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Production of Biofuels for transport in Colombia:
An assessment through sustainability tools
Carlos Ariel Ramírez Triana

(BSc Economics, MSc Economics, PhD Candidate in Management)
Supervisor: Professor John Mathews
Macquarie University
Macquarie Graduate School of Management
MGSM
August, 2014
TABLE OF CONTENTS
List of tables ..................................................................................................................................... 6
List of figures .................................................................................................................................... 8
Glossary .......................................................................................................................................... 12
Abstract .......................................................................................................................................... 16
Thesis statement ............................................................................................................................ 17
Acknowledgments.......................................................................................................................... 19
1. INTRODUCTORY CHAPTER: BIOENERGY, SUSTAINABILITY AND COLOMBIA ...................... 20
1.1 Bioenergy and sustainability: general overview ............................................................ 22
1.1.1 Bioenergy situation in the global energy scenario........................................................ 22
1.1.2 Bioenergy/biofuels production ..................................................................................... 26
1.1.2.1 Types of biofuels (by natural physical state) ......................................................... 27
1.1.2.2 Types of biofuels (by technology generation) ....................................................... 30
1.2 Sustainable Development and energy ........................................................................... 32
1.2.2 Biomass production and sustainability .................................................................. 33
1.3 Life Cycle assessment (LCA) importance........................................................................ 34
1.4 Colombia: country, energy needs, and bioenergy industry ........................................... 35
1.4.1 General Information .............................................................................................. 35
1.4.2 Energy Information ................................................................................................ 39
1.4.3 Biofuels in Colombia .............................................................................................. 41
1.5 Conclusions and general comments .............................................................................. 52
2 BIOFUELS IN THE WORLD AND THE LATIN AMERICA (LAC) REGION ................................... 55
2.4 Policies and regulation for biofuels implementation at a global level .......................... 55
2.4.1 Main regulations .................................................................................................... 56
2.4.2 Trends in biofuel policies and regulation in Latin American and Caribbean
countries 60
2.4.3 International trade protocols ................................................................................. 74
2.4.4 Conclusions ............................................................................................................ 77
3. ENVIRONMENTAL PROBLEMS IN COLOMBIA AND THEIR RELATIONSHIP WITH BIOENERGY
PRODUCTION ................................................................................................................................. 82
3.1 Loss of biodiversity and ecosystem base ....................................................................... 83
3.1.1 Geographic biodiversity ......................................................................................... 84
3.1.2 Issues related with ecosystem diversity ................................................................ 85
3.1.3 Diversity of species and their problems ................................................................. 86
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3.2 Land: degradation, pollution and inappropriate use ..................................................... 87
3.2.2 Conflict over land use ............................................................................................. 88
3.2.3 Land degradation.................................................................................................... 91
3.2.4 Soil contamination.................................................................................................. 92
3.3 Water pollution and inappropriate use.......................................................................... 94
3.3.2 Water supply: related issues .................................................................................. 94
3.3.3 Water demand: related issues ............................................................................... 96
3.3.4 Water pollution in Colombia .................................................................................. 97
3.4 Air pollution .................................................................................................................... 97
3.4.2 Air pollution in the World and in Colombia............................................................ 97
3.4.3 Sources of air pollution and affected sectors in Colombia..................................... 99
3.4.4 Consequences of air pollution in Colombia .......................................................... 100
3.4.5 Air management in Colombia and their problems ............................................... 101
3.5 Climate change and climate variability ........................................................................ 102
3.5.2 Climate change and climate variability ................................................................ 102
3.5.3 Causes and forces of the Climate Change in Colombia and in the World ............ 103
3.5.4 Effects and consequences of climate change in the World and Colombia .......... 104
3.5.5 Policy actions to tackle CC in the World and Colombia and their main obstacles
105
3.6 Deterioration of the environmental quality of the human habitat.............................. 107
3.7 Conclusions ................................................................................................................... 108
4 BIOFUEL COSTS AND PRICE FORMATION ............................................................................ 109
4.1 Biofuel production costs............................................................................................... 109
4.1.2 Palm oil biodiesel cost .......................................................................................... 109
4.1.3 Sugarcane-based ethanol ..................................................................................... 114
4.2 Conclusions ................................................................................................................... 120
5 BIOFUEL VALUE CHAINS AND CONTRACTUAL RELATIONSHIPS ......................................... 122
5.1 Feedstock production and commercialization ............................................................. 122
5.1.2 Land Use in Colombia and its relationship with bioenergy .................................. 122
5.1.3 Production of palm oil .......................................................................................... 125
5.1.4 Sugarcane production .......................................................................................... 130
5.2 Agro-industrial transformations of feedstock .............................................................. 139
5.2.2 Transformation of palm fruit into crude vegetable oil......................................... 139
5.2.3 Transformation of crude palm oil into biodiesel .................................................. 143
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5.2.4 Transformation of sugarcane and its apparent consumption ............................. 143
5.2.5 Transformation of sugarcane into ethanol .......................................................... 147
5.3 Distribution and commercialization............................................................................. 148
5.4 The consumer sector.................................................................................................... 149
5.4.2 Projected consumption of biodiesel .................................................................... 149
5.4.3 Projected ethanol consumption .......................................................................... 151
5.4.4 Current biofuel consumption ............................................................................... 154
6 LIFE CYCLE ANALYSIS - ENVIRONMENTAL STUDY............................................................... 155
6.1 Goal .............................................................................................................................. 155
6.2 Methodology of LCA .................................................................................................... 155
6.2.2 Scope .................................................................................................................... 156
6.2.3 Information for the inventory .............................................................................. 160
6.2.4 Assessment of the environmental impact ........................................................... 166
6.2.5 Interpretation....................................................................................................... 167
6.2.6 Limitations of the study ....................................................................................... 168
6.3 Inventory analysis ........................................................................................................ 169
6.3.1 Sugarcane crop..................................................................................................... 169
6.3.2 Sugarcane processing plant (ingenio) and ethanol production ........................... 191
6.3.3 Palm oil crop cultivation ...................................................................................... 215
6.3.4 Palm oil extraction and production of biodiesel .................................................. 229
6.3.5 Transport to the service station ........................................................................... 242
6.3.6 Transport of palm oil Biodiesel to California ....................................................... 244
6.3.7 Use of fuels in vehicles ......................................................................................... 245
6.3.8 Fossil fuels ............................................................................................................ 247
6.3.9 Electricity production ........................................................................................... 254
6.4 Impacts Evaluation ....................................................................................................... 255
6.4.1 Fossil fuels ............................................................................................................ 256
6.4.2 Sugarcane-based ethanol..................................................................................... 259
6.4.3 Palm oil biodiesel ................................................................................................. 263
6.4.4 Indirect land use changes (iLUC) .......................................................................... 268
6.4.5 Blending options and exports to California ......................................................... 271
6.4.6 Comparison of Colombian biofuels with some other biofuels ............................ 272
6.5 Discussion and conclusions .......................................................................................... 275
6.5.1 Sugarcane-based ethanol..................................................................................... 276
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6.5.2 Palm oil biodiesel.................................................................................................. 280
6.5.3 Final conclusions................................................................................................... 284
7 EXPANSION POTENTIAL ....................................................................................................... 287
7.1 Aim of the study ........................................................................................................... 287
7.2 Methodology ................................................................................................................ 289
7.2.1 Conceptual framework ......................................................................................... 289
7.2.2 Scope .................................................................................................................... 290
7.2.3 Limitations of this study ....................................................................................... 290
7.3 Biophysical aptitude ..................................................................................................... 291
7.3.1 Climatic factors ..................................................................................................... 295
7.3.2 Agronomic factors ................................................................................................ 302
7.3.3 Agronomic suitability ............................................................................................ 314
7.3.4 Biophysical aptitude ............................................................................................. 316
7.3.5 Potential productivity ........................................................................................... 322
7.4 Legal restrictions .......................................................................................................... 325
7.5 Ecologic limitations....................................................................................................... 328
7.5.1 Greenhouse gases (GHG’s) emissions .................................................................. 328
7.5.2 Water shortage ..................................................................................................... 359
7.5.3 Biodiversity ........................................................................................................... 362
7.6 Socio-economic criteria ................................................................................................ 366
7.6.1 Access to processing facilities .............................................................................. 366
7.6.2 Access to markets ................................................................................................. 367
7.6.3 Access to road network ........................................................................................ 369
7.6.4 Safety .................................................................................................................... 371
7.6.5 Food security ........................................................................................................ 372
7.7 Discussion and final remarks ........................................................................................ 374
7.7.1 Palm oil ................................................................................................................. 375
7.7.2 Sugar cane ............................................................................................................ 382
7.7.3 Stakeholders’ engagement: contrast between the expansion potential in this
study and former plans ........................................................................................................ 388
7.7.4 Conclusion ............................................................................................................ 390
8 GENERAL CONCLUSIONS ...................................................................................................... 392
References .................................................................................................................................... 400
Appendices ................................................................................................................................... 419
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LIST OF TABLES
Table 1 Colombian Population Distribution Estimated for 2006 and 2013 ............................ 36
Table 2 Colombia Land distribution 2006 and 2011................................................................ 37
Table 3 South American socioeconomic facts ......................................................................... 37
Table 4 Differences between Brazilian and Colombian ethanol industries ............................ 48
Table 5 Biofuels domestic policies for USA, EU and LAC region.............................................. 79
Table 6 Current and forecasted land use in Colombia .......................................................... 123
Table 7 Sugarcane trade statistics for Colombia ................................................................... 146
Table 8 Palm oil demand for biodiesel production ............................................................... 150
Table 9 Ethanol production in Colombia ............................................................................... 151
Table 10 Sugarcane demand for bioethanol production ...................................................... 152
Table 11 Emissions of NH3 - Mineral fertilizers .................................................................... 163
Table 12 Ethanol producing companies in Colombia ............................................................ 171
Table 13 Selection of agro-ecological zones ......................................................................... 171
Table 14 Identification of specific location (for ethanol production) ................................... 172
Table 15 General information on the studied location (for ethanol production) ................. 172
Table 16 Area and weighting factor within the selected studied locations .......................... 173
Table 17 Sugarcane crop cycle (Cauca Valley River) ............................................................. 175
Table 18 Sugarcane Collection method within de geographic Valley of Cauca River ........... 176
Table 19 Fertilizer application in studied locations (kg / ha / y) ........................................... 180
Table 20 Recommended dose of fertilizers for sugarcane crops .......................................... 181
Table 21 Pesticides application per year and hectare........................................................... 182
Table 22 Water requirements for sugarcane using different irrigation systems .................. 184
Table 23 Energy requirement for land preparation .............................................................. 186
Table 24 Energy consumption of the mechanic and manual harvesting process ................. 188
Table 25 Transformation of the Land use and occupation of the sugarcane ....................... 189
Table 26 Emissions to the atmosphere from the burning process ....................................... 190
Table 27 Emission to the atmosphere from fertilizers application ....................................... 190
Table 28 Ethanol plants in Colombia 2009 ............................................................................ 191
Table 29 Weighted average of production of different ethanol production companies ...... 192
Table 30 Mass flows and technologies for sugar and ethanol plants in Colombia ............... 193
Table 31 Material and energy consumption of the sugar processing Factory ...................... 195
Table 32 Properties of bagasse and charcoal ........................................................................ 197
Table 33 Summary of cogeneration processes of the different companies ......................... 198
Table 34 Infrastructure of the sugar mill, furnace and turbine............................................. 199
Table 35 Products and residuals from the sugar plant.......................................................... 200
Table 36 Residuals from sugarcane ....................................................................................... 202
Table 37 Inputs and energy employed in the ethanol elaboration process ......................... 203
Table 38 Transportation distances for ethanol production .................................................. 205
Table 39 Products, by-products, and residuals from the ethanol process............................ 206
Table 40 Allocation factors for the ethanol production (Average scenario) ......................... 211
Table 41 Allocation factors for the ethanol production (Optimized scenario) ..................... 212
Table 42 Economic value of the products of the sugar refinery and ethanol plant.............. 213
Table 43 Energy value of of the sugar refinery and ethanol plant ........................................ 215
Table 44 Palm oil plantation and sampling areas (East, North and Central regions) ............ 218
Table 45 Annual yields of production per zone..................................................................... 220
Table 46 Inputs of mineral fertilizers for the different palm oil plantation zones ................ 222
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Table 47 Nutrients composition in palm oil fruit residues in both wet and dry weights ...... 223
Table 48 Fertilizers inputs in kg/ha/y for different cultivation areas .................................... 223
Table 49 Fuel consumption of the different palm oil plantation areas ................................. 225
Table 50LUC Parameters for different palm oil plantations .................................................. 227
Table 51 Emissions to the atmosphere due to fertilizer application ..................................... 228
Table 52 Water dumping by use of fertilizers ........................................................................ 229
Table 53 Biodiesel plants and installed capacity ................................................................... 230
Table 54 Average weight of the different palm oil producing companies ............................ 230
Table 55 Inputs and energy requirements............................................................................. 233
Table 56 Outputs from oil extraction of 100 tons of FFB (ton).............................................. 233
Table 57 Properties of the FFB, fiber and shells .................................................................... 234
Table 58 Process Infrastructure of the Palm oil mill plant..................................................... 235
Table 59 Processes description of palm oil refining and biodiesel processing ...................... 236
Table 60 Inputs and energy requirements of a palm oil refinery .......................................... 237
Table 61 Inputs and energy requirements for the biodiesel plant ........................................ 237
Table 62 Outputs from the refining oil plant per 1 ton of oil ................................................ 238
Table 63 Outputs from the transesterification process per 1 ton of palm oil biodiesel ....... 238
Table 64 Transportation distances for palm oil refining and transesterification .................. 239
Table 65 Economic Value of those by-products from Fresh fruit bunches ........................... 242
Table 66 Energy Value of those by-products from Fresh Fruit Bunches ............................... 242
Table 67 Fossil fuels production in Colombia ........................................................................ 248
Table 68 Colombian crude reserves and oil production ........................................................ 249
Table 69 Fuel specification regarding Ecopetrol study .......................................................... 251
Table 70 Crude oil composition from California .................................................................... 253
Table 71 Electricity matrix for Colombia................................................................................ 254
Table 72 Emission factors for generation and transmission of electricity............................. 255
Table 73 Comparison of CO2 emissions from fossil fuels from different studies.................. 257
Table 74 GHG's emission potential. Different scenarios of sugarcane-based ethanol ......... 277
Table 75 GHG's emission potential. Different scenarios of palm oil-based biodiesel .......... 281
Table 76 Types of soil suitability defined by FAO .................................................................. 294
Table 77 Precipitation amount and relationship with the suitability categories .................. 296
Table 78 Temperature suitability across Colombia ............................................................... 298
Table 79 Matrix to determine climatic suitability. ................................................................. 300
Table 80 Flooding - Crop specific classification ..................................................................... 303
Table 81 Soil erosion - Crop specific classification................................................................. 305
Table 82 Soil depth - Crop specific classification ................................................................... 307
Table 83 Soil fertility - Crop specific classification ................................................................. 309
Table 84 Natural drainage - Crop specific classification ........................................................ 311
Table 85 Slope - Crop specific classification .......................................................................... 313
Table 86 Matrix to determine agronomic aptitude ............................................................... 315
Table 87 Matrix to determine agronomic aptitude (including slope) ................................... 315
Table 88 Matrix to determine biophysical aptitude .............................................................. 316
Table 89 Sugarcane: annual yield assumed per every type of suitability .............................. 323
Table 90 Palm oil yield assumed per every type of altitude .................................................. 325
Table 91 Distribution of the carbon reserves above and below ground for Palm Oil ........... 336
Table 92 By-default values for the GIS calculation ................................................................ 352
Table 93 Classification of hydric stress .................................................................................. 360
Table 94 Restriction levels for areas of priority preservation according to SINAP ................ 363
Table 95 Residuals to the ground by pesticides and fertilizer application ............................ 430
Table 96 Quantity of treated water and methane emissions ................................................ 442
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LIST OF FIGURES
Figure 1 World renewable energy consumption ..................................................................... 23
Figure 2 World renewable energy consumption by source .................................................... 24
Figure 3 World Biomass energy consumption by sector ......................................................... 25
Figure 4 Route from biomass to biofuels ................................................................................ 28
Figure 5 Colombia’s Oil production and consumption ............................................................ 40
Figure 6 Colombia’s Coal production and consumption ......................................................... 41
Figure 7 Land indicators of selected Comodities .................................................................... 45
Figure 8 Production of selected Commodities in Colombia .................................................... 46
Figure 9 Yield of selected commodities in Colombia .............................................................. 47
Figure 10 Evolution of land use in Colombia ........................................................................... 86
Figure 11 Land use in Colombia 2002...................................................................................... 88
Figure 12 Land use in Colombia for Livestock growing purposes ........................................... 89
Figure 13 Palm oil production cost composition ................................................................... 111
Figure 14 Average Conformation of palm oil production costs ............................................ 112
Figure 15 Production cost composition for a barrel of ethanol in different countries ......... 115
Figure 16 Sugarcane production in Colombia ....................................................................... 133
Figure 17 Sugar exports in Colombia..................................................................................... 144
Figure 18 Sugar domestic consumption in Colombia and international price influence ...... 145
Figure 19 Distribution and commercialization chains ........................................................... 149
Figure 20 Four key stages in a LCA, according ISO 14040 ..................................................... 155
Figure 21 Studied areas for sugarcane and palm trees 2010 ................................................ 157
Figure 22 General overview of compared systems: Bioenergy and fossil energy................. 158
Figure 23 Inventory data sources for specific processes....................................................... 161
Figure 24 Illustration of the indirect land use change (iLUC) ................................................ 165
Figure 25 Geographic location of the sugarcane plantation area ......................................... 169
Figure 26 Sugarcane crop cycle ............................................................................................ 174
Figure 27 Sugarcane yield and sugar yield ............................................................................ 177
Figure 28 Sugarcane yield for the assessed plantation sites ................................................ 178
Figure 29 Sugarcane inventory overview .............................................................................. 178
Figure 30 Precipitation, Evaporation , in the Geographic valley of Cauca River ................... 183
Figure 31 Irrigation channel in sugarcane plantations .......................................................... 185
Figure 32 Machinery and equipment used for land preparation .......................................... 186
Figure 33 Green manual harvest. Loading of cut sugarcane after pre-harvest burning. ...... 187
Figure 34 Illustration of ethanol production process in Colombia........................................ 192
Figure 35 Sugarcane transformation process........................................................................ 195
Figure 36 Illustration of the co-generation system applied within sugar mill facilities ........ 197
Figure 37 Summary of the sugarcane-based ethanol manufacture process ........................ 203
Figure 38 Residual Waters treatment. .................................................................................. 207
Figure 39 Illustration of compost general process. ............................................................... 209
Figure 40 Mass flow of processing 100 tons of sugarcane for ethanol production. ............. 210
Figure 41 Prices of refined and white sugar. ......................................................................... 214
Figure 42 Palm plantations in Colombia................................................................................ 216
Figure 43 Main cultivation zones for palm oil in Colombia 2008 .......................................... 217
Figure 44 Palm tree. Different ages ...................................................................................... 219
Figure 45 Palm productivity in the study locations ............................................................... 220
Figure 46 Chart on palm oil inventory process ..................................................................... 221
Figure 47 From collecting task up to loading in trucks (palm oil) ......................................... 224
Figure 48 Transportation methods (palm oil) ....................................................................... 224
Figure 49 Transformation of land due to palm plantations (2000-2008) ............................. 226
Figure 50 Biodiesel production process ................................................................................ 231
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Figure 51 System characterization for palm oil extraction .................................................... 232
Figure 52 System characterization for palm oil refining process........................................... 236
Figure 53 Mass flow for biodiesel production (per every 100 tons FFB) ............................... 241
Figure 54 Distance from Buenaventura port to Los Angeles ................................................. 244
Figure 55 Distance from Santa Marta to Los Angeles ............................................................ 244
Figure 56 Chart of the LCA for fossil fuels.............................................................................. 247
Figure 57 Loads to refinery and Barrancabermeja refining plant .......................................... 250
Figure 58 Sulphur content for Diesel (Colombia) .................................................................. 251
Figure 59 Crude oil supply to Californian refineries .............................................................. 253
Figure 60 GHG emissions for fossil fuels per MJ of fuel ........................................................ 256
Figure 61 GHG emissions for fossil fuels per v.km ................................................................. 258
Figure 62 Cumulative non-renewable energy demand per MJ of fossil fuel ......................... 258
Figure 63 Cumulative non-renewable energy demand per v.km .......................................... 259
Figure 64 Global warming potential of sugarcane ethanol in CO2 eq v.km .......................... 259
Figure 65 Global warming potential of sugarcane ethanol per MJ of fuel ............................ 260
Figure 66 Global warming potential for sugar crop in CO2 eq per Kg of sugarcane ............. 260
Figure 67 Global warming potential for sugar processing divided by process ...................... 261
Figure 68 Sensitivity analysis of the allocation method for ethanol ..................................... 262
Figure 69 CED of sugarcane ethanol in MJ of non-renewable energy per MJ of fuel ........... 263
Figure 70 CED of sugarcane ethanol in MJ of non-renewable energy per v.km.................... 263
Figure 71 GWP for palm oil biodiesel in CO2 eq per v.km ..................................................... 264
Figure 72 GWP for palm oil biodiesel by process in g of CO2 eq per MJ of fuel.................... 264
Figure 73 GWP for palm oil biodiesel in kg CO2 eq per kg of Fresh Fruit Bunch ................... 265
Figure 74 GWP for palm oil biodiesel divided by process...................................................... 265
Figure 75 GWP for average and optimized scenarios in comparison with fossil fuels .......... 266
Figure 76 Sensitivity analysis of the allocation method for palm oil biodiesel ..................... 267
Figure 77 CED for palm oil biodiesel in MJ of non-renewable energy per MJ of fuel ........... 268
Figure 78 CED for palm oil biodiesel in MJ of non-renewable energy per v.km.................... 268
Figure 79 Potential effects of iLUC caused by palm crops in Colombia................................. 269
Figure 80 Potential effects of iLUC caused by sugarcane crops in Colombia ........................ 270
Figure 81 GWP for Ethanol .................................................................................................... 271
Figure 82 GWP for biodiesel .................................................................................................. 272
Figure 83 GWP of Colombian biofuels in comparison with other biofuels value chains ....... 274
Figure 84 GWP of Colombian sugarcane based ethanol........................................................ 278
Figure 85 GWP of Colombian palm oil based biodiesel ......................................................... 282
Figure 86 Existing sugarcane crops and palm oil crops in Colombia in the year 2008 .......... 288
Figure 87 General overview of the Geographic Information system GIS .............................. 289
Figure 88 Exclusion of zones regarding altitude, urban areas, and bodies of water. ............ 292
Figure 89 General overview on employed biophysical criteria ............................................. 293
Figure 90 Precipitation suitability map. ................................................................................. 297
Figure 91 Temperature suitability map. ................................................................................ 299
Figure 92 Daily solar radiation, relative humidity, and wind speed ...................................... 300
Figure 93 Climate conditions suitability map......................................................................... 301
Figure 94 Flooding suitability map. ........................................................................................ 304
Figure 95 Soil erosion suitability map .................................................................................... 306
Figure 96 Soil depth suitability map. ..................................................................................... 308
Figure 97 Soil fertility suitability map .................................................................................... 310
Figure 98 Drainage suitability map ........................................................................................ 312
Figure 99 Drainage suitability map ........................................................................................ 314
Figure 100 Agronomic suitability map ................................................................................... 316
Figure 101 Biophysical factor suitability map for Palm oil crops. .......................................... 317
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Figure 102. Detailed biophysical suitability map................................................................... 318
Figure 103 FAO suitability map for palm oil crops ................................................................ 319
Figure 104 Biophysical factor suitability map for Sugarcane ................................................ 320
Figure 105 FAO suitability map for sugarcane crops ............................................................. 321
Figure 106. Annual yields of sugarcane spotted in the sampled sites .................................. 323
Figure 107 Annual yields of Palm Oil in Colombia. (E) East (N) North (Center). ................... 324
Figure 108 Map of legal restrictions ...................................................................................... 326
Figure 109 Forest ecosystems protected by the law............................................................. 327
Figure 110 Concept for modeling a GHG’s emissions map. .................................................. 329
Figure 111 Soil carbon reserves ............................................................................................ 330
Figure 112 Assessing model for calculating GHG’s emissions due to LUC ............................ 331
Figure 113 LUC from natural forest and agricultural land biofuel crops (palm) ................... 332
Figure 114 Process to evaluate biomass carbon reserve for the reference use soil. ............ 333
Figure 115 Map of reclassification of eco-zones and Map of land use ................................ 333
Figure 116 Total carbon biomass of the reference land use (in tons of carbon per ha) ....... 335
Figure 117 Cumulated biomass of palm oil (left) and sugarcane (right). .............................. 336
Figure 118 Process to evaluate biomass carbon reserve for the crops for bioenergy .......... 336
Figure 119 Development of a simulated plant for the AGB of sugarcane in Brazil ............... 337
Figure 120 Ratio Stem-root (based on dry weight) for sugarcane planted in pot. ............... 338
Figure 121 Potential change in the biomass reserves ........................................................... 339
Figure 122 Assessment method for the change in Soil organic carbon ................................ 340
Figure 123 Map of carbon reserve of a reference natural system ........................................ 342
Figure 124 Relative Change factors of reserves (left) and SOC0 for Colombia ..................... 344
Figure 125 SOCt after land use change to palm (left) and sugarcane (right). ....................... 345
Figure 126 SOC Change after turning the reference soil into palm oil crops ........................ 346
Figure 127 SOC Change after turning the reference soil into sugarcane crops .................... 347
Figure 128 Change in the carbon reserve due to LUC from current use ............................... 348
Figure 129 Change in carbon reserve due to current land use change to palm oil crops..... 349
Figure 130 Change in carbon reserve due to current land use change to sugarcane crops . 350
Figure 131 Relative GHG’s emissions for palm oil-based biodiesel ...................................... 353
Figure 132 Relative GHG’s emissions for sugarcane-based ethanol ..................................... 354
Figure 133 Carbon debt of palm oil-based biodiesel produced in Colombia [years]. ........... 356
Figure 134 Carbon debt of sugarcane-based ethanol produced in Colombia [years]. ......... 357
Figure 135 Kg of CO2 emitted per vehicle per km. ............................................................... 359
Figure 136 Hydric stress in Colombia .................................................................................... 360
Figure 137 Comparative Hydric stress Map for Colombia..................................................... 361
Figure 138 Water use index in Colombia for a dry year. ....................................................... 362
Figure 139 Priority conservation areas according to SINAP guidelines................................. 364
Figure 140 Colombian forest areas. ...................................................................................... 365
Figure 141 Summary of the socio-economic factor taken into consideration ...................... 366
Figure 142 Access to processing facilities. ............................................................................ 367
Figure 143 Access to markets ................................................................................................ 368
Figure 144 Access to main terrestrial roads and rivers. ........................................................ 370
Figure 145 Map of public security risk in Colombia .............................................................. 371
Figure 146 Map of current agricultural production .............................................................. 373
Figure 147 Palm oil suitability (1) .......................................................................................... 375
Figure 151 Zones with different suitability for palm oil plantations in Colombia (1) ........... 380
Figure 152 Zones with different suitability for palm oil plantations in Colombia (2) ........... 381
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Figure 153 Sugarcane suitability (1)....................................................................................... 382
Figure 157 Zones with different suitability for sugarcane plantation in Colombia (1). ......... 386
Figure 158 Zones with different suitability for sugarcane plantations in Colombia (2) ........ 387
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Glossary
Accronym English Name Original Name (Where applies)
1GBf Fist Generation Biofuels
2GBf Second Generation Biofuels
3GBf Third Generation Biofuels
4GBf Fourth Generation Biofuels
Colombian academy for physics and natural Academia Colombiana de Ciencias
ACCEFYN
sciences Exactas, Físicas y Naturales
ACPM Oil fuel for engines Aceite Combustible para motor
Adminsitración Nacional de
ANCAP Fuel, Alcohol and Cement National Bureau
Combustibles, Alcohol y Pórtland
Asociación de Cultivadores de Caña
ASOCAÑA Colombian Sugarcane Growers Association
de Azúcar de Colombia
B100 Neat bioethanol
BOD Biochemical Oxygen Demand
BOD Biochemical Oxygen Demand
CAN Andean Community Comunidad Andina de Naciones
CAP Common Agricultural Policy
CBA Cost Benefit Analysis
CBI Caribbean Basin Initiative
CC Climate change
CDM Clean Development Mechanisms
CED Cumulative Energy Demand
Centro de Investigación de la Caña
CENICAÑA Colombian Sugarcane Research Centre
de Azúcar en Colombia
Corporación Centro de Investigación
CENIPALMA Colombian Research Centre for palm oil
en Palma de Aceite
CFC’s Chlorofluorocarbon gases
International Research Center for Tropical Centro Internacional de Agricultura
CIAT
Agriculture Tropical
CNE Chilean National Energy Commission Comision Nacional de Energía
CO2 Carbon dioxyde
COD Chemical Oxygen Demand
Departamento Administrativo de
Colombian Administrative Department of
COLCIENCIAS Ciencia, Tecnología e Innovacion de
Science, Technology and Innovation
Colombia
National council for Economic and social Consejo Nacional de Política
CONPES
policy making Económica y Social
COP Colombian Pesos
Corporación para el Desarrollo
Industry Development of Biotechnology
CORPODIB Industrial de la Biotecnología y la
and Clean Production Corporation
Producción Limpia
CPI Consumer Price Index
CUE Consortium University-Private sector Consorcio Universidad Empresa
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CV Climate variability
Departamento Administrativo del
DAMA Environmental Administrative Department
Medio ambiente
National Administrative Department of Departamento Administrativo
DANE
Statistics Nacional de Estadistica
DAP Diammonium phosphate
Departamento Nacional de
DNP National Economic Planning Bureau
Planeación
Law of Promotion and Development of
DOF Diario Oficial de la Federación
Bioenergy products
DOM decomposed organic matter
Colombian Corporate group focused on
ECOPETROL petroleum, gas, petrochemicals and alternative
fuels
EF Ecological Footprint
EIA Energy Information Administration
ENSO El Niño –Southern Oscillation
EtOH sugarcane-based ethanol
EU European union
FAG Agricultural and Guarantee Fund Fondo Agropecuario de Garantías
FAME Fatty Acid Methyl Ester
FAO Food and Agriculture Organization
FAOSTAT The Statistics Division of the FAO
Fuerzas Armadas Revolucionarias
FARC Revolutionary Armed Forces of Colombia
de Colombia
Colombian Federation of Palm Oil Growers Federación Nacional de
FEDEPALMA
(Bussiness association) Cultivadores de Palma de Aceite
Fondo Ecuatoriano de Inversión En
Ecuadorian Investment Fund for the Energy
FEISEH Los Sectores Energético E
and Hydrocarbon Sectors
Hidrocarburífero
Fondo de estabilización del precio
FEPA Sugar Price Stabilization Fund
del Azúcar
FFB Fresh Fruit Bunches
FFV Flex-Fuel Vehicle
FI Factor: Input Factor de Entrada
FLU Factor: Land use Factor de uso del suelo
FMG Factor: Management Factor de Manejo
FSM Financial Social Model
GDP Gross Domestic Product
GHG Greenhouse Gas
GIS Geographic Information Systems
GWP Global Warming Potential
IBI Index of Biotic Integrity
ICR Rural funding incentives Incentivo de capitalización rural
13
IDB Inter-American Development Bank
Instituto de Hidrología,
Institute of Hydrology, Meteorology and
IDEAM Meteorología y Estudios Ambientales de
Environmental Studies of Colombia
Colombia
IGAC Agustin Codazzi Geographical Institute Instituto Geográfico Agustín Codazzi
iLUC indirect land use change
IMESI Domestic Specific Tax Impuesto Específico interno
Intergovernmental Panel on Climate
IPCC
Change
ISC Selective Consumption Tax Impuesto selectivo al consumo
Kwh Kilowatts per hour
LAC Latin American and Caribbean
LCA Life Cycle Analysis
LCI Life Cycle Inventory
LCIA Life Cycle Impact Assessment
LUC land use change
Ministry of environment and Rural Ministerio de Ambiente y Desarrollo
MADR
Development Rural
Ministri of Environment, Housing and Ministerio de ambiente, vivienda y
MAVDT
Territorial Development Desarrollo territorial
Macquarie Graduate School of
MGSM
Management
More investment for the sustainable Mas inversion para el desarrollo
MIDAS
alternative development alternativo Sostenible
MJ Megajoules
MTBE methyl tertiary butyl ether
Núcleo de estudios de Sistemas
NEST Without translation
Térmicos
NGO´s Non-governmental organizations
O&GJ Oil and Gas Journal
OAS Organization of American States
PA Positional Analysis
PM Particulate matter
Política Nacional de Agroenergía y
PNAB National Policy of Agrienergy and Biofuels
Biocombustibles
National plan for sustainable Biofuels Plan Nacional para el desarrollo
PNBs
Development sostenible de los biocombustibles
PROALCOOL Brazilian National Alcohol Program
PROBIOCOM
PROBIODIESEL
PSF Price Stabilization Fund
RBD refined, bleached and deodorized palm oil
RED European Renewable Energy Directive
RED Renewable Energy Directive
RFS Renewable Fuel Standard
14
RNP National Records for the Palm oil industry Registro Nacional Palmero
SITM Massive Integrated Transportation Systems
SOC soil organic carbon
SQCB Sustainability Quick Check for Biofuels tool
Union for the Coordination of the
UCTE
Transmission of Electricity
UK United Kingdom
UNEP United Nations environment programme
United Nations Framework Convention on
UNFCCC
Climate Change
UNODC United Nations Office on Drugs and Crime
Unidad de Planeación Minero
UPME Mining and Energy Planning Unit
Energética
VAT Value Added Tax
VEETC Volumetric Ethanol Excise Tax Credit
VOC’s Volatile organic compounds
WB World Bank
WMO World Meteorological Organization
WWW World Weather Watch
15
Abstract
Bioenergy has emerged as a potentially sustainable alternative to the use of fossil fuels for
transport and industrial uses. Developing nations, such as Colombia, can seize the advantages of
modernizing rural areas by using cleaner energy and having more economic opportunities with
bioenergy initiatives, provided the trade-offs between fiber, food, feed and fuel can be managed.
This Thesis examines the bioenergy program now under way in Colombia, where comparative
advantages (shared with other tropical countries) in production of sugar cane and palm oil are
being built on. While the technologies associated with use of these feedstocks are well known,
nevertheless their scaling up in a country like Colombia poses considerable environmental, social,
economic and business challenges.
The thesis poses two fundamental questions based on current Colombian conditions, namely
(1) can the Colombian biofuel industry produce bioethanol and biodiesel under sustainable
guidelines; and (2) to what extent is it possible to expand energy crops for biofuels production
purposes without jeopardizing sustainability goals? A sustainability approach based on recognized
techniques such as Life Cycle Assessment (LCA) allows for a comprehensive social, economic and
environmental analysis of the whole cradle-to-grave progress of the bioenergy value chain. An
original LCA analysis is conducted for the Colombian bioenergy sector, with results indicating that
considerable savings in GHG emissions are achieved while producing sustainable and competitive
bioenergy products. Nevertheless expansion of sugarcane and palm oil crops is possible but
constrained by biophysical, legal, ecological and socio-economic conditions, established to
safeguard sustainable production. Utilising Geographic Information Systems (GIS) some maps
were created which clarify the potential for bioenergy expansion in Colombia. The Thesis thereby
engages with the bioenergy capabilities of Colombia, and drawing on the literature from other
tropical and Latin American countries, provides original estimates of the country's biopotential as
well as needed policy settings to bring Colombia to its full capacity.
To sum up, this document argues that sustainable production and use of biofuels is feasible
and would meet expected market demands over time.
Key-words: Bio-based energy, Energy, Biofuels, Sugarcane Bioethanol, Palm oil Biodiesel, First
Generation Biofuels
16
Thesis statement
The author hereby indicates that the presented work has not been submitted for a higher
degree to any other university or institution. Within the following document all the sources for
external information have been fully acknowledged. This thesis document did not require any
Ethics Committee approval, as was informed in the Annual Progress Reports, given that the
information provided here does not violate any confidentiality agreement, nor have any
hazardous experiments on animals or humans been carried out to reach the conclusions.
__________________________________________
Carlos Ariel Ramirez Triana
17
This work is dedicated to my pretty, lovely and patient wife Diana and to the joy of my life, my son, Tomás
18
Acknowledgments
The writing, designing and final delivery of this document has been possible only with the
enormous support of several people.
Firstly, I want to highlight the huge help received by these two institutions, who made
possible the completion of this really long and exhausting journey: MGSM and Politécnico
Grancolombiano. Staff at the MGSM and Macquarie University were very supportive during my
stay in Australia and also in long distance assistance.
The cornerstone of this thesis was the expertise, knowledge and generosity from my
supervisor, Professor John Mathews, and despite the short time that we shared, his advice was
always precise and accurate.
Also, in Colombia I received special support from the former and current Deans of the School
of Management, Economics and Accounting Science, Dr. Jurgen Chiari and Dra: Deisy de la Rosa,
and from the Head of Research of the University, Dra. Sandra Rojas.
Of course, this thesis could have not been completed without the special collaboration of
several private and public entities that took part directly or indirectly during the research process.
In particular, I want to mention FEDEPALMA, ASOCAÑA, FEDEBIOCOMBUSTIBLES, CUE, IGAC,
IDEAM, UPME, CENICAÑA, CENIPALMA, and CORPODIB.
On a personal note, I want to thank my patient wife Diana, my parents, my sister and my
family and friends in general. I am fully aware that I have stolen plenty of good time from our lives,
but it is my intention to return it in both quality and quantity.
Many more people that were close to me during these last 5 years deserve a special mention
for making this burden less heavy. Unfortunately, space is quite limited and I can only say to you
all, I cannot thank you enough.
19
1. INTRODUCTORY CHAPTER: BIOENERGY, SUSTAINABILITY AND
COLOMBIA
Developing countries are becoming more aware about the role of fossil fuels as being one of
the highest barriers against developing their industrialization process. On the other hand,
industrialized countries constantly emphasize the need to create new alternatives to energy,
generate renewable energies, or to break or relieve their dependence on oil and hence avoid being
subject to oil price fluctuations. In addition, global warming and greenhouse gas (GHG) emissions
have been holding world attention (A. P. C. Faaij & Domac, 2006). Answers to this problem so far
include international agreements, national policies, industry and academic research, and new
technology.
One of the possible answers being presented is Bioenergy, energy from biomass. Bioenergy
can bring environmental improvements through carbon neutral (or even negative) emissions
during the production process (J. Mathews, 2008a, 2008b). Additionally this alternative fuel
source, besides providing a close substitute for gasoline and diesel and alleviating oil dependence,
can also be used as a source of local employment and income from exports(Schuck, 2006).
Nevertheless, Bioenergy projects should be handled carefully. The Brundtland Commission
has set a high standard through the Sustainable Development concept, one that will be difficult to
achieve. The ideal status claimed by the Brundtland Commission, through the Sustainable
Development concept, has imposed a high standard. Growth is possible, but some guidance
should be provided in order to reap the benefits. Sustainable production around the bioenergy
industry has become a real challenge for Latin American and Caribbean (LAC) countries; of course
alternative energies create opportunities but at the same time bring along significant
consequences that should be fully understood, addressed and corrected if possible, before a full
implementation with undesirable results is carried out.
Sustainable development accounts for three basic aspects:
1. the social aspect - involves creating opportunities for local people around the project,
hopefully improving living conditions;
2. the economic aspect - which not only raises income for the investors but also for the
surrounding community,
3. the environmental aspect - that implies to produce alternative fuels in a considered way in
order to preserve or improve natural resources for future generations.
When bioenergy is produced several factors can influence or pervert the path leading to the
achievement of these sustainable goals. In the LAC region some literature, especially among
20
business sectors and policymakers, has been published encouraging public and private
investment. In some cases, biofuels in particular are shown as a great alternative to overcome a
number of difficulties faced by the whole region (some worse than others). However, there are
some sensible publications, most of them from an academic point of view, that warn of the
possible adverse effects related with this sort of energy; of course they cannot be ignored.
It is fair to say that the discussion mentioned above should not be analyzed as black or white.
Among the LAC region it is possible to find a wide gray area. Some similarities can be found
between South and Central American countries in term of natural resources, for example:
excellent sunlight, good soil conditions, and an extensive agricultural sector, probably underused
(Dominik Rutz et al., 2008). However, many social features are also common, such as: poverty,
corruption, undernourishment, social fragmentation, etc. The region as a whole could be an
interesting base for internal and even external bioenergy supply. Conversely not every country
has adequate conditions to take the risk with its energy future and rely on biomass, not to mention
the risk to develop an export industry based on bioenergy.
Subtle differences among these LAC nations allow identifying some particular weakness and
strengths. In that way, potential bioenergy producers and exporters can be highlighted, and
threats and opportunities can be pointed out. The aim of this paper is exactly that, but focusing
on the noteworthy Colombian case.
Within this chapter the reader will find an overview to those aspects that lead the discussion
throughout the entire document. The analysis herein is broken down in to four sections, presented
as follows:
 The first section shows basic concepts around bioenergy production; starting with the role
played in the world by bioenergy and biofuels among the different alternative energies. It
also summarizes biofuels classification and production processes.
 The second section is a general overview on the definition of sustainability. Once this term is
clear, in light of this particular study and after a proper literature review, an explanation of
the importance of sustainable production in the bioenergy sector can be inferred.
 The third section explains briefly the importance of Life Cycle Analysis (LCA) as contribution
of the environmental component within sustainability studies1. This instrument provides an
1
It is importand to recognize that LCA does not provide a comprehensive analysis in terms of
sustainability under a holistic perspective because it does not cover social nor economic aspects.
It focuses rather on the so-called environmental sustainability (Čuček, Klemeš, & Kravanja, 2012);
however, LCA does make part of the set of methods to measure sustailability (at least partially),
21
insight to understand the proper extension of energy crops taking into account highly
controversial topics such as carbon emissions and expansion in tropical areas.
 The fourth section will offer a general idea of the biofuel industry in Colombia, and the
potential role that it plays in the global bioenergy scenario.
Note: These sections will be developed in detail in further chapters.
1.1 Bioenergy and sustainability: general overview
Renewable energies, in particular bioenergy, can provide interesting substitutes for fossil
fuels. The following section offers a brief overview of the definitions, importance, processing
methods and possible impact of this alternative energy source in terms of sustainability.
1.1.1 Bioenergy situation in the global energy scenario

The world is trying to reduce its dependence on fossil fuels. Not only because the price of oil
continually rises as it becomes more scares, but also because of the environmental burden related
with GHG emissions (carbon dioxide mainly) and their effects on global warming.
For that reason, energy alternatives are starting to play important roles in energy
consumption today. Some of those, such as nuclear energy, have the potential to cover part of
the energy need at a competitive cost. However the radioactive waste management, the constant
threat of nuclear material for use in weapons manufacture, and the reported scope of fatal
accidents (the most famous ones being Middletown, Pennsylvania, USA in 1979, and Chernobyl,
ex-URSS in 1986) create resistance among the population and in the general international political
community.
Renewable energies have been available for a long time and they are advancing on many
different fronts. In general, it can be seen that renewable energy use has been increasing (See
Figure 1). However, since 2001, there has been a noticeable upsurge in its consumption, with an
average growth rate of 5.9%, but it is still uncertain if the cycle observed during the 90’s will be
repeated.
as do other alternatives such as Social LCA, Life Cycle Cost Analysis, Ecologycal footprint,
environmental sustainability index, among others. Čuček et.al make reference to some important
limitations that can be found in the LCA application, such as the enourmous amount of
information required and the availability of that data, and the resource and time intensities of
LCA. Nevertheless it is interesting that LCA studies were not very frequent in developing countries
(Hauschild, Jeswiet, & Alting, 2005), but nowadays they are being used for decision-making
processes for private or public initiatives.
22
Figure 1 World renewable energy consumption
World Total Renewable Energy

consumption
10000
9000
8000
Trillion Btu
7000
6000
5000
4000
3000
2000 1981
2005
1949
1960
1975
1978
1984
1987
1990
1993
1996
1999
2002
2008
2011
Source: (EIA, 2012)
Nevertheless, this evolution can be separated by source, as is shown in Figure 2. Here, it is

seen that some sources of renewable energy (RE) have experienced a substantial growth: it is
noteworthy the case of Solar/PV, but even more noticeable, in terms of dimension, the growth
exhibited by Bioenergy (particulary modern bioenergy represented by biofuels). . Bionenergy
covers nowadays nearly 10% of total global primary energy supply (i.e. 50EJ). However, a big share
of all bioenergy applications (62%) is represented as traditional fuelwood for cooking and heating
(Lamers, Junginger, Hamelinck, & Faaij, 2012). In the last decade the upsurge of modern biofuel
applications has been substantial: within the period of 2000 to 2009 biodiesel production has
move from 30 PJ 572 PJ, while bio-ethanol started with 340 and ended ud with 1540 PJ (Lamers,
Hamelinck, Junginger, & Faaij, 2011). Use of wind power is still limited and the scale small (its
highest point is less than one tenth that of Biomass used in the same period). An insignificant but
stable part is played by both geothermal and solar power. Despite their enormous prospects they
have not been embraced sufficiently by the market.
23
Figure 2 World renewable energy consumption by source
World Renewable Energy

Consumption by Source
5000 1400
4500
1200
4000
3500 1000
trillion Btu
3000 800
2500
2000 600
1500 400
1000
200
500
0 0
1965
1949
1955
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
Wood Waste Biofuels
Biomass Hydroelectric power Wind
Geothermal Solar/PV
Note :Dotted green lines represent the contribution of three different sources of Biomass (Waste, Wood and Biofuels). The
addition of the aforementioned souces.is shown in the green thick line (Biomass).Geothermal, Solar and Wind power are measured
with the secondary axis. Source: (EIA, 2012)
On the other hand, a big share of energy production is driven by hydro, which actually
describes most of the behavior of total consumption, but it has been particularly discrete since
2001 and explains part of the decrease experienced in 2007 in the previous chart (figure 1).
However, as previously stated, since 2001 the aggregated use of renewable energy has been rising
(showing a 5.4% growth rate) despite the fall presented by hydro – predominantly offset by
increased use of biomass sources.
This Biomass study can be even more detailed if it is broken down by sector as is presented in
figure 3. Biomass energy has traditionally been used (and it is still used) largely by industry, in the
form of roundwood, wood byproducts and wood waste. Residential use is secondary to industry,
and it has fallen constantly in the analyzed period, mainly due to conversion methods for cooking
and heating in depressed regions, through substituting fuelwood and other sorts of biomass by
kerosene, natural gas or gasoline2.
2 Private-Public Initiatives are being developed to reduce the use of fuelwood indoors because of the risk that it
represents to health, as the documented experience of alternative stoves in Philippines. Decision makers are addressing
24
Figure 3 World Biomass energy consumption by sector
World Biomass energy

consumption by Sector
2500
2000
Trillions of Btu
1500
1000
500
0
1949
1991
1952
1955
1958
1961
1964
1967
1970
1973
1976
1979
1982
1985
1988
1994
1997
2000
2003
2006
2009
2012
Residential Commercial Industrial
Transport Electric power
Source: (EIA, 2012)
The production of electricity associated with biomass consumption is utterly recent and it has
remained relatively unchanged since 1991, with a little setback in 2000-2001. The initial growth
of this energy shown in early 90’s within this sector is practically immovable nowadays.
The occurrence of biomass energy in commercial power consumption is especially low,
apparently because most of the commercial activity is located in urban areas, implying that this
sector is mostly covered by other alternative energy in different national energy grids, so a small
remnant in isolated areas is supplied by biomass.
Modern biomass has been expanding at considerable speed. The IPCC report shows that its
use has been growing at 8%, 9.6%, and 11.3% per annum for the years 2008, 2004 and 2008
respectively. Energy carriers within this category (like liquid and gaseous biofuels) have
experienced average annual growth rates of over 12%, in the period 1990 to 2008.
In 2009 biofuels provided 3% of road transportation fuel use. Together biodiesel and ethanol
accounted for 90 billion litres for that year (IEA, 2010).
There have been some setbacks in the augmentation of bioenergy initiatives around the
world. In the period 2007-2008 the use of biofuels had an escalation in OECD countries mainly.
their policies to fight this situation. “Household use of traditional bioenergy locks people in the developing world,
particularly women, into a cycle of poverty and ill health” See (UN-Energy, 2007).
25
Such situation led to infrastructure investments that failed due to the economic environment that
was present those days. The consequences were that some of the productive capacity was idle
(by the time of the IPCC report) and some facilities were shut down. On the upside, Latin American
and Asian (South pacific) markets are growing, therefore the decline in the use of biofuels can be
offset for this fact (Chum et al., 2011; IEA, 2010).
Those active players in the current biofuel initiatives (with strong policy support) are expected
to be the most benefited of the projected expansion for this market (From 2.1 EJ/y in 2008 to 16.2
in 2035) (Chum et al., 2011; IEA, 2010).
Finally, it is noticeable that the transportation sector is definitely driven by an active fuel
substitution creation policy. In a very broad sense there have been identified policies (such as
promotion of domestic production and consumption and trade boosters or barriers) that add
dynamism to the sector (Lamers et al., 2011). Biomass energy used in transportation is basically
concentrated in liquid fuels (bioethanol and biodiesel) and it has grown at an average rate of 20%
from 2000 to 2012.
So far, Brazil, the EU and the US have been the main consumers and in major extent producers
of liquid biofuels for the last decade, however more countries are emerging as potential producers
and exporters of biofuels.
1.1.2 Bioenergy/biofuels production
Among different sources of renewable energy, bioenergy is highlighted by its scope and
versatility. In contrast to other possibilities, like wind, hydro and solar power, it goes beyond
electrical production and furthermore is capable of providing an attractive answer for
transportation requirements. . Biomass is understood as any non-fossil material of biological
origin such as energy crops, forestry, residues and organic wastes 3 and it can be used or
transformed in an energy carrier. This can be extended to include fuels produced directly or
indirectly from biomass. Some of these kinds of fuels are known as biofuels4 amongst which the
3 These wastes comprise of agricultural crop wastes and residues, wood wastes and residues, aquatic plants, animal
wastes, municipal wastes, and other waste materials. See http://www.energy.gov/energysources/bioenergy.htm

4 There is a debate around the term biofuel instead of agrofuel. It seems using the prefix “bio” gives an
environmental or benevolent connotation. “Agro” on the other hand specifies big monoculture procedures such as
sugarcane, soy, etc. However, the biofuels definition used in this article is referring exclusively to its biological origin.
See discussion in Honty and Gudynas, 2007, Pistonesi et al., 2008.
26
most remarkable examples are, bioethanol, biodiesel, and biohydrogen5. Some other examples of
bionenergy products can include fuelwood, charcoal and methane6.
Biofuels are also responsible for generating the most controversial debates in terms of
sustainability, however, some references regarding biogas will be made below in the Colombian
case study and supplementary research will be done as part of this project to understand the
effects of bioenergy that come from different natural sources.
1.1.2.1 Types of biofuels (by natural physical state)
Biofuel can be classified by their natural physical state, i.e. solid, liquid and gas (as shown in
figure 4). Solid biofuels come from non-standardized material, like: branches, dung, irregular
firewood, bark, among others; and are exposed to mechanical processes to transform them into
regular shapes such as pellets or briquettes, making storage, commercialization and use less
problematic.
5
The whole document, places special attention on energy crops used to create biofuels as most of
them can be created deliberately and rapidly, which is not the case for forestry or waste-based processes,
unless indicated otherwise.
6
In a broad sense fuel is any material capable of storing potential energy and that usally releases such
energy as heat. Having said that some other bioenergy products (such as firewood or methane) can be
considered themselves as fuels. However the literature has coined the term biofuels mostly for those
products in liquid state that are employed for transportation purposes.
27
Figure 4 Route from biomass to biofuels
Note: The first transformation process gathers all technologies via thermochemical
transformation. Different products can be obtained using such pathway: solid biofuels (grey dot),
syngas (red dot) and oxygenated oils (green dot), based on the chosen route.
There is also the possibility to put biomass through torrefaction (pyrolysis), which involves
exposing the material to temperatures between 200 and 320°C in the absence of oxygen. Two
main products are obtained: a solid material called biochar, and a gas called syngas or synthesis
gas. Biochar can be used as a more concentrated firewood, but it has greater positive effect if it is
used in agricultural practices, creating a negative net effect in terms of carbon emissions to the
atmosphere, i.e. absorbing carbon instead of emitting it (J. Mathews, 2008a). In the case of syngas,
it can be used directly as fuel or it can be used as source material to produce gasoline and diesel
(through the Fischer-Tropsch process) (A. Demirbas, 2007).
Another source of bio-gas fuel is methane that comes from wastes, landfills or dung (Schuck,
2007). The most frequent use of such a source is for heating and electricity production. A solid
by-product also results through the use of this technology, but in most cases is used as fertilizer
rather than being used as fuel.
Liquid biofuels, which are the core of this document, are represented by alcohols and oils, and
among them the most recognized and used ones being bioethanol and biodiesel. Alcohols, such
28
as ethanol, butanol and propanol, are used to complement or substitute for gasoline fuel. They
come mainly from feedstocks rich in starch (for instance potato, cassava, maize, or wheat), but
they can also be produced from natural sugar sources, like sugarcane or beetroot. It is also possible
to manufacture alcohols by using complex technological routes that are able to process biomass
rich in lignin and cellulose (Schuck, 2006). These substances are present in the exterior layer of
plants and are often used for paper and cardboard production.
The inclusion of such technologies brings an amazing potential to the bioenergy stage, due to
the fact that other materials, for example: Poplar, Willow, Eucalyptus, Miscanthus and
Switchgrass, can be considered as a source for biofuels manufacture (Mathews, 2009). Likewise,
wastes from other industries can be used: from timber processing industries sawdust, branches
and barks, can be employed, and some seed shells from food processing industries. Smeets argues
that technology improvements per-se are not able to provide large potentials, but the former are
hinging from a proper agricultural and livestock management as well as strong governance on land
policies (Edward Smeets, 2008).
Unfortunately, these technologies are still under development and commercial scales are still
not available due to cost and technical complexity.
Oils, on the other hand, complement or substitute diesel fuel. Feedstocks have animal (fat or
tallow) or vegetable origin (oleaginous seeds, such as: rapeseed, castor oil, soybeans, and palm oil
among others). These materials go through a process called transesterification (a blending
process of fatty component with an alcohol), in order to separate glycerol (by-product highly used
in pharmaceutical industry) from FAME (Fatty Acid Methyl Ester), commonly known as biodiesel.
It is also possible to employ residual oil from frying processes, or wastes from oily animal
fodder. However, the commercial experience with this product is not as wide as the FAME one
(Evans, 2007), nor as homogenous in terms of product quality. It is also possible to use non-edible
oily seeds such as Jatropha Curcas, which is not very demanding in terms of soil conditions, so it
can be planted in degraded or marginal lands.
From now on in this document, the term biofuel will make reference to any liquid fuel
produced from biomass and used for transportation purposes. On that basis, it is possible to go
deeper in to the classification of biofuels:
29
1.1.2.2 Types of biofuels (by technology generation)
Bioenergy has been present in human life since men were able to master fire, and during
thousands of years not many changes in technology were presented. However within the last
century this aspect has faced several modifications (S. C. Trindade, Cocchi, Onibon, & Grassi,
2012), turning the sector in a core of constant innovation.
Bioenergy uses several types of feedstocks to manufacture different kinds of products.
Transformation of neat biomass into energy carriers (modern solid, liquid and gaseous
presentation) can provide more efficiency in economic and energy terms, and can have more
applications that in its original version. Technology complexity varies accordingly with the kind of
feedstock to be processed, and so do the costs associated with the chosen technological path
(Chum et al., 2011).
According to the type of technological route that is employed to obtain biofuels, these can be
classified in four different generations (Carlos Ariel Ramírez Triana, 2010):
First generation biofuels (1GBf): they are also called agrofuels and they come from crops that
are employed for food, or fodder for animals. The complexity of technology to process them is
relatively low, given that accessing the sugars is relatively easy through the addition of yeast (for
alcohols), and breaking the lipid chains, through transesterification, in the case of oils. Within this
category are sugarcane, corn, cassava, and beetroot ethanol and butanol; and palm oil, rapeseed
and soybean based biodiesel. Due to their relatively low costs first generation biofuels have
successfully been produced commercially since the First World War.
In 1GBF only a small fraction of AGB is used for biofuel production, within the remaining
fraction being processed for animal feed or lignocellulosic residues. For the Colombian case,
which so far produces mainly sugarcane-based ethanol and pal oil-based biodiesel, is
implemented the use of bagasse and palm fruit residues to produce heat and power to cover the
needs of processing needs. Such practice likewise occurs in Brazil, leads to positive environmental
footprints for these biorefinery products (Chum et al., 2011).
Second generation biofuels (2GBf): they emerged as a response to the most critical issue
faced by 1GBf: the fuel vs. food dilemma. Lignocellulose sources are the base for 2GBf, so more
materials can be employed as mentioned before. The yield that can be obtained with 2GBF
exceeds regular feedstock results by a factor between 2 and 5, and the requirements of
agrochemicals is less intensive in comparison with 1GBF (Hill, 2007). Biodiesel production uses
Jatropha, Castor oil and some bushes such as Pongammia Pinnata and Callophylum Inophyllum.
Lignin sources are also useful if they go through the Fischer Tropsch Synthesis. 2GBf can be
obtained by using two paths:
30
 Biochemical extraction - using enzymes to break lignin fibers and release the required sugars.
It produces cellulosic ethanol.
 Thermochemical extraction of oil -mentioned in the syngas process, for further biodiesel
processing. This technique is called biomass-to-liquid (BTL) (BioPact, 2007; Schuck, 2007).
Notwithstanding the impact of their production process on soil organic matter after the
removal of stands is done has not been completely studied (Anderson‐Teixeira, Davis, Masters, &
Delucia, 2009; Wilhelm, Johnson, Karlen, & Lightle, 2007). Nowadays, current commercial
feedstocks are mainly used to provide heat and power, whereas oily seeds, sugar and starch crops
are used to produce liquid biofuels (with some conversion of residues into heat and power as well)
(Chum et al., 2011).
Regarding 2GBf, several pilot plants have been built in Europe and are at the forefront in
bioenergy literature, however, their cost remain prohibitive to their implementation in the LAC
region.
Third generation biofuels (3GBf): 2GBf do not cover the issue of land competition.
Agricultural land is becoming scarcer, and implementation of 1GBF and 2GBf also need this natural
resource. So, in 3GBf some research has been undertaken to use algae and cyanobacteria for
biodiesel production. Some initial tests were carried out in fresh water, but due to the shortage
of this resource, research redirected efforts to maritime organisms. Yield results have proven a
productivity 100 times better than palm oil (which is the best 1GBf feedstock for biodiesel),
however, high costs and unpredictable biological conditions have slowed the pace of this research
(Gressel, 2008). From a techno-economic perspective the use of algae for energy purposes only is
not attractive. So far, capital costs, productivity energy consumption during cultivation, harvesting
and conversion paths to bio-energy has prevented to make of this a competitive alternative
(Jonker & Faaij, 2013).
Fourth generation biofuels (4GBf): Given the recent emergence of 4GBf, their literature
references are ambiguous. On one hand they are presented as organisms genetically modified, in
order to raise cellulose content and with low lignin content. This is the case of some tropical
Eucalyptus and Dahuria Larch. The main feature of these species is that they exclude carbon,
turning into carbon negative biofuels (BioPact, 2007; J. Mathews, 2008a). It has been argued that
energy content can be enhanced with 4GBf in comparison with 2GBf, reaching calorific values
close to regular fossil fuels (Mannan, 2009).
On the other hand, some authors present 4GBf as an extension of 3GBf, in which, through
genetic modification, some algae are created and undergo enzymatic biochemical processes, to
31
produce biohydrogen or bioelectricity (M. F. Demirbas, 2011; DNV, 2010; Gressel, 2008; Lu,
Sheahan, & Fu, 2011).
Frequently, many authors combine 3GBf and 4GBf under 2GBf, therefore, it is not common to
find much information about them. Their study and implementation are conceptually interesting,
however, they need more time to reach a mature commercialization within the LAC region. For
instance calculations have been made where is implied that some particular biofuels (methanol,
ethanol, hydrogen and synthetic FT diesel) could cost between EUR 16-22 per GJ (with prices of
2006), however projections to 2030 indicate that through technology and a biomass supply cost
of EUR 3 GJ such costs could drop up to EUR 9-13 per GJ.7 (Hamelinck & Faaij, 2006). Thus, there
are potential savings in production cost between 18% and almost 60%, which is very attractive to
the industry.
Now that biofuels have been explained it is important to understand the linkage that they
have with sustainability and the implications for developing nations such as Colombia.
1.2 Sustainable Development and energy

The concept of sustainable development (SD) was issued by the Brundtland commission in
Our Common future report in 1987, but it has been present tacitly from the early 70’s. The main
point behind SD is to create a harmonic plan of action which organizes human life in a planet of
finite resources, where the needs (particularly of the poor) are covered and limits are set by the
technology and availability of restricted natural resources (WCED, 1987). In order to do that
several issues have to be tackled, such as securing of food, provision of materials for sustenance,
and implementation water, land and energy management, among others.
The relationship between energy, environment and SD is very close, given that in the pursuit
of SD a society has the obligation to look for environmentally-friendly energy sources. However,
it is a fact that all energy sources have some sort of impact on the environment, therefore energy
efficiency and conservation is encouraged to its maximum extent (nevertheless it experiences
technical and institutional issues for implementation), and research on several alternatives is
always welcomed (Dincer & Rosen, 1999). A proper energy management plays a key role in
livelihood conditions, given that it allows consumers and producers to have access to affordable,
reliable and clean energy on a permanent basis (UNPD, 2014). Diversification of energy sources
and appropriate distribution build up energy security and mitigate adverse impacts on the
environment (UNPD, 2014).
7
In some regions su as the former URSS and LAC region is possible to drop down such cost up to EUR
7-11 per GJHHV.
32
Development and technical progress on energy has provided solution to several problems but
it has unleashed some others like the effect of road traffic and the pollutants that are released by
locomotive alternatives (Omer, 2008). For that reason, the use of some other fuels, that
eventually can fulfill the same needs without generating effects as severe as the ones occasioned
by current alternatives, calls the attention of scholars, governments and the society as a whole
and it triggers a series of dynamics (policy-design, international forums, research, financial
supports, etc.) that aims to strengthen an energy provision more aligned with sustainability goals.
For energy can be applied the concept of absolut sustainability (where there is not depletion
and no residues) and relative sustainability (where there is a comparison of two or more
generation technologies, cities, etc.). Absolut sustainable energy can be achieved by some
renewable alternatives. Bioenergy can provide a more sustainable option than fossil alternatives
for transportation purposes.
1.2.2 Biomass production and sustainability

Biomass production carries a huge responsibility because important social, ecological and
economical upshots are hinging on it. On the one hand, it is a source for fuel, construction, fodder,
clothing materials, medicines and so on. On the other hand, trees, bushes and other vegetation
types have to accomplish an environmental balance while maintaining soil, water and air quality.
This results in a difficult predicament to use biomass for energy purposes and at the same time to
fulfill the rest of the basic needs (Miller, Mintzer, & Hoagland, 1986).
Important consequences are linked with a non-responsible biomass production system.
Environmental results could be: devegetation, soil degradation, deforestation, erosion, loss of
biological diversity and climate change. In addition socioeconomic results could include: possible
reduction of agricultural yields in some areas, uneven land distribution and forced displacement
of local populations among others (Chum et al., 2011).
Literature about bionenergy has been vastly feed with both, positive and negative impacts on
job creation, wealth distribution, and wellbeing performance (Coelho, 2005; Khatiwada, Pacini, &
Lönnqvist, 2010; Pimentel, 2003) ; therefore, it is hard to assume a clear and absolute position
abour biofuels in this matter.
However, global warming, high pollution and fossil fuel’s non-renewable nature have
presented biomass as an appealing option in the current energy scenario. The photosynthetic
process has an superb capacity for capturing energy. Through early studies (Miller, Mintzer et al.
1986) it has been shown that every year plants accumulate up to 10 times as much energy as the
world uses. In using plants to produce energy important goals can be achieved: withdrawing the
remarkable reliance on oil, moving back or even changing trends on pollution levels through
33
carbon sequestration (wastes exchange8), and providing foundations for development and growth
through rural development and creation of export industries.
This excitement comes with both high controversy and concern: a constant increase in food
prices9, indirect effects such as tropical deforestation and GHG emissions generating a carbon
debit due to inadequate land use 10 , this could be direct or collateral effects that endanger
sustainability aims. Pros and cons around biofuels demand urgent attention: thus both
sustainability balance and goals are top priorities on the global agenda.
1.3 Life Cycle assessment (LCA) importance
Measuring and monitoring sustainability is a key factor if new alternatives are to be

implementedIt is important to bear in mind that turning biomass into energy brings along input
and output flows that may have impacts on the environment.Assessing Sustainable Development
Production as a whole is, by definition, particularly hard, so indicators have been designed to
reflect the desired “triple P” criterion. Some assessment methods applied to agricultural cases
(Doherty & Rydberg, 2002) could include, Cost Benefit Analysis (CBA), Ecological Footprint (EF),
Energy Analysis (EMA), assessment of Ecological Integrity/index of Biotic Integrity (IBI), Positional
Analysis (PA). However, none are complete or sufficiently integrated. (Fehér & Lýdia, 2005).
Some of the studies that have been used to make a partial approach to sustainability
assessment in bioenergy production are founded in the use of Life Cycle Assessment (LCA). This is
not a new tool, given that has been explored for nearly 30 years, but it was during the period
1900-2000 where LCA studies took a standard shape as result of numerous workshops, guides and
handbooks (Guinee et al., 2010).
The LCA methodology is a quite comprehensive cradle-to-grave analysis of a particular
product, in terms of input requirements and output achievements. The evaluation starts with raw
materials extraction, followed by a processing stage, and subsequently by distribution and
commercialization phases. A complete LCA finalizes when the selected product reaches its
disposal stage, but in most cases ends with its final use.
The use of LCA in bioenergy studies have been implemented for about decade and a half
(Cherubini & Strømman, 2011), and it provides a complete and tangible insight in particular
8 Morton (2008) says: “As far as photosynthesis is concerned, oxygen is a potentially problematic waste product;
but to the biosphere at large it is a great gift”. So, ironically a wastes cycle is faced between industrial development and
nature.
9 This position is argued by some scholars (Redclift, M and D. Goodman, 1991; Pimentel, D 2003) but refuted by
some authors (Kline, K, et al, 2009)

