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The recent and rapidly growing interest in biofuel as a green energy source has raised concerns about its impact on the prices, returns and volatility of related agricultural commodities. Analyzing the spillover effects on agricultural commodities and biofuel helps commodity suppliers hedge their portfolios, and manage the risk and co-risk of their biofuel and agricultural commodities. There have been many papers concerned with analyzing crude oil and agricultural commodities separately. The purpose of this paper is to examine the volatility spillovers for spot and futures returns on bio-ethanol and related agricultural commodities, specifically corn and sugarcane. The diagonal BEKK model is used as it is the only multivariate conditional volatility model with well-established regularity conditions and known asymptotic properties. The daily data used are from 31 October 2005 to 14 January 2015. The empirical results show that, in 2 of 6 cases for the spot market, there were significant negative co-volatility spillover effects: specifically, corn on subsequent sugarcane co-volatility with corn, and sugarcane on subsequent corn co-volatility with sugarcane. In the other 4 cases, there are no significant co-volatility spillover effects. There are significant positive co-volatility spillover effects in all 6 cases, namely between corn and sugarcane, corn and ethanol, and sugarcane and ethanol, and vice-versa, for each of the three pairs of commodities. It is clear that the futures prices of bio-ethanol and the two agricultural commodities, corn and sugarcane, have stronger co-volatility spillovers than their spot price counterparts. These empirical results suggest that the bio-ethanol and agricultural commodities should be considered as viable futures products in financial portfolios for risk management. [ABSTRACT FROM AUTHOR]

Sugarcane mills currently use sugarcane bagasse to cogenerate heat and electricity, supplying the process with mechanical, thermal and electrical energy. Some of these plants are able to produce surplus electricity to export to the national grid. With the improvement in collection techniques, sugarcane straw has also become available and has been used in some mills as fuel for steam boilers, mixed with sugarcane bagasse. However, due to different traits compared to bagasse, the use of sugarcane straw may pose additional problems of incrustation and corrosion on heat exchange surfaces. Several alternatives and technologies have been studied and tried out in order to increase the production of surplus electricity. Among others, biomass integrated gasifier–gas turbine combined cycle (BIGCC) is a promising technology. However, several attempts have resulted in failure, whether on a pilot or industrial scale. Biomass gasification integrated with internal combustion engines can become an opportunity for generation of small power capacity (<15 MW) and integrated to sugarcane mills. This paper analyzes the difficulties and barriers to increasing electricity generation in the sugarcane industry through studies, projects and experimental and industrial-scale installations that have already been carried out. • Bagasse and cane straw show great potential for electricity generation. • Sugarcane industry in Brazil accounts for 6.4% of the electricity generated. • Biomass integrated gasification and combined cycle can increase electricity generation. • Technological and economic challenges are major barriers to the development of BIGCC. • No BIGCC project already implemented is currently in commercial operation. [ABSTRACT FROM AUTHOR]

The biorefinery concept provides a wide perspective of products and uses from the biomass conversion. The drive for cost reductions and the threat of food competition have put residual biomass under the spotlight. Sugarcane is the most produced crop in the world, and its residual bagasse has got the additional feature of abundance. Going beyond its traditional use for electricity and thermal generation, this paper explores the potential alternative uses for the sugarcane bagasse in Brazil. Under an Input-Output perspective, Brazilian production recipes are obtained for six distinct biorefining technologies assuming the use of sugarcane bagasse as feedstock. Also, minimum selling prices are derived for the main products of each technological route assessed, comprising an initial estimative of their cost prices in Brazil. The biomass to ethanol and higher alcohol route presented the higher share (25%) of productive and service sectors into its production recipe. The bioplatform succinic acid route was the only one reaching competitive minimum selling prices (0.57 US$/kg) in comparison to current pricing of the fossil-derived succinic acid. [ABSTRACT FROM AUTHOR]

