Sustainable biomass

1
Sustainable biomass
Smart Energy Mix
KIVI/NIRIAOctober 12, 2006

• Rob Remmers
• Essent
• Business Development

2
Agenda

1. Introduction
2. Essent and Renewable Energy
3. History of sustainability within Essent
4. Way forward

3
Agenda

1. Introduction
2. Essent and Renewable Energy
3. History of sustainability within Essent
4. Way forward

4
Business Development is part of the Essent
"Energy Value Chain"
ExecutiveBoard
staff, SSC
Networks
Cable-com
SWB
Essent Germany
Projects
ValueAddedServices
ServiceSales
EnergyManage-mentGroup
Generation
BusinessDevelop-ment
WasteMnt.
Energy Value Chain

• Developing strategy for the EVC and elaborating
  it into business opportunities
• Development of investment proposals
• Analysis/control activities regarding the energy
  related participations of Essent

5
Agenda

1. Introduction
2. Essent and Renewable Energy
3. History of sustainability within Essent
4. Way forward

6
Essent is at the forefront of renewable energy
Million kWh

• Sustainability always high on Essent agendapart
  of our mission and corporate core values
• Why are we active in renewable energy?
• Environmental and social responsibility,
• minimize environmental burden (e.g. CO2
  emissions)
• Security of supply and fuel mix diversification
• Added value from profitable renewable energy
  activities
• Inventor of Groene Stroom (1995) and market
  leader in renewable energy in the Benelux
• Essent is a first mover, frontrunner and large
  investor in renewable energy (mainly bio energy
  and wind)

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An increase from 15 now to 30 in 2010 of
renewable electricity production is possible

• but
• financial support should be sound- moratorium,
  agro residues, sustainable bio-oil
• biomass market should develop towards a fully
  open commodity market (transparent, sustainable)
• time to improve is necessary

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Worldwide targets and availability

• World energy use 480 EJ
• Long term scenarios 25 bio energyGreenpeace
  130 EJ Shell 350 EJ
• Potential sourcesWEA 200 EJ Utrecht
  University 1000 EJ

BUT

• Greenhouse gases balance
• Competition with food, local energy production,
  medicines, building materials
• Socially acceptable
• Biodiversity
• Prosperity
• Welfare
• Environment
• Economics

9
Agenda

1. Introduction
2. Essent and Renewable Energy
3. History of sustainability within Essent
4. Way forward

10
Essent's road to sustainability

• 1985 first wind park realised
• 1995 PNEM starts "Groene Stroom"-pilot
  (more expensive, restrictions to input)
• 2002 Bio-energy forum A vision on socially
  acceptable bio energy (recommendations)
• 2002 start of Green Gold Label (example)
• 2003 Essent and University of Utrecht start,
  supported by the Ministry of Economic
  Affaires IEA Task 40 Sustainable International
  Bio Energy Trade secure demand and
  supply (website www.bioenergytrade.org)
• 2005 Essent presents first report on Corporate
  Social Responsibility (MVO)
• 2006 Essent participates in Energy Transition
  project "Duurzame productie van
  biomassa" (commissie Cramer)

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Conclusion

• Essent is a major player regarding renewable
  energy production and can deliver an important
  contribution to the Dutch R.E. target (11 TWh in
  2010)
• Essent is seriously concerned about
  sustainability of biomass fuels
• therefore

The role of Essent is to adopt the principles
of Round Table of Sustainable Palm Oil offer
know how in public discussion cooperate in
developing sustainability criteria by government
and NGO's stop the use of biomass fuels once
sustainability is poor and cannot be improved
use and further imrove existing sustainability
tools Government should then ... remove the
moratorium on subsidies for new large scale
projects increase the subsidies for co-firing
agro residues and sustainable bio-oil
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Appendix
13
Recommendations

• Clear carbon balances needed
• Emissions have to be lowered to the level of
  natural gas power plants
• Cascade usage of biomass has priority
• Chain responsibility also for bio energy
• Sustainable pact for bio energy is needed for
  public support

return
14
GGL in practice
Source
biomass
Source
Process

x
GGLS1
Transport Storage
Energy company
Client
Source
Process
GGLS6
x
GGLS1
CoC documents
GGL claims
Source
GGL Product certificate
GGLS4
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15
Koffieschillen bieden nieuwperspectief voor
Groene Stroom
Essent deelnemer in uniek project Gambia
WNF en Essent verlengen samenwerkingscontract
met vier jaar
Het Wereld Natuur Fonds en energiebedrijf Essent
hebben vandaag, 28 september, hun
samenwerkingsovereenkomst met vier jaar verlengd.
Dit betekent dat de organisaties ook de komende
vier jaar hun gezamenlijke activiteiten op het
gebied van duurzaam ondernemen en
klimaatverandering voortzetten. Zo zullen WNF en
Essent gezamenlijk op zoek gaan naar
alternatieve, duu
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Minimum Demand

• 2007 Comply with international-legal obligations
  and local legislation, added with other
  performance indicators. Obliged reporting when
  performance indicators do not exist (yet)
• 2011 Comply with performance indicators and
  active protection. Performance indicators are
  being developed based on the reports from phase
  I.
• GHG-balance Net emissions reduction
  related to fossil reference is at
  least 30 in 2007 en 50 in 2011
• Biodiversity no violation of
  valuable ecosystems
• Competition, prosperity 2007 insights, 2011 no
  reduction allowed
• Welfare from the
  beginning strict rules for labor conditions,
  human rights, social
  circumstances and integrity
• Environment comply to
  international and EU regulation

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Theses

1. To demand 100 of sustainability today closes the
   way to develop a global sustainable biomass market

1. When there is no levelled playing field for bio
   energy in Europe, the Netherlands will not be
   able to reach the Kyoto goals

1. The recent adjustments of the MEP-support for
   large scale bio-energy is an important barrier
   for the development of a sustainable biomass
   market