10 See discussion presented in Mathews, J and H, Tan (2009)
34
aspects, such as energy efficiency, greenhouse emission savings, among others; therefore they
can offer information for decision-making processes in both public and private enterprises.
A good compilation/comparison of the most recent publications in such regard can be found
in (Cherubini & Strømman, 2011). However it is fundamental to highlight that LCA does not cover
completely a sustainability assessment, but it focuses mainly in the environmental performance.
In the literature it is also mentioned, as a barrier of LCA implmentation, that some funds are
conditioned to the results obtained by LCA studies, therefore there are cases where the
methodological freedom of e.g. biogenic carbon balance and allocation are practically non-
existent (Guinee et al., 2010). Some other obstacles that LCA studies must overcome are the lack
of enough carbon footprint studies implement in geographic areas different to Europe and North
America (so it is possible to provide more accurate results of the analysis), as well as turning the
results into real-world enhancements, given that in several occasions LCA’s cannot cover side-
effects such as LUC, rebound effects, market mechanisms, etc.
Most of the LCA bioenergy analyses have been carried out in developed countries. Just
recently a considerable amount of publications have shown productive systems in developing
countries, particularly in Southeast Asia. There is not abundant research for biofuels by using LCA
studies in Africa and South America (Cherubini & Strømman, 2011). There is comparative analysis
of the Colombian and Brazilian case via LCA study, however deatails of the study are not provided
in the publication (Yáñez Angarita, Silva Lora, da Costa, & Torres, 2009). As part of this thesis,
within the Chapter 6 will be presented a complete LCA for sugarcane based ethanol and palm oil,
where it will compare results with those presented by Yañez et.al11 .
To end the current chapter an insight of the Colombian bioenergy panorama is presented in
brief.
1.4 Colombia: country, energy needs, and bioenergy industry

Some progress (regulation and investment) has been made so far, but as is shown below,
there are some task regarding social and environmental balance that still need consideration. An
initial reference to the country’s current situation is presented, followed by an energy analysis, in
order to understand finally Colombia bioenergy performance at the present time.
1.4.1 General Information
11
It is important to highlight that the work presented here to assess sustainability is mainly focused on
GHG and LUC effects of 1st generation biofuels (particularly on chapters 6 and 7).
35
Colombia is a country located in north-western South America with a population of over 45
million people evenly distributed by gender (See Table 1). It is possible to establish a density of
approximately 38/km2 (Crossing information with Table 2). Its territory (more than 114 million
hectares) places it as the fourth largest nation in South America. More than 70% of the population
is located in urban centers which are spread throughout the highlands of the Andes Mountains.
However, Colombia also encompasses tropical grassland, Amazon rainforest, and both Caribbean
and Pacific coastlines. In 2005, when bioenergy projects started in Colombia, more than half of its
land was covered by forest, about 38% of the available land was suitable for agriculture, but was
already predominantly used for livestock (above 90%), leaving only a small area for growing crops
(see Table 2). That opens the door today to create a new scheme of intensive
agriculture/ergoculture12 and to restructure land activity distribution.
Table 1 Colombian Population Distribution Estimated for 2006 and 2013
2006 2013
Category (1000)
Unit (1000) % Unit (1000) %
Total - Both sexes 43841 100.0% 48321 100.0%
Male 21594 49.3% 23759 49.2%
Female 22247 50.7% 24563 50.8%
Urban 32388 73.9% 36650 75.8%
Rural 11454 26.1% 11671 24.2%
Total economically active 21684 49.5% 25545 52.9%
Male 11662 26.6% 13562 28.1%
Female 10022 22.9% 11982 24.8%
Economically active population in Agr 3571 8.1% 3467 7.2%
Male 2700 6.2% 2597 5.4%
Female 871 2.0% 870 1.8%
FAOSTAT FAO statistic division 2013
12 Ergoculture concept (land to cultivate energy) developed by Mathews (2007)
36
Table 2 Colombia Land distribution 2006 and 2011
2006 2011
Elements
Area (1000 ha) %* Area (1000 ha) %*
Country area 114175 100.00% 114175 100.00%
Land area 110950 97.18% 110950 97.18%
Agricultural area 42174 36.94% 43785.6 38.35%
Arable land and Permanent crops 3369.3 2.95% 3998 3.50%
Arable land 1904.6 1.67% 2098 1.84%
Permanent crops 1464.7 1.28% 1900 1.66%
Permanent meadows and pastures 38804.7 33.99% 39787.6 34.85%
Forest area 60903 53.34% 60398 52.90%
Fallow land 108.2 0.09% 114 0.10%
Other land 7873 6.90% 6766.4 5.93%
Inland water 3225 2.82% 3225 2.82%
* This percentage is the share of the element in the Total country area
FAOSTAT 2013
Since 2000, Colombia has had a positive growth in its GDP starting under 2% in 2001 and
reaching almost 7% in 2007. In the same period of time a contrary tendency is seen in the inflation
rate, decreasing constantly from almost 11% in 1999 until its lowest point in 2006 (4.3%) and
increasing again in 2007 (5.54%).13
Table 3 South American socioeconomic facts
Gross domestic product, Gross domestic product per
Item Population Unemployment rate
current prices capita, current prices
Unit U.S. dollars (Billions) Persons (Millions) U.S. dollars (Units) Percent of total labor
Country 2011 2012 2013 2011 2012 2013 2011 2012 2013 2011 2012 2013
Argentina 444.61 475.21 484.60 40.57 41.03 41.49 10958.90 11582.48 11679.30 7.15 7.20 7.34
Bolivia 24.12 27.23 29.81 10.63 10.83 11.04 2269.35 2514.32 2700.53 6.50 6.43 6.35
Brazil 2474.64 2253.09 2190.22 196.66 198.36 199.88 12583.64 11358.54 10957.61 5.97 5.50 5.80
Chile 250.99 268.18 281.67 17.25 17.40 17.56 14551.69 15410.12 16043.10 7.12 6.43 6.18
Colombia 330.76 369.02 369.23 46.05 46.60 47.15 7182.36 7919.17 7830.67 10.84 10.38 10.30
Ecuador 76.77 84.04 91.41 14.42 14.63 14.85 5324.55 5742.65 6154.06 6.00 5.30 5.50
Paraguay 24.08 26.07 30.56 6.57 6.68 6.79 3666.30 3903.66 4499.21 5.60 5.80 5.40
Peru 178.37 198.85 210.35 30.01 30.47 30.95 5943.85 6525.36 6797.34 7.73 6.75 6.00
Uruguay 46.44 49.92 57.11 3.37 3.38 3.39 13784.56 14766.83 16833.65 5.99 6.03 6.70
Venezuela 316.48 381.29 367.48 29.07 29.52 29.99 10886.05 12917.52 12255.50 8.20 7.82 9.21
World Economic Database, January 2014
Due to its high population (second in the South American region), its GDP per capita in
Colombia is below average in South America (See Table 3). A similar situation occurs in Brazil
according to the ranking; however, its GDP per capita is over the average in the region by far,
showing a big gap in productivity, dividing these countries into two groups:
 High productivity (Venezuela, Chile, Uruguay, Argentina and Brazil)
13 Data from IDB (Inter-American Development Bank) databases:
http://www.iadb.org/countries/indicators.cfm?id_country=CO&lang=en
37
 Low productivity (Colombia, Peru, Ecuador, Paraguay and Bolivia)14.
By 2006 the labor force reached around 50% of the total population in Colombia with
participation growing trend for 2013 (nearly 53%). Close to 17% of the labor force (almost 8% of
the total population) was participating actively in primary sector activities, but such item
decreased by 2013 (to 13.5 and 7.2% respectively) (Table 1).
By February 2009 it could be established that 25% of the occupied people were working in the
commerce, restaurant, and hospitality sectors (which is still the most active sector today). These
facts seem to show that Colombia is on the developing path, changing its agricultural vocation as
seen 15 years ago and moving towards the service sector. Nonetheless the picture is incomplete,
because in 2009 the unemployment rate is at 12.5% and underemployment rate is almost in 40%
(DANE, 2009). If violence and consequent migration are added it is easy to understand that the
current social balance is negative; and farmers and agricultural non-trained workers are being sent
to the cities to work in precarious and non-stable conditions, accelerating the effects of violence
in the cities due to impoverishment and lack of opportunities.
It is fair to say that Colombia now has a better security situation which has brought investment
confidence. Since 2002, under president Alvaro Uribe’s administration, a new government plan
started called “Democratic Security”, characterized by providing an enforcement of the public
force (Manson, 2003)15, hence creating a trust climate and boosting direct foreign investment.
But it is undeniable there still exists the effects of a 40-year-old civil conflict with the presence of
guerrillas, paramilitaries, and drug dealers creating political instability, and generating grim effects
such as forced displacement and irrational use of land.
However, a high environmental price has been paid by Colombia in order to adopt the current
development model. The uncontrolled growth of every city has left a huge legacy of
environmental problems: atmospheric and noise pollution, and traffic congestion are endemic.
Generalized respiratory issues and control policies are a consequence of that, diminishing the
productivity in some cities16. Aquatic ecosystems, especially rivers close to development cores
are extremely polluted.
14 Venezuelan case is particular because a big portion of its income comes from oil exports (and derivatives), but
not from agriculture or manufacture products which is the case of rest of South American countries.
15 Manson argues that notwithstanding the enhancement in economic issues due to Uribe’s policy there is also a
big concern among political opposition and some civil society sectors that the strategy has, at best, moved forward
more aggressively on the military than on the institutional dimension, and, at worst, has restricted the democratic rights
that it purports to protect.
16 Daily respiratory hospital admission is highly correlated with air pollutant emissions. The result of this is: on one
hand frequent work absence and on the other hand creation of taxes for emissions, restrictions over the use of vehicles,
among others (Lozano 2004). In recent years Bogota, Pereira, Cali and Medellin have implemented restriction of the use
of vehicles only during peak hours with effective results. Other cities are planning to follow that example. However,
since the beginning of 2012 the Mayor of Bogota, Samuel Moreno, has imposed a very controversial full “No drive day”
during two weekdays (taking turns according with the license plates on private vehicles), generating slowdown in
38
Additionally coffee plantations, the traditional crop in Colombia with around 590 thousand
hectares cultivated today 17 , require intensive use of pesticides and fertilizers, and are highly
demanding of lighting conditions, which means large scale clearances of shade trees, resulting in
degradation of soil quality. Deforestation is massive and largely uncontrolled and is the outcome
of undesired migration processes, thus increasing the desertification progression in the Andean
ecosystem (O'Brien, 1997). Profits have been plunging and most of the added value is captured
by international coffee processor, and benefits for small farmers are appalling.
Moreover, illegal coca leaf production, processing and posterior eradication when crops are
detected by the Government, bring catastrophic results to the environment and society, including:
rainforest clearance for starting the crops (most commonly burning), strong chemicals used to
nurture the plants and to increase cocaine content, anti-personnel mines employed to protect the
plantations, inflationary phenomena in local economies, violence, farmer evictions, and
fumigation (without discrimination between illegal and subsistence crops) with potent herbicides
used to eradicate these illegal plantations (Álvarez, 2001; Mejía & Posada, 2008).
Colombia needs to expand their agricultural horizons beyond coffee, and strengthen the
primary sector to develop agricultural and ergocultural projects, leading to a better demographic
distribution, and hence local progress. Moving from a weak tertiary sector to a potential strong
primary sector would not necessarily mean involution, but opportunity.
1.4.2 Energy Information
Colombia has shown (so far) a relatively low energy import dependency due mainly to its use
of hydro-power energy. Electricity in Colombia is based on hydro (close to 82%), gas (around 12%)
and coal (approximately 7%). Nevertheless, due to transport and industrial needs for Colombia,
oil is the dominant fuel, accounting for 34.4 % of 2007’s primary energy demand, followed by
hydro (33.6%), gas (23.1%), and coal (8.8%) (BMI, 2008), so the remainder for biofuels and other
renewable sources is low.
As the security situation is being improved, the number of attacks against Colombia’s energy
infrastructure has dropped, but even today occasional sabotage is done by insurgent groups to
the country’s pipelines and power lines (EIA, 2009a). According to Oil and Gas Journal (O&GJ) cited
in EIA, Colombia had 1.36 billion barrels of proven crude oil reserves (as of 2009), the fifth-largest
business and creating analogous effects experienced by Mexico City, where a similar program appeared to have induced
the purchase of a second vehicle, often older and more polluted. This law is under revision by city council in order to
whether cancel or continue.
17 FAO Data base. http://faostat.fao.org/site/567/DesktopDefault.aspx?PageID=567#ancor
39
in South America. Production though, is at risk, attributed to lack of confirmed new oil reserves
and uncertainty associated to investment flows for exploration and drilling activities (See Figure
5).
Figure 5 Colombia’s Oil production and consumption
Coal is one of Colombia’s strengths, with 7,670 million short tons (MMst) of recoverable coal
reserves in 2006, but just a small amount is dedicated to internal consumption (See chart 6).
Actually, its export levels place Colombia as fifth largest coal exporter in the world (EIA, 2009a).
40
Figure 6 Colombia’s Coal production and consumption
Colombia counts on a diversity of energy choices, but none of them are absolutely sustainable
in the long run. The country is running out of oil, hydro is highly threatened by possible droughts,
and coal’s share in internal industry is not heavy, not to mention high pollution contributions;
hence investment in new alternatives, such as bioenergy, must be considered and welcomed, after
proper studies and commitments to sustainable production standards.
1.4.3 Biofuels in Colombia

Colombia is starting to develop a complete proposal in order to seize the eventual economic
compensation offered by the bioenergy industry, thus taking advantage of its land capacity and
the potential of its agricultural sector. Colombia, with agribusiness entrepreneurs, government
support, and international interest, has decided to step firmly into this market through a nascent
legal framework, continuing with agricultural R&D focused on energy production and creating the
adequate climate for foreign direct investment.
This section presents a review of the types of biofuels and the stages used to produce
Bioenergy in Colombia. This information will be widened later on for sugarcane based ethanol
and palm oil biodiesel. In spite of this, it is necessary to understand which factors are driving such
a boom for this industry, so an explanation about R&D and the legal framework will be done.
1.4.3.1 Research and Development (R&D)
41
Colombia has been following the path of biofuels research for almost 30 years and it has
accumulated several research groups that are working in several areas, including: basic research,
agricultural projects, product transformation, biotechnology, engine applications and
environmental impacts.
It is remarkable the interest of research groups born from private initiative, directly linked
with agribusiness chains: CENICAÑA18 for instance is the Colombian Sugarcane Research Centre, it
was funded in 1977 and it is sponsored directly by ASOCAÑA19 (established in 1959). The same
happened with CENIPALMA (Colombian Research Centre for palm oil), which works since 1991
under supervision of FEDEPALMA 20 , wich in turn was created in 1962. Despite this, research
centers are not specifically designed for supporting the biofuel industry, their efforts are focused
on these products because they concentrate R&D to point out efficient crop methods and
biological varieties that increase yields per hectare.
Other independent R&D centers are also present around the Bioenergy industry. That is the
case of CIAT 21 International Research Center for Tropical Agriculture. This center is leading
cassava-based ethanol production in the LAC region, a pilot plant was recently built as is explained
in appendix 1.
Some research projects are starting to be directed exclusively to bioenergy production. The
Biotechnology Institute belonging to Universidad Nacional 22 just discovered a bacteria that is
capable of eating glycerin (co-product of biodiesel and highly contaminating if it is not treated
adequately) transforming this substance for further processing (La Rotta, 2009).
In order to enhance sustainable production of biofuels and to promote strategic lines for
innovation and scientific research in Colombia US$ 1,180,000 was planned to investe from 2008
to 2012 (MEN, 2008; Rojas R, 2008). These funds were supposed to come from ‘Inter-Americas
Development Bank’ (IDB) giving more than 40% of the total investment. The ‘Knowledge
Partnership Korea Fund for Technology and Innovation’23 contributed US$350,000, and the rest
being donated by ‘Instituto Colombiano para el Desarrollo de la Ciencia y la Tecnología’, ‘Francisco
18 Centro colombiano de investigación de la caña de azúcar: www.cenicana.org

19 ASOCAÑA Asociación de cultivadores de caña de azúcar de Colombia. Colombian sugarcane growers
association. Website in Spanish: http://www.asocana.com.co/
20 FEDEPALMA Federación Nacional de cultivadores de palma de aceite. National Federation of Palm Oil Growers.
Website in Spanish: http://www.fedepalma.org/

21 CIAT: Centro Internacional de Agricultura tropical. Website in Spanish www.ciat.cgiar.org/inicio.htm .
22 The biggest public university in Colombia
23 This contribution from the Korean government is part of a big help (US$ 50 million) to Latin American countries
in order to strengthen their science and technology capacity. The inclusion of Korean Partnership was announced by
Ciro de Falco, IDB Executive Vice-President in his opening speech for the Global Forum: Building Science, Technology,
and Innovation Capacity for Sustainable Growth and Poverty reduction (January 2007).
42
José de Caldas’ (COLCIENCIAS)24(MEN, 2008). So far, there has been no report on the public light
regarding this particular initiative.
1.4.3.2 Legal Framework

Regardless of longstanding interest in bioenergy/biofuels research, legislation around biofuels
in Colombia only started some years ago with Ley 693 de 2001 25 . In this law the regulation
indicates that gasoline and diesel must be blended with ethanol. Despite the advanced condition
of the market at that, the standards were not clearly established. With a later resolution in 2003
this situation improved, by recognizing the importance of biofuels and the necessity to expand the
supply. Initial it demand that cities with a population over 500,000 should mix regular gasoline
with ethanol in a proportion of 10±5% to create what is known, nowadays, as regular oxygenated
gasoline. Mandatory use started in September 2005. Some tax-exemptions in the
commercialization chain were released to boost the production, and the prices would be
controlled by the Government through the Ministry of Mines and Energy26.
Biodiesel crops were given tax-exemption within a general law for agricultural development:
Ley 818 de 2008. Law 818 of 2004 had some discrimination between crops and a lack of precision
in the definition, so it was consequently corrected a few days later in Ley 939 de 2004. By doing
so, crops used for creating biofuels for diesel engines (bioethanol, biodiesel, biomethanol,
biodimetileter, Synthetic Biofuels, biohydrogen and vegetal oils), were tax exempt from the
beginning of the production for the next (now standardized) 10 years. Further legislation has been
published to fine-tune the standards in order to raise them, and hence improve quality and
performance in engines.
1.4.3.3 Investment
In 2006, a consortium of Colombian companies announced that they would build three
ethanol plants in the country, with a total production capacity of 5,600 bbl/d, however, that has
not happened. Contrary to coffee, biofuels have to be processed domestically, so the export of
unprocessed commodities can be avoided (J. A. Mathews, 2008), generating local development.
These plants mainly target export markets, but will also sell some of their production domestically.
ECOPETROL formed a joint venture in 2007 with local palm oil producers to build a biodiesel plant
in the city of Barrancabermeja, with a capacity of 2,000 bbl/d. ECOPETROL aimed to blend most
of the plant’s output with conventional diesel fuel produced by its refinery in the city (EIA, 2009a).
24 Colombian Institute for Science and Technology Development

25 Law 693 of 2001: decrees the rules for the usage of fuel alcohols, creates stimuli for their production, marketing
and consumption, and also lays down other provisions.
26 Resolución no. 180836 de Julio 25 de 2003. Resolution N. 180836 July the 25th of 2003: which defines the price
framework for Regular Oxygenated Gasoline.
43
The IDB is also planning to finance a US$20 million palm based biodiesel plant that will
eventually produce up to 100,000 tons of fuel per year.
Some exotic varieties such as Jatropha are attracting the attention of investors in Colombia,
trying to replicate the successful African experience. In particular, Oilsource Holding Group Inc.
and Abundant Biofuels Corporation are eager to bid on Colombian soil with an estimation of
US$45 million. It brings an appealing chance to diversify feedstock in Colombia bioenergy plans
and partially avoid the food vs. fuels discussion.
1.4.3.4 Regarding biofuels: what is produced in Colombia and how?

Nowadays in Colombia, there are different sources of alternative energy: wind power is
generated on the North coast in the Jepirachi plant in the Department of La Guajira, several hydro
dams are located throughout Colombia supplying most of the electricity to the energy grid, and
now it is the turn for bioenergy: today this South American country is producing ethanol and
biodiesel, and there is a project for biogas.
1.4.3.5 Bioethanol
Bioethanol in Colombia is partially based on starch extracted from maize and cassava crops.
Maize has the highest acreage among biofuel feedstock sources 27 . Maize crop area has been
fluctuating substantially in the last 2 decades, but the current level is slightly lower than 20 years
ago, close to 0.6 million hectares (See figure 7). Cassava is also a starch source and its area has
practically remained constant from the early 1990’s but has a remarkable production growth using
the same area (its production has changed 66% in the analyzed period and the cultivated area has
varied by 16%, see figure 8).
27 This acreage refers to total commodity cultivated for different proposes including feed and food, and other
industrial aims.
44
Figure 7 Land indicators of selected Comodities
Harvested Area of selected Comodities, Agricultural Land and Permanent meadows and pastures
Harvested Area of selected Comodities,

Agricultural Land and Permanent meadows
and pastures
900 50000
800 45000
700 40000
35000
600
Thousand Ha
30000
500
25000
400
20000
300
15000
200 10000
100 5000
0 0
1980
1990
2000
1970
1972
1974
1976
1978
1982
1984
1986
1988
1992
1994
1996
1998
2002
2004
2006
2008
2010
2012
Cassava Maize
Oil, palm fruit Sugar cane
Agricultural area Permanent meadows and pastures
Note: Agricultural area and Permanent meadows and pastures are measured in the seconday axis
FAOSTAT | © FAO Statistics Division 2013 | 11 December 2013
45
Figure 8 Production of selected Commodities in Colombia
Production of selected Commodities

in Colombia
4,0 50
3,5 45
40
3,0
35
Million tonnes
2,5 30
2,0 25
1,5 20
15
1,0
10
0,5 5
0,0 0
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
Cassava Maize Oil, palm fruit Sugar cane
Note: Sugarcane is measured in the secondary axis.
Currently, most of the ethanol industry in Colombia is alcohol-based, hence sugarcane is the
preferred input due to its high productivity28, reaching levels of 90 ton/ha, which is approximately
8 times cassava productivity (See figure 9). It is estimated that between 37,000 and 50,000
sugarcane hectares (8.2% and 11.1%) and 3000 cassava hectares (16%) are dedicated to producing
ethanol (Rothkopf, 2007).
By 2007, Colombia had 5 processing plants to produce sugarcane-based ethanol and it was
able to produce 730 thousand liters(Honty & Gudynas, 2007). Recent data published by
Fedebiocombustibles shows no change in the number of plants, however there was an increment
in the productivity, which can be seen by an increase of the installed capacity reaching 1’250.000
l/d.
28 Colombia is placed in world top 10 sugarcane producers
46
Figure 9 Yield of selected commodities in Colombia
Yield of selected commodities in

Colombia (tonnes/ha)
25 160
140
20
120
15 100
80
10 60
40
5
20
0 0
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
Cassava Maize Oil, palm fruit Sugar cane
Note: Sugarcane is measured in the secondary axis.
Most of sugarcane production in Colombia is concentrated in the Cauca Valley (Southwest).

At the present time, further growth has been hampered by unavailability of land in the zone. For
that reason CENICAÑA, recommends creating intensive crops and a big extension of land is
planned to this end (see figure 3). This land was chosen because currently it is used for low density
livestock pastures (Toasa, 2009). It is important to stress the risk in the aforementioned: Colombia
has several biodiverse hotspots, therefore, an indiscriminate implementation of energy crops
cannot be made without putting these at risk. In chapter 7 this expansion potential will be
explained in more detail.
Processing technology to treat sugarcane in Colombia is being brought from India and it has
some advantages, including: it produces a low volume of vinasse29 and allows them to be further
processed and deliver fertilizer to market. In addition ethanol plants in Colombia use about one-
third of the water of Brazilian plants and about half of the energy (Toasa, 2009). However the
sugarcane variety used in Colombia needs heavy irrigation which is avoided in Brazil.
29 Vinasses are a big threat for water sources and for soil conditions.
47
Table 4 Differences between Brazilian and Colombian ethanol industries
item Brazil Colombia

Vinasse (l)/ethanol (l) 15 a 1- 2 a
Tons of sugar cane (million) 2012 588 b 38 c
Cost (USD/GJ) 14 d 18.2-21.5 a
million l/y (2012) 23216 b 333 e
price Usc/l (2012) 63 f * 121 e *
a Toasa
b Sugarcane.org (2014)
c Faostat
d Chum et. Al . 2011
e Fedebiocombustibles website
f (Barros, s. 2012)
* calculated based on the source
(Barros, 2012; sugarcane.org, 2014)
Additionally, sugar mills in Colombia are energy self-sufficient, using burned bagasse as a
power source. In fact, the energy produced is higher than the required amount for the factories,
for that reason surplus is sold to the national energy grid.30
In spite of counting with higher yields in terms of tons of sugarcane per ha, Colombia handles
higher productions costs and prices, and this is mostly due to the fact that in Brazil alcohol industry
has been from the mid 70’s, whereas in Colombia is just starting to mature.
Literature does not provide detailed reference regarding maize ethanol production, but there
are some notes around exotic cassava production in the country (See appendix 1).
1.4.3.6 Biodiesel
Biodiesel production in Colombia is derived from palm oil31, because other oleaginous sources
have been reduced and are not competitive (Honty & Gudynas, 2007). Contrarily, palm oil crop
areas and production have increased rapidly (on average 13% and 11% respectively yearly, See
charts 7 and 8).
Colombia counts three producing regions that are able to provide nearly 1.7 million liters/day,
and 5 recognized processing plants. In chapter 6 a complete description of the Colombian
biodiesel production will be presented.
30 Some incentives are being created in order to attract investors to create 230 MW. Nowadays the industry is
able to produce 90MW. Expanding capacity requires about US$100 000 and government support.
31 Colombia is among the world top 5 palm oil producers (being the premier one in LAC region).
48
1.4.3.7 Opportunities and threats
The Colombian bioenergy industry brings a dual challenge:
On one hand, it has the chance to develop an enormous comparative advantage. To develop
alternative energies that not just implies a decrease of oil imports but opens the possibility of a
nascent exporting industry, beyond just agricultural commodities that have been usually
commercialized as raw materials or as products that face high levels of competition in
international markets or with low added value (e.g. raw sugar, unrefined oil) (See appendix 2).
The boost of this industry can have collateral impacts on other social aspects, such as job
creation and income distribution. The biofuels industry is manpower-intensive, so it can have a
positive impact on the labor market. In 2004 the palm oil industry contributed to employment
with the creation of more than 30,000 direct jobs and about 60,000 indirect ones (Fedepalma,
2004). Sugarcane, by 2008, provided 36,000 direct jobs and 216,000 indirect (Toasa, 2009). If
more agribusiness projects are implemented in this industry, economic well-being can be boosted
and social conditions as well.
The implementation of biofuel regulations contributes to a positive environmental balance in
major Colombian cities, expressly: with the use of biodiesel, pollution emitted by low quality diesel
used in the nation will eventually diminish.
The Colombian bioenergy industry is growing up, but to reach its maturity it has to develop
internally, reaching a solid position through adequate infrastructure and offering big and small
producers an equal chance to play. After that, it can think about export possibilities. The
establishment of a Biofuels industry has impacts along the whole chain, not just the processing
component. For that reason, current distribution is suitable and requires only small changes in
pump stations. However, the transport fleet will require major engine tuning to work properly
with proposed blends. In addition to this consumption factor, it is fundamental to demand
stimulation starting from inside. Today ethanol covers 80% of Colombian territory using a blend
of 10% ethanol and 90% gasoline. However this market will grow substantially with the
introduction of Flex-fuels vehicles (Guzman, 2009)32.
The goal is try to cover 100% of national territory with an E10, and once a bigger supply is
developed, the content of ethanol in the mix will be increased up to 20%. After that exports will
come onto the agenda.
Colombia demonstrates a robust legal framework, showing a strong government commitment
to the industry. Of course, it has paid off with almost twelve bioenergy functioning projects since
32 According to Hernán Martinez, Minister of Mines and Energy, the decree 1135 of March 2009 claims that
from 2012 all assembled or imported vehicles must have the possibility to work with blended fuels up to 85%
ethanol in the mix.
49
law 693 was released in 2001. Investors and agribusiness sectors are encourage to keep working
on and enhancing productive capacity.
Nonetheless, it seems that some connections between politicians and agribusiness leaders
has created big doubts about the transparency of policies: in June 2008 ethanol price in Colombia
was COP$4496.88 per gallon, (approximately US$2.15) in April 2009 this price has increased to
COP 7698.39 (US$3.75) due to a price calculation scheme proposed by the government (Chacón
& Gutiérrez 2008)33. That means a rise of 71% in 11 months.
A debate is currently being held about this topic: Agribusiness and producers argue that the
modifications try to cover failures that generate losses in the near past, due to Colombia just
starting and developing the industry and some support is needed to keep operating in the market.
However, some senators, such as Jorge Robledo, and economic analysts, such as Salomon
Kalmanovitz, say that it is a perverse distortion from international prices and it does not allow the
country to reduce general prices. They point out that the sector is today highly patronized by the
government with tax exemptions (40% deduction from income tax over fixed asset investment)
plus low credit and other incentives (CEET, 2009).
According to the government, the formula used to calculate the price was designed to
encourage ethanol suppliers and boost the quantities produced, in order to reach the proposed
goals to cover most of the country, but it has recognized that some errors could have been made
and should be corrected.34
Finally, multinationals are accused of hiring or creating paramilitary groups, with hidden
government approval, with the intention of securing their investment and to cover it from possible
33 The calculation scheme is based on opportunity cost: The mechanism calculate the price based on the
amount of sugarcane needed to produce a quintal of sugar (45 kg). The previous one indicated that it was possible
to produce 29.2 liters of ethanol but the current one says that just 21 liters can be made out of it.
34
Based on the resolution 181232 (29/07/2008), issued by the Ministry of Mines and Energy, the Sales
Revenue for alcohol fuel producers (IPAC(t)) is defined by the following formula:
IPAC(t) = max [COP$4696.88, EqAC(t)1, EqAC(t)2]
Where IPAC(t) refers to the Sales Revenue for alcohol fuel producer, as the result of the sale of such product
(expressed in gallons and in standard conditions, i.e. at a temperature of 60°F).
COP$4696.88: Expresses a minimum price per gallon and it has to be paid to the producers if some other
conditions are not convenient. This value has to be adjusted by use of the price producer index (IPP) (70%), and
the official exchange rate (TRM). The price is fixed and adjusted by technicians at the Ministry.
EqAC(t)1: Is the value of a gallon of bioethanol assessed by its equivalent of white sugar in international
markets. This value represents the average of exporting parity of refined white sugar values, based on the No 5
contract at the London Futures Exchange (LIFFE), using the first 25 days of the month. The whole formula can be
seen in the reference.
EqAC(t)2: Is the value of a gallon of bioethanol assessed by its equivalent of Colombian gasoline in
international markets. This value represents the average of exporting parity of Colombian gasoline using the first
25 days of the month. Some adjustments are applied to the value taking into the account octane rating
enhancements and sulfur diminishments. Some fine tuning is also implanted by the decrease in commercial value
of the oxygenated gasoline by its corresponding decrease in energy content in comparison to regular gasoline. The
whole formula can be seen in the reference.
All the acronyms have been left in Spanish and they can be found in the List of Acronyms.
The whole formulation is found in Spanish here: (Ministerio de Minas, 2008)
50
attacks from insurgent groups such as FARC guerrilla or other criminal organizations. On the
contrary, the military capacity of these paramilitary groups have been used against local small
farmers in order to displace them and grab their land (See Appendix 3), and used against union
leaders to control and scare the population.
This fact is not exclusively linked to the bioenergy industry, but should be monitored by NGO’s
and the government in order to improve local population conditions and also facilitate commercial
agreements.
Environmental studies done by research centers linked with agribusiness organizations
usually address harvest productivity and resource efficiency. Good results have been obtained
with R&D such as vinasses-fertilizer conversion, innovative cassava inclusion in the LAC region and
glycerin post-production handling; so private and public financing sources are fundamental and
still needed. However, considerations have to be taken into account to avoid environmental
impacts in ecosystems previously selected for new crop implementation. The Government has to
be careful with land allocation and permission for bioenergy development- the Amazon forest
area has to be preserved, and Andean and Pacific biodiversity should be safeguarded as well.
According to the government, alimentary security in Colombia is not imperilled by bioenergy
development- there are 7.5 million hectares suitable for biofuels (PROEXPORT, 2013).This area
have been calculated by experts of the Minsitry of Agriculture, but there is not discrimination of
the method employed, in order to identify if such land represent a baseline potential or the
maximum achievable without compromising alimentary related crops. Therefore, although this is
an appealing option, poverty and undernourishment are a reality in the country so wealth
distribution has to be one of the goals of the industry.
However, according with FEDEBIOCOMBUSTIBLES, in Colombia the area used for both
sugarcane and palm oil is less than 1% of the agricultural area within the national territory (21.46
million ha). In addition ethanol production use nearly 40.000 ha out of 223.905 that are employed
for sugarcane plantations. In the production of biodiesel it is utilized an area of 160.000 ha out of
430.000 ha of palm oil crops (USCO, 2012) Based in the aforementioned, there is little prospect of
bioenergy crops in Colombia representing (under curren conditions), a threat to food security.
So far in Colombia, biofuels production focuses on 1GBF, where sugarcane and palm oil are
the main feedstocks. There is no biofuels of more advanced technologies commercially available,
but research efforts have been conducted in order to explore academic knowledge, and
technological and financial capabilities. These progresses allows to reduce the gap with those
producers that are located in the forefront of technologies, and albeit it is not possible to deploy
51
such initiatives due to costs, it keeps updated the Colombian scientific community around
production possibilities (see further information in the final appendix).
Colombian bioenergy industry has now taken off with a clear goal of becoming a major player in
the global industry. This can be seen as the result of the congruence of several factors such as
dedicated efforts of R&D, important financial contributions of both private and public sectors, and
a legal framework that ease the conformation of a mature domestic market, which in its initial
stage counts with a strong support of the government through a favourable legal framework.
Risks are present in this path, such as public order conditions and weather uncertainties that
are not possible for the producers to control. Research efforts do not always draw positive results
in the short run, and it is required continuity, at this stage, in the governmental support and
patience and attention from private investors.
Government efforts are needed to promote an institution that, from a political and technical
perspective, leads and control production and trade processes and safeguard all-parties’ interest,
to prevent abuses and guarantee sustainable results.
1.5 Conclusions and general comments

Worldwide the search of alternative energies has become imperative, and of course
developing countries such as Colombia are not isolated in this matter.
Colombia has several energy sources that allow it to remain temporarily independent in the
energy market; nonetheless its oil reserves have been decreasing and, thus imminently, the
country will become a net oil importer.
Hydro provides a good backup for electricity production, but transportation and other
industrial needs are not within its scope. Not to mention the possible risk associated with
droughts. Developing an alternative, such as bioenergy/biofuels, brings opportunities and
responsibilities. If land availability and institutional willingness are merged in a project of
sustainable production of biofuels, undesirable consequences for population and the environment
can be avoided, then, on the contrary Colombia can accompany, rather than compete, with other
countries i.e. Brazil and become a key supplier of bioenergy in the future.
Sustainable certificates, hopefully under multilateral support, can help market forces to find
a win-win solution for human kind and nature, but sustainable production conditions must be
studied, exposed and implemented, as a policy in the short run, but preserved in the long run.
Colombia has already started its biofuels industry, but, it is important to establish to what
extent Colombian biofuel production can be considered sustainable, and what is its potential in a
domestic market and also on a global scale
52
In the economic aspect Colombia requires a result where can be demonstrated that biofuels
production not only bring new dynamics to rural development, by increasing income of farmers
and feedstock processors, but also by opening foreing markets to agricultural commodities.
In the environmental part is it mandatory to preserve biodiversity hotspots and maintain or
improve conditions of natural resources. This implies good practices in land and water
management and also positive reponses in air quality assessments. In general this has to be
achieved by reducing overuse of agrochemicals (fertilizers and pesticides), as well as by improving
technological routes (which either enhance the performance of current feedstocks, or enable the
use of new materiasl to be converted in bioenergy products), and by achieving attractive energy
balances35, like those reached by forefront bioenergy players. The GHG emissions must be reduced
through the implementation of bioenergy for transportation, having into the account LUC effects.
In the social aspect, there is the need of improving housing, health and education conditions
for the nearby population affected by the establishment and processing of energy crops.
Processing companies need to be engaged with responsible practices, and by respecting labor
laws and by working under fair production standards. Expansion cannot lead to force
displacement of vulnerable communities. Land distribution, proprietorship and use regarding
bioenergy requires close up scrutiny to guarantee a complete sustainable biomass-based product.
Is it possible for Colombia to get there? Is it walking in sustainable bionenergy track (despite
that its bioenergy industry at present day is supported by 1GBf technologies)?. The anticipated
answers to such questions are positive, and in addition, it can be said that bioenergy projects
count on boundaries for expansion possibilities. Colombia counts on a set of climatic, edaphic,
social, economic, environmental, infrastructural (among others) conditions, that led to
understand that energy crops cannot be employed indiscriminately to comply with ambitious
targets. However, this document present an assessment where an increase of the cultivated area
for the main two feedstocks to produce liquid biofuels in Colombia is analised under the light of
restrictions of different order, representing the bounds of such mentioned limits, as it is explained
further down.
35
Ramirez Triana argues that there is no reason to undertake an active support to a bioenergy industry
if the latter is not capable to lower the amount of fossil fuel needed to propel vehicles without incurring in
major modifications to the existing transportation fossil fuel-based fleet.Therefore an attractive energy
balance is such where the Output/Input energy ratio draws results substantantially higher than 1, indicating
that the number of equivalent units of bioenergy than can be produced out of 1 unit of fossil energy (See:
(C.A. Ramírez Triana, 2011)).
53
However, in order to prove the aforementioned to be true, the upcoming chapters will try to
answer several questions which are at the core of this thesis document36. Those questions will be
focused in the ongoing industry, i.e. first generation biofuels, based on sugarcane and palm oil
mainly, due to the short and midterm conditions of investment in the Colombian bioenergy policy
agenda.
Main questions:
1. The panorama for Colombia has already been presented in this chapter, but what are the
current biofuel production conditions in other countries that can be considered similar
and used as a reference, i.e. which countries from the LAC region? What issues emerge in
producing and using biomass based fuels?
2. What are the environmental problems that are faced by a nation such as Colombia? What
kind of relationship exists between them and biofuel production and implementation?
3. Within the domestic market, how are cost and price conformed? Which actors play a role
along the production chain regarding price/cost formation?
4. How is the whole production chain from feedstock production to final consumer
organized?
5. How sustainable are sugarcane based ethanol and palm oil based biodiesel under a LCA
perspective?
6. To what extent is it possible to expand current energy crops in the Colombian context?
Taking into account biophysical, legal, ecologic, and social restrictions explored formerly?
In order to clarify the scope of the thesis is important to indicate that this document do not intend
to present potential for biomass production including potential future developments of food
demands neither production and improvements in agricultural and livestock management, but
rather focus on current production conditions in order to assess its sustainable performance and
its expansion potential under a sustainable production path.
36
From chapter 2 to chapter 5 most information was gathered from the public literature and provides
a descriptive and updated background of the biofuel industry in Colombia and the LAC region, whereas
the information presented in Chapters 6 and 7 comes from CENICAÑA and CENIPALMA
54
2 BIOFUELS IN THE WORLD AND THE LATIN AMERICA (LAC) REGION
The aim of this section is to provide a comparison of the future Colombian case with its immediate
neighbors within the LAC region, but also with some global examples. In summary here will be
reviewed biofuels production, and use management regarding policies impacts on the
environment, socioeconomic impacts, and finally food security. By doing this the reader will be
able to understand the main drivers behind each particular scenario and the degree of
development of such goals under those achievements reported in the literature.
2.4 Policies and regulation for biofuels implementation at a global level
The Biofuel industry owes its current development and diffusion to the existence of several
ambitious policies that have been government-oriented, rather than market-oriented. In most
countries around the world it is evident that some kind of political support to bioenergy projects,
and in consequence some economic mechanisms, emerge to underpin those initiatives. Among
the main features, either qualitative or quantitative, is the presence of a combination of
mandates, direct subsidies, tax exemptions, and technical specifications around biomass
production, biofuel processing, bioenergy final use and international trade.
In the same way that biofuel manufacturing processes and markets have gained more ground
and have become more mature, the related supporting policies have evolved along with these
changes. Initially, most of the policies were basically directed to the creation of subsidies.
However, nowadays the policy agenda needs to go beyond fiscal tools, and demand a more
interactive and effective international market scope. Therefore, it requires a policy more focused
in not only supporting domestic production, but also penetrating foreign markets. This variation
of strategy obeys the high costs that are implied in a continuous subsidy program, that it is paid
mostly from general public funds. In the case of mandates, most of the financial burden rests on
the end user.
As these kinds of bioenergy products provide an alternative to regular fossil fuels, any attempt
to define to what extent these policies are sound (from an economic perspective) depend on the
current and future oil price. The lower the oil price, the higher is the cost of an economic measure
in favor of bioenergy.
Additionally, some of these policy proposals have turned out to be too ambitious, so they have
required revision and adjustment from the initial schemes. The majority of policies also depend
on the political climate that is in place. For instance, part of the financial aid that was directed to
55
bioenergy initiatives had to be directed to other ends, given the crisis faced by some members of
the EU which count on a profoundly reduced fiscal budget.
Nevertheless, there are a big number of both industrialized and developing nations that have
implemented or are implementing different sorts of policy tools that aim to boost biofuel market
development. The regulations of some countries in the EU or USA have been under revision and
have undergone some modifications. For instance, the USA biofuel policy reduced the initial
target of producing 100 million gallons of cellulosic ethanol, to only 6.5 million (Gibson, 2010).
Amendments of this nature emerge because there is not enough domestic capacity to reach such
goals under first generation technologies, and there have been several setbacks in the availability
of second generation technologies, in regard to what was initially projected (Hebebrand & Laney,
2007). The discussion on targets has been permeated by the debate on the impact of biofuel
production on food prices, thus a mere strategy promoting economic efficiency is not enough, and
responsible criteria need to be considered. As consequence, more sustainable production is now
on the current national bioenergy plans.
2.4.1 Main regulations
2.4.1.1 United States of America
The American policy framework has a long history, and different nuances, around two
strategic targets: energy security and rural development.
As a consequence of the oil crisis that took place in the 1970’s there was an initiative to
support production and use of alcohol fuel for transportation purposes. Under this scenario it was
provided a 100% tax exemption on oil retailed price, which reached 1.05 cents per liter.
During the 1980’s another crisis hit the USA, however, this time it was related to the
agricultural sector, particularly with the corn agribusiness sector, so ethanol production was an
opportunity to bring back the sector to its former prosperity. Thereafter, ethanol gained more
ground due to the prohibition of lead in regular gasoline, and given favorable octane rating of
alcohol. In addition, some amendments of the Clean Air Act in 1990 established a program of
oxygenated fuel, where any oil product for transportation with high contents of carbon monoxide
must have at least 7% of oxygen. After some other regulations, finally in the early 1990’s extensive
use of biofuel reached its consolidation (Dufey, 2006).
Later, came the Biomass Research and Development Act of 2000, which provided a framework
to “facilitate consultations and partnerships among Federal and State agencies, agricultural
56
producers, industry, consumers, the research community, and other interested groups to carry
out program activities relating to the Initiative” (U.S. Congress, 2006).
After this, the 2002 Farm Bill was a governmental attempt to strengthen the agricultural
economy over the long term, and design a specific chapter to nurture all these biobased projects.
Thus, some funding plans were created to sponsor construction of biorefineries, biomass
research, biodiesel education programs. Such plans illustrate the linkage of bioenergy projects in
the context of renewable energy grants (House of Representatives, 2002).
Under the American Jobs Creation Act formulated in 2004, the Volumetric Ethanol Excise Tax
Credit (VEETC) was created. With this tool ethanol production was subsidized and it was
worth US$6 billion a year. This policy was highly controversial, because it became a trade barrier
with other international and more competitive alcohol sources, and it was felt to be expensive by
several taxpayers. It finally, after several modifications, came to an end in 2011 (Lyutse, 2011).
Additionally, the USA currently has a surtax of 14.27 cents per liter on bioethanol imports over the
regular ad valorem tax of 2.5% (Tyner, 2008).
Biodiesel production was favored with the VEETC policy as well. Those biodiesel
manufacturers that use energy crops as feedstock (e.g. soybean) are candidates to receive a
subsidy of 26.42 cents per liter, whereas those that produce biodiesel from oil waste can be
granted some credits of up to 13.21 cents per liter.
The Energy Policy Act of 2005 takes a general overview about energy production, distribution
and use, and the policy breaks down according to the variety of energy sources and carriers. There
is a special section on renewables and for all bioenergy. Section 942 of that document also put on
the table ambitious targets - on one hand to redirect renewable energy research funds to
bioenergy applications, and on the other, to boost biobased product commercialization,
particularly those of second generation technologies. For instance, the document mentions the
production of one billion gallons of cellulosic ethanol per annum by the year 2015. Another
important goal is to guarantee that by the year 2015 biofuels are cost competitive with regular
fossil fuels, i.e. gasoline and diesel. Finally, there is a social goal that was not evident in former
policies - It is important to “ensure that small feedstock producers and rural small businesses are
full participants in the development of the cellulosic biofuels industry” (U.S. Congress., 2005).
From that Energy Policy Act emerged the Renewable Fuel Standard (RFS) and its subsequent
amendments. Within it is established that every fossil fuel produced in the USA must have a
minimum content of renewable fuels. It is also the milestone for the American energy security
strategy in terms of biomass use for energy production. Environmental concerns for the future are
also tackled in this regulation, by mandating that the volume of renewable fuel required to be
57
blended into transportation fuel will be increased from 9 billion gallons in 2008 to 36 billion gallons
by 2022 (EPA, 2010). The direct implication of these biofuel implementations on the environment
would represent a substantial mitigation of the GHG’s, tested under LCA’s: 20% for corn-based
ethanol, 50% for advanced biofuels, except for cellulosic ethanol that will comply with a rigorous
reduction of 60% of GHG´s (FAO, 2008).
From this regulation structure it is evident the strong role that cellulosic biofuels play in the
American energy agenda, focusing research efforts into enhancing yields and promoting the use
of biorefineries. Nevertheless, this experience has overestimated the capacity of research on the
cellulosic front. Based on the setbacks regarding the availability of this kind of fuel, the USA
government decided to reduce the cellulosic ethanol production target from 100 million gallons
to 6.5 million of equivalent bioethanol (Gibson, 2010).
2.4.1.2 European Union
The EU was experiencing a decline in the agricultural sector during the 1980’s and the rural
livelihood was starting to have a crisis. At the same time the energy needs of Europe were soaring,
thus, these conditions together were the main drivers to promote biofuels production in the EU,
particularly biodiesel.
Notwithstanding, it was only in the late 1990’s when the biodiesel market was fully developed.
Similar to the American case, in Europe the policies were formed by a combination of mandates,
subsidies and trade barriers.
Biofuel regulation in Europe has evolved as a result of changing targets, technologies and
market opportunities, hence the set of norms, laws and standards have been moving along with
the current and potential circumstances that bioenergy has faced until now, and the possible
scenarios that they would have to deal with (Johnson & Roman, 2008).
Among all the regulations within the EU there are three pillars that define the great extent
the European Bioenergy guidelines.
The first one is Directive 2003/30/EC about the promotion of the use of biofuels or other
renewable fuels for transport. In the first place, this directive recognizes the potential of biomass
material for bioenergy purposes, using agricultural and forestry products, and residues and waste
from forestry and agrifoodstuffs industries. It also calls attention to the share (30%) that
transportation takes from the final energy consumption total, and biofuels implication in the
reduction of carbon dioxide emissions and energy security enhancement. The directive reminds
us of the initial purpose set on the Green Paper “Towards a European strategy for energy security”
where it is established that by the year 2020 20% of the conventional fuels used in road transport
should be substituted by alternative fuels, but competitiveness and availability need to be
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guaranteed. Finally it sets a reference goal of using a blend of at least 2% 37 of biofuels with
conventional fuels for all the members of the EU. This target was due on 2005. Later on the target
was raised to 5.75% and it was supposed to be reached by 2010 (EC, 2003d).
The second milestone in the bioenergy biofuel policy is Directive 2003/96/EC, which stresses
the field of taxation of energy products and electricity. The document recognizes the importance
of taxes in the conformation of energy prices, and the impact of the latter in transport and
environmental policies. The directive acknowledges that although taxation is necessary, it is an
important support to alternative energy sources and for that reason it is recommended to
implement discretional tax exemptions or reductions per country for renewable forms of energy
(EC, 2003b). Under this directive specific actions were established by France, Italy and the United
Kingdom. The French government asked for permission to apply reductions in excise duties from
2003 to 2009: these reductions “shall not exceed EUR 35.06/hl or EUR 396.64/t for vegetable oil
esters, and EUR 50.23/hl or EUR 297.35/t for ethyl alcohol derivatives used in the mixtures”.
However, these reductions can be revised at any time to avoid extreme market distortions.
In a similar way, Italy decided to apply for differentiated rates of the excise duty on mixtures used
as motor fuels containing 5% or 25% of biodiesel until 30 June 2004. Like the French case, Italy left
the door open about a possible revision and adjustments.
The British case, just like the Italian one, is aimed at the biodiesel industry. The UK applied for
differentiated rates of excise duty for road fuel containing biodiesel and biodiesel used as pure
road fuel, until 31 March 2007.
Finally, the third pillar on the bioenergy policy is represented in Directive 2003/17/EC, which
refers to the quality of petrol and diesel fuels. The document establishes a limit of at least 5%
bioethanol content in regular gasoline due to environmental reasons, however that measure is
being reviewed to be raised to 10% (EC, 2003c).
Those directives became the backbone of European bioenergy policy, but they were
reinforced by a set of other instruments as explained below. Biofuels were supported by the
Common Agricultural Policy (CAP) from the European Union. This plan, formulated in 2003, is an
incentive to those that possess energy dedicated crops. Under the CAP appears a figure of “carbon
credit”, which pays EU$45/ha to those that use crops for energy purposes and have a land
extension no greater than 1.5 million hectares. This credit is available to any kind of agricultural
crop, except for sugarbeet and hemp, if, and only if, they are employed in approved energy uses
and are under a production contract that benefits such a purpose. Any new energy crop harvested
in former agricultural production land is not eligible for carbon credit. (EC, 2003a)
37
This percentage is given in terms of equivalent energy content.
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Another form of support received by the bioenergy industry was the Renewable Energies
Directive (RED), which was approved in 2008. This directive establishes an ambitious target, where
by it mandates by the year 2020 the general energy consumption of the EU, , is to be supplied by
renewable energy sources, and in addition the share of this kind of energy for road transport
purposes should be at least 10% (in the mixes of both gasoline and diesel) (Johnson, 2011). Later
on, in 2009, such target had to be modified because of environmental concerns and questions on
food security issues, if first generation technologies were to be implemented to great extent. Thus,
Directive 2009/28/EC established that the initial goals were to be implemented but under two
special conditions:
1. biofuels were to be produced following sustainable standards,
2. second generation biofuels has to be commercially available.
This directive started to work as a sustainable filter, because some minimal criteria were
established to those biofuels produced either domestically or imported. Specifically, it was
demanded that biofuels must guarantee a reduction of GHG’s emissions of 35% and energy crops
cannot be located in forestlands or wetlands (EC, 2009).
The entire European policy framework institutes a reference target for the region; however,
every member has the discretion to choose the corresponding strategy to achieve it. In some
cases, national targets go beyond these general goals, as occurs in Germany. Nevertheless, the
reality of the market is a boundary that holds back these ambitious targets in terms of economic
feasibility or sustainability soundness, and that is the reason why sometimes plans need to be
restructured as was shown before.
2.4.2 Trends in biofuel policies and regulation in Latin American and Caribbean
countries
Except for the Brazilian case, and other isolated cases including to a minor extent the countries
that belong to the Caribbean Basin Initiative (CBI), the modern bioenergy, and in particular, biofuel
development has been relatively recent among LAC countries. As a matter of fact, based on the
successful Brazilian experience and the continuous upsurge of oil prices (predominantly the
alarming escalation exhibited between 2004 and 2008 where the crude oil price more than tripled
from a price of US$34/barrel to more than US$133/barrel) the LAC region started to rapidly and
aggressively develop a biofuel industry with the aim of tackling energy security issues, reduce fuel
import as a fiscal strategy, and agricultural promotion.
All these efforts have been shaped as indicative or mandatory targets, using cases just like the
former American and European examples, i.e. introductory mixtures of regular fossil fuels with
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biofuels, along with other sorts of incentives. Nonetheless, it is quite important to understand
that there is no such thing as a regional policy on this topic. Every country has designed its own
strategy and tool set in approach to this energy option.
The next section has an overview of the LAC region policy framework, with the exception of
the Colombian case, which was explained in chapter 1 and it will be reviewed in the following
chapters.
2.4.2.1 Argentina
The biofuel sector started to be promoted in 2006, with the production and use of alcohol
fuel, biodiesel and biogas. The strategic bioenergy product in the Argentinian case is biodiesel
(Mathews & Goldsztein, 2008; Dominik Rutz et al., 2008). The Biofuel sector is framed under the
Law 26.093 of 2006. This Law has been entitled “Régimen de Regulación y Promoción para la
Producción y Uso Sustentables de Biocombustibles” (Law of regulation and promotion for
sustainable biofuel production and use) and it establishes a 15 year plan to regulate and promote
the biofuels industry, including the description of taxation benefits. Within this law was created
the National Advisor Biofuel Commission and it was comprised of several representatives from
rural sectors, technology and innovation developers, small and medium enterprises delegates,
sustainability experts and envois from the treasury department at a national level. The
commission is an open to local authorities as well, so Federal Councils can take part in the project
management and auditory process (Argentinian Congress, 2006).
The Commission, under this law, is in charge of informing, monitoring, auditing, selecting,
directing funds, and providing general planning to bioenergy projects. The commission must
safeguard the appropriate allocation of resources and subsidies granted under this regulation,
otherwise penalties may apply. Later, in 2007 Law 26.093 was complemented by the Decree 109
of 2007 (Comisión nacional asesora 2007) where the role of both the Commission and the
Regulation Authority is detailed, and the proposed blends to be commercialized are specified.
Specifically, biodiesel is designed to be mixed at 5% with regular diesel fuel (95%), also known as
B5. However, pure biodiesel (B100) can be commercialized as well. Something similar was
established for the alcohol fuel market, where the ethanol can be distributed pure (E100) or
blended at 5% (E5) (Mathews & Goldsztein, 2008).
It was designated that all biofuel production, mixing and distribution projects must be
registered for the approval of the Regulation Authority, even those that are designed to cover self-
consumption. The authority also decides which projects are eligible for tax (VAT) deduction in
capital investment; or for a differential payment on the tax over income.
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The fundamental aspect of that law was the mandatory requirement of the blending levels
(B5 and E5), established to be fulfilled by the year 2010. This decree created an estimated demand
of 220 million gallons of biodiesel and 70 million gallons of ethanol. It also created a package of
incentives for domestic producers in order to cover national demand; however the majority of the
production is currently going overseas (D Rutz et al., 2009).
2.4.2.2 Bolivia
The Bolivian position has been cautious in terms of large scale biofuel project implementation,
due to the precarious food situation that faces that nation, and the potential impact that
bioenergy plans might have on food prices.
The Bolivian bioenergy policy framework is given by three pillars built in 2005:
 Law 3152 “Fuentes de generación de energías alternativas en el departamento de Pando”
(Renewable Energy sources in Pando Department) (Bolivian National Congress, 2005),
 Law 3207 “Estimulos a los productores de Biodiesel” (Biodiesel incentives to biofuel
producers) (Ajila & Chiliquinga, 2007),
 Law 3279 “Fuentes de generación de energías alternativas en el departamento del Beni”
(Congreso Nacional de Bolivia, 2005).
The first and third law pointed out the necessity of implementing alternative sources of energy
in Pando and Beni which are two departments located in the northern region of Bolivia, on the
border with Brazil. These two regions together cover more than a quarter of Bolivian territory.
Within these laws is set the target of achieving a blending level of B10 in a time span no longer
than 10 years. Another benefits included in these laws are the total exemption of taxes (specific
and direct) on payment that is charged to regular hydrocarbons and a discount of 50% of any
other kind of ongoing taxation. Despite these incentives the Bolivian biofuel industry has not yet
awoken.
2.4.2.3 Brazil
Sugar-cane became the first large-scale plantation at the beginning of the 16th century, soon
after the plant was brought from the island of Madeira by a Portuguese expedition. This crop was
as equally important as other colonial crops, such as coffee and rubber. After the colonial period,
slaves provided the manual labor required by the industry, then European immigrants. After 1883
they had secured a cheap labor force for the sugarcane industry and had established it as one of
the most prominent industries in the country, up to and including today.
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Back in 1933, the Sugar and Alcohol Institute was founded and the first ethanol blend trial in
petrol engines took place. Further efforts were made in order to enlarge the scope of the ongoing
project, but it was not until 1973, during the oil crisis, when the Brazilian military government
decided to fully support exclusive bioethanol development, launched 2 years after the National
Alcohol Program, PROÁLCOOL (Coelho, 2005).
Under this program special engines were designed to run purely on hydrous ethanol and some
voluntary blends of anhydrous ethanol were proposed. This not only boosted the demand , but
also supply was greatly assisted by an economic package that included taxes and investments
favoring the industry; allowing new construction and the enlargement of distilleries, at the same
time that sugarcane farming underwent an important expansion.
By the early 1990’s direct subsidies for bioethanol were eliminated, but an elevated gasoline
taxation combined with a wide supply of ethanol-based cars, created a strong incentive to
consolidate the market (Coelho, 2005; José Goldemberg, Coelho, & Guardabassi, 2008). However,
at the end of the decade two simultaneous events undermined the consumers’ confidence:
 ethanol suppliers, due to a drought, struggled to provide enough fuel,
 and cheap oil prices put pressure on the program performance.
Under those circumstances the government decided, in 2001 to set up mandatory blends with
petrol, adding between 20% and 24% of anhydrous ethanol to all gasoline. More recently, in 2003,
Flex-fuel technology was developed specifically for local conditions, allowing any combination of
hydrated ethanol (E100) with a blend of gasoline with 20 to 25% anhydrous ethanol (Edward
Smeets, Junginger, Faaij, Walter, & Dolzan, 2006). This has been gaining popularity among
Brazilians and only small problems have manifested when pure gasoline is used, but this situation
only occurs during trips to other South American countries.
Regarding biodiesel, there is a program that tried to replicate the ethanol experience, called
PROBIODIESEL, which started in 2004. One year later a law was issued that mandated the use of
B2 from 2007, with increasing targets of B5 and B20 by 2013 and 2020 correspondingly. There are
also tax exemption schemes that cater to the small producers of feedstock (Garcez & Vianna,
2009).
There is also an incursion in 2GBf research, in some plants of PETROBRAS, with the intention
of producing cellulosic ethanol from sugarcane; however, a commercial scale for this initiative is
not yet available. Nowadays, bioenergy projects are mostly managed and regulated by the
Agroenergy Policy Guidelines issued by the federal government.
2.4.2.4 Chile
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Chile has been characterized by being a net importer of energy, due to the scarce oilfields in
its territory. Neither does it count on substantial agricultural production, mostly due to the soil
being arid and hard climate conditions. As a matter of fact, Chile is a net importer of food as well,
thus their strategy is based on first generation biofuels, although it is still timidly developed, with
the majority of the bioenergy plan resting on a future and stronger bioenergy production, based
on second generation initiatives.
The Chilean legal framework mandated mixtures up to 5% of biofuels (alcohol fuel and
biodiesel) with regular fossil fuels, to be fulfilled by the year 2010. This suggested level can be
identified in “Proyecto de ley sobre fomento de las energías renovables y combustibles líquidos”
(Bill on support to renewable energies and liquid fuels) (Senado de Chile, 2007), and the official
announcement ‘Number 30’ of the Domestic Taxation Service about Tax application guidelines in
the case of biodiesel and bioethanol (CNE, 2007). Within this legislation, biofuels were declared
exempt from the charge that is normally applied to any other form of fossil fuel.
The Biofuel National Directory was created by the Chilean National Energy Commission (CNE).
This public body is in charge of easing the communication among different domestic and foreign
biofuel stakeholders. The Directory coordinates the whole value chain in its different stages. All
these stages receive networking support by the Directory, which provides information of several
training courses (for the two initial stages mainly), but additionally it encourages research
formation centers, and connects the stakeholders with domestic (private and public) and
international financial institutions to fund partially or totally bioenergy related initiatives
(Ministerio de Energía de Chile, 2012).
The corresponding technical characteristics of bioenergy products distributed and
commercialized within Chilean territory are expressed in the Supreme Decree ‘Number 11’ of
2008. This decree also released a study of the “Infrastructure requirements for the biofuel supply
within the ongoing liquid fuel distribution network”. The main conclusions drawn out of this study
were that for the biodiesel industry, the technical barriers were practically nonexistent; in
contrast, the situation for bioethanol distribution was harder, especially because the storage
facilities and transport equipment required further adaptation (Arriaza, 2011).
2.4.2.5 Costa Rica
The Costa Rican government decided to set a bioenergy path where, as in the other LAC cases,
the main focus is on ethanol (sugarcane-based) and biodiesel (palm-based). Most general
guidelines (decrees 31087, 31818, 33357, 34846, and 35091) were issued to frame different
strategies to develop the industry. (Contreras & Rodríguez, 2006; Meneses & Valenciano, 2007)
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At the beginning of 2008 the main document (Biofuel National program) was published, and
it drew an ambitious 4 year plan in terms of goals to be achieved. However, most of them can be
classified as voluntary participation, hence it is difficult to assess to what extent they have been
fulfilled so far. As an example, the document mentions a complete enhancement of the value
chain:
 the agricultural stage can be improved by a voluntary environmental certification process
that allows a continuous enhancement of the natural conditions for agricultural production
along with the development of other sources of biomass that can be used as feedstock.
 the industrial stage has no real strategy, apart from trying to create adequate and stable
economic conditions (i.e. no taxation uncertainty and guaranteeing regular flow of
equipment and feedstock).
 for the end use stage, the policy sought to introduce the regular blend levels for biodiesel
(between 2% to 5%) and a little more ambitious opening target in the case of alcohol fuels
(7.5% ethanol) (MAG-MINAE, 2008).
2.4.2.6 Ecuador
The Ecuadorian policy framework is currently in an early stage of development. Under this
initial framework it has established the National Biofuel Council, which is in charge of defining
policies, plans, programs, and projects regarding biofuel production, handling, industrialization
and commercialization. Furthermore, it must establish standards about quality, prices, and
production volume of regular fuels and biofuels (Ortega, Cárdenas, Recalde, & Cazco, 2007).
Probably the most important milestone within the Ecuadorian policy regarding bioenergy is
Law 2006-57. This law initiates the Fondo Ecuatoriano de Inversión En Los Sectores Energético E
Hidrocarburífero (FEISEH) (Ecuadorian Investment Fund for the Energy and Hydrocarbon sectors).
Under FEISEH US$140 million are diverted from domestic oil extraction activities revenues and
given to several projects of a strategic nature. One of them is to build an alternative infrastructure
for energy distribution in the transport sector, and as part of that plan biomass-based fuels is one
option to be considered. The bioenergy sector receives support under this law from several
different fronts, including: establishing a trust for funding a microfinance system, and establishing
a trust to provide low interest credit to small producers in the agricultural sector. Whatever
income that comes from this initiative is free of taxation (Asamblea constituyente de Ecuador,
2007; Congreso de Ecuador, 2006).
The Ecuadorian “Biofuels Program”, created in 2006, sought to reach a mix target of 5%
ethanol with regular gasoline. That goal was structured in two stages:
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 The first and introductory stage was a pilot plan to be implemented in Guayaquil city (which,
despite the fact it is not the capital city, is the biggest and most populated city), and presented
an alcohol demand of 40,000 liters/day.
 This plan was to be widened to a national level. By 2005 the domestic ethanol demand, based
on the ongoing gasoline consumption (more than 13.5 million barrels/day) would reached
nearly 590,000 liters/day in a proposed blend of E10 (M. González, 2006). Similar to the
ethanol introduction plan, the biodiesel program was planned to be introduced as a trial run
in Quito city, in a blend of B5, which would eventually require210 barrels/day, and an
extension of such a plan to national level would increase that amount approximately
sevenfold, i.e. 1456 barrels/day (M. González, 2006).
2.4.2.7 El Salvador
The Salvadoran Biofuel initiatives started in 2005 with the National Plan of Bioethanol
Production, thus recognizing biofuels as a key factor in future energy security, and was the trigger
for a series of further studies, such as:
 the “Financial and Technical Pre-Feasibility Study on Sugarcane-based ethanol production”
by the Getulio Vargas Foundation,
 the studies carried out by the Organization of American States (OAS) “Technical and Policy
Assistance for Ethanol Blending and Logistics in El Salvador”,
 “Feasibility Study for Distillery Expansions at Existing Sugar Mills in El Salvador” in 2009 (ME-
BID, 2008).
In August of the same year the formal biofuel policy (along with a general Energy Policy) for El
Salvador, was written, and was guided by the Biofuel Inter-institutional Committee.
In February 2011, the Board of Directors of the National Energy Council decided to run an
environmental analysis of bioenergy projects and to design the regulation framework, in order to
develop the Salvadoran Biofuel industry. (Cerrato, 2011).
In general the Government of El Salvador seeks to reach a blend of E10; hence, in order to
reach such a target, it has established tax exemptions to boost alcohol production and use. On the
other hand, the biodiesel introduction is still in an exploratory stage and pre-feasibility studies are
being carried out.
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2.4.2.8 Guatemala
Most of the skeleton for the Guatemalan biofuel legislation is defined in the Law DL-17-85,
and the general rules AG 240-1985. Within the LAC region the Guatemalan legislation regarding
the implementation of biofuels is probably the second oldest after Brazil. The legislation sets a
mandatory goal of at least 5% ethanol blended with regular gasoline. (Lorenzo de Juárez, 2011).
However, to date it has not put it into practice (Mirón, 2010).
In 2010 a brief report entitled “The Ethanol fuel in Guatemala” was presented, where is stated
that ethanol production in this Central American country depends mainly on molasses that comes
from the sugar processing industry. Despite the existing infrastructure and the processing capacity
in Guatemala (nearly 1.4 million liters/day), most of the ethanol is exported as traditional alcohol
or alcohol fuel and just a small percentage is employed domestically in spirits manufacture, so
there is no ethanol remaining for domestic consumption as fuel. Previous political and economic
conditions have not favored the bioenergy industry in Guatemala, but the last 3 governments have
tried to reactivate law DL-17-85, to build more dynamism around the sector once again. (Mirón,
2010).
Under current government plans they will try to reach a mix of E10, however, the processing
capacity is only able to supply ethanol to cover a mix of just 3% of the domestic gasoline
consumption. As methyl tertiary butyl ether (MTBE) is being phased out as a gasoline additive, the
opportunity for the sector is becoming more promising (Mirón, 2010).
On the other hand, the Guatemalan biodiesel industry is even less developed that most
countries in the LAC region and it cannot count on a legal framework to support or regulate the
sector. It is possible to find isolated efforts from the private sector, e.g. Biocombustibles de
Guatemala, which is a research firm dedicated to Jatropha Curcas production and manufacturing,
or Biopersa S.A., which is a firm that treats waste vegetable oil for biodiesel production. The
reported biodiesel processing capacity in Guatemala in the Corpoica report is 4000 gallons/day
(ACR, 2011; Lorenzo de Juárez, 2011)
2.4.2.9 Honduras
In 2007 the Honduran government published Law 144 (Ley para la producción y consumo de
Biocombustibles, Law for the biofuels consumption and use). Several goals were achieved through
this law: A special division (Technical Unit for Biofuels) was created to regulate, and promote
biofuels production and distribution, and it was also accompanied by a set of regulations that
provide financial support in terms of tax exemptions, particularly income related taxation, and
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taxes on imported materials and equipment required to produce biofuels. These exemptions last
12 years once the biofuel production project starts.
In Honduras regular fuels are charged with a tax that is used to fund transport infrastructure,
however, the law has established that biofuels will be excluded from such payment for the first
15 years of their introduction (Hernandez, 2008).
The law did not establish a mandatory blend, and depending on the discretion of the Technical
Unit for Biofuels this target is still to be formulated. Any biofuel endeavor will need to obtain
environmental approval in order to work, i.e. it must comply with the General Law of the
Environment of Honduras (Hernandez, 2008).
2.4.2.10 Mexico
The bioenergy initiatives in Mexico are quite recent, and therefore, so is its legal framework.
In February of 2008 the Law of Promotion and Development of Bioenergy products (or Law DOF
01-02-2008) was released, which announced the interest of the Mexican government in
developing a biofuels industry under sustainable production. Under this law the Commission of
Bioenergy products was created and as part of its duties this entity had to draw the general
guidelines for the industry and create communication mechanisms between public and private
parties within the sector. It also had to define a strategy, establishing priorities in terms of public
expenditure to strengthen the biofuels industry. (Cámara de Diputados, 2008; SAGARPA, 2008;
Secretaría de Energía, 2009).
Within this document is set, in a very broad sense, the need to support bioenergy initiatives,
taking into account three different key aspects:
1. Sustainable production: there is specific emphasis in supporting small rural feedstock
producers and jobs creation throughout bioenergy cropping, harvesting and general
handling. In fact, the bioenergy initiatives must guarantee a participation share of at least
30% (for small landowners or co-operative firms) of the total feedstock production, and
preservation of natural resources.
2. Infrastructure boosting: The bioenergy initiatives will need financial tools to be
competitive, so modernization of the existing equipment, plus acquisition, fabrication and
maintenance of machinery and plant will require economic policies that ease resources to
support such activities.
3. Technological and Scientific research: Training and technology transfer are the two main
pillars to build the Mexican bioenergy knowledge base. This knowledge must permeate
from the top of the scientific and biochemical engineers to the bottom of the rural
workers. It must include exploration of new materials (algae and forestry) and
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technologies (like new yeast developments and enzymatic treatments)(D Rutz et al.,
2009).
Nevertheless, there are no concrete dispositions in this document that determine or suggest
any particular feedstock or blending levels. On the contrary, in a previous study organized by the
Mexican Secretary of Energy, published in 2006, it is pointed out that sugarcane ethanol might be
a good choice to serve national energy needs in the short run (between 2007-2012) if a blend of
5.7% ethanol with regular gasoline is implemented. In the long run, a mix of E10 could be reached
by using sugar, molasses and other feedstocks as maize and sweet sorghum. The investment
required to back up such a plan would be close to US$160 million in the short term and US$2.25
billion beyond 2012 (Masera, Rodríguez, Lazcano, & Horta, 2006).
For biodiesel, the landscape is bleaker given the low economic competitiveness of current
feedstock, in comparison with regular diesel fuel domestic prices. Despite this viewpoint the
report dares to suggest that a biodiesel program can be implemented, where, in an initial stage, a
mix of B2 can be reached by using waste oils or animal fats, and later on, in a subsequent stage, it
can be produced from other feedstock, such as rapeseed, soybean, jatropha, and sunflower
among others (Masera et al., 2006).
2.4.2.11 Nicaragua
The main boundaries for the policy structure of biofuels in the case of Nicaragua are given by
the National Policy of Agrienergy and Biofuels or PNAB (Política Nacional de Agroenergía y
Biocombustibles). The PNAB seeks to widen the Nicaraguan energy matrix with a fuel with
financial soundness, but also it embraces a sustainable vision of biofuels production through the
implementation of social inclusion. It contains incentives for both sides of the market forces -
supply and demand. The feedstock producers and biofuel processors benefit from tax exemptions
related to imports, added value and property. The fuel purchasers receive a partial exemption of
the selective consumption tax (ISC, Impuesto selectivo al consumo) that is charged to regular fuels
and they (purchasers) are not charged any import duty on Flex-fuel vehicles. Most of the financial
resources to back up this initiative are pooled in the Biofuel Production Promotion Fund and they
come from a percentage of the ISC.
2.4.2.12 Panamá
The Panamanian biofuels regulation was marginally given by Law 8 of 1987 and Law 30 of 2007
that rule any activity related with the production, distribution and use of regular hydrocarbon
products. Within these laws was established that the authority in charge of directing and
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implementing this regulation is the Ministry of Commerce and Industry. This entity initiated a
study which stated the imminent need of establishing an alternative to the current fossil fuel
consumption (Hoffmann, 2006). However, recently Panama formalized a bioenergy exclusive legal
framework and it started with Law 42 of 2011. The law entitled “Law that provides the guidelines
for the national biofuels policy and biomass-based power generation within the national territory”
set a mandatory mix of E10 to be reached in 2016 in an escalation program, as follows: It will start
on April 1st 2013 with a mix of E2, and will be increased annually, reaching E5 in 2014, E7 in 2015
and finally E10 in 2016. The scenario that is shown in the law is quite positive and, in fact, it
contemplates the possibility of modifying the suggested mix in order to enlarge it if the technology
allows, or possibly where new hydrocarbon products are available for blending with biofuels
(Asamblea nacional, 2011; Secretaría de Nacional de Energía, 2012).
In Law 42, biodiesel and biogas production and their use are planned for, however, any
guidelines, parameters and requirements are still under consideration (Asamblea nacional, 2011).
2.4.2.13 Paraguay
This South American country counts on one of the biggest infrastructures in the world to
supply energy (electricity) to the population, by using hydropower generation (approx. 9000
kWh/capita) (Lovera, 2010). However, according to a study from the Ministry of Agriculture,
Paraguay is totally dependent of imports, in order to satisfy its fossil energy needs, hence, the
importance of developing an alternative energy source remains at the top on their agenda
(Aquino, 2006).
The legal framework in the Paraguayan case is defined by a set of regulations. The most
prominent one is Law 2748 of 2005 (Law of Biofuels Promotion). This law highlights the national
interest in developing a strong biofuel industry and proposes to use not only fiscal incentives
(established in Law 60 of 1990 [Law of investments], and Law 2421 of 2004 [Law of administrative
redistribution and fiscal arrangements]), but also any resource that can be raised throughout
Clean Development Mechanisms (CDM) (Cámara de Senadores, 2005).
It also states that the Ministry of Industry and Commerce will act as application authority (D
Rutz et al., 2009), in co-operation with the Ministry of Agriculture that acts as the auditing and
certifying institution for feedstock source and treatment. This law is supported by the decrees
7412 of 2006, 4952 of 2010, and 12240 of 2008, which set out a program that includes all the
information that a bioenergy project requires within Paraguayan territory to work legally (Cazal
and Cáceres, 2006, such as blending requirements (Cazal & Cáceres, 2006), the promotion of Flex-
fuel technologies, and the commitment to provide internationally-trained specialists to support
biofuels development (D Rutz et al., 2009).
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This legal framework does not specify directly any mix levels, however, in other documents
such as resolution 162 of 2009, it is stated that an ideal target would be E24 mixed for 85 and 95
octane gasoline, while 97 octane gasoline and jet fuel do not have mix requirements (D Rutz et al.,
2009).
The Ministry report argues that, by 2006, in some parts of Paraguay there should be blends
between E14 and E16, and there are potential conditions to reach up to E25 in some cases
(Aquino, 2006).
2.4.2.14 Peru
Peru has started to change its energy mix aggressively: in 2002 nearly 70% of its energy needs
were covered only by oil use, while four years later that proportion dropped to 53%, and a
substantial growth of natural gas and condensates took a big bite of that share (they climbed from
7% to 20%). But the share of renewables is important as well, and is expected to cover a third of
the Peruvian energy needs in the near future, i.e. an expansion of this alternative fuel source by
10% from 2002 (Garrido, 2007).
As part of this expansion is the bioenergy sector. The first legal milestone in the Peruvian
biofuels history is Law 28054 of 2003, or ‘Law of Biofuel Market Promotion’. Within this law, like
other LAC countries, are the drivers behind an active bioenergy policy. However, in the case of
Peru there is an additional element on the table: Biofuels are not a mere strategy to bring
dynamism to rural areas, but they go beyond such ambitions , given that the implementation of
energy crops can be used as an appealing option in the drug crops eradication incentive (Congreso
de la República, 2003; D Rutz et al., 2009).
Under law 28054 the Biofuels Promotion Program was created, PROBIOCOM, which is in
charge of directing an investment fund to support the bioenergy program and to raise awareness
of the economic, social, and environmental benefits and achievements in the sector. There is also
the creation of a Technical Commission (with the participation of 3 Ministries, and some other
private and public stakeholders) that will define a schedule of implementation stages for
suggested mix levels of both ethanol and biodiesel.
Later, the Peruvian biofuel policy was framed under the decrees DS 013-2005-EM, and DS 021-
2007-EM (Ministerio de Energía y Minas, 2007). The first established that within national territory
the commercialized kinds of gasoline will be blended with 7.8% alcohol fuel and will be considered
as ecofriendly fuels. The production of ethanol and its respective mix started in 2006 in the north
eastern region of the country and then, two years later was extended to the northern and central
Peruvian region. Finally in 2010, in accordance with the schedule, all of Peru was permitted
bioethanol production and the subsequent commercialization. Within this decree was set out the
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biodiesel program as well: The proposed mix levels were 2% and 5% biodiesel with the two
commercial sorts of diesel found in Peru (Diesel N.1 and Diesel N.2). The production schedule
began in 2008 in the northern and central region, and then full coverage was implemented 2 years
afterwards (Ministerio de Minas, 2005).
Decree DS 021-2007-EM, in turn discusses the advisability of biodiesel mixes and it was
decided that just Diesel N.2 is appropriate for B2, B5, and B20 manufacturing, and animal fats and
used cooking oil can be used as feedstock as well. In terms of ethanol mixes the decree establishes
a special nomenclature regarding the octane grade, rather than the ethanol mix (which is the same
in every case 7.8%), the mix of ethanol and gasoline is named ‘gasohol’. Thus, four kinds of gasohol
have been commercialized: Gasohol 97 plus, Gasohol 95 plus, Gasohol 90 plus, and Gasohol 84
plus. Distribution of regular fossil fuels mixed with ethanol and biodiesel is now mandatory in
Peruvian territory. It started in 2010 in a few departments and then the mandate covered the
entire nation by mid-2011 (Consejo de Ministros, 2007).
The strived for targets established by the Peruvian government have occasionally had
feedstock and bio-product shortages. For instance, “In early 2009, 72000 barrels of biodiesel were
imported by PETROPERU to meet the blending mandate. The challenge for Peru will be to import
the raw material and refine it within the country instead of importing biodiesel directly” (D Rutz
et al., 2009).
2.4.2.15 Dominican Republic
The strength of the Dominican biofuel production has been achieved mostly through the
participation of private initiative, but it was through initial government participation that gave the
Dominican Republic one of the earliest starts in the LAC region. In 1949 the Dominican Republic
experienced an extreme shortage of gasoline and the government at the time made it mandatory
to blend alcohol fuel and gasoline at levels between 15% and 30% under public law 2071 of the
same year (DENC-SEIC, 2009). One year after the “Destilería Universal” was built and it was the
official distillery in charge of producing, blending and distributing “the national fuel”. This
initiative lasted for one year and was subsequently closed.
The Dominican biofuel policy remained untouched until 2000, where the interests for
renewable energies returned to the government agenda. Legislation around hydrocarbon product
handling and production was proclaimed, along with a new perspective regarding power
generation. However, it was not until 2002 with Decrees 557-02 and 732-02 that the biofuel sector
entered into the government energy strategies, as electrical power co-generator agent and as fuel
alternative(DENC-SEIC, 2009).
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Law 57 of 2007 establishes that all biofuel initiatives will have exemption of any kind of
taxation during a time period of 10 years, if and only if, biofuels do not exceed a volume beyond
20% in the domestic transport fuel consumption (Cepeda, 2007; Gomez, 2010).
Under the last legislation, biofuels will receive financial aid if the project is destined to satisfy
self-consumption or if they are designed to favor communal use and are organized by social
institutions (communal organizations, producers associations and co-ops). The aid will consist for
financial support for the initial investment of up to 75% of the total amount. Depending on the
approval of the National Energy Commission, the project could either have full support from the
government or it could have access to the lowest interest rates and payment conditions (Congreso
Nacional de la República Dominicana, 2007).
2.4.2.16 Uruguay
In Uruguay, the most important policy related to biofuels was first introduced in 2002 and it
was entitled Law 17567 or ‘Law of Production of Alternative Fuels, Renewables and Substitutes of
Derivatives of Petrol Extracted from Domestic Raw Material from Vegetable or Animal Origin’. The
use of “domestic raw material” denotes a very protective national policy around the agricultural
sector, by guaranteeing that most of the benefits will be received by domestic suppliers, rather
than processors that work with imported feedstock (Senado de Uruguay, 2002).
This regulation was bolstered with the law of biofuels or Law 18195 of 2007, which defines
the rules on biofuel promotion, production, commercialization and use. This will be controlled and
monitored by ANCAP (Adminsitración Nacional de Combustibles, Alcohol y Pórtland [Fuel, Alcohol
and Cement National Bureau]), (Senado de Uruguay, 2007).
At first, in the case of diesel, an introductory stage was established where diesel fuel could be
mixed with biodiesel in order to reach B2 level before the end of 2008, but from the beginning of
2009 it became the minimum mandatory standard and gradually increased up to B5, which in turn
was established as the minimum blending level from 2012 (Bittencourt & Reig, 2009).
On the other hand, ethanol fuel has received less attention regarding specifications of mix.
The ongoing regulation establishes that any regular gasoline can be blended with alcohol; using a
maximum of 5% of alcohol in the mix, and such norms will remain in force until the end of 2014.
The Uruguayan policy framework stresses the importance of keeping separate small
productive initiatives from large in the biodiesel sector and it adapts the regulation in that regard.
Small initiatives are considered those that produce less than 4000 liters of biodiesel on a daily
basis, and use that product for self-consumption or for supplying a small fleet of vehicles (once
Government permission is obtained to that end). In that case, there is no need for product
registration with ANCAP. A large initiative is any enterprise that does not comply with the
73
aforementioned conditions. While they can use up to 4000 liters/day for self-consumption, any
level beyond that must be reported and managed by ANCAP. The destination of the product can
be for domestic use or for eventual export.
In the law there are some incentives regarding the taxation system. Firstly, it is established
that any biofuel product must follow the regulation in force for any other regular fossil fuel;
nevertheless the national executive power authorities are entitled to promote this industry using
any means necessary, including total or partial tax exemptions; although, any suggested
exoneration must be built on sound grounds approved by the Congress. This empowerment
means that further modifications can be done to current proposals:
a. for a period of ten years national biodiesel will not be charged with the Domestic Specific Tax
(IMESI or Impuesto Específico interno),
b. for a period of ten years any biodiesel or ethanol producer will be fully exonerated from
commerce and industry tax payment,
c. any biodiesel or ethanol producer will be exonerated from patrimony tax (Bittencourt & Reig,
2009).
2.4.2.17 Venezuela
Given the abundance of crude resources in this South American country there is no legislation
regarding an active support to biomass-based energy initiatives. However, it does not mean that
Venezuela remains isolated in bioenergy efforts. Albeit, there is not current production, there is
an interest for blending and eventually producing biofuel domestically. Venezuela has set the goal
of phasing out the use of MTBE to oxygenate gasoline and the alternative at hand is alcohol fuel.
As a result of an alliance with Cube some ethanol has been brought to Vanezuela to run some
trials (Ryan, 2006).
2.4.3 International trade protocols
There are several proposals of trade protocols that have been put on the table in order to
establish some guidance in terms of production, distribution and use of bioenergy, having in mind
sustainability standards. In Christodoulidis’ work it has been identified at least three major
proposals: (1) Bioenergy Labelling Organization (BLO) and United Nations Agreement on
Bioenergy (UNAB), (2) The Biopact, and (3) Bioenergy Policy Options (Christodoulidis, 2011).
The BLO, according to Christodoulidis offers a system based on certification and progressive
price premium related to the final quality of the bioenergy product. Such system establishes
different levels of compliance on several criteria, a preliminary bioenergy governance system. As
74
the certification process is broken down in different levels, this allows the entry on different
producers under a variety of circumstances. The implementation of such system would require
Governments’ stimuli by a) applications of covenants between governments and the industry on
boosting certified bioenergy use and b) use certification schemes as a mechanism to restrict
imports of non-certified bioenergy products c) implementing regulation to include costs and
benefits in the final prices of energy. The latter would help to level-up the differences between
no-certified and certified energy (Verdonk, Dieperink, & Faaij, 2007).
The authors of the BLO initiative anticipate that such proposal rest on an overreliance on
conscious consumer, therefore it is also proposed a an United Nations Agreement on Bio-energy
(UNAB), which would help to harmonize the implementation of the system and would guide the
process of establishment of national covenants and regulation regarding import and production.
The second proposal is released by Mathews and it comprises a sort of regime where the
OECD can act as third party between the North and the South in a bioenergy trade, in such manner
that the former can secure continuous supply of bioenergy products and the latter can benefit
from a stable and open market for their biofuels. The OECD would guarantee that such production
has been undertaken in a sustainable way (Mathews, 2007b, 2009). Mathew’s proposal is based
in the latecomer advantages that can be developed by those countries in the South (low costs and
implementation of technologies developed by those incumbent countries) and the future reliance
of advanced countries on alternative transportation fuel (Mathews, 2007a). This pact should be
negotiated between the involved parties (those countries within the OECD and some other
invitees, which voluntarily take part in the deal), instead of being imposed by the strongest party
(i.e. EU or US).
The proposal has some limitations as it is pointed out by Christodoulidis and Mathews himself,
regarding the scope that can have the OECD to control its members and some other countries,
nevertheless; it is also argued that in accordance to Mathews proposal “OECD countries would
agree to generate investments in biofuel facilitation in the South and unlock the financing needed”
(Mathews, 2009).
The final option mentioned by Christodoulidis is the one regarding the High-Level conference
on world food security and the challenges of climate change and bioenergy held by the FAO in
June 2008. Such conference puts on the table a set of 3 concrete policies for an international
management of biofuels:
- The first one leads to continue in a current model where each country is responsible for
designing and implementing their policies, and to adapt international regulations when
they are compatible with domestic regulations. The implications to the public eye might
75
be not as positive as expected given that is not sensed a high level of commitment
regarding sustainable development.
- The second one asks for moratoria of some feedstock for biofuels production. The
intention behind such proposal is to accelerate the shift to second-generation biofuels.
Nevertheless, a prohibition of this sort can create negative incentives to a nascent
industry in terms of investment, research and business interest and it would be difficult
to enforce a governance of this nature.
- Finally, the third option is the generation of an intergovernmental consensus building
which provides an ideal institution around biofuel production within a sustainable
framework. Such institution could be shaped into a forum, an annex or a code of conduct
and could combine the two options that have been presented formerly.
In this proposal presented by the FAO is given recognition to multi-stakeholders institutions
(such as GBEP Global Bioenergy Partnership and Round Table for sustainable Biofuel) that have
provided guidance to structure bioenergy policy-design, however it is questioned the scope of
these organisms, given their limited numbers regarding memberships, in order to achieve a global
authority to regulate international standards.
A parallel suggestion provided by Christodoulidis proposes to use the UNCTAD (United Nations
Conference for Trade and Development) as a multilateral organism to propel bioenergy
development. It is understood that one of the general principles of UNCTAD is to guide developed
countries in helping developing countries to accelerate their economic and social progress, and to
make changes in their own economies to reach such purpose. UNCTAD plays an important role in
aligning goals regarding world economic state and development and designing of practical
solutions to overcome disparities.
The UNCTAD Secretariat eases decision taking processes through research and data collection
which is employed in project design and technical assistance, particularly to boost the
development of least developed countries. This is carried out within an environment of
intergovernmental consensus and autonomy of the institution itself, expecting the avoidance of
biased decisions of those parties (or countries) which might exert pressure to their favor by
economic.
Particularly in the area of energy it is posed by Christodoulidis that UNCTAD should participate
in trade and development issues as well as trade and environment synergies. The consideration
on CC is also important but it is well stressed that such efforts have to be done without duplicate
ongoing actions undertaken by some other organizations in such regard.
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UNCTAD should provide support to those countries (particularly developing countries) in
pursuing biofuels expansion in order to encourage social, technological, agricultural, trade
development and the associated gains that can come with these initiatives. At the same time
UNCTAD must minimize adverse effects that might emerge in the social and environmental fronts.
The main strength of UNCTAD as regulatory organism, in comparison to other institutions, is

