NNFCC Market Review Feedstocks issue thirteen april 2013

NNFCC Market Review, April 2013, Page 1 of 8
Feedstocks
Highlights
Page 2 Wood News
Page 3 Crops News
Page 5 Waste News
Page 7 Research News
Page 7 Events
Page 8 Feedstock Prices
NNFCC Market Review
Issue Thirteen, April 2013
ach month we review the latest
announcements and news from
across the global crops, wood and
wastes industries that supply bio-based
markets. This service is exclusively for our
members.
Foreword
Welcome to the April 2013 issue of our
market review for biomass feedstocks. This
month the Joint Research Centre of the
European Commission conducted a
thorough review of the greenhouse gas
emissions reduction potential of using wood
to displace coal and natural gas.
The study recognised the complexity of the
issue and perhaps unsurprisingly
recommended further research. But it did
draw out some interesting qualitative
conclusions. It revealed that out of the fifty
four scenarios analysed, forty five (83 per
cent) demonstrated that the use of
biomass reduced greenhouse gas emissions
relative to coal and natural gas.
It did go on to conclude that “the
assumption of biogenic carbon neutrality is
not valid under policy relevant time
horizons (in particular for dedicated harvest
of stemwood for bioenergy only) if carbon
stock changes in the forest are not
accounted for”, which lobby groups such
as the RSPB were quick to jump on.
This conclusion does raise an important
issue about how best to communicate the
benefits of biomass and incentivise the use
of biomass with higher greenhouse gas
savings, but the report also clearly
demonstrates that there is still a vital role for
bioenergy to play in Europe reaching its
renewable energy targets and reducing
greenhouse gas emissions, not only in the
long-term but also in the short to medium-
term too.
Read on for all the latest sector news.
E

Wood
Burning wood can reduce GHG
emissions, says JRC report on carbon
accounting of forest bioenergy
Qualitative evaluation of the papers
reviewed in JRC study, Source: JRC
The European Commission‟s Joint Research
Centre of the European Commission has
published its report on the carbon
accounting of forest bioenergy. The study
reviewed at a large number of peer reviewed
publications and reports in order to
understand the consequences of increased
forest bioenergy production on greenhouse
gas emissions.
The study found that most of the forest
feedstocks used for bioenergy, as of today,
are industrial residues, waste wood, residual
wood (thinnings, harvest residues, salvage
loggings, landscape care wood etc.) for
which, in the short to medium term, GHG
savings may be achieved. On the other
hand, the study found that in the case of
stemwood harvested for bioenergy purposes
only, if all the carbon pools and their
development with time are considered in
both the bioenergy and the reference fossil
scenario, there is an actual increase in CO2
emissions compared to fossil fuels in the short-
term (few decades). In the longer term
(centuries) also stemwood may reach the
fossil fuel parity points and then generate
GHG savings if the productivity of the forest is
not reduced because of bioenergy
production.
Concluding, the study said “from the studies
analysed it emerges that in order to assess the
climate change mitigation potential of forest
bioenergy pathways, the assumption of
biogenic carbon neutrality is not valid under
policy relevant time horizons (in particular for
dedicated harvest of stemwood for
bioenergy only) if carbon stock changes in
the forest are not accounted for”.
Click here for more information.
UN officials stress forestry as key to
economic development and
sustainability
The vital role of forests in global development
and people's lives as well as protecting these
resources for future generations are at the
heart of discussions at the Forum on Forests,
senior officials said on 8th April, as the United
Nations body began its current session.
"The tenth session of the Forum is a timely
opportunity to re-emphasize the critical role
of forests in global development," Under-
Secretary-General for Economic and Social
Affairs Wu Hongbo told a news conference
on the opening day of the two-week meeting
in Istanbul, Turkey.
"This is especially important given the ongoing
deliberations on defining a post-2015 United
Nations development agenda with
sustainable development at its core," he
added.
The current session of the UN Forum on Forests
(UNFF10) will examine these issues, in addition
to its main focus - forests and economic
development. National level policies for
forests have far-reaching implications for
global sustainable development. The formal
forestry sector's contribution to global gross
domestic product (GDP) is estimated to be
nearly $468 billion annually.

