 https://www.ucl.ac.uk/energy-models/models/tiam-ucl 224 Keramidas et al., ‘Global Energy and Climate Outlook 2022: Energy trade in a decarbonised world’, Publications Office of the European Union (https://publications.jrc.ec.europa.eu/repository/handle/ JRC131864). 225 It is not a strict average of the export proportion seen across different time periods in these models but instead an indicative, ‘order of magnitude’ assumption to illustrate a potential range. The 2017 bioenergy resource model, described above, was a biophysical model that assumed each region met its own demand and only exported surplus production. The TIAM-UCL and JRC models are, in general, least- cost optimising models of the global energy system while meeting decarbonisation or climate targets, and so while profits from trade are considered, this would be secondary to ensuring, for example, that global warming stays below 1.5°C. 226 https://www.pbl.nl/en/publications/the-2021-ssp-scenarios-of-the-image-32-model 192 | Biomass Strategy Year UK fraction of bulky and relatively low value and so global GDP transport costs may be prohibitive to the development of a global market at scale.227 2020 2.62% 2025 2.56% In reality, the future level of imports is likely to fall somewhere in between the two 2030 2.29% scenarios, as many, but not all, countries 2035 2.09% may keep their biomass production 2040 1.95% primarily for domestic use, while not all countries will be competing equally for 2045 1.85% imports – for example, those that have 2050 1.77% high domestic production and exports of biomass are unlikely to also be importing significant quantities. Decarbonisation The UK’s fraction falls over time as, goals and delivery plans around the world generally, the GDP of developing are still at a nascent stage and so it is countries grows faster than that of difficult to predict individual countries’ developed countries. approaches. Nevertheless, the profiles • In both scenarios, we assume that used give an indicative range, though the the UK retains its biomass and biofuel eventual outturn levels may still fall outside production for domestic use, with no of these profiles. exports. We make this assumption because we anticipate domestic demand to be underpinned by robust Carbon Budget 6 demand decarbonisation policies (e.g., the SAF analysis mandate) and so domestic use will be an attractive market for UK producers, The methods used to model energy particularly as it will keep their transport demand projections up to the end of CB6 costs low. In the ambitious scenario, in 2037 are the same as those used to this equates to the UK consuming model emissions projections at a policy around 3% of global (overseas plus and sector level, as published in the UK) sustainably produced biomass, Carbon Budgets Delivery Plan (CBDP, so not excessively beyond our fraction March 2023).228 For each policy within the of global GDP. CBDP, sector teams model the energy demand impacts of the policy for each The economic interactions between import year – for example the policy ‘Biomethane levels, demand, price, market share and – future support’ projects a net increase overseas production are not modelled in demand of biomethane and a net here, as this is only a biophysical model reduction in demand for fossil natural gas, looking at sustainable technical potential. as biomethane is injected into the grid. Many of the feedstocks in question are For biomass-related energy demands, 227 Economic trade modelling is complex and many factors could affect future trade potential such as distance between countries and regional policies affecting demands and availabilities over time. Furthermore, individual commodities will have characteristics that make them more or less suited to trading, e.g., wet feedstocks will be less stable and more expensive to transport. 228 https://www.gov.uk/government/publications/carbon-budget-delivery-plan Biomass Strategy | 193 four categories of biomass are included challenges. In addition, for the purposes in sectoral energy demand modelling: of Figure 5.3, each feedstock has only liquid biofuels, lignocellulosic biomass, been assigned as contributing to a single biomethane/biogas, and biogenic waste. fuel type, whereas in reality it is likely some feedstocks may contribute to more than Energy demand impacts for all policies one fuel category. It is possible that the within each sector are cumulated and preferred use of biomass feedstocks may added to a baseline based on the 2021- change between now and the end of CB6, 2040 Energy Emission Projections (EEP as demand, feedstock availability, and 2021-2040) publication.229 The EEP technological readiness vary and change. 