its research work and objective position. As UNCTAD has exhibited its leadership in trade and
development topics, based on analytic grounds, it is a sound candidate to lead, guide and regulate
international biofuels trade, in words of Christodoulidis.
Despite the fact that UNCTAD has not conducted a direct effort on producing any publication
regarding sustainable energy production, commercialization and use; it is a fact that such
institution can provide its vast experience and knowledge in trade and development (among a
broad spectrum of topics). Based on the above, and the conjunction of the intergovernmental
character, the large number of members and the by-consensus decision making framework,
become this organization in a perfect candidate to guide a process where biofuels trade can be
encouraged within a path of sustainable standards, but having respect for other organisms’
sovereignty.
2.4.4 Conclusions
There is a clear intention within the LAC countries to actively develop a bioenergy legal
framework that can be used to support the biofuel industry and in doing that achieving several
strategic goals. In most cases, and following the global trend, what is sought through these
policies is to enhance energy security and local development (as a consequence of rural job
creation and investment in the sector). There is also an environmental purpose in some cases,
where a reduction in pollution can be achieved with protection of nature. Countries like Brazil and
Colombia have advantages in terms of commodities exports, and that situation can be encouraged
with a mature biofuel sector. Finally, in some particular cases like the Colombian, Peruvian and
Bolivian biofuels can be used as a viable alternative to illegal crops.
All these legal initiatives are quite recent within the region and they are under a development
and fine-tuning stage. Just a few cases (Brazil, Colombia and Argentina) among the LAC countries
have the capability of cover their domestic needs and eventually export, by using domestic
production only. In cases like the Argentinian biodiesel, this situation emerges as a consequence
77
of the evident advantage in soybean production that already exists in this country, rather than
from a deliberate effort that materialized through legislative means38.
38
An important table similar to the one presente here, but with a different geographical coverage can
be seen in (A. Faaij, 2007)
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Table 5 Biofuels domestic policies for USA, EU and LAC region
Exemptions
Identified planned
Subsidies
Fuel (Produced, used or to targets or mandates
Tax
Country
be used) Timeframe given
when possible
Blending 36 billion
gallons by 2022 in
USA EtOH and Biodiesel X transport fuels
Blends of at least
5.75% to be reached
EU EtOH and Biodiesel X X by 2010.
Argentina EtOH Biogas and Biodiesel X E5 and B5 by 2010
Legal framework but
Bolivia EtOH and Biodiesel X no fuels
E20 up to E100. B20
Brazil EtOH and Biodiesel X X by 2020
Chile EtOH and Biodiesel X E5 and B5 by 2010
Colombia EtOH and Biodiesel X X E10 and B5 by 2010
Voluntary blends B2 -
Costa Rica EtOH and Biodiesel B5
E10 by 2010. B5 in
Ecuador EtOH and Biodiesel X Quito
El salvador EtOH X Exploratory stage
Guatemala EtOH and Biodiesel E10 (Actual E3)
Honduras EtOH X Under construction
E10 and B2 (not
Mexico EtOH and Biodiesel implemented)
Nicaragua EtOH and Biodiesel X X NA
Panamá EtOH Biogas and Biodiesel E10 in 2016
Ideal target E24
mixed for 85 and 95
Paraguay EtOH and Biodiesel octane gasoline
E7.8 declared
ecofriendly. B2 and
Peru EtOH and Biodiesel B5
Biofuels a electrical
Dominican Republic EtOH and Biodiesel X X co-generators
At least B5 by 2012.
Maximum E5 by
Uruguay EtOH and Biodiesel X 2014.
Venezuela EtOH NA
If a comparison is made across the policies it is possible to identify key elements within these
legal frameworks:
 there are mandates with a fixed or increasing penetration target,
 there are financial aids from the governments (tax exemptions and tributary incentives) and
private sector (low interests credits and incentives to buy FFV’s).
79
However some timid behavior can be found as well: The Chilean proposal maintained a voluntary
introductory mix level, and it was not until 2010 that it became mandatory. Nonetheless, the
main policy is aiming to promote second generation biofuels, given its agricultural restrictions.
Bolivia has been cautious as well, given some concerns around food security and food prices.
Venezuela is probably the country in the LAC region that has acted with the least enthusiasm
towards bioenergy production (understandable given its vast oil reserves). Biofuels are
considered just as an eco-friendly alternative and can be used to reduce the environmental
impact of traditional energy carriers.
Government policies towards a bioenergy sector as a whole, but to biofuels in particular, have
had a great impact in the industry’s development. The global dynamics of the sector are not
explained by market forces, but by the political leverage that has been received so far. The
experience of the major producer countries indicates how significant those policies are, and based
on that, it is possible to foresee the key role they still have to play in this industrial progress.
Currently, with exception of the Brazil, where the bioethanol production is competitive (without
subsidies) in comparison with gasoline, the feasibility of the industry as a whole is inextricably
linked to the existence of a legal framework. In general sense, these regulations share the same
structure:
 an expression of interest in bioenergy as one of the appealing alternative energies, with all
the drivers behind the initiative,
 a decision about the blending level and the nature of the mandate associated with it,
 and finally, the explanation about the tools to be used by the government and the
explanation on how to have access to those benefits.
The quick pace that has faced the biofuel industry is reflected in the spread of the legal tools
designed to promote it. In some cases, this rush resulted from undesirable outcomes: as a matter
of illustration, for the USA and EU alike the proposed targets mentioned in the ongoing legislation
have turned out to be far too ambitious, and overwhelm current domestic industrial capacities. In
some other cases, initial mandates can be modified when the proposed target represent a threat
to food security, or when the law does not have enough credibility among the population. An
example of the first case is the Peruvian one, which despite having active and open support to the
biofuel industry they experienced shortages of feedstock, hence, the need of importing biodiesel
in order to fulfill the B2 mandate. In some cases, like in Argentina, it is possible to have a
contradiction between the policy target and the goal achieved: the law promotes local production
through small farmers’ participation in order to satisfy the domestic demand, however, by 2010
80
all of the production was exported, because the remuneration was better in foreign markets and
the policies were not put into practice with enough thoroughness (D Rutz et al., 2009).
It is fundamental to align targets and policies in order to have a buoyant industry. Pakistani
and Indian cases are the counter-examples of this, due to taxes that have been applied to alcohol
sales, resulted in creating a huge disincentive to the ethanol sector (Gonsalves, 2006; Khan, Khan,
& Yusuf, 2007). Another mismatch that has been referenced is when the authority that rules any
bioenergy program has clashing targets and the implementation of the regulation becomes weak
or poorly handled. For example, when the Ministry of Hydrocarbon products is trying to raise oil
sales but at the same time is required to show good progress on the biofuel front.
Fiscal policies are under constant scrutiny because they are considered expensive by some
authors (Jatzke, 1994; Saikkonen, Lankoski, & Ollikainen, 2012; Singh, 2006). Thus, the decision on
whether or not to support a bioenergy project through public funds, or by applying tax
exemptions, heats up the debates around cost-efficiency. During most of the PROALCOOL
program Brazil maintained a tax discount on bioethanol production. Between 1975 and 1987, the
Brazilian alcohol program cost US$9000 million; however, it paid off in import savings of approx.
US$14000 million (Worldwatch Institute, 2006). But the financial feasibility of biofuel projects
hinges on the international prices of crude oil. In fact, for the Brazilian case, the low price
experienced during the late 1980’s, in addition to an expensive sugar price, led the industry to a
critical point where the program was practically cancelled.
There are several components to assess cost associated with biofuel policies. One of them is
the opportunity cost of implementing such regulations. Although, countries can avoid the cost of
importing fossil fuel, it is also true that the taxes behind oil import quotas are not noticed. In
Brazil, the cost of this was calculated and included for the State of Sao Paulo, and the amount
went up to US$600 million during 2005. In the UK, according to Dufey, the income that the
government did not receive would be around £90 million (nearly 160 USD) if a penetration scheme
were to be implemented with a blending mix of 1% (Dufey, 2006).
Moreover, in those countries where agricultural commodities are exported, like in most LAC
countries, a diversion of feedstock to supply the biofuels domestic market could represent a
substantial diminishment in the income from exports.
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3. ENVIRONMENTAL PROBLEMS IN COLOMBIA AND THEIR
RELATIONSHIP WITH BIOENERGY PRODUCTION
Colombia accounts for a series of complex ecosystems with tremendous wealth in environmental
terms. The introduction and use of traditional fuels for transportation, in an agricultural country
such as Colombia, has direct or indirect effects on nature, the people and the economy. It is vital
to understand the interaction between Colombian natural stock, social and institutional dynamics
that emerge from it and the bond that biofuels production can represent.
Biomass has been traditionally used to cover several human needs: food, fodder, energy source,
fibre production, forest products and ecosystemic services. Its consumption creates
responsibilities regarding use of the resource (and linked resources), and off course downstream
it implies waste and residues management. Bioenergy therefore entails competition for
resources, and alternatives for various sectors.
The work presented by Perez’s team unveiled a set of 8 problems of major scope in terms of
environmental development (Perez, Rojas, & Ordoñez, 2010). While all of them have their own
importance; a sub-selection of 6 will be the focus, based on the likely impact they might represent
as a potential barrier that bioenergy projects have to face in their implementation stage.
Furthermore, it will be explained how bioenergy or biofuel countries can improve or worsen the
status quo of such problems.
The group of problems identified by these researchers from Universidad del Valle is presented
as follows:
1. Loss of biodiversity and ecosystem base
2. Land degradation, pollution and inappropriate use
3. Water pollution and inappropriate use
4. Air pollution
5. Climate change
6. Deterioration of the environmental quality of the human habitat
Those problems that have direct linkage with biofuels production and use will be described in
detail, however, those that are related to a minor extent will only be approached marginally.
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3.1 Loss of biodiversity and ecosystem base
Biodiversity is defined as the variation of forms of life that is exhibited in different organization
levels within nature, from individual, small cells to large communities, ecosystems and landscapes.
During recent years the study of biodiversity has obeyed a system of hierarchic levels, as follows:
 biogeographic diversity,
 diversity of ecosystems,
 diversity of species,
 diversity of populations,
 cultural diversity
For some time, conservation and sustainable use of biodiversity is a top priority at a global level
due to the appalling consequences should we suffer its loss, in term of productivity and recovery
capacity that are embedded within the ecosystems, in the same way that it represents a serious
threat to the survival for the billions of people that depend on them.
It is common to include nature preservation by excluding protected areas in assessments of
biomass expansion potential use (just as it is implemented in this study). This implies that forest
and already threatened areas are left out of calculations of potential expansion areas, but some
other ecosystems also require protection and the current state of it may be insufficient (Chum et
al., 2011). Some marginal lands, in spite of having low yields, count on high natural biodiversity;
therefore the use of those areas may jeopardize current natural balance.
Losses of biodiversity can be consequence of either a) large monoculture settings or b) by
establishing croplands for new bioenergy projects or for diverting food crops to low-yield marginal
lands. Nonetheless; biodiversity can be enhanced by the introduction of new species in poor or
degraded areas, or by the implementation of new agricultural techniques such as agro-forestry
systems, that combines food and biomass production for other purposes.
The high rate of destruction and change in natural vegetation, associated with
overexploitation of natural habitat, the illegal profiting from them, the destruction of the ozone
layer, climate change as a consequence of environmental pollution, the introduction of exotic
species, and the raising of illegal crops have led to a big percentage of fauna and flora facing some
degree of risk of extinction or a severe reduction of their populations.
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3.1.1 Geographic biodiversity
Colombia is a megadiverse country39 considered as one of the Top 5 countries in the world in
terms of biogeographic and ecological biodiversity. Such biodiversity is represented in a great
variety of ecosystems and species (of flora and fauna), both terrestrial and marine kind, that as a
whole create an impressive genetic richness. Colombia is considered as the second mega-diverse
country having within it 10% of the biodiversity of the planet (Romero, Cabrera, & Ortiz, 2008).
Colombia contains two hotspots of biodiversity: Choco/Darien and tropical Andes (Brooks, De
silva, Foster, Hoffmann, & Knox, 2008).
Within the main policy of biofuels production and use in Colombia (Conpes 3150), there is
recognition that bioenergy projects, in particular the establishment, management and processing
of energy crops could represent a threat to biodiversity (Castiblanco & Hortúa, 2012).
Nevertheless some studies, applied to palm oil sector, refer that effects on biodiversity are linked
with particularities of every location regarding climate conditions, production system, chosen
feedstock (León, Valbuena, & Borrero, 2006). These impacts could be positive (by widening the
knowledge base of related species, habitats recover, and preservation) or negative (like
interruption in the biological organization levels, disruption of trophic chains, diminshment of
alterations of biota).
In the Colombian Case it is important to bear in mind that most sugarcane plantations have
been stablished since colonization times and nowadays they occupy less than 200 thousand ha for
sugar and ethanol production and they have not undergone through vast expansions. A similar
case is presented for palm oil plantations. The growth rate of production in higher than the
plantation area growth during the period 1962-2012, indicating a non-expansive behavior of these
two energy crops40.
Current plantations of sugarcane in the geographic Valley of Cauca River and palm oil in the
Northern coast, Nariño and Meta departments do not compromise any biodiversity hotspots and
further expansions have been forecasted, taking into account protected areas in such regards.
39
A mega diverse countries are those that shelter most of the living species on Earth, and are
therefore considered as extremely biodiverse
40
Based on FAOSTAT database it can be seen that in 1961 sugarcane plantation area was nearly 300
thousand ha, while for palm this area was 800 ha in Colombia. The highest point of expansion in sugarcane
was reached in year 2000 with slightly more than 406 thousand ha, but it droped dramatically in 2009 to
nearly 170 thousand ha and it has maintained similar levels ever since. Palm plantations have experienced
a fairly continuous but slow growth during the whole period with an average growth rate per annum close
to 9.39% and it has been reached an area of 165 thousand ha since 2006 and it has been maintained until
today.
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3.1.2 Issues related with ecosystem diversity
One of the main threats to ecosystemic diversity is the loss and fragmentation of ecosystems that
affect their composition, structure and functionality (Fahrig, 2003). This phenomenon is mainly
due to anthropic activities in the way of expanding agricultural frontiers, or by enhancing or
augmenting infrastructure projects and mining exploitation, among others. Such problems bring
as a consequence:
 reduced functionality of ecosystems, by a reduction of forest areas and their diverse
products,
 decline of quality in the remaining areas,
 loss of connectivity between them,
 creation of borders or boundaries over the habitat,
 and geographic isolation due to the fragmentation of these zones.
In terms of species, there is also a notorious reduction in their population size, geographic
isolation, reduction in the genetic variability, and increased difficulty for procreation (Fahrig,
2003). The main consequence of fragmentation of the ecologic equilibrium is a continuous change
in the landscape, which puts at risk its feasibility and potential use in the long-run (Etter, 1993).
There is one ecosystem in particular that has suffered more than the rest of the Colombian
biomes - forests. There is a great loss of forest and woodlands. While it is true that Colombian
territory was covered by approximately 49 million hectares of natural forest in 2009, which
represents near to 53% of the whole of Colombia, in a little more than 4 decades (1961-2005)
there has been a loss of almost 5.3 million hectares. That would imply an average deforestation
rate of 120 thousand hectares per annum, which draws a deforestation rate of 0.25%, which is
slightly higher than the world average (0.2%). This deforestation has been more concentrated and
severe in the Andean and Caribbean zones of Colombia, which are precisely the regions that
exhibit higher population densities and more economic development, but with less access to
water resources (FAOSTAT, 2009).
The most preoccupying consequence of the loss in the vegetation is that tropical and
subtropical moist broadleaf forests are highly affected, and it clashes directly with the hotspots of
biodiversity and the ecological importance that they represent. For instance, 50 of the species of
birds of the world are located in the Choco and Amazonia region, and most of them can only
survive in the delicate environment that these ecosystems provide. It is a similar situation for some
tropical mammals and rare primates. However, probably the most threatened ecosystems are the
mountain and sub-mountain Andean forest, and the tropical dry forests, given these locations are
in vastly populated areas.
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Also a big concern is the intensive use of agrochemicals, that have had an average increase in
usage from 205.36 kg/ha (182.87 for fertilizers and 22.49 for pesticides) in 2002. to 305 kg/ha in
2011 (291.8 for fertilizers and 13.45 for pesticides), which is above the average Latin American
levels in the same period, also experiencing a leap from 77 to 109kg/ha (FAOSTAT, 2014) 41 .
Excessive use of these kinds of substances weakens the soil’s response capacity in natural
ecosystems, resulting in eutrophication processes that inhibit normal development in aquatic
fauna.
The loss of forest cover has also been a consequence of wood extraction, firewood
consumption (given that just 2.4% of rural families use any other kind of cooking or heating fuel)
and forest fires. While at the same time, reforestation efforts are limited to an area of 16,475
replanted hectares per year has to compete against 120,000hectares that are deforested on an
annual basis. Finally the construction of road infrastructure and the expansion of urban
settlements have contributed to the detrimental transformation of the natural habitat.
Figure 10 Evolution of land use in Colombia
70000
60000
50000 Permanent crops
40000 Permanent meadows

and pastures
30000
Forest area
20000
Other land
10000
3.1.3 Diversity of species and their problems
41
For Colombian and Latin American case the calculations were made by adding the total Nitrogen,
Phosphate and Potash consumption of fertilizers assessed in tonnes. Pesticides include the use of
insecticides, herbicides and fungicides, also assessed in tonnes. It was taken into the account just the area
corresponding to arable land and permanent crops.
Part of the huge difference that is presented between the Colombian and the Latin American case can
be due to the fact that in FAOSTAT database is missing information for fertilizers in the case of Brazil,
Paraguay and Venezuela for the whole period 2002-2011. Some other countries also present blanks in the
information collected in such regards.
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The introduction of exotic species is also a big concern in terms of biodiversity preservation,
particularly in the Andean region of Colombia. It has been calculated that nearly 107 out of 117
invasive species (or with invasive potential), are found within the region. Some of these species
were incorporated into productive activities, and subsequently they occupied vast monoculture
arrays. In the case of bioenergy, initially there was a direct impact by the introduction of African
Palm for vegetable oil extraction, and biodiesel production more recently. There have been some
introductions of alien species as part of feed and plague control experiments, as is the cases of
the bullfrog and the crazy ant (paratrechina fulvia). These two species turned into invasive
organisms that nowadays have reached high occupation levels in the different biomes in the
Andean region.
Thus, the introduction of alien species threatens directly the biological diversity and the
landscape composition in the region. For that reason, with the adoption of new species it is
possible to displace native incumbent species, creating severe problems for further development.
Thus, it is vital to have a clear inventory of those species introduced within a nation, as well as
clear identification of those species of invasive flora and fauna (or with invasive potential) in order
to establish the proportion of species that embody a threat to native species or ecosystems.
3.2 Land: degradation, pollution and inappropriate use
Soil degradation is clearly and mainly related to human activities, but it can be generated
through natural processes, such as geologic erosion, earthquakes, landslides and changes in the
climate. Nevertheless, the anthropic factors can be controlled by the action of conscientious
authorities, among others, by establishing policies, legislation and other tools.
Land and soil usage change is one of the human activities which most influence the
ecosystems’ capacity to provide environmental functions. The simplification of ecosystems caused
by human activities makes it impossible for modified ecosystems to provide all the regular services
that otherwise would be offered in their natural state (Assessment, 2005; Carpenter et al., 2009).
In the biophysics field, land use change (LUC) and change in the soil cover affect those nutrient
cycles in the terrestrial and aquatic ecosystems, local and regional climate, water cycle and it
might cause decline in biodiversity levels, and erosion and soil loss among other consequences
(Metzger, Rounsevell, Acosta-Michlik, Leemans, & Schröter, 2006; Ojima, Galvin, & Turner, 1994).
The main human activities that trigger soil degradation are:
 agriculture,
 livestock farming,
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 urban expansion,
 mining,
 road construction
 and wood extraction (WB, 2007).
Regularly these activities take place where potential soil use differs from the one that it is actually
used for. In Colombia land use vocation is changing. It was estimated, a decade ago, that
approximately 43.5% of the total area is destined for conservationist purposes, followed by
agricultural activities, forestry projects, livestock farming practices and agroforestry endeavors.
Figure 11 Land use in Colombia 2002
Land use in Colombia 2002

(Total 113'869.035 ha)
Forestry Livestock Conservation Agricultural Agro-forestry
6% 19%
19%
12%
44%
(Pérez, Rojas, & Ordoñez, 2010)
3.2.2 Conflict over land use
Biomass plantations are usually established in surplus agricultural land; thus intensification in
agricultural systems is required given that influences land availability for biomass plantations (by
defining land requirements for the food sector) and it may enhance biomass yield levels. (Chum
et al., 2011) Therefore within the calculations for the technical potentials of biomass production
presented in recent studies, is highlighted the need of taking into the account a combination of
high-yielding agricultural systems (in new and existing agricultural land) and international energy
trade agreements (Ausubel, 2000; Cassman, Dobermann, Walters, & Yang, 2003; Fischer, Shah,
van Velthuizen, & Nachtergaele, 2001; Tilman, Cassman, Matson, Naylor, & Polasky, 2002), as well
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as the dietary customs of different geographical regions (Gerbens-Leenes & Nonhebel, 2002; Smil,
2002; Stehfest et al., 2009; Wirsenius, 2003).
In Colombia, the conflict over land use is highly correlated to livestock farming practices. An
intensive ranching practice induces to forest loss, ecosystemic degradation and changes in the
human territory composition (Andrade, 2004). In Colombia, according to assessments and
studies, it has been calculated that the suitable area for such purposes approaches 14 million
hectares, whereas the area actually being used is more than 38.9 million hectares (FAOSTAT,
2009). In addition, the use of these lands is highly inefficient. Despite the fact that heads of cattle
have increased continuously between 1961 and 2005, the increment of the number of heads per
hectare has remained practically at the same level (from 0.6 to 0.9), so the level of efficiency has
practically not evolved in more than 4 decades. According to statistics from the (Food and
Agriculture Organization) FAO, the number of heads of cattle in 1980, including bovine, sheep,
goats, and horse cattle (but excluding pigs), reached levels of nearly 30 million, and in 2009 this
number grew to over 35 million.
The impact that ranching activities has on employment is not as substantial as the one that
can be produced by agriculture (Vergara, 2010), and the impact on the environment is higher with
the former (Northoff, 2005; Vergara, 2010). Besides, the influence that cattle farming has on the
social structure in terms of violence and land concentration is more accentuated than in some
other agricultural activities (Andrade, 2004; Vergara, 2010).
The productivity indicators that reveal ranching sector’s performance are not at the cutting-edge
compared with some other countries within the LAC region (i.e. Argentina and Uruguay). For
instance every ranch on average counts on 25 heads, where nearly 55% are destined for meat
production, 4% for milk production and 45% for double pourpose. The level of sacrifice of female
animals is 22%, while in US is 77%, Argentina is 54% and Uruguay 44%. The extraction or total
sacrifice rate has been stuck in 14% for the last decade, indicading low progress in the productivity
in the sector. the production of meat in some countries in the region is over 214 kg per head, but
in Colombia such indicator has been reported in 197 kg per head. (Vergara, 2010).
Data from FAO indicate a quite stable and low-productivity behavior for the sector, where there
is not even one head of cattle per ha (see graph below).
All these arguments confirm the idea that the use of land for livestock and other cattle farming
exhibits a widespread and parasitic pattern, which has a great negative impact on the
environment.
Figure 12 Land use in Colombia for Livestock growing purposes
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70 3
60 2,5
50
2
40
1,5
30
1
20
10 0,5
0 0
2004
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2006
2008
2010
head/ha (right axis)
Permanent meadows and pastures (million ha)
Cattle (million heads)
Forest area (million ha)
Another part of the problem is that not all the territories that have the potential to grow
forests and similar ecosystems are doing so. The environmental regulation has “secured” an area
of only 11.5 million hectares through the program of national parks. Apart from the problem
generated by the fact that some areas are not being used for their natural vocation, there is
overexploitation in nearly 17% of the total area in the country. This phenomenon is related to
intensive use of the ground, through a model of industrial agriculture, based on a vast use of
machinery, modern irrigation methods, and agrichemical boosters. In any case, based on the data
exhibited in the previous figure, is not posible to argue that cattle ranching expansion is given at
expense of forest area.
Another factor that contributes to a major extent to the deterioration of land and soil is the
existence of illegal crops. Agricultural practices that are undertaken to maintain, as well as to
eradicate, these sort of crops are extremely aggressive on the environment and they contribute
to the change in acidity levels, leading to salinization, resulting in desertification progression.
Within the last 20 years, these types of crops have quadrupled, and it is important to bear in mind
that they are usually located high up in the mountains, and in forests and jungles where their
eradication becomes rather complex. Nevertheless, it is fundamental to remember that these
illegal crops have undergone a substantial reduction within recent years, particularly since 1999.
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For instance, papaver or poppy crops have been reduced by almost 50%, and so have coca
plantations (UNODC, 2007).
The Colombian government has tried to re-engage the communities that are involved in
cultivating illegal crops, by offering them some alternatives. Perhaps the most influential scheme
that has been employed as policy of State, in coalition with foreign (United States of America)
help, was the so-called plan “Plante”. During the period 2000-2004, soft credits were offered (total
amount of more than 160 billion COP i.e. more than 55 million USD) to peasants mostly in
Putumayo region, as an incentive to abandon coca crops (Vargas, 2010). In this case the product
that was employed as an alternative, was the heart of some edible palms. However, a more recent
initiative is to employ energy feedstock(DNP Departamento Nacional de Planeación [National
Economic Planning Bureau], 2008).
3.2.3 Land degradation
Apart from conflict over the land, given by inadequate vocation allocation or by illegal use,
one additional problem is land degradation, which shows symptoms of erosion, salinization and
desertification.
Erosion covers a considerable area of Colombian territory, it is predicted that near to 50% of
it suffers some degree of land degradation, while 23% displays erosion problems that can be
classified between moderate and severe. Those lands in severe condition, which occupy near to
7.8% of the total territory, are considered impossible or very expensive to restore. Erosion, as
expected, has more presence in those areas densely populated: high and very high levels of
erosion are shown in Orinoquia region (20.9% of its area), Caribbean region (14.5%) and the
Andean zone (9.9%). Meanwhile, the Amazonia and Pacific regions are the ones that have a minor
impact from this variable, which is fortune given their importance in terms of biodiversity (IDEAM,
2004).
The other problem is salinization, which is usually associated with irrigation methods.
However, the first difficulty faced by the scholars and technicians that try to study and characterize
such problems is the lack of information. The use of extensive monoculture methods and
extensive livestock farming practices unleash salinization problems that are evident mainly in the
Caribbean zone, affecting 60% of its territory, with levels between high and moderate salinization.
Other regions affected by this problem are the Andean region with particular concern in the
departments of Cundinamarca, Huila, Tolima and Cauca Valley. These salinization levels are
directly linked to an over proportioned growth of irrigated land - it started with 400 thousand
hectares in 1981 and ended up with nearly 900 thousand in 2001 (WB, 2007).
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The cost of land degradation, due to erosion and salinization processes, assessed through loss
in crop productivity, was estimated at US$ 670 million in 2004 (Larsen, 2004). One of the
complications that prevent the land degradation problem from being solved is the lack of
regulation and laws oriented to keep control of them. Neither law 99 of 1993, nor any other
dispositions, establish clear mechanisms or responsibilities to mitigate land degradation. In the
best scenario, both erosion and salinization are mentioned as problems that require proper
attention by the environmental authorities; nevertheless, they do not indicate how these actions
must be implemented and controlled.
This fact becomes a difficult barrier to overcome. While there is a desire to assess the
relevance of applied policies oriented to preserve land quality, there is a great lack of available
data because the authorities that implement them do not use performance indexes and there are
no specific targets in terms of erosion and salinization control.
3.2.4 Soil contamination
Land and water are the two abiotic elements of the biosphere that have great interaction
thanks to the bio-geochemical cycles of the elements and the hydrologic cycle. In addition, these
two elements constitute a fundamental foundation for the development and proper working of
several terrestrial and aquatic ecosystems. Having said that, it is clear that those vectors of
anthropic contamination that affect water will also compromise land quality, and the difference
is marked by the corresponding effects and magnitudes. Land pollution by way of biodegradable
organic matter does not constitute a serious problem in most cases, given that the superficial layer
on the soil is a very rich bio-reactor. The superficial layer of the ground is also high in biodiversity
due to its elevated content of active microbial flora with an extraordinary biodegradation
potential. The real problem arises when there is an excessive and uncontrolled use of pesticides,
herbicides and in some cases fertilizers, which results in severe contamination of land.
Zúñiga et.al. point out that between the 1950´s and 1980´s fertilizer applied in cultivated areas
was much less (in comparison with product yield) to current methods. Nowadays, it is necessary
to apply big quantities of agricultural input to obtain current production, creating a high
dependence on fertilizers. Excessive application of nitrogen has contributed to an accelerated
deterioration of land quality, therefore, there is an urgent need to promote an agro-sustainable
model as the only solution to recover and maintain soil fertility and productive capacity of the
Colombian agricultural systems (Zúñiga, Osorio, & Cuero, 2009).
It is clear that these contamination factors are tightly linked to inadequate agricultural
practices, both on an industrial scale and on small scale. Among those practices responsible for
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hastened soil fertility loss (Zúñiga et al., 2009)is monoculture is, which is the main setback, but
also:
 the extensive use of fertilizers with synthetic chemical,
 the use of agro-toxins,
 over working the land,
 irregular clearing practices such as burnings,
 soil compaction by excessive mechanization processes
 and irrigation with inadequate waters can be count as.
A perfect illustration of such a situation is given by the case of a variation in the level of organic
matter within the soils of the Cauca valley region (Besosa, 2005). In the 1960’s this region
contained 7% of organic matter within its soil, but every decade it has lost one percent. So by the
year 2010 it was assumed to have level of 2% of organic matter. The reader must remember that
this particular region in Colombia has been characterized by the cultivation of some fruits, but
predominantly it uses sugarcane to support most of the agricultural income in this zone.
Thus, the loss of organic matter in soil leads to a disastrous impoverishment in terms of
nutrients, caused by monoculture practices, the lack of crop rotation, and burning methods for
clearing purposes. It is also known that continuous and permanent crops of the same species
entail a constant extraction of the same nutrients and minerals over and over again.
Alternatives
Intensification and aggressive agricultural management have to be treated carefully because
they may imply large input of nutrients, water and pesticides bringing negative consequences to
the surrounding environment (like change in species composition, water pollution and
eutrophication). However, intensification does not suggest necessarily industrialization of the
agriculture, given that yield can also be improved in some regions, via organic farming methods,
but with better practices than the ongoing ones (Badgley et al., 2007). Additional techniques of
soil and water preservation can also contribute to increase yield in rain-fed regions employed for
agriculture having into the account that best agricultural practices are not applied to many world
agricultural areas (Godfray et al., 2010), as consequence of poor information, capacity building,
access to markets, among others (Neumann, Verburg, Stehfest, & Müller, 2010).
There are some other opportunities to widen expansion areas in sustainable ways if
conservation agriculture and mixed production systems are deployed, and water use efficiency
and carbon sequestration techniques are developed, and some particular agricultural inputs such
as nitrogen are limited in usage. Some other possibilities can emerge in the change of traditional
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resource-intensive fodder (soy and corn) (Dale, Allen, Laser, & Lynd, 2009), reducing grazing
requirements (Chum et al., 2011).
Marginal lands are also an alternative; however there is much uncertainty on how much
potential can be used for expansion of bioenergy plantations. Several obstacles need to be tackled
in order to take advantage of such lands, among them long periods of time and financial efforts
for maintenance and land reclamation task, low yields and involving established populations and
their ongoing needs.
3.3 Water pollution and inappropriate use
Colombia has a history of generous rain fall over the years, resulting in it recently being
catalogued as the fourth country in the world in terms of water availability. However, nowadays
it is facing a conflict between socio-economic development and water sources preservation.
Current national growth has led to a critical situation where some regions experience regular
water shortages, and where population growth also exerts an additional pressure on the resource.
Understanding this, it is important to have a general review of this key input to agricultural
production, therefore market forces and other implications in terms of pollution are briefly
presented below.
3.3.2 Water supply: related issues
Colombia is a country that counts on an immense water supply, which can be broken down
into superficial and underground sources. Adding up the national water availability Colombia has
a store of 2100 km3 of fresh water, i.e. 50,000 m3/y/capita, which by far surpasses the supply
found in countries like Brazil, Argentina and Mexico. The allocation of underground streams and
aquifers are important, given that 30% of fresh water comes from this type of sources, and nearly
40% of municipalities’ water supply depend on aquifers for drinkable or potable water provision
(IDEAM, 2004).
Notwithstanding, one of the most important features of the water supply in Colombia is its
heterogeneity in terms of territorial distribution. It has been established that most of the water
resources are concentrated in those unpopulated regions. Thus, the 66,344 m3/sec that belong to
Colombian territory are distributed in 5 different hydric basins that conform to the national
continental territory, as defined below:
 Amazonia (22185 m3/sec)
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 Orinoquia (21339 m3/sec)
 Caribe (15430 m3/sec)
 Pacific (6903 m3/sec)
 and Catatumbo (427 m3/sec).
As it is evident, more than two thirds (76.1%) of the whole water supply is located in the least
populated areas (Amazonia, Orinoquia and Pacific). Therefore, only 23.9% of the water is located
in those basins that supply high population areas (Caribe and Catatumbo), and subsequently have
a greater concentration of economic activity. The Caribe basin itself has Cauca and Magdalena
rivers and account for approximately 70% of the Colombian population.
In terms of the hydrographical basins, it is estimated that 40% of the big basins have a degree
of vulnerability between moderate and intermediate. This is reflected by the fact that during a dry
season 25% of the municipalities face problems with water availability (and that covers 60% of the
population). Such shortages fluctuate between medium, medium-high, and high. If such trends
continue, as expected in 2015, the affected population could reach 65%. The most vulnerable
region is the Andean one, followed by the Caribbean zone (DNP, 2007).
It is vital to have these water availability constraints in mind for further biofuel project
implementations, given that the availability of this liquid resource impacts directly not only in its
yield, but also in further expansion of such bioenergy feedstock.
In the same way it is expected that global warming exacerbates the impact of such
phenomenon. This could result in a total lack, or at least periodical shortages, of water resources
in some strategic zones, above all in the high-Andean ecosystems, which are fundamental
providers of the liquid.
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3.3.3 Water demand: related issues
Water demand for different sectors starts to unveil the roots of conflicts regarding this
resource, especially if the uneven geographic distribution is taken into account, as it was just
mentioned. The Instituto de Hidrología, Meteorología y Estudios Ambientales –IDEAM-, (Institute
of Hydrology Meteorology and Environmental Studies), presented a study in 2004 where it was
indicated that the water demand in 2003 reached 7,435,000 m3, where agriculture was the most
intensive water user (54.5%)
However, in the cases of agriculture and human consumption, there is a presence of high levels
of inequality given that those small-scale and poor users are excluded from having proper access
(IDEAM, 2004).
Regarding agricultural sector, the World Bank states that small-scale farmers do not have
access to the water rights that they have been allocated, because these usually go to those more
powerful and bigger sized users (WB, 2007). Studies on the water footprint of the Colombian
agricultural sector establish a clear increment in the water use for this activity. The agricultural
water footprint for Colombia includes the total volume for producing food and other raw material
from the agricultural sector, however, without including illicit crops and flowers. Pérez calculated
this indicator in 2003 to be 42.7 Gm3, without including losses by inefficiency in irrigation systems.
The volume of water use has undergone a continuous increase since 1961, where it had a level of
nearly 13 Gm3, and it had an outstanding peak in 1992 exceeding 45 Gm3, followed by a gradual
decrease that stopped in 1999 (at 32 Gm3) when it reverted to a growing trend that end up at
virtually 43 Gm3 in 2003. The net effect of the whole period was 29 Gm3, which can be translated
in an annual growth of nearly 5%. This is slightly above the growth of the GDP of the agricultural
sector, which has been reported as 4.5%. The issue that emerges here is that such demand is
focused in just these few hydrographical basins with the lowest water availability, adding extra
pressure on current water supplies (Perez, 2007).
In the case of human consumption, aqueducts are better equipped in urban areas; where
coverage is wider than in rural areas. Nevertheless, even in cities, in those poor neighborhoods
and those settlements in urban perimeters water distribution systems are not as good as the ones
provided in inner cities.
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3.3.4 Water pollution in Colombia
In the case of water pollution, it must be taken into account that this resource is available
from three possible sources: superficial water, underground water and sea water.
Water quality in Colombia is affected for the most part by organic pollution and sediments
(DNP, 2007). The latter are related to soil erosion by agricultural activities and mining. The main
culprit for organic matter disposal, which is assessed in BOD (Biochemical Oxygen Demand), is the
agricultural sector, which accounts for 84%, followed by residual households’ waters (10%), and
residual industrial waters (6%).
Nevertheless, at the present time there is no sure diagnosis for contamination caused by
household water management at a national level. Neither is there enough nor reliable information
on the current state of water resources, that includes in the analysis elements such as assimilation
capacities of the receptor body, impacts of spills on quality of health of exposed populations to
water contamination by chemical or microbiological causes. It is important to keep in mind that
anthropic contamination that is produced all along the Andean mountains is disposed of in the
Caribe basin, and ends up on the North-Western coast of Colombia.
Water scarcity may be a limit for intensification possibilities and possible expansions projects
applied to energy crops, or energy plantations in general (Berndes, 2008a, 2008b; de Fraiture &
Berndes, 2009; Rost et al., 2009).Nonetheless, this obstacle can be overcome partially by using
water management treatments (Rost et al., 2009).
3.4 Air pollution
3.4.2 Air pollution in the World and in Colombia
Presence of substances in the air, in certain quantities and during long periods of time might
alter health and human wellbeing, as well as possibly causing disruption in the normal behavior of
ecosystems. Such a situation in known as air pollution, and it manifests through the interaction
of different sources and the contaminants or pollutants that they release, as well as the influence
of external factors such as the atmospheric conditions in those places where the phenomenon
takes place.
Air pollution in produced by those uncontrolled emissions of gases that are freed in to the low
atmosphere. Such emissions might be categorized by their incidence or scope on the
environment, generally considered as local or global. Some of these substances introduced to
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given environments by the actions of nature, but there are others that come from man’s actions.
The origin of these anthropic emissions can be broken down into stationary sources and mobile
sources. The former mostly consists of industries and households mostly, while the latter refers
to any form of transportation that causes considerable emissions - basically any engine-based
terrestrial, aerial, fluvial, or marine means of transport.
The most common pollutants present and which cause more severe reactions for humans and
environmental health are:
 Sulphur oxides (SOX),
 Nitrogen oxides (NOX),
 Carbon monoxide (CO),
 Tropospheric ozone (O3),
 Lead (Pb),
 Particulate matter (soot, ashes and dust),
 Volatile organic compounds (VOC’s), among others.
Regarding the sources of emission for those pollutants mentioned above, there are several
different systems of classifications. The first way of classifying these sources, involves separating
natural from man-made sources. Among the natural sources are volcanic eruptions, sand storms,
and organic matter decomposition in natural environments such as swamps or wetlands. While
the ones that come from man’s actions include, fossil fuels use, industrial processes, waste
management and treatment, just to mention a few.
A different approach to sorting, is the use of the spatial reference of the source. As mentioned
previously, this is the source of emissions from a stationary or mobile source.
In general, most of the problems that are associated with air pollution have a strong link with
anthropic activities, like the use of fossil fuels, either for transportation purposes, or for other
common kinds of energy requirements from households and industries. Pollutants have a close
connection to the industrial activity that is being performed, so, for instance, transportation
contributes vastly to levels of sulphur and nitrogen oxides, and to a minor extent with lead. Energy
production (e.g. electricity), on the other hand, accounts for a great deal of nitrogen and lead
oxides, and to a lesser extent, sulphur oxides. Carbon dioxide and carbon monoxide, are
associated with the use of fossil fuels, but these are also generated by agricultural activities,
livestock and cattle farming, and waste disposal (IDEAM, 2001b).
With regard to those gases that create a local effect, the emission core, are more closely
associated with the great urban areas, due mainly to a more concentrated and comparably bigger
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energy demand than in rural spots. This is obviously explained by a higher population density,
and those industrial processes of materials transformation that are condensed within cities. Thus,
Colombian metropolises like Bogota, Cali, Medellin, Barranquilla, Cartagena, Barrancabermeja
and Sogamoso create most of the emissions of potentially local impact, therefore, making more
vulnerable the people that inhabit these urban settlements. Bogota, Cali, and Medellin, are some
of the more polluted cities on the American continent (DAMA, 2004; Gurjar, Butler, Lawrence, &
Lelieveld, 2008; IDEAM, 2004; REDAIRE, 2003).
Particulate matter represents a serious threat to human health and its level of danger is
inversely related to its size. Those particles with 2.5 µm or less are markedly more hazardous to
human kind (Franklin, Zeka, & Schwartz, 2006). Indeed, the local pollutant that attracts more
attention is particulate matter, because it is responsible for most human health issues (Azizi,
Zulkifli, & Kasim, 1995; Calixto & Díaz, 1995; N Lozano, 2003). In the biggest cities, the level of total
suspended particles (TSP) and particulate matter with less than 10 µm (PM10), frequently exceeds
the guide values established in the standards of the regulation in Colombia (DNP, 2007).
3.4.3 Sources of air pollution and affected sectors in Colombia
According with IDEAM calculations, 41% of total atmospheric emissions, and close to 75% of
the national burden of industrial pollutants are focused in the 8 biggest cities and industrial
centers in Colombia (IDEAM & MAVDT, 2007). Crossing data with DANE, near to 45% of the urban
population in Colombia is located precisely in these places (DANE, 2005). Furthermore, it has been
established that mobile sources of pollution, within these 8 cities, are liable for most of the gases
emissions in to the atmosphere. A vast proportion of them occur in Bogota, where mobile sources
account for nearly 169 thousand tons out of 200 thousand tons. However, the situation is similar
in other cities:
 In Medellin mobile sources load the environment with 110 out of 128 thousand tons
 and Cali 99 out of 127 thousand tons
In the remaining 5 cities, Barranquilla, Sogamoso, Bucaramanga, Cartagena and Pereira, pollution
levels do not surpass 50 thousand tons of total emissions each (Brugman, 2004).
In contrast, stationary sources of air pollution are much lower in comparison to mobile ones,
in a national perspective. By 2002, the transportation sector was accountable for 85% of the total
volume of contaminants (including TSP, PM10, SOX, NOX and CO). In addition, there is a substantial
difference between the sulphur content between the fuel that is domestically produced and that
which is imported. And consider that gasolinegenerates1000/300 ppm, while diesel is 4500/500
ppm. The industrial sector was culpable for only 9% of the total volume of pollutants, while the
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thermal energy generation sector (firewood combustion, coal, liquefied petroleum gas, kerosene
and natural gas)was accountable for a slight 3.1% (Brugman, 2004).
Therefore, massive transportation systems (like articulated buses) must be encouraged to
work efficiently from an environmental perspective and also in terms of energy consumption. An
added benefit with massive transport - it reduces the number of cars on the road, thus improving
overall travel time for commuters, but it is also a good alternative to protect urban environments.
In the same way, a review of less polluting alternatives must be considered as well. Bioenergy for
instance can capture carbon dioxide when the chosen feedstock is grown, via the photosynthetic
process, although it does have inconveniences associated with the process, as will be explained
later. Electric engines could also diminish most gases emissions; however, such technology needs
to be proven safe in terms of battery disposal management. Like those examples, there could be
other devices and technological advances that help to curve the increase in air pollution, however,
at this time most of them are too expensive to be implemented in the short run, or simply too
complex to be introduced into the Colombian context.
Picking up the thread on pollutant sources; agricultural practices, such as burning of biological
wastes after harvest, have a big role in producing CO and NOX. In Colombia, by 1996, the
participation of the agricultural sector in the production of these gases was 47% CO and 19% NOX.
Unfortunately, such practice is still widely spread in sugarcane cultivation, greatly affecting those
populations close to the plantations. Nevertheless, it is important to acknowledge that there are
no epidemiological conclusive local studies that infer a direct association between such practices
and the potential hazards on human health by those populations directly exposed to those
pollutants that emerge as by-products of burning routines (combustion gases and particulate
matter) (Perez et al., 2010).
In regards to greenhouse gas (GHG’s) emissions, those activities that implied the use of fossil
fuels, industrial processes, inadequate agricultural land management and forest exploitation,
jointly released near to 150 thousand Gg of CO2-Eq in 1994 (IDEAM, 2001a).
Air pollution is definitely a great problem in big urban and industrialized settlements in
Colombia. Monitoring plans are still quite precarious and are neither continuous in time nor
provide accurate and up-to-date information, that can help to build up a National System of Air
quality. There are 19 air quality networks that operate within the national territory, but
management issues, like constant changes in the operating staff, avoid proper delivery on the
information (Perez et al., 2010).
3.4.4 C
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3.4.5 onsequences of air pollution in Colombia
Air pollution in urban cores has become in an important problem, in terms of public health,
due to the fact that it raises the likelihood of morbidity, and mortality in infants and elderly people,
particularly by causing respiratory conditions and cardiovascular diseases (Franklin et al., 2006;
Norman, Cairncross, Witi, Bradshaw, & Collaboration, 2007; Slaughter et al., 2004). The CONPES
document 3343 shows the annual cost of public health on account of air pollution in urban zones
in COP$1.5 trillion (USD 535 million approx.). Such cost have been assessed based on the
treatment of premature mortality as a result of cardiopulmonary problems and lung cancer, and
several deaths respiratory type (DNP, 2005). It has been estimated that there are close to 6000
deaths by these causes per annum. The incidence of particulate matter on the health of rural
population is also a big concern, due to the use of traditional biomass, i.e. firewood, as fuel for
heating and cooking purposes (WB, 2007).
Despite the abovementioned points, there are difficulties to evaluate properly the impacts of
air pollution on human health, because analysis has identified deficiencies in data collection and
compilation, in conjunction with poor reports of respiratory syndromes associated with air
pollutants. If the aforesaid is added to a deficient monitory protocol in the assessment of
atmospheric emissions, the whole situation is clouded in uncertainty. This lack of definite
correlation between health issues and air quality prevents establishing actual benefits from
government interventions in terms of prevention and air quality control. Therefore, large
investments in emissions estimations and forecast, monitory programs, and development of
control strategies might be lost if it is not clear to what extent these initiatives help to enhance
health levels of affected communities (Perez, 2007).
3.4.6 Air management in Colombia and their problems
Air quality management is the process whereby strategies are designed to implement plans
and use tools in order to control and monitor sources of pollutant emissions. This management
set guidelines and put in motion policies in order to restore air quality and reduce harmful impacts
on health and environment.
There are 18 air control networks installed in Colombia, but the IDEAM ratifies just 6 of them,
who have a record of registers for some pollutants. Consequently there are constraints in the
quality of information and the possibility to aggregate data at a national level (IDEAM, 2004). In
summary, with the little information available it has been possible to identify that particulate
matter (PM10) is one of the pollutants that supersedes the regulated standard value.
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However, there is an urgent need for studies that can precisely determine the magnitude of
the effects on human health that is caused by concentration of particles into the air and the
incidence of other contaminants, such as that of particulate matter less than 2.5 µm, and
tropospheric ozone (DNP, 2007).
Recently, projects around the Sistema Integrado de Transporte Masivo –SITM– (Massive
Integrated Transportation Systems) have been introduced as a response to mobility issues in
several cities, however, the environmental aspects have not been considered as a relevant factor
in any of the current SITM projects. So far, there is no a single SITM project that reports any
positive correlation with the SITM implementation.
Biofuels, on the other hand, have received support from the government and have been
presented as air cleaning agents (or less polluting agents in comparison with regular fuels),
because precisely one of the promotional drivers is their ability to act as catalyzers, improving the
combustion effect.
3.5 Climate change and climate variability
3.5.2 Climate change and climate variability
Climate change (CC) is the biggest environmental threat in recent times, and despite its vast
discussion on the public stage and political arenas, this concept is subjected to different
interpretations. Therefore, this concept tends to be mistaken for climate variability, the
greenhouse effect and global warming. Climate variability (CV) makes reference to variations in
the average climate conditions and other climate statistics (such as standard deviation, extreme
phenomena, etc.) in all spatial and temporal scales that go beyond a meteorological event.
On the contrary, CC is defined as the modification of climate over large periods of time, usually
decades, and related with comparable historic periods, due to natural causes, internal or external
to the Earth, or anthropic but occurring in the geological past.
The net effect of CC on agriculture and bioenergy production is highly uncertain, given on one
hand new trends in temperature that have not been recorded before, and on the other the
adaptive response of farmers to such phenomenon (Chum et al., 2011).
Climate warming moves along with CO2 concentrations and corresponding changes in stages
in the water cycle (like precipitation patterns and transpiration effects). None of the potential
effects from these natural modifications can be currently forecasted with certainty.
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3.5.3 Causes and forces of the Climate Change in Colombia and in the World
Climate change (CC) can be unleashed by natural causes but also by the action of man. The
most important trigger that has been reported and studied is the Greenhouse effect, which has
both natural and human origin.
Most of GHG’s emissions are explained by CO2, in fact they account for 75% of the gross
emissions. However, this does not take into account the CO2 lost from the atmosphere by effect
of forest recuperation, or oceanic absorption. Following that line, the remaining elements of
methane, carbon oxide, NXOX, O3 and Chlorofluorocarbon gases (or CFC’s), are equally responsible
for global warming. The GHG’s are predominantly produced by fossil fuel combustion, related
with various production sectors around the world.,
World levels of CO2 have reached an atmospheric concentration of 379 ppm in 2005,
compared with an approximate concentration of 280 in 1850 (Solomon et al., 2007). Methane
concentrations have risen as well over the same period of time (from 0.7 ppm in the industrial era
to 1.7ppm in 2005), due, among other factors, to an enormous release of gases by extensive
livestock and cattle farming, solid wastes and burning practices. There has been reported an
increase in the levels of nitrous oxide (going from levels of 0.27ppm to 0.32 ppm just in 2005)
which correlates with the change in agricultural practices and intense use of fertilizers. It is
important to point out that the global warming potential of these gases far more powerful than
CO2, (Methane 21 times more than CO2, and Nitrous Oxide 3100 times!) (Solomon et al., 2007).
The contribution of Colombia to this particular problem is quite low, reaching only 0.4% of the
global total in comparison with other nations around the world, and even in the LAC region, being
surpassed by countries like Mexico, Brazil, Argentina and Venezuela. In 2001 the IDEAM
presented a study which calculated the GHG’s emissions (particularly CO2-Eq). It that study
Colombia was calculated to produce emissions of more than 54 million Gg, and nearly 34.1% of
that was the responsibility of the transportation sector.
Therefore, an energy source such as ethanol or biodiesel, which reduces emission levels, might
help to alleviate, temporarily, the pressure on the environment, only if the net effect is not
affected greatly by LUC and iLUC effects. These effects will be the subject of further discussion
later.
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3.5.4 Effects and consequences of climate change in the World and Colombia
All these factors in union, or even individually build up climate phenomena (changes in the
atmospheric pressure, in the air circulation systems, rain distribution and frequencies), which in
turn might result in climate change.
Nevertheless, there is uncertainty as to what extent and how fast the consequences of it take
place. This uncertainty is inherent to the weather system, due to its non-linearity and complexity.
Bioenergy takes part in the terrestrial carbon cycle given that resulting emissions from burning
processes will be absorbed later during the growing period of the plantations42. In accordance
with a particular land use terrestrial carbon stocks are released to the atmosphere, therefore the
inclusion of LUC effects is crucial for recent LCA studies43.
Production and use of bioenergy influences climate change through emissions from the
bioenergy chain, changes in the biopheric carbon stocks, alteration of markets (such as the fossil
fuel one) by the implementation of bioenergy and changes in established environments
(modifications in existing albedo) (Chum et al., 2011).
It is important to point that bioenergy does not necessarily unleash LUC effects. For instance
combination of feedstock and some other crops can avoid land displacement. Use of cellulosic
material, as well as some wastes and residual oil also provide an alterntive in this case. The case
of Colombia presents a particularity where it is traded part of the land that was formerly used for
exporting sugar and nowadays is utilized to feed the ethanol production process, therefore, there
is no need for additional land under the current circumstances, but it could be reconsidered in the
near future if ethanol and sugar exports are taken into account.
The use of firewood in a traditional way for heating and cooking task is not efficient, and
produce large amount of incomplete combustion products, that impact negatively on CC and the
local air quality (K. R. Smith et al., 2000). Consequently its reduction by the implementation of
modern biomass products can alleviate those aspects recently mentioned, and the AGB stocks,
and forest preservation (with its results on biodiversity) can be done easily (Ravindranath,
Balachandra, Dasappa, & Usha Rao, 2006).
42
Net carbon balance is not necessarily equal to zero, given that the sequestration process can take
longer than the emission one in some cases (Chum et. al., 2011).
43
These effects can be broken down in direct and indirect LUC. The former have been included in
LCAs since the year 2000, while the inclusion of the latter is practically absent in studies of this nature. In
this document both effects have been taken into consideration.
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3.5.5 Policy actions to tackle CC in the World and Colombia and their main
obstacles
According to the latest report of UNFCCC, Colombia was responsible for the emission almost
180 Tg CO2 Equivalent in GHG during 200444. In fact, in comparison with the previous assessment
in 2000, the growth of GHG has raised up to 1.33% over the whole period. The contribution of LUC
effect and associated emissions for 2004 was nearly 14.5%. (UNFCCC, 2013) Even though Colombia
does not contribute heavily to GHG’s (just 0.5% to the world’s total emissions, i.e. 30689.5 Tg CO2
Eq in 2004) (Anderson, Fergusson, & Valsecchi, 2008), it has been active within different
agreements and treaties on climate change, like:
 the World Meteorological Organization (WMO) and its World Weather Watch (WWW)
program,
 the program of the Inter-American Institute for Global Change Research
 the UNFCCC and its Kyoto protocol,
 through laws 164 of 1994, and 629 of 2000.
Within these agreements Colombia has committed to develop political answers and strategies
through mitigation and adaptation, which have been recognized as valid solutions to CC problem.
Since the first official national communication to the UNFCCC (IDEAM, 2001a), Colombian has
adopted an active role in implementing mitigation actions, by mean of Clean Development
Mechanisms or CDM’s as introduced in the Kyoto protocol. These projects cover energy
production, urban mobility, waste and residual management, among others. So far, these projects
represent 0.86% of projects at global level (DNP, 2007).
The quota of responsibility in GHG’s emission for Colombia at world level is quite low, for that
reason it is difficult to think of a public policy directed at climate control that gives national priority
to mitigation of CC. Despite the benefits that are included in the CDM’s that have been
implemented so far in Colombia, it is important and imperative to highlight the urgent need of
setting in motion an adaptation approach, given an enormous vulnerability of strategic sectors
such as water resources, agriculture, health and life-supporting ecosystems. It is also crucial to
focus political efforts, institutional capacity and knowledge development in this field.
Climate change can be faced with an adaptation strategy, but CC requires a long term strategy
as well. So, work must be directed to diminish GHG’s emissions and move forward on mitigation
actions. This implies the need of restructure the energy matrix towards sustainable alternatives,
44
Including LULUCF/LUCF
105
such as solar, photovoltaic, wind, tide, etc. First generation biofuels in particular can be a
transitional option. However, they still represent serious threats to environmental and social
equilibriums, if they are not managed properly. Nevertheless, they can provide a low-cost
alternative, giving some time to mature other options like cellulosic bioethanol, or algae-based
biodiesel, or even some other future options for transportation.
In order to achieve integral management capable of facing the challenge that threatens, it
requires an holistic vision or to assume CC as a common factor in the environmental problems
that Colombia is confronting, and as an issue that should be managed with a trans-focal and trans-
disciplinary approach that covers more areas of expertise that just environmental management,
it also needs political, economic and social intervention at a national level, incorporating an
adaptation perspective. Alongside this, Colombia must develop an institutional framework that
coordinates such management tasks, taking into account those different sectors (DNP, 2007). By
doing so it is possible to build a more effective set of policies, create regional coalitions for the
inclusion of people, and extend the scope of the local effects to a global level (Bergkamp et al,
2003).
With regard to vulnerability reduction in Colombia, and thinking of the possibility of increasing
its adaptive capacity, it must be considered that, albeit adaptive capacity of ecosystems hinges on
several biological factors, among them the extension of ecological niches, genetic reserves, etc.,
human capacity of adaptation goes beyond and does not only depend on knowledge (technology),
but also on the institutions, social, legal and political powers, that rest upon public workers and
society in general (Bergkamp, Orlando, & Burton, 2003).
Among the weaknesses for prevention and control regarding CC, at a national level, there is
an evident lack of a general action plan, as well as local and regional strategies for mitigation and
adaptation to CC. There is no adequate institutional framework either, that coordinates such
management: it presents failures in responsibilities allocations and coordination capabilities (DNP,
2007).
Therefore, the next 10 years will be fundamental for Colombia to define its position towards
a threat of climatic variability and climate change, given that the adaptation costs from now until
2030 at a global level could increase between 5% and 20% for global GDP (Stern et al., 2007).
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3.6 Deterioration of the environmental quality of the human habitat
The problems with the human habitat can be described by a lack of environmental rationality
expressed in either rural or urban living standards. This can be sensed, described, and assessed
by the severe flaws in quality of life for different sectors of the communities. Such problems
frequently manifest by the habitation of degraded environments, which are commonly associated
with poverty conditions.
A clear manifestation of the aforementioned in urban environments is the accumulation of
people in overcrowded cities, which in fact are unable to provide adequate sustenance locally,
and are incapable of processing or disposing of waste adequately. The result of the great number
of needs, and a shortfall in infrastructure, is that support for an enormous population turns into
excessive energy consumption and big environmental impacts.
Urban settlements in developing nations are growing without control in most cases. It is
common to find megacities without green zones or basic health infrastructure, along with severe
shortages in water and shelter. In such cities, just under 50% of their population have running
water, and 25% go to public fountains, or wells, or use manually operated pumps, while the
remaining 25% have to use non-drinkable water (Habitat, 2008).
In a general sense, cities have been growing in a segregated way, surrounded by slums and
precarious public spaces, in strongly degraded social and physical environments. Colombia has
not been the exception to such trends.
Urban demographic growth and rural population diminishment.

