Project Title

Ethanol Trade Development as Part of APEC's Renewable Fuel Strategy 

Project Year

2015   

Project Number

EWG 12 2015A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

EWG 12 2015A 

Project Title

Ethanol Trade Development as Part of APEC's Renewable Fuel Strategy 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Energy Efficiency 

Project Year

2015 

Project Session

Session 1 

APEC Funding

120,000 

Co-funding Amount

195,880 

Total Project Value

315,880 

Sponsoring Forum

Energy Working Group (EWG) 

Topics

Energy 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

United States 

Co-Sponsoring Economies

China; Korea; Malaysia; Chinese Taipei; Thailand 

Expected Start Date

01/06/2015 

Expected Completion Date

30/06/2016 

Project Proponent Name 1

Dr Cary N Bloyd (new PO wef 5 Aug 2015) 

Job Title 1

Senior Staff Scientist 

Organization 1

Pacific Northwest National Laboratory 

Postal Address 1

14905 Notley Road, Silver Spring, MD 20905, USA 

Telephone 1

1-301 6518899 

Fax 1

1-509 3724353 

Email 1

Cary.Bloyd@pnnl.gov 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Dr Cary N Bloyd 

Project Summary

Global trade in ethanol has grown dramatically reaching approximately 1.8 billion gallons in 2014.  The growing trade is driven by the price of petroleum products and ever-growing environmental concerns, especially related to greenhouse gas (GHG) emissions. 

International trade in ethanol can provide win-win opportunities for APEC economies by helping to foster sustainable energy development across the APEC region.  It can also enhance agricultural productivity and boost rural income.  It has become increasingly clear that the key to vibrant trade in ethanol involves the creation of sustainable regional markets.

In keeping with the United Nations “Sustainable Energy for All” initiative, and the aspirational goal to double the share of renewables in the APEC energy mix by 2030, the U.S. Department of Agriculture proposes to conduct a capacity building program to assist APEC economies in fostering the development of a vibrant regional trading system in both ethanol and ethanol feed stocks.

Relevance

Relevance – Benefits to Region: The APEC Energy Ministers, at the September 2014 meeting in Beijing, endorsed a new APEC-wide goal of doubling the share of renewables in the APEC energy mix from 2010 levels by 2030. APEC economies are net energy importers with a rising energy demand that accounts for approximately 60 percent of world energy consumption.  Including fuel grade ethanol, as well as trade in biofuel feed stocks, as part of APEC’s renewable energy strategy is a vital step toward achieving the aspirational goal of increasing the use of renewable fuels among APEC economies.  While bioenergy, including ethanol, is a viable alternative to petroleum, the value of ethanol as a transport fuel is not widely understood in APEC economies.  Many APEC economies have been unable to overcome the feedstock, logistics, infrastructure, and financing challenges associated with building a viable domestic ethanol sector.  By increasing awareness of the role that ethanol can play as a renewable energy source in transport fuels, and equipping APEC policy makers and regulators with the knowledge, tools and contacts to put enabling policy frameworks in place, ethanol can provide win-win opportunities for all APEC economies, whether they are potential ethanol producers, importers or exporters.

Relevance – Rank: The project proposal falls under Rank 2, Energy efficiency, energy security and energy resiliency including the development of low carbon technology and alternative energy sources as the project focuses on the development of ethanol and biofuel feed stocks as part of APEC’s sustainable energy development strategy.

This project also is linked to “Rank 1” because it promotes regional economic integration via free and open trade.  The project addresses the following Rank 1 criteria:  supporting the multilateral trading system and the Bogor goals; building an open economy in the Asia-Pacific featuring innovative development, interconnected growth and shared interests; trade facilitation and liberalization, SME development, including access to regional and global markets; supply chain connectivity, including a green supply chain; infrastructure development and investment; environmental goods and services; next generation trade issues; standards, conformity assessment, technical regulations, regulatory cooperation, and regulatory coherence, including good regulatory practices; human capital development; and building sustainable and resilient communities.

Objectives

The objective of this project is to enhance the knowledge of APEC policy makers and regulatory officials by providing them with a “road map” for putting enabling policy environment in place that foster the development of viable domestic ethanol markets supported by a vibrant regional trading system.  The road map will:

a) Increase understanding of ethanol economics, trade opportunities, and infrastructure needs;

b) Provide case studies on how other economies have successfully implemented ethanol policies and regulatory frameworks, managed access to competitively priced feed stocks, and addressed infrastructure issues;

c) Provide informational tools that can be used to heighten awareness of the environmental and economic role that ethanol can play as part of a broader renewable energy strategy, and build consumer and stakeholder support for the adoption of ethanol policies; and

d) Address issues related to sustainability criteria and market access.