But the value of forests cannot be measured
in GDP only. "Forests also provide critical
ecosystem services," Mr. Wu stated, noting
that three-quarters of the freshwater used for
household, agriculture and industry is
provided by forested catchment areas.
Forests also play a vital role in the fight against
climate change, Turkey's Minister of Forestry
and Water Affairs, Veysel Eroðlu, underscored
at the briefing: "They are very important in the
fight against climate change because
carbon dioxide gases are absorbed by forests
and forests are producing oxygen. Therefore,
they are like the lungs of the world. We have
to protect our forests. We have to take care
of them," he stated.
UK biomass investment decreased 21
per cent in 2012
Project & Asset Finance in UK Biomass Projects,
Source: Clean Energy Pipeline
UK biomass project finance activity totalled
$1.8 billion in 2012, a 21 per cent decrease on
the $2.3 billion invested in 2011. Some 17 UK
biomass power projects were financed in
2012, slightly less than the 19 financed in 2011.
Despite a year-on-year decrease, the UK was
still the third largest country for biomass
investment globally in 2012, behind only
China ($4.1 billion) and the USA ($2.1 billion).
It is interesting to note that 96 per cent of
project finance allocated to biomass projects
in 2012 was invested in the second half of the
year. Only $80 million debt and equity was
invested in biomass projects in the first half of
the year due to uncertainty over government
subsidies, most notably around the biomass
co-firing Renewables Obligation Certificate
(ROC) banding review and proposals of a
supplier cap on dedicated biomass power.
Crops
Feedstocks used to make bioplastics
require only a ‘small fraction’ of global
agricultural area
Land use for bioplastics 2011 and 2016,
Source: European Bioplastics and IfBB
The surface required to grow sufficient
feedstock for today‟s bioplastic production is
less than 0.006 per cent of the global
agricultural area of 5bn hectares. This is the
key finding published by European Bioplastics,
based on figures from the United Nations
Food and Agriculture Organization (FAO) and
calculations from the Institute for Bioplastics
and Biocomposites (IfBB) in Germany.
According to European Bioplastics, increasing
the efficiency of feedstock and agricultural
technology will be key to assuring the
balance between land-use for innovative
bioplastics and land for food and feed. The
emergence of reliable and independent
sustainability assessment schemes will also
contribute to this goal.

