1. UK approach to calculating biofuel carbon intensity
Expert Meeting Fuel Life Cycle Analysis
17th July 2007, Brussels
Greg Archer, Director, Low Carbon Vehicle Partnership

2. UK biofuel policy is principally designed to deliver GHG savings
RTFO commences April 2008, requires suppliers of transport fuels to:
Sell a given amount of renewable transport fuel each year (for which they will receive certificates); or
Purchase certificates from another company; or
Pay a “buy-out” price of 22c/l – duty differential of 45c/l retained
From start - reporting of the carbon and sustainability (C&S) of biofuels
From 2010 – proposed to link issuing of Renewable Transport Fuel Certificates to the carbon intensity of the biofuel
From 2011 – proposed to issue certificates only to sustainable biofuels
To encourage the supply of sustainable biofuels

3. UK Renewable Transport Fuel Certificates issued on receipt of a carbon and sustainability report
Reports must be supplied on all fuels produced or imported to UK
Confidential monthly reports on homogeneous batches
Annual aggregate reports published by company
Comparative reports of company performance published by Administrator
Targets for company performance – but no penalties
No exclusions of feedstock/fuel & “Not known” reports permissible
Independent verification of reports & claims
Annual company target
Percentage of feedstock meeting the ‘Qualifying’ Standard -
50%
80%
GHG saving
40%
60%
Data provision
35%
65%
To receive RTFC must supply C&S report to Administrator
Reports on individual batches of fuel entering or produced in the UK
Supplied on confidential basis – monthly – by those supplying biofuels to the market – oil companies
Oil companies will make providing info a contractural requirement
Annual aggregate reports published by companies & Administrator
CSR pressure – comparison of performance; in addition company target to set benchmark indicating level of performance expected by Gov
Data
GHG-saving
Qualifying fuels
BP / Shell invested heavily in corporate reputations – don’t want these damaged by biofuels – said only source fuels they can demonstrate have been produced sustainably. If you want to sell to these companies you need to demonstrate the biofuel is sustainable.
Because new scheme, and we wish to avoid possible WTO challenge, no feedstock exclusions and not known reports permissible – target for data

4. Illustrative Monthly Sustainability Data Sheet
Ref
Fuel type
Quantity of fuel (litres or kg)
Biofuel Feed-stock
Origin
Sustainability Information
Carbon Information
Env. Stnd
Social Stnd
Land use in Nov 2005
Carbon intensity
Impact of LUC
Accur-acy level
g CO2e / MJ
3303
Bioethanol
250,000
Sugar beet UK
ACCS
Mech
Crop 45 4
3304
1,000,000
Sugar cane
Brazil - 19 2
3305
500,000
N/K 72
3306
Biodiesel
Oilseed rape
Mech + RTFO 79
3308
Palm oil
Malay-sia
RSPO 49
3309
BioCH4
150,000
Dry manure
By-product 36
3310
Bio-ETBE
Wheat
LEAF
Mech + LEAF 12
Annual Reports should..
Be rigorous and independently verified
Be publicly available
Aggregate monthly data
Describe activities to improve data capture and sustainability performance
Administrator will also produce reports of comparative performance

5. UK Programme Jun – Sept 06 Oct- Dec Jan- May 07 Jun- Sept 07
Oct-Nov 07
Dec- Mar 14
Apr 08
1 Project set-up
2 Methodology development
3 Technical Guidance prepared
4 Stakeholder liaison
5 Guidance piloting & consultation
6 Guidance finalised & issued
7 Roll-out
9 Launch

6. Carbon Intensity calculation boundaries
Feedstock
transport
Biofuel
production
Cultivation &
harvest
Waste
material
Alternative
waste
management
Boundary for monthly
carbon intensity calculation
Direct
land use
Indirect
Excludes minor sources, from: •
Manufacture of machinery or
equipment
PFCs ,
HFCs
, SF 6
Assessed ex post by
RTFO Administrator

7. Calculation method (i)
Detailed chains calculated for:
Ethanol from: sugar cane, sugar beet, wheat and corn
Ethanol converted to ETBE
FAME biodiesel from: tallow, used cooking oil, palm oil, soy and rapeseed
Biomethane from anaerobic digestion of MSW
Flexible system of co-product allocation
Substitution
DDGS / WDGS
Rape meal
Soy meal
Energy content
For energy uses
Market value
Others

8. Calculation method (ii)
Alternative Waste Management
Default values set to zero
Companies that can demonstrate alternative waste management may claim credits
RTFO Administrator would have to approve a new waste
Direct land-use changes (since Nov 05)
Only applies to changes from forest or permanent grassland
No account of alternative land-use for existing agricultural systems
Land use in November 2005
Applies IPCC Tier 1 factors
Option to use Tier II / III systems
Indirect land-use change
Calculated by Administrator
Not part of company reporting
Fossil fuel reference system
Based upon Concawe/EUcar/JRC
Chain of custody
Mass-balance
Data passed through supply chain with purchase invoices
Independent annual audit

9. Tiered default values and real data used for calculations
Conservative defaults
Increasing information availability
0. Fuel defaults e.g. Ethanol only
Somewhat Conservative defaults
1. Feedstock defaults e.g. Ethanol – Wheat
Increased accuracy of calculation
2. Feedstock & Origin defaults e.g. Ethanol – UK, Wheat
Typical defaults
3. Chain defaults e.g. Ethanol, - UK, Wheat, CHP
4. Chain calculation e.g Chain default + some actual data

10. Conclusions
UK approach focused on maximising GHG savings from sustainable biofuels
April 08 reporting of the carbon and sustainability (C&S) of biofuels
From 2010 – proposed to link issuing of Renewable Transport Fuel Certificates to the carbon intensity of the biofuel
From exclusion of unsustainable fuels
Carbon intensity calculation includes all significant direct emissions
Flexible system of co-product allocation
Effects of direct, but not indirect land-use change calculated
Flexible data requirements – conservative, high level, default values
Detailed chain calculations for a range of feedstock supplied to the UK
Fossil reference system based upon Concawe data

11. Any Questions? The Low Carbon Vehicle Partnership +44 (0)20 7304 7040