The proposed workshops will be focused on achieving the following objectives:

a) Knowledge Enhancement and Information Sharing:  The community of practice created by this initiative will capitalize on existing and generate additional knowledge and experience.  The workshops will facilitate access to relevant information and foster engagement among interested parties and external stakeholders with the ultimate objective of enhancing the technical knowledge of APEC regulatory officials and policy makers so that they have the capacity to incorporate ethanol into the APEC road map and achieve the aspirational goal of doubling the share of renewables in the APEC energy mix, including transport fuels, by 2030.

b) Policy Support:  Workshops will provide participants with specific recommendations on how to establish domestic policy frameworks and address feedstock and infrastructure challenges leading to the creation of efficient domestic ethanol industries.  Build support among APEPC economies for a strong and vibrant regional trade in ethanol.

c) Deployment Support:  Promote and support the development of an enabling policy and institutional environment for ethanol by building linkages with external stakeholders, including Sustainable Energy for All, which can provide on-going policy, financial and knowledge support leading to ethanol project development and increased trade.

Alignment

This program aligns with APEC’s goal to double the use of renewable energy sources by 2030 and builds on the work of the APEC Biofuels Task Force.  It supports APEC’s goal to advance free-trade and supports the development of pro-trade policies and regulations by encouraging the development of a viable regional fuel ethanol market in the APEC region that will foster sustainable energy development across the APEC region and encourage collaboration among member economies.

This project directly supports three central aspects of most recent Energy Working Group (EWG) strategic plan: “Strengthening Energy Security” through the increased use of APEC produced biofuels; “Develop Cleaner Energy Sources” via clean burning ethanol based transport fuels” and “ and “Prosperity through Trade, Investment and Economic Growth” through directly promoting the regional trade in biofuels.

TILF/ASF Justification

The developing economies of APEC rely heavily on agriculture’s contribution to their overall GDP and for providing employment opportunities to vulnerable segments of their economy.  Including ethanol in their renewable energy strategy and ensuring an open trade of ethanol among APEC economies allows farmers and industry to diversify their production strategies and opens up new markets and production opportunities for farmers to participate in. 

Through a series of workshops, representatives from APEC member economies will be educated on existing models for implementation of renewable fuel strategies using ethanol.  The workshops will draw from existing economies which have implemented ethanol and biofuel feedstock production strategies and highlight the impact of these strategies on all segments of the production and supply chain.  The workshops will emphasize best implementation strategies and the lessons learned and recommendations for broad rapid adoption and realization of the benefits that ethanol provides for agriculture, trade and renewable fuel strategies.

Beneficiaries and Outputs

Outputs: The project will provide technical information through a series of workshops targeting members of the Energy Working Group (EWG) and Expert Group on New and Renewable Energy Technologies (EGNRET), on ethanol and biofuel feed stocks.  The focus will be on capacity building by addressing the following topics through technical experts in:

1) Economy-specific case studies on how ethanol and biofuel feed stocks has been adopted effectively as a renewable fuel – examples, Philippines, Thailand, Brazil, the United States.  What has worked and what hasn’t.

2) Benefits of open markets in establishing ethanol trade – how international trade in ethanol and biofuel feed stocks can ensure competitive and healthy renewable energy programs.

3) The benefits to the agricultural sector by promoting ethanol and biofuel feed stocks production.

4) Food versus fuel – how agriculture sustainability can ensure that a renewable fuel program including ethanol and biofuel feed stock production will not threaten food security.

5) Greenhouse gas reduction and land use calculations that demonstrate the viability of renewable fuel programs using ethanol and biofuel feedstock.

6) The environmental benefit in terms of reducing particulate matter air pollution in urban areas by using ethanol as an oxygenate.

7) How harmonized biofuel standards can reduce cost.

8) Infrastructure and regulatory processes that will facilitate the production, trade and use of ethanol and biofuels feed stocks by APEC member economies.

In addition to actual workshops, webinars and technical publications, which will complement the speaker’s presentations, will be made available for publishing and distribution to participants and APEC member economies for use outside of the workshop.  These webinars and publications will be published on APEC’s website.

Outcomes: Participants in the workshops will be provided a variety of tools (technical knowledge, webinars, technical publications and web based materials) which they can utilize as the policy makers in their economies discuss the various methods that they can employ to achieve the goal of doubling their use of renewable fuels by 2030.  Policy makers will have ready access to technical materials that will provide a road map for the use of ethanol and biofuel feedstock as part of their renewable fuel strategy.

