Sustainable biomass-based and other low carbon fuels - a key component of the future energy system

Sustainable biomass and other low carbon fuels play an important role in the net zero transition as a flexible resource to replace fossil fuels. Biomass technologies also have the potential to generate negative emissions. However, stringent sustainability criteria are needed to guard against adverse impacts on a finite global supply and government will need to identify priority uses to provide investment certainty. More should also be done to encourage sustainable UK biomass production.

Government should publish its Biomass Strategy as soon as possible

347. Sustainable biomass plays a key role in the net zero transition of the energy sector, as a resource for the production of low carbon fuels, renewable electricity and hydrogen. As an input for deployment of bioenergy with carbon capture and storage it could also generate negative emissions in the future. In 2021, biomass provided the energy for about 13% of power,272 5% of road transport fuels273 and 7% of heating.274 Bioenergy Carbon Capture and Storage (BECCS) is an integral part of the Net Zero Strategy scenarios, providing the single largest source of negative emissionsxv required to offset residual emissions in 2050.xvi275 Biomass use in the power sector and BECCS are also covered in the sections on renewable electricity and CCS.

348. Sustainable biomass is considered a renewable low carbon energy source because the carbon it contains has only recently been removed from the atmosphere and can be regrown, in contrast to fossil fuels, where the carbon was sequestered millions of years ago. Key types of biomass currently in use include wastes and residues from food, agriculture, forestry and other processing operations as well as virgin food and feed crops.

349. Different types of biomass can be processed into a wide range of fuels (e.g. biofuels, biomethane, pellets) used across different parts of the economy, often as a direct replacement for fossil fuels. This also includes electricity production capacity - contributing a baseload complementing intermittent renewables - and hydrogen production, both possible with carbon capture and storage. The production of the different fuels may yield wider co-benefits and co-products. However, the production may also carry certain environmental risks.

350. Therefore, it is critical that any biomass adheres to a stringent set of sustainability criteria, to guard against unintended adverse impacts like land use change leading to deforestation, particularly as part of global supply chains. Availability of sustainable biomass is finite and the global transition to low carbon electricity and fuels will increase pressure on supply. Biomass is also expected to play a role in the decarbonisation of other sectors (such as in construction and chemicals) where it can be used as a raw material to displace fossil fuel inputs, for example bioplastics and biochemicals. Use of this resource will therefore need to be prioritised where limited alternatives are available. In some sectors this use will only be transitional.

351. The UK has an established industry, using both domestic and imported biomass, though the UK's use of bioenergy is growing faster than its supply from domestic sources,276 pointing to possible future increased dependence on other countries for this energy source. Domestic production of certain types of biomass (fast-growing trees and perennial grasses) will need to be significantly increased to secure the scale of land-based carbon sequestration necessary by 2050.xvii Done sustainably, this can potentially bring wider environmental benefits, but to manage competing demands on land and achieve domestic increases with multiple benefits, careful spatial planning is required.

352. To provide clarity as soon as possible, the Government should publish a Land Use Framework, alongside an analysis of incentives for land managers to grow biomass and a plan for how to improve those incentives. This needs to clearly set out how the public, private and local decision-makers can achieve the multiple goals for land use set out in the Net Zero Strategy, including increased biomass production (see Pillar 3 for a longer discussion of the Land Use Framework). There may also still be the potential to increase collection and use of wastes and residues, provided these are in line with the waste hierarchy and waste reduction targets. Land use implications and the fact that some biomass may be provided at lower prices by other countries will also need to be considered.

353. Apart from biomass, other waste sources such as the fossil fraction of mixed waste streams (for example unrecyclable plastics) or waste fossil gas as well as electricity (power-to-liquids) can be used in the production of low carbon fuels other than hydrogen. In particular in the aviation industry, there are currently several projects looking at so-called recycled carbon fuels. To ensure these fuels deliver carbon savings, it will be important to ensure that these adhere to waste hierarchy principles and potential reduction in waste streams is considered.

354. The Review heard from industry representatives that there are significant growth opportunities for biomass and other low carbon fuels across different sectors, including BECCS, industrial applications including biorefineries and biochemicals, hydrogen, heat and transport fuels. In regards to the latter, many respondents highlighted the economic opportunity sustainable aviation fuels (SAF) could play for the UK, provided the UK can establish production sites early (see also transport section in Pillar 3).

355. Respondents to the Review highlighted that many of the production sites are dispersed across the country and, for example in case of liquid fuels, often in areas in need of regeneration close to former and existing refineries. Many respondents also highlighted that the UK's leading role in establishing the regulatory framework and rigorous sustainability criteria also provides a competitive edge in terms of influencing international regulation and economic opportunities for services and goods.

356. However, businesses also highlighted the need for clear policies, including an understanding of the priority use order for different biomass uses. They also urged for the Government to deliver on related reforms on waste (ensuring for example a separate collection of different waste streams) as well as on sector-specific policies, for example a SAF mandate (see Pillar 3). In particular in the heat sector, businesses highlighted the need for a clearer vision from government what role different technologies may play in the transition to net zero.

357. Stakeholders also commented on the need to receive early indication on what is to follow on from support schemes coming to an end, such as the Green Gas Schemes in 2025. Given competition across sectors, some stakeholders also pointed out the need to avoid competition between support schemes.




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xv Various Whole System Energy models reviewed here (UK TIMES, ESME, CCC modelling) show the need for BECCS technologies to deliver well over half (and often close to 70%) of negative emissions from engineered greenhouse gas removals, as well as at least a third of all sequestered emissions (including nature-based removals).

xvi Mostly from agriculture, aviation and industry.

xvii According to all scenarios modelled in the Net Zero Strategy and other reviewed Whole Energy System models.