Sustainable bioenergy production on marginal lands in Europe: an economic perspective
Author(s)
Traverso, Lorenzo
Date Issued
September 19, 2022
Type
Doctoral Thesis
Abstract
Extensive surfaces of land are currently underutilized, marginal and/or contaminated (MUC) in many EU and neighbouring countries. In the past few years, scientific research has demonstrated that bioenergy crops can potentially render this land profitable, generating income for the local populations and, at the same time, reaching the goals of the new Renewable Energy Directive (REDII) without interfering with food production. The main objective of this Thesis is to investigate the potential exploitation of MUC lands in Europe to produce biofuels and other innovative bioenergy products. First, the work assesses what the environmental, social, and economic opportunities and constraints of producing bioenergy on underutilized lands in Europe are.
Secondly, the financial economic profitability and the risk of the related bioenergy investments for the selected case study (CS) sites are measured. Finally, the Thesis investigates the policies which could be introduced to overcome implementation barriers of bioenergy production on these lands. The findings of the first CS suggest that 2G ethanol would be produced at a cost of EUR 936/ ton in Italy and EUR 720/ton in Ukraine, with a substantial reduction in greenhouse gas (GHG) emissions. The results of the second CS indicated that in Italy and Ukraine, although the production of 2G ethanol would allow positive net yearly margins, the investments would not be profitable compared to the baseline scenarios. In Germany, the work shows good profitability for combined heat and power (CHP) and biochemicals, and negative NPV for investments in biomethane. The Monte Carlo simulation shows the possible economic result that could be attained once volatility is factored in. The policy landscaping shows that additional policy support from Governments is needed to address the high investment risks related to commercial-scale plants for bioenergy as well as to enable the supply of biomass feedstock for bioenergy production on MUC lands.
Additional information
Dottorato di ricerca in Economia, management e metodi quantitativi
Subjects
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