2021-2040 reference scenario sets out As such, the precise energy demand the government’s central projections of pathway should be considered illustrative how the energy and emissions system and subject to change. will evolve under EEP-ready policies. This projection assumes no further government policy action beyond policies that are in Illustrative 2050 scenarios – very late stages of development or have already been implemented. UK TIMES analysis The Biomass Strategy presents three Together, the EEP 2021-2040 baseline illustrative scenarios to help explore the and sectoral modelling of energy demand potential role of biomass in 2050. All three impacts provide us an energy demands scenarios are set in the context of an pathway to 2037. Full methodology of energy system that meets net zero but sector modelling can be found within the using different approaches. These are Powering Up Britain Technical Annex.230 based on the Net Zero Strategy scenarios, In order to analyse biomass feedstock which themselves built on the pathways availability to meet demand projections, developed for the Sixth Carbon Budget feedstocks were manually assigned to Impact Assessment. These have been one of the four biomass fuel types tracked deliberately selected to illustrate a wide in sectoral energy demands modelling. range of outcomes for the economy that This assignment was based on expert are possible by 2050. However, different assessment and by reference to the outcomes within or beyond this range are feedstock processing pathways in the also possible. UK TIMES model (see following section), This section explains the methodology in order to maintain consistency with that was used for this analysis and modelling for the 2050 scenarios. summarises the differences between the We expect that, between now and three scenarios. For the approach used to 2050, the package of proposals build these scenarios, please see the Net and policies will evolve to adapt to Zero Strategy.231 changing circumstances, new evidence, technological developments and emerging 229 https://www.gov.uk/government/publications/energy-and-emissions-projections-2021-to-2040 230 https://www.gov.uk/government/publications/powering-up-britain 231 https://www.gov.uk/government/publications/net-zero-strategy 194 | Biomass Strategy The modelling uses the UK TIMES Model; future technology costs and availability. a least-cost, optimisation model covering Uncertainty is only displayed through all UK emissions (including land use) and the range of inputs used and outputs the UK energy system over the period given across the different scenarios. 2010 to 2060.232 The model includes Furthermore, assumptions are based assumptions about technology costs, on current evidence that is subject availability, performance, and build rates.233 to change and new technologies It also includes assumptions for future or assumptions could develop that fossil fuel prices and energy services change pathways to net zero. demand by end-use sector. These inputs • Technology cost reductions over are pre-determined for each model run time in the model are based on and do not vary with deployment. Based fixed assumptions and do not vary on the input assumptions, the model with deployment levels. In reality, identifies the least-cost way of meeting a costs per unit would likely be higher given GHG reduction trajectory while also when deployed at small scale but meeting assumed end-use demand for could decrease as the scale of energy services. Further information on technology expands. the methodology and assumptions used in the UK TIMES model can be found in • No additional barriers beside cost and Annex A.2 of the sixth carbon budget technical build rates nor the potential impact assessment.234 industrial benefits from developing and deploying new low-carbon technologies A particular advantage of UK TIMES is are considered. Modelling does not that it identifies the least-cost technology consider any upside or downside pathway for a given set of assumptions, risks to the economy arising from taking account of interactions across the energy transition, such as job energy supply and end-use sectors over creation or retention. time. The model is therefore useful for • Delivery risk is not considered which, identifying which technologies could be when combined with the cost- essential or important in the long run for optimising nature of the algorithm, achieving a low cost, net zero consistent means that if presented with two similar energy system. It also helps identify the technologies, the model will exclusively appropriate sequencing of abatement choose the cheaper option. Sector opportunities. analysis can help protect against this However, there are several limitations to by identifying other plausible choices the modelling: that could be used to diversify the delivery portfolio and protect against • The model does not directly take technology-specific risks. account of uncertainty of any kind over 232 UCL, ‘UK TIMES’, https://www.ucl.ac.uk/energy-models/models/uk-times 233 The model takes account of the direct cost of purchasing, installing, running and maintaining the abatement technologies. The cost of purchasing and installing includes assumed capital costs and the cost of borrowing to pay for the capital. Running costs include the cost of energy supplies, both domestic and any imports. 