Colombia has experienced a similar urbanization process to the one experienced by several
countries in Latin America. In just 40 years the organization of Colombian territory has changed
drastically, turning into a more urbanized country. The last census that was carried out in
Colombia, took place in 2005. This statistical exercise revealed a population of 41.5 million, of
which 76% were living in urban areas as a result of the expected migration from the countryside
to cities, but also augmented by the forced displacement phenomenon from internal conflicts. It
has been suggested that by the year 2020 populations could reach 43 million people in urban
settlements.
The growth of Colombian cities has not followed any sort of formal planning whatsoever, and
as a consequence some of the environmental problems mentioned earlier emerge.
The possibility that bioenergy brings to this problem is one of the main drivers associated with
an active biofuel implementation policy - to provide different alternatives for rural development.
Therefore, if energy crops are established as part of an extensive policy, the migration from rural
107
areas to cities can be reduced. This situation would lead to less crowded spaces and eventually
better life conditions.
3.7 Conclusions
Biomass use is definitely a source of conflict, therefore its employment for energy provision
require a balance of advantages and disadvantages. A disruption in the natural equilibrium entails
a thread of environmental crisis, which can be summarized in 5 problems. Those problems are
closely linked with the implementation of biofuels plans, such as the one that is presented by the
Colombian government.
Biofuels production, commercialization and use can help to mitigate some of those issues, but
also can trigger or stregnhten others.
In particular for Colombia is concluded that current location do not pose threat on
biodiversity, and future expansions have only been considered within authorized (non protected)
areas. However some other obstacles might emerge as the disruption or fragmentation in natural
habitats, and the intensive use of agrochemicals.
LUC and iLUC effects are also foreseen in the implementation of bioenergy projects. Soil can
be seriously deteriorated by agricultutal practices, therefore R&D and training to farmers are
required to use a soil-friendly techniques, without compromising yields. Bionergy projects in
Colombia can be expended in detriment of livestock farming, which is neithr intensive nor
technified enough.
Water availability is one of the biggest difficulties to overcome for biofuel expansion projects,
due to the heterogenic distribution of the resource. Eventually water management treatments
can mitigate this issue.
Biofuels can contribute positively and negatively to air pollution and CC. On the good side,
photosynthetic activity removes vast amounts of CO2, produced by manufacturing and burning
processes, but at the same time biofuels itself required to be burned and in the agricultural stage
offer a great contribution of NO2 among other GHG’s.
On the social aspect, biofuels might turn into an attractive alternative to bring bact confidence
in the rural areas. As consequence of this, inverse migration from urban to rural areas could be
unleashed with a better distribution of a very uneven demography.
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4 BIOFUEL COSTS AND PRICE FORMATION
As part of the economic analysis of the biofuel chain in Colombia, there are those factors that
determine both costs and prices within the industry. This section reviews contractual agreements
and formulas that explain the role of the feedstock producer, transformation agent, and
commercial trader.
4.1 Biofuel production costs
Costs in any agricultural-based chain or product development will depend on several factors:
 price of land,
 labor wages,
 technological level,
 domestic capabilities to provide proper equipment, and others.
At a global level, those biofuel processing nations that are at the forefront of development and
production have proven to be quite efficient in their processes and the cost of production, and
have exhibited remarkable results. For example, biodiesel in the case of Malaysia and Indonesia,
and sugarcane-based ethanol in the case of Brazil, noted as follows: “The US, the 2nd leading
ethanol producer in the world, has variable costs of production of corn-based ethanol of US$0.96
per gallon. Fixed costs range from US$1.05 to US$3.00 per gallon. While in Brazil the total cost of
production was approximately US$1.10 per gallon during the 2005 crop year, with variable costs
of US$.89 per gallon and fixed costs of US$.21 per gallon.”(Martines-Filho, Burnquist, & Vian,
2006).
Such very competitive costs are not the outcome of a sudden set of conditions, but on the
contrary, come from the implementation of long-run strategy. In fact, it is reported that by 1980,
at the beginning of the PROALCOOL program the production cost in Brazil was near to
US$100/barrel, i.e. between US$2.7 and US$3.2 per gallon (José Goldemberg, Coelho, Nastari, &
Lucon, 2004).
4.1.2 Palm oil biodiesel cost
In the case of biodiesel there is a wide range of results regarding the chosen feedstock as is
shown in Hass and his team’s study: “Calculated production costs (which included the cost of the
109
feedstock and of its conversion to biodiesel) ranged from US$0.30/l ($1.14/gal) for fuel produced
from soybeans to US$0.69/l ($2.62/gal) when rapeseed was the feedstock.” (Haas, McAloon, Yee,
& Foglia, 2006).
Compared with these experiences, Colombia must overcome several barriers in order to
mature its ongoing biofuel industry in this competitive market. Among them, is the excessive
labor cost. In fact, by 2010 the regular wage for an agricultural worker went up to US$13 (for a
normal shift), whereas in other tropical regions around the globe (like Indonesia), it is possible to
find shift payment under US$5/day. These incredibly low costs are due to workers from other
poorer nations being introduced to gain cheap productivity.
There are several studies and estimations that provide an insight to the costs of production of
palm oil in Colombia. Some of these studies include comparisons with the international references
mentioned above. Despite the closest reference in regional terms would be to the Argentinian
figures, it is not as profitable when compared to the South East Asian countries, given that
Argentina has its strength in soybean production, while the SE Asian countries and Colombia have
a palm-based biodiesel industry, and also share similar climate conditions.
The main component of the cost of Biodiesel is the cost of feedstock itself and in this case, it
would be used the vegetable oil, as price floor. According to some calculations, the cost of
producing palm oil in 2006 was US$ 482 per ton (in the Eastern region of Colombia). The exchange
rate was close to COP$2500 per dollar and if it had dropped by 20% (COP$2000/US$) the cost
would have grown by 25% (Infante & Tobón, 2010). When checking other sources of information,
such costs have been underestimated: FEDEPALMA has published data for the same year, and by
using the actual exchange rate of COP$2387.58, showed a cost of US$536.16/ton (at a constant
prices for 2007), which gives a more accurate calculation. In fact, during 2007 the national
average cost was COP$1,285,014, but with an exchange rate of COP$20078.35 per dollar, it
resulted in a production cost US$618.29.
The most important thing in an analysis of this sort is following the relative evolution of the
cost rather than establishing such costs in absolute value. This means that a break down on the
data into fixed and variable costs might boost the performance of the industry, as it is presented
in the graph below.
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Figure 13 Palm oil production cost composition
Palm oil production cost composition

in Colombia 2007 (by zones, COP$)
$ 300.000
$ 250.000
$ 111.021
$ 121.128
$ 128.003
$ 127.298
$ 116.498
$ 200.000
$ 150.000
$ 100.000
$ 134.603
$ 117.265
$ 116.872
$ 112.219
$ 111.690
$ 50.000
$0
East Center West North National
Fixed Variable
Compiled by the author. Data source: Fedepalma website
In particular, the zone with the lowest cost is the Eastern region of Colombia, and here variable
and fixed costs are evenly distributed. On the contrary, the Northern region exhibits the highest
cost of all, but here, just as in the Eastern region, costs are uniform (nearly 50/50 in both cases).
The difference among regions is not substantial at all. By 2007 the gap in cost was close to US$6
per ton.
111
Figure 14 Average Conformation of palm oil production costs
Average Conformation of palm oil

production costs (2007)
Administrativ
Other e
variable costs 14,2%
18.7% Infrastructure
and
equipment
11,6%
Land
15,1%
Crop
activities
40,4%
Compiled by the author. Data source: Fedepalma website

Another deconstruction of cost is given by the data provided by Fedepalma in its website,
where it is established that the main part (more than 55%) of these costs can be explained by
agricultural activity if both land acquisition or leasing, and tasks related with the crop management
itself, are included.
4.1.2.1 Palm oil fruit price
Price structuring in the case of Colombia, for the palm industry was presented and accepted
several years ago, so the benefits of the agricultural process must be shared between farmers and
processing plant owners. The scheme is based on the foundation of shared risk, thus the payment
on the palm fruit would be in accordance to the amount of oil obtained from each ton of fruit.
The extraction rate can fluctuate significantly from one processing plan to the other, or
changes can be noticed among different plantations, depending on the palm variety and
harvesting conditions. Nonetheless, in most cases rural farmers receive between 60% and 78%
on the extraction rate, and the remaining fraction goes to the processing plant owners.
There are various factors that determine to what extent the percentage can be increased that
goes to the farmer, as is explained below:
 Crop age, because yield varies according to the stage of the life cycle.
 Quality of the product, understood as the percentage of the oil contained in the palm fruit
 Degree of competition within a limited zone
112
 logistic expenditures
The existence of contracts in the palm fruit industry is infrequent, thus in some cases
negotiations take place under informal arrangements. However, when contracts do exist, they
must specify parameters for:
 the conditions of fruit reception and delivery,
 terms of price settings and distribution,
 regular payment timing conditions,
 and supply exclusivity commitments with some of the available extraction plants (López,
2000).
Within these contracts it also must also be clear that some of valuable agricultural wastes,
such as the empty fruit husks belong to the farmer and must be returned by the plant processing
owner. If the owner states otherwise, compensation must be offered to the farmer to offset this
loss (Hurtado & Hernández-Salazar, 2010). This sort of waste has turned into a quite interesting
by-product with a high content of moisture and nutrients. With a simple procedure it can be easily
transformed into natural fertilizer. Besides, it seems that this by-product has the potential to be
used as feedstock for cellulosic bio-ethanol.
taking into account that the job of the farmer is to produce as many palm fruits as possible,
with the highest oil content as possible, while the plant owners should extract as much oil as
conditions allow, it seems that the described payment method for palm oil is a good foundation
to transfer proper incentives to the different links in the chain. However, there is a factor that
needs to be solved to seek standard fares - each processing plant must report the accurate
measurement of the oil content of processed fruits, so they do not have to follow regional average
productivity indexes that are employed nowadays.
In order to move forward into better and stronger relationships, it is important to formalize
links between the stakeholders, or at least between direct parties within the processing palm
chain, by adopting models of contract that specify commercial, technical, economic and legal
aspects, eliminating uncertainty and gaining trust and stability for each party (López, 2000).
The palm sector relies a Price Stabilization Fund (PSF), which determines the price of crude
palm oil, therefore, this price is the most common used as a reference for those sales between
farmers and extraction plants (García, 2008).
This fund acts as an income stabilization agent for palm oil and kernel oil producers,
throughout compensations and transfers in function of international prices of these products and
their substitutes.
113
The reference domestic price for palm oil is built upon the base of the international price of
this product, or its substitutes, plus tariffs and logistic expenditures (such as freight and port
charges). The reference price then turns into an import parity price.
The reference international price (when the product is exported overseas) is calculated based
on the regular international price, minus freight charges (from Colombia to abroad) and export
expenditures. In this way the external reference price is an indicator of the FOB price for national
production.
The PSF mandates transfers when the international price is above the reference price, and
uses compensations when the international price is below the reference price. Under this
procedure the PSF looks to stabilize the average income for agricultural producers, based on their
sales to markets that have different prices and profitability.
Given that reference prices are established by the PSF for a 30-days period and the
information is provided in advance, it is possible for crude oil producers to inform their providers
almost immediately of such adjustments. In this way, Fund’s operations have a direct effect
over the income that is perceived by the producers, i.e. the payment of the palm fruit.
4.1.3 Sugarcane-based ethanol
The competitiveness of Colombian biofuel prices has not reached international standards, as
seen by the ethanol prices - by 2006 a barrel of bio-ethanol using sugarcane produced in Brazil
cost US$32. The same amount, using corn in the USA reached US$47 and in the EU using beet
US$86 (Tokgoz & Elobeid, 2006; Von Braun & Pachauri, 2006). In Colombia a barrel of ethanol
costs US$63. The cost of feedstock only, in the Colombian case (US$44), exceeds the total cost of
Brazilian ethanol and nearly matches the American one (Infante & Tobón, 2010). Feedstock takes
nearly 70% of the total cost in the Colombian example, and while it is the largest component of
the final cost for every country, it is only against the Brazilian case where the gap is not that wide
(in percentage terms, although in fact it is the wider in absolute terms) See graph below.
114
Figure 15 Production cost composition for a barrel of ethanol in different countries
Production cost composition of ethanol

(2006)
100
90 Capital
80
20
70
Operations and
60 12 5 Maintenance
US$/barrel
50 12
12
5 2
40 Inputs
8
30 7 12
2 44
20 4 42
Feedstock
10 19 22
0
Brazil USA EU Colombia
Source: (Infante & Tobón, 2010)

Note: In Brazil and Colombia ethanol production is sugarcane-based, whereas in USA and EU main feedstocks are corn and beet
respectively.
The Americans have experienced a more volatile path than the other producers involved in
the graph. In 2008 the price of corn soared drastically, and so did the price of ethanol, touching
nearly US$85 per barrel. (Van Den Wall Bake, Junginger, Faaij, Poot, & Walter, 2009)
Situations like that, of course, favor Colombian competitiveness, but at the same time also
benefit direct competitors like Brazil, or any other sugarcane-based ethanol producer45. A way to
improve attractiveness to international markets is to drop prices via capital investment, i.e.
machinery acquisition and technological conversion. However, a choice of that nature is highly
sensitive and, in point of fact, possesses a negative effect in terms of job creation.
In the Cauca river valley region of Colombia, sugarcane yield is close to 120 tons/ha/year
(FAOSTAT, 2011). This amount is cut manually at a rate of 3 tons per daily shift. That would imply
that by introducing heavy machinery for cutting purposes they can replace approximately 40 shifts
45
The data provided in Figure 15 can only be supplied for the year 2006; more recent data do not
appear to be available. The tendency for costs of production to come down is widely recognized and
discussed for example in van den Wall-Bake et al (2009)
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per hectare every year. Furthermore, each cutting machine is able to process nearly 250 tons of
cane per day (C.A. Ramírez Triana, 2011).
Using simple math on the case of Cauca valley, we know it has approximately 200 thousand
hectares for sugarcane plantation; hence it is possible to produce 24 million tons per annum. If
cane were to be entirely cut by modern equipment, in a year it could produce 91,250 tons by one
single machine working every day. Under this assumption it would be necessary to employ 264
machines per year to fully harvest these crops. On the other hand, if it is assumed that such
machinery is able to replace labor completely, then around 8 million shifts will be lost.
In summary, despite the fact technological conversion could provide a good financial solution
for the issue of competitiveness, it represents a high social threat, therefore, it is vital to explore
other alternatives in order to reduce cost per unit.
One possible alternative is the introduction of precision agriculture, given that it could
enhance productivity and reduce economic losses and environmental impacts through technology
(Bongiovanni & Lowenberg-DeBoer, 2004; McBratney, Whelan, Ancev, & Bouma, 2005). Another
possibility rests on the fact that transport and storage infrastructure requires update and
improvement. There are some regions where the use of pipelines is a better choice than the
regular road transport method; however, such decisions require mutual agreement between the
government and sugar industry representatives.
4.1.3.1 Price for sugarcane
In the sugar industry, just like in the palm industry, the major players in the chain are the
agricultural producers and the manufacturers (or processing plant owners). In order to set a price,
what happens in the sugar industry is that farmers deliver or provide sugarcane to the mill or sugar
processing plant (also called ingenio), and according to the volume and quality of sucrose, the
amount of equivalent sugar kilos is calculated. This is used as floor, and over it distribution starts.
The farmer receives 50% of revenue from sales by this material. Price is built as a result of a
weighted average, which is calculated taking into account all sales by the ingenio in every one of
its markets. In this way, indirectly, all suppliers (including the small farmers) participate in each of
the markets where the ingenio trade (Infante & Tobón, 2010).
Within contracts, it is defined that all kilograms of sugar that have already been paid for by
the suppliers are considered delivered, packed in sacks of 50 kilo each, and ready for being shipped
to a traditional market. Any additional expenditure that needs to be paid in order to commercialize
the product (different to the ones considered for the traditional market), must be assumed by the
sugarcane provider and it is deducted from the total payment. Such expenditures take into
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account those costs to transform crude sugar to white sugar, or refined sugar, or any other form.
In fact, bioethanol is judged to be one of these varieties. Some additional charges include:
 logistics and commercialization costs,
 terrestrial and maritime freights,
 warehousing,
 insurances,
 packaging,
 fixed and variable fees from the international trader,
 and the remaining administrative and financial expenditures.
In addition, the price of the contract can be modified by intervention of the Fondo de
estabilización del precio del Azúcar -FEPA- (Sugar Price Stabilization Fund), that adjust the
processing plants income based on a scheme of retentions and compensations to stabilize
incomes to all participants along the sugar processing chain (Prada, 2004).
According to the ongoing legal framework this fund acts as a “Chamber of Compensation”.
So, first they set a reference or equilibrium price, then, when the product is sold at a price over
the reference one, then the difference is retained by the fund. In a similar way, when sales take
place with a price under the reference one, the producer is recompensed with the exact difference
between equilibrium and actual price.
In the particular case of the sugar market, FEPA applies its tools to balance the income
obtained by each plant individually, based on the average income perceived by the industry as a
whole by the sale of sugar and by-products.
By stabilizing prices a constant income is guaranteed for each plant, reducing uncertainty and
creating favorable conditions and incentives to supply the domestic market and also to create
surplus for exports. This practice is not unfair in any way - - a market like the sugar one, which is
highly controlled and subsidized, does not reflect competitive prices in most cases.
The implementation of this scheme is quite similar to the one employed in the sugarcane
provision payment contracts explained above. The representative price of each market, which is
the adjusting factor for the ingenio’s income, comes from a weighted average of the sales from
the entire industry in every one of the markets where their products are traded. This formulation
can be expressed as follows:
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PPP = (Y ∙ PRMT) + (Z ∙ PROM)
Where:-
PPP = weighted average price
PRMT = Representative Price of traditional market
PROM = weighted average of representative prices of all other markets
Z = share in those markets different to the traditional
Y = 100%-Z46
There are some aspects in the calculation method that need some further explanation.
For export purposes the prices used by the fund are those corresponding to the weighted
average of the lowest quality in a given market. The reason why this is the chosen control, is to
create an incentive for competition and to foster value creation among the plants owners. The
difference between the fund price and the actual sale price affects everyone individually, offering
better prices obtained by selling better qualities and by applying processes of added value.
When sales take place within domestic markets, but different to the traditional one, the
reference price are the New York price for crude sugar and the London price for white one.
This price intervention mechanism is calculated ex-post, meaning the income for the plant and
the industry are assessed once all trade operations have taken place in the sugar markets. Thus
FEPA do not intervene inside the markets and do not interfere in the relationships between plants
owners and agricultural producers.
The majority of ingenios transfer the effect of the adjustment implemented by the fund to
feedstock suppliers; therefore, income for agricultural producer is also affected by FEPA’s
intervention, and thus proves how important the fund is for all the links along the chain.
4.1.3.2 Sugarcane payment for bioethanol processing
The mechanism described previously received strong criticism from sugarcane producers,
when the ethanol processing plants starting to operate during the last quarter of 2005.
The cause of this clash when plant owners considered that existing contracts already cover
the way to handle sugarcane for bioethanol processing, given that this new product belongs to a
46
All the Acronyms are intentionally left in Spanish and are translated in the List of Acronyms. PRMT is
understood as the price in the domestic market (fixed by the Fund’s board and approved by the Ministry of
agriculture), thus Y is the share of sales diverted to domestic market, while Z corresponds to the share of
sales destined to supply foreing markets. International prices are taken from trading processes. Both
domestic and foreing prices are presented in Colombian Pesos (COP) per quintal (and hundredweight, which
is slighty close to 50kg). A good example of how the information is managed can be found in Prada Owen.
(Prada Owen, 2004)
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surplus market and it substitutes exports within crude sugar market. For this reason, there is
neither the need to adopt a new way, nor any additional special formula to calculate the price of
sugarcane destined exclusively for ethanol production.
Based on this premise, the final price for sugarcane is determined by the technical fact that
from one ton it is possible to obtain up to 75 liters of alcohol (67.7 directly from sugar and 7.3
from molasses). According to the contract, molasses belongs to plant owners, so a farmers share
is 50% of that biofuel obtained from sugar directly, i.e. 34 liters per each delivered ton of
sugarcane. Thus, the payment takes effect using that calculation as a base, but discounting all the
commercialization expenditures that were mentioned before. These costs have been measured
and they are equivalent to 8 liters of ethanol, therefore after alcohol fuel is sold ingenios offer
only 26 liters/ton to the agricultural producer.
Notwithstanding, the sugarcane producers organization PROCAÑA (Asociación de
productores y proveedores de caña de azúcar), consider that this product is destined to cover a
national supply of energy, hence it cannot be treated as a mere substitute of the crude sugar
exports, despite the fact that it’s a derivative of this item. Procañana argues that most of the value
content is embedded in the feedstock itself, and they as providers are receiving as payment only
26 liters/ton out of 75, which is barely a third of the whole value. Under this scheme, the entire
cost burden is on the feedstock producers’ shoulders.
Based on that, their suggestion is to guarantee distribution process in equal parts, i.e.
maintaining a 50% rule, but without applying discounts for processing and commercialization
activities. By doing this, farmers would increase their income to 44.2%, given that instead of
receiving 26 liters/ton they would receive 37.5 liters per ton of sugarcane delivered to the plant
under the new scheme.
The lack of agreement on these grounds leads to instability in the relationships between
feedstock producers and the processing plant owners, resulting in arguments that in some cases
have ended with renegotiation of contracts, or worse, their cancellation. These differences in the
criteria of contractual agreement between parties are crucial, especially to review how effective
the conflict solution mechanisms are, given that both interpretations share the point that
sugarcane productivity must be split into two branches of the productive chain.
Leaving aside the contractual disputes, there are other reasons why this conflict emerges in
the particular case of bioethanol production. Alcohol fuel manufacture started in a period where
the international price of sugar was particularly high; hence it was clearly unfavorable to compare
revenues from sugarcane-based biofuel sales versus the ones that come from pure sugar
transactions.
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During 2006, payment per ton of sugarcane to those suppliers of bioethanol plants was
inferior to those who offer their feedstock for sugar processing, due to a change in relative prices
of both products. So, some farmers had the perception that according to the ongoing scheme it
was more profitable to use feedstock to produce sugar rather than be manufactured into alcohol
fuel. However, the principle problem is not how proportions are determined, but rather, that
prices of sugar and ethanol do not always follow the same path, leading to different revenues.
An additional element of divergence is the way discounts are assessed by manufacturers, and
similarly, how costs are distributed in the ethanol production process. In order to account for
expenditures, ingenios do not apply a standard methodology; instead they come up with formulas
and practices of a diverse nature. In some cases, not only are mere operation included, but some
financial and reinvestment cost (such as depreciation) are added to the deductions against
agricultural producers. These sorts of practices distort the initial idea that is to help the main
capital investor (i.e. plant processing owner) to deal with the financial burden of the business.
Both feedstock suppliers and manufacturers agree that the bioethanol market as a clear
opportunity to heighten their income sources, and to consolidate a developing industry, with a
more diversify market. They also agree that preserving good relationships with each other and
strengthening links along the productive chain is crucial to provide a good future for the sugar
industry, thus offering improved profits for all stakeholders.
4.2 Conclusions
The Biofuel industry in Colombia has not yet achieved international leadership in terms of
cost47. Based on the information provided by Infante and Tobon, production cost are around 18.2
- 21.5 USD/GJ48, while countries like Brazil, Australia and Thailand have reached 14, 21 and 16
(either with sugarcane pressed or molasses) but the initial target is the domestic market, so it can
afford the short term poor price management performance, and by the time the industry gains
maturity it will be ready for a competitive international market. Feedstock for both alcohol fuel
and biodiesel is the most important component in terms of cost structure.
Benefits distribution relies on regulated schemes for ethanol, and unregulated schemes for
palm oil. In both cases, Price Stabilization funds act as a reference and somehow show the trend
47
The SRREN IPCC report shows in its table 2.7 an estimation of production costs that are available for
comparison with the Colombian case (Chum et al., 2011).
48
For calculations it was taken in cosideration equivalence of 1 litre of ethanol has between 18.4 and
21.2 MJ/l, i.e. between 2.92 and 3.37 GJ/b.
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for progress in the near future. As the transformation chain is long, conflicts between feedstock
producers and processors are emerging and they need to be addressed in future policy guidelines.
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5 BIOFUEL VALUE CHAINS AND CONTRACTUAL RELATIONSHIPS
The following section will present a complete description of how value chains work within the
biofuel industry and how legal and informal arrangements are establish to ease these chains’
functioning. This description is particularly useful to understand how benefits and responsibilities
are distributed from a socioeconomic perspective.
The concept of a chain makes reference to a holistic vision of a productive process, which
allows proper observation of different links, thus it is possible to see the representation of new
forms of new scenarios and bonds which are developed in an economic system, that imply the
coexistence of a set of parties and activities that are inextricably interconnected to obtain a
product in a given space (Kaplinsky & Morris, 2001). This concept and analytical approach is a
fine tool to explain the economic reality of a particular industry. In Colombia the ‘Chain Approach’
has been adopted as a tool to design and implement public policies for the agricultural and
agribusiness sectors (Gilbert, 2008).
Agribusiness biofuel chains, which have their final link in energy provision in the form of a
liquid carrier, are highly privileged because of the interactions that they represent. On the one
hand, they utilize feedstock and primary crude materials from the agricultural sector, but they
also offer and demand products, services, and money flow up and downstream. Government, as
a dynamic agent, must intervene in sundry aspects along the chains, with the purpose of
regulating, stimulating, monitoring and controlling some of these parties and their corresponding
actions.
5.1 Feedstock production and commercialization
5.1.2 Land Use in Colombia and its relationship with bioenergy
The unit of agricultural studies of the DNP (Departamento Nacional de Planeación – National
planning department) has made projections on the utilized land area for agriculture and livestock
farming for 2010 to 2019, including in these projections the latest progresses in efficiency in both
fields. The table below is a more complete version than the one presented in Chapter 3 shows
these results, contrasted with some internal data provided by FEDEPALMA, and with forecasted
results on sugarcane crop performance. It also uses some information from the Ministry of
Agriculture on the plantations for commercial forestry purposes, forestry for preservation, and
some data on jungles and natural reserves. Finally, the Instituto Geográfico Agustin Codazzi -IGAC-
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(Agustin Codazzi Geographic Institute) specified some indiscriminate data on rivers, mountains
and cities from the survey that took place in 2004.
Table 6 Current and forecasted land use in Colombia
Current and forecasted land use in Colombia (Million ha)

2019 *
Concept 2007 2010* 2019* (including
biofuels)
Agricultural land without energy
feedstocks 4.58 4.58 4.54 4.54
Palm oil for biodiesel 0.00 0.16 0.80 2.12
Sugarcane for ethanol 0.04 0.08 0.15 1.00
Agricultural land (subtotal) 4.62 4.82 5.49 7.66
Livestock and fallow land 38.87 33.90 27.50 24.65
Agricultural land (Total including
livestock) 43.49 38.71 33.00 32.32
Commercial forestry 0.26 0.35 1.36 1.36
Protected forestry land 7.21 7.21 7.21 7.21
Forest 38.90 38.90 40.60 40.60
National parks and reserves 9.00 9.00 9.00 9.00
Forest and reserves (total) 55.38 55.47 58.17 58.17
Cities, rivers and mountains 15.31 19.99 23.00 23.68
Total 114.17 114.17 114.17 114.17
* These calculations are based on the projections of the PNBs
Source: (Infante & Tobón, 2010{Fernández Acosta, 2009 #499)}
Evolution of the agricultural sector is shown in the previous table. In particular, it can be seen
that the last 2 columns represent future scenarios. In the very last columns it is shown an
aggressive plan put forward by the Ministry of Agriculture, where by in 2020 the land for ethanol
production will increase by up to 1 million hectares and the area destined for biodiesel feedstock
crops will reach 2 million hectares. That will be noted as scenario 1. The other projections (plain
2019) correspond to a scenario where it is assumed to follow the ongoing production trend. That
will be noted as scenario 2.
Following the initial scenario, i.e. under an active biofuels production scenario it is thought
that the destined territory for biofuel plantations would grow from 0.24 hectares to 3.12 in a time
span of 9 years. Such a projection would imply agricultural arrays 13 times bigger than present, to
cope with biofuels demand, in less than a decade. In other words, this change would require an
annual growth rate of approximately 33.25%. In the second scenario the growth of this area is
more discrete, starting at 0.24 hectares in 2010 and ending up with 0.95, which corresponds to
slightly less than 4 times the production of the beginning of the decade. That is an average annual
growth rate of 16.51%.
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In the 2 scenarios the projections are more favorable to biodiesel production rather than
ethanol production. In the first situation, by 2019, the planned area destined for palm plantation
is 13.25 times the one presented in 2010. This can be seen as an annual growth of nearly 33%. In
the case of ethanol production, the plantations destined for sugarcane need to develop at a similar
pace (only slightly less). In the second scenario this dissimilarity is more obvious: while palm area
develops a speed of 19.58% per annum, sugarcane would require a growth rate of 7.23%.
There is no substantial negative effect on the agricultural frontier in terms of direct food and
feed provision in either scenario. Despite this great progress for biofuel feedstock plantation
areas, the subtotal agricultural area does not seem seriously affected. The agricultural land
destined for other purposes different to bioenergy crops will decrease 0.04 million hectares in 9
years, under either situation. However, the agricultural land destined for bioenergy and
agricultural crops together will grow at an average pace of 5.28% in the pressure scenario,
whereas just at 1.45% in the “no-rush” plan.
Of course land destined for bioenergy projects must be taken at the expense of other
alternatives. According to these forecasts, the burden of cost will be on the fallow and livestock
farming land, which falls by 6.4 million hectares between 2010 and 2019 in the less active scenario,
and 9.25 in the other one. It is important to highlight that these reductions are not that significant
if it is assumed that it was caused entirely by biofuels production. Based on those numbers
presented on the table, only 11.09% and 31.13% of such reductions could be explained by
bioenergy projects implementation, for the non-active and active scenario correspondingly. It is
important to note that as in most cases, projections of expansion can be overestimated, as was
illustrated with the American, Peruvian, and European cases in chapter 2.
Despite the allegedly minor effect of these lands conversion, it must be taken into account
that cattle displacement could be costly financially and environmentally. The other option is using
fallow land, which also has some implications. If those lands are deteriorated marginal lands, then
bioenergy projects could be a very attractive choice in terms of profit, in the sense that they could
invigorate depressed rural areas. If other feedstock varieties are contemplated (even those such
as Jatropha) and the implementation needed to create the new agricultural array involves land
clearance, particularly using burning methods, it could result in appalling consequences, by
releasing all the carbon embedded underground and new carbon by the combustion effect
(Achten et al., 2007; Romijn, 2011).
Additionally, it must be advised that bioenergy crops should be added to food crops, instead
of substituting them, given that so far the feedstock used to produce biomass-based energy do
not clash with food provision, but it is taken from that destined for export. Under any circumstance
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it is extremely important to keep monitoring land use, because the best agricultural lands should
not be used for harvesting palm or sugar, for energy purposes.
There are some constrains in term of land quality in Colombia. Despite the recognition that
there is enough land available for bioenergy projects, some areas are barely usable within
government projections. For instance, in the eastern region of Colombia, there is a zone called
the “wavy reef” in Orinoquia, a Colombian department, which has an land area greater than 6.4
million hectares that is hardly productive whether in agricultural projects or in cattle farming
initiatives (Sánchez & Cochrane, 1985).
So, a real barrier to be tackled by Colombian bioenergy initiatives, under the Plan Nacional
para el desarrollo sostenible de los biocombustibles –PNBs- (National plan for sustainable Biofuels
Development) is to obtain enough land to cope with the ambitious demand. There are lands
available in the eastern region (with some limitations as referred previously) and others in the
Caribbean zone with good prospects to plant palm in particular. However, it is unwise to forecast
large agricultural arrays, because:
 current land owners are hesitant to participate in biofuels initiatives ,
 diversity in soil qualities,
 varieties of climates and heterogeneity in quality.
Despite these possible setbacks, there are documented successful experiences within these areas
with biodiesel based enterprises. There are some cases where natural conditions do not permit
to classify the used lands as suitable for cropping either.
The experience with the sugarcane programs, leaving out those implemented in the Cauca
Valley region, is quite limited in terms of documentation.
5.1.3 Production of palm oil
In Colombia the production of palm oil is relatively new. The first attempts to introduce palm
oil took place during the early 1930’s, but the plant was used for decorative purposes. It was not
until 1945 when commercial plantations were setup in Buenaventura (on the Pacific coast) and
Aracataca, close to the Caribbean coast. Central government asked the Cotton Promotion Fund
to encourage these palm arrays for economic purposes, in the first half the century, and since then
palm crops have grown significantly.
Given that palm trees were well suited to Colombian climate conditions; their expansion has
been rapid and wide throughout national territory, with a presence in at least 11 out of 32
departments (geographically equivalent to states in other countries). About 34% of the planted
area is located in the eastern region of Colombia (Casanare, Cundinamarca, Meta and Caqueta),
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31% is within the Northern region on the Atlantic coast (Atlantico, Magdalena, North Cesar), 24%
in the central region (Santander, North Santander and South Cesar) and the remaining fraction in
the south western region (Nariño) (Infante & Tobón, 2010).
The palm industry has brought noticeable economic and social impact within the mentioned
regions, and it has been one of the most dynamic agricultural sectors since the 1980’s. Nowadays,
it creates more than 16 thousand direct jobs and over 32 thousand indirect jobs
(FEDEBIOCOMBUSTIBLES, 2010b).
Crop expansion of palm trees has been remarkable during the last 3 decades. In 1980 the
planted area accounted for 31 thousand hectares, while in 2008 plantations covered around 335
thousand hectares. This would imply that the area planted has increased by practically eleven-
folded in a period of 18 years, which is an average growth rate of 8.87%. It is important to keep in
mind that these areas provide oil for both cooking and biodiesel use.
During the 1980’s, planted areas grew on average 7690 ha/year, whereas during the 1990’s
this number dropped to 4790 ha/year. However, since 2001, due to vigorous promotion on the
benefits of palm agriculture the statistics shown production reached an average of 24,518
ha/year. This represents an introduction of nearly 180 thousand additional hectares, so 54% of
the current area was planted during this period.
Two zones with the highest participation in this outstanding advance have been the ones
located in the eastern region (38%) and northern region (30.4%) of Colombia. The contribution of
the central zone has been important as well (23.6%), while the south-western region has shown
some progress but not as significant as the other regions (9%). Thus, trend suggests a
concentration of diesel bioenergy projects in the northern and eastern regions, followed by the
central region.
Despite the fact that most land for new plantations has been taken from cattle farming, it is
also true that to a minor extent, some land previously dedicated to rice crops have turned to
bioenergy production, particularly in those northern and eastern regions in Colombia. Yet, the
total area utilized for rice growth has not decrease. On the contrary, it has increased, between
2002 and 2011 it went from 408 to 430 thousand hectares (FAOSTAT, 2011).
The accelerated growth of palm plantations is a result of several factors:
 Rampant international prices for vegetable oil, in particular palm oil, which started in 2001
and maintained its level until 2008. This fact had a positive impact on the profitability of the
biodiesel industry.
 Upbeat policies, news, and expectations around the sector created an attractive environment
for investing.
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 Being part of the eligible crops within the ICR49 destinations, boosted initiatives to start new
plantations. In addition, flexible credit systems for the sector eased the access to required
lands, resources and equipment.
 The decision taken through law 818 of 2003 to create exemptions to those slow-maturing
crops covers palm oil, and with the benefits lasting 10 years from the beginning of production,
the farmer (or investor) has enough time to recover financially. However, it is important to
bear in mind that this incentive can be applied only to those plantations that have not
benefited from any other public resources.
 The improvement of safety perception in rural areas has raised interest in new investors. In
addition, several firms have allowed access to this market to third parties to act as feedstock
suppliers, contributing to an improved social and economic environment for the surrounding
population.
 The implementation of incentives to create productive alliances between small-scale,
medium-scale, and large-scale feedstock producers, and processing plant owners,
predominantly those flexible and long-run credits with publicly subsidized interest rates.
 The possibility to have new markets for palm oil, apart from the already exploited (vegetable
oil). So biodiesel and its by-products are an attractive option for agricultural developments.
Because palm oil trees are considered a variety of slow-maturing plant, planted area can be
classified into two different categories: the one that is in a developing stage, and the one that is
production already. There is an initial period of about 3 years where the palm is unproductive.
Afterwards, productivity will gradually increase until its potential is fully developed for
approximately 30 years.
Despite the fact that palm plantations have extended rapidly throughout Colombia, there is
no corresponding effect in terms of productivity, particularly during the last 15 years. If truth be
told, it was observed that between 1994 and 1999 the average yield of crude palm oil was 3.6
tons/ha. Right after 2000, productivity rates grew to 4 tons/ha, and was maintained until a period
between 2006 and 2008 where the rate dropped to 3.56 tons/ha, which is quite similar to the
level experienced during the last part of the 1990’s.
This productivity level is comparable to that achieved in other countries such as Costa Rica
and Indonesia, that produce nearly 3.7 tons/ha. But, competitiveness in terms of yield per area
in the palm sector are led by Malaysia (4.2 tons/ha) and Papua New Guinea (4 tons/ha) (Mielke,
2008). According to FEDEPALMA projections, Colombia is ready to reach 5.5 tons/ha by the year
2020 (Fedepalma, 2000).
49
Incentivo de capitalización rural – Rural funding incentives
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There is a very wide range of outputs per hectare in Colombia. The predominant factors are:
 to what extent farmers are capable of introducing appropriate technologies
 and to what extent they are willing to put into practice advanced agricultural methods on the
field.
So, there are reports of some plantations with 2.5 tons/ha of crude palm oil, while at the same
time, there are others with 6.3 tons/ha. Such divergence in the outputs has been explained by
the fact that some low-yield varieties were introduced at the beginning of the program as an
experiment. Additionally, the majority of the farmers could not use good quality seeds , due to a
low availability, taking into consideration the necessity to adapt to the particular conditions of
different productive zones (Mosquera Montoya, Bernal Hernández, & Silva Carreño, 2009).
Furthermore, those programs directed to enhance seeds genetically are under the control of
CENIPALMA, who have only recently been active, and have been facing several barriers. Among
them, is the low availability of material with the required agro-industrial features, but also
underuse of available genetically modified material already developed. These progresses in the
genetic front would help not only to widen those varieties that are commercially accessible in
Colombia, but also to gain resistance to diseases such as pudrición de cogollo (bulb decay) and
marchites letal (lethal withering) (Cenipalma, 2000; Fedepalma & MAVDT, 2011).
The only zone that has been capable of continuously improving its productivity is the one
located in the central region. By 2010, this region had achieved its highest average yield (4.6
tons/ha), and unlike other regions, it has not been affected by the decreasing trend of the recent
years found in other regions. Meanwhile, in those plantations located in Nariño the productivity
has reported the lowest average yield, near to 2.9 ton/ha, whereas in Eastern and Northern
regions registered yields have exhibit 3.3 and 3.5 tons/ha respectively (Infante & Tobón, 2010).
These reductions have been caused mostly by the diseases mentioned early, which has had
substantial impact on the south-eastern region. Another factor that contributes to such yield
diminishment has been the notorious change in climate behavior, in particular the presence of
lengthy rainy season leads to biomass decomposition.
These observations are not isolated whatsoever: the low yield phenomenon in the processing
stage has accompanied the low yields in the agricultural stage, i.e. fruit output per harvested
hectare. The average as reported between 2000 and 2005, was 19.3 tons/ha, but between 2006
and 2008 this yield dropped to 18 tons/ha.
Thus, the current state of affairs indicates that the introduction of high oil content fruit has
not had the expected effect on commercial output. As a matter of fact, the ratio of the amount of
vegetable oil per ton of fruit has remained steady for the studied period. This indicator is vital to
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analyze the performance of the industry as a whole, because it includes both the agricultural and
the processing performance.
Based on the aforementioned, it can be concluded that in the last 17 years, there have been
no substantial advances in the processing stage, in charge of oil extraction (Infante & Tobón,
2010). By incrementing efficiency in extraction plants it is possible to maintain oil yields, despite
low fruit outputs. This data represents a huge opportunity for the Colombian biodiesel industry,
given that most of the extraction plants are not concentrated in a kind of cluster, but instead they
are spread out, and they usually work under a small-scale scheme and in some cases their
production capacity has been underused.
5.1.3.1 Agricultural structure of palm oil production
According to data published by the RNP Registro Nacional Palmero (National Records for the
Palm oil industry) in 2008 it was reported that 3245 palm oil productive units existed (i.e.
agricultural land arrays for palm trees plantations, regardless of the ownership of a processing
plant). The majority of these units have a relatively small area, meaning that more than 80% of
them have less than 20 hectares of land.
One possible interpretation of such a phenomenon is that the participation of small farmers
within the palm industry is significant, however, data proved otherwise. By 2008 land distribution
among the units was extremely uneven, up to 76.7% of land concentration was in less than 10%
of the productive units, which have more than 200 hectares. As a matter of fact, those large-scale
plantations that use more than 1.000 hectares represent barely more than 1% of the units and
yet, they have slightly less than 40% of the whole area (225,474 hectares).
In general terms, it has been established that the average plot size for palm plantations in
Colombia is 70 hectares, which is quite small if it is compared with the world top producer,
Malaysia, which has an average plot size of 1800 hectares (Sumathi, Chai, & Mohamed, 2008).
Recent plantations show a trend of increasing in size for biodiesel purposes, reaching levels of
5000 hectares.
High concentration arrays are resulting as a consequence of the oil extraction industry, which
has established an optimal standard of efficiency that is reached when the surrounding
plantations covers between 7,000 and 10,000 hectares. Such technical assessment leads to two
potential strategies:
 the first one would imply building a policy framework that eases the purchase of enough land
for these large agricultural arrays,
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 the second would operate by encouraging and engaging small landowners around processing
plant to work together to create large parcels and act as a common production unit.
5.1.3.2 Contractual arrangements in palm oil production
The relationships established between oil extraction plants and feedstock agricultural
suppliers are quite informal. In general, they are characterized by the lack of formal tools and
documents that regulate and provide stability to both parties. Such situations, in principle, make
it difficult to record and analyze these verbal and goodwill arrangements.
There are three possible ways to organize the fruit supply system to oil extraction plants:
1. by acquiring crops to be processed by the plant owner under a single proprietorship of the
whole chain,
2. by creating an association of feedstock supplier-manufacturer (either way resulting in
productive units with extraction plant),
3. an arrangement where independent farmers can have access to extraction plant facilities to
process palm fruit. Under this procedure the agricultural producer owns the extracted oil,
and there is no obligation to sell it to the plant owner. However, plant owners can act as
vegetable oil intermediaries and they can eventually purchase the oil produced by the
farmers.
In 2008, only 44 out of 3245 production units were associated to extraction plants. The land
occupied by these units accounted for 85,183 hectares. The remaining units hire the plant services
to process their fruits, obtained in a surface area of 140,291 hectares.
5.1.4 Sugarcane production
The Cauca Valley has optimal conditions for growing sugarcane. It is located at an altitude of
nearly 1000 meters, is has an average temperature of 25°C, relative humidity of 76% and an annual
precipitation of 1000 mm. Cauca Valley boasts great fertility in its soil and good physical
conditions. This region is one of the 4 zones in the world where it is possible to grow sugarcane
all year round.
Currently there are 495,000 hectares covered with sugarcane crops. These plots can be
categorized in 2 different types. The first one is used for panela production and it has a dedicated
area of nearly 253,000 hectares. Panela is an unrefined crude sugar with a high content of sucrose
and fructose, which is sold in a brick shape, and is obtained from the evaporation of sugarcane
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juice. The second category planted with sugarcane (approximately 41%) is utilized for refined
sugar production (H Martinez, Espinal, & Ortiz, 2005).
These two varieties of sugarcane are different in their purpose but also in location, yield and
sugar content. In fact, the Cauca Valley region has been traditionally used for sugar production
since the 16th century (Asocaña, 2009), whereas the predominant region for panela production
has been in the central region of Colombia, in the departments of Santander and Boyacá (along
the basin of Río Suárez) (H Martinez et al., 2005).
Sugarcane for panela production is one of the main segments in Colombian agriculture, and it
is mostly developed by small-scale farmers. Because establishment of these initiatives is quite
informal, it is difficult to collect reliable statistics for the sector, however, it has been estimated
that this form of agriculture has nearly 70 thousand productive units. The way to process biomass
(obtain its juice) in this case is by using old-technology, i.e. animal powered mills in most cases,
and afterwards juices are boiled, clarified, beaten, and left until cooled. The whole processing
station from juice extraction to panela packing is called trapiche. According to an FAO report, it is
believed that by 2008 there were roughly speaking 15 thousand trapiches. Therefore, the impact
of this activity on rural jobs is very significant, based on rural statistics collected by the Ministry of
Agriculture: by 2005 the panela sector employed more than 350 thousand farmers, putting the
sector as the second largest employment generator in the countryside, right after the coffee
industry (H Martinez et al., 2005).
Sugarcane crop for panela purposes has been widespread in Colombia because it has high
adaptability to different ecosystems and environments. For example, it is able to be planted on
steep mountains, unlike other products. So, this crop is harvested all year round in nearly every
department within Colombia, however, at least 70% of is production is concentrated in Antioquia,
Cundinamarca, Nariño, Santander and Boyacá.
One of the policies of the central government has been to engage the panela production
sector into bioethanol manufacture. Several efforts have been implemented to boost this possible
alliance. Research programs and technology transfer dynamics have been put into motion to
enhance productivity and to provide farmers with managerial and entrepreneurship training. In
fact, some of the actions have been addressed to apply a bioethanol production model specifically
with panela-sugarcane, to the extent of building pilot plants based on such feedstock. The results
achieved so far have not been as expected. In Barbosa, Santander, a pilot plant was established
after an investment of US$3million and with an installed capacity of 5000 liters/day, and with the
purpose of using 200 hectares of land. Nevertheless, this experimental plant had to be closed
because vinasses (waste product) could not be treated properly and caused land and water
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pollution. It is being discussed what to do with the plant, and one of the contemplated alternatives
is to allow the Industrial University of Santander to carry out some experiments ("Plantas de
etanol...", 2010). If some of the main setbacks can be explored and overcome, the plant can be
used for demonstration and then start a dissemination process of these technologies around
Santander region. There is a similar plant under construction in Frontino, Antioquia, however, in
this case it was planned from the beginning to be managed by the University of Antioquia ("Plantas
de etanol...", 2010).
According to the Asocaña database, sugarcane production has grown steadily. Since 1980
sugarcane production has increased from 11.5 million metric tons to nearly 22.2 million.
Sugarcane growth has accelerated particularly in the period between 1986 and 2004, with a small
exception during 2001, which exhibited a production slump (ASOCAÑA, 2012).
During 2006, the level remained stable but the subsequent two years experienced a serious
downturn as a consequence of an increase in rain levels. This situation also coincides with a
conflict with the plantation workers, in mid-2008.
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Figure 16 Sugarcane production in Colombia
Sugarcane production in Colombia