The potential for sugarcane ethanol from Brazil to mitigate GHG emissions is undeniable, but the way that ethanol is produced during the agricultural and industrial phases will ultimately determine its benefits to society. In this paper, we evaluate the environmental impacts of sugarcane agriculture and ethanol production in Brazil as management practices continue to change and production expands to new frontiers. We focused our evaluation on the impacts on water, atmosphere, and soils, including how the application of organic and inorganic fertilizers and the accumulation of crop residue in the field affect emissions of greenhouse gases (GHG). We also addressed the impacts of land use changes on threatened biomes and discussed some of the present obstacles regarding conservation and restoration efforts. We concluded that, since a similar assessment was put forth in 2008, our knowledge about the environmental impacts of sugarcane ethanol in Brazil has advanced with regard to soil degradation, nitrogen dynamics, and soil carbon stocks. However, more information is still needed about the impacts of the increasing use of pesticides, herbicides, and fertilizers in sugarcane agriculture, especially on water resources. Furthermore, without a better understanding about how landscape fragmentation affects the biodiversity of terrestrial and aquatic tropical ecosystems and the services they provide, policies created to protect and restore them may be ineffective. On the other hand, the use of presently available scientific information to end unsustainable farming and the implementation of conservation strategies proposed by the Brazilian Forest Code could be a first step to guarantee that ethanol is produced more sustainably in Brazil. [ABSTRACT FROM AUTHOR]

The replacement of fossil fuels by biofuels has been extremely important worldwide to stimulate the growth of economies based on the sustainability through the use of renewable resources. Anaerobic digestion for biogas production is recognized as a clean technology that allies the suitability of wastes with energy generation, fulfilling the requirements for a sustainable alternative to provide the optimization of the biofuels production. This alternative is especially interesting for the sugarcane ethanol production in Brazil, in which the generation of vinasse, the main liquid waste, is very expressive. Nevertheless, the use of vinasse for anaerobic digestion has been finding some challenges to its establishment in the Brazilian sugarcane biorefineries. This paper reviews the actual context of anaerobic digestion within the sugarcane ethanol production in Brazil, presenting the main obstacles for its full application and the directions to promote it as well. Alternatives for biogas use are also presented and compared, highlighting the environmental and energy advantages of applying anaerobic digestion in the sugarcane biorefineries. This scenario is envisaged as a suitable way to achieve the future biorefineries model, based on the use and recovery of renewable resources with economic, social, and environmental benefits. [ABSTRACT FROM AUTHOR]

The key objective of this study is to evaluate and compare the main environmental life cycle impacts and energy balance of ethanol from sugarcane and biodiesel from soybean and palm oil, in the Brazilian conditions. The methodological tool used was the Life Cycle Assessment (LCA), in Well-To-Tank (WTT) perspective. A process based on cradle-to-gate attribution LCA method, was applied as the technique to assess the health and environmental impacts of ethanol and biodiesel production systems. The environmental assessment was carried out using the SimaPro 7.0.1 software and the CML 2 baseline 2000 methodology, developed by the Institute of Environmental Sciences (CML). The assumed common analysis base in this paper was 1.0 MJ of energy released by combustion of the analyzed biofuels. The environmental impacts were quantified and ranked in categories of impacts: Abiotic Depletion Potential (ADP), Global Warming Potential (GWP), Human Toxicity Potential (HTP), Acidification Potential (ACP) and Eutrophication Potential (ETP). In addition, the results were compared by meta-analysis with previous published studies. The Net Energy Relation (NER) in the life cycle of biofuels is an important indicator of the technical and environmental performance evaluation of biofuels production. In this study the NER of ethanol and biodiesel from soybean and palm oil were estimated and compared with previous published studies. Direct and embodied energy inputs, based on defined system boundaries, were used to estimate the energy requirement of crops production, juice/oil extraction, and ethanol/biodiesel industrial production. It is possible to conclude, that biofuel production systems with higher agricultural yields and extensive use of co-products in its life cycle present best environmental results. The analysis of obtained results shows that the choices of co-products allocation method, transport distance and inventory database of the country, have significant influence on the results of the life cycle environmental performance of biofuels. [ABSTRACT FROM AUTHOR]

