1. 1 Water in Bioenergy Agroecosystems Workshop Industry perspective on water for bioenergy production Alistair Wyness, BP International Group Water Expert 13 June 2012

2. 2 Water in Bioenergy The importance of “water management” in industry External expectations Managing water within biofuels operations Reporting water withdrawals and consumption Conclusions

3. 3 Water & Industry Fresh water is a scarce resource in many locations Competition increasing Population (Water, Energy & Food Demands) Economic Growth Pollution Increasing Climate Change Regulations tightening Increasing external focus on industrial use

4. 4 Water & Industry Source: Water Resources Group 2030, Charting our Water Future

5. 5 Expectations of Industry Water management in industry now essential with many drivers −Access and availability – Challenge of scarcity and water quality −Human right to water for drinking and sanitation −Regulation – Competition for resources and increasingly stringent regulations. −Operations – Risk management – water conservation −Cost – decisions on cost or decisions on value? −Stakeholder– Significant NGO, pressure group and investor focus. Growing pressure by civil society, consumers and media. −Reputation – Licence to operate

6. 6 Emerging Themes in Industrial Water Management Direct Operations - Water efficiency & targets, technology investment, account for water availability in facility-siting Supply Chain Management – encourage supply chain to do the same Watershed Management – understand the watershed risks, share the risk and solutions with the stakeholders Collective Action – closer ties with civil society organisations, local and national regulators, collective investments Public Policy – Contribute to regulations that drive water sustainability, partnering with global initiatives Community Engagement – understand water/sanitation challenges, encourage/provide support to local government Transparency – publish and share water strategies, withdrawal, impacts, mitigation measures and action on all of above

7. 7 How do we apply these principles to biofuels? Direct operations – siting of operations, minimise consumption at refinery, maximise irrigation efficiencies, practice fertigation Watershed Management –understand constraints within watershed, operational impacts, how biofuels can be managed to minimise impacts/maximise opportunities Collective Action/Community Engagement – work with local civil organisations and communities to develop shared solutions in water competitive environments Public Policy – work with trades bodies and regulators to develop water management practices Transparency – Report water consumption at the different levels: plant, farm, watershed A need to fully understand potential and perceived impacts prior to full scale development

8. 8 Water Withdrawals & Consumption Agricultural water use far surpasses that of industrial. ~20:1 ratio for a lignocellulosic operation Need to consider the different components of water use: green. blue and grey Green water Does bio-energy crop change (positive or negative) the runoff characteristics downstream of the crops as a result of changes in ET demand? Blue water How does irrigation (if adopted) change the watershed consumptive use of water? Seasonal differences? Use of fertigation as a blue water/fertiliser? Refinery use and use of water within the crops as a source Grey water Impacts of fertiliser and pesticide applications downstream of the cropped lands - potential future liability

9. 9 Water Withdrawals & Consumption Bioenergy needs a common framework that captures the NET water use related to crop growth and refinery processes REFINERY: Water withdrawn from rivers, lakes and aquifers Water released from crops in processes Treated water −to disposal −to fertigation Aim to define consumed water Measurements relatively straightforward CROPS Do we include net green water use? Irrigation use −How to define efficiency −Measures to improve e fficiency (e.g. tailwater recapture in for re-use) Cost of measurement very high −Measurement v modelling

10. 10 Conclusions Understanding the watershed in which both refinery and bio-energy crops are located is key to understanding and reporting impacts −Needs assessment of economic, environmental and social challenges within the watershed −Essential at pre-feasibility stage to fully understand the constraints and develop the baseline −Models will play an important part of understanding impact and reporting water use The industry needs a common, transparent framework to demonstrate net water use in bio-energy production

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