450 45,00
400 40,00
350 35,00
300 30,00
250 25,00
200 20,00
150 15,00
100 10,00
50 5,00
0 0,00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
area (thousand has, left axis) production (million tonnes, right axis)
Compiled by the author. Data source FAO 2013
In 2010, due to “La Niña”, plantations were severely affected by unfavorable climatic
conditions, affecting expected yields, not only in Colombia but in the rest of South America as well
(Asocaña, 2011).
Growth of sugarcane production comes as a result of a continuous increase in the planted
area, along with more efficient land management methods. On one hand, the cultivated surface
maintained a steady increase between 1980 and 2008, undergoing a change from 133 thousand
cultivated hectares to 206 thousand.
There is of course a gap between the area that has actually been planted and the one that is
actually harvested. This difference is due to different factors, such as plagues, diseased crop,
climate alterations, among others.
Based on the trend of cultivated area, it is possible to separate the agricultural behavior of
sugarcane in 3 sections or stages:
1. During the first stage, from 1980 to 1989, there is no a substantial increase of the sown
surface, maintaining an average of 136 thousand hectares. At the beginning of this stage,
the harvested area was nearly 43 thousand hectares below the cultivated level, which
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implies that two thirds of the cultivated area was productive. At the end of the stage, this
gap closed and the difference between cultivated and harvested areas was only of 24
thousand hectares, reaching a profit on cultivated area of 83.2%.
2. Between 1989 and 2002 the second stage was developed, which registered the highest
growth rate within the three studied decades. In fact, cultivated area was enlarged by 41%
during this period. The main reason for this is that sugarcane progressively occupied more
of those terrains that were initially used for other purposes, such as soybean, sorghum
and cotton, due to the low profitability of these crops, exacerbated by the political
decision called “apertura económica” in 1991, retracting the mechanism to protect these
lower value crops which was accentuated for the political decision of the economic
opening promoted by the Constitution of 1991. Along with the reduction of possibilities
for some of these commodities, some opportunities appeared for other products; and in
this case, the sugar industry was favored by the liberalization policy, because it expended
in to new markets, different to those already established (CAN and American quota). This
stage was characterized by high fluctuation in harvested output, and it was possible to
achieve productivity close to 100% of the planted area on two occasions: in 1996 and
2000, near to 180 thousand hectares in both cases.
3. Before the end of the second section stage, there was a subtle reduction in the cultivated
area (in 1999) and the effect of this setback was felt during a part of the last stage, which
goes from 2003 onwards. This situation was evident until 2006, and afterwards it
recovered its pace only slightly. This stagnation might have been due to a shortage of
available land in the Cauca Valley. Nowadays, most of the growing trend is explained by
using marginal lands.
It is worth mentioning that the introduction of bioethanol plants in 2005 has not had a
substantial impact on the planted and harvested areas. Basically, alcohol fuel has been produced
based on the already cultivated surface and, as has been mentioned previously, the required
feedstock comes from sugarcane that would otherwise be used for export.
The productivity of this crop has fluctuated around 120 tons of sugarcane per hectare. There
have been some moments, like in 1995 and 2001, where this productivity fell, reducing the
average to 105 tons/ha. It is presumed that such low performance can be explained by poor
agricultural management. Notwithstanding this, since 2002 the yield has remained relatively
stable.
With this in mind, productivity (in terms of the yield of sugarcane per hectare) has not
exhibited substantial progresses. Crop productivity performance (in terms of the yield of sugar per
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hectare) leapt from 8 tons/ha to 12.4 tons/ha from 1980 to 1992. Since 2002 this level has kept
above 13 tons/ha, that means an increase in sugar productivity near to 60%.
Another indicator of crop performance is the amount of sugar that is obtained by every ton of
sugarcane used. This value would give an insight of the commercial yield and the industrial
efficiency of the crop. In 1980 this ratio was 9.4% and it rose to 11.9% in 2006.
An analysis of this situation leads to the conclusion that farmers have achieved a better output
of sugar per hectare, which indicates an improvement in soil productivity. This has been a direct
result of implementing better agricultural practices, which includes the introduction of varieties
with higher sucrose content and short-maturing kinds.
The addition of new techniques and technologies to the sugar processing industry from its
agricultural stage to its manufacturing comes as a result of a very solid system of technology
transfer, led by CENICAÑA, and by ingenios themselves, in order to disseminate and put into
practice those agricultural advancements that increase the amount of cane per area and shorten
the maturing cycle of the crop. Some other factors than have positively affected industry
performance as a whole, are:
 the rise in the educational level of the nearby population,
 agro-entrepreneurial training,
 innovative capacity and economic solvency of the farmers, which is predominant in the Cauca
Valley region.
5.1.4.1 Agricultural structure of the sugarcane production
In the sugarcane crop industry there are at least 2200 productive units, which are mostly
represented by medium-scale farmers, with an average size of 92 hectares per unit. It has been
calculated that 40% of them have a size between 50 and 200 hectares, and occupy 44% of the
entire area used for this purpose in the region.
Thus, close to 50% of these units have an area less than 50 hectares, and they employ 14% of
the whole surface used for sugarcane cropping. This suggests two phenomena about the sugar
industry: the first one is that land concentration still remains high, and the second one that small-
scale agricultural entrepreneurs have an important participation in the market. The latter
corroborates that there has been a continuous division of properties and large agricultural arrays
that were predominant in the times of the colonial Spanish influence. Today those parcels that
exceed 500 hectares for sugarcane cultivation represent only 12.5% of the agricultural units.
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Those lands used for sugarcane crops in the Cauca Valley region benefit from a great irrigation
infrastructure, given that 48% of the sown surface has access to superficial water sources, and
16% use underground water springs. Only a small fraction of land does not receive irrigation
(1.2%). The remaining fraction uses a combination of both shallow and underground water. In
the Cauca Valley region road infrastructure and supply utilities are appropriate to cover the
industry needs.
5.1.4.2 Contractual procedures in sugarcane production
Unlike the case of the palm oil industry, the supply system of the sugarcane provision to
processing plants, either for sugar manufacturing or alcohol fuel production, is well organized and
its structure has foundations in several agreements between farmers and processing plant
owners. These agreements have been designed and evolved during a number of years and they
take into account technical, economic, legal, commercial and cultural elements, providing a
flexible framework adaptable to the conditions described or required for each agreement mode.
It is crucial to understand land proprietorship and distribution around those grounds linked
with the productive process. Ingenios (or sugarcane processing plants) own 24% of the total
cultivated area. So, the remaining land is owned by third parties under different management
agreements. In fact, slightly less than 103 thousand hectares out of 152 thousand hectares are
directly managed by independent owners, representing 51% of the whole area for cultivation.
Ingenios handle the rest of it through diverse kinds of associations (described below).
In terms of Colombian agriculture, the sugarcane industry presents a truly peculiar
characteristic - there are just a few cases where there is no formal contract between farmers and
manufacturers (these examples account for less than 4% of the total cultivated area).
Sugarcane price is inextricably linked to sugar price; hence, the price of feedstock does not
follow supply and demand dynamics. Usually payment to farmers is through a contract where
there is a shared risk, which is a common system utilized around the world (Buchanan, 1975;
Keerthipala & Thomson, 1999; Moor & Wynne, 2001).
The type of contracts mentioned above, have been categorized in some official documents
(IDB, MME, MADR, MAVDT, & DNP, 2012; Infante & Tobón, 2010; Londoño, 2012) and are
described as follows:
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Contract of sale:
This sort of contract is applied to those farmers that undertake all these tasks related with
production: land preparation, required infrastructure provision, payment related with the
agricultural process, application of agricultural practices recommended by CENICAÑA, etc. In this
case these farmers, acting as independent suppliers, have an entirely commercial relationship
with the processing plants.
In such contracts, sugarcane payment is done under a fixed predetermined amount of 58kg
per ton of sugar. This number has been calculated based on assessments of sucrose content
(which is 11.6% in Cauca Valley conditions). Thus, 50% of sugar yield value belongs to the farmer,
and the other half is paid to the ingenio as reimbursement for its processing services.
If it is taken into account that farmers and manufacturers income hinge on the sugar market,
then sucrose content and not sugarcane weight indicates the real remuneration factor. Nowadays,
near to 48% of cultivated area operate under this “contract of sale” mode and include clauses that
make it explicit that the payment would be based on the content of sucrose rather than the
sugarcane weight. Thus, any parameter that directly affects this indicator, such as sugarcane
handling, storage, and transport, should be considered in the contractual conditions.
The duration of these sorts of contracts are directly related to the productive cycle. They are
generally negotiated to finish simultaneously with the life span of the sugarcane stock, which is
close to 8 years. In most cases some sale exclusivity clauses around the feedstock are established.
Contracts in participation accounts

Under this mode farmers give their land to processing plant owners and the latter assumes
full responsibility of the sugarcane life cycle from the planting stage until the harvest. Unlike what
happens in regular sale contracts, landowners do not take part in the production process
whatsoever. In this mode ingenios carry out all duties required for sugarcane production, likewise
they bear the burden of all associated costs. Land proprietors receive a remuneration based on
the content of sucrose, i.e. the number of kilograms of sugar that can be extracted from a ton of
feedstock. A reference parameter that is commonly used is 25kg of sugar per one ton of
sugarcane.
Just like the contract of sale, in contracts of participation accounts, sugarcane payment will
change according to each area’s production capacity and cost of cutting, handling, transporting
and storage, so the range of payments can start from 20kg up to 35.3 kilograms, after the
corresponding adjustments and discounts.
For this kind of contract there is an additional factor that defines terms of negotiation - the
required investment for land preparation. Thus, if the processing plant incurs a large financial
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outlay, there will be a proportional discount in the payment that the landowner will receive. The
lengths of these sorts of agreements are generally for a fixed period of 10 years. At the end of the
period the ongoing stocks will be property of the land owner.
Contract of land leasing

Under this type of contract landowners will receive a fixed value or lease rental per planted
hectare, based on the amount of kilos of sugar per ton to be paid by the lessee to the land owner.
The reference parameter that is normally used is 120 kilograms of sugar per rented hectare
monthly. Nevertheless, this number is used only as reference because there are several contracts
that agree to pay a different sum with a wider variation than the former 2 modes.
Contract of land administration

This sort of agreement is applied to a very specific and small number of suppliers, which in
most cases have a direct connection with the ingenios. Under this mode the processing plant
owner takes over the crop administration, so all the responsibility of the sowing, maintenance,
and harvesting falls on the ingenio. In return the ingenio receives a commission, based on a
percentage that is negotiated at the beginning of the season. The calculation of the percentage is
associated with the cost that the ingenio assumes for running the crop. Frequently this number
varies between 5% and 8% of the total production.
In all contract modes sugarcane payment is based on the amount of sugar that can be drawn
from a ton of sugarcane. For each there is a reference parameter which provides a guide for
individual negotiations, which are in fact, adjusted by various technical and economic factors that
are inherent to the sugarcane productive process. Regardless of the contractual type, sugarcane
bagasse and molasses are by-products that come from the industrial stage, therefore, they are
considered property of the processing plants.
The relationships between agricultural producers and ingenios have been founded on
competition, convenience, and mutual trust. Such pillars, along with cultural and familiar aspects,
have built a solid economic structure with a great social scope.
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5.2 Agro-industrial transformations of feedstock
5.2.2 Transformation of palm fruit into crude vegetable oil
In Colombia there are 53 palm fruit extraction plants, and most of them have a processing
capacity below 25 tons per hectare, in fact only 24% of these plants are able to exceed this limit.
This more than anything shows that the Colombian palm processing industry is far behind the
world’s top producers, such as the Malaysian and Indonesian industries, which achieve average
levels of 30 ton/ha and 40 ton/ha.
At present time, each plant is capable of processing an average of 4250 ha, which does not
correspond to an optimal size. Based on these facts, it is possible to conclude that there is a
mismatch between the processing capacity and the processed feedstock, being that the latter is
inferior to the former. It has also been reported that the average size of these plants is not big
enough to reach minimum standards of efficiency. According with the Ministry of Agriculture’s
calculations the ratio between the actual use and the installed capacity yields a usage index of
52%, which indicates that the palm processing industry is inefficient due to unnecessary and
higher processing costs (MADR, 2005).
In order to achieve greater efficiency and use all inputs, products and by-products in a proper
way, it is considered that the optimum size should be near to 30 ton/ha of palm fruit. The reason
for this is that such a size justifies the incorporation of heavy machinery for processing tasks, in
particular, the use of turbines. Through the use of turbines it is possible to transform the steam
that comes from a boiler in electricity, reducing costs, making use of different processes to create
new by-products, and possibly eventually commercializing electricity surplus to the nearby
population, or even become a power supplier to a local energy grid. However, should the plant
not achieve the minimum level of production, it cannot justify the installation of a turbine, which
is very expensive.
A plant of 30 ton/ha can operate with a medium level of efficiency if it is able to process the
fruit that comes from a plantation of 7 thousand hectares of palm and with high efficiency if it is
supplied with the fruits of plantations between 7 and 10.5 thousand hectares.
Plantations must be located around extraction plants, forming a core that simplifies and
hastens the coordination between agricultural processes and the first stage of the industrial
transformation. This fact is crucial, due to the continuous ripening of the fruit, which results in
deterioration caused by increasing acidity levels 10-12 hours after harvest.
Based on the aforementioned, plantation size, distance between palm trees, availability of
communication methods and road infrastructure that connects different plantations and plant
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facilities that ease fruit delivery after collection, are fundamental factors for industry
performance, and of course, they guarantee that extraction plants are located on zones where
there is enough fruit provision to use plants at full capacity (Fedepalma, 2006b).
It has been suggested the establishment of alliances as strategic interaction between actors
along the chain, so plant owners can come to an agreement with small landowners, with available
lands. By doing this, new farmers engage in the process and increase palm fruit volumes aiming
to achieve the needs of the processing plants. No all of the extracting plants are able to cover
plantations costs, given that investment required for a palm oil agricultural array could be
substantial (US$3600 without including the cost of land).
So far, some alliances have been established with all sorts of entrepreneurs that include large-
scale, medium-scale and small-scale farmers. They have been created with an orientation towards
different goals. For instance, some alliances moves toward efficiency and productivity, whereas
others that try to look for economic and social stability for the population located where crops are
expanding (Ministerio de Agricultura, 2007, 2011).
These alliances work on the basis of mutual convenience between the parties, being in most
cases a palm processing firm that is linked to the extraction stage, representatives of a set of small-
scale agricultural producers that act together to engage in the productive process, sharing both
risks and benefits of such endeavors (MIDAS, 2010; Ministerio de Agricultura, 2011).
Both, managing party and agricultural organization, obtain obvious benefits out of this type
of alliances:
 Better stability and security: the improved possibilities of income increase for both
parties. Agricultural producers engage with a highly recognized for-profit organization.
These firms work under clear and established rules accepted by everyone. Under this sort
of alliance access to market is basically secured and additional complementary economic
and social services are gained.
 Access to the ICR, which helps to subsidize up to 40% of the plantation planting. A farmer
that does not belong to an arrangement of this kind will face extreme difficulties gaining
access to those benefits to fund a private project.
 Those funds that are used to finance the alliances have access to the FAG (Fondo
Agropecuario de Garantías) – Agricultural and Guarantee Fund - that covers up to 80% of
the total value of the credit granted for crop sowing and maintenance purposes.
Furthermore, in some cases the managing party finances the remaining 20%.
 The agricultural party has access to technology and technical assistance in order to
enhance crop productivity. The alliances often receive this automatically, either directly
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or through offers that come from big-scale plantation owners or extraction plants that are
linked to the initiative.
 They promote and encourage small-scale farmers to take part in the crop related assets,
thus in some cases the managing party transfers land ownership to these peasants, or in
other cases they provide support and assistance in the entitlement and legalization
processes of properties in favor of the most vulnerable population. In the same way, those
alliances that have exhibited an advanced level of development encourage the
participation of small-scale farmers to become shareholders of the extraction plant, which
in some cases have been up to 49% of total ownership.
 Through initiatives of this nature, members have access to additional complementary
social and economic services that improve living standards. One of the most important is
perhaps the right to use or eventually acquire housing facilities
On the other hand, managing parties can get some timely benefits, the most important one
being the possibility to secure and to stabilize feedstock supply, and reduce the amount of time
the plant is idle. In addition, the managing party, under specific circumstances, may have access
to more government financial help. For instance, coverage given by the ICR can be increased 20%
to 40% over the investment amount, just like the small-scale farmers, using the full extent of
governmental support for palm crops.
One additional advantage of being a managing party is to reduce those costs that otherwise
they would have to assume if the participation of ownership was greater. Under these alliances
the entrepreneurial structure is lighter, but with reduced risk given that, to some extent, there is
certainty in terms of quantity and quality of the feedstock that is available for their plants. This
fact is mostly a consequence of an active engagement in crop planting, in the technical assistance
for their allies, and technical coaching and training to arrange more productive processes that are
convenient for the 2 parties.
Alliances have been demonstrated to be a tool with a tremendous potential to improve the
socio-political environment where they take place. Furthermore, they are a target for corporate
social responsibility activities, boosting stability and sustainability in the industries that decide to
put them in to motion.
Productive alliances can be a tool that does not reduce competitiveness in the productive
chain. There is some evidence that shows a reduction in costs in established agricultural units, in
both plantation settings and also in production cost per unit (Fadul, N.D.; Ministerio de
Agricultura, 2007).
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These findings strengthen the idea that small-scale farmers can take part actively and
efficiently in developing economies of scale that emerge from palm plantation initiatives,
contributing to agricultural competitiveness.
Still, these alliances have been useful in moving forward the formalization of contractual
relationships in a sector that is characterized for being highly informal; which is even more
valuable, when what is at stake is the establishment of clear guidelines and rules between large-
scale entrepreneurs and small-scale agricultural producers. It is also fundamental to move ahead
in the setting, standardization and formalization of commercial links in the long run.
Those agricultural units that have been managed under this mode, are neither completely
independent nor subject to maintenance standards, which are very common for small-scale
farmers in Malaysia and Indonesia (Basiron, 2007; FPP, 2007; Sumathi et al., 2008). On the
contrary, in the Colombian case by will of the small-scale agricultural producer, palm plantations
can receive technical supervision from the managing party, which have more trained staff and
more expertise. This aspect turns out to be one of the most important for land preparation,
fertilization, and crop maintenance tasks.
Undoubtedly, the Colombian experience in this matter has been interesting and constructive.
Alliances must be adopted and need to become into a core element in policy designs, oriented to
guarantee an equitable distribution of all the benefits obtained by the development of biofuels
initiatives, or any other agricultural product that should be supported.
In those frontiers where it is not possible to implement this sort of alliance with small-scale
agricultural producers, other alternatives should be considered, such as the Financial Social Model
(FSM) explained previously.
In recent years, alliances with small-scale agricultural producers have seen remarkable
growth, given that at least 62 thousand hectares have been managed under this method. This
number includes approximately a third of the planted area within the national territory between
2000 and 2008 (180 thousand hectares) (Ministerio de Agricultura, 2011).
As a result of the frantic palm oil production growth, palm oil production and palm kernel
cakes has increased. In particular, crude vegetable oil has shown a steep rise during the last 20
years, starting with 232 thousand tons in 1989, and reaching more than 778 thousand tons (2008),
which represents a growth rate close to 6.5% per annum.
This rapid production evolution has been able to keep pace with the increasing demand in
domestic consumption, given that the average personal intake has experienced a noticeable
increase from 9 kg in the early 1990’s to 10.3 in recent years. Additionally, the abundant supply
of vegetable oil has created a substantial volume of surplus for exports. The quantity of vegetable
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oil that is not consumed domestically has reached levels of 341 and 318 thousand tons in 2007
and 2008 respectively. In fact during the last 7 years exports represented up to 40% of total
production of the crude palm oil.
5.2.3 Transformation of crude palm oil into biodiesel
In Colombia biodiesel production started during the second half of 2008, firstly at an
experimental level, and at the end of the same year it began the blending program with fossil
diesel on a commercial scale. Although, there were some efforts to use other feedstock,
nowadays, biodiesel production in Colombia is based completely on palm oil. Some other
alternatives have been explored such as castor oil, algae, and jatropha curcas (Campuzano, 2011;
Corpoica, 2011; Patiño, 2010), but they have not been expanded to commercial scale.
At present times there are 7 plants for biodiesel production, which are located in the northern
and eastern region of the country. This will be explored in a later section..
5.2.4 Transformation of sugarcane and its apparent consumption
Sugar production in Colombia has had an important growth in the last decades, given that it
has increased from 1.2 million tons in 1980 to 2.7 million in 2004 (expressed in equivalent tons of
crude sugar). Nevertheless, from 2005 it has suffered a considerable reduction in sugar
production, reaching levels of 2 million tons in 2008. This implies a reduction of 25% on the levels
exhibited in 2004 and it represents a difference of nearly 700 thousand tons.
This setback in sugar production is directly associated with the disruption to the rain season
frequency, and a decrease in the harvest due to a labor strike by the sugarcane cutters in 2008.
Nevertheless, they were not the only factors that influenced this situation. During the third
quarter of 2005, the new bioethanol plants were put into motion, and the cane juices originally
destined for sugar production were used for biofuels.
Thus, it is possible to see that since 1987 the Colombian sugar industry has sufficiently
supplied the domestic market, so has been exporting surplus ever since. The volume that is put
on the international market has increase by a 4 factor, starting with 300 thousand tons (Infante &
Tobón, 2010) and reaching a maximum of 1.29 million tons in 2003. In 2012 the commercial year
ended with exports of 710 thousand tons (ASOCAÑA, 2012).
143
Such surplus production has been the principal boosting factor for sugar production in
Colombia and, therefore, its rapid expansion to foreign markets. Yet, as presented in the graph,
sugar exports have dwindled vastly since 2004, going to levels near to those experienced in 1992.
Figure 17 Sugar exports in Colombia
Sugar exports in Colombia

1.400.000 100,0%
90,0%
1.200.000
80,0%
1.000.000 70,0%
Metric tons
60,0%
800.000
50,0%
600.000
40,0%
400.000 30,0%
48,6%
45,0%
44,6%
44,0%
43,7%
41,5%
40,6%
40,3%
38,3%
34,6%
33,4% 20,0%
31,5%
23,5%
200.000
10,0%
0 0,0%
2010
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2011
2012
Share in production Exports
Compiled by the author. Data source: (ASOCAÑA, 2013)50
It is obvious, that there is a clear correlation between the commencement of operation of

bioethanol plants and the drop in export volumes. This is not unexpected, since this was precisely
the purpose of the original biofuel policy plan - to use surplus production for ethanol production
and use the latter for blending with gasoline. It was calculated that in pursuing this path, the
potential impact, if any, on the Colombian domestic sugar market would be minimal in terms of
imperiled supply or price explosion.
In this sense, sugar sales within the domestic market have risen 200 thousand tons between
2003 and 2008, whereas the ethanol production market has required at least 300 thousand tons
of equivalent crude sugar per year. These two facts, along with the previous explanation of the
50
Asocaña is the association of sugarcane farmers, and this institution gathers and organizes, on
monthly-basis, all the information that is reported by its members. Further details about the origin of the
data can be seen directly in the website (http://www.asocana.org/modules/documentos/5528.aspx).
144
reduction in sugar production during 2007 and 2008, clarify the exports declining behavior
throughout the studied period.
Figure 18 Sugar domestic consumption in Colombia and international price influence
Sugar domestic consumption in Colombia and

international price influence
1.800.000 30,0
1.700.000
25,0
1.600.000
20,0
1.500.000
US$cents/lb
Tons
1.400.000 15,0
27,1
22,4
21,6
1.300.000
10,0
17,8
14,6
1.200.000
12,1
10,0
9,9
5,0
8,3
8,1
7,4
1.100.000
6,8
6,4
1.000.000 0,0
2001
2006
2011
2000
2002
2003
2004
2005
2007
2008
2009
2010
2012
Int avg price Domestic consumption
Compiled by the author. Data source: (ASOCAÑA, 2013)
So, one of the interesting findings is that neither the use of juices and molasses from
sugarcane, nor the reduction in sugar production and exports since 2005, created any perverse
effect on the sugar availability for the domestic market. On the contrary, the apparent
consumption has risen steadily during the 3 years following the introduction of ethanol
production(followed by a reduction due to the fall in production), not only because the sales
trends of the processing plants have remained unchanged, but also because the imports of sugar
have contributed to keep sugar availability.
Although, in relative terms the involvement of imports have been marginal, it is noteworthy
to point out that from 2001 sugar imports have exhibited a perceptible increase, hence, nowadays
(2012) they represent slightly more than 16% of the total domestic consumption.
145
Table 7 Sugarcane trade statistics for Colombia
Total
Sales to
Production domestic
domestic Imports Exports
year (metric tons) apparent
market
consumption
metric tons
2000 2,391,324 1,348,822 12,889 1,361,711 1,045,349
2001 2,244,756 1,312,222 58,075 1,370,297 931,497
2002 2,528,756 1,361,914 86,372 1,448,286 1,127,229
2003 2,649,966 1,351,739 116,628 1,468,367 1,287,256
2004 2,741,363 1,523,427 37,853 1,561,281 1,232,782
2005 2,683,215 1,515,380 59,648 1,575,028 1,179,642
2006 2,415,145 1,459,872 126,010 1,585,881 925,565
2007 2,277,120 1,558,170 160,439 1,718,609 716,380
2008 2,036,134 1,549,845 165,384 1,715,229 478,442
2009 2,598,496 1,512,739 138,295 1,651,034 1,053,939
2010 2,077,613 1,438,973 184,311 1,623,284 694,396
2011 2,339,988 1,405,725 188,147 1,593,871 942,035
2012 2,236,605 1,318,870 251,276 1,570,146 774,779
Source: Elaborated by the author, Data source (ASOCAÑA, 2012)
Sugar imports in Colombia have registered 3 different periods of rampant expansion. The first
one, between 2002 and 2003, international prices of sugar skyrocketed, and so did exports of this
commodity. Under such acceleration of international trades, it is sound to think that as exports
grow, fuelled by the rise of prices, so to do imports, in particular in the Colombian case, from those
neighboring countries, or with those countries with whom Colombia has active commercial
agreements. Under this period nearly half of the imports came from Ecuador and Bolivia.
The second period of imports expansion in Colombia took place between 2005 and 2008. This
period coincided with the implementation of the ethanol plants, therefore it is not possible to rule
out that this was the trigger for an increased sugarcane demand within the domestic market, and
subsequently it created a reduction in sugar exports or an increase in sugar exports for direct
consumption. The most recent expansion period took place from 2009 to 2012, due to
complications in domestic production because of the “la Niña” climatic phenomenon.
Despite the fact that the structure of domestic supply within the national territory has
experienced a change with the running ethanol plants, there are two factors that must be
considered to fully understand such performance:
1. the level of dependence on the foreign market to supply the domestic market is still
significantly small
146
2. that despite the fall presented in 2004, the surplus in sugar production remained
predominant, given that exports surpass imports by far in this sector (see previous table).
5.2.5 Transformation of sugarcane into ethanol
Bioethanol production in Colombia has been developed using sugarcane as its principal
feedstock, and to a minor extent cassava. For this reason, most plants have been located in the
basin of the Cauca River in the Cauca Valley, where the sugar and alcohol industry in Colombia has
had its roots for more than a century.
So far, there is no feasibility for using a different feedstock, like maize or sugar beet, if
efficiency rates and competitiveness are taken into account.. The only commercial alternative that
has been tried is a small plant located in Puerto Gaitán (in the eastern region of Colombia in the
department of Meta). This plant processes the starch that is extracted from cassava or yucca, to
be further treated to become ethanol. The area that is used to provide the feedstock for this
initiative is about 1000 hectares.
As was mentioned before, there are some efforts to use a variety of sugarcane, that otherwise
are used for raw sugar or panela manufacturing. However, some pilot tests have not produced
successful results and some others are still in the trial stage, and under close financial and
technical evaluation. Current experiments have not reached production levels that allow them to
be fully incorporated to the domestic biofuels market.
The Suarez River Basin initiative, which is not fully working at present, represents an
alternative to cover a portion of the future ethanol demand. It has a nominal daily capacity to
produce 300 thousand liters, using 40 thousand hectares of panela sugarcane. Nevertheless,
there is one concern on the impact that this initiative might have on the security of the sugar as a
food source, given that panela production itself could be seriously reduced, and it is a resource
that provides a good energy source in the national diet, and moreover is one of the pillars of the
traditional diet for the rural population in particular.
The industry of sugar and alcohol in Colombia accounts for 13 sugarcane processing plants
(Cabaña, Carmelita, Central Castilla, Incauca, Manuelita, María Luisa, Mayagüez, Pichichí,
Providencia, Riopaila, Risaralda, San Carlos y Tumaco), and they work with more than 2200 units
that are engaged with the plants to provide the feedstock, and they create 36 thousand direct
jobs and nearly 220 thousand indirect jobs (Asocaña, 2011).
147
In Colombia, there are 6 alcohol distillery plants that are sugarcane-based, with a nominal
installed capacity of 1.07 million liters per day, but in reality only 942 thousand liters per day,
when bearing in mind that these plants work 320 out of 365 days of the year.
In June 2010 production capacity of alcohol fuel was actually 942 thousand liters/day, and
was possible to be increased to 1,315 thousand liters/day. So the potential full capacity was 1.07
million liters/day as it was presented before. Despite of this, the national government set a goal
of trying to reach a blend of E20 by the end of 2012. This would imply a production of 2.75 million
l/d, which is far beyond the initial proposal of reaching E12, which was settled in the PNBc. Based
on that, the question that emerges is - Is there enough sugarcane to cope with the current
proposed target? If it is assumed that the plantations are going to be set on Cauca Valley soil, in
order to guarantee the highest productivity, then, there would be the need to plant more than
128 thousand hectares of sugarcane , which is more than half of the planted area that is currently
in that region.
Although there is a genuine interest from private investors in the biofuel industry, and with
their support, it is possible to practically double the processing capacity of sugarcane for ethanol
production purposes in Colombia, the main obstacle to be overcome in order to reach such levels
set by the national authorities, is the surety of feedstock availability. This particular aspect is
developed in a further section.
5.3 Distribution and commercialization
Colombian law establishes that biofuels must be blended with the corresponding fossil
product by the wholesale distributor, and once such process is carried out these dealers can sell
the blended fuel to fuel service stations, retail dealers, large consumers, or even other wholesale
distributors. The blending process can be chosen by the trader as long the quality of the final
product is guaranteed.
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Figure 19 Distribution and commercialization chains
Adapted from (Infante & Tobón, 2010; S. Trindade, 2005)
As can be seen from the figure above, both biodiesel and bioethanol plants sell plain biofuel
to the wholesale trader, which must use special storage tanks to undertake the blending task,
according to the standards established by the Ministry of Mines and Energy. When biofuel, already
blended with the regular fossil fuel, is sold to the retail dealer, it must undergo quality controls,
and they should provide proper storage condition for the mix, before is offered to the final
consumer.
5.4 The consumer sector
5.4.2 Projected consumption of biodiesel
So far, crude palm oil destined for biodiesel production has been diverted from exports and
the difference was covered by national production. It is clear that a fundamental consideration
to determine the degree of substitution between crude palm oil and biodiesel for domestic
consumption is the resulting relationship between price of biofuel itself and price of exporting oil.
Likewise, it must be taken into consideration the cost of giving up participation in international
vegetable oil markets.
149
To illustrate this situation, the following table presents biodiesel demand during the period
2009-2015, based on the Ministry of agriculture data.
Table 8 Palm oil demand for biodiesel production
Palm oil demand for biodiesel production

Concept 2009 2010 2011 2012 2013 2014 2015
Diesel
110051.00 113684.00 117342.00 121079.00 125601.00 130587.00 135786.00
demand (b/d)
Blend
Percentage 5% 10% 10% 20% 20% 20% 25%
(%)*
Biodiesel
5502.55 11368.40 11734.20 24215.80 25120.20 26117.40 33946.50
demand (b/d)
Biodiesel
279.34 577.12 595.69 1229.31 1275.23 1325.85 1723.29
demand (t/y)
Crude palm
285.62 590.10 609.09 1256.97 1303.91 1355.67 1762.06
oil (t/y)
Assumed
3.60 3.70 3.70 3.80 3.80 3.80 4.10
yield (t/h)
Required
productive 79338.98 159486.06 164617.83 330780.84 343134.68 356756.15 429770.17
has
Recalculated by the author based on (Infante & Tobón, 2010; UPME, 2008)
Taking into account that by 2009 the proposed blend of B5 was fully achieved, it is estimated
that 285.62 thousand tons of crude palm oil were used for the biodiesel blend. This target was
easily achieved through diverting a substantial share of the export quota, in addition to an existing
capacity capable of coping with the created demand.
According to FEDEPALMA projections, biodiesel sales in the domestic market were expected
to increase on average 12,000 ton/year during the next 3 years after the commencement of the
program (2008), whereas palm oil production could grow 136 thousand ton/year during the same
period (Mesa-Dishington, 2007). Based on that, there would be an ongoing decline in the oil
exporting surplus during the initial years of application of the B5 implementation. Once this period
is finished the exporting level can be recovered, if one bears in mind that those palm trees that
were planted a few years ago will enter into the production stage.
This is the main reason why it was thought that there was enough feedstock availability to
move towards a mix of 10% biodiesel by 2010. In order to achieve this target, there was need for
568 thousand ton/year of crude palm oil supplied in the way that was described previously, and
along with it 1,539 thousand hectares of production. Nowadays, biodiesel plants that are already
working have reached a nominal production of 516 thousand ton/year.
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The possibility of applying a biodiesel blend over 10% represents an immense challenge under
current circumstances and it will depend on the extension of present crops in the upcoming years.
Although, the initial target was B20 by 2012, it is clearly not impossible to fulfill. In order to do so,
it would have been necessary to use an extensive portion of the domestic share of the crude palm
oil, with obvious negative consequences on the food security.
If those palm crops that are already planted are taken into account, it was calculated that by
2012 the productive area should be near to 343 thousand hectares and annual production close
to 1.34 million tons of crude palm oil, however, there is no official reports in that regard. A blend
of B20 would requires near to 1.25 million tons of oil, occupying approximately 330 hectares for
its production; therefore, if such a blend is pursued, a greater portion of palm oil production would
be destined for biofuel manufacture, and there will be only a small remaining part of 130 thousand
tons for human consumption.
5.4.3 Projected ethanol consumption
The strategy of producing ethanol based on the feedstock that once was destined for sugar
exports entails some limitations that need to be considered. On one hand, to reach the goal of a
mix of 15% ethanol with regular gasoline in 2010 and 2011 would have needed nearly 750 million
liters per year, if the projections provided by the UPME were accurate (2008) (UPME, 2008). As it
is presented in the following table, by the year 2008 alcohol fuel production only achieved a
maximum of 258 million liters, so the full target is only 34% covered.
Table 9 Ethanol production in Colombia
Ethanol production in Colombia (thousand liter)

Year 2005 2006 2007 2008 2009 2010 2011 2012
Production 28.95 268.54 274.83 258.09 326.84 291.28 336.95 370.00
Sales 23.56 258.54 279.67 249.74 338.36 292.08 351.08 NA
Remaining
stock 4.61 13.07 4.81 13.19 NA NA NA NA
Adapted from (Infante and Tobon, Fedebiocombustibles 2012)
It is estimated that the annual production, with the current productive capacity, is 352 million
liters, which is still less than the amount required to supply the whole national territory with E10,
which was supposed to be implemented in 2009. Apart from that, sugarcane in Cauca Valley yields
approximately 75 liter/year of ethanol, and in order to reach that required approximately 6.9
million tons of sugarcane, that if used for the production of crude sugar could generate 815 tons
151
for export. So, 35% of the total sugarcane production within the region is allocated to ethanol
production, therefore crude sugar exports are highly affected.
In the beginning, the possibility of implementing an E15 by 2010 was considered. Nonetheless,
under such a scenario the calculations presented above will increase to 10.1 million tons of sugar
cane, or 1.19 million tons of crude sugar. That scenario would imply using 40% of the total
production of sugarcane and it would imperil further export possibilities.
It is possible to consider that a mix of E15 is the maximum theoretical blend that can be
achieved with the current production capacity installed in the Cauca Valley. In order to do so it
would be necessary to forgo the possibility of exporting the crude sugar, however, it is important
to stress that domestic consumption would not be affected.
The following table shows an estimation of the alcohol fuel demand for the period 2009-2015.
The projections were based on information supplied by the Ministry of Agriculture in regard to
the calendar established for different blends.
Table 10 Sugarcane demand for bioethanol production
Sugarcane demand for bioethanol production

Concept 2009 2010 2011 2012 2013 2014 2015
Gasoline
91353.00 89823.00 88966.00 88732.00 88716.00 88954.00 89893.00
demand (bbl/d)
Blend
10% 15% 15% 20% 20% 20% 25%
percentage
Bioethanol
9135.30 13473.45 13344.90 17746.40 17743.20 17790.80 22473.25
demand (bbl/d)
Bioethanol
demand (million 530.12 781.87 774.41 1029.83 1029.64 1032.41 1304.13
l/d)
Sugarcane
7066.56 10422.32 10322.88 13727.63 13725.16 13761.98 17384.06
(thousand t/y)
Planted area
58888.03 86852.64 86023.98 114396.96 114376.33 114683.17 144867.21
required (ha)
Recalculated by the author based on (Infante & Tobón, 2010; UPME, 2008)
152
Taking into account that the adoption of a mix with 20% of ethanol was forecasted to be
applied in 2012, some constraints emerge under this scenario - in order to fulfill this target close
to 13.7 million tons of sugarcane is required, which is 3.3 million tons more than the numbers
registered in the previous 2 years. Based on this, an even larger area of sugarcane is needed, with
only two ways to achieve this:
1. by engaging those zones where panela sugarcane is produced (which is the only area available
for augmenting ethanol production in the short run),
2. by sowing sugarcane in other regions within Colombia.
Each has their own setbacks. In the first case, as was mentioned before, there is a
considerable difference between the productivity of these two varieties of sugarcane. Panela
sugarcane offer much reduced output if it is compared with traditional sugarcane.(Panela
sugarcane at 37ton/hectare vs. sugarcane at 100 ton/hectare). Despite the less efficient
performance of the panela sugarcane, its adaptability conditions make this variety the most
suitable one for the harsh characteristics of the Suarez River basin. Traditional sugarcane could be
planted in that area but it is uncertain what yield in terms of tons of sugarcane per hectare per
annum, or sucrose content could be obtained.
In the second case, there are two regions, far from the Cauca Valley region, where the
cultivation of sugarcane takes place; however, in these two regions efficiency is substantially
reduced. According to data from the Ministry of Agriculture, in the department of Cesar the
productivity in terms of sugar per ton of sugarcane barely achieves 68% of the one presented in
the department of Cauca Valley; whereas in the department of North Santander the same
indicator reaches 83%. This reduction in efficiency is due to less content of sucrose within the
canes and a reduced yield of sugarcane per hectare (between 80 and 90 ton/hectare).
Furthermore, as these regions are relatively far from the consumption core, it will require
some important investment in road infrastructure and basic services, to boost proper productive
scales. These sugar initiatives will engage new labor in the process, while also utilizing staff that
have already been trained in the Cauca Valley region and, by doing so, easing the learning curve
for energy plantations and processing plants.
Although there are some isolated initiatives on paper to start an expansion of alcohol energy
crops in non-traditional zones, there is no particular public policy that offers tools that contribute
to creating proper short term stimuli to increase the plantation areas and bring complementary
investment. Such policies must coordinate the roles between national and local authorities to
implement those tools.
153
A complementary action to this policy, are mechanisms that promote the identification,
formulation, structuration and evaluation of investment projects; providing funds for foresight
studies, which consider the financial, environmental and social impacts of these initiatives.
To move forward to E15 blends and above, securing sugarcane provision turns into the most
imperative condition. Thus, it is fundamental to count on an articulated program that promotes
the enlargement of productive zones, as well as the upgrade of the current ethanol processing
capacity. There have been several endeavors to tackle the Colombian bioethanol needs, in
addition to those already established in the Cauca Valley region; however, they have not been
able to overcome the pre-feasibility stage. Some other enlargement projects in the Cauca Valley
have also been delayed.
Another critical factor in the promotion of investments around ethanol industry is the stability
and transparency in determining regulation policies, particularly those related to the sale price.
5.4.4 Current biofuel consumption
Since 2010 (April 1st), through issue of resolutions 182368 (29/12/2009) and 180523
(29/03/2010), the consumption of biofuel in Colombia has been managed as follows:
 Atlantic Coast, Huila, Tolima Santander and Putumayo will have a blend of biodiesel of B8;
 In the western region (Cauca Valley, Antioquia, Choco, Cauca, Nariño, Caquetá, Coffee region
and North of Santander) the blend is B7,
 The rest of the country will have B5.
In the case of gasoline, just as the biodiesel scenario, from April 1st, the recommended level
of mix from the government is E8 for Colombia (Fedebiocombustibles, 2010a).
Based on the previous information in the next incoming chapters will be developed LCA and
GIS excercises in order to test the environmental sustainablility of biofuels and to sketch to what
extent can be expanded current crops under sustainable (social, economic and environmental)
conditions.
154
6 LIFE CYCLE ANALYSIS - ENVIRONMENTAL STUDY
6.1 Goal
The main goal of a Life cycle analysis –LCA- (in this particular case) is to study the
environmental impacts of current Colombian Biofuels: sugarcane-based ethanol (EtOH),
and palm oil-based biodiesel. This involves studying their complete life cycle, and their
comparison with reference fossil fuels used in Colombia (regular gasoline and diesel fuel).
Furthermore, LCA seeks to identify optimization potential for biofuel production in a more
friendly way to the environment. Similar approaches have been considered in the
literature and they have provided fruitful results for policy design (Khatiwada, Seabra,
Silveira, & Walter, 2012). Finally, this LCA study proffers to gather some data to
implement the Sustainability Quick Check for Biofuels tool (SQCB).
6.2 Methodology of LCA
With the purpose of evaluating the environmental performance of different biofuels,

LCA was implemented based on the established regulations ISO 14040 and 14044 (ISO,
2006). LCA Methodology is a holistic approach to assess environmental impact related to
the life cycle of the goods or service as a whole (C.A. Ramírez Triana, 2011). System
boundaries for this study are defined by the biofuels production chains, extending from
the very first agricultural stage, through to the final use of these biomass-based fuels
within a regular vehicle. In addition, this study is implemented following the guidelines
set by the Global Bioenergy Partnership (GBEP, 2009).
Figure 20 Four key stages in a LCA, according ISO 14040
Concept of LCA
Goal
definition and
scope
Direct applications:
- Product
development and
Inventory improvement
analysis Interpretation - Strategic planning
- Policy making
- Marketing
- Others
Impact
assessment
155
This LCA study requires a definition of the goal and a clear determination of scope.
Once this has been established it is understood that the presented results are valid only
for this particular goal and defined scope.
6.2.2 Scope
This study assessed the average environmental impact of biofuels in Colombia.

Therefore, those results presented here do not reflect individual performance of the
ongoing plantations, facilities or processing plants, in this way respecting any confidential
information.
With the purpose of reflecting Colombian local context, primary data in the most
representative locations was gathered (as presented in Figure 21 below). In the case of
sugarcane the sample information presented here makes reference of 7 plantations areas
(which is 24% of all the crops used for ethanol production), whereas in palm oil where
selected 3, 4, and 3 plantations in the East, North and Central zones correspondingly
(which is 26% of all the crops used for biodiesel production).
This information was gathered by Cenicaña and Cenipalma research teams and it
applies for 2010, therefore the effect of “La niña” (a that time) was taken into
consideration. IDEAM showed that “La Niña” had greatest impacts on the Cauca and
Magdalena rivers, but it did not break down effect in every agricultural sector (IDEAM &
MAVDT, 2011). This phenomenon had a repetition in 2011, with decreasing effects in a
lesser extent in production indicators and increasing impact on regarding harvesting tasks
(Cenicaña, 2012). Statistics gathered by Asocaña indicates that, from 2004 processed
sugarcane has exhibited a decreasing trend, reaching a floor in 2008, and then fluctuated
between 19.2 (in 2008) and 23.5 (in 2009) thousand tons, later on the level has tried to
stabilize around 21.5 thousand tons (2013). Sugar production has followed the same trend
as sugarcane, unlike ethanol production, which has been growing without interruptions
since 2010 (291 million l/y) up to 2013 (387 million l/y) (ASOCAÑA, 2014). The sugarcane
industry has been slowly recovering from this climatic effect.
156
Figure 21 Studied areas for sugarcane and palm trees 2010
Studied areas for sugarcane (green) and palm (blue) on the left side. Studied processing
plants for manufacturing of ethanol (orange) and biodiesel (purple), on the right side.
6.2.2.1 Functional unit
Neat biofuels (pure bioethanol E100, and pure biodiesel B100), and different biofuel
blends (90% regular gasoline and 10% ethanol E10, and 90% regular diesel fuel and 10%
biodiesel, B10) are compared with fossil fuels (gasoline and diesel, for specifications see
table 88) in different categories:
Energy unit at the delivery point (MJ)
Consumption per driven kilometer in an average vehicle in Colombia (Renault Logan)
and in the Unites States of America (in a standard passenger vehicle).
The main target of the study is to compare different fuels instead of comparing
different vehicles. Such comparison is only possible if vehicles properties are identical in
terms of aerodynamics, weight and energy consumption. The best option is to choose a
vehicle for which it is possible to obtain manufacture and performance information with
157
both diesel and gasoline engines under different blend levels of biofuel. In Colombia, the
Renault Logan is widely used and it can be driven with different motor units.
6.2.2.2 Limits of the system
The figure below presents a general vision of the processes for comparison. In this
study, limits or boundaries of this system are defined by the whole biofuel production
chain, from agricultural feedstock production to final use of biofuels in a car, including
intermediate steps. In addition, it includes the edification process, maintenance and
recycling / final disposal of infrastructure, including buildings and roads.
Figure 22 General overview of compared systems: Bioenergy and fossil energy
158
Scope in time
In this study the reference year regarding land use change (LUC) is 2000 while the
baseyear changes in technology of processes was 2009. The year 2000 was chosen due
to the availability of land use maps in Colombia (used in the Geographic Information
System). Furthermore, the year 2000 can act as a good reference year given that it avoids
deforestation processes or substantial changes (replacement) within the vegetable cover
in natural conservation areas, due to the setting of new projects. In 2000, no biofuel
processing plant had been authorized, and so, along with the availability of data the
selection of such year is justified.
With the purpose of proving optimization potential, considered within this study are
such technologies that might be implemented in the near future. This study considered
the LCA implemented by ECOPETROL in regards to fossil fuels production and use, which
was designed for the refining scheme of the year 2008 in the refining plant in
Barrancabermeja.
Therefore in this doctoral thesis is presented how the current trends of production of
biofuels in Colombia, can create impacts (cradle-to-grave) along the manufacture and
distribution chains, having into the account forefront technologies (within the national
context). In contrast to some other studies, like
Geographic Scope
In this study the scope is national as was mentioned in the main goal of this section,
the set of data is representative for Colombian conditions. Notwithstanding, it is
important to bear in mind that these results reflect a national average and cannot be
associated with individual crops arrays or processing plants.
6.2.2.3 Allocation method
In the biofuel value chain the production of several by-products is substantial (like
palm kernel cake, compost, and electricity, among others). Therefore, as the
environmental loads (e.g. Biochemical Oxygen Demand - BOD, Kilowatts per hour - Kwh,
CO2, Particulate matter - PM, waste, etc.) are not registered specifically for each product
and by-product (i.e. wastes from cutting tasks, bagasse, vinasses, sugar, etc.) it is
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necessary to distribute these loads between these product and by-products in each stage
of the value chain, which is known as ‘allocation’. Thus, due to the fact that products and
by-products of the biofuel value chain possess different functions (for instance, some by-
products are used for energy purposes and some others for nutrients recycling), the
economic allocation method was considered the more suitable one. However, an energy
allocation was carried out to analyze the sensibility of the allocation method.
6.2.3 Information for the inventory
In the analysis of the Life Cycle Inventory (LCI) are quantified materials and energy
flows for the systems processes. Through the evaluation of all inputs and outputs the
interchange within the systems can be evaluated and compared with the environment
and therefore their impacts.
Within this study, the consumption of all raw materials, inputs, energy, emissions and
residual wastes are considered.. In addition, transportation distances, infrastructure and
land requirements are also included.
6.2.3.1 Types and data sources
In general, the inventory of the employed data can be broken down in primary and
secondary data. Primary data is related specifically with the production system, and they
are real and verified, collected directly in the field, through interviews with experts and/or
use of relevant publications. The figure below provides a general vision on the sources of
specific data.
Secondary data is not directly related with the production system, so they are brought
from generic data bases from the LCA. Some examples of this data are fertilizers
production or electricity generation. In this particular case the secondary data are
obtained from the data base LCA of Ecoinvent v 2.2 (Hischier et al., 2010). Ecoinvent is
the most complete and transparent international data base regarding LCI information,
and all pieces of information from this data base are established as having high quality
standards.
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Furthermore, this study adapted and incorporated the SQCB tool, which employs its
own values by default (Faist Emmenegger, Reinhard, & Zah, 2009). With the use of this
tool it is also possible to calculate potential impacts following the guidelines of the
European Renewable Energy Directive, RED (EC, 2008)
Figure 23 Inventory data sources for specific processes

Specific data
1. Cultivation 2. Processing 3. Transportation to 4. Use/transportation
pumping station
Information Field Field Transportation Interviews with
sources questionnaires questionnaires distances: GIS experts (Renault)
Interviews with Interviews with Transportation Literature
experts: experts: vehicles: Interviews with
Cenipalma/Cenicaña Cenipalma/Cenicaña experts
Emission models Literature Literature
Literature
Biomass Biofuel in
on field Biofuel service
in plant 1 km on road driven
station
Generic data / standard values

LCA: Ecoinvent database (for example: fertilizers production, infrastructure, etc.)
Methodology to establish all the inventory data consisted in collecting information in

the field from different sources and collecting different perspectives. Data obtained from
different sources were consolidated by an expert and later validated. In addition this data
were verified by experts from some of the involved stakeholders (in particular CENICAÑA
and CENIPALMA)51.
In the upcoming section is going to explain briefly, and in a general way, the nature of
these different sources:
51
Thus, it is noted that such primary data comes from external institutions and are not the result of this
particular research. There is a positive effect from this circumstance which is the adaptation of a well-
known methodology with regional data, therefore results and conclusions may be more accurate. On the
other hand there may be a risk of lack of rigour in the building of the database whose construction is not
given in complete detail.
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 Field data: some field data was obtained through interviews with selected farmers
and engineers from processing plants, using a selection of representative farms and
manufacturing plants. This data was prepared by the consortium CUE.
 Selection of farms: Made in each region a selection of farms based on their
representation. Considered were farms that provide feedstock for biofuels
production exclusively. Methodology and selection criteria for both sugarcane and
palm oils crops will be described further down.
 Sample size: Sampling included approximately 20% of cultivated area (for both
sugarcane and palm oil trees crops) and 80% of biofuel processing plants at national
level, and it considered the following activities:
 Literature review: secondary data were obtained from several sources
 Interview with experts: experts were consulted when data in literature was not
available or the nature of data required doing so.
 Consolidation by Experts: Inventory data review was managed by the experts
from the consortium, with the purpose of guaranteeing integrity and consistency
in the information.
6.2.3.2 Emission models (on field)
Recent studies on LCA (UNEP. Biofuels Working Group & Management, 2009) unveil
that biofuel impact is frequently determined by diverse emissions in the cultivation stage,
mainly related with the use of fertilizers among other agro-chemical boosters.
Air emissions, such as N2O or NOx were calculated based on the formulas proposed by
the IPCC (De Klein et al., 2006; IPCC, 2006).
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44 14 14
𝑁𝑂2 = ∗ (0.01𝑁𝑡𝑜𝑡 + 𝑁𝑐𝑟 ) + 0.01 ∗ ∗ 𝑁𝐻3 + 0.0075 ∗ ∗ 𝑁𝑂3−
28 17 62
𝑁𝑂2 = Nitrogen emission (kg NO2/ha)
𝑁𝑡𝑜𝑡 = Total Nitrogen in mineral and organic fertilizers
𝑁𝑐𝑟 = Content of Nitrogen in residuals
𝑁𝐻3 = Losses of Nitrogen in form of ammonia
𝑁𝑂3− = Losses of nitrogen in form of Nitrate
𝑁𝑂𝑥 = 0.21*𝑁𝑂2
For sugarcane and palm oil, agricultural wastes were only considered as emissions of
N2O and NOx, thus some other types of emissions are left out following recommendations
of Ecoinvent.
Emissions of NH3 of those mineral fertilizers applied to crop lands are calculated with
emissions factors that are previously determined for each group of fertilizers. Instead of
suggested emission factors presented in the model (Agrammon, 2009) (i.e. 15% for urea
and 2% for all the other mineral fertilizers) it applied a set of emission factors that include
a larger number of fertilizers groups (Asman, 1992). Organic fertilizers are calculated by
using values proposed by the Agrammon group, while the correction factors are left out.
Table 11 Emissions of NH3 - Mineral fertilizers
Emissions of NH3 - Mineral fertilizers (% of N emitted in form of NH3)

Type of fertilizer Emission factor per NH3 - N (%)
ammonium nitrate, calcium ammonium
nitrate 2
Sulphate of Ammonia 8
Urea 15
Multi-nutrient fertilizers (NPK-, NP-, NK-
fertilizers) 4
Urea Ammonium Nitrate 8.5
Liquid ammonia 3
Source (Agrammon, 2009)
Water and land pollution by cause of nitrates and phosphorous is calculated following
the method of (Faist Emmenegger et al., 2009), taking into account parameters by region,
such as climate and land type. Land pollution by metals was modeled as the difference
between heavy metals (concentration levels in pesticides and fertilizers) and absorption
levels within the crops. As referenced by (Jungbluth et al., 2007).
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6.2.3.3 Land Use Change (LUC)
Carbon emissions due to Land Use Change (LUC), are calculated based on the
methodology proposed in level 1 of the IPCC document (IPCC, 2006). The change in carbon
stock is calculated as the difference between:
 the content of carbon in the superficial biomass above ground (AGB) level,
 biomass below ground level (BGB),
 decomposed organic matter (DOM)
 and soil organic carbon (SOC), before and after sugarcane and palm oil plantations.
Changes in stocks are evaluated in a period of 20 years (which is the standard in the
IPCC/EU). The reference year is 2000, and therefore it did not consider the LUC caused
by plantations established before 2000.
6.2.3.4 Analysis of the indirect land use change (iLUC)
The debate around “food vs fuel” was the trigger that led to the concept of Indirect
Land Use Change (iLUC), and despite the fact that neither LCA nor carbon footprint (CF)
studies require its inclusion it is relevant to present a complete picture in terms of the
environmental balance of bioenergy products (Finkbeiner, 2014). Such effect is produced
when an additional crop emerges, and such is established in a land that was previously
used for some other crops, and not in land that was not cultivated (when a direct
displacement of some agricultural activity ends up somewhere else and when diversion
of crops to other uses adds pressure on land demand) (Wicke, Verweij, van Meijl, van
Vuuren, & Faaij, 2012). Thus, unlike direct LUC the iLUC effects (ecological, environmental,
social or economic) cannot be linked to the production unit (van Dam, Junginger, & Faaij,
2010). In this case, the direct effect on the carbon balance can turn positive (quite often),
when it passes from extensive land activity, such as grazing, to a tree crop (such as
happens in the case of palm oil). Nonetheless, the former activity is moved somewhere
else, to other zones, creating a series of subsequent displacements. Displacement can
take place locally, when adjacent farmers begin to cultivate the displaced product, with
the purpose of satisfying the demand within the local market. Displacement can also take
place on a larger scale, if the displaced product satisfies not only a domestic demand but
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also one at global scale. Finally, the additional demand for the agricultural area is satisfied
by the intensification of production, or the expansion can take place in non-cultivated
areas.
The extent of these effects, along with land tenure and other social impacts, depends
highly on governance strategies. For instance, they can be reduced by establishing new
plantations in degraded lands and by directing some research efforts to increase yield
productivity and land management schemes (Wicke, Sikkema, Dornburg, & Faaij, 2011).
Figure 24 Illustration of the indirect land use change (iLUC)
Source: CUE (2012)

For this project it was assumed that displaced products are produced somewhere else
in another region in Colombia. For instance, if palm crops are being extended to grazing
land, the corresponding amount of livestock that used to feed in this zone are moved to
a marginal zone occupying the same area, if it is assumed expansion is 100%. If, on the
contrary it assumed 100% of intensification, the displaced livestock will be kept in the rest
of the terrain, without moving to any other natural areas, but, of course, density per area
will be increased. The actual scenario will be somewhere between these two possibilities.
For this study it was assumed the extreme case of 100% expansion as the worst case
165
scenario. Nonetheless, it must be discussed in detail, to what extent the expansion effect
can be overlapped by intensification practices. This study presents these two extreme
cases, the effect of iLUC, and indirect expansion in natural areas, with the purpose of
reflecting the magnitude of impact.
Biofuel crop cultivation takes place in zones of wet tropical forest and tropical jungles.
In the northeast there are possible expansions of livestock farming initiatives to tropical
bushes. As a consequence, indirect effects of assuming 100% expansion in these three
eco-zones were calculated.
On the other hand, the production of additional grass due to an increase in biofuel
feedstock crop increase and their indirect effects were not taken into consideration.
There are indicated primary production areas (striped area) and main potential areas
for expansion (dotted areas). Vegetation zones are defined by FAO for the guidelines of
IPCC (IPCC, 2006) and the expansion potential areas are based on interviews with experts.
Contrary to these, there could be indirect effects of land use by changing the use of a
resource. As an illustration, the use of sugarcane for producing ethanol is affecting sugar
exports. Mechanisms and consequences of a potential decrease in exports are highly
uncertain, and the potential implication could be the expansion of sugarcane somewhere
else, leading to iLUC effects. In the same way this could happen for the palm oil case. It is
really important to highlight that the iLUC effect was measured in order to set a reference
case, however, there are some scholars, such as Mathews and Tan, that ask for caution in
the conclusions in this regard because badly defined assumptions can mislead policy
decisions regarding biofuel promotion (Mathews & Tan, 2009b).
6.2.4 Assessment of the environmental impact
The stage of Life Cycle Impact Assessment (LCIA) is the third evaluation stage of the
LCA. The purpose of the LCIA is to provide additional information to measure results for
the LCI for the production system, with the aim of gaining a better understanding of its
environmental meaning (ISO, 2006).
In order to establish the impact of Colombian biofuels into the environment, this study
selected and quantified those possible impacts that are in the category of Global Warming
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Potential (GWP) and Cumulative Energy Demand (CED). (This step is called indicator
selection)
Once these indicators are selected, results of LCI are allocated to the mentioned
categories of impact in regards to environmental contribution capacity of the substances
(Classification step).
In the next stage, the impact of each emission is modeled quantitatively according to
the characterization mechanism. Impact was expressed as a mark of impact in a common
unit for all the components of a particular category of impact through the application of
characterization factors (for example: kg CO2 equivalent for GHG’s that contribute to
climate change). A characterization factor is a specific factor of a particular substance
calculated with a characterization model to express the impact of flows of an element
regarding the common unit of the category indicator.
The last report of Assessing Biofuels of the UNEP was taken into consideration, in
which it is stressed the need of implementing bigger efforts to include not only the effects
on the GHG’s, but also some other impacts such as eutrophication and acidification, to be
as complete as possible. Assessments of different environmental impacts include several
middle point indicators (acidification, eutrophication, and eco-toxicity) and some totally
agglomerated impacts (end point indicators). A selection of additional impact indicators
provide complementary perspectives in regards to potential benefits and challenges to be
faced by biofuel industry.
6.2.5 Interpretation
Interpretation of the environmental impacts of the LCA is the final stage of this
process, in which the results of a LCI or LCIA, or both, are summarized and commented
for final conclusions, recommendations and decision-making guidance under the
framework drawn by the goal and scope of this study. These steps also include a sensitivity
analysis on:
a) production
b) technology level
c) allocation methods and
d) indirect Land Use Change (iLUC).
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6.2.6 Limitations of the study
The assessment of environmental impacts in the life cycle in general requires a large
set of data and assumptions for the model. Through the recompilation of real field values
for steps of the life cycle –such as cultivation and processing- and through the state-of-
the-art emission models, an effort to maximize data accuracy was made.
The LCA is static and it reflects impacts of cultivation and processing of sugarcane and
palm oil in 2009. With the optimized scenario were included improvement possibilities in
the study. Nevertheless, results are not valid for any other sort of processing technology
for biofuel production, nor for future feedstocks crops.
Furthermore, the goal of this study is to represent an average national impact of
biofuel production, and therefore results do not represent individual cases (i.e. feedstock
production from organic crops is not included and presumably would have different
impacts).
Even though this study is quite wide, some environmental factors were left out. For
instance, the impact on fresh water caused by biofuel feedstock cultivation is not
considered within the LCA study, but it is approached in the following chapter (see
Expansion potential).
Environmental aspects such as eutrophication, ecotoxicity and some other issues have
been covered in a study implemented by a research deparment of the UPB (Universidad
Pontificia Bolivariana) and are presented in appendix 4
Albeit the LCA methodology is suitable to assess environmental sustainability, it is not
the best to evaluate a social context in which these bioenergy initiatives are implemented.
It is also not suitable to determine unchained socio-economic effects caused. With the
purpose of obtaining a complete vision on sustainability, results on LCA must be
interpreted in conjunction with some other tools of assessment.
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6.3 Inventory analysis
Within the following section are presented the analysis of LCI, which combines
input/output data in relation with the system under study (i.e. sugarcane-based ethanol
and palm oil-base biodiesel).
6.3.1 Sugarcane crop
6.3.1.1 Introduction
Sugarcane (Saccharum officinarum) is a perennial grass of tropical height and it comes

from the south of Asia and Southeast Asia. Sugarcane has a carbon fixation path C4, with
the same as the rest of grasses, and it is able to turn up to 1% of incident solar energy into
biomass (James, 2007). There are some branched stems normally between 2m and 4m
high (or even higher) and approximately 5cm diameter. Sugarcane is cultivated regularly
in tropical and subtropical lands with commercial purposes, with high preference for solar
irradiation and evenly distributed rainwater (or irrigation water) during the growth
process. Nevertheless, the stage previous to harvest (when cane is ripening) weather
must be relatively dry. Hours of sunlight must be abundant during the whole agricultural
process (James, 2007).
Figure 25 Geographic location of the sugarcane plantation area
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In 1564 sugarcane was brought to Cali, Colombia by Sebastian de Belacazar and later
on was spread from there to all the basin of the Cauca River (CENICAÑA, 2011). The
geographic valley of the Cauca River is very suitable for sugarcane production due to high
solar exposure all year round and favorable rain conditions. Sugarcane expansion took
place in a period that was known as “la violencia” between 1946 and 1958, leading to the
consolidation of its control over the Colombian sugar market (Mondragón, 2007). Today,
cultivation of sugarcane occupies near to 216,768 hectares, of which 24% are owned by
the ingenios (sugarcane processing plants) and 76% to individual sugarcane farmers
(Asocaña, 2010).
6.3.1.2 Selection of the study location
The main goal of this part of the study is to establish representative results for LCA,
which reflect average sugarcane production in Colombia and in addition they reveal
variations of results depending on different cultivation methods. With the purpose of
establishing representative inventories, selection of locations of study in the geographic
valley of Cauca River was based on the following criteria:
1. Sampled crops deliver sugarcane to at least one of the five processing plants that
produced ethanol in 2009.
2. The crop area is representative in term of agro-ecologic features (soil type and
humidity)
3. The crop area is representative regarding average size.
Criterion 1: Plantations suppliers of ethanol plants only

Within the total plantation area for sugarcane (216,768 hectare s) the study only
considered those crops that supply sugarcane for sugar ingenios with an attached ethanol
processing plant (134,006 hectare s), while some other sugarcane crops do not create an
environmental impact in terms of the sugarcane-based ethanol production. In the
following table are presented the areas of these 5 ethanol producing companies in the
Cauca Valley.
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Table 12 Ethanol producing companies in Colombia
Ethanol producing companies

Process E001* E002* E003* E004 E005 Total
Ethanol production
(thou l/d) 300 250 250 150 100 1050
Total cultivated area (ha) 38883 30723 27735 22510 14155 134006
Source: (Asocaña, 2010)
Sugarcane from these 134,006 hectare s is delivered to the processing plants,

reflecting 62% of the total area dedicated to sugarcane cultivation. Approximately 37,000
hectare s (28%) out of 134,006are dedicated to ethanol production. In the selected
sample for this study were visited 3 of the main firms (noted with asterisk in the previous
table). Selected firms represent the 45% of the total cultivated area and 72% of the area
that supply ingenios with attached ethanol processing plant.
Criterion 2: Selection of representative agro-ecologic zones (soil type and humidity)

The study selected the most representative agro-ecologic zones based on soil type and
humidity conditions. In general there are 238 different types of soil and 6 kinds of
humidity. Nonetheless, / agro-ecologic zones represent a 29% of the 134,006 hectare s.
Table 13 Selection of agro-ecological zones
Selection criteria of the agro-ecological zones (assessed in ha)

Type of soil Humidity E001 E002 E003 Total
10 H3 1002 778 613 2393
10 H5 2162 - 20 2182
11 H0 804 3048 5586 9438
11 H3 6023 - - 6023
18 H0 52 725 689 1466
5 H5 859 - - 859
6 H1 1843 9821 5308 16972
- Total 12745 14372 12216 39333
Source: Based on Cenicaña website
Criterion 3: Selection of the largest cultivation areas

In order to select those crops that constitute part of this study, size was used as
criterion of classification. Those farms with the largest extension of land in each agro-
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ecological zone were selected. At the end, 9 farms were selected, and 7 of them
successfully interview. The information collection tool covers a total area of 32,215
hectares, representing 24% of the total area.
Table 14 Identification of specific location (for ethanol production)
Identification of specific location (ha)

Type of soil Humidity E001 Number E002 Number E003 Number Total
10 H3 778 C001 778
10 H5 2162 C007 2162
48 C003
11 H0 3048 C001 10 C005 7506
4400 C004
11 H3 6000 C006 6000
18 H0 353 C001 353
5 H5 838 C007 838
274 C002 73 C003
6 H1 10 C005 14578
9821 C001
4400 C004
Total 9000 14274 8941 32215
Source: CUE based on Cenicaña
The table below gives a summary of exclusion criteria (formerly described) and their
corresponding representation is expressed as a percentage.
Table 15 General information on the studied location (for ethanol production)
General information on the studied location

% of total
Criteria Area (ha) % of EtOH area
area
Total area (excluding infrastructure) 216768 100% -
Criterion 1: 5 ethanol firms (total area) 134006 62% 100%
Ethanol firms: area for EtOH 37000 17% 28%
Criterion 2: Soils and representative humidity 39333 18% 29%
Criterion 3: Representative cultivation area 32215 15% 24%
Source: CUE based on Cenicaña
Data assessment
All the data drawn from these 7 questionnaires were modeled independently and
therefore analyzed the specific impact of each location. In addition, this data was
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aggregated with the purpose of building set of averages, representative for all the
geographic valley of Cauca River region. Aggregation of information of individual locations
to form an average, was undertaken by employing a weight factor based on the plantation
area within the sample. This method allows expressing the whole range of parameters at
inventory level (i.e. N-fertilizer: 50-100 kg/ha/year, or transportation distance between 5
to 15 km) and of environmental impact (this is CO2 emissions: 1-2 kg/kg of sugarcane).
Table 16 Area and weighting factor within the selected studied locations
Area and weighting factor within the selected studied locations

Questionnaire
Parameter
C001 C002 C003 C004 C005 C006 C007
10H3 10H3 10H3 10H3 10H3 10H3 10H3
11H0 11H0 11H0 11H0 11H0 11H0 11H0
Agro-ecologic zone
6H1 6H1 6H1 6H1 6H1 6H1 6H1
18H0 18H2 18H3 18H4 18H5 18H7 18H8
Yield (ton/ha/y) 114,9 121,9 142 118,6 142 110,7 90,7
Area (ha) 14000 274 120,9 8800 20,3 6023 3000
Weighting factor (%) 43,4% 0,8% 0,4% 27,3% 0,1% 18,7% 9,3%
Source: Cenicaña
6.3.1.3 Agriculture production system
The most common system for sugarcane cultivation is the row array, either in flat
lands or slight hills. Before planting, land is prepared by removing roots and rocks, and if
necessary, the required slope is created, and soil conditions improved. Once terrain is
prepared cane sprouts introduced into the ground (vegetative reproduction), and the crop
cycle starts (Ellis & Merry, 2007). Crop cycles can be broken down into 4 different phases:
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Figure 26 Sugarcane crop cycle
Source: (Netafim, 2011a)

The germination phase starts around 7 to 10 days after sprouts have been sown, and
lasts between 30 to 35 days until germination is completed. Then follows the tillering
phase, and it lasts up to 120 days, and is a physiologic process of repeated underground
branching. That is immediately followed by the growth phase, and it lasts approximately
270 days. During this stage sugarcane stems are stabilized. Ripening phase is the last
stage, and it lasts near to three months, and the vegetative growth is reduced while the
sugar synthesis takes place along with a rapid accumulation of sucrose. As the ripening
progresses, those sugars in simple forms (monosaccharide compounds like fructose and
glucose) are turned into proper sugar (sucrose, which is a disaccharide). Ripening of
sugarcane happens from the bottom to the top, therefore the lower part contains much
more sugar compounds than the upper section. Sunny, warm days and clear night
skies(i.e. more temperature variation during the day) along with dry weather are highly
favorable for this ripening process (Netafim, 2011a).
After the ripening phase, which took between 12 to 13 months after sowing, sugar
cane can be cut and collected. Right after this step the shoots produce a new set of stems
without need of replanting. New sprouts grow and develop, while old roots die and rot.
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So, each crop is maintained by water and nutrients from its own system of roots. The
issue that emerges in this practice is that with each cycle, soil loses its structure and it gets
compacted by intense mechanization. Inclination mentioned earlier in the land
preparation step no longer exists, or it is vastly reduced by the second or third cycle;
therefore:
 storage and movement of air and water can be diminished,
 the content of salt and sodium in soil increases,
 roots are easily damaged by the collection equipment and,
 in general sense, plants are more vulnerable to plagues and diseases, so their
exposure to them is more costly.
In conclusion, a proper root system formation is more difficult to obtain for further shoots
in future cycles, reducing the potential population of plants along with the yield to the
extent that it is less expensive to start all over again (Ellis & Merry, 2007). As is shown in
the table below, average crop cycle in the geographic valley of Cauca River takes between
11 to 13 months and depending on location, sugarcane can complete from 5 up to 9
cycles.
Table 17 Sugarcane crop cycle (Cauca Valley River)
Area and weighting factor within the selected studied locations

Questionnaire
Parameter Average
C001 C002 C003 C004 C005 C006 C007
10H3
11H0 11H0 11H1 11H2 10H5
Agro-ecologic zone 6H1 11H3
6H1 6H1 6H2 6H3 5H5
18H0
Cuts (times) 8 9 5 5 5 5 5 6
Average (months) 13,5 12,7 13 13 13 12 12 12,7
Area (ha) 14000 274 121 8800 20 6023 3000
Weighting factor (%) 43,4% 0,8% 0,4% 27,3% 0,1% 18,7% 9,3% 100,0%
Source: CUE from data field
Biomass of remaining foliar material that comes from crops varies depending on the
type of sugarcane that has been used, therefore the self-destruction and the ratio of mass
leave/stem might have significant effect in collection costs and following performance
tasks. Crop burning, right before harvesting, eliminates most of dead vegetation without
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creating a substantial impact in the inner part of the plant, and it also gets rid of potential
plagues of hazardous species that can represent a threat to sugarcane cutters (James,
2007). This burning practice is widely utilized in Colombia as can be seen here.
Table 18 Sugarcane Collection method within de geographic Valley of Cauca River
Sugarcane Collection method within de geographic Valley of Cauca River (%)

Questionnaire
Parameter Average
C001 C002 C003 C004 C005 C006 C007
10H3
Agro-ecologic 11H0 11H0 11H1 11H2 10H5
6H1 11H3
zone 6H1 6H1 6H2 6H3 5H5
18H0
Burning 70% 70% 70% 70% 70% 70% 70% 70%
No-burning 30% 30% 30% 30% 30% 30% 30% 30%
Manual 55% 100% 100% 50% 0% 79% 79% 66%
Machinery 0% 0% 0% 50% 100% 21% 21% 34%
Source: Cenicaña
Collection can be implemented through manual labor, or it can be done mechanically.