A library of technical information and working case studies which will allow policy makers and those designated to implement policy changes in various economies to easily access models which will address their concerns and provide solutions to adoption and implementation of pro ethanol and biofuel feedstock policies.  In addition, factsheets and technical support materials will be available to allow for an educated debate by the general population, policy makers and industry on key issues related to establishing a viable ethanol market in their economy.

The communities of practice that emerge from these workshops will promote the support and development of an enabling policy and institutional environment for sustainable ethanol development across the APEC region.  Through participation in workshops, policy makers will be introduced to external stakeholders, recognized for their leadership in sustainable bioenergy policy, technology and best business practices, that can provide guidance and advice going forward so that APEC economies and their policy makers and their stakeholders have a better understanding of the constraints that could prevent a viable ethanol trade from developing.  For example, policy and infrastructure models will be presented that show how other economies have successfully dealt with the challenges of developing sufficient feedstocks to produce ethanol; what infrastructure needs to be developed to distribute the ethanol to the end user and how can the private and public sector work together to provide funding for these necessary changes.  The goal being to show APEC economies various workable models so they can select a strategy that works best for their economy or policy framework.

Beneficiaries: The direct beneficiaries of this program will initially be the participants of the Energy Working Group (EWG) and Expert Group on New and Renewable Energy Technologies (EGNRET).  In addition, beneficiaries and stakeholders include project participants, APEC policy makers, regional ethanol producers, the petroleum industry and car manufacturers.  While non-APEC members will benefit as trading partners with APEC economies, the primary beneficiaries will be APEC economies as they take a leading role in establishing renewable fuels and biofuel feed stock trading as a viable part of their energy strategy.

Governmental policy makers for the related economies who will be reviewing their renewable fuels strategies and industry affected by policy changes will benefit from the project technical seminars and supporting educational material.  Academia involved in the policy debate will benefit from the educational material as they participate in the debate about renewable fuel options which will be the best fit for their particular economy.

Long-term beneficiaries will be agricultural producers who will be benefit over the long term as these policies are implemented by economies which embrace ethanol as part of their renewable fuel strategy.  In addition, the growth in industrial processing capacity, infrastructure for use and distribution of ethanol and biofuel feed stocks and industry related with the trade of these products between economies will be long-term beneficiaries.

Dissemination

Initially all the materials will be presented through technical seminars targeting key audience members of APEC economies.  To ensure that the case studies and technical information is available for boarder distribution, the speakers will participate in recorded Webinar sessions and publish technical materials that support their positions on the use of ethanol and biofuel feed stocks.  The webinars will allow seminar participants to return to their economies and selectively use these materials to educate a broader audience of policy makers and stakeholders to ensure that the message and technical concepts are accurately transmitted to a broader audience. The webinars and any technical material will be developed/presented in English, following APEC branding guidelines and published on the APEC website.  For the webinars, if the APEC website is not the appropriate venue, another site will be selected such as YouTube provided APEC approves.  Once the materials are posted on the website, all participants in the seminars will be notified via email, so they can reference the material as a technical library, as needed.  In addition, all seminars will highlight the website and the resources that are available in order to draw traffic to the site where they can download and distribute the material as needed.

Gender

The gender issue seriously taken into account by the project manager who is not only a woman, but her organization has written policy guidelines that endorse Equal Opportunity and Non-Discrimination (available on request).  Women will be involve in all stages of planning and developing the technical programs that will be presented.  In addition, women will be involved in identifying the appropriate candidates to invite to the seminar and ensure that the material is transmitted to the appropriate target audience.   Both men and women will get equal opportunity to participate in the project implementation, including in the preparation process, consultations and direct labour, etc.  In addition, to address gender concerns and to make sure that men and women are engaged efficiently in the Workshops, the evaluation form at the end of the Workshop will include information on gender to aggregate for project assessment.

Women participation in the Energy Working Group and the Expert Group on New and Renewable Energy Technologies will help to guide and implement not only this project, but also their economies strategic planning for the adoption of new renewable fuel strategies.

As the recommendations for the use of ethanol and biofuel feed stocks are implemented, women will actively participate and benefit from these policy changes in the way that they affect agriculture and industry throughout the APEC region.  Women are well represented in these sectors and are expect to participate in the downstream benefits of these policy changes. During the Workshops, speakers will be asked to highlight how women stand to benefit by highlighting specific examples in their economy case studies.  For example, how women have benefited in through employment in industry and agriculture.  Also, how women in the agriculture sector can benefit from the opportunity for improved household incomes.  Policy recommendations, including APEC Gender Policy Recommendations will also be highlighted to ensure that vulnerable segments of the society are protected and given opportunities and economies implement policy changes.