234 UK Legislation (2021), ‘Carbon Budget Order 2021 impact assessment’: https://www.legislation.gov.uk/ ukia/2021/18/pdfs/ukia_20210018_en.pdf Biomass Strategy | 195 • Behavioural or other practical tree-planting are achievable, increasing considerations that might make certain the ‘negative emissions’ available from pathways more or less expensive to land-use sinks. achieve are not accounted for (other • High innovation: explores a world in than where they are reflected in costs which successful innovations, such or build rates). as synthetic fuels and zero emission • The model varies in detail by sector. aircraft, enable lower residual emissions In some areas only high-level to be reached sooner in aviation. representations are provided and so Higher capture rates – above baseline results may vary from detailed sector- assumptions – increase the impact of specific modelling. carbon capture technologies, particularly • UK TIMES does not currently include higher deployment of direct air capture. spatial or geographical aspects and The scenarios were constructed in UK so cannot model all the costs and TIMES by varying input assumptions for: practicalities of building, maintaining or decommissioning transmission • The extent to which technologies and distribution networks (such can be rolled out. For example, in the as for electricity, gas, hydrogen or high electrification scenario, 100% captured carbon). of buildings are set to be heated by • The model also has limited temporal electricity in 2050, whereas in the resolution, which may miss important high resource scenario heat pump details in the power sector. deployment is constrained and this figure drops to 40%. As such, our analysis within the Strategy • The availability of resources and using the UK TIMES model is largely technologies. For example, in the qualitative in nature, exploring the broad high resource scenario, we assume potential uses of biomass in different 50 kha afforestation per annum by scenarios, and drawing broad conclusions 2050 (compared to 30 kha in the that are robust to the limitations outlined. other scenarios). Higher efficiency The three illustrative 2050 scenarios capture technologies are only available presented in the Biomass Strategy are in the high innovation scenario (for summarised below: example CCUS capture rates of 99% compared to 95% in most cases in the • High electrification: explores other scenarios). the impact of using widespread • Sectors such as industry and aviation, electrification to support transport, where the model does not represent heating, and industry decarbonisation the full range of known abatement coupled with deep decarbonisation of options, supplementary adjustments electricity supply. to emissions, energy demand, and key • High resource: explores the impact deployment requirements have been of using low-carbon hydrogen made. These have been taken into more extensively, particularly for account in the optimisation of other decarbonising buildings and heavy sectors via the specification of the vehicles. It assumes higher levels of emission targets. 196 | Biomass Strategy Other assumptions were kept the same the role of biomass in meeting net across the scenarios. For instance, zero. These are not intended to be projections of final demand for end-use upper or lower estimates of future sectors are consistent with those used in expected biomass availability. the central 2037 delivery pathway and are – The ambitious supply scenario has the same for each of the modelled 2050 been used in UK TIMES modelling, scenarios. Technology and resource cost based on the assumption that the assumptions, including fossil fuel prices, UK will continue to be a leading are also the same across each scenario. importer of biomass, to illustrate As mentioned above, these scenarios how biomass could be used to could change over time with new evidence. support net zero under the various Sensitivity analysis conducted as part energy system scenarios. However, of the Sixth Carbon Budget Impact we are working with departments Assessment showed that the impact of across government to understand economic growth and fossil fuel prices on the impacts of the UK having less the technology mix in 2050 is relatively access to biomass supply, including small, therefore these effects were not what policy action may