When this task is done manually it implies that sugarcane is cut with a machete after the
burning process, or otherwise when still unripe. Manual harvesting process requires
trained labor, given that inadequate collection leads to yield loss, deficiencies in juice
quality and problems during milling process due to presence of alien materials. In most
areas, nevertheless, the cut of unripe sugarcane contains higher levels of alien materials
(earth, leaves, and other material without sucrose content) that the harvest that has gone
thought the burning process (James, 2007).
If the ratooning process is implemented (which is the agricultural practice of using
sugarcane shoots from a previous cycle, as described earlier), then it is preferred to use
manual cutting, rather than mechanic methods, given that mechanical equipment tends
to destroy roots and the likelihood of soil compaction increases. Furthermore, collection
with mechanical axes is directly proportional to higher levels of strange material, in
comparison with the manual method. Notwithstanding, when the price of labor is high or
labor otherwise scarce, mechanic methods can become financially feasible and attractive
(James, 2007).
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Once harvest is done, cut stems are loaded and transported to the ingenio (or milling
plant), and the land is left to rest after the last cycle corresponding with the collection of
the last ratoon.
6.3.1.4 Productivity
Due to favorable climatic conditions and good agricultural practices, Colombia

produces a high yield of 14.6 tons of sugar per ha/year; and annual average yield is near
to 120 tons of sugarcane/ha/year in the north of the Geographic Valley of the Cauca River,
127 ton/h/y in the center and 105 ton/ha/y in the south of this region (Asocaña, 2010).
Productivity values provided by ASOCAÑA are of 120 tons of sugarcane per ha for 2009
and 117.6 tons of sugarcane per ha as average between 2000 and 2009 (Asocaña, 2010).
Figure 27 Sugarcane yield and sugar yield
Sugarcane yield (productivity), and sugar yield (tons/ha)

Source: (Asocaña, 2010)
Annual variation of production can be explained by changing weather conditions,
whereas agricultural practices have not experienced any great modification. Due to
fluctuation of annual productivity, average yield values from 2000 to 2009 were taken for
this study. As shown below, productivity of selected plantations varied between 91 and
142 ton/ha/year with an average of 114 ton/ha (weighted average regarding the zone).
177
Figure 28 Sugarcane yield for the assessed plantation sites
6.3.1.5 System characterization
Here, there are illustrated inputs that are used for the sugarcane crop and emission.
Individual flows are described in upcoming sections.
Figure 29 Sugarcane inventory overview
178
6.3.1.6 Feedstock and supplementary raw materials
6.3.1.6.1 Seedlings
In commercial plantations of sugarcane the method of vegetative propagation is

implemented, if the stems are cut in three scions they sprout out before being covered.
All these sprouts germinate in an array of continuous rows of uniform growth. For manual
planting, densely sown ranges go from 5 to 10 seeds of sugarcane per hectare. For this
study, it was assumed extreme condition of 10 tons sugarcane seed per hectare. The use
of cuts is included in the calculation of productivity of sugarcane, throughout yield
reduction.
6.3.1.6.2 Fertilizers application
With the purpose of offsetting nutrient loss after the harvest, sugarcane crops are
fertilized and in the case of plagues and diseases some measures of bio-control are
implemented. Typical fertilizes are urea, Diammonium phosphate –DAP-, Ferticaña,
vinasses, compost and are presented by hectare in the next table.
179
Table 19 Fertilizer application in studied locations (kg / ha / y)
Fertilizer application in studied locations (kg / ha / y)

Entry Questionnaire
Average
Mineral fertilizer C001 C002 C003 C004 C005 C006 C007
Urea 400 0 369 369 323 160 160 321
KCL 0 95 92 0 92 0 0 1
DAP 0 0 0 0 0 25 25 7
Boron and Zinc 0 0 0 0 0 0 0 0
Boron and Zinc (liq) 0 0 0 0 0 0 0 0
Zinc Sulphur 0 24 0 0 0 0 0 0
Zinc Sulphate 0 5 0 0 0 0 0 0
SAM 156 0 0 0 0 0 0 68
Calphos 0 0 0 0 0 0 45 4
Agricultural lime
(calcium carbonate) 0 0 0 0 0 0 594 55
Organic fertilizer
Vinasse 35% 0 0 0 0 0 5825 5825 1625
Compost 0 0 0 0 0 8000 8000 2232
Chicken manure 0 1421 0 0 0 0 0 13
Ferticaña* 1 0 1 0 0 0 0 0
Crop residuals 44444 47368 50769 50769 50769 55000 55000 49218
Total N 227,6 12,8 169,9 169,8 148,6 105,2 105,2 176
Total P2O5 6,4 0 0 0 0 0 0 3
Total K2O 0,1 0 0 0 0 0 0 0
Weighting 43,5% 0,9% 0,4% 27,3% 0,1% 18,6% 9,3% 100%
Source: Cenicaña
* Assessment unit: lt / ha / year
The amount of nutrients applied to the field is shown in the table below, and it is
compared with the values and recommendations from the literature.
180
Table 20 Recommended dose of fertilizers for sugarcane crops
Recommended dose of fertilizers (N-P-K) for sugarcane crops. Assessment unit kg/ha/y
Description N P2O5 K2O
Minimum (a) 13 0 0
Geographic Valley of
Average (a) 176 12 52
Cauca River (Colombia)
Maximum (a) 227 37 183
Organic crop (Colombia) (b) 50-100 60-120 60-150
Cenicaña (Colombia) (c) 40-175 0-50 0-100
Ecoinvent (Brazil) (d) 55 51 101
Sources:
(a) Data from field
(b) http://www.sugarcanecrops.com/agronomic_practices/fertigation
(c)
http://www.cenicana.org/pdf/documentos_no_seriados/libro_el_cultivo_cana/libro_p153-
177.pdf
(d) Ecoinvent
6.3.1.6.3 Biological control and pesticides application
Within last years, biological control of plagues and diseases has gained great
importance. In particular, in the study locations stingless wasps, or Trichrogramma, are
used, along with some Nitrogen fixing organisms and some species of Tachinidae (true
flies). Nonetheless, in order to avoid plagues and diseases in vast monoculture fields, use
of pesticides and chemicals is common practice.
181
Table 21 Pesticides application per year and hectare
Pesticides application per year and hectare

Entry of pesticide / herbicide C001 C002 C003 C004 C005 C006 C007 Average
Glyphosate (kg/ha) - - - - - 1,4 1,6 0,41
Roundup 747 (Glyphosphate)
- 0,3 0,4 0,4 0,4 - - 0,12
(kg/ha)
Sulphur (kg/ha) - 18,8 - - - - - 0,16
Roundup (kg/ha) - - - 1,3 - - - 0,36
Gasapax (l/ha) 1,1 1,2 0,8 0,8 0,8 - - 0,70
Larmex (kg/ha) 1,8 - 1,2 1,2 1,2 - - 1,11
Terbutryn (l/ha) 0,6 0,8 0,8 0,8 0,8 - - 0,47
Amina (l/ha) 0,8 0,7 0,7 0,7 0,7 0,8 0,8 0,78
Index A (kg/ha) - - - 0,4 0 0,4 - 0,19
Cosmoagua (kg/ha) - 0,2 0 - 0 - - 0,00
Percloron (kg/ha) - 0,2 - - - 0,2 0,2 0,06
Diourion (kg/ha) - - - - - 2 2 0,56
Ametrina (kg/ha) - - - - - 1 1 0,28
Atrazina (kg/ha) - - - - - 2 2 0,56
Mexclater (kg/ha) - - - - - 2,5 2,5 0,70
Fusilade (l/ha) - - 0,6 0,7 0,7 - - 0,19
Source: CUE
6.3.1.6.4 Irrigation and draining
Annual precipitation in the geographic valley of the Cauca River varies between 800
and 2600 mm/year and it exhibits an average of 1000 mm/year. Historically there have
been 2 main rainy seasons, from March to May and from October to November. Crop
requirements start from 900 to 1300 mm/year approximately, during almost 13 months
(that is 1 cycle). In the figure below, is shown precipitation and transpiration in the
Geographic Valley of Cauca River.
182
Figure 30 Precipitation, Evaporation , in the Geographic valley of Cauca River
Precipitation (left), Evaporation (right), in the geographic valley of Cauca River

Source: (Cenicaña, 2011)
With the purpose of recovering losses from transpiration during dry periods, most
sugarcane plantations in the Geographic Valley of the Cauca River must be irrigated
(Cassalett, Torres, & Isaacs, 1995). Aside from natural climatic conditions, required
amounts of irrigation water will depend on the irrigation technique. In general, open
channels are employed to water sugarcane plantations.
Irrigation frequency is approximately 5 times per year, and applies between 5000 to
9000 m3 per hectare. However, if a pipeline system is installed the water amount can be
reduced to 3600 m3 (Cenicaña, 2010).
183
Table 22 Water requirements for sugarcane using different irrigation systems
Water requirements for sugarcane using different irrigation systems (cubic meters/ha)
Water saving and applied volumes Four irrigations Four irrigations
with the use of irrigation One irrigation with hydric without hydric
technologies * balance balance
Water volume applied in the crop
irrigation without implementing 1800 7200 12600
any of the mentioned technologies
Minimum water savings if
Irrigation Administrative Control 200 800 1400
(IAC) is applied
Water volume after implementing
1600 6400 11200
the IAC
alternative furrow irrigation is 300 1200 2100
applied
1300 5200 9100
the IAC and alternative furrow
pipelines with lock gates are 200 800 1400
established
the IAC, alternative furrow and 1100 4400 7700
pipelines with lock gates **
Minimum water savings if pulse
200 800 1400
irrigation is adopted
the IAC, alternative furrow,
900 3600 6300
pipelines with lock gates and
pulses
* Estimated values based on research implemented by Cenicaña in conjunction with sugar
mills and sugar farmers
** Values reached by Manuelita Ingenio in 2011
184
Figure 31 Irrigation channel in sugarcane plantations
Cenicaña ©
The predominant irrigation system in the locations of study is the open channel,
moving water by way of gravity, while some plantations use more efficient pipeline
systems. Depending on the location and irrigation technique, the amount of irrigated
water varies between 1800 and 6250 m3 per ha/year. Therefore the amount of irrigated
water varies between 20 and 75 liters per ton of sugarcane.
This study assumed the use of a water pump with an engine of 100 HP that has a
capacity of deliver 341 m3 per hour, and creates an energy demand, for that matter, of
0.22 kWh per m3.
6.3.1.7 Use of machinery and energy
Preparation and land use

Most machinery is utilized with the purpose of establishing the whole plantation and,
of course it has an important role in harvesting activities. It is crucial to carefully prepare
plantation land, given that crop spends between 5 to 6 years in the same site before it is
replaced by a new one. The main goals behind land preparation are to prepare a layer of
soil that receives a set of seeds, allowing perfect relationships between air-water-land; to
add residual wastes from previous crops and organic fertilizers, in order to ease
corresponding microbial activity and subsequent creation of good physical conditions for
penetration and early proliferation of roots into the ground.
A typical land preparation within the geographic valley of Cauca River is implemented
via mechanized alternatives and it involves the following steps:
185
Figure 32 Machinery and equipment used for land preparation
In the same manner, the following table presents energy requirements for land
preparation in the case of sugarcane crops:
Table 23 Energy requirement for land preparation
Energy requirement for land preparation in the sugarcane case

Diesel consumption
Machinery Goal Ecoinvent process
l/ha kg/ha
Mix of crop residuals, Farming, rotating
Harrow I 18 15
destruction of faeces cultivator/ CH U
Compacted soil breaking in Harrow, raking, by
Roots cut 48 39,9
order to ease roots depth rotating harrow / CH U
Plough Mix of soil 24 20 Farming / plough
Good surface for cultivation Farming, raking, by
Harrow II 18 15
land rotating rake / CH U
Preparation of the Farming, raking, by
Harrow III 18 15
cultivation land rotating rake / CH U
Filling of irregular surfaces
Leveling and application of grids to 7 5,8 Farming, raking / CH U
drain water excess
Furrower Land furrowing 16 13,3 Farming, raking / CH U
Improve nutrient features of Fertilization by
Fertilizer 5 4,2
land. Application of lime transmission/CH U
Tractor Sowing activity 7 5,8 Plantation/ha/CH
Source: Data field. CUE study
186
Harvesting
Harvesting starts with the burning process (if applied), followed by cutting.
Afterwards, sugarcane is loaded onto some wagons to be transported to the mill. In
general, transport and sugarcane processing must take place within 36 hours after the
burn takes place (and the same case when the cane is cut unripe), in order to avoid sucrose
losses.
Figure 33 Green manual harvest. Loading of cut sugarcane after pre-harvest burning.
Green manual harvest (on the left). Loading of cut sugarcane after pre-harvest burning
(on the right).
Manual harvest (either burnt or unripen), as mentioned before, implies cutting with a
machete, loading onto wagons, and transporting to the ingenio. For the loading task in
the Cauca Valley region they employ mechanic lifters with hydraulic arms.
187
Table 24 Energy consumption of the mechanic and manual harvesting process
Energy consumption of the mechanic and manual harvesting process

Diesel
Econinvent
Process consumption kg/ha/y Description
data set
(l/ha/y)
The inventory takes into account diesel
Fodder consumption and the quantity of agricultural
load per machinery that must be attributed to sugarcane
Manual
12,9 13,73 automatic wagons. In addition , it takes into account the
harvesting
trailer / CH amount of emissions to the air by combustion
U and the residuals left on the ground by tires
abrasion
The inventory takes into account diesel
Crop, per consumption and the quantity of agricultural
complete machinery that must be attributed to sugarcane
Mechanic
75,4 62,73 cultivator, wagons. In addition , it takes into account the
harvesting
beetroot / amount of emissions to the air by combustion
CH U and the residuals left on the ground by tires
abrasion
Sources: Data field. Ecoinvent Data set
In a broad way of speaking, diesel consumption is between 24 to 86 liters per ha/year,

depending on the type of harvesting method (manual or mechanic). In Brazil, diesel
consumption varies between 68 and 285 liters per ha/year (average of 164 liter/ha/year)
(Isaias C. Macedo, Seabra, & Silva, 2008). Nevertheless, the value that is presented for the
Brazilian case includes transportation from the plantation to the mill, which used 90 liters
per hectare, therefore values are comparable.
6.3.1.8 Land use Change
The next table presents land use per kg of sugarcane. All the plantations as part of
this study were established decades ago on these lands, therefore, there is no direct
impact on the LUC. However, land occupation avoids conversion of these plantations to
their original natural state; hence some impact is created in such regard.
188
Table 25 Transformation of the Land use and occupation of the sugarcane
Transformation of the Land use and occupation of the sugarcane plantations within the studied
locations
Questionnaire
Parameter
C001 C002 C003 C004 C005 C006 C007 Average
Land use in
Sugar- Sugar- Sugar- Sugar- Sugar- Sugar- Sugar- Sugar-
2000 (type of
land) cane cane cane cane cane cane cane cane
Occupation
8,80E-02 8,30E-02 7,10E-02 8,60E-02 7,10E-02 9,20E-02 1,10E-01 9,20E-02
(m2)
Transformation
, from 4,40E-03 4,10E-03 4,10E-03 3,60E-03 4,30E-03 3,60E-03 5,60E-03 4,50E-03
cultivable (m2)
Transformation
, to cultivable 4,40E-03 4,10E-03 4,10E-03 3,60E-03 4,30E-03 3,60E-03 5,60E-03 4,50E-03
(m2)
Source: Cenicaña
Furthermore, it is assumed that carbon content contained in the ground remains

constant during the sugarcane cycle.
6.3.1.9 Carbon absorption and energy from biomass
Absorption of carbon dioxide is calculated from carbon content within sugarcane

(0.451 kg of CO2 per kg of sugarcane), while the energy of biomass is calculated based on
the reported energy content of sugarcane (4.95 MJ per each kg of sugarcane) (Jungbluth
et al., 2007).
6.3.1.10 Emissions to the atmosphere
Fertilizers application, in conjunction with the burning process before harvesting

tasks, creates emissions of pollutants to air. For the pre-harvest burning process consider
the values presented in the literature, presented here:
189
Table 26 Emissions to the atmosphere from the burning process
Emissions to the atmosphere from the burning

process before harvesting tasks (kg / kg of
sugarcane)
Substance Amount
Nox (a) 1,07E-04
CH4 (b,c,d) 3,03E-04
CO (a,c,d) 3,27E-02
Particles > 10 µm (a) 2,62E-03
Particles > 2.5 µm (a,c,d) 2,84E-04
CH (a) 5,30E-03
Sources: (a) Leal 2005, (b) Macedo 1997, (c)
Jungblunth 2007, (d) Dinkel et.al 2007
Ammonia emissions were calculated by employing emission factors from the

Agrammon model (SHL, 2010). For urea, emissions of NH3 are 15% of total nitrogen
applied and the model forecast that some other mineral fertilizers release only 2% of the
total amount of nitrogen. For compost and poultry manure, it is estimated that 80% and
30% of Total ammoniac nitrogen are emitted in the form of NH3, respectively. Emissions
of NO2 and of NOx were modeled by employing emission factors from IPCC (Solomon et
al., 2007).
Table 27 Emission to the atmosphere from fertilizers application
Emission to the atmosphere from fertilizers application (kg / kg of sugarcane)

Parameter C001 C002 C003 C004 C005 C006 C007 Average
NH3 - N 2,60E-04 8,60E-07 1,80E-04 2,20E-04 1,60E-04 2,10E-04 2,50E-04 2,40E-04
N2O 7,80E-05 4,20E-05 5,90E-05 7,00E-05 5,60E-05 7,70E-05 9,40E-05 7,70E-05
NOx 1,60E-05 8,80E-06 1,20E-05 1,50E-05 1,20E-05 1,60E-05 2,00E-05 1,60E-05
Source: CUE based on emission models
For wastes on land see appendix 5.
190
6.3.2 Sugarcane processing plant (ingenio) and ethanol production
The installed capacity of sugarcane-based ethanol production has reached 1,050,000

liters per day. Inventory data used in this study were collected from those firms signed
with asterisk (*) and are presented in the next table:
Table 28 Ethanol plants in Colombia 2009
Ethanol plants in Colombia 2009
Capacity
Company Region (liter/day)
Incauca (*) Miranda, Cauca 300000
Providencia (*) El cerrito, Valle 250000
Manuelita (*) Palmira, Valle 250000
Mayagüez (*) Candelaria, Valle 150000
Risaralda La virginia, Risaralda 100000
Total 1050000
Source: (Fedebiocombutibles,2012)
In addition there is an ethanol plant that uses cassava as feedstock, located in Puerto
Lopez, Meta (see appendix 1). The company that owns this plant is GPC Etanol, and has
an installed capacity of 25,000 liters per day. There are projected investments for 2
bioethanol plants with sugarcane as feedstock with a combined installed capacity of
850,000 liters per day. It was reported in 2009 that the company Bioenergy is planning to
build an ethanol plant in Puerto Lopez with a minimum capacity of 480 m 3/day of
anhydrous ethanol (Fernández Acosta, 2009). As the plant is not currently operating, it is
not included in this study.
With the purpose of establishing a set of representative data of ethanol production in
Colombia, data was collected from 4 out of 5 fully operating plants (which correspond by
volume to 90% of the sample). The average was calculated as a weighted average for
most inputs and outputs of matter and energy. Weighting factors are calculated based
on the real annual production for 2009 for both sugar and ethanol plants (see table
below).
191
Table 29 Weighted average of production of different ethanol production companies
Weighted average of different ethanol production companies

Annual production Unit E001 E002 E003 E004 Total
Produced ethanol ton/y 60992 56656 42483 78432 238,562
Produced ethanol l/d 232775 216228 152870 299336 938,926
Weighting factor % 26% 24% 18% 33% 100%
Source: CUE based on interviews to experts
6.3.2.2 Description of the system
Within this study the ethanol production process can be broken down into 4 stages:
 Milling stage (sugar processing plant - ingenio). Within this stage is included the
presence of turbines and industrial boilers.
 Ethanol plant (includes fermentation, distillation, dehydration, and vinasses
concentration)
 Waste residual treatment plant
 Compost
The figure below shows a depiction of the mentioned process and flow of materials.
Figure 34 Illustration of ethanol production process in Colombia
192
Despite the fact that ethanol production and sugar processes are quite alike for this
sample of firms, they do differ, particularly in the use of by-products. Main differences
are presented in the following table. In this study, besides modeling of the average
ethanol production in Colombia, it also identified the optimization potential, by using a
scenario from the “optimized system” as is shown in the previous figure. For both
scenarios assumptions for different treatment choices are identified.
Table 30 Mass flows and technologies for sugar and ethanol plants in Colombia
Mass flows and technologies for sugar and ethanol plants in Colombia
Product/ Average Optimized
Company 1 Company 2 Company 3 Company 4
process scenario scenario
Sugar mill
19.6%
100% sugar sugar, 100% 100 %
Refined
Sugar (special 80.4% refined (special Average
sugar
refined) refined sugar refined)
sugar
Application
in Application Application
Filtered
Compost plantation in in Compost Compost
mud
and plantation plantation
compost
Leaves and
residuals of Application
the Compost Compost in Compost Compost Compost
sugarcane plantation
plant
Application Application
Ashes Compost Compost in in Compost Compost
plantation plantation
Ethanol production
Boiler Bagasse and Bagasse and Bagasse and
Bagasse Average Bagasse
feeding charcoal charcoal charcoal
Exchange
of bagasse
with the Yes No Yes Yes Average Average
paper
industry
Molasses B
Feedstock
Molasses B Molasses B Molasses B % Clear Average Average
for ethanol
juice
193
It is
released to It is It is It is
Average:
the released to released to released to
CO2 Atmosphere It is sold
atmosphere the the the
and sold
and it is also atmosphere atmosphere atmosphere
sold
Evaporation Evaporation Evaporation Evaporation Evaporation
Vinasse
: Flubex and : Flubex and : Flubex and : Flubex and : Flow and Compost
treatment
compost compost compost compost compost
Residual
Flemaza
water
(Residuals
treatment RWTP.
from the RWTP. Pool RWTP. Pool RWTP. Pool RWTP. Pool
plant Pool
rectificatio
(RWTP).
n column)
Pool
Pool
Pool Pool Pool Pool Pool
(femazas)
Water (femazas) (femazas) (femazas) (femazas) (femazas)
Irrigation-
treatment Irrigation- Irrigation- Irrigation- Irrigation- Irrigation-
fertilizatio
fertilization fertilization fertilization fertilization fertilization
n
Sources: Interviews with experts
The inventory of the average sugarcane processing plant in Colombia has been
calculated in two stages. Firstly, were established inputs and outputs of sugarcane and
ethanol plants, per 100 tons of raw sugarcane. Given that sugarcane processing is a
procedure with multiple outputs, the environmental share has to be distributed among
the individual outputs. The second stage calculated the impact for a kg of ethanol.
6.3.2.3 Sugarcane mill and sugar processing plant (Ingenio)
Here is a summary of the sugarcane transformation process through the chart, and
this information is complemented and widened in appendix 9
194
Figure 35 Sugarcane transformation process
Source: (MANUELITA WEBSITE, 2010)
6.3.2.3.1 Material and energy inputs
Substances and energy required to process 100 tons of sugarcane are displayed as
follows. All these values are assessed in wet weigh and the standard deviation is
presented as well:
Table 31 Material and energy consumption of the sugar processing Factory
Material and energy consumption of the sugar processing factory per every 100 tons of sugarcane
Average and
Process Entry Unit optimized SD Reference Ecoinvent
scenarios
Sugar mill Sugarcane Ton 100 - -
Limestone, grinded, in
Heating Calcium Ton 0,08 0,01
plant / CH U
Organic chemicals, in plant
Clarification Flocculant Ton 1,18E-03 9,14E-04
/ GLO S
Sulphur dioxyde, liquid, in
Sulphitation Sulphate Ton 0,01 0
plant / RER U
Boiler and
Water ton 57,55 50,75 Tap water, used / RER U
wash
195
Sodium hydroxide, 50% in
Wash NaOH ton 0,02 0,01 H2O, production mix, in
plant / RER U
Benzene chloride, in plant
Milling Biocides ton 1,64E-04 1,11E-04
/ RER U
Ammonium chloride, in
Evaporation Surfactants ton 7,22E-05 1,21E-04
plant / GLO U
Auto-
- generated kWh 3,003 699 -
electricity
Electricity, average
Electricity
- kWh 257 120 voltage, CO production, to
network
the grid
- Steam ton 53,49 9,89 -
Source: CUE based on data field
Due to the fact that the optimization process only took into account the cogeneration
alternative, the material and energy inputs are not affected whatsoever. This is the reason
why the two scenarios (average and optimized) exhibit the same values.
6.3.2.3.2 Energy generation and consumption
In general, ingenios are self-sufficient in terms of energy, which means that energy
embedded in the bagasse is enough to satisfy energy requirements expressed in steam
and electricity. In some cases some electricity surplus is sold back to the main energy grid.
Due to economic reasons, the sugar industry in the geographic valley of Cauca River
exchanges some of their bagasse for charcoal that comes from the paper industry. Most
of the boilers of sugar processing plants employ a fuel mix of bagasse and charcoal.
Composition and calorific values of these materials are presented in data from the UMPE,
and are presented in table 25 (ACCEFYN, 2003).
196
Table 32 Properties of bagasse and charcoal
Properties of bagasse and charcoal

Parameter Unit Bagasse Charcoal
Inferior calorific power (MJ/kg) 9 26,91
Humidity % 42 to52 7,9
C % 46 66,99
Humidity % 16 3
S % 0 1
O % 38 8
Ashes % 2 12
Source: (ACCEFYN, 2003)
Steam that comes from high pressure boilers is sent to turbines in order to produce
electricity, whereas low pressure steam is used directly in the sugarcane treatment
process. The figure below shows a general illustration about the cogeneration system for
the sugarcane processing industries.
Figure 36 Illustration of the co-generation system applied within sugar mill facilities
Source: (Castillo, 2009)
The table below contains a summary of inputs, outputs and efficiency of cogeneration
for different firms per each 100 tons of processed sugarcane.
197
Table 33 Summary of cogeneration processes of the different companies
Summary of cogeneration processes of the different companies per 100 tons of processed sugarcane
Detail Parameter Unit Average SD Optimized
Bagasse ton/100 ton of sugarcane 25 4 25
Input Charcoal ton/100 ton of sugarcane 1 0 0
Water ton/100 ton of sugarcane 55 8 43
Mill TCH 453 116 400
psig 987 343 970
Boiler
°C 478 64 510
Technology
Capacity lb steam/h 344 193 400
Charcoal 83% 5% 0%
Efficiency
Bagasse 66% 1% 66%
Boiler
Bagasse MJ/ton of sugarcane 148605 25224 148605

Charcoal MJ/ton of sugarcane 22443 7020 0
Total MJ/ton of sugarcane 171048 26245 148605
ton steam/100 ton of
Steam (mill) 53049 9899,89 53,49
sugarcane
Steam ton steam/100 ton of
Output 0,07 0,01 0,07
(EtOH) sugarcane
Total steam 53,57 9,88 53,57
sugarcane
Ashes
ton /100 ton of sugarcane 0,18 0,06 0
(charcoal)
Ashes
ton /100 ton of sugarcane 0,25 0,04 0,25
(bagasse)
Input Total steam 54 10 54
sugarcane
Steam rate kg of steam/kWh 15 4 15
Technology kWh el/kWh (thermal) 8% 2% 9%
Turbine - Electricity
Efficiency
kWh el/kWh inputs 5% 1% 6%
Electricity kWh/100 ton of
3003 699 3003
(mill) sugarcane
257 376 115
(sold) sugarcane
Output
415 157 415
(EtOH) sugarcane
kWh/100 ton of
Total 3675 1072 3533
sugarcane
Energy loss from boilers is approximately 33% and they produce 2.2 tons of bagasse.
Thus, per each 100 tons of sugarcane 53.6 tons of steam is produced, which matches with
those values provided by CENICAÑA (i.e. from 45 to 68 tons per each 100 tons of
sugarcane) (Castillo, 2009). Low pressure steam is mainly used for the evaporation process
198
(37%-50%) (Castillo, 2009). Ash content is calculated as 2% of dry weight for bagasse and
19% in the case of charcoal.
An average of 5% of energy contained in steam converts into electricity (11.8% in the
optimized system). In general 5% of energy contained in the mix of bagasse and charcoal
in turned into electricity (it reaches 6% in the optimized system), residual heat is used in
the treatment process. Each 100 tons of sugarcane produced uses 3.675 kWh of
electricity, which is on the upper limit of the band reported by CENICAÑA (from 2200 to
3600 kWh). Sugarcane production in Brazil exhibits an energy consumption of 2900 kWh
every 100 tons of sugarcane (Jungbluth et al., 2007).
For charcoal combustion, the reference from Ecoinvent “heat, in a charcoal industrial
oven 1-10MW” was used as an approximation to corrected efficiency of 83%.
6.3.2.3.3 Infrastructure
Infrastructure is based on the Ecoinvent process “Sugar refinery /p/GLO/I”. Plant

production capacity is 1650 kton of sugarcane, and it has a lifespan of 50 years. Boiler
infrastructure data was adapted from the set of data “wood chips, in cogeneration 6400
kWth, wood”, regarding ongoing water content, charcoal and fuel energy (bagasse and
charcoal)
Table 34 Infrastructure of the sugar mill, furnace and turbine

Infrastructure of the sugar mill, furnace and turbine per every 100 tons of sugarcane
Value
Lifespan (every 100
Infrastructure Capacity Unit Reference Ecoinvent
(years) ton of
sugarcane)
Sugar mill 50 1650 kt/y 1,63E-08 Sugar refinery / GLO
Co-generation unit 6400 kWth,
Boiler 20 6400 kWth 7,63E-05
firewood burning, construction
Boiler and
20 6400 kWth 1,73E-04 firewood burning, common
turbine
components for electricity-heat
Turbine 20 6400 kWth 1,73E-04 firewood burning, components for
electricity only
Source: Cue based on data field
199
6.3.2.3.4 Transport
Transportation distances are expressed as the quantity of tons moved over a given
distance (assessed in km) by a determined vehicle (finally assessed in ton/km).
Sugarcane transportation from the plantation place to the plant exhibits an average
of 23.27 km. For the remaining entries, it was assumed standard distances that are shown
on table below. In general, close to 2,405 t/km are moved by truck with the purpose of
transporting all material to the sugar refinery (see appendix 7).
6.3.2.3.5 Products and by-products from the ingenio
Outputs from sugar processing plants are presented as follows (again for every 100
tons of sugarcane). Main agricultural wastes are used for compost or for direct application
to the ground.
Table 35 Products and residuals from the sugar plant
Products and residuals from the sugar plant per every 100 tons of sugarcane (tons)
Average and
Output optimized SD Destination
scenario
B-honey 6,30E+00 4,40E-01 EtOH plant
Clear juice 1,00E+00 2,80E+00 EtOH plant
White sugar 4,50E+00 4,40E+00 Market
Refined sugar 4,80E+00 1,50E+00 Market
Filtered mud 4,20E+00 4,10E-01 Compost
Bagasse to the boiler 2,50E+01 4,10E+00 Boiler
Bagasse for paper industry 5,40E+00 3,70E+00 For paper industry
Cane residual on plant floor 1,30E-01 - For compost
Sugarcane leaves 5,80E-01 - For compost
Steam 6,00E+01 4,20E+01 To the atmosphere
Sugar production, in the Colombian case, presents an average of 9.3 tons, whereas
Ecoinvent reports 12 tons of sugar every 100 tons of sugarcane in Brazil. However, if the
sugar that is produced for alcohol fuel purposes is taken into consideration, the
production yield would reach 12 tons in the geographic valley of Cauca River, as well
(Asocaña, 2010). Reported production of bagasse in Brazil is 25 tons for every 100 tons
sugarcane(Gunkel et al., 2007). The range of values provided by CENICAÑA is between 24
200
to 35 tons (Castillo, 2009) and therefore the average value used in this study of 28.6 tons,
can be considered as valid.
6.3.2.3.6 Emissions to the atmosphere
Emissions from the sugarcane burning process into the boilers were considered based
on the set of data from Ecoinvent, assuming bagasse is burnt “wood chips, burned in
cogeneration 6400 kWht, emissions control”. Inventory was adapted according to the
following rules:
 All the inputs to the technological sphere of the process are considered proportional
to the input of dry matter
 Hydrocarbon emissions is proportional to carbon inputs
 Emissions of residual heat are proportional to energy inputs
 All the remaining emissions are proportional to dry matter inputs
In addition, specific values for sugarcane burning of NOx and PAHs were taken from
the report AP42 (EPA, 1996). All values are reported in appendix 8.
6.3.2.3.7 Residual disposal
All residuals created within the sugarcane processing plant are exhibited in the
following table.
201
Table 36 Residuals from sugarcane
Residuals from sugarcane per every 100 tons of sugarcane (tons)

Average
and
Residuals SD Ecoinvent reference
optimized
scenario
Junk 6,30E-03 4,30E-03 Steel and iron recycling / RER U, Junk in

plant / RER U
Ordinary residuals 3,80E-03 - Urban solid residual disposal, 22.9% water,

to municipality incineration / CH U
Used oil 5,20E-04 - Disposal, used mineral oil, 10% water,

hazardous residual incineration / CH U
Hazardous residuals 3,20E-04 - Disposal, hazardous residuals, 25% water,

hazardous residual incineration / CH U
Paper 2,30E-04 - Paper containers' disposal, 13.7% water,

landfill site / CH U
Packing 1,80E-03 2,10E-03 Paper containers' disposal, 13.7% water,

landfill site / CH U
6.3.2.4 Ethanol production
6.3.2.4.1 Introduction
Below is presented an illustrated and organized summary of the path that is followed
in an ethanol processing plant in Colombia. Main processes include microbial
fermentation, distillation and dehydration, which are described in appendix 9.
202
Figure 37 Summary of the sugarcane-based ethanol manufacture process
Honey B CO2 to air
Fermentation Washing
CO2 Water
column
Yeast
activation tank
Yeast separation
Wine Vinasse
Vinasse Compost
RWTP Flemaza Distillation Vinasse
concentration
Ferti-irrigation
EtOH 95%
Dehydration
EtOH 99.7%
6.3.2.4.2 Raw materials and energy inputs
In the table below are displayed the main inputs for the ethanol obtaining process for
every kg of alcohol fuel produced.
Table 37 Inputs and energy employed in the ethanol elaboration process
Inputs and energy employed in the ethanol elaboration process (kg per kg of ethanol at 99,6%,
unless indicated otherwise)
Average Optimized
Process Input SD Ecoinvent reference
Scenarion scenario
Fermentation B-Honey 3,30E+00 2,10E-01 3,30E+00 B. honey, sugar refinery/CO U

Clear juice, sugar refinery /CO
Fermentation Clear juice - 5,30E-01 5,30E-01
U
Fermentation Sulphur acid, liquid, plant/RER
H2SO4 1,80E-02 5,50E-03 1,80E-02
propagation U
Nitric acid 50% in H2O,

Cleaning NHO3 1,10E-03 9,40E-04 1,10E-03
plant/RER U
Fermentation
General antibiotics 2,70E-05 2,30E-05 2,70E-05 Organic chemicals, plant/GLO U
(with pollution)
Fermentation Anti-foam 8,20E-04 1,20E-03 8,20E-04 Organic chemicals, plant/GLO U
203
Average Optimized
Process Input SD Ecoinvent reference
Scenarion scenario
Phosphoric acid, industrial, 85%

Fermentation Phosphoric acid 1,80E-04 2,50E-04 1,80E-04
in H2O, plant/RER U
Distillation Refrigeration water 1,30E+00 2,80E+00 1,30E+00 Tap water, user/RER U
Sodium hydroxide 50% in H2O,
Cleaning NaOH 8,50E-03 4,90E-03 8,50E-03
production mix, plant/RER U
Urea with ammonia nitrate, as

Nutrients Urea 1,80E-03 1,90E-03 1,80E-03
N, regional storage /RER U
Ammonium phosphate, as N,
Fermentation regional storage /RER U,
Ammonium phosphate 2,00E-04 1,90E-04 2,00E-04
propagation Ammonium phosphate, as
P2O5, regional storage / RER S
Fermentation
Lacostab antibiotic 4,90E-05 9,50E-05 4,90E-05 Organic chemicals, plant/GLO U
(with pollution)
Fermentation
Nutri-Plex Plus 7,30E-06 1,40E-05 7,30E-06 Organic chemicals, plant/GLO U
propagation
Sodium sulphate from viscosa

Cogeneration Nalco Pulv 1,80E-06 2,70E-06 1,80E-06
production, plant/GLO S
Fermentation Potassium Metabisulfite 2,40E-06 3,70E-06 2,40E-06 Organic chemicals, plant/GLO U
Fermentation Bioclean 5980 8,10E-03 1,20E-02 8,10E-03 Organic chemicals, plant/GLO U
Regional storage, 15% in H2O,
Cleaning Hypochlorite 4,80E-04 7,30E-04 4,80E-04
plant /RER U

Cogeneration Nalco 3DT 1,20E-05 1,80E-05 1,20E-05
production, plant/GLO S
Fermentation Masthone 2,80E-06 4,20E-06 2,80E-06 Organic chemicals, plant/GLO U
Fermentation Nalco Action 2,40E-05 3,60E-05 2,40E-05
production ,plant/GLO S
Fermentation Steam 3,90E+00 2,40E-01 3,90E+00 -
Auto-generation
Fermentation electricity (kWh/kg 2,10E-01 8,20E-02 2,10E-01 Electricity, sugar refinery/CO U
EtOH)
Grid electricity (kWh/kg Electricity, average voltage, CO
Fermentation 2,20E-02 6,30E-02 2,20E-02
EtOH) production, red/CO U
The reference ethanol processing plant presented in Ecoinvent as “ethanol

fermentation plant / p / CH / l” was used for infrastructure (Hischier et al., 2010).
Ecoinvent plant relies on a lifespan of 20 years and it produces 90,000 tons of ethanol per
year. Per each kg of ethanol produced it requires the equivalent to 5.5 E-10 plants.
6.3.2.4.4 Transport
204
Exact transport distances for most substances and the utilized equipment for ethanol
process are not known. Nevertheless, in accordance with the approximate distance of
production sites, there are estimated distances and corresponding vehicle fleet data for
transportation purposes. Total transportation was calculated in ton/km per kg of ethanol
fuel, based on the amount of product that required transportation, multiplied by the
distance.
Table 38 Transportation distances for ethanol production
Transportation distances for ethanol production

Transportation distance Quantity (kg / kg
Product
Truck > 28t (km) Cargo ship (km) of EtOH)
B-Honey - 3,30E+00
Clear juice - 5,20E-01
H2SO4 8,50E+01 1,70E-02
NHO3 1,10E+03 1,10E-03
Antibiotics 1,20E+03 9,30E+03 2,70E-05
Anti-foam 1,20E+03 9,30E+03 8,00E-04
Phosphoric acid 1,20E+03 9,30E+03 1,80E-04
NaOH 2,50E+02 8,30E-03
Urea 2,50E+01 8,30E-04
Ammonium phosphate 2,50E+01 3,40E-05
Lacostab antibiotics 4,00E+01 4,80E-05
Denatured gasoline 4,00E+01 7,20E-06
Nalco (powder) 4,00E+01 1,70E-06
Potassium
Metabisulfite 4,00E+01 2,40E-06
Bioclean 5980 4,00E+01 7,90E-03
Hypochlorite 4,00E+01 4,70E-04
Nalco 3DT 4,00E+01 1,10E-05
Sodium Metabisulfite 1,20E+03 1,50E+04 2,70E-06
Nalco action 4,00E+01 2,30E-05
Total (ton/km) 6,26E-03 9,06E-03 -
Source CUE based of data field
6.3.2.4.5 Products and by-products
Results from fermentation, distillation and dehydration processes are listed below.
205
Table 39 Products, by-products, and residuals from the ethanol process
Products, by-products, and residuals from the ethanol process (kg / kg EtOH)
Output Average SD Optimized Destination
Ethanol 99.6% 1,00E+00 0,00E+00 1,00E+00 Market
CO2 to the atmosphere 9,50E-01 3,70E-02 9,50E-01 Atmosphere
Liquid CO2 1,60E-02 2,40E-02 1,60E-02 Market
Vinasse 32.5 7,80E-01 - 7,80E-01 Compost
Vinasse 35 1,60E+00 8,50E-01 1,60E+00 Compost
Vinasse 55 2,40E-01 - 2,40E-01 Fertilization
Fusel 2,00E-03 3,80E-04 2,00E-03 Mix with EtOH
Flemaza to RWTP 3,90E+00 1,30E+00 3,90E+00 RWTP
Source CUE based on data field
Fusel alcohol is an alcohol of superior class, formed by 1-propanol, isopropanol, n-

butane, isobutene, alcohol amyl and furfural. In most cases fusel alcohol is sold for paints
or to be mixed with ethanol.
6.3.2.5 Water treatment
Vinasses and a residual that emerges from distillation process called “flemaza” have a
high content of organic matter and therefore a high biological oxygen demand –BOD-. If
these substances are added to surface water, the dissolved oxygen in water is greatly
reduced. This situation can reach such an extent where aerobic organisms (from aerobic
bacteria to fish) cannot survive.
Also, vinasse contains high concentrations of potassium, which can accumulate in the
ground to toxic levels. With the purpose of avoiding environmental stress, it is required
to treat these effluents. There are different sorts of treatment for these water residuals
(Briceño, 2006). In Colombia, vinasses are concentrated from 10% up to 55% of solids in
the Flubex, with the aim of reducing the amount of residual waters in a ratio of 3 – 5.
Concentrated vinasses are used in the production of organic fertilizers.
Nevertheless, evaporation of condensed gases, and the water used in the process
have to be treated in the residual water treatment plant. In general, water is treated
biologically, by using an anaerobic reactor and an aerobic lagoon.
206
Figure 38 Residual Waters treatment.
(Source of illustrations: www.praj.net, www.usba.org, and www.isu.edu )
Anaerobic digestion is based on the use of a diverse group of microorganisms that

reduce organic compounds to carbon dioxide and methane gas (biogas). Anaerobic
treatment has the advantage of great performance in substance degradation, particularly
when they are concentrated and resistant. A remarkable aspect of this method is the
production of a low amount of mud, with lower energy requirements than those
presented in aerobic choice. In Colombia the anaerobic reactor type UASB is used. The
maximum capacity rate for this equipment in regular operation is 15 kg Chemical oxygen
demand COD /m3 per day. This reactor can retain the treated mix on average 2.1 days.
Removal of average COD from the whole set of residual waters (from vinasses) was 60%,
in the reactor in a single stage.
The resulting biogas is burnt, whereas effluents of the UASB are treated aerobically
through bacteria, with the purpose of discoloring main colorants, melanoidins and
reducing COD and BOD.
In the last step, a sedimentation pool to separate muds from treated water is used.
Treated water flows like surface water, and the mud is dried up and used for land
preparation in further cycles. The whole mass balance for water treatment is presented
in appendix 10.
6.3.2.6 Compost
Vinasses, as they come out of the process, are concentrated and therefore they cannot
be applied directly; nonetheless, they can be mixed along with some of the other types of
residuals from the sugar refinery. Residuals used for compost production are the mud
207
filter (mud sieving process), sugarcane wastes that emerge from the sugarcane treatment,
and from the boilers ash.
Compost is a biological process of degradation of organic matter under anaerobic and
aerobic conditions. The whole compost process takes between 45 to 60 days until the
organic matter is pathogen-free, thus it can be taken back to the field, adding nutrients
and minerals.
Pre-treatment of solid waste (5-10 days): with the purpose of reducing moisture from
solid waste (filter cake, ashes and leaves), they are piled up and frequently mixed using
special equipment (Backhus turner). Homogeneity is fundamental for guaranteeing and
activating biologic decomposition of organic matter. Decomposition matter is activated
with a concentration of oxygen of 5%. Temperatures can reach levels between 55 to 60
°C.
Vinasse addition (10-30 days): In the second step, the pile is mixed with vinasse in a
ratio defined as a function of the humidity content of the mentioned pile. In general, it is
applied in a proportion of 1:1.5. Such vinasse that comes from the evaporation processes
(Flubex) is stored in a pool, from where the needed amount for compost purposes is
taken.
The optimal relationship for Carbon-to-Nitrogen is 25:1 to 30:1. Carbon is used for
microorganisms as an energy source for growth, and nitrogen is used for reproduction
and proteins synthesis. In the next step, vinasse addition starts, depending on the pile
humidity. Vinasse is combined with the pile on a daily basis, controlling temperature and
humidity in order to reach the required proportion to produce high quality organic
fertilizer.
Stabilization (30-45 days): After the vinasses addition, the pile needs to go through a
natural drying process, maturing, stabilization and eventually is taken to the packaging
area to be sold in standard units of 40 kg per sack. Based on the physical and chemical
composition, it is commercialized as Kompostar - registration number ICA 4574,
Vycompost - registration number ICA 6091 or Nutri Humicos - registration number ICA
5496.
The compost section of the visited processing plant for modeling the process is
presented below:
208
Figure 39 Illustration of compost general process.
Mass balance for compost stage is presented in appendix 11.
6.3.2.6.1 Transport and Machinery
Vinasses are moved via pipelines from pools to compost plants (approx. 100 m).
Compost is mixed mechanically with the purpose of maintaining a homogeneous
composition. Blackhaus equipment is employed to mix 60 tons of compost per day. 27
MJ of diesel is consumed, per ton of sugarcane.
The most employed technique for mixing filtered muds with vinasses is open land
method. Therefore the set of data presented by Ecoinvent “compost plant, open / CH /
IU” is used as an approximate reference of infrastructure.
6.3.2.6.3 Material outputs
Compost is applied in the sugarcane plantation fields or in other local agricultural

areas using the recommended application ratio of 9-15 tons per hectare.
209
6.3.2.7 General inventory overview and inventory allocation
In the following section, the main material flows and energy values, which are used
for determination of allocation factors, are provided:
6.3.2.7.1 Mass flow within the ethanol value chain
Figure 40 Mass flow of processing 100 tons of sugarcane for ethanol production.
Based on the data field from this study, Colombia produces, on average, close to 9.3
tons of sugar and 2 tons of ethanol per every 100 tons of sugarcane. Bagasse, as a by-
product, is used for steam generation purposes and electricity as well. Surplus energy is
sold to national or local energy grids. Furthermore, organic by-products are used for
compost production, or they are treated in waste water treatment plants.
In conclusion, in Colombia there are no plants for the exclusive production of ethanol,
given that the ongoing ethanol plants are attached to former sugar processing plants. In
Brazil, as it was mentioned earlier, there is production close to 12 tons of sugar per every
100 tons of sugarcane, whereas the amount of ethanol is just 0.9 tons (Jungbluth et al.,
2007). In Colombia, it can be said that the yield in terms of sugar production is fairly equal
to the Brazilian case (i.e. 12%). In Brazil, the amount of vinasses is generally higher than
210
that found in Colombia (9.3 tons per every 100 tons of sugarcane); nevertheless, in
Colombia vinasses are more concentrated due to the content of dry matter (in Brazil the
level is close to 15% of dry matter, while in Colombia it can be over 35%). Depending on
the concentration, vinasses production in Colombia reaches a level between 0.8 to 3 liters,
per every liter of ethanol (Asocaña, 2010).
6.3.2.7.2 Allocation factors
With the purpose of assessing the environmental impact of each individual output, it
is required to allocate corresponding total environmental impacts along the biofuels
production chain. The main allocation method is based on the economic value of the
products. However, an energy allocation method is applied for a sensitivity analysis.
Table 40 Allocation factors for the ethanol production (Average scenario)
Allocation factors for the ethanol production (Average scenario)
Scenario: Mass Economic Energy

Average balance allocation allocation
Amount Unit COP/unit % MJ/t %
Input
Sugarcane 100 ton - 22,3% 21,6%
Output
Special sugar 4,5 ton 1423 35,1% 16,5 31,5%
Refined sugar 4,79 ton 1491 3,9,2% 16,5 33,5%
Ethanol 99.6% 1,9 ton 2137 22,3% 26,8 21,6%
Biocompost 6,13 ton 96 3,2% 5 13,0%
Sold electricity
256,79 kWh 146 0,2% 3,6 0,4%
(COP/kWh)
CO2 liquid 0,03 ton 80 0,0% 0 0,0%
Allocation factors for these optimized scenarios do not change, due to the fact that
the main optimization activity is to avoid the use of coal. Carbon capture has neither
energy nor economic significant effects in the total value; therefore it is not taken into
account as an allocation factor.
211
Table 41 Allocation factors for the ethanol production (Optimized scenario)
Allocation factors for the ethanol production (Optimized scenario)

Economic Energy
Scenario: Optimized Mass balance
allocation allocation
Amount Unit COP/unit % MJ/t %
Input
Sugarcane 100 ton - 22,5% 22,5%
Output
Special sugar 4,5 ton 1423 35,5% 16,5 32,8%
Refined sugar 4,79 ton 1491 39,6% 16,5 34,9%
Ethanol 99.6% 1,9 ton 2137 22,5% 26,8 22,5%
Biocompost 4,36 ton 96 2,3% 5 9,6%
Sold electricity
114,51 kWh 146 1,0% 3,6 2,0%
(COP/kWh)
CO2 liquid 0,09 ton 80 0,0% 0 0,0%
Economic Value
Prices are calculated as factory prices instead of being calculated as market prices. In
addition, some prices are quite volatile; as a consequence the average price over several
years was considered (timespan will be specified shortly).
Furthermore, it is not possible for all products (or by-products) to be sold in a
previously established market, thus trade opportunities emerge. However, this trading
effect does not change results to a significant extent, due to the fact that main valuable
products (such as sugarcane and ethanol) rely on well-defined markets; even though they
can present price volatility. Some other by-products, such as compost and bagasse, are
absorbed by the sugar-ethanol production chain.
212
Table 42 Economic value of the products of the sugar refinery and ethanol plant
Economic values of the products of the sugar refinery and ethanol plant
(COP/k unless indicated otherwise)
Product Value Description Reference
Average prices from 2008 to 2010.
White Prices were weighted regarding
1423 (Asocaña 2011)
sugar volumes and prices of national and
export markets
Average prices from 2008 to 2010.
Refined Prices were weighted regarding
1491 (Asocaña 2011)
sugar volumes and prices of national and
export markets
Ethanol
2137 Average prices from 2008 to 2010. (Asocaña 2011)
99.6%
Value provided by
Biocompost 96 In 2010 companies staff (personal
communication)
Sold Value provided by
electricity 146 In 2009 companies staff (personal
(COP/kWh) communication)
Value provided by
CO2 liquid 80 In 2009 companies staff (personal
communication)
Bagasse for Value provided by
the paper 47 In 2009 companies staff (personal
industry communication)
Price for domestic sugar in Colombia is widely influenced by international prices and
adjusted to domestic conditions. The New York Stock Exchange determine the floor for
crude sugar and the refined sugar price floor is given by the quote provided by the London
sugar market. Additionally, transportation costs are added (Pinzon, 2009). Nevertheless,
the world sugar market is highly distorted and for most producers production costs
frequently surpass export prices offered at a global level. Therefore, the use of sugarcane
creates a high impact in exports markets (implying that the higher the ethanol production
the lesser the sugar exportation level), while, on the other hand domestic markets do not
face a direct impact.
In this study allocation factors are based on average prices from 2008 to 2010. Sugar
prices are determined by weighted prices (national and export prices weighted by the
volume of both markets). Sugar and ethanol national prices were provided by ASOCAÑA,
213
and export prices were based on the average export price (data provided by ASOCAÑA as
well).
Figure 41 Prices of refined and white sugar.
These prices have been weighted based on the amount traded, price of the local market and export price.
Electricity is sold in long run contracts with a fixed price and indexed to the CPI
(Consumer Price Index). CO2 is sold under contract. Prices employed in this study are
based on interviews with experts in the field. Nevertheless, given that quantities and
prices are low, the allocation factor is not sensitive to the employed values (therefore,
allocation factors are determined by sugar and ethanol prices).
214
Energy value
Table 43 Energy value of of the sugar refinery and ethanol plant
Energy value of the products and by-products of the sugar refinery and ethanol plant (MJ/k
unless indicated otherwise)
Special sugar Value Description Reference
Cenicaña (personal
Special sugar 16,5 -
communication)
Cenicaña (personal
Refined sugar 16,5 -
communication)
Standard energy content

Jungbluth, Dinkel et.al.
Ethanol 99.6% 26,8 for ethanol 99.6% is
2007)
taken from Ecoinvent
Compost with a
Estimated based on the
Biocompost 5 humidity content of
humidity content
27.5%
Sold electricity (MJ/kWh) 3,6 Conversion factor -
CO2 liquid 0 - -
6.3.3 Palm oil crop cultivation
Origins of the African oil palm, known as Elaeis Guineensis, come from the Guiney Gulf
in Western Africa (Corley & Tinker, 2008; Fedepalma, 2006b). The Elaeis Guineensis is
considered as a perennial tree with a single cylindrical stem with short inter-nodes, and
can grow up to 30 m. It has short thorns on leaves petiole and on the fruit bunch. Fruits
hang in a large and compacted bunch, which has a weight between 10 and 40kg. Fruit
pulp, which provides palm oil, surround the nut, which in turn, contains palm seeds
(Corley & Tinker, 2008).
215
Figure 42 Palm plantations in Colombia.
Nowadays, palm oil exists wild in nature, semi-wild, and cultivated in three main areas
in the equatorial tropics: Africa, South East Asia, and central and south America. In
Colombia, palm oil trees were introduced in 1932, but only in the middle of the 20 th
century did the palm oil crop cultivations start to be commercialized throughout the
country, backed up by government policies biased to develop agricultural lands and supply
Colombian territory with palm oil from domestic production (Fedepalma, 2006b). Planted
surface in the year 2008 is estimated to be 336,956 hectares, which represent an increase
of 9.8% in regards to the year before (306.878 ha). Only 66% of the total planted area is
productive, the remaining fraction is still under development. As is shown below, most of
the cultivation area has been placed on the eastern side of Colombia (121,135 hectares),
where 36% of the total area has crops at the moment. In the Northern region there is a
substantial portion as well (32%, with 106,635 ha), and the other 2 production spots are
located in the central region (26%, with 87,525 ha), and a small fraction in the south-
western region (6%, with 21,661 ha) (Fedepalma, 2009)
216
Figure 43 Main cultivation zones for palm oil in Colombia 2008
Source: Fedepalma, 2009
6.3.3.2 Selection of study locations
For this particular project and in order to establish the LCA study the main palm oil
cultivation areas were chosen. Table 48 presents a distribution of the planted area sown
in hectares of planted palms per zones.
The south-western region was excluded from the study due to the fact that during
the last two years 16.700 hectares of palm oil crops were lost (Fedepalma, 2006b), as a
consequence of the widespread disease of bulb rot, therefore the focus of the study was
217
set in the eastern, central and northern regions. Selection of these places was based on
the following criteria:
Exclusion criteria 1: Location must be representative for biodiesel plants

There must be a direct link between crop and biodiesel producer. Therefore, just
those crops in charge of providing Fresh Fruit Bunches (FFB) to a palm oil extraction
plant were selected, which in turn provide oil to the biodiesel processing plant.
Exclusion criteria 2: Representative crops

Regarding size, the most representative crops associated to the biggest extraction
plants that fed biodiesel processing plants were selected. This information was provided
by sector experts.
Exclusion criteria 3: Crop age

Some crops were established recently; therefore they were left out of the sample.
The reason is that some values, for instance, crop yields do not reflect the total yield for
the whole LCA.
In general three crops in the Eastern regions were studies, with a total area of
12,455 hectares, four crops in the north (9,276 ha) and three crops in the central region
(5,850 ha). To sum up, with the values collected represent 26% of all the crops linked to
biodiesel production in Colombia.
Table 44 Palm oil plantation and sampling areas (East, North and Central regions)
Palm oil plantation and sampling areas (East, North and Central regions)
Area / Region North Central East
Total 106635 85525 121135

Sampled 9276 5850 12445,4
Representation 8,70% 6,84% 10,27%
Source: CUE and Fedepalma
218
6.3.3.3 Agricultural system
Palm oil crop cultivation demands particular climate and soil conditions, but also it
requires:
 a very specific quality of seeds,
 a strict selection of seedlings in the nursery,
 good land preparation before planting ,
 the right selection of cover plants
 and the right use of fertilizers
in order to obtain maximum yield in each stage of production (Fedepalma, 2009).
In broad terms, the life cycle of a palm tree starts in the nursery, where seedlings are
developed in plastic bags during 10 to 20 months. Before sowing, the ground must be
leveled and all surrounding vegetation located in a 1 meter diameter from the place
(with a depth larger than 1 m) must be removed. Commercial plantations of palm oil are
established normally as monocropping practice with a symmetric distribution of 9m x
9m.
Figure 44 Palm tree. Different ages
Palm oil starts production in the second or third year after sowing. Yield rises
continuously and it reaches a stable level after 7 to 10 years. Generally speaking,
productivity and growth of palm oil is determined by the optimal availability of water
and nutrients, temperature, and the presence of plagues and diseases.
Palm oil production might last up to 50 years (Fedepalma, 2006b), however after 20
to 25 years, it is hard to harvest the plant due to its substantial height. In this study a
useful lifespan of 25 years was considered. After the tree has reached maximum height
it is injected with glyphosate in order to make it die, otherwise the palm tree is just cut
and removed. The re-planting takes place in clear fields or between dead palm trees.
219
6.3.3.4 Productivity
Palm oil offers the highest yields per hectare of all oil crops at present times (R. H. V.
Corley & PBH Tinker, 2007). In general, around 20 tons of FFB’s are produced per
ha/year. As it is shown in table 50, yield level hinges on the geographic area of
production and from the crop age. During recent years a great amount of new
plantations have been established (plantations that are not productive yet), therefore
the average yield experienced a descending trend.
Table 45 Annual yields of production per zone

Annual yields of production per zone (ton/ha/y)
Product Zones 2004 2005 2006 2007 2008
East 19,56 18,44 19,29 16,33 14,76
North 21,44 20,73 19,48 17,05 15,15
FFB of palm oil Central 20,42 20,85 21,71 22,4 23,49
West 19,47 19,07 19,36 15,45 12,98
Average 20,28 19,79 19,41 17,94 16,96
Source: Fedepalma 2006; Fedepalma 2009
Below is shown palm oil production per cultivated area.