This paper presents the potential of biogas from anaerobic digestion of vinasse and its impact in different contexts. The use of vinasse biogas (VBG) for power generation is evaluated and the potential of this energy source is compared with fossil oil power plants in terms of energy, costs and greenhouse gases (GHG) emissions in Brazil, suggesting a program where the most expensive oil power plants are replaced by biogas plants with benefits in all aspects. Secondly, the use of vinasse biomethane (VBM) to replace natural gas (NG) in the state of São Paulo is examined, presenting an incentive program that could make this alternative fuel feasible even in smaller scale plants with minimal impact on NG costs in this state, while providing considerable emission reduction. The impact of VBG considering the increase in ethanol production over the next ten years is also evaluated, showing that substantial additional energy can be obtained and larger amounts of fossil fuels can be replaced. By crossing vinasse biogas potential with selected fossil fuels demand, the article brings insights to help the transition to a low-carbon society in a novel approach. The conclusions are that VBG and VBM can provide great benefits, such as USD 1 billion/year cost reductions and 6.7 million tons CO 2e /year emissions avoided by replacing fossil oil by biogas in power generation in Brazil and 3.2 million tons CO 2e /year avoided with biomethane replacing natural gas in the state of São Paulo, which, with specific programs and policies, could be achieved. • Vinasse biogas could replace fossil oil and natural gas in Brazil. • Electricity from vinasse biogas avoid GHG emissions at lower costs than oil plants. • Vinasse biomethane can replace natural gas in São Paulo with minimal cost increase. • Vinasse biogas can substitute more fossil fuels with increased ethanol production. [ABSTRACT FROM AUTHOR]

In Colombia, the national biofuels policy made it possible to create the ethanol and biodiesel industries around the sugar and palm sectors, respectively. These production chains have generated a direct interaction between biofuels and the agri-food industry. Thus, this paper seeks to analyze whether the national biofuels policy allowed a reconfiguration of the production dynamics of both the sugar and palm sectors in Colombia, in the period 2008–2018. The analysis methodology used is based on the time series models approach of the autoregressive distributed lag models type. The results show that this policy of promoting the use of biofuels has transformed the dynamics of the sugar and palm sectors, in such a way that ethanol production generated a substitutive production relationship with sugar for export, while biodiesel allowed a greater expansion of the entire palm sector. These results open the debate on whether to gamble on the continuity of the biofuel-promoting policy around these two current sectors or productive alternatives should be considered through an adjustment of incentives. • Colombian biofuels policy has induced, since 2008, a reconfiguration to the palm and sugar economic sectors. • Sugarcane-based ethanol production generates a substitutive production relationship with sugar in Colombia. • Biodiesel revamped the entire palm sector. • Under the current infrastructure, greater increases in ethanol production are only possible through lower sugar production. • The blending percentage policy has been unstable. [ABSTRACT FROM AUTHOR]

There have been many efforts to improve sugarcane cultivation and conversion technologies in the ethanol industry. In this study, an economic assessment and greenhouse gas (GHG) emissions analysis are performed on ethanol produced conventionally from sugarcane sugar and on an emerging process where the sugarcane bagasse is additionally used to produce ethanol. The combined conventional plus lignocellulosic ethanol pathway is found to be less economically favorable than the conventional ethanol pathway unless a series of technical challenges associated with cost reductions in lignocellulosic ethanol production are overcome, reaching a production cost at 0.31 $/L. This is expected to be achieved in a prospective 2020 scenario. GHG emissions savings against gasoline for both the conventional ethanol and the conventional plus lignocellulosic ethanol pathways are confirmed and found to increase with technological developments projected to occur over time. However, the absolute numbers are highly sensitive to the way of claiming credits from surplus electricity co-generated in the mill. These are 86%, 110% and 150% for the conventional ethanol in the 2020 scenario when the surplus electricity is assumed to replace the average electricity, the ‘combined-sources’ based electricity and the marginal electricity, respectively. For the conventional plus lignocellulosic ethanol pathway, they are 80%, 85% and 95% respectively in the 2020 scenario. Finally, a series of sensitivity analyses found the comparison in the GHG emissions between the two production pathways is not sensitive to changes in the sugarcane yield or the emissions factor for the enzymes used in the lignocellulosic ethanol process. However, the plant size is an influential factor on both the ethanol production cost (a lowest MESP of 0.26 $/L at the scale of 4 MM tonne cane/yr) and the GHG emission factors, partially because of the important role that transport of feedstock biomass (sugarcane and trash) plays in both elements. [ABSTRACT FROM AUTHOR]