Palm oil stocks down, markets
cautious ahead of latest USDA report
Latest data from the Malaysian Palm Oil
board shows Malaysian stocks in March were
down 11 per cent month-on-month at 2.17Mt.
Malaysia is the second largest producer of
the oil and prices have been depressed by
high inventories. However, higher exports (+10
per cent) at 1.54Mt, due to lower prices
relative to other oils, has helped the
drawdown of stocks. Weak production
growth estimated at 1.33Mt, up 2.3 per cent
month-on-month also helped.
Prices on the Malaysian Exchange were
expected to rise on this news however on 10
April they finished at MYR2,370/t (June-13),
which was down 1 per cent from the previous
days close, due to a firmer Malaysian ringgit.
The Malaysian currency reached a near-
month high against the dollar following news
of the upcoming election.
USDA reports on world supply and
demand of arable crops
Wheat
2012/13 world production was left virtually
unchanged at 655.43Mt, but carryover stocks
from the previous season were increased by
3Mt to 199.38Mt. Total global wheat demand
was cut by more than 1Mt to 672.55Mt with
estimates of feed usage down by over 5Mt.
The net impact of all of this is a rise in the end
stock forecast to 182.26Mt from the 178.23Mt
forecast last month. As a result, this new stock
forecast equates to 99 days of supply against
the 97 from last month‟s forecast.
Maize
2012/13 production was estimated almost 2Mt
higher than last month‟s forecast at 855.92Mt,
with a 1.5Mt increase in the Brazilian crop
estimate to 74Mt. On the demand side, this
was also bearish with a 5.24Mt cut in the
forecast to 862.51Mt. This has resulted in a
noticeable rise in ending stock estimates to
125.29Mt from 117.48Mt last month; equating
to 53 days of supply against the 49 from last
month‟s forecast.
Soyabeans
World soyabean production was increased
by 1.6Mt to 269.6Mt, mainly due to increases
in Paraguay and Uruguay; Argentina and
Brazil were left unchanged. Total
consumption was reduced by 1.1Mt mainly
due to lower crushings in Argentina and Brazil.
A reduction in imports by China (-2Mt)
lowered levels of trade with exports from Brazil
(-1.7Mt) and Argentina (-0.5Mt) reduced to
compensate in the main. Higher production
and lower consumption amount to larger
global ending stocks which increase by 2.4Mt.
Cold weather concerns offer some
support to European wheat prices
Concerns over the potential impact of a slow
arriving spring across northern Europe
continue to offer support to UK and French
wheat futures prices. The current cold
conditions are stimulating early concerns
about possible delays to spring planting.
The latest EU Crop Monitoring (MARS) report
highlights that as at mid-March winter crops
across Europe generally showed good
potential. Winter kill levels were reported to
be low following light frosts to date and
generally good snow cover. The report also
suggests that although the situation needs
monitoring, the impact of the current cold
weather may be limited. This is because
crops remain fully hardened in northern
Germany and Eastern Europe where some of
the coldest temperatures were expected.

UK wheat yields fall to lowest level in
more than a decade
Data from the HGCA has shown that in 2012
both UK wheat plantings and UK wheat yields
were lower than in previous years. In terms of
plantings, data from various surveys suggests
a UK wheat area by 1 Dec 2012 of 1.484M ha,
which is down 25 per cent on 1 Dec 2011.
Beyond 1 Dec 2012, it is expected that some
wheat planting occurred, but not in ideal
conditions. At this stage, UK wheat yields for
2013 look uncertain – even more so than
usual given the current crop conditions.
In this analysis, the 2012 yield is used as the
worst case scenario (6.70t/ha). 2001 is a year
of interest because similarly to the current
crop, wet autumn weather disrupted planting
and impacted crop condition. For the 2009
harvest a wet autumn again disrupted
plantings, but not to the extent seen for either
the 2001 or 2013 crops. In addition, the 2009
growing season saw generally favourable
spring and summer weather conditions to
support what was a vulnerable crop through
to harvest.
Despite concerns for the size of the UK wheat
crop in 2013, it must be remembered that
grain markets operate in a global
environment. As a result, it must be
appreciated that large scale price moves will
be dictated by production prospects in wider
Europe, the Black Sea region and North
America.
Waste
Report: Global waste industry could
double to $2 trillion by 2020
The combination of urbanisation, looming
resource shortages and environmental
regulation means the global waste industry is
poised for a period of breakneck expansion,
according to a major new report from Bank
of America Merrill Lynch.
The report, entitled “No time to waste - global
waste primer”, calculates that the global
waste, incorporating municipal and industrial
waste management, recycling, waste-to-
energy, and sustainable packaging, is
currently worth $1trillion a year.
But it predicts that there is the potential for
the market to double in size to about $2 trillion
in just seven years' time, with a wide range of
demographic, environmental, regulatory and
commercial factors driving investment right
across the sector. The report said that the
recovery of energy from waste is a market
that is currently worth $7.4 billion but this
could grow to $81 billion by 2022.
Austria tops EU recycling rate, UK &
Ireland rapidly improving
A new report by the European Environment
Agency (EEA) has shown that in 2010 35 per
cent of municipal waste in Europe was
recycled, which was a “significant
improvement” on the 23 per cent recycled in
2001. Austria topped the table with a
municipal waste recycling rate of 63 per cent,
while the UK and Ireland are among the most
rapidly improving.
However, a number of other countries are in
grave danger of failing to meet EU targets to
recycle 50 per cent of household and similar
waste by 2020, warned the EEA. The agency
said that Europe is still wasting vast quantities