Figure 45 Palm productivity in the study locations
6.3.3.5 System characteristics
The next chart presents employed inputs and generated emissions for palm oil crops.
In the next sections are described individual flows.
220
Figure 46 Chart on palm oil inventory process
6.3.3.6 Raw materials and auxiliary materials
6.3.3.6.1 Mineral fertilizers
Here are presented entries of fertilizers to the system per cultivated area.
Furthermore, it shows the level of the total Nitrogen, as well as P2O5, MgO, K2O and B2O3.
The amount and the type of fertilizer applied depends on local conditions and on the
farmers’ budget.
221
Table 46 Inputs of mineral fertilizers for the different palm oil plantation zones
Inputs of mineral fertilizers for the different palm oil plantation zones (kg/ha/y)
Mineral fertilizer E001 E002 E003 N001 N002 N003 N004 C001 C002 C003
Abotec - - - 319,4 319,4 - - - - -
Ammonium nitrate 73,3 51,7 - - - - - - - -
phosphate, as P2O5
Borax 11,5 8,1 - 14,6 14,6 2,4 39,4 - 18,5 42,9
Boron trioxide - - 11,5 - - - - 13,7 - -
DAP, as N - - - 2,2 2,2 - 0,1 20,9 - -
DAp, as P2O5 - - 39,8 5,6 5,6 - - 53,4 - -
Dolomite 228,7 161,4 134,1 - - - - - - -
- - - - - 170,8 - - - -
Fortaleza (Abomicol)
Granufos 40 - - - - - - - - 22,1 -
Hydran - - - - - 393 - - - -
KCl - - - 141 141 - - 422,3 - 429
Kieserita - - - 62,1 62,1 - 199,8 - - -
Mags - - - - - - - - - 286
MAP - - - - - 19,5 97,2 - - -
Magnesium sulfate - - - - - 46,6 - - - -
Nitromag - - - 22,6 22,6 - - - - -
Nitrosam - - - 174,6 174,6 - - - - -
- - - - - - - - - 286
Nutritional phosphorous
Nutrimon - - - - - - - - 494,4 572
Some other N - - - - - - 0,4 - 16,8 -
compounds
Potassium chloride 322,8 227,8 262,3 - - 106,2 - - 106,9 -
potassium nitrate - - - - - - 1,4 - - -
potassium sulphate - - - 105 105 - 696,1 - - -
SAM - - - - - 52,5 473,9 592,3 - 286
Sulfomag - - - 34,1 34,1 - - - - -
Sulphur - - - - - - 1,2 - - -
Tripel 18 - - - - - - 0,7 - - -
Urea 181,3 128 35 32 32 - 0,2 - - -
Zinc sulphate - - - - - - - - - 441,9
Summary
Total N 83,4 58,9 16,1 118,4 118,4 104,5 107,6 142,3 81 133
Total P2O5 73,3 51,7 39,8 25,3 25,3 32,3 48,6 53,4 38,5 111,5
Total K2O 193,7 136,7 157,4 219,9 219,9 123,3 354,7 253,4 177,8 460,5
Total MgO 50,3 35,5 29,5 35,5 35,5 93,1 48 - 29,7 71,5
Total B2O3 5,5 3,9 11,5 7,3 7,3 1,1 18,9 13,7 10,1 22
222
6.3.3.6.2 Organic fertilizers
It is a customary practice to use the bunch’s cob-like waste (the remaining fraction of
the bunch once all the fruit has been removed) in order to close the nutrients cycle and
improve soil structure. The composition of this bunch’s cob-like waste is presented here.
Table 47 Nutrients composition in palm oil fruit residues in both wet and dry weights
Nutrients composition in "tusa" in both wet and dry
weights
N P2O5 K2O MgO

Dry weight 0,54% 0,14% 2,77% 0,32%
Wet weight 0,28% 0,07% 1,41% 0,16%
Source: (Heriansyah, 2008)
The use (application) of the bunch’s cob-like waste is not uniform, given that those
companies that rely on extraction plants have a more frequent use that those that act
independently. Furthermore, in some cases composts comes back to palm plantation
fields instead of being sold to third parties. The following table has a summary of all
organic fertilizer entries. The amount of bunch’s cob-like waste in most cases depend of
the distance between plantation and extraction plants, therefore the closer it is the
location of the plantation the more intensive is the application.
Table 48 Fertilizers inputs in kg/ha/y for different cultivation areas

Fertilizer inputs in kg/ha/year for different cultivation areas
Organic
E001 E002 E003 N001 N002 N003 N004 C001 C002 C003
fertilizers
Tusa 127.660 - - 8.600 1.430 - - 11.120 9.016 -
Compost - - - - - 3.848 - - - -
223
6.3.3.6.3 Pesticides
In order to control fungus, herbs, insects and plagues some agrochemicals are
applied. Appendix 12 has a summary of these chemicals applied in different cultivation
zones.
6.3.3.7 Transport and machinery
The following section describes transport of entry materials (fertilizers) and employed
machinery for irrigation purposes and harvesting activities.
Irrigation: During dry periods, palm oil plantations are irrigated by use of underground
sources and surface waters. In such tasks water pumps are used and they are powered by
using diesel fuel or electricity.
Fertilizers and pesticides: The main fertilizer in palm crops is the bunch’s cob-like
waste, which is transported from the extraction plant to the plantation using trucks.
Afterwards workers distribute these agricultural inputs from chemical and organic nature.
Herbs and weeds elimination: In general, the growth of other varieties of plants near
the palm oil is permitted, however they are controlled through periodic cuts or via
herbicide application (R. H. V. Corley & PBH Tinker, 2007)
Harvesting: fresh fruit bunches are collected using a long knife. After FFB’s are cut
from the palm tree, fruits are piled up in such a way that they can be loaded efficiently.
Figure 47 From collecting task up to loading in trucks (palm oil)
Depending on transportation distances, FFB’s are moved around mechanically, or by

use of some beast of burden (in case the distance does not exceed 5 km) to the
extraction plant.
Figure 48 Transportation methods (palm oil)
224
This report only considered the use of vehicles for transportation purposes and
animals were excluded. Average distance of transportation using either truck or tractor
is between 19km and 2.6km respectively. The inventory of this task was based on these
values, due to the fact that total fuel consumption is known for the entire crop (including
all the related activities) (see table below). This path was chosen instead of breaking the
assessment between different sub-tasks or individual activities.
Table 49 Fuel consumption of the different palm oil plantation areas
Fuel consumption of the different palm oil plantation areas (ton.km/ kg FFB)
Vehicle E001 E002 E003 N001 N002 N003 N004 C001 C002 C003
9.10E-03
1.30E-02
5.50E-03
4.60E-03
4.60E-03
3.40E-03
3.70E-03
3.50E-03
1.40E-03
8.70E-04
Transport,
Tractor and
trailer / tkm/CH
9.40E-03
1.30E-02
5.70E-03
4.80E-03
4.80E-03
3.50E-03
3.80E-03
3.70E-03
1.40E-03
9.00E-04
Transport, Truck
> 16t. Average
fleet/ tkm/ RER
2.90E-04
4.10E-04
5.90E-04
4.10E-03
4.20E-03
1.00E-03
1.10E-03
1.10E-03
6.50E-04
4.70E-04
Transport,
passenger
vehicle,
gasoline, EURO
3/person
km/CH
6.3.3.8 Land use change (LUC)
In accordance with several questionnaires and the Annual statistic report

(Fedepalma, 2009), LUC in the year 2000 in the eastern region was 48% of pasture lands,
12% dedicated to rice cultivation and a 40% there were existing palm plantations. In the
225
northern and central regions, 61% of palm crops were established in former pasture
lands, while in 39% were old palm plantations.
Those values that have been collected on-site are coherent with values extracted
from the literature presented in figure 30, which summarized the work of Picon (Picon,
2008). The figure indicates that most land in where palm crops were established
matched with pasture lands or savannah or agricultural land of small size.
Figure 49 Transformation of land due to palm plantations (2000-2008)
Other zones
3%
Natural forest
Agriculture
1%
10%
Natural grazing
land and Grazing land
savannah 57%
29%
Source: (Picon, 2008)

Direct carbon emissions caused by LUC are calculated based on the methodology
from Level 1 of IPCC. Values of carbon reserves were also taken from the literature and
calculations are presented below:
226
Table 50LUC Parameters for different palm oil plantations
LUC Parameters for different palm oil plantations
IPCC LUC E001 E002 E003 N001 N002 N003 N004 C001 C002 C003
AGB 3 3 3,75 2,88 2,88 2,88 2,88 3,78 1,27 3,78
Pasto
BGB 1,13 1,13 1,41 0,81 0,81 0,81 0,81 1,42 0,48 1,42
AGB 17,42 17,42 17,42 17,08 17,08 17,08 17,08 17,22 17,22 17,22
Palm
BGB 5,34 5,34 5,34 5,24 5,24 5,24 5,24 5,28 5,28 5,28
AGB 0,23 0,23 - - - - - - 0,76 -
Rice
BGB 0,03 0,03 - - - - - - 0,09 -
Reservas de carbono en el 50 50 50 30 30 30 30 20 20 20
suelo (natural)
Facto de uso
del suelo 1 1 1 1 1 1 1 1 1 1
(FLU)
Crop Factor de
parameters manejo 1,15 1,15 1,15 1,15 1,15 1,15 1,15 1,15 1,15 1,15
(FMG)
Factor de 1 1 1 1 1 1 1 1 1 1
entrada(FI)
AGB 20,65 20,65 21,17 19,96 19,96 19,96 19,96 21 19,25 21
BGB 6,5 6,5 6,75 6,05 6,05 6,05 6,05 6,7 5,85 6,7
Before
SOC 50 50 50 30 30 30 30 20 20 20
TOT 77,14 77,14 77,92 56,01 56,01 56,01 56,01 47,7 45,1 47,7
AGB 44 44 44 44 44 44 44 44 44 44
BGB 13,5 13,5 13,5 13,5 13,5 13,5 13,5 13,5 13,5 13,5
After (palm)
SOC 57,5 57,5 57,5 34,5 34,5 34,5 34,5 23 23 23
TOT 115 115 115 92 92 92 92 80,5 80,5 80,5
t C/ha 37,86 37,86 37,08 35,99 35,99 35,99 35,99 32,8 35,4 32,8
Years 20 20 20 20 20 20 20 20 20 20
Difference kg C/ kg RFF 0,1 0,14 0,15 0,08 0,12 0,06 0,07 0,06 0,07 0,06
kg CO2/kg 0,35 0,5 0,54 0,31 0,43 0,24 0,26 0,23 0,25 0,23
RFF
Based on CUE data field and By-default values given by IPCC
Furthermore, the indirect effects of the LUC were taken into account in the
sensibility analysis.
6.3.3.9 Carbon absorption and energy from biomass
Absorption of carbon dioxide is calculated from the carbon content of FFB’s (1.14 kg
of CO2 per kg of FFB) (Jungbluth et al., 2007).
227
6.3.3.10 Emission to the atmosphere
In the following table are noted emissions to the atmosphere caused by fertilization.
Emissions of ammonia were calculated through the Agrammon emissions factor
(reference SHL 2010). In the case of urea, emissions of NH3 are close to 15% out of the
total nitrogen applied and the model forecasts that some other mineral fertilizers emit
only a 2% of total nitrogen. In is estimated that 80% of total ammonia nitrogen is emitted
as NH3. Emissions of Nh2 and NOx were modeled by employing emission factors from
IPCC (Solomon et al., 2007)
Table 51 Emissions to the atmosphere due to fertilizer application
Emissions to the atmosphere due to fertilizer application (kg/kg of FFB)
Emissions to the
E001 E002 E003 N001 N002 N003 N004 C001 C002 C003
atmosphere
6,34E-04
6,31E-04
1,91E-04
2,00E-04
2,80E-04
1,09E-04
8,42E-05
1,07E-04
6,30E-05
1,00E-04
NH3-N
6,97E-04
9,55E-05
3,21E-05
1,41E-04
1,61E-04
6,74E-05
7,29E-05
1,34E-04
8,58E-05
8,74E-05
N2O
1,46E-04
2,00E-05
6,75E-06
2,96E-05
3,39E-05
1,42E-05
1,53E-05
2,80E-05
1,80E-05
1,84E-05
NOx
6.3.3.11 Water spillage
Phosphorous dumping and nitrates to underground and surface waters were

calculated used the same method that was suggested by the on-line tool SQCB16 (Faist
Emmenegger et al., 2009).
228
Table 52 Water dumping by use of fertilizers
Water dumping by use of fertilizers
N001
N002
N003
N004
C001
C002
C003
E001
E002
E003
Water dumping unit
4.79E-03
7.97E-03
3.62E-03
5.05E-03
1.03E-02
2.54E-03
2.29E-03
3.24E-03
8.86E-04
2.85E-03
kg NO3/
kg FFB
Nitrate
4.55E-05
5.57E-04
1.16E-03
5.10E-04
9.41E-04
6.46E-04
8.31E-04
6.37E-04
7.52E-04
8.16E-04
Phosphorous to kg P / kg
superficial FFB
water
3.22E-05
2.90E-04
5.79E-04
4.83E-04
8.89E-04
6.52E-04
8.25E-04
9.37E-04
1.07E-03
1.35E-03
Phosphate to
kg P / kg
superficial
FFB
water
6.3.4 Palm oil extraction and production of biodiesel
In Colombia the installed capacity for processing (crushing) of FFB’s during the year
2009 was 1,109 tons per hour. From these FFB’s is possible to extract approximately
232 tons of crude oil per hour. During the last years the proportion of palm oil that is
processed locally for biodiesel production purposes has gained a growth trend.
Nowadays, the installed capacity of the biodiesel plants is 486,000 tons per year.
229
Table 53 Biodiesel plants and installed capacity
Biodiesel plants and installed capacity
Capacity Beginning of
Company Region
(thou l/d) operations
Oleoflores * Codazzi, Cesar 50 June 2007
Odin energy Santa Marta, Magdalena 36 March 2008
Biocombustibles del Caribe * Santa Marta, Magdalena 100 February 2009
Bio D * Facatitiva, Cundinamarca 100 April 2009
Aceites Manuelita * San Carlos de Guaroa, Meta 100 June 2009
Ecodiesel Barrancabermeja 100 June 2009
Total 486
Those companies labeled with a star (*) took part in the study
Source: MADR 2011
Processing data for this study comes from 4 companies that were operating in 2009:
Oleoflores, Biocombustibles Sostenibles del Caribe, Aceites Manuelita, and BioD, which
represent 65% of the total production of Colombia (this calculation shows the installed
capacity and not necessarily the actual level of processed material). The average is
calculated by weighting the participation in the process. Weighting factors are
calculated in accordance to the real production in 2009 for palm oil extraction, refinery
and transesterification plants:
Table 54 Average weight of the different palm oil producing companies
Average weight of the different palm oil producing companies
Company A B C D E
Palm oil extraction
Annual production (ton) 146500 114600 274380 273430 60480
Weighting Factor 19% 21% 15% 36% 8%
Palm oil refinery
Annual production (ton) 82500 45676 102595 73888 NA
Weighting Factor 27% 15% 34% 24% NA
Biodiesel plant
Annual production (ton) 50260 45251 45000 72753 NA
Weighting Factor 24% 21% 21% 34% NA
Source: CUE based on data field and Cenipalma
6.3.4.2 Description of the system
230
The whole process of producing biodiesel can be broken down into the following
steps:
 Palm oil extraction (including participation of boilers and turbines)
 Oil refinery
 Biodiesel plant
 Residual water pool
 Glycerol purification
The following chart presents a general vision on the different processes and the
corresponding flows linked to biofuel production by using FFB´s of palm oil.
Figure 50 Biodiesel production process
This chart depicts the process with some particularities:

1. it exhibits a representative scheme for the palm oil industry in Colombia in 2009 and
2. it represents an optimized system with several improvements that can be
implemented in the near future.
All these steps will be described in the following sections.
231
The average biofuel production inventory in Colombia was calculated in two stages.
Firstly, all inputs and outputs of oil extraction plants and biodiesel production plants per
every 100 tons of FFB’s were calculated. Due to the fact that FFB’s processing is an activity
with multiple outputs, the share on the environment of every one of these impacts must
be distributed or analyzed individually (further down, the allocation factor will be
explained). In the second stage the impact of producing 1 kg of palm oil-based biodiesel
is calculated.
6.3.4.3 Palm oil extraction
6.3.4.3.1 Characterization of the system
The figure below shows a general schematic process. Meanwhile, the table in
appendix 13 describes those processes that are included in more detail.
Figure 51 System characterization for palm oil extraction
6.3.4.3.2 Entry of material and energy
The table below shows the entry of material and energy per every 100 kg of palm for
the current (2009) and optimized scenarios. The optimized scenario used those values
232
that come from the extraction plant “Palmera de la Costa” due to the efficient
performance that it exhibits in both boiler and turbine.
Table 55 Inputs and energy requirements

Inputs and energy requirements per 100 tons of FFB
Entry Units Average SD Optimized
FFB ton 100 - 100
Water ton 109,84 5,17 109,84
Electricity auto-generated kWh 740,12 1165,26 2460
Electricity from the grid kWh 1358,11 820,33 57,24
Diesel electricity kWh 19,08 21,15 28
Steam ton 43,35 14,9 48
CENIPALMA and Núcleo de estudios de Sistemas Térmicos -NEST- (Thermal Systems

Core Studies) calculations present a steam consumption in the extraction process of 550
kg/t of FFB’s (Yáñez, Castillo, & Silva, 2011). This value in slightly higher to the result of
this study (434 kg/t FFB), which is quite valid due to a higher efficiency. Nevertheless,
Wood et.al. found steam consumption of 440 kg/t FFB’s (Wood & Corley, 1991). Those
values provided by Wood et. al. in terms of electricity (23kWh/t FFB) are coherent with
the results obtained by this study (23kWh/t FFB).
6.3.4.3.3 Products, by-products and residuals
The table below shows the outputs of the extraction process per every 100 t of
FFB’s. The conversion efficiency level is assumed equal in both scenarios.
Table 56 Outputs from oil extraction of 100 tons of FFB (ton)
Outputs from oil extraction of 100 tons of FFB (ton)
Average Optimized
Output SD
scenario Scenario
Palm crude oil 21,38 0,79 21,38
Cob-like product 21,34 1,81 21,34
Kernel palm oil 2,00 0,70 2,00
Kernel palm flour 2,86 0,61 2,86
Residual water 97,17 6,44 97,17
Fiber 13,16 0,45 13,16
Nuts shell 7,90 1,16 7,90
233
6.3.4.3.4 Energy production
The energy required for palm oil extraction is generated in the system of boilers and
turbines. By-products of the extraction process, such as fibers and shells, are employed
as fuel. Nevertheless, in some cases coal and electricity from the grid are employed as
well, and in some others, the employment of diesel engines can be a viable alternative
too. The next table summarizes the composition of these entry energy carriers.
Table 57 Properties of the FFB, fiber and shells
Properties of the FFB, fiber and shells (% indicated
otherwise)
Parameter RFF Shells Fiber
Inferior calorific power 6,03 12,57 8,98
(MJ/kg)
Humidity 24,24 6,16 28,76
C 54,3 51,8 58,9
Humidity 18,7 25,1 20,15
S 0,22 0,3 0,24
N 3,8 5,15 4,21
O 11,02 12,35 8,62
Ash content 8,93 4,96 5,55
Source: Ecoinvent
Processing 100 tons of FFB’s draws close to 13 tons of fiber and 8 tons of shell, which
as was just mentioned, are used in the boiler. It is assumed that these materials are used
for steam production.
The capacity of an average boiler in a regular extraction process is 20 tons of steam
per hour. The steam created has an average pressure between 220 and 290 psi, and a
temperature between 160 and 190 °C. Therefore, steam has a specific internal energy of
717 kJ/kg. For this study 2 boiler systems were taken into consideration:
1) average boiler,
2) an optimized boiler and pipeline system (from “Palmera de la Costa”).
Emissions are calculated on the process suggested by Ecoinvent, noted as “Cogen unit
6400 kWth, wood combustion”. The same methodology as described before was
employed. There are presented emissions of fiber and shells, assessed in MJ but also per
every 100 tons of FFB’s in Appendix 14.
234
6.3.4.3.5 Infrastructure and machinery
The infrastructure for the palm oil extraction process, and for the boiler, was
assumed, based on data from Ecoinvent. Values here are calculated for the processing of
100 kg of FFB and depend on the lifespan of the installed infrastructure and the
processing capacity of the facility.
Table 58 Process Infrastructure of the Palm oil mill plant

Process Infrastructure of the Palm oil mill plant
Process Amount Ecoinvent reference
Oil Extraction 1.00E-04 Oil extractor / CH
Cogeneration unit 6400 kWth, burning of
8.67E-05
firewood, construction / CH
Boiler Cogeneration unit 6400 kWth, burning of
3.47E-04 firewood, common components for heat +
electricity / CH
Cogeneration unit 6400 kWth, burning of

Turbine 3.47E-04
firewood, components for electricity only / CH
6.3.4.3.6 Transport
Transportation of FFB’s from the crop field to the extraction plant is already
considered in the cultivation stage. Transportation of machinery and equipment is
embedded within the set of data for infrastructure.
6.3.4.4 Refinery and biodiesel plant
6.3.4.4.1 Description of the system
The following figure presents a schematic summary of an average biodiesel plant in

Colombia. Processing includes crude oil refining, transesterification, and biodiesel
purification.
235
Figure 52 System characterization for palm oil refining process
Source: (Manuelita website, 2012)
The following table presents a detailed description for each step of the process.
Table 59 Processes description of palm oil refining and biodiesel processing

Processes description of palm oil refining and biodiesel processing
Process Description
Crude oil is filtered, bleached and deodorized
(refined, bleached and deodorized palm oil, or
1. Refinery
RBD) by employing citric acid and bleaching
earth.
Refined oil might be employed for biodiesel
production. In the transeterification process,
2. Diesel production esters are transformed by employing methanol
and a catalyst with the aim of producing
biodiesel and glycerol as a by-product.
Glycerol can be used crude or refined up to a

specified technical standard, regarding the
3. Refined Glycerol production intended market. For its use in the cosmetic or
pharmaceutical industries, it must be refined
until USP level.
236
Source: Fedepalma (2009)
6.3.4.4.2 Raw materials and energy demand
The following two tables present entry materials for biodiesel refining and
production processes per ton of palm oil-based biodiesel.
Table 60 Inputs and energy requirements of a palm oil refinery
Inputs and energy requirements of a palm oil
refinery to produce 1 ton of biodiesel
Average and
Input Unit optimized
scenarios
Crude palm oil ton 1.04
Citric kg 0.77
Bleaching earth kg 5.01
NaOH kg 0.34
Electricity from the
grid kWh 14.09
Water kg 179.24
Steam kg 477.27
Table 61 Inputs and energy requirements for the biodiesel plant

Inputs and energy requirements for the biodiesel plant needed
to produce 1 ton of biodiesel
Average and Optimized
Input Unit
scenarios
Refined oil ton 1,0
Methanol kg 108,65
Sodium metoxide kg 18,15
Acetic acid kg 0,63
Citric acid kg 0,68
Sulphur acid kg 0,18
Chlohydric acid kg 7,69
Sodium hydroxide kg 0,48
N2 gas m3 2,23
Fatty acids kg 11,92
Electricity from the
grid kWh 28,18
Steam kg 361,42
237
6.3.4.4.3 Production process and by-products
The next two tables present the outputs from the biodiesel refining and production
processes per ton of palm oil-based biodiesel. The resulting products of the refining
process (refined oil and fatty acids) are used in the biodiesel process, while residual
waters and bleaching earth are treated and disposed respectively.
Table 62 Outputs from the refining oil plant per 1 ton of oil
Outputs from the refining oil plant per 1 ton of oil (kg)
Average and
Output SD
optimized scenarios
Refined oil 1003.47 24.52
Bleaching earth 6.85 0.83
Fatty acids 35.87 3.52
Residual waters 146.99 104.39
Biodiesel plant does not only produce biodiesel, but also raw glycerol and other by-
products, such as soaps.
Table 63 Outputs from the transesterification process per 1 ton of palm oil biodiesel
Outputs from the transesterification process per 1 ton of palm oil
biodiesel
Average and Optimized
Output SD
scenarios
Biodiesel 1000 0
Output 137.4 40.3
Soap 50.8 47.4
Residual water 76.2 66.8
Sediment 1.3 0.7
Methanol loss 0.4 0.7
6.3.4.4.4 Energy generation
The steam generated in the process of transesterification has an average pressure

between 1000 to 1500 kPa and an average temperature of 300 °C. Energy consumption
is close to 900 MJ per ton of biodiesel. In this document it is assumed that the steam for
transesterification and refining processes comes from coal. In this sense, and with the
purpose of calculating the optimization potential, it is considered that biofuel production
uses steam that comes from agricultural organic wastes (fibers and shells).
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6.3.4.4.5 Infrastructure and machinery
Infrastructure for the refining and transesterification process data were taken from
the Ecoinvent database under the name of “vegetable oil esterification plant”. Having an
expected lifespan of 50 years and the given installed capacity, it used 9E-07 pieces per
every kg of biodiesel.
6.3.4.4.6 Transportation distances
Distance from the extraction plant to oil refining facilities is on average 68 km. Usually,
oil is transported by truck that have a capacity higher than 32 tons. Inputs employed in
the refining process are transported, in general, covering huge distances (by instance,
bleaching earth is imported), but in comparison with the transesterification process the
amount of chemical inputs employed per ton of palm oil-based biodiesel are very low.
Due to the fact that the refinery is placed next to the oil processing plant facilities, oil is
not transported in trucks.
Table 64 Transportation distances for palm oil refining and transesterification
Transportation distances for palm oil refining and transesterification (in
ton/km)
Transport Vehicle,
Product Cargo Ship
truck > 32 t, Euro 3
Crude palm oil 70.1 -
Refinery inputs 3.6 10
Refined oil - -
Inputs for transesterification 67.6 771.7
Total 141.3 781.7
6.3.4.5 Application of residuals on the ground
The cob-like waste, ashes from the boiler, and sometimes to a minor extent, a small
portion of fibers and shells are used for compost production, or applied directly to the
crop field. This study assumed direct application to the field, given that is the most
common practice.
239
6.3.4.6 General vision of the inventory and allocation process
The following section will present data referred to as ‘main flows of materials, prices
and energy values’. This collection of data, in turn, determines allocation factors.
6.3.4.6.1 Mass flow in the biodiesel value chain
Based on the data extracted from the production activity in the field, in Colombia, 20.3
tons of biodiesel per every 100 tons of FFB’s are produced. In addition, it is possible to
produce 2 tons of palm kernel oil, 2.9 of palm kernel cakes, and 2.9 of crude glycerol. To
end up, small amount of soaps come out from the biodiesel process.
The following chart only includes the main mass flows coming in and out of the system
related to palm oil processing. Therefore, some products that are used within (embedded
in) the system, such as shells and fibers, are not depicted in the figure. Furthermore, the
graphic representation reflects the generalized situation in Colombia, so specific diagrams
of visited plants might differ slightly from the information presented here. For instance,
just 2 factories have glycerin purification plants.
240
Figure 53 Mass flow for biodiesel production (per every 100 tons FFB)
6.3.4.6.2 Allocation factors
As is shown in the previous figure, biodiesel value chain consists of several sub-chains
with multiple exits, therefore by-products must be allocated. Allocation of the different
by-products will be implemented economically. Thus, it takes into account the average
price of 2009 and the first semester of 2010.
Allocation factors are calculated by multiplying the amount of an output with its price
(economic allocation) by the amount of its energy content (energy allocation), and
afterwards the value of all outputs are determined (in percentage) for both cases.
Economic allocation
In order to obtain the allocation factors mentioned in the table were used the
following economic values.
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Table 65 Economic Value of those by-products from Fresh fruit bunches
Economic Value of those by-products from FFB

Product Value Unit Description References
Average price Annual Statistics (Fedepalma
Palm kernel oil 1878 COP/kg
from 2007 to 2009 2009)
Average price Annual Statistics (Fedepalma
Palm kernel cake 266 COP/kg
from 2007 to 2009 2009)
Average price
Biodiesel 2463 COP/kg MinMinas
from 2007 to 2009
Average price
Crude glycerol 419 COP/kg Website icispricing
from 2007 to 2009
Based on market
international
Purified glycerol 2063 COP/kg Website icispricing
prices from 2007
to 2009
Personal communication with
Soap 150 COP/kg 2011
BioSc
Personal communication with
Cob-like residual 152 COP/kg 2011
Cenipalma
Energy allocation
The following data is used for the sensibility analysis of results, when the energy
allocation is used:
Table 66 Energy Value of those by-products from Fresh Fruit Bunches
Energy Value of those by-products from FFB (MJ/kg)
Product Value Notes References
Palm kernel oil 37 Personal communication with Cenipalma
Palm kernel cake 19.1 (O'mara, Mulligan et al 1999)
Biodiesel 37.2 Ecoinvent
The highest value of crude
Crude glycerol 25.3 glycerol it is explained due to
the presence of methanol and www.esru.strath.ac.uk
Purified glycerol 19 biodiesel (trazas) within the
sample
Soap 37
Cob-like residual 16.8 CUE report
6.3.5 Transport to the service station
The set of data includes fuel transportation from processing plant to service station in
Bogotá, taking into consideration actual distances and type of vehicles. Data was
collected by employing standard distance tables and interviews with experts.
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6.3.5.1 Transport of sugarcane-based ethanol to service station in Bogotá
Ethanol is mixed in an ethanol plant to a level of 2% of regular gasoline and the

remaining portion of ethanol (i.e. E98). Afterwards it is transported to the blending
facilities in Bogotá (Puente Aranda). Average distance of transportation is 490km and for
this purpose tank trucks are used (the reference in Ecoinvent is: Transport, truck with
capacity superior to 16 tons, average fleet / RER U).
Furthermore, fuel distribution to service stations in Bogotá’s downtown. Therefore,
it also used as a reference the standard process from Ecoinvent “regional distribution, oil
products / RER / IU”. It also considered the operation of both storage tanks and the gas
station itself. It also includes evaporation emissions and effluents treatment.
6.3.5.2 Transportation of palm oil-based biodiesel to Bogotá
Biodiesel is normally transported in a tank truck. Moving distances from a specific

biodiesel plant to the blending station in Bogota (Puente Aranda) are presented as follow:
• Biocombustibles Sostenibles del Caribe (Santa Marta): 960 km • Oleoflores Codazzi,
Cesar: 814 km • BioD, Facacativá: 46 km • Aceites Manuelita, San Carlos de Guaroa 171
km.
6.3.5.3 Transportation of sugarcane-based ethanol to California
Ethanol can be transported from Buenaventura, Colombia to Los Angeles, California

(USA). In the first place, different ethanol plants require an average transportation
distance by truck close to 129 km all the way to the Buenaventura port. Transportation
distance from Buenaventura port to Los Angeles is 5669km. Transportation distances from
the maritime port to the final gas station was calculated to be approximately 100km.
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Figure 54 Distance from Buenaventura port to Los Angeles
Source (www.searates.com)
6.3.6 Transport of palm oil Biodiesel to California
Palm oil-based biodiesel must be transported from Santa Marta, Colombia to Los
Angeles (6176 km). The first portion of the journey must be carried by road from the
production plant in Codazzi, Santa Marta, and San Carlos de Guaroa.
Figure 55 Distance from Santa Marta to Los Angeles
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6.3.7 Use of fuels in vehicles
6.3.7.1 Selection of Vehicles
In order to establish a comparison of use of different biofuels reference vehicles are

required. Obviously it is not possible to compare directly a km of operation of a light and
efficient vehicle (just like a compact car in a city) with a km of operation of a heavy and
inefficient vehicle (like a light truck, or pickup truck) because the amount of required fuel
will be very dissimilar in absolute terms. However, if relative environmental impacts are
compared between fuels and biofuels in the same vehicle, a comparison of results is
absolutely valid.
The report presented by consortium proposed to choose a reference standard vehicle
according to Ecoinvent guidance (Hischier et al., 2010) for common use in Colombia and
other countries. Data of this inventory rest on information provided for a Volkswagen
Golf, which is a vehicle that runs on Colombian roads but is not a very common one. For
this reason, in this study the most representative vehicle in Colombia was chosen, a
Renault Logan.
6.3.7.2 Fuel use and consumption of a Renault Logan
6.3.7.2.1 System description
Renault Logan was selected as a representative vehicle for the Colombian market.
Renault Logan is a medium-class vehicle designed for 5 passengers (including driver) and
with a boot capacity of 510 liters (See appendix 15).
Renault Logan is manufactured in the plant of SOFASA in Medellín / Envigado whereas
single pieces are imported from the Renault/Dacia Plant in Rumania.
In Colombia, the Renault Logan has been sold, so far, with gasoline engines (1.4 L 75
HP and 1.6 L 90 HP). Nevertheless, the same model in some other countries is sold with
diesel based engines. Under given circumstances these engines comply with emission
class Euro4. In this document, it is supposed that energy consumption for Renault Logan
is:
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Gasoline Model : 1.6L 90HP: 7.56 l/100km under a regular blend in the “real world” it
reaches 50 km/gal
Diesel Model: 1.5 cDi 85HP: 5.29 l/100km under a regular blend in the “real world” it
reaches 72 km/gal
The notation of “real world” makes reference to the event that actual consumptions
are, in fact, higher than the ones suggested by the automobile manufacturers. These
specifications are based on assessments on standard conditions in the test lab. In
comparison with some other vehicles, Renault Logan is relatively light weight, for both the
gasoline version (980 kg) and the diesel one (1065 kg).
Inventory is based on the composition of Renault Logan with both gasoline and diesel
engines. The inventory of data was based on the technic specification provided by Renault
on its website (www.renault.com) and data from the inventory from Ecoinvent when it
was needed to complete the data set (for instance for emission profiles).
Chassis of the gasoline and diesel models are identical, whereas transmission systems
are modeled individually.
The lifespan of the studied vehicles was adapted from 150.000 km to 300.000 km with
the idea of reflecting more accurately Colombian conditions.
Emissions were modeled in accordance to the last version of Econinvent (v2.3), which
includes values for biofuels. The inventory of emissions was adapted in regards to the
energy consumption of the vehicles employed in this study.
6.3.7.2.2 Vehicle for international comparison
The chosen vehicle for comparison purposes with an international reference – was a
vehicle that runs in California based on fossil fuels – and was proposed by Ecoinvent
(Hischier et al., 2010). The set of data (Inventory for passenger cars /RER/I U’) is based on
the Volkswagen Golf 4 which is frequently used for international comparisons for LCA
studies, and therefore it allows a clear reference. In comparison with Renault Logan, this
vehicle is 100 kg heavier, and it exhibits a higher fuel consumption and a shorter lifespan
(150.000 km in USA and 300.000 km in Colombia).
Gasoline-based vehicle: Energy consumption and emission profile for gasoline-based
vehicle matches with the description given by Ecoinvent: “operation, passenger
automobile, gasoline, average fleet 2010 L/km/RER”.
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Fuel consumption is 0.060202 kg/km (8.03 L/100 km) in comparison with 0.0567
kg/km (7.56 L/100 km) for the gasoline based Renault Logan.
Diesel-based vehicle: Energy consumption and emission profile for the diesel-based
vehicle matches with the description given by Ecoinvent: “operation, passenger
automobile, diesel, average fleet 2010 L/km/RER”.
Fuel consumption is 0.055828 kg/km (6.65 L/100 km) in comparison with 0.0444
kg/km (5.29 L/100 km) for the diesel based Renault Logan.
Regardless of the created emissions per fuel consumption (CO2, CO), profiles of
emission of the vehicle in California and Colombia present similar performances.
Colombian vehicles create lower emissions (for instance NOx) because of the applied
standard, which obeys the EURO4 regulation.
6.3.8 Fossil fuels
Within this section is described the inventory of the life cycle of production and
transportation of fossil fuels and gasoline in both Colombia and California (USA).
Therefore, it models the chain value of actual blends in Colombia and California, taking
into account all the steps of the life cycle (figure below). In addition, modeled values for
fossil fuels in Colombia and California are contrasted and validated based on the values
presented in publications and opinions of experts.
Figure 56 Chart of the LCA for fossil fuels
Crude Crude Oil Oil

Oil Use
Exploration extraction Refining Distribution
6.3.8.1 Gasoline and Diesel production in Colombia
Specific references to fossil fuels in Colombia are gasoline and diesel (also known as
ACPM in the local market –Aceite Combustible para motor - Oil fuel for engines). For
GHG’s emissions those values provided by the in depth study undertook by Ecopetrol
247
(section 6.3.8.6) were used. However, for some other sort of environmental impacts there
is no inventory data, nor impact values. In such cases, they were adapted from the
available set of data provided by Ecoinvent for Colombia and they were used to calculate
some other environmental impacts different from global warming.
6.3.8.2 Crude oil extraction
Colombia is considered as a continuous but marginal oil exporter in the international

market, but still important in comparison with some other countries from the LAC region.
According to the International Energy Agency, Colombia can be considered as a net crude
oil exporter, and it manages a small amount of refined products (gasoline and diesel) (IEA,
2011)
Table 67 Fossil fuels production in Colombia
Fossil fuels production in Colombia (in 1000 tons)
Engine type
Item Crude oil
Gasoline Gas/Diesel
Production 273465 3164 4395
From other sources 0 0 0
Imports 401 1 285
Exports -11681 -363 0
Bunkers of international cargo ships 0 0 -367
Bunkers of international airplanes 0 0 0
Change in stocks 502 200 -109
Domestic supply 16567 3002 4204
Source: IEA (2007)
In 2009, national reserves reached a level of 1.9 billion barrels of oil. Average crude
oil production in 2009 was approximately 670,000 barrels per day and for some years
this trend has been growing gradually (EIA, 2009b). Evolution of crude reserves and their
corresponding production are shown in the following table.
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Table 68 Colombian crude reserves and oil production
Crude (Million barrels)

Year Annual
Reserves R/P
production
2000 1,972 251 7.9
2001 1,842 221 8.4
2002 1,632 211 7.7
2003 1,542 198 7.8
2004 1,478 193 7.7
2005 1,453 192 7.6
2006 1,510 193 7.8
2007 1,358 194 7.0
2008 1,668 215 7.8
2009 1,988 245 8.1
2010 2,058 287 7.2
2011 2,259 334 6.8
2012 2,377 346 6.9
Compiled by the Author. Data source ANH website
6.3.8.3 Crude oil extraction technology
Extraction of crude oil in Colombia is implemented onshore; whereas there is only one
oilfield in deep waters (offshore) that has been named “Chuchupa” which is located 15
km away from Rioacha heading northeast, and from which natural gas is extracted. In
general natural gas that comes from the oil crude extraction process is burned
The process described in Ecoinvent as “Crude oil, production/ RME U” was employed
for the Colombia conditions (Jungbluth et al., 2007).
6.3.8.4 Oil Refining
In Colombia near to 74% of crude oil is refined in the refining plant located in
Barrancabermeja, Santander. Refinery plants in Colombia operate at 95% of the installed
capacity (UPME, 2009). Recently Ecopetrol inaugurated a water treatment plant in the
Barrancabermeja’s refinery, with the purpose of producing diesel and gasoline of 50 and
300 ppm of sulphur correspondingly.
249
Figure 57 Loads to refinery and Barrancabermeja refining plant
Source: (Ecopetrol, 2009)

For the GHG’s, were considered the emission factors provided by Ecopetrol.
Nonetheless, some other environmental factor impacts are based on average data
provided by Ecoinvent about a standard refinery in Europe (“diesel, low sulphur, in the
refinery kg/RER U” and “gasoline, low sulphur, in the refinery kg/RER U ”) (Jungbluth et
al., 2007). It is guessed that transportation distances for crude oil from the extraction
fields to the refinery plant are close to 493 km, via pipelines (Ecopetrol, 2011)
6.3.8.5 Transportation to the service station
Diesel is transported through pipelines from the refinery all the way up to the blending
station in Puente Aranda in Bogotá. Transportation process from refinery is based on high
quality data provided by Ecopetrol, GHG’s emissions and the remaining emissions and
entries were based on the default information registered in Ecoinvent. In accordance with
Colombian conditions transportation distance to the service station was calculated to be
509.07 km (Ecopetrol, 2011). It is worth to note that the former is just a mere assumption
employed within the LCA study, which does not describe completely the transportation
process of those refined products given by Ecopetrol.
Ecopetrol continued its commitment of improving quality of available fuel, by
distributing diesel of low sulphur content. In 2009, content of sulphur for diesel fuel in
Bogota was less than 500 parts per million (ppm), thus is known as low sulphur diesel
250
(LSD). In the rest of the country, from January 2009, sulphur levels were reduced from
3000 ppm to less than 2500 ppm. The following information describes the process that
Ecopetrol inventory presented in 2008, in which it does not include water treatment plant.
The hydro-treatment plant started operations in 2010, and as a consequence sulphur
content dropped. Since 2008, official regulations on specifications for fuels changed (see
figure below). For instance, sulphur content in the first semester of 2008 was 4000 ppm,
while in the second semester of 2008 it drop down to 3000 ppm; but in contrast in
2010/2011 this item was 500 ppm of Sulpher, and in 2013 it is expected to be reduced to
50 ppm or less. Although, note that all big cities and massive transportation systems in
Colombia have been employing LSD since 2011.
Figure 58 Sulphur content for Diesel (Colombia)
Source: (Dickey, Shelton, Jasa, & Peterson, 1985)
6.3.8.6 Study presented by Ecopetrol on GHG’s emissions caused by

fossil fuels
In 2010, Ecopetrol undertook a LCA study on GHG’s emissions related to fossil fuel
(gasoline and diesel only) in Colombia. This study was carried out for fuels with local
specifications for the year 2008, presented below:
Table 69 Fuel specification regarding Ecopetrol study

Fuel specification regarding Ecopetrol study
Refined properties Sulphur (ppm) PCI (MJ/kg) Density (kg/m3)
Regular gasoline (average 2008) 610 45.14 742.2
Regular Diesel (average 2008) 2850 45.45 851.2
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Ecopetrol’s study quantifies GHG emissions such as carbon dioxide, methane and
nitrous oxide, for different stages of the life cycle. Emissions were calculated from values
assessed, and values that could not be assessed were calculated by using assessment
protocols for the inventory of GHG in the industry of petroleum and gas. Life cycle stages
can be broken down into:
 crude extraction,
 transportation to refining facilities,
 refining and fuel transportation to blending station (Puente Aranda, Bogotá),
 Note: fuel distribution to final retailer’s station and infrastructure (i.e. buildings and
machinery) are beyond the scope of this study.
The impact of fossil fuel production was calculated based on the methodology
proposed by the IPCC “for the global warming potential (GWP) for 100 years”. Results
show that regular gasoline in blending station exhibits a GWP corresponding to 10.3g of
CO2 equivalent per MJ and for diesel the assessment draws 10.5g of CO2 equivalent per
MJ. Furthermore, it shows that accumulated energy demand for diesel is 1.22 MJ per MJ
and for gasoline is 1.19 MJ per MJ. These values will be used as a reference below.
6.3.8.7 Gasoline and diesel production in California
The chain value for gasoline and diesel that are consumed in California is mainly
modeled based on the information from the Energy Commission of California (Sheridan,
2006). Refining capacity of oil and diesel exceed consumption levels, therefore it is
assumed that all diesel and gas employed in California is refined locally. Nevertheless,
due to present demand and reduced supply of local crude oil, more crude must be
imported.
252
Figure 59 Crude oil supply to Californian refineries
Source: (Sheridan, 2006)
The following section describes the source of crude petroleum and the involved
processes, thus the inventory is built it up.
Crude oil extraction
Close to 34% of the refined crude oil in California is extracted at national level, while
21% is imported from Alaska and 45% from other countries. Near to 7% of the national
crude oil of California is in underground oilfields (Department of Conservation, 2010). In
Alaska the situation is similar (Division of Oil & Gas, 2012). Crude imports come from
Middle East and Latin America.
Table 70 Crude oil composition from California
Crude oil composition from California (including transport and process assumptions from Ecoinvent)
Source of crude oil Share Extraction technology Transport (km) Ecoinvent reference
California 34%
California 32% Inland production 200 Crude oil, Inland production / RME S
California 2% Offshore production 200 Crude oil, Offshore production / GB U
Alaska 21%
Alaska 16% Inland production 3032 Crude oil, Inland production / RME S
Alaska 5% Offshore production 3032 Crude oil, Offshore production / GB U
Overseas 45%
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Saudi Arabia 11% Inland production 18357 Crude oil, Inland production / RME U
Iraq 8% Inland production 21417 Crude oil, Inland production / RME U
Ecuador 8% Inland production 5978 Crude oil, Inland production / CO U
Other 18% 6103 Crude oil, Inland production / RME U
Source: CUE
Refining
Due to the lack of data on specific process of oil refining in USA, average data from an
average refining facility in Europe was taken, as a way of approximation from the database
of Ecoinvent (“low sulphur diesel, to the refinery kg / RER U” and “low sulphur gasoline,
to the refinery kg / RER U” ) (Jungbluth et al., 2007).
Transportation to the service station

Refineries in California are located in the San Francisco Bay area, Los Angeles zone and
Central Valley. Average distance was assumed to be 100 km.
6.3.9 Electricity production
Inventory of electricity at low, medium and high voltage in Colombia is calculated

based on the report published by the International Energy Agency (IEA 2008) and the
impact on the transmission. For electricity and transmission processes the reference of
Ecoinvent are taken as valid for the UCTE (Faist Emmenegger et al., 2009; Frischknecht et
al., 2007).
Table 71 Electricity matrix for Colombia
Electricity matrix for Colombia

Energy carrier GWh % Reference Ecoinvent
Coal 3045 5.4% Electricity, coal, energy plant / UCTE U
Liquid fuels 151 0.3% Electricity, liquid fuels, energy plant / UCTE U
Gas 5781 10.3% Electricity, natural gas, energy plant / UCTE U
Biomass 590 1.1% Electricity, bagasse, sugarcane, in refinery/ BR U
Hydro 46403 82.8% Electricity, hydropower plant / CH U
Wind 54 0.1% Electricity, wind power plant / RER U
Total 56024 -
IEA (2010)
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The values of electric energy emission in Colombia were adapted through the
inventory of Ecoinvent and are presented here.
Table 72 Emission factors for generation and transmission of electricity

Emission factors for generation and transmission of electricity used in this study
Category of impact Unit Medium voltage Low voltage High voltage Mix
IPCC GWP 100 years kg CO2 eq 0,166 0,188 0,162 0,158
The current impact of the mix of electricity in Colombia depends of the daily
generation in thermal generation plants and hydroelectric plants. Carbon emissions are
calculated based on the electric energy data published on a daily basis by XM Expertos
(XM expertos, 2010). Taking into account coal daily consumption, diesel and natural gas,
as well as transmission losses, emission factors fluctuate between 0.035 and 0.44 kWh.
On average, emission factors are between 0.13 and 0.18kg of CO2 equivalent per kWh,
which is accurate with the emission factors presented in the previous table.
6.4 Impacts Evaluation
As it was mentioned earlier, the GWP was evaluated, which is defined as the impact
of human emission in the heat radiation absorption from the atmosphere. This model is
known as Global Warming Potential (GWP), created by the IPCC in 1990, which turn
emission data of some gases, created during a life cycle studied in this document, to Kg of
CO2 equivalent, through characterization factors.
Likewise, the accumulated demand of energy, as is expressed by its name, represents
the addition of non-renewable sources and/or nuclear energy, and is expressed in thermal
units (MJ) (a mode detailed explanation can be found by (Frischknecht et al., 2007;
Jungbluth et al., 2007).
Midpoint indicators such as acidification eotriphication, ecotoxicity and particulate
matter are discussed in appendix 4
255
6.4.1 Fossil fuels
6.4.1.1 Global Warming potential
The figure below shows GHG emissions for fossil fuels in both Colombia and California,
in grams of CO2 equivalent per MJ of fuel from the oil-well to the tank. In order to produce
and use (only combustion) fossil fuels, it emits between 83 to 89g of CO2 equivalent. Most
of the emissions of GHG are caused during the combustion process (84% - 89%). Beyond
that, emissions are related with the refining process (7% - 12%) and crude oil exploration
and extraction (3% - 5%), while fuel transportation to the service station is negligible. In
general, diesel refining releases less GHG in comparison with gasoline refining (because
diesel required less energy).However, fossil diesel accounts for higher emissions of CO2
equivalent per MJ of fuel, during use.
Figure 60 GHG emissions for fossil fuels per MJ of fuel
Source: CUE
Results from the detailed study from Ecopetrol are similar to the ones presented here.
Environmental impact, slightly under the one reported by Ecopetrol, might be explained
by the fact that it did not include the infrastructure impact and the fact that modeled fuel
had with higher sulphur content.
The following table, summarizes compared results with different standards of GHG
emissions. In general terms, values reported by the norms are similar to the ones
256
reported here. Details can be explained by the different assumptions and process
considered in the individual standards.
Table 73 Comparison of CO2 emissions from fossil fuels from different studies
Comparison of CO2 emissions from fossil fuels from different studies
GHG's emissions (g CO2/ GHG's emissions (g CO2/
MJ fuel). Without MJ fuel). With
Country combustion combustion
Gasoline Diesel Gasoline Diesel
Colombia 13.43 8.73 86.39 83.5
Colombia (Ecopetrol data) 10.3 10.5 83.23 85.26
USA (California) - - 88.7 86.77
UK - - 85 86
USA (California) (CARB
- - 94.71 98.86
2009)
EU (EC 2008) - - 83.8 87.64
Given that diesel combustion is more efficient than gasoline (more km per MJ of fuel)
a comparison with scientific validation must take place in this case: Therefore, the figure
below presents GHG emission assessment related to all LCA (from well to wheel), taking
into account road infrastructure and vehicle manufacture. As was noted, a diesel fed
vehicle emits less CO2 per km.
Furthermore, Colombian fuels used to propel a Renault Logan, emit less GHG than a
standard automobile in California. There are several reasons for that, including:
1. the Renault Logan has a higher efficiency than an average car in California.
2. the lifespan of a vehicle in Colombia is nearly twice as much as it is in California,
therefore production and final disposal for vehicles in Colombia are relatively low in
comparison with the Californian standard.
3. associated emissions with fuel production are slightly above Colombian case.
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Figure 61 GHG emissions for fossil fuels per v.km
6.4.1.2 Cumulative energy demand
As it is shown in the figure below, production of 1 MJ of fossil fuel requires an entry of

1.2 to 1.5 MJ, depending on the mix of crude oil and the chosen transformation path
(technological treatment).
Figure 62 Cumulative non-renewable energy demand per MJ of fossil fuel
The previous figure includes the load of infrastructure per vehicle km. Once more, the
lifespan of the Colombian reference vehicle improves the energy balance from 2.8 to 3.6
MJ per vehicle km. for Colombian conditions and 4.3 to 4.7 MJ per vehicle km. in USA (see
figure below).
258
Figure 63 Cumulative non-renewable energy demand per v.km
6.4.2.1 Global warming potential
In a very broad sense, sugarcane-based ethanol production and use, emits less GHG
in comparison with regular fossil-based gasoline. Per vehicle km. it emits between 53g to
63g of CO2 equivalent in comparison with fossil fuel (226g of CO2 eq. per v.km). If E100
is employed it is possible to reduce to about 72% to 77% GHG emissions. Apart from
infrastructure impact (construction of roads and highways), cultivation stage contributes
a major proportion to GWP.
Figure 64 Global warming potential of sugarcane ethanol in CO2 eq v.km
The figure below reveals impacts of ethanol transportation to the service station in
Bogotá and they are shown in g per MJ. Each MJ of fuel (excluding infrastructure)
composes between 12g to 16g per MJ. The GHG emissions of the ethanol production are
superior to fossil fuels production, but the former creates a high contribution of gases
259
during combustion. Notwithstanding, if combustion is taken into the account the figure
65 appears again.
Figure 65 Global warming potential of sugarcane ethanol per MJ of fuel
Underneath is shown the performance of studied locations, and it is presented as kg

of CO2 equivalent per kg of harvested sugarcane. Predominant impacts are linked to
production and application of fertilizers, which are very energy-intensive activities,
creating a big burden in the agricultural stage. In addition energy consumed in irrigation
tasks creates significant impacts.
Figure 66 Global warming potential for sugar crop in CO2 eq per Kg of sugarcane
The impact is broken down into process (upper panel) and substance (lower panel).
Furthermore the minimum, maximum and weighted averages (in function of the area) are
compared with the data set from Ecoinvent for the Brazilian case.
GHG emissions associated to sugarcane processing (ethanol production) are caused
mainly due to ingenio’s activity (41%), transportation of sugarcane from plantation to
260
manufacturing plant (34%) and composting activities (16%). Composed of a volatile
impurity residual called flemaza, filtered mud and some other sources of organic material,
causes methane emissions, which as it has been told, have a great impact on global
warming. As it is shown in the figure below, environmental performance might be
improved lightly through much more efficient systems (boiler and turbine) in the
processing plant and if CO2 in liquid form is sold.
Figure 67 Global warming potential for sugar processing divided by process
Sensitivity analysis: Allocation factors

Below are presented the different methods of allocation of GHG’s emissions of
Colombian ethanol from sugarcane (economic allocation factor for ethanol is: 22% energy
allocation factor: 22%). Due to the fact that both economic and energy allocation factors
are similar, results are also similar. Therefore, even if current prices are used, results are
indifferent to the allocation method.
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Figure 68 Sensitivity analysis of the allocation method for ethanol
The figure above exhibits impacts on the economic and energy allocation for the
average national scenario and also for the optimized one in comparison with fossil fuels.
6.4.2.2 Accumulated energy demand
Accumulated energy demands of non-renewable energy for ethanol fuelled vehicles

is less than the one presented by those fed by fossil energy (with a factor between 7 and
11). Energy return, assessed as the amount of MJ as output per every MJ used as input
fluctuates between 6 and 8, depending on the plantation intensity and on the
productivity.
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Figure 69 CED of sugarcane ethanol in MJ of non-renewable energy per MJ of fuel
Per every driven kilometer a vehicle powered with ethanol consumes less than 3 MJ
of non-renewable energy, in comparison with regular gasoline (see figure below). A high
component (more than 50%) of the non-renewable used energy, to drive with ethanol is
directly linked with infrastructure.
Figure 70 CED of sugarcane ethanol in MJ of non-renewable energy per v.km
6.4.3 Palm oil biodiesel
In a very broad sense, it is possible to assert that production and use of diesel from
biological origin creates fewer emissions in comparison with its equivalent fossil
substitute. Per vehicle km there is an emission between 14g and 94g of CO2 equivalent in
comparison with fossil fuels (190g of CO2 equivalent per v.km.). If B100 is employed it is
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possible to reduce between 50% and 108% - on average 17% - of GHG emissions,
depending on the LUC.
Figure 71 GWP for palm oil biodiesel in CO2 eq per v.km
In the figure below the impact of biodiesel transported to the service station in Bogota
are shown, is shown in g of CO2 per MJ of fuel. Per MJ of fuel and excluding the
infrastructure, GHG emissions oscillate between 23 and 35 g of CO2 per MJ. GHG
generation in biodiesel production exceeds the one corresponding to fossil fuels, which in
fact emit most of the released CO2 in the combustion process. Nevertheless, if
combustion is taken into the account, results are comparable to those presented in the
figure above.
Figure 72 GWP for palm oil biodiesel by process in g of CO2 eq per MJ of fuel
Palm oil impact is dominated by direct positive effects in the LUC. Palm oil cultivation
in zones with relatively low carbon reserves (i.e. agricultural lands and grazing lands)
create an increase in the carbon reserves, therefore GHG emissions are avoided to some
extent (as is shown in the following figure). Impacts of palm oil cultivation in Colombia are
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generally fewer than those presented in Malaysia, because in this country, most
plantations are established in tropical forest.
Figure 73 GWP for palm oil biodiesel in kg CO2 eq per kg of Fresh Fruit Bunch
The above figure shows impact in the LUC (light color) and the impact of the plantation
(dark color), whereas the average is indicated with the black bar.
GHG emissions associated to palm oil processing (biodiesel production) are caused
mainly by residual water treatment (90%), due to high emissions of methane. As is shown
in the figure below, these impacts might be reduced 77% if the emitted biogas is captured
and burned (therefore is emitted CO2 instead of CH4). These alternatives have been
studied already by the palm oil agribusiness association, FEDEPALMA (Fedepalma, 2006b),
and they will be implemented within the next few years.
Figure 74 GWP for palm oil biodiesel divided by process
In the next figure, the total impact of the optimized scenario is compared with the
average scenario. The extent of the capture of methane emissions, through the treatment
of residual waters, reduces substantially the GHG emissions (from 17% to -7%).
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Figure 75 GWP for average and optimized scenarios in comparison with fossil fuels
Sensitivity analysis: allocation factor

Below, are presented different allocation methods of GHG emissions for the palm oil-
based Colombian biodiesel (economic allocation factor: 86%, energy allocation factor:
56%). In general biodiesel impacts are reduced if energy allocation factors are employed
instead of economic allocation factors (this situation is valid to either positive or negative
impacts). For the former situation, based on the average scenario, the effects of the
energy allocation method leads to a situation in which the reduction of the positive
impacts (in the agricultural stage) and reduces in the negative impacts (infrastructure,
processing, transport and operation) can be balanced between themselves, therefore
total impact remains as 17% of the impact of fossil fuels. For the optimized scenario, GHG
savings relative to palm crops are reduced significantly if energy application factors are
applied; thus GHG savings can be reduced in between 99% to 107% in comparison with
the fossil reference.
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Figure 76 Sensitivity analysis of the allocation method for palm oil biodiesel
The figure shows the impact based on both economic and energy allocation for the
two studied cases: average and optimized ones in comparison with fossil fuels.
6.4.3.2 Accumulated energy demand
Accumulated energy demand for diesel fuelled vehicles is less than the one presented
by those fed by regular diesel (with a factor between 7 and 11). Energy return, for the
biodiesel case, fluctuates between 4 and 7, depending on the plantation intensity and on
the productivity.
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Figure 77 CED for palm oil biodiesel in MJ of non-renewable energy per MJ of fuel
Per driven km, a diesel-fed vehicle requires less than 2 MJ of non-renewable energy in
comparison with fossil diesel, as is shown here. A high percentage (54% to 66%) of non-
renewable energy in the use of biodiesel is associated with infrastructure (road
construction, vehicles, maintenance and final disposal).
Figure 78 CED for palm oil biodiesel in MJ of non-renewable energy per v.km
6.4.4 Indirect land use changes (iLUC)
Those results that have been presented so far just take into account those direct land
use changes (LUC). Most lands that are being used or are planned to be used for
cultivation of feedstocks for biofuel production are currently occupied for other purposes
(for instance agricultural or grazing lands). Based on the assumption that the demand of
food products (from either agriculture or grazing activities) remains, the displaced
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products due to new palm oil plantations must be placed somewhere else. The loss of the
production area can be offset by either intensification processes or expansion of natural
areas. These indirect effects are rather complex and surrounded by a great deal of
uncertainty. So, considering only direct effects and putting aside the iLUC there can be
created what it is called here the “best possible case”. From this point onwards, this
document will consider the “worst possible scenario” of iLUC assuming the expansion of
natural systems with the purpose of illustrating the maximum potential.
The next figure, shows the potential iLUCs, for palm oil cultivation case, if crops are
held in grazing or agricultural lands. The mentioned displacement entails pressure on
natural lands (tropical forests, wet forests and bushes). Depending to what extent the
natural system is affected, the iLUC has a significant impact on the carbon reserves and
therefore on the GWP.
If the indirect displacement takes place in tropical or wet forests, the GWP of biofuels
is even higher than in comparison with fossil references. On the contrary, if the
displacement occurs in bushes or scrubland, the extent of impact will be less and the GHG
balance of biofuels will be positive in comparison with fossil fuels.
Figure 79 Potential effects of iLUC caused by palm crops in Colombia
A similar situation is presented for the case of sugarcane, as is illustrated in the figure
below. In this chart the iLUC of implementing sugarcane crops in general, the LUC of
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switching from sugar production to ethanol manufacture (LUC from sugarcane from
sugarcane), and the implementation of sugarcane crops in pasture lands and other natural
areas are compared.
Figure 80 Potential effects of iLUC caused by sugarcane crops in Colombia
In any case, a LUC of natural forests creates a natural impact even higher than the one
created by fossil fuels. As was mentioned formerly, a direct displacement to agricultural
or pasture lands might create an indirect pressure in natural areas. So, if feedstock for
biofuels production is cultivated on agricultural or grazing lands, displaced products
should be produced through intensification process or in scrublands. In Colombia there
is potential for maintaining intensive livestock farming programs, using, for instance,
forest grazing or silvopasture techniques.
The core of this sensitivity analysis of the iLUC is that not only direct effects, but also
indirect effects must be considered when a new crop is planned. With the rationale of
maintaining the land use change effects (either direct or indirect ones) in an acceptable
range, detailed studies are required on land requirements, land availability and LUC
planning mechanisms.
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6.4.5 Blending options and exports to California
6.4.5.1 Global Warming Potential
The next two figures show the global warming potential (GWP) for neat ethanol (E100)
and a regular blend of ethanol with gasoline (E10) based on sugarcane. The information
also includes the palm oil-based biodiesel employed in both California and Bogota.
In general the environmental impact of a standard vehicle in the USA is higher than in
Colombia, due mainly to the fact that in the Northern country vehicles are heavier,
therefore the distance performance is reduced. On the other hand, infrastructure also
has a higher impact in the USA, given that both roads and vehicle fleet have a lifespan
shorter than in Colombia. However, the environmental impact of fuel transportation is
marginal compared to their production and use process. This is particularly true for water
transportation methods, even if the distance is long.
For ethanol produced in the geographic valley of Cauca River the impact of
transportation is marginal, regardless of the destination (either Bogota or Los Angeles), as
is presented.
Figure 81 GWP for Ethanol
(Colombian Average E10 E100). Ethanol used in Bogota and California
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The GHG balance can be marginally affected by biodiesel transportation.
Nevertheless, the extent of the impact of transportation is susceptible to reduction based
on the location. For instance, it is friendlier in environmental terms to carry biodiesel
(produced in the Caribbean coast) via ship to California, than move this kind of biodiesel
to Bogota. On the other hand, the idea of carrying palm oil-based diesel from the
Department of Meta to export ports does not have any effect in environmental terms.
Figure 82 GWP for biodiesel
(Colombian Average B10 B100). Biodiesel used in Bogota and California
In addition, blends do not alter impact, given that reductions are proportional to the
amount of blended fuel.
6.4.6 Comparison of Colombian biofuels with some other biofuels
The figure below shows the global warming potential (GWP) of Colombian biofuels in
comparison with different value chains of biofuels known internationally, and reference
fossil fuels (diesel and gasoline). Impact of international biofuels is based on the study of
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(Zah et al., 2007). In addition, the impact of Colombian biofuels was calculated by
employing same infrastructure impact and the same standard vehicle, regarding Zah’s
method, in order to provide consistency. These minor adaptations and the fact that the
Swiss gasoline mix is taken as a relative comparison (100%) do not marginally change the
environmental impact of biofuel from Colombia, as was stated before.
In a study presented by Cherubini.et.al (2009) is possible to find that sugarcane-based
ethanol could have GHG emission per unit of output between 0.05-0.75 CO2eq (kg/pkm)
and a performance of other crops (corn, beetroot, wheat) between 0.1 and 0.195 CO 2eq
(kg/pkm). Lignocelullose ethanol fluctuates between 0.025 and 0.05 CO 2eq (kg/pkm)
(under laboratory conditions). For biodiesel was found that biodiesel based on
sunflowers, rapeseed and soy could be between 0.08 and 0.14 CO2eq (kg/pkm), whereas
experiments under Fischer-Tropsch drew results between 0.015 and 0.055 (Cherubini et
al., 2009). The case of palm oil, regarding GHG emission is no analysed in Cherubini’s
study.
Using a broad view, biofuels in Colombia exhibit a fairly good performance if they are
compared with some other biofuel value chains. Ethanol produced in Colombia from
sugarcane emits slightly less GHG’s emissions than ethanol produced in Brazil from the
same feedstock. Biodiesel creates less GHG’s emissions in comparison with the biodiesel
produced in Malaysia, mainly due to the increase in carbon reserves due to LUC.
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Figure 83 GWP of Colombian biofuels in comparison with other biofuels value chains
The biggest share of GHG’s emissions come from the agricultural crop (figure above,
green) through the use of machines, fertilizers and pesticides, and also in form of direct
emissions (such as nitrous oxide). The most relevant factors for the GHG, in agriculture,
are productivity per area (which is very high in the case of sugar beet in Switzerland,
sugarcane in Brazil and Colombia, low in the case of wheat in Europe), emission of nitrous
oxide (30% in the case of maize in USA) and deforestation process (which has been
excessive in the case of palm oil cultivation in Malaysia and soybean oil in Brazil). The case
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of palm oil in Colombia is the opposite (increase of carbon reserves), creating savings in
GHG’s (negative emissions of GHG).
Fuel production itself (yellow part in previous chart) creates on average less GHG’s
emissions in comparison with agricultural cultivation. Biodiesel emits low emission only
during extraction and esterification processes. However, anaerobic conditions during
residual waters plant treatment (which exhibits high chemical oxygen demand) in the
palm oil industry releases vast amounts of methane. During bioethanol fermentation,
emissions can fluctuate vastly due to the fossil energy carriers employed within the whole
value chain (for instance corn-based ethanol produced in the USA creates high impact in
this regard), they can also vary depending on to what extent agricultural wastes are re-
introduced into the manufacturing process as energy generators (in this case the use of
bagasse for sugarcane industry in Colombia and Brazil has proven to diminish those
impacts).
Fuel transport per se (orange section in previous chart) from the production locations
to the service station usually accounts for less than 10% of total emissions and it plays a
secondary role from the environmental perspective, if intercontinental freight is
undertaken via maritime routes or even via pipelines.
Current operation of the reference vehicle (dark grey) is carbon neutral when biofuels
are completely pure, due to the fact that all CO2 that is released from the combustion
process is absorbed during the growth of the plant.
Production and maintenance of vehicles, and construction and maintenance of roads
(light grey) were included in this study. In any case, it was assumed an identical vehicle
and same annual distance for all considered cases, producing the same increase in all the
variations. In the case of alternative efficient fuels, such as bioethanol from sugarcane,
such increments might comprise more than 50% of the GHG’s emissions (Hischier et al.,
2010; Zah et al., 2007).
6.5 Discussion and conclusions
The goal of a Life Cycle Analysis (LCA) is to evaluate environmental impact of the most relevant
biofuels within the Colombian context (sugarcane-based ethanol and palm oil-based biodiesel),
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overall in contrast with the performance presented by fossil references (particularly gasoline and
diesel fuel). The average environmental impact of the evaluated biofuels was compared with
international standards of sustainability, which provide a first approach on a key factor in regards
to the export potential for Colombian biofuels. In addition, the critical and sensitive factors that
have some sort of incidence within the environmental performance are determined and assessed
for its further enhancement.
The evaluation of the average environmental impact for Colombian biofuels is based on the
data collected in the field (feedstock production locations and processing / manufacture plants).
Data was validated by experts and complemented by references in literature and the data base
from Ecoinvent.
Within the following section will be argued and summarized the impact of ethanol made out
of sugarcane and biodiesel made out of palm oil in terms of the GWP and the non-renewable
accumulated energy demand. Some final remarks and conclusions are also presented.
Global Warming potential of sugarcane-based ethanol

As is illustrated in the next table and figure below, Colombia ethanol made out of sugarcane
is generating close to 26% of GHG’s emissions in comparison to pure fossil gasoline, without taking
into account direct nor indirect effects on the land use change (LUC and iLUC) (see figure, step 1).
The favorable balance of GHG is mainly due to the relatively low emissions produced in
agriculture. Enhanced agricultural practices and advantageous climate conditions along the basin
of the Cauca River, could greatly improve productivity and resource efficiency.
Results are independent of the allocation method, given that both energy and economic
allocation factors are very similar. In addition, the possibilities of technological improvement
(efficient co-generation and liquid CO2 recovery) do not influence significantly the GHG emitted
per vehicle km.
The table and figure compile results from:
 different allocation factors (economic and energy ones),
 different technologies (average and optimized ones),
 different cultivation methods (minimum impact, average impact and maximum impact),
 changes in land use (either direct or indirect)
and they indicate those by-default values regarding the renewable energy directive (RED).
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Table 74 GHG's emission potential. Different scenarios of sugarcane-based ethanol
GHG's emission potential. Different scenarios of sugarcane-based ethanol per v.km and relative
to 100% gasoline
GHG's emissions Economic allocation Energy allocation
Fossil
Standard Optimized Standard Optimized gasoline
Scenario Unit
tech Tec tech Tec
Scenario 1 kg CO2 eq / v.km 0.06 0.059 0.059 0.059 0.226

Without LUC/ With
% (compared
iLUC 26% 26% 26% 26% 100%
with fossil fuel)

With LUC/ Without
% (compared
iLUC 26% 26% 26% 26% 100%
with fossil fuel)
Scenario 3
kg CO2 eq / v.km 0.354 0.354 0.345 0.345 0.226
With LUC/ With
iLUC (tropical % (compared
156% 156% 152% 152% 100%
forest) with fossil fuel)
Scenario 3
kg CO2 eq / v.km 0.249 0.249 0.243 0.243 0.226
With LUC/ With
iLUC (wet tropical % (compared
110% 110% 107% 107% 100%
forest) with fossil fuel)

With LUC/ With
% (compared
iLUC (bushes) 56% 56% 55% 55% 100%
with fossil fuel)
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Figure 84 GWP of Colombian sugarcane based ethanol
in comparison to gasoline (100% impact)
Source: MME (2012)

