More valued benefits from renewable fuels with new method

Today, renewable fuels are commonly attributed a value mainly based on climate benefits. A newly developed method puts a price on a broader range of benefits that are important for society.

What is a safer supply of fuel worth to society? What values do circular production systems add? The project has developed and evaluated methods to provide decision-makers with more nuanced decision basis.

Four value chains for renewable fuels and energy carriers were selected to exemplify the application of the methods: HVO produced from tall oil, ethanol from forest residues, Swedish-produced electricity and biogas from household food waste.

The analysis of security of supply shows that global fuel supply disruptions are estimated to result in billions in losses for the Swedish economy. Domestic production of renewable fuels can to some extent mitigate the effects and increase security of supply.

The analysis of the circularity of production systems was complicated due to the vague, broad and complex nature of the concept of circular economy. The project recommends further studies going more into the depth of the methodology.

In the combined assessment of climate benefit, security of supply and circularity, climate benefit matters considerably. However, the value of non-climate-related benefits may be much greater than this study shows.

Socio-economic values from land use, health and job opportunities can also be weighed in a further method development, as well as energy supply for critical societal functions such as healthcare.

On 8 March 2022, the project results were presented (parts of it in English) in a webinar. A recording is available here:

Facts

Manager
Tomas Lönnqvist, IVL Swedish Environmental Research Institute

Contact
tomas.lonnqvist@ivl.se

Participants
Anton Fagerström, Mark Sanctuary and Sofia Poulikidou, IVL // Roozbeh Feiz and Axel Lindfors, Linköping University

Time plan
15 June 2020 - 29 oktober 2021

Total project cost
1 623 002 SEK

Funding
Swedish Energy Agency, the f3 partners organisations, Biofuel Region, Biogas Öst, E.on, Energigas Sverige, IVL, Lantmännen and Stockholm Public Transport (SL).

Swedish Energy Agency's project number within the collaborative research program
50396-1

The project has a focus group with members from industry and sectors that could be direct users of the results: Lantmännen, Stockholm Public Transport, Energigas Sverige, Biogas Öst, E.on, Biofuel Region and Region Gotland.