be required considered further.235 to mitigate this risk. The UK TIMES model is under continual • Sustainable aviation fuel development and since the publication technologies and mandate: A range of the Net Zero Strategy, there have of technologies have been added to the been three key updates relevant to this model such as: Biomass Strategy: – Biomass-to-Liquid and Waste-to- • Biomass availability: the availability Liquid processing based on Fischer- of biomass feedstocks and biofuels, Tropsch gasification with and both domestically including energy crop without carbon capture; planting rates and for imports, has been – Alcohol-to-Jet processing including aligned with the ambitious supply profile fermentation technologies with and of the availability model as described without carbon capture; here and in the Biomass Strategy. – HEFA production; and – There are significant uncertainties – Power-to-Liquid technologies. around future biomass availability which makes estimating future A mandate requiring the use of supply to the UK very challenging, sustainable aviation fuel is currently particularly with respect to imported under consultation and includes a biomass, as discussed above. central option that reaches 22% by 2040. This central mandate level has – In the biomass availability chapter, been added into UK TIMES, remaining we have presented two supply at the same level for future years, profiles to provide a broad frame of until further decisions are made. reference within which to analyse 235 UK Legislation (2021), ‘Carbon Budget Order 2021 impact assessment’: https://www.legislation.gov.uk/ ukia/2021/18/pdfs/ukia_20210018_en.pdf Biomass Strategy | 197 The distribution of fuel types is as yet One output of this exercise is a dataset undetermined and is to be set out describing the impact of a variety of further in the government response to different biomass feedstocks, technologies, the SAF mandate consultation.236 and end-uses on a wide range of environmental criteria. This will be useful in • Hydrogen BECCS technological future policy development and assessment assumptions: the costs and by providing additional insight into how efficiencies of the hydrogen BECCS biomass should be prioritised up to 2050. technology has been updated to align with the latest evidence published in There are many ways to convert biomass ‘Hydrogen production costs 2021’.237 feedstocks (e.g., forestry residues, cooking oils, manures and slurries) into forms These updates have been used in all three suitable for many end-uses. Further work illustrative scenarios presented in the would be required to use the data we have Biomass Strategy. collected to provide further insight into how biomass use could be best prioritised. This would complement the insights and Data collection exercise findings from the UK TIMES model. The impact of growing and using biomass on water quality, land use and air quality emissions, among others, are important factors that should be considered as government policies are developed. However, the UK TIMES model is a technology-focused model that seeks only to minimise the costs of reaching net zero and so provides limited treatment of these factors.238 Therefore, in developing the Biomass Strategy, DESNZ engaged with other government departments to identify those factors extraneous to the UK TIMES model that might influence the future balance of biomass usage, including uses for non- energy purposes. 236 DfT (2023), ‘Pathway to net zero aviation: developing the UK sustainable aviation fuel mandate’: https:// www.gov.uk/government/consultations/pathway-to-net-zero-aviation-developing-the-uk-sustainable- aviation-fuel-mandate 237 BEIS (2021), ‘Hydrogen production costs 2021’: https://www.gov.uk/government/publications/ hydrogen-production-costs-2021 238 UK TIMES does have limits imposed on land available for energy crops but is not otherwise incentivised to reduce land take. Similarly, the generation of airborne pollutants is tracked within the model, and damage costs (https://www.gov.uk/government/publications/assess-the-impact-of-air-quality/air-quality- appraisal-damage-cost-guidance) are applied which encourage the model to avoid these emissions as part of the cost-minimising algorithm, but the location of these emissions and the resulting ground level concentrations are not considered. 