In environmental terms, the most critical stage of ethanol production corresponds to
the agricultural stage, and therefore the mentioned GHG’s emission savings can only be
reached if best agricultural practices are applied and pressure on natural areas is avoided.
Pressure on land might be either direct or indirect.
Due to the fact that sugarcane cultivation in the geographic valley of the Cauca River
were established before year 2000, which was used as the reference year for this study in
terms of the LUC analysis, the LUC effects were not included within this report (previous
figure, step 2).
However, before ethanol production started in Colombia, the existing sugarcane was
employed for sugar production, and the one that was dedicated for ethanol manufacture
was formerly used for export to international markets. Reductions in sugar exports might
be offset by an increase of sugarcane plantations in some other places. If that is the case,
it might be expected to have some indirect effects on land (iLUC) if the cultivation area is
expanded in some other suitable area (agricultural land or pasture land) in Colombia
(figure, step 3). The indirect effects might go from no iLUC (best scenario, step 2) if no
additional land is required due to intensification methods up to a complete expansion into
natural ecosystems (worst case, step 3). Depending on the affected natural ecosystem
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(bush, wet tropical forest, jungle), the ethanol balance in comparison to fossil gasoline is
close to 26% (if no iLUC is generated), and 156% (if wet tropical forest are affected).
Results from the sensibility analysis pointed out that those results of the GHG’s emission
balance are highly sensitive to the iLUC effects. Nonetheless, the iLUC effects are complex
and are directly related to local environment, society and markets dynamics. With the
intention of avoiding indirect effects in natural areas and the consequent carbon debt, as
was discussed in (Fargione, Hill, Tilman, Polasky, & Hawthorne, 2008), it is required to
evaluate the local potential of the mechanisms, to implement careful land use planning
and to establish mitigation if the case leads to that situation, as is referred to by other
scholars as well as (Mathews & Tan, 2009b). These measures can include the
intensification of remaining pasture lands or agricultural areas, or the expansion of areas
with low carbon reserves as bushes.
In general, fuel transportation does no play a predominant role in regards to
environmental impacts, but only if fuels are not moved long distances using terrestrial
routes. Therefore, ship transportation does not have a significant impact on in the GHG’s
emission balance (between 3% and 7%).
A high environmental impact is related with construction, maintenance and
disposition of ways and vehicle infrastructure used for transport. Besides, the decision of
the final user in regards to the kind of fuel and type of vehicle (i.e. fuel consumption)
influence significantly the total balance of GHG. Nevertheless, this set of conditions
represents a general feature of mobility and it is not directly related to biofuels.
Colombian ethanol and fulfillment of the GHG’s emissions standard defined by the
RED
Several countries have implemented policy tools with the purpose of supporting
biofuel production and use. However, this support is frequently associated to
sustainability criteria in order to maintain environmental and socio-economic impacts
within certain boundaries (CARB, 2009; CEN, 2009; EPFL, 2008; EU-Comission, 2010).
Biofuel sustainable threshold regarding GHG savings having as reference regular fossil
fuels is close to 40%. Despite the fact that the methodologies defined for GHG calculations
present several discrepancies, it is very likely that Colombian biofuels comply with GHG
criteria.
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Energy efficiency of Colombian ethanol
Biofuels do not substitute fossil fuels completely, given that biofuel production is
partially based on fossil fuels (for instance the use or manufacture of the required
equipment or the chemicals used in the production process). Despite all that, biofuels
production consumes 60% less non-renewable energy in comparison with fossil fuels.
Efficiency is around 0.15 MJ of non-renewable energy per 1 MJ of bioenergy (in this case
bioethanol), depending essentially on the agricultural practices and the use of agricultural
wastes.
There is the potential of augmenting energy levels, which can be generated from by-
products of extraction and field (plantation) residuals. Through the installation of more
efficient boilers and turbines, even more fossil energy demand and electricity from the
power grid can be reduced. With the aim of improving system efficiency, it is suggested
using bagasse and other crop’s residuals as energy sources (Isaias C. Macedo et al., 2008).
6.5.2 Palm oil biodiesel
Global Warming potential of Colombian palm oil-based biodiesel

The performance of biodiesel made out of palm oil in terms of GHG depends mainly
on resource efficiency within the agricultural stage, land use change, and processing
technology. The relative influence of these factors and of the GHG’s emissions compared
with fossil diesel is illustrated and discussed in this section.
The following table and figure gather results for:
 different allocation factors(economic and energy),
 different technologies (average and optimized ones),
 different cultivation methods (minimum impact, average impact and
maximum impact),
 land use changes (either direct or indirect, LUC and iLUC)
 and by-default values regarding the Renewable Energy Directive (RED).
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Table 75 GHG's emission potential. Different scenarios of palm oil-based biodiesel
GHG's emission potential. Different scenarios of palm oil-based biodiesel per v.km and relative to
100% fossil diesel
GHG's emissions Economic allocation Energy allocation
Fossil
Standard Optimized Standard Optimized
gasoline
Scenario Unit tech Tech tech Tec

Without LUC/
With iLUC % (compared
60% 35% 46% 29% 100%
with fossil fuel)
Scenario 2 kg CO2 eq / v.km 0.033 -0.013 0.033 0.001 0.19

With LUC/
Without iLUC % (compared
17% -7% 17% 1% 100%
with fossil fuel)
With LUC/ With
iLUC (tropical % (compared
forest) 207% 180% 145% 128% 100%
with fossil fuel)
With LUC/ With
iLUC (wet % (compared
tropical forest) 136% 111% 97% 81% 100%
with fossil fuel)

With LUC/ With
iLUC (bushes) % (compared
55% 30% 42% 26% 100%
with fossil fuel)
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Figure 85 GWP of Colombian palm oil based biodiesel
in comparison to diesel (100% impact)
MME(2012)
Approximately 40% of GHG emissions per vehicle can be saved by using current
technology and average cultivation practices, in comparison to fossil diesel alternatives
(step 1, considering neither iLUC nor LUC effects). Nevertheless, GHG emissions may
increase or decrease by 10%, depending on the resource efficiency during the cultivation
stage (mainly in the inputs for fertilizers and pesticides). Likewise, the allocation method
to determine to what extent the impact of the main products might influence the
obtained results (particularly if energy allocation is applied, the positive and negative
impacts present a wider variation).
The main optimization potential for palm oil production in terms of GHG’s emissions
is to improve treatment through residual waters, which emits significant amounts of
methane. GHG’s emissions of the production stage are capable of being reduced by 75%
when methane is captured as is indicated in the umbrella CDM project of Fedepalma
(Fedepalma, 2006a)(See in the figure “optimized technology”).
Palm oil tree cultivation is able to store relatively great amounts of carbon in
comparison to other use of lands (particularly if they are compared to agricultural or
pasture lands). If the direct land use changes (step 2) are taken into account, the carbon
balance has a propensity to be enhanced even more, up to 83% (using average
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technology) and up 107% (if advance or optimized technology is employed), due to the
fact that most palm trees plantations took place in areas that formerly were destined for
grazing purposes or agricultural production. Notwithstanding, some indirect changes in
land might be caused by these actions as well (step 3). In general, if biofuels are not
transported by terrestrial roads over large distances, such fuel transportation does not
represent a great impact in terms of environmental effects. Therefore, maritime
transportation of biodiesel to the USA market has a marginal impact on the GHG’s balance
(in between 3% and 7%). As in the ethanol case a higher impact it associated to
construction, maintenance and final disposal of road infrastructure and the vehicle used
for transportation. Even more, the choice of the final user regarding the type of fuel used
and the kind of vehicle driven are prone to strongly influence the total GHG balance.
Nevertheless, these factors are mobility factors and are out of the scope of this study.
Colombian biodiesel and fulfillment of the GHG’s emissions standard defined by the
RED
It can be asserted that Colombian biodiesel made out of palm oil provides good
performance in comparison with some other biofuels produced internationally and it
accomplishes 40% of GHG´s emission savings defined by several international standards
(CARB, 2009; CEN, 2009; EPFL, 2008; EU-Comission, 2010).
Energy efficiency of Colombian biodiesel

The non-renewable accumulated energy demand of diesel-fed vehicles is greatly
reduced (by a factor of 5 to 8 times) in comparison to those vehicles that work on regular
diesel fuel from a fossil nature. The recovered energy, assessed as the produced MJ of
bioenergy per every MJ of fossil origin introduced, fluctuates in between 4 and 7 (with an
average of 5), depending mainly on the crop intensity and productivity.
The non-renewable energy demand for biofuels based on highly productive crops (as
for the palm oil crop) is considerably less in comparison to other biofuels, especially when
lingo-cellulosic biomass is used to provide energy in the processing facilities. It is
important to note that if the lingo-cellulosic is used for second generation technologies a
more efficient result might be reached as well, in terms of fuel generation but co-
generation potential and the creation of compost will be affected negatively. In any case,
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the use of residuals (for instance the emptied palm fruit) might reduce the energy demand
even more. However, the impact transference (such as the nutrients recycling) must be
evaluated carefully.
6.5.3 Final conclusions
There is evidence that, if ethanol made out of sugar cane and biodiesel from palm oil
are used instead of fossil fuels, GHG’s emissions can be reduced by up to 74% and 83%
respectively. If all existing biofuel producing plants work at their maximum capacity, it is
possible to save 1.8 million tons of CO2 eq per year. That is equivalent to 3% of the total
emissions of CO2 in Colombia in 2008 or 8% of those emissions caused by the Colombian
transport sector (UN, 2012).
Compared with some other international biofuels, Colombian biofuel exhibits good
performance and it achieves 40% of minimum GHG’s emission savings, suggested by
several bioenergy fuel standards (CARB, 2009; CEN, 2009; EPFL, 2008; EU-Comission,
2010). Therefore, biofuels exported from Colombia can be favored by various
mechanisms for subsidies in “sustainable” international markets for biofuels. However, a
sustainability assessment should be applied for each producing firm and plantation in an
isolated way, given that the present study provides only an insight for the average
Colombian case, and evaluates its range of impacts. Thus, it is required that
recommendations presented in this study be validated at a local level in order to establish
to what extent each plantation and facility complies with the standards.
In general, it can be assured that the GHG’s emission balance is quite sensitive to the
agricultural stage, particularly regarding the efficiency in agricultural handling and
managing practices, and also land use changes (LUC and iLUC). Those GHG’s emission
related to biodiesel range between 60% and 17% if the LUC effect is taken into account
(using economic allocation factors). The enhanced GHG balance is mainly due to the
relatively high carbon reserve that is contained in soil under palm plantations in
comparison to any other agricultural products, or to livestock growing purposes.
Nevertheless, the act of using productive soil for planting sugarcane or palm oil might
cause indirect land use changes (iLUC), given that replaced crops could be established in
some other location. This way of acting can induce to either intensification processes, or
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soil expansion activities, the latter clashing with some natural areas. If the “worst case
scenario” regarding expansion in the agricultural frontier is considered, the GHG’s
emissions can double compared to the ones produced by fossil alternatives. Therefore,
the amount of GHG produced is highly susceptible to current and potential land uses.
Given that these effects follow mechanisms of high complexity and they account for
elevated levels of dependency on local conditions, it would be a great contribution to
undertake a detailed study on the local conditions and to develop a land planning scheme
in term of potential uses, including mitigation proposals (such as silvopasture techniques)
for the forecasted biofuel plantations.
In the palm industry, particularly, residual water treatment can be improved in the oil
facilities’ effluent (very intensive in Chemical Oxygen Demand, COD), which emits vast
amounts of methane. The implementation of the CDM “umbrella project” proposed by
Fedepalma is a step in the right direction.
For ethanol made out of sugarcane and palm oil-based biodiesel, it has been
established that both require 5 times less non-renewable energy carriers in comparison
to fossil fuels. The relatively low demand of fossil fuels for sugarcane-based ethanol and
palm oil-based biodiesel is explained by the fact that most of lingo-cellulosic material is
employed for co-generation. The demand for fossil fuels can be reduced even more,
through improvement of the efficiency of both boilers and turbines, and also the use of
waste biomass that come from the plantations and harvesting process. However, in the
future the transfer of impacts regarding costs and interruption of the nutrients cycle must
be evaluated.
A dominant effect in the sugarcane crop is the burning practice before the crop
harvest, which contributed to summer smog (caused by CO emissions). Despite all this,
the effect of the burning practice before the harvesting season, has been, and still is, the
subject of several academic and health debates. Some studies reveal that there is no
significant effect from the sugarcane burning practice on the local or nearby population
(Jose Goldemberg, 2007), while other references indicate that there are negative impacts,
which manifest as respiratory diseases in children and elderly people that receive
treatment in local hospitals (Nicolella & Belluzzo, 2011). There are some ongoing studies
regarding the potential hazardous effect of the sugarcane burning practice on human
285
health, but research and additional monitory controls are required to obtain conclusive
results on the possible carcinogenic outcomes from such procedures.
Finally, the selection of vehicle on the Colombian roads affects directly fossil fuel
consumption and therefore the impact caused by biofuels production stage. Policy tools
and regulations that aim for greater vehicle efficiency, and for the provision of transport
alternatives (i.e. use of efficient public transportation) should be included within the
guidelines for the production, distribution and use of fuels of biological origin, at least as
a mid-term energy opportunity.
286
7 EXPANSION POTENTIAL
7.1 Aim of the study
One of the main issues in growing energy crops for the production of liquid biofuels, at global
level, is the availavility of land to do so (S. C. Trindade, 2010). Some nations in temperate areas
do not count on those productivity rate as those as the ones presented by tropical countries(S.
Trindade, 2005).
Despite the fact the area for energy crops in Colombia, nowadays, is quite limited as can be
seen in the following map, it is expected that the growing demand of biofuels, and some other by-
products that come from sugarcane and palm oil, lead to a great expansion of cultivation areas
for these particular feedstocks and some others that can be considered as well.
Nevertheless, potential benefits from increased biofuel production, can be achieved only if a
sustainable expansion of feedstock cultivation is guaranteed.
Thus, the purpose of this section is to provide a first filter of the areas that exhibit potential
to cultivate either sugarcane or palm oil at a national level. The suitability of these selected regions
for growing energy crops is determined by a set of physical variables, along with legal,
environmental and socio-economic aspects, all of these framed within sustainability key issues.
Thus, this should be understood as a mapping exercise that distinguishes potential suitable areas
for palm oil and sugar plantations and contrastes initial plans provided by the national government
some years ago (as it can be seen in section 7.7.3).
The LCA of Colombian biofuels have proven the importance of the LUC in terms of the carbon
balance. Therefore, special attention has been given to this in the map of emissions of greenhouse
gases (GHG’s) that emerge by LUC effects.
Suitability maps given by the study allow identifying general patterns of suitable zones, which
provide a scientific knowledge base, for better land planning strategies and investment in
sustainable biofuel production initiatives (however, such analisys are out of the scope of this
particular research). In addition, it points out areas of interest, where further research for specific
projects can be of great use.
287
Figure 86 Existing sugarcane crops and palm oil crops in Colombia in the year 2008
Existing sugarcane crops (green) and palm oil crops (blue) in Colombia in the year 2008
(Source: Cenicaña and Cenipalma)
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7.2 Methodology
The following section describes the general methodology framework to evaluate the potential
of sustainable expansion for sugarcane and palm oil, as well as the geographic and temporal scope
of it. Furthermore, some of the constraints in the methodology are presented as well.
7.2.1 Conceptual framework
Evaluation of potential suitable areas for sugarcane and palm oil expansion is based on a multi-
criteria approach, inducing biophysical, legal, environmental, and socioeconomic aspects (see
figure below).
Figure 87 General overview of the Geographic Information system GIS
 First of all, climatic and biophysical factors are assessed with the purpose of determining
where these feedstocks can be cultivated.
 The second filter is that of law and regulation: these areas with high legal restriction are
excluded, i.e. those national parks and indigenous reservoirs.
289
 Next, those areas affected by potential impacts on biodiversity, or with a strong presence
of water scarcity and GHG’s emissions. This particular study has been focused on GHG’s
related with the Land Use Change (LUC), given its relevance to satisfy standards of
certification in sustainability, and that quite often have been neglected by current
Geographic Information Systems (GIS)
 Next, socio-economic aspects that have been extracted from literature review were taken
into consideration.
 Finally, all the maps that were obtained through the study are presented here.
In the upcoming sections a more detailed explanation of each suitability map will be given.
7.2.2 Scope
This study covers Colombian national territory, and use as reference the year 2009. All the
maps presented are based in the system of forecasted coordinates “MAGNA-SIRGAS / Zona
Bogotá, Colombia”. This software can be downloaded for free from IGAC website.
7.2.3 Limitations of this study
The model based on GIS used to obtain the potential expansion areas for biofuel feedstock is
based in a multi-criteria approach. The methodology of unitary steps, and the implicit implications
and improvement options are described further down in following sections. Nevertheless, here
are presented some of the limitations of this particular approach.
First, there are several definitions of a sustainable biofuel production, and even though
numerous key aspects were taken into consideration, there is always the possibility of including
more criteria (for example, human rights). In addition, each criterion that was used within this
study can be put in operation in several ways. For instance, should biodiversity be measured as
the number of species of vascular plants, animals, species under protection, or none of the above?
Something similar happens to climatic suitability, which in fact depends on various factors
(precipitation, solar radiation, temperature, humidity, wind speed, etc.) of which not all are in the
study.
Likewise, changes and temporal fluctuations in climate (e.g. annual average precipitation
versus quantity of dry months) are relevant to determine the suitability of the crop but it is not
always possible to include them. This study relies on a temporal scope, therefore it requires
constant updating of the base maps, in order to give a proper reflection of future developments.
290
The resolution of original maps is enough to identify general patterns of suitability at a
national level. However, low resolution maps do not accurately reflect local circumstances, so the
maps allow suggesting general guidelines for policy, but they are not suitable for specific biofuel
initiatives. Scholars, such as Batidzirai et. al. , have suggested that former studies of this nature
often are incomplete, due to the fact that they not incorporate important side-effects like LUC
and iLUC effects (Batidzirai, Smeets, & Faaij, 2012). In this particular study those effects are
included but due to data availability it has not been possible to report more comprehensive
results, as it is asked by the scholars mentioned earlier in an ideal expansion analysis.
Given the limitation in the resources and the limited availability of the required maps, the
study, despite all this, is able to identify focused areas where biofuel feedstock cultivation is
suitable to a great extent. Notwithstanding, further studies, based on high resolution maps, will
be required to allow proper planning of specific projects within the identified areas. Even more,
not all sustainability aspect can be covered adequately trough a spatial analysis (like child labor)
and consequently the study needs to be complemented with other approaches.
So, as mentioned before, it becomes crucial that both methodology and its inextricable
limitations are born in mind by the reader, in order to avoid misinterpretation of the results
presented.
7.3 Biophysical aptitude
Based on crop specific requirements, potential areas are subjected to assessment and
classified in different levels of suitability. Potentially suitable land is determined by climatic and
agronomic factors, using FAO classification (FAO, 1981)
The first step was to exclude bodies of water and urban territories within the Colombian
national territory for the analysis. Later, the factor of altitude was used as an exclusion criterion,
indicating in this way the climatic constraints that are experienced by these crops. In the case of
the oil palm tree, the maximum altitude that can it bear is 1000 meters above sea level (m.a.s.l)
(IDEAM, 2009b).
291
Figure 88 Exclusion of zones regarding altitude, urban areas, and bodies of water.
Left panel for palm oil crops and right panel for sugarcane crops. Excluded areas are those
which are not green.
(Source IGAC)
In the case of sugarcane crop the resistance in terms of thermal tolerance is higher and it can
deal with conditions less than 2500 m.a.s.l. Due to different climate conditions, in Brazil sugarcane
is cultivated in areas that are under 1000 m.a.s.l. (Netafim, 2011b). So, in the previous figure are
presented those areas in Colombia without bodies of water, nor urban zones and excluding all
areas above 1000 m.a.s.l. (on the left side for palm trees) and above 2500 m.a.s.l. (on the right
side for sugarcane).
In a second step, climatic and agronomic factors are taken into consideration to determine
the crop conditions potential (see next figure). Criteria were chosen regarding the selection made
by the IDEAM, including average annual temperature, annual precipitation, soil fertility, floods,
soil depth, natural draining, soil erosion and slope.
292
Figure 89 General overview on employed biophysical criteria
The maps used were created by IDEAM in 2005, and agronomic maps provided by the Agustin
Codazzi National Geographic Institute (IGAC, 2003). The suitability of each crop was determined
for each climatic and agronomic factor. Suitability classification system is based on former
classifications suggested by FAO as can be seen below.
293
Table 76 Types of soil suitability defined by FAO
Types of soil suitability defined by FAO. Colors of these different types are reflected in
suitability maps.
Type of aptitude Description Value
Soils that do not present significant limitations for
continuous applications of a given use, or minor limitations
S1 Suitable that do not compromise in a significant way either benefits 8
or productivity. They do not lead to a rise in agricultural
input use above an acceptable level either.
Soils that exhibit slight limitations that in an aggregated
manner are moderately severe for the continuous
S2 Suitable with
application of a given use; limitations will reduce the
moderated 4
productivity or benefits to the extent that, despite this, it is
restrictions
still profitable, it is less profitable in comparison with the S1
scenario.
Soils that exhibit limitations that in an aggregated manner
are severe for the continuous application of a given use and
S3 Suitable with
in consequence productivity or benefits will be reduced. 2
severe restrictions
Thus the use of agricultural inputs will be increased;
therefore additional expenditures are marginally justified.
Soils that exhibit limitations that can be overcome in the

future but that immediately cannot be corrected under the
N1 Non suitable
existent knowledge with acceptable costs. For that reason, 1
(conditional)
these limitations are considered severe to maintain a
sustained use of a given purpose in a successful way.
N2 Non suitable in a Soil that exhibit severe limitations to undertake any possible
0
permanent way and successful use of land in a given purpose.
Source: (FAO, 1981)
Parameters to determine suitability of palm crops are extracted and slightly adapted from
IDEAM’s study (IDEAM, 2009b). The study that evaluate soil suitability for palm tree cultivation
was implemented by IDEAM, IGAC, MAVDT, MADR, IAvH, WWF, CENIPALMA and FEDEPALMA
(IDEAM, 2009a, 2009b). This multi-disciplinary project has brought benefits to the involved
parties, individually in different perspectives and experiences, but yet, there is no consensus on
all aspects that were evaluated, and some of them are at the core of controversial discussions.
Sugarcane used the same suitability parameters that were employed in the case of palm oil.
In the next section every suitability parameter for sugarcane and palm will be described and
discussed within the context of other scientific studies.
294
7.3.1 Climatic factors
The most important climate factors that have direct impact in crop growth are.
 temperature,
 precipitation,
 brightness and solar radiation,
 wind
 and relative humidity.
Daily, seasonal or annual variations of these parameters will define harvest yields. Nonetheless,
average annual temperature and precipitation are the most common factors used to assess
climate suitability for specific crops. Therefore those two factors are described in more detail
here.
However, it is important to bear in mind that those factors that were not taken into account
in this particular study might affect climatic suitability. If more indicators are included in further
studies it is possible to be more accurate. So, variables such as droughts and rainy seasons can use
quarterly assessments of precipitation accumulation. In the same way the inclusion of maximum
and minimum temperature might prove relevant and should be included in studies of larger scope.
On the other hand, climatic conditions differ widely between regions; subsequently a better
resolution in those maps that are used as a base in this particular exercise can bring more accuracy
in the map of climatic suitability.
7.3.1.1 Precipitation
This variable expresses the volume of water that falls in an area within a certain period of time
(assessed in millimeters per year, mm/y). Precipitation is considered as a climatic factor that is
strongly linked to suitability of land for sugarcane and palm oil cultivation. This assumption is given
by the effects that arise as a consequence of the lack of moisture in the growth and potential
reduction in yields due to droughts.
Precipitation map is taken from IDEAM (IDEAM, 2005a) and the range of sugarcane and palm
suitability are presented here.
295
Table 77 Precipitation amount and relationship with the suitability categories
Precipitation amount and relationship with the suitability categories described by FAO for
biofuel feedstock
Attribute Variable Palm oil Value Sugarcane Value
N2 - Non suitable in a N2 - Non suitable in a
<500 0 0
permanent way permanent way
S3 - Suitable with S2 - Suitable with
500-1000 2 4
severe restrictions moderate restrictions
S2 - Suitable with
Precipitation 1000-2200 4 S1- Suitable 8
moderate restrictions
Annual average
(mm/ha) S2 - Suitable with
2200-3500 S1- Suitable 8 4
3500-4500 4 4
moderate restrictions moderate restrictions
>4500 0 0
Source: Precipitation map from IDEAM (IDEAM, 2009b) and Cenicaña 2011
Palm oil: Values of the previous table come from the study done by IDEAM in 2009 for the
specific case of the palm oil tree, and they indicate that palms require a uniform precipitation
distribution all year long, dry periods cannot exceed more than 3 months and it is required to have
annual precipitation above 1000 mm/y. In fact, these findings are coincident with the ones
presented in previous literature references (Ogunkunle, 1993), indicating that dry periods should
not exceed 4 months and annual precipitation must be near to 1250 mm/y or above. Some other
authors (Corley & Tinker, 2008; Goh, 2000; Hartley, 1988) consider that the ideal level must be
over 2000 mm/y (references), while other studies give a range between 1500 mm/y and 2000
mm/y as valid for palm cultivation (if it is equally distributed all year long) (Lubis & Adiwiganda,
1996).
Sugarcane: Variables of suitability and categories were defined by experts on sugarcane. The
ranges of values for precipitation are slightly different than the ones found in the literature.
According to EMBRAPA, sugarcane crops easily adapt to tropical regions, which have a humid
climate and grow basically in those areas where rain in evenly distributed, for rains levels that are
above 1000 mm/y (Freitas Vian, 2005-2007). There are some other studies where it is considered
that any area with precipitation levels below 900 mm/y are not suitable for sugarcane cultivation
(Paiboonsak, Chanket, Yommaraka, & Mongkolsawat, 2004). Nevertheless, if there is enough
irrigation all year round, precipitation requirements can be balanced, even those areas below
1000 mm/y; therefore, these areas also can be considered suitable for sugarcane cultivation in
this study.
296
Figure 90 Precipitation suitability map.
Palm oil crop (left), Sugarcane crop (right).

Source: (IDEAM)
Large areas of Colombian territory are suitable in terms of precipitation for both oil palm and
sugarcane crops (see figure above). However, extremely high precipitation levels like those
exhibited in some areas located in the Pacific Coast that can reach up to 7000 mm/y, are not
suitable for energy crops.
7.3.1.2 Temperature
This variable makes reference to the amount of thermal energy accumulated in the air,
expressed in degrees Celsius and it is assessed in spatial data continuously by the Colombian
weather stations.
Temperature is a crucial factor to determine proper growth and development of palm trees,
due to its direct effects in the average speed of most physiological processes for this plant. The
study used average temperature to determine crop suitability, while areas with extreme
temperatures were not taken into account.
Temperature map is based on IDEAM material (IDEAM, 2005a) and ranges of suitability for
sugarcane and palm oil are listed and described below:
297
Table 78 Temperature suitability across Colombia
Table: Temperature suitability across Colombia
<10 0 0
N2 - Non suitable in a S2 - Suitable with
10-15 0 4
permanent way moderate restrictions
Annual 15-20 0 4
average
S2 - Suitable with
temperature 20-25 4 S1- Suitable 8
(°C)
25-30 S1- Suitable 8 S1- Suitable 8
30-35 4 4
moderate restrictions moderate restrictions
>35 0 4
Source: (IDEAM, 2005a, 2009b) Cenicaña 2011
Palm oil: palm does not tolerate wide variations in temperature and it grows best between
20 and 35°C (IDEAM, 2009b). In the reference given by Ogunkunle it is stated that apt
temperatures are above 22°C and non-apt temperatures are those below 18°C (Ogunkunle, 1993).
Other authors point out that in order to guarantee optimal conditions for palm cultivation average
maximum temperatures must be between 29 y 33°C and average minimum temperatures must
be between 22 and 24°C (Corley & Tinker, 2008; Hartley, 1988).
Sugarcane: variables and suitability categories are defined by experts of CENICAÑA. Ranges of
values for these temperatures used in this study are consistent with the ones reported in the
literature. According with EMBRAPA, sugarcane crops find tropical conditions an easy
environment to adapt to, because of its warm weather, therefore, this cane grows for the most
part in temperatures that vary between 19 and 32°C (Freitas Vian, 2005-2007).
298
Figure 91 Temperature suitability map.

Source: IDEAM and CUE maps
Colombia has optimal conditions for sugarcane and oil palm tree cultivation. Just the most
elevated areas are considered not suitable, but they were already excluded under altitude criteria.
7.3.1.3 Other climatic factors
As was mentioned before, climatic suitability for sugarcane or palm oil is not only determined
by annual temperature and precipitation. There are other factors such as solar radiation, daily
hours of sunlight exposure, wind exposure, and relative humidity, which might also affect
productivity. Below are presented those maps of annual solar radiation provided by the IDEAM
(IDEAM, 2005b, 2006). The other factors that were mentioned before will be discussed in the next
section.
299
Figure 92 Daily solar radiation, relative humidity, and wind speed
Daily solar radiation (left), relative humidity (middle), and wind speed (right).
Source: IDEAM 2005, 2006.
In addition to those climatic factors that were just presented, seasonal or temporary
variations can influence crops growth. Hence, annual temperature and precipitation are not the
only ones that are relevant, but also distribution of rain in time (daily and seasonal fluctuations)
affects biomass production. This implies that if this sort of information is included, for instance
maximum and minimum temperature in dry periods, the sustainability map can be improved in
the future. Notwithstanding, based on the available resources and data those kinds of
considerations were not taken into account in the study.
7.3.1.4 Aggregation of climatic map
Based on precipitation, temperature, and altitude, the suitability map is based on the matrix
presented in table below. Climatic suitability is a consequence of temperature and precipitation,
so it is drawn from the aptitude values of these parameters (N2:0, N1:1, S3:2, S2:4, S1:8).
Table 79 Matrix to determine climatic suitability.
Matrix to determine climatic suitability
Precipitation
0 1 2 4 8
0 N2 N2 N2 N2 N2
Temperature
1 N2 N1 N1 N1 N1
2 N2 N1 S3 S3 S3
4 N2 N1 S3 S2 S2
8 N2 N1 S3 S2 S1
Source: (IDEAM, 2009b)
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The figure below shows that the Colombian Llanos region, the Andean valleys and northern
region are suitable for sugarcane and palm oil cultivation, from a climatic point of view. The
Guajira peninsula and Pacific coast present extreme patterns of precipitation (very low in the case
of the former and extremely high in the case of the latter). In this sense, these areas are not
considered as suitable for feedstock cultivation with bioenergy purposes.
Figure 93 Climate conditions suitability map.

Source: IDEAM and CUE
For palm oil, optimal radiation patterns are between 4 and 5kWh/m2, while solar radiation
that exceeds 6 kWh/m2 is not apt for palm oil cultivation (Corley & Tinker, 2008). Guajira peninsula
exhibits high solar radiation, so this region is ruled out by this factor as well. This factor combined
with the wind and low relative humidity in this region is not favorable for palm crops. On the other
hand in some areas of the Department of Arauca the suitability for palm crops is low, due to similar
conditions to the Guajira region, particularly solar radiation.
Sugarcane can grow optimally if relative humidity is around 55 to 85% and solar radiation in a
range between 18 to 36MJ/m2 (Netafim, 2011a). Therefore, Colombian Pacific coast along with
some parts in the Amazon region are not suitable for sugarcane cultivation.
301
7.3.2 Agronomic factors
In addition to climatic conditions, there are other factors that are important for sugarcane and
palm oil cultivation, such as the availability of nutrients, oxygen and moisture in soil. Among those
optimal conditions it is possible to find controlled erosion, adequate moisture, draining of
excessive water, low potential of flood, and a proper and balanced nutrients supply. For that
reason, the following factors are considered: Flooding, natural drainage, soil erosion, soil depth,
land slope.
7.3.2.1 Flooding
Flooding is dependent on soil drainage, and directly related with the slope of every
geomorphologic unit and areas that provide conditions for water to exceed natural drainage.
Damage caused by floods might occur for two different reasons: stagnated water and running
water. When water remains stagnated the available oxygen dissolved in it tends to decrease.
Running water, in turn, can knock down, tear apart or cover with mud biomass for bioenergy.
When floods take place with salt water there is a high risk of soil salinization. Flood risk depends
on soil properties, and hydrologic and climatic conditions of the region. There are several types of
flooding, and based on the information provided by the IGAC they can be broken down as follows
(IGAC, 2003):
Without inundation: Characteristics of a unit of land where water excess is removed easily.
With inundation: Characteristics of a unit of land where water excess is removed slowly and floods
happen regularly. Areas that have likely conditions to ease a potential surplus of natural drainage
can be sub-divided into permanent and occasional floods. The former makes reference to
constant inundated areas, while the latter indicates that flood take place to a minor extent in
terms of the magnitude and length.
Given that floods can be prevented to some extent, through implementing some technical
actions, just only bodies of water are considered not suitable permanently. Besides, those areas
that are flooded occasionally are considered by FEDEPALMA as suitable with severe restrictions,
for obvious reasons. In the palm report presented by IDEAM these areas are considered as not
suitable (IDEAM, 2009a).
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Table 80 Flooding - Crop specific classification
Flooding - Crop specific classification
Without flooding S1- Suitable 8 S1- Suitable 8

Flooding Permanent flooding 0 0
S3-Suitable with S3-Suitable with
Occasional flooding 2 2
severe restrictions severe restrictions
Source: Flood map from IGAC, (IDEAM, 2009b) and Cenicaña 2011
Palm oil: Palm oil crops are suitable for those lands that are not flooded frequently (IDEAM,
2009b). In the Ogunkunle et al. study is shown where those areas that remain flooded more than
2 or 3 months in five out of ten years, are not suitable for palm oil cultivation (Ogunkunle, 1993).
Sugarcane: According to EMBRAPA, soils with permanent floods are not suitable for sugarcane
cultivation whatsoever (Freitas Vian, 2005-2007). As a matter of fact, flat lands must be drained
properly before starting the sowing stage. That factor, though, will be considered in the natural
drainage indicator.
303
Figure 94 Flooding suitability map.

Main inundation areas are located in those terrains that are relatively flat and close to rivers
and/or mountain chains, particularly in those mountain bases of the Andes, and the area of those
rivers that flow towards the Pacific coast near Tumaco. However, in those geographic areas it is
possible to find substantial extensions that have a low flood risk, as actually happens in Casanare.
Those maps that were used to build this study have a resolution (1:500.000) cannot give precise
local conditions in high detail. With better cartographic information (i.e. maps with resolution
higher than 1:100.000), and taking into consideration seasonal or temporary variation (e.g.
frequency, magnitude, or length of floods) it would be possible to refine this study, providing more
accuracy in final conclusions.
7.3.2.2 Natural erosion
Land degradation is associated to the loss of layers of fertile soil caused by gravity, water or
wind. Land degradation has a strong influence on crop growth and therefore in its productivity.
304
This study used the base map of soils from IGAC (IGAC, 2003), so natural erosion is classified as
follows:
None or minor: Not significant or there is presence of small and disperse furrows in the soil.
Minor to moderate: There is presence of deteriorated furrows in advanced state (there is a
combination of small neglected furrows).
Severe to very high: Exposure of underground horizons in the soil surface.
At first, it employed the methodology developed by IDEAM in order to categorize suitability
of palm oil crops. Nevertheless, minor erosion to moderate was classified as moderately suitable,
instead of suitable with severe restrictions (following suggestions provided by experts of
CENIPALMA).
Table 81 Soil erosion - Crop specific classification

Soil erosion - Crop specific classification
Without erosion S1- Suitable 8 S1- Suitable 8
S2- Suitable with S3-Suitable with

Erosion Moderate erosion 4 2
moderate restriction severe restrictions
N2 - Non suitable in N2 - Non suitable in
Severe erosion 0 0
a permanent way a permanent way
Source: Erosion map from IGAC, (IDEAM, 2009b) and Cenicaña 2011
Palm oil: Available literature about effects of erosion on palm oil productivity is limited.
Nevertheless, some authors consider that soils that are excessively dry and porous are not
favorable for palm oil cultivation (Corley & Tinker, 2008).
Sugarcane: It has been reported that suitable soils are those that do not exhibit great
topographic or erosion problems, while those that do so are ruled out of this selection (Chartres,
1981)
305
Figure 95 Soil erosion suitability map

Sugarcane and palm oil tree cultivation in Colombia is not highly constrained by the effect of
soil erosion. Risk of erosion is present in some isolated areas in the Andean mountains and along
great rivers (see figure above). Furthermore, there is some risk of erosion in forest areas that are
turned into food or energy crops, given the fragility of soil in rainforest.
7.3.2.3 Soil depth
Among the more relevant physical and chemical aspects for sugarcane and palm oil
production is soil depth, which is determined by thickness of fertile soil. Effective depth is the one
that is limited by other sorts of materials such as rocks and gravel. According to the information
registered in soils map provided by IGAC (IGAC, 2003) and the requirements established by
CENIPALMA, the following classifications were established:
 Very shallow: roots that penetrate less than 25 centimeters.
 Shallow: roots that penetrate a depth up to 50 centimeters.
 Moderately deep: roots that penetrate a depth up to 100 centimeters.
 Deep: roots that penetrate a depth more than 100 centimeters.
306
Table 82 Soil depth - Crop specific classification
Soil depth - Crop specific classification
>100 cm S1- Suitable 8 S1- Suitable 8
S2- Suitable with

50-100 4 S1- Suitable 2
Soil depth moderate restriction
(cm) S3-Suitable with severe S2- Suitable with
25-50 2 4
restrictions moderate restriction
N2 - Non suitable in a S2- Suitable with
<25 0 4
permanent way moderate restriction
Source: Soil depth map from IGAC, (IDEAM, 2009b) and Cenicaña 2011
Palm oil: In countries like Malaysia the effective depth of soil is considered optimal when it is
equal and higher than 100 cm (Balasundram, Robert, Mulla, & Allan, 2006). This criterion also
applies to Colombia. In the case of the study undertaken by Ogunkunle et. al. it is said that those
lands that provide a depth of 90cm or superior are considerably suitable, however, those that are
above 100cm are ideal for this crop (Ogunkunle, 1993). Just the thinner part of some roots is able
to exceed the limit of 100cm and most roots are concentrated in the first 30cm (Corley & Tinker,
2008). These authors assert that palm oil can only grow in soils that offer an effective depth of 50
cm if it has a substantial provision of nutrients and water.
Sugarcane: According with EMBRAPA, the ideal depth for sugarcane cultivation is more than
100cm (Freitas Vian, 2005-2007). Chartres considers suitable those soils that exceed 100cm and
moderately suitable for depths between 50 and 100cm (Chartres, 1981). Values defined by
CENICAÑA are more modest due to the fact that sugarcane can be also grown in areas with little
depth but that can be adapted.
307
Figure 96 Soil depth suitability map.

In general sugarcane requires less soil depth than palm oil, therefore the potential area for
sugarcane cultivation is larger (see figure above). Notwithstanding, soil depth is highly linked to
local circumstances and when maps with a resolution of 1:500.000 big areas, such like Casanare,
tend to be generalized. So, with the risk of appearing reiterative it is recommended to update
information from maps with at least 1:100.000 as the resolution.
7.3.2.4 Soil fertility
This attribute refers to the natural composition of the soils basic elements, taking into
consideration nutrients retention capacity, basic saturation and salinity. The fertility map is taken
from the IGAC and it is classified by experts in the following categories (IGAC, 2003):
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Table 83 Soil fertility - Crop specific classification
Soil fertility - Crop specific classification
High S1- Suitable 8 S1- Suitable 8
S2- Suitable with S2- Suitable with

Fertility Moderate 4 4
moderate restriction moderate restriction
S3-Suitable with severe S3-Suitable with
Low 2 2
restrictions severe restrictions
Source: Soil fertility map from IGAC, (IDEAM, 2009b) and Cenicaña 2011
Palm oil: classification was suggested by CENIPALMA (IDEAM, 2009b). Authors like Ogunkunle
and Mutert consider an important soil requirement the cationic interchange, organic carbon
content, total nitrogen and level of phosphorous (Mutert, 1999; Ogunkunle, 1993).
Sugarcane: classification was provided by experts of CENICAÑA. Based on the EMBRAPA
report, the sugarcane’s root development depends of the PH, basic saturation, percentage of
aluminum and calcium content in the deeper layers of soil. Several authors stress the importance
of nitrogen, potassium, phosphorous among other chemicals as critical element in terms of soil
fertility for sugarcane (Chartres, 1981; Kuppatawuttinan, 1998; Paiboonsak et al., 2004). In spite
of this, lack of or low levels of nutrients can be offset by the use of mineral or organic fertilizers;
therefore soils with low levels of fertility are capable of cultivation.
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Figure 97 Soil fertility suitability map

Most soils in Colombia are considered moderately suitable for sugarcane and palm oil
cultivation. However, alluvial planes in Andean valleys located in the Northern region of Colombia
are considered as the most fertile ones, therefore more suitable for energy crops cultivation (see
figure above).
Yet again, low resolution of maps (scale 1:500.000) leads to generalize local variables. Thus,
apart from the incorporation of other maps of higher resolution, additional information is required
such as nutrients availability determined by some indicators like soil texture, carbon content, pH,
and retaining of nutrients capacity (basic saturation, action exchange capacity and clayey
formation capacity) in future research programs, in order to improve knowledge on fertility of the
soil.
7.3.2.5 Natural Drainage
Natural drainage refers to the natural capacity of soil to evacuate or retain water of the
terrestrial surface or in the zone where roots are located. Plants need to absorb oxygen through
its roots, but as oxygen propagates ten times faster in the air embedded in the soil that in the
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water, a flood situation constraints drastically oxygen absorption and therefore plants might face
damage. The drainage base map is taken from IGAC (IGAC, 2003) and it is broken down in the
following categories:
Drainage good to moderate: Water excess is easily removed and soil does not exhibit
conditions of oxidation-reduction.
Moderated drainage: Drainage is slow, phreatic stratum mildly deep, or the superior layer has
saturated hydraulic conductivity moderately low.
Excessively drained: Water that is removed excessively fast and has a deep phreatic stratum,
rough texture and high saturated hydraulic conductivity
Marshy or bad drainage: Soil remains wet close to surface for long periods of time. This sort
of soil requires artificial drainage, but if the selected land is properly drained, they can be
considered as suitable for cultivation. Therefore, classification as non-suitable permanently, as it
was defined by the IDEAM study in this case become a to non-suitable conditional (IDEAM, 2009b).
Table 84 Natural drainage - Crop specific classification
Natural drainage - Crop specific classification
Good or fairly
S1- Suitable 8 S1- Suitable 8
good drainage
S2- Suitable with
Moderate S2- Suitable with
4 moderate 4
drainage moderate restriction
Drainage restriction
Excessive or bad S3-Suitable with S3-Suitable with
2 2
drainage severe restrictions severe restrictions
Marshy or very N1- non suitable S3-Suitable with
1 2
bad drainage conditional severe restrictions
Source: Natural Drainage map from IDEAM, (IDEAM, 2009b)and Cenicaña 2011
Palm oil: Classification was suggested by CENIPALMA (IDEAM, 2009b). Importance of natural
drainage is highlighted by Ogunkunle, where it is stated that soil that do not have good drainage
properties are considered as non-suitable for palm oil cultivation (Ogunkunle, 1993).
Sugarcane: Employed classification was undertaken by experts in agriculture from CENICAÑA.
Paiboonsank and DLD consider as highly suitable those soils that have good or very good drainage,
moderately suitable those that have moderated drainage, and marginally suitable those that
exhibit bad or very bad drainage properties (DLD, 1992; Paiboonsak et al., 2004).
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Figure 98 Drainage suitability map

Those areas that are suitable with severe restrictions in terms of drainage properties are near
to bodies of water and in the base of mountain chains. (See figure above).
Despite all this, evolution of soils natural drainage based on maps of low resolution lead to
generalization of patterns, and thus, big areas that seem to count on low suitability, could be,
classified as suitable to a major extent. Therefore the scale of the map should be reduced in
further studies in order to include in a better way those local heterogeneities.
7.3.2.6 Slope
Slope is an element of major importance in crop harvest and managing, allowing machinery
activities or mechanized processes for land handling and feedstock transportation. Erosion
problems become evident in lands that exhibit slopes that exceed 16°, which, in fact are
accentuated by loss of natural cover. Data in terms of slopes do not change abruptly in short time
spans, therefore up-to-date information, although desirable is not mandatory, to undertake a
proper assessment. In this particular case data come from a digital model of elevation (USGS,
2012) and the classification has been provided by both CENICAÑA and CENIPALMA.
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Table 85 Slope - Crop specific classification
Slope - Crop specific classification
0%-12% S1- Suitable 8 S1- Suitable 8
S2- Suitable with S2- Suitable with

12%-25% 4 4
moderate restriction moderate restriction
Slope
S3-Suitable with S3-Suitable with
25%-35% 2 2
severe restrictions severe restrictions
N2 - Non suitable in N2 - Non suitable in a
>35% 1 1
a permanent way permanent way
Source: Slope map from USGS, IDEAM, 2009b and Cenicaña 2011
Palm oil: Those assumptions presented in this information are consistent with the findings in
the literature (Ogunkunle, 1993). In particular, it is considered that those terrains that present
slopes superior to 30° are not suitable and those with slopes between 8° and 0° are perfect for
palm oil cultivation.
Sugarcane: Based on the report presented by EMBRAPA, lands with slight slopes between 2°
and 5° (this last value applies for those clayey lands), are especially suitable for sugarcane
cultivation. Nevertheless, according to some studies these assumptions should be slightly more
detailed (Kuppatawuttinan, 1998; Paiboonsak et al., 2004): all those lands with a slope over 12°
are considered as not suitable, the ones that are between 5° and 12° are marginally suitable and
between 2° and 5° are highly suitable.
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Figure 99 Drainage suitability map

Colombia is considered suitable for sugarcane and palm oil cultivation, except in some small
spots along the Andean mountain chain. It is fundamental to bear in mind that this map is based
on a digital elevation model that has an estimation of 1 kilometer above the earth’s surface, so
some small but still pronounced slopes are flattened.
7.3.3 Agronomic suitability
Different agronomic indicators were compiled regarding their ability to be controlled and
modified. Variables that are hard to be modified (fixed key values) are flooding, erosion soil depth;
whereas there are some others such as soil fertility and natural drainage (variable key values) that
are susceptible to modification, through fertilization processes or water management (irrigation
and drainage systems).
With the intention of adding agronomic factors for those fixed and variable items, it multiplied
values that go from 0 to 8 for fertility and natural drainage, so if value for fertility is 2 while the
value for natural drainage is 8, it results in 16 for variable key values. In the same way, a similar
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system is applied for those fixed key values, thus at the end the agronomic suitability is
summarized on the table presented below. Mathematically, multiplication is a good choice for
adding effects of different factors, because it implies that a profound lack of any of these
characteristics cannot be compensated by the abundance of others, affecting general
classification. Thus, for instance, a land with poor fertility, despite of having good numbers in
drainage and erosion factors will be reported as non-suitable permanently or non-suitable under
some conditions. For sugarcane and palm oil were used the same values (the ones suggested by
IDEAM (IDEAM, 2009b)) and when it was required some assistance and therefore data was given
by experts of CENIPALMA .
Table 86 Matrix to determine agronomic aptitude

Matrix to determine agronomic aptitude
Fertility and Natural Drainage
64 32 16 8 4 2 0
512 S1 S1 S1 S2 S2 N1 N2
Flooding, erosion, soil
256 S2 S2 S2 S2 S3 N1 N2
128 S3 S3 S3 S3 S3 N1 N2
depth
64 S3 S3 S3 S3 S3 N1 N2
32 S3 S3 S3 S3 S3 N1 N2
16 N1 N1 N1 N1 N1 N1 N2
0 N2 N2 N2 N2 N2 N2 N2
In addition, the slope effect was considered in the following matrix. As it is shown in the above
figure, slope does not affect land suitability, given that it is a local effect, and those effects tend
to disappear when the resolution of the employed maps improves. It is advised that a slight
overestimation of suitability potential might emerge from this setback.
Table 87 Matrix to determine agronomic aptitude (including slope)

Matrix to determine agronomic aptitude
(including slope)
Slope
0 1 2 4 8
0 N2 N2 N2 N2 N2
Agronomic
1 N2 N1 N1 N1 N1
factors
2 N2 N1 S3 S3 S3
4 N2 N1 S3 S2 S2
8 N2 N1 S3 S2 S1
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Figure 100 Agronomic suitability map
Source: CUE
In general agronomic suitability is lower for palm oil crops than the one exhibited for
sugarcane crops, mainly due to the need of deep soil features.
7.3.4 Biophysical aptitude
The potential of biophysical expansion for palm oil and sugarcane is established when it
contrasts agronomic suitability and climatic aptitude for each crop.
Table 88 Matrix to determine biophysical aptitude

Matrix to determine biophysical aptitude
Climate
0 1 2 4 8
0 N2 N2 N2 N2 N2
Agronomic
1 N2 N1 N1 N1 N1
factors
2 N2 N1 S3 S3 S3
4 N2 N1 S3 S2 S2
8 N2 N1 S3 S2 S1
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7.3.4.1 Suitability map for palm oil
In general, great areas of Colombia are highly suitable for palm oil cultivation. Suitability is
mainly limited for the high level of precipitation of the Pacific coast (up to 7000 mm/y) or by scarce
rain in Guajira Peninsula (levels below 500 mm/y). Furthermore, some soils have inadequate
conditions in terms of soil depth in the Eastern region just at the base of the Andean mountain
chain, limiting the suitability for palm oil cultivation.
Figure 101 Biophysical factor suitability map for Palm oil crops.
Source: CUE
The aptitude or suitability model was validated with the current area where crops are held in
the south-western region (Department of Nariño), eastern region (Department of Meta), northern
region (Departments of Magdalena and Cesar) and Central region (Department of Santander) and
in fact it shows a relative similitude (see figure below). Nevertheless, different levels of detail
between the suitability maps (1:500.000) and cultivated areas (less than 5km resolution) lead to
conclude that some of the crops are established in some non-suitable lands. However, this
exercise must be taken into account as a mere approximation and general guideline for detecting
potential areas of expansion, although the level of detail is not big enough for setting individual
territorial planning.
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Figure 102. Detailed biophysical suitability map
Note: (every pixel:5km x 5km) Every pixel has been zoomed in the current palm oil crops areas
(noted in blue) in Nariño, Meta (2), Magdalena y Cesar (3) y Santander (4).
Comparing the suitability map with the model of suitability suggested by FAO (see figure
below), it can be observed that in general suitability patterns are quite similar (FAO and IIASA,
2007). The information for the maps elaborated by FAO is a set of climate parameters (thermal
climate, growth of plant time span and degree of climatic variability), characteristics of soil (depth,
fertility, drainage, texture), slope and land use (excluded natural forest and protected areas). As a
consequence similar patterns applied, which lead to analogous patterns but with the presence of
some slight discrepancies. For instance, in the North of the pacific coast (except for Department
of Nariño) is considered as non-suitable by the study carried out by IDEAM (IDEAM, 2009a) due to
high precipitations, while the study presented by FAO classified as potentially apt.
In addition, a detailed spatial study on sustainability of different crops shows similar suitability
patterns for palm oil in Antioquia (potential around Caucasia and along the Magdalena River in
the border with the Department of Santander) (Alfonso Buitrago, Correa Roldán, & Palacios
Botero, 2007).
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Figure 103 FAO suitability map for palm oil crops
Source: (FAO and IIASA, 2007)
In general the most suitable areas were identified in the eastern region of Colombia regarding
biophysical conditions (Departments of Meta, Guaviare y Caquetá), in the northern region
(Department of Magdalena, nearby to Panamanian border) and in the inter-Andean valleys
(Department of Santander and the northern zone of Antioquia). The largest areas, suitable for
palm oil cultivation, though, are located in the eastern region of Colombia. Nevertheless, high
impact on biodiversity and substantial carbon emissions that emerge from turning wild forest into
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energy crops constrain to a great extent potential expansion in these areas. These effects are
discussed further down.
7.3.4.2 Suitability map for sugarcane crops
In a general sense, big extensions of land in Colombia are suitable for sugarcane cultivation.
However, again, just like it the case of palm oil, extreme (high) levels of annual precipitation in the
Pacific coast and the Amazon region narrow down expansion potential.
Figure 104 Biophysical factor suitability map for Sugarcane
Biophysical factor suitability map for Sugarcane crops (left).Detailed zoom in of the Cauca River Valley (blue:
current sugarcane crops) (right).
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When the model is compared with the areas that are currently under production of sugarcane,
it is observed that a big portion of the geographic valley of Cauca River are considered as suitable
and moderately suitable, and some other minor areas as suitable with severe restrictions.
Figure 105 FAO suitability map for sugarcane crops
Source: (FAO and IIASA, 2007)
By comparing this map of suitability for sugarcane crops with the one presented by FAO (figure
above), it is observed that general patterns are emulated, notwithstanding some subtle
differences: Due to high a precipitation factor in the Pacific region, that particular region was ruled
out of this study as a suitable area under any circumstances; although it was included in the FAO
report as an area of mild suitability. Moreover, big extensions located in the Departments of
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Magdalena and Cesar were included as suitable in the study, whereas the FAO study considered
them as lands with only mild suitability. On the other hand, the map of suitability presented by
FAO shows less suitability for those areas in the south of Colombia. This fact could suggest a
mistake in the use of parameters in the present study (e.g. relative humidity), therefore, as a way
to exemplify, the Amazon region was not excluded for biophysical parameters. Nevertheless,
when social and environmental criteria are taken into consideration some of these controversial
areas are removed in terms of a holistic suitability for sugarcane cultivation.
7.3.5 Potential productivity
The yield of the harvest is highly dependent on soil conditions, genetic characteristic of the
seed material, and managing agricultural practices. Due to local differences, it is impossible to
establish as precise a potential yield for all Colombian territory. It is especially hard to relate
biophysical factors to crop yield, due to the fact that most factors are capable of being
manipulated by agricultural practices (irrigation, protection against floods, shadow cover,
fertilizations, etc.). Nevertheless, the approach used in this study is trying to establish a yield map
more generally indicating the typical ranges of productivity that are used in the map of GHG’s
emissions. Therefore the categories of suitability are linked with the values of productivity. The
correlation between suitability and productivity was done based on values from the literature and
field data from the studied spots.
7.3.5.1 Productivity of the sugarcane
Maximum productivity is based on real numbers from the geographic valley of Cauca River.
Below is shown different yields for the farms in the sample (tons per hectare per year). Under
optimal conditions the average production is 120 tons /h/y. Mild productivity (suitability class 2)
is near to 90 tons /h/y.
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Figure 106. Annual yields of sugarcane spotted in the sampled sites
Yields for the less suitable zones have been evaluated based on the crops statistics presented
by FAO (FAOSTAT, 2010). For zones in the category with non-suitable conditional, it was assumed
a potential productivity of 50 tons /h/y and 65 tons /h/y for suitable land with severe restrictions.
Table 89 Sugarcane: annual yield assumed per every type of suitability
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7.3.5.2 Productivity in oil palm
Maximum productivity is based on real yields that have been collected during field trips. In
the figure below is presented yields from the farms that belong to the sample (assessed in tons
/h/y). Under optimal conditions, average yield is close to 25 tons of bunches of fresh fruit per h/y.
Moderate yields (i.e. those that have suitability class 2) are close to 20 tons/ h/y).
Figure 107 Annual yields of Palm Oil in Colombia. (E) East (N) North (Center).
Yields for the less suitable zones have been evaluated based on crops statistics presented by
FAO (FAOSTAT, 2010). It has been assumed marginal yields of 10 tons of fresh fruit for the category
labeled as non-suitable conditional, 14 tons /h/y for the category ‘suitable with severe
restrictions’.
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Table 90 Palm oil yield assumed per every type of altitude
7.4 Legal restrictions
In order to determine the expansion potential for bioenergy crops those areas that are legally
protected (natural areas, indigenous reservoirs, and collective titles of black communities) were
excluded. Natural parks are marked with permanent constraints (Parques Nacionales Naturales
de Colombia, 2011), while indigenous reserves and collective titles of black communities exhibit
conditional limitations (IGAC, 2010). These limitations make reference to two key aspects:
1. these territories belonging to a communal proprietorship; therefore they cannot be
sold, leased or transferred to a private initiative
2. Biofuels projects that are considered to be implemented within these areas can be set
in motion only under leadership and approval of the affected communities.
Below, it is possible to see natural parks, indigenous reservoirs, and collective titles of black
communities that constitute a constraint for a potential expansion of bioenergy crops. These
limitations exclude big areas of the Pacific coast, the Amazon region and Guajira Peninsula, to be
considered as suitable for biofuel feedstock crops establishment.
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Figure 108 Map of legal restrictions
Grey areas do not represent any restriction.
326
On the other hand, those forest lands that are protected by law 2 of 1959 are restricting
potential expansion of sugarcane and palm oil through legal mechanisms (Congreso de Colombia,
1959). All forest areas are excluded later on, not only to comply with legal criteria, but also to
avoid biodiversity loss and diminishment of hydrologic services that are provided by forest
systems.
Figure 109 Forest ecosystems protected by the law
law of the Forest Reserve Zones (Law 2 of 1959).
Source: (IDEAM, 2007)
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7.5 Ecologic limitations
In a former section, it was determined potential areas of suitability for biofuels crops taking
into the account biophysical factors. In this section biophysical areas are even more restricted by
use of environmental criteria, such as carbon emissions, water shortages and biodiversity.
7.5.1 Greenhouse gases (GHG’s) emissions
Current studies on GHG’s show the importance of considering land use change (LUC) regarding
environmental performance of biomass-based fuels. According to Fargione et. al. the LUC
generated by biofuels production might cause a “carbon debt” by the release of great amounts of
CO2 that is trapped underneath the surface soil layer and that has been stored for years. According
to these authors, if palm oil plantations are established in a natural forest, it would take up to 400
years to offset the carbon debt created by this bioenergy project. Even more, if sugarcane
plantations were established in an old savannah it would take close to 17 years to settle such
carbon debt (Fargione et al., 2008).
In this study a calculation of a carbon debt is drawn for potential plantations of sugarcane and
palm oil. In fact a regional LCA is implemented for every grid in Colombia (5km x 5km) and based
on the GHG’s balance obtained the carbon debt.
328
Figure 110 Concept for modeling a GHG’s emissions map.
The first step is to calculate the amount of GHG’s emissions related to LUC. Later, a biomass
map is established, and a map that depicts carbon contained in soil for reference in Colombia.
Additionally biomass and carbon in soil reserves were calculated for potential land where
potential bioenergy feedstock crops can be established. Finally potential LUC effects were
evaluated for eligible areas destined for biofuel production initiatives. Maps of potential
productivity are used for expressing the change of carbon reserves as kg of CO2 for every kg of
feedstock for biofuels (instead of kg per hectare). In agricultural stages, as well as processing and
usage stages of biofuels it employed values given by default for GHG’s emissions. Finally, it
calculated the carbon debt and the net benefit if fossil fuels are changed for biofuels. A general
overview is illustrated in the figure above.
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7.5.1.1 Carbon emissions due to LUC
This section analyses carbon emissions that emerge as a consequence of land use changes
(LUC). Reserves of carbon within the soil are determined by the carbon content in the biomass
and the organic carbon that is embedded in the fertile layer of the soil (first 30cm).
Figure 111 Soil carbon reserves
Above-ground biomass, Soil Organic Carbon and Below-ground biomass.
Biomass embedded in plant store a substantial quantity of carbon at ground level and below
ground level in several ecosystems. Above Ground level Biomass (AGB) associated with annual
herbaceous and perennial plants is fairly low, while the AGB that is related to woody plants can
accumulate a vast amount of carbon (up to hundreds of tons per hectare) throughout its lifespan.
Thin and thick roots are probably the main component of Below Ground level Biomass (BGB),
which can be important to both herbaceous and woody systems. When ecosystems change from
a humid climate to a dry one, plants distribute an increasing proportion of biomass below ground
level.
Total carbon reserve [tC/ha] = carbon of above and below ground level biomass [tC/ha] +
Organic carbon of soil [tC/ha]
Assessment of carbon emissions is based in the following assumptions:
 The assessment accounts for the direct land use changes (LUC) and do not include the
indirect land use changes (ILUC).
 Reference year (for data availability is 2000)
 Change in the carbon reserves are assessed in a period of 20 years (IPCC/EU standard)
 It was assessed biomass above ground level (i.e. plants), below ground level (i.e. roots)
and carbon embedded in the ground in the years 0 and 20.
330
 Data sources for carbon reserves come from regional studies (IPCC Level 2/3) or if there
is no available data the default value is given by (IPCC level 1).
Basically this means, that carbon reserves for soil in 2000 (step 1) is compared with carbon
reserves for biofuel crops (step 2). It calculates the difference in carbon reserves for 20 years as
an average change in the reserve of carbon per year.
Figure 112 Assessing model for calculating GHG’s emissions due to LUC
The following figure shows an example of a palm oil cultivation in a natural forest and
agricultural soil.
331
Figure 113 LUC from natural forest and agricultural land biofuel crops (palm)
LUC from natural forest to palm oil cultivation (left), and from agricultural land (non-energy purposes) to
biofuel crops (right).
The red area indicates carbon loss and the blue area represents the increase in carbon reserve.
The following section describes the change in AGB and BGB and change in organic carbon in the
soil. As a way of a summary, it also calculates total carbon change and carbon debt.
Carbon change in biomass

With the purpose of evaluating the change of carbon in biomass, it assessed the reserve of
above and below ground level biomass for land use for the reference year (2000) and the potential
of bioenergy crops for biofuel projects after 20 years. Further down are described the
methodologies that were employed and presents corresponding maps.
Reference land use – Carbon change in Biomass
Below is defined a flow chart of those processes that are employed to identify and quantify
carbon reserve of biomass for the reference land use (2000).
332
Figure 114 Process to evaluate biomass carbon reserve for the reference use soil.
Current land use map was created based on the different types of land use and vegetation
zones (zones of life or green coverage). The soil coverage map from IGAC in Colombia
acknowledges 29 different kinds of soil coverage (see map below). This study was focused on the
gap between 1990 – 2000 (IGAC and CORPOICA, 2002). It created a detailed map with vegetation
zones in Colombian territory, as it was addressed by the guidelines fixed by the IPCC (IPCC, 2006),
creating new climatic zones (eco-zones) in Colombia.
Figure 115 Map of reclassification of eco-zones and Map of land use
Map of reclassification of eco-zones by vegetation type and Map of land use defined by FAO
and IPCC (left) and Map of land use (IGAC)
Source: CUE
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Most land in Colombia is classified in these categories as follows:
 tropical forest (735,133 km2),
 wet forest caecilian (184,771 km2)
 and tropical mountain system (207,296 km2).
A limited quantity of land is located in tropical bushes (9,637 km2) and tropical dry forest (1,978
km2).
Combination of land uses and vegetation zones draw 94 carbon zones. Their superficial areas
(km2) are defined in appendix 16.
For each one of the 94 combinations of AGB and BGB biomass were taken values provided for
IPCC. If the values given by the IPCC are not available, some regional estimations from similar
vegetation zones are used instead.
Below ground level biomass (BGB) is calculated as AGB times the ratio between stem and root
(RS-R). Biomass’ carbon content is calculated by multiplying the content of dry matter times the
carbon fractionation (CF). The typical CF of dry biomass is assumed as 0.47 in tropical systems.
Maps of AGB and BGB are presented here.
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Figure 116 Total carbon biomass of the reference land use (in tons of carbon per ha)
Source: CUE
Carbon reserves for biofuel feedstock cultivation

The typical growth of biomass and CF (kg C / kg biomass) must be quantified in a period of 20
years for sugarcane and palm oil.
335
Figure 117 Cumulated biomass of palm oil (left) and sugarcane (right).
Red line indicates the average biomass accumulated in a period of 20 years.
As is illustrated below, values for reserve of superficial biomass, RS-R and CF were established from those
reference default values found in the literature. Values used for sugarcane and palm oil are described below:
Figure 118 Process to evaluate biomass carbon reserve for the crops for bioenergy
Plantation of oil palms

The following table describes the AGB and BGB of palm oil plantation in Indonesia in different
ages (Vlek, Denich , Martius, Rodgers, & Giesen, 2005).
Table 91 Distribution of the carbon reserves above and below ground for Palm Oil
Distribution of the carbon reserves above and below ground for Palm Oil in
Sumatra, Indonesia
Belowground
Above ground Below ground/
System Biomass
Soil biomass total (%)
(Mg/ha)
Imperata cylindrica 137,6 2,9 3 97,9
3 year-old 161,2 5,4 11,2 93,3
10 year-old 482,2 10,4 38,9 92,1
Palm oil
20 year-old 155 16,6 48,6 71,7
30 year-old 232,4 21,6 62,8 75,3
Source: (Vlek et al., 2005)
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In order to verify if the estimations of biomass of Southeast Asia can be applied in Latin
America, it referred to another study implemented in Costa Rica, that actually quantified 25 tons
of carbon per hectare in an palm oil plantation that was 7 years old (Subía Loayza & Cueva Moya,
2005). This last estimation averages out the estimated AGB for Indonesia for plantations with ages
between 3 and 10 years (that is, 93 tons of dry matter per ton and the BGB is 13.5 tons of Carbon
per hectare, which draws a RS-R =0.3), assuming a rotation of 25 years.
Plantation of sugarcane
The development of simulated plant (model CS) for AGB of sugarcane in Brazil varies from
28.7 tons per hectare (starting in May - the harvesting season) to 9.1 tons per hectare (ending in
November) with an average of 17.5 tons per hectare (I.C. Macedo, 2010).
Figure 119 Development of a simulated plant for the AGB of sugarcane in Brazil
Above ground biomass (dry)

35
30
25
20
t/ha
15
10
5
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
.
Source: (I.C. Macedo, 2010)
In the work of Smith (J. P. Smith, Lawn, & Nable, 1999) it assessed the relationship of stem-
roots for sugarcane sowed in a flower pot and found that such ratio fell right after having achieved
a peak value of 0.42 kg/kg 50 days after having been planted (I.C. Macedo, 2010). Therefore it
assumes that AGB is approximately 17.5 tons of dry matter per hectare, and the average RS-R it
is assumed as 0.25.
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Figure 120 Ratio Stem-root (based on dry weight) for sugarcane planted in pot.
Source: (I.C. Macedo, 2010)
Changes in the carbon reserves of biomass due to land transformation

The effect of the LUC in AGB and BGB is calculated as the difference between the carbon
reserve of the biofuel feedstock (in this case sugarcane and palm oil) and the carbon reserve that
is above and below ground before the LUC takes place (in 2000).
𝐴𝐺𝐵𝑡1 = (𝐴𝐺𝐵 + 𝐵𝐺𝐵)𝐵𝑖𝑜𝑓