Work Plan

This project will support up to four quarterly workshops to be held along-side an APEC Energy Working Group and the Expert Group on New and Renewable Energy Technologies meetings that will bring together representatives from APEC members, academia and industry.

Three months after project approval: Identify upcoming EWG and ERGNET meetings which would be the appropriate venue for a workshop on ethanol as a renewable fuel.  Upon confirmation of the dates and venue, key stakeholders among the APEC economies who will be influential in determining the future of the region’s renewable energy strategy will be identified and invited to attend this workshop.  In addition, speakers who can present case studies on ethanol and biofuel feedstock policy and adoption by other economies will be identified and invited to speak at the workshop.

Six to twelve months after project approval: Conduct up to four workshops on a quarterly basis until December 2016 that will address the following topics: 

1) Economy-specific Case Studies in how ethanol and biofuel feed stocks has been adopted effectively as a renewable fuel – examples, Philippines, Thailand, Brazil, and the United States.  What has worked and what hasn’t.  The Case Studies and technical will be developed prior to the Workshop.  However, based on feedback of the participants, additional Case Studies and Followup material will be developed after the Workshop and distributed to participants.

2) Benefits of open markets in establishing ethanol trade – how international trade in ethanol and biofuel feed stocks can ensure competitive and healthy renewable energy programs.

3) The benefits to the agricultural sector by promoting ethanol and biofuel feed stocks production.

4) Food versus fuel – how agriculture sustainability can ensure that a renewable fuel program including ethanol and biofuel feedstock production will not threaten food security.

5) Greenhouse gas reduction and land use calculations that demonstrate the viability of renewable fuel programs using ethanol and biofuel feedstock.

6) The environmental benefit in terms of reducing particulate matter air pollution in urban areas by using ethanol as an oxygenate.

7) Infrastructure and regulatory processes that will facilitate the production, trade and use of ethanol and biofuels feed stocks by APEC member economies.

At the completion of each workshop, the participants will participate in a discussion which evaluates the effectiveness of the materials presented, the speakers and makes recommendations for future material support that would help clarify the topics presented or address topics that are missing and need to be included in future workshops.  In addition, the speakers will record their presentations in webinar format so that they can be distributed and viewed by a larger audience with APEC than those who participate in the workshop.  The webinar will be recorded separately from the Workshop to ensure that the quality is clear, however the actual Workshop will be recorded and the discussion from the actual seminar will be incorporated into the webinar to ensure that the discussion and follow-up is captured and incorporated in the webinar.

At the end of the four workshops, the participants will have at least five case studies that map out the steps for successful adoption of ethanol and biofuel feed stocks.  In addition,  they will have a technical library of materials that discuss policy recommendations and infrastructure investments that will ensure a viable policy platform is launched which will create long-term sustainable changes.

Risks

We expect a relatively low level of risk associated with this project implementation.  The project builds on and complements already a high level of interest among APEC member economies in fostering renewable fuel strategies and developing options for achieving these goals.  The workshops will comprehensively map out the process for implementation, provide successful examples of implementation and provide a technical resource library that allows for consultation upon completion of the workshops.

Many economies with APEC already have existing low level mandates for using ethanol, this demonstrates an engagement by economies in the region in ethanol and biofuel feed stock development.  However significant policy and infrastructure changes are still needed to expand these mandates.  The workshops and technical materials will demonstrate how this can be done in a successful and systematic manner.

The participants targeted in these seminars will be those policy makers who will be instrumental in developing their economies energy policy in the future, so the material presented will be extremely relevant in supporting their ongoing work ensuring an excellent opportunity for programmatic success.

Monitoring and Evaluation

At the completion of each workshop, the participants will participate in a discussion which evaluates the effectiveness of the materials presented, the speakers and makes recommendations for future material support that would help clarify the topics presented or address topics that are missing and need to be included in future workshops.

Upon completion of the project, a detailed assessment of the impact of the capacity building activities and the supporting materials will be conducted.  The purpose of the evaluation will be to measure the effectiveness of the programs and make recommendations of what additional programming is needed to support the efforts of APEC economies to develop a vibrant regional trading system in both ethanol and ethanol feed stocks.   As part of the assessment, participants in the workshops will be contacted and asked to participate in a detailed survey to gauge the effectiveness of the workshops and measure the impact that these workshops had in facilitating changes in the policy frameworks in the economies that participated in the workshops.

Performance indicators will include:

1) Existing policy on ethanol and biofuel feed stocks.

2) Proposed changes to existing renewable fuel policies and timeline for implementation.

3) The scope of use and distribution of existing technical materials.

4) Recommendations for future engagement to strengthen and enhance the technical expertise presented through these workshops to ensure that economy-specific concerns are addressed.

Linkages

This project will have linkages between the Agricultural Technical Cooperation Working Group and the Energy Working Group, especially as it relates to supply chain connectivity between agricultural producers and energy importers in the APEC region that are looking for low carbon solutions to their energy needs.  This project will also engage with other relevant groups outside of APEC including Sustainable Energy for All, which recently launched a sustainable bioenergy high-impact opportunity that includes Novozymes, Bloomberg, KLM, Boeing, RSB, Carbon War Room, FAO, UN Foundation, PANGEA, NEPAD, ICAO, Sky NRG, and the InterAmerican Development bank.  Under this high-impact opportunity, this group plans to facilitate development and deployment of sustainable bioenergy solutions to meet the global need for sustainable energy.  This is a voluntary partnership of likeminded stakeholders that seek to facilitate the development and deployment of sustainable bioenergy solutions to aid SE4ALL in reaching its goal of doubling the use of renewable energy.  All types of bioenergy projects are being promoted including cellulosic ethanol for transportation.

This project builds on the previous work of the APEC Expert Group on New and Renewable Energy Technologies.  Four-fifths of all APEC economies participated in this task force as members or observers.  The report of this task force found that biofuels can lower greenhouse gas emissions and recommended that biofuels production be advanced in line with sustainable development objectives.  Under the guidance of the biofuels task force, several workshops, projects and reports were completed that will help inform the work under this proposal.  Examples include a project on biofuel feedstock costs, technology and economics completed in 2008; a project on sustainable biofuel development practices and on strategies for developing biofuel transmission and distribution infrastructure completed in 2009; a project on biofuels and employment, including jobs created, which was done in 2010; a workshop on sustainable biofuel development practices conducted in 2010; a project on biofuel economics with cost comparisons of ethanol with conventional petroleum-based gasoline conducted in 2010; a project on sustainable biofuel development practices with detailed examples from APEC economies of planning and research, regulatory and policy initiatives, private and voluntary initiatives and monitoring efforts completed in 2010; and, a project on biofuel transportation and distribution infrastructure completed in 2011.

Sustainability

The US Department of Agriculture and US industry are actively engaged in promoting the use of renewable fuel sources such as ethanol and biofuel feed stocks.  As a result, the conclusions that come out of these initial workshops will be disseminated to encourage on an ongoing discussion between APEC economies on how they can proceed with future integration.

Likewise, numerous economies have ongoing ethanol programs which ensure that the technical data provided through these workshops will be followed closely and adopted by those economies.  The reality is that these workshops will catalyze and accelerate ongoing efforts by consolidating the information into one central location and providing a forum for regional discussion on how to proceed.

For those economies that express an interest in pursuing the development of programs to support ethanol development, non-APEC grants (governmental and industry) will be sought to promote the following activites that build on the progress made by the APEC grant.

1) Technical exchange teams between economies to explore the models outlined in the case studies and to encourage investment in ethanol production.

2) Economy to Economy exchange and technical training will be conducted to ensure harmonization of policies which allow for trade in ethanol and ethanol feedstocks among the interested economies.

Project Overseers

The Project Overseers are Laura Scandurra, Deputy Director, Global Policy Analysis Division, Foreign Agricultural Service, US Department of Agriculture and Kurt Shultz, Director of Global Strategies, US Grains Council.  The Foreign Agricultural Service (FAS) is the foreign affairs agency with primary responsibility for the United States Department of Agriculture's (USDA) overseas programs—market development, international trade agreements and negotiations, and the collection of statistics and market information. FAS also administers the USDA's export credit guarantee and food aid programs and helps increase income and food availability in developing nations by mobilizing expertise for agriculturally led economic growth.

The Global Policy Analysis Division has the lead responsibility within FAS for biofuels analysis, market development and policy support.  Laura has served as the Deputy Director for over two years.   Prior to that position, Laura served as the Director of the Agricultural Affairs Office at the U.S. Embassy in Beijing, China.  A Foreign Service Officer, Laura has over 20 years of experience working with FAS in Washington, DC, Europe, China, Japan and New Zealand.

The US Grains Council is a Co-operator organization with the US Department of Agriculture.  The US Grains Council promotes exports of US corn, barley, sorghum and their co-products, such as ethanol.  The Council has eight international offices located around the globe and works in cooperation with USDA on market development programs.  Kurt has been with the Council for fifteen years, serving eleven years in the Council’s Tunisia and Panama offices prior to returning to Washington as director for Global Strategies.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

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