DnV SErVIng THE EnErgy InDUSTry bioenergy
the power of SuStainable bioenerGy
02 I energy I bioenergy I
DNV GLOBAL SERVICES Safety, health and environmental risk management Enterprise risk management ■■ Asset risk management ■■ Technology qualification
© Getty Images
Verification Ship classification
I bioenergy I EnErgy I 03
CONtENtS 04 Sustainability of biomass production 04 3rd party services 06 getting it right 06 Decision support
08 08 10 12
The complete picture Technical and performance services Value chain Why DnV?
Bioenergy is an important part of the renewable energy picture and could sustainably contribute between 25% and 33% to the future global primary energy supply. Bioenergy includes biofuels (bioethanol, biodiesel), biogas and biomass used for heat and power production. Bioenergy can contribute to energy security, improve trade balances, provide opportunities for social and economic development in rural communities, and improve resource management. Bioenergy has challenges such as competition for land and raw materials, logistics and infrastructure issues, and the need for better conversion technologies. Policy makers, investors and the public at large will need to be confident that bioenergy development is sustainable. DnV can provide services that ensure sustainability throughout the entire bioenergy value chain.
the power of SuStainable enerGy
04 I energy I bioenergy I
Sustainability of biomass production Stakeholders demand proof of sustainability of biomass production including: ■■ No production from high biodiversity or high carbon stocks land areas
Social sustainability GHG savings ■■ Assured traceability and/or mass balance ■■ ■■
Sustainable biomass production
3rd party services Certification
Carbon credit validation and verification
Chain of Custody (CoC) ■■ Forest Stewardship Council (FSC) ■■ Sustainable agriculture/fisheries: – GlobalGAP, Marine Stewardship Council (MSC) ■■ EU biofuel compliance verification ■■ Integrated biofuel process verification and management system certification (ISO 9001, ISO 14001, ISO 22000) ■■ EU approved voluntary biofuel schemes ■■ ProSustain- product sustainability
Clean Development Mechanism (CDM) Joint Implementation Scheme ■■ Emissions trading ■■ Voluntary emission reduction ■■ Gold Standard ■■ Verification of Green House Gas (GHG) inventory/ calculation ■■
ÂŠ Photocredit ÂŠ Getty Images
I bioenergy I energy I 05
06 I energy I bioenergy I
Investment Risk: Getting it right ■■
New projects and new technologies bring new risks as well as new opportunities
Investors should effectively consider all financial risks and opportunities in a new and uncertain business environment
Sustainability risks related to environmental and social performance of all low carbon investment projects, including bioenergy, are of particular importance to assess
Risk assessments related to changing policies, new technologies and changing market conditions may need to utilise new methods, tools and partners to ensure a complete risk picture
Strong governance within key areas is needed to secure that investments are sustainable and financial performance is achieved as planned
Decision support DNV is a world leader in managing the risk of capital investments in a variety of industries. We contribute to improved investment decisions by providing a better understanding of the risks, and support to choose the best risk mitigation measures. Due diligence services – Technical – Project – Process
Corporate responsibility services – Corporate Responsibility Risk Management – Sustainability Reporting – Ethical Supply Chain Management – Corporate Integrity Profile – Corporate Governance
Value chain assessment – allows all relevant uncertainties along the value chain to be considered and supports business-critical investment decisions
Climate change services – Policy – Technology – Physical impact
ÂŠ Getty Images
I bioenergy I energy I 07
08 I energy I bioenergy I
The complete picture ■■
The industry needs a flexible framework for managing the safety and business risks associated current and future bioenergy transportation infrastructure
Bioenergy production involves the development of technology. Developers have to build the operator’s and other stakeholder’s confidence in the technology
The material integrity issues of assets vary significantly for different bioenergy types
Production of bioenergy needs to be in a safe environment
Technical and performance services Bioenergy infrastructure – Pipelines – Transport
Technology qualification – providing the evidence that the technology will function within specific limits with an acceptable level of confidence
Safety, health, and environmental (SHE) performance programs
I bioenergy I energy I 09
10 I energy I bioenergy I
Managing risk throughout the value chain The sustainability of all bioenergy starts at the source; be it agricultural, forestry, water or waste based. Market access can depend on being able to demonstrate environmental, social and financial viability. Bioenergy value chains can be very complex and managing the risks can require teams with a wide range of competencies. DNV can provide teams with the competence needed to manage a wide range of risks throughout the entire bioenergy value chain.
Key areas of competence include: ■■ Sustainability of primary production ■■ Environmental evaluation ■■ Capital and operating cost assessment ■■ Project risk ■■ Business continuity planning ■■ Process safety ■■ Governance, risk management and compliance ■■ Corporate responsibility ■■ Supply chain risks/Supplier evaluation ■■ Energy efficiency ■■ GHG calculation/verification ■■ Life Cycle assessments ■■ Traceability/CoC ■■ Carbon capture and storage (CCS) Offering a comprehensive range of advisory, certification, training and technical services, DNV helps businesses manage the risks in their own operations and along the entire bioenergy value chain.
ÂŠ Coor Service Management/graphic services
I bioenergy I EnErgy I 11
12 I energy I bioenergy I
why DNV? ■■
DNV is an international foundation, established in 1864, with the primary objective to safeguard life, property, and the environment.
DNV is a market leader in third party certification and assessment services with a global reputation for excellence. We operate from more than 300 offices worldwide; our employees speak your language and know your local needs, customs, and markets.
We have personnel with broad greenhouse gas verification, certification, and specific industry knowledge and experience.
We have developed robust, risk-based assessment systems combining all facets of sustainability in addition to technical and process expertise .
DNV is accredited by the UNFCCC (the United Nations Framework Convention for Climate Change) as Designated Operating Entity (DOE) under the Clean Development Mechanism (CDM). We were the first DOE accredited for the verification of all major CDM scopes.
We are an approved certifier under the California Climate Action Registry and the Chicago Climate Exchange in the US.
ÂŠ Getty Images
I bioenergy I energy I 13
14 I EnErgy I bioenergy I
dnv Global ServiceS Safety, health and environmental risk management ■■ Enterprise risk management ■■ Asset risk management ■■ Technology qualification ■■ Verification ■■
I bioenergy I EnErgy I 15
main worldwide officeS oSlo Veritasveien 1 nO-1322 HĂ¸vik
HouSTon 1400 ravello Dr Katy, TX 77449
ItALY Centro Direzionale ColleoniPalazzo Sirio 2, Viale Colleoni 920041 Agrate Brianza (MI) Italy Milano (CC services)
london Palace House 3 Cathedral Street London SE19DE
rIo rua Sete de Setembro, 111/12 Floor 20050006 rio de Janeiro kuala lumper 24th Floor, Menara WeldJalan raja Chulan 50200 Kuala Lumpur
CHIna (CC&eS) 7/F, East Tower Prosper Centre, no. 5 guang Hua road, Chaoyang District, Beijing 100020
deT norSke verITaS nO-1322 HĂ¸vik, norway i Tel: +47 67 57 99 00 i Fax: +47 67 57 99 11 www.dnv.com
THIS IS dnv DnV is a global provider of services for managing risk, helping customers to safely and responsibly improve their business performance. Our core competence is to identify. assess and advise on risk management. DnV is an independent foundation with presence in more than 100 countries.
ÂŠ Det norske Veritas AS. Design and layout: Coor Service Management/graphic Services 1102-076. Front cover: getty Images