of valuable resources by sending them to
landfill and even though five countries have
already achieved the target, most others will
need to make “extraordinary efforts” to do so
before the deadline.
The EEA gave the example of Bulgaria and
Romania, which it said must increase
recycling rates by more than 4 per cent per
year during this decade to meet its targets –
something which no country managed to do
between 2001 and 2010.
The agency's figures also showed that the UK
increased its municipal waste recycling from
12 to 39 per cent between 2001 and 2010,
while Ireland raised recycling rates from 11 to
36 per cent over the same period. Slovenia,
Poland and Hungary have also dramatically
improved recycling rates since joining the EU.
Recycling rates were highest in Austria, with
63 per cent, followed by Germany on 62 per
cent, Belgium on 58 per cent, the Netherlands
and Switzerland both on 51 per cent.
Banning more materials and food
from landfill could save UK billions
Savings per year from potential UK landfill ban,
Source: Green Alliance
Extending landfill bans to food, wood, textiles
and plastics could save the UK over £3 billion
in recovered resources and landfill costs, says
a new report.
The UK stands to save £1 billion in landfill costs,
if the Government extends the existing landfill
bans on cars and mobiles to food, wood,
textiles and plastics. But the recovered
resources would also bring £2.5 billion in value
to the economy, according to a report from
independent think tank Green Alliance.
The report shows the UK could gain £1.08
billion from recovered plastics and nearly £6.5
million and £7 million from textiles and food
respectively. Over half a billion pounds could
also be saved in landfill costs, if bans were
extended to food, and an additional £363
million could be saved from a plastics ban.
Defra refutes Daily Mail ‘recycling
con’ claims
Source: Daily Mail
The Department for Environment, Food and
Rural Affairs has refuted claims by the Daily
Mail that millions of tonnes of household
waste from the UK is being landfilled overseas,
describing the allegations as „myth‟.
A front page story published by the
newspaper on Saturday 06 April, headlined
„The great recycling con trick‟, alleged that
most of the recyclable waste that is shipped
to countries including China, India and
Indonesia is rejected by reprocessors and is
instead disposed of in landfill.
And, the newspaper claims that the large
amount being disposed of overseas is a result
of „compulsory recycling schemes‟ set up in
order to meet the requirements of the Waste

Framework Directive, rather than lack of
landfill space in the UK.
But, Defra has branded the allegations
„untrue‟. The Department said: “The vast
majority of the millions of tonnes of waste that
is legally exported for recycling is dealt with
properly and recycled into other products.
“It is absolutely illegal to export household
waste from the UK for dumping. Anyone
caught illegally exporting materials that are
not properly sorted will be prosecuted. Only
sorted materials such as metals, paper, card,
glass or plastic that can be reused again can
legally be exported.”
Research
BBSRC urges industry to participate in
steering UK bioenergy and
biotechnology research
The Biotechnology and Biological Sciences
Research Council (BBSRC) has issued a call to
UK organisations that are commercialising
biotechnology and bioenergy to become a
member of a BBSRC Industrial Biotechnology
and Bioenergy Network.
In January, BBSRC launched a call for cross-
disciplinary, community building Networks in
Industrial Biotechnology and Bioenergy (NIBB).
The Networks will foster collaborative activities
between academic researchers and
businesses at all levels; helping to identify and
develop new approaches to tackle major
research challenges and deliver benefits in
industrial biotechnology.
This will be through the application of a range
of approaches, including genomic, systems
and synthetic biology, as well as the
underpinning sciences such as biochemistry,
enzymology, metabolism and microbiology.
A substantial number of Networks have now
been proposed on _connect and BBSRC
encourages comments from industry on the
Network discussions pages to help shape their
development before the closing date of 16
April.
Being a member of a Network will allow
industry access to the activities they will run,
meet academics and help develop
collaborative proposals for a variety of
funding sources.
Membership of a Network is required to
access the joint BBSRC-TSB £25 million
Industrial Biotechnology catalyst. The
Networks will continue be open to new
members after they are awarded, but now is
a key opportunity to help shape their
direction.
BBSRC hopes to fund up to 10 Networks
across a range of scales.
Events
Key Challenge event: Growing
whatever the weather, 26 June 2013 in
Impington, UK
www.innovationfarm.co.uk/upcomingevents/
growing-whatever-the-weather-2013
This flagship workshop event is aimed at
providing our academic partners with a
platform to engage directly with small to
medium size businesses (SMEs). We want to
inspire an effective and productive two-way
dialogue that helps our academic and
industry partners to understand how they can
best work together.

Feedstock Prices
Arrows indicate rise (↑), unchanged (–) or fall (↓) from previous month.
ENDEX Wood
Pellets Futures
Wood Pellets Delivered
(5% VAT), UK
Ex-Farm Barley
Straw (D1000), UK
Ex-Farm Wheat
Straw (D1000), UK
Date €/tonne £/tonne £/tonne £/tonne
Apr 13 - 205.00-300.00 (– - –) 58.00-85.00 (↑ - ↑) 40.00-75.00 (↑ - ↑)
May 13 129.75 (↓) - - -
Jun 13 130.40 (↓) - - -
Jul 13 130.03
Q3 13 132.19 (↓) - - -
Q4 13 133.93 (↑) - - -
Q1 14 135.21
For details on European wood pellet futures prices see www.iceendex.com
For details on UK wood pellet spot prices contact enquiries@nnfcc.co.uk
For details on straw spot prices see www.fwi.co.uk
LIFFE
Wheat
MATIF
Wheat
MATIF
Rape-seed
CBOT
Wheat
CBOT
Maize
CBOT
Soybean
Date £/tonne €/tonne €/tonne $/tonne $/tonne $/tonne
May 13 200.00 (↓) 245.75 (↑) 471.00 (↑) 255.99 (↓) 255.51 (↓) 511.70 (↓)
Jul 13 202.00 (–) - - 258.28 (↓) 258.28 (↓) 502.42 (↑)
Aug 13 - - 438.50 (↑) - - 490.85 (↑)
Sep 13 - - - 261.50 (↓) 223.13 (↓) 468.99 (↑)
Nov 13 185.95 (↑) 213.50 (↓) 431.25 (↑) - - 454.66 (↓)
Dec 13 - - - 266.82 (↓) 213.78 (↓) -
Jan 14 187.25 (↑) 212.25 (–) - - - 456.86 (↓)
Feb 14 - - 430.00 (↑) - - -
Mar 14 193.20 212.50 (↑) - 271.97 217.81 (↓) 456.61
May 14 - 212.25 (↑) 428.75 (↑) - - -
For details on futures prices see www.hgca.com
Other biomass feedstock prices are available upon request, simply contact enquiries@nnfcc.co.uk
Credits and Disclaimer
NNFCC Market Review is edited by Dr Matthew Aylott for NNFCC members. Feedback is welcome.
The Review has been compiled in good faith and NNFCC does not accept responsibility for any
inaccuracies or the products or services shown.
NNFCC
The Bioeconomy Consultants
NNFCC, Biocentre, Phone: +44 (0)1904 435182
York Science Park, Fax: +44 (0)1904 435345
Innovation Way, E: enquiries@nnfcc.co.uk
Heslington, York, Web: www.nnfcc.co.uk
YO10 5DG.

NNFCC Market Review Feedstocks issue thirteen april 2013

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NNFCC Market Review Feedstocks issue thirteen april 2013