198 | Biomass Strategy Glossary ACT Advanced Conversion Technologies ACT-3 Accelerating Carbon Capture and Storage Technologies 3 AD Anaerobic Digestion BAT Best Available Technology BECCS Bioenergy with Carbon Capture and Storage Bio-CNG Bio-Compressed Natural Gas Bio-LNG Bio-Liquified Natural Gas Bioeconomy Economic activity involving the use of biotechnology and biomass in the production of goods, services, or energy. Bioenergy A form of renewable energy that is derived from recently living organic materials known as biomass Biofuel Fuels produced over a short time span from biomass Biomass Refers to any material of biological origin (including wastes) which is used as a fuel for bioenergy (conventional combustion, gasification, energy from waste and low-carbon fuels like biofuels and hydrogen) or in products (such as chemicals, bioplastics and timber for construction). Biomass feedstock Refers to any material of biological origin which is used to supply or fuel a machine or industrial process, including construction. BUS Boiler Upgrade Scheme BSI British Standards Institution BSL Biomass Suppliers List CB Carbon Budget CBDP Carbon Budget Delivery Plan CCC Climate Change Committee CCUS Carbon Capture Usage and Storage CCS Carbon capture and storage CCH2 Carbon Capture and Hydrogen Cefas Centre for Environment, Fisheries and Aquaculture Science CEM Clean Energy Ministerial CfD Contracts for Difference CH4 Methane CHP Combined Heat and Power CHPQA Combined Heat and Power Quality Assurance Programme Biomass Strategy | 199 CO Carbon Monoxide CO2 Carbon Dioxide CO2e Carbon Dioxide equivalent CSS Compact Syngas Solutions DAC Direct Air Capture DACCS Direct Air Carbon Capture and Storage DAERA Department of Agriculture, Environment and Rural Affairs for Northern Ireland DESNZ Department for Energy Security and Net Zero DEFRA Department for Environment, Food and Rural Affairs DFT Department for Transport DLUC Direct Land Use Change DRHI Domestic Renewable Heat Incentive ECSWG Environment and Climate Sustainability Working Group EfW Energy from Waste Energy crops Refers to crops that are grown for energy or material uses only and would not normally be used for consumption as food or feed. ETAP England Trees Action Plan ETWG Energy Transition Working Group ESO Electricity System Operator EV Electric Vehicles FIT Feed In Tariff FLEGT Forest Law Enforcement Governance and Trade FOAK First Of a Kind FRfW Farming Rules for Water FSC Forest Stewardship Council GGR Greenhouse Gas Removal GGSS Green Gas Support Scheme GHG Greenhouse gas GBEP Global Bioenergy Partnership H2 Hydrogen HGV Heavy Goods Vehicle HVO Hydrogenated Vegetable Oil IB Industrial Biotechnology ICAO International Civil Aviation Organization 200 | Biomass Strategy IDS Industrial Decarbonisation Strategy IEA International Energy Agency IETF Industrial Energy Transformation Fund ILO International Labour Organisation ILUC Indirect land use change IMAGE ‘Integrated Model to Assess the Global Environment’ developed by PBL Netherlands Environment Assessment Agency IMO International Maritime Organization ICC Industrial Carbon Capture IPCC Intergovernmental Panel on Climate Change ISCC International Sustainability and Carbon Certification ISO International Standards Organisation LA Local Authority LCA Life cycle assessment LCCC Low Carbon Contract Company LCHS Low Carbon Hydrogen Standard LPG Liquified Petroleum Gas LULUCF Land Use, Land Use Change and Forestry MCP Medium Combustion Plant MRV Monitoring, Reporting, and Verification NDRHI Non-Domestic Renewable Heat Incentive NECR National Emission Ceilings Regulations NIEA Northern Ireland Environment Agency NRMM Non-Road Mobile Machinery NZHF Net Zero Hydrogen Fund NZIP Net Zero Innovation Portfolio ODT Oven Dried Tonne Ofgem Office of Gas and Electricity Markets PAS Publicly Available Specification PEFC Programme for Endorsement of Forest Certification PJ Petajoule Power-BECCS Power Bioenergy with Carbon Capture and Storage QP Quality Protocol RDF Refuse Derived Fuels Biomass Strategy | 201 rDME renewable dimethylether RED Renewable Energy Directive REDD+ Reducing Emissions from Deforestation and Forest Degradation REMA Review of Electricity Market Arrangements RHI Renewable Heat Incentive RO Renewables Obligation RPS Regulatory Position Statement RSPO Roundtable on Sustainable Palm Oil RTFC Renewable Transport Fuel Certificates RTFO Renewable Transport Fuel Obligation SAF Sustainable aviation fuel SBP Sustainable Biomass Programme SDG Sustainable Development Goals SEG Smart Export Guarantee SEPA Scottish Environment Protection Agency SFI Sustainable Farming Incentive SME Small to Medium Enterprise SMR Steam Methane Reformation SNG-BECCS Substitute Natural Gas Bioenergy with Carbon Capture and Storage SR Spending Round SRC Short-Rotation Coppice SRF Short-Rotation Forestry SUiAR Sewage Use in Agriculture Regulations THC Tetrahydrocannabinol TPP Timber Procurement Policy TRL Technology Readiness Level T&S Transport and Storage UCO Used Cooking Oil UKETS UK Emissions Trading Scheme UK TIMES UK The Integrated MARKAL-EFOM System model UKRI UK Research and Innovation UNDRIP United Nations Declaration of Rights of Indigenous Peoples WRME Wood Raw Material Equivalent WwTW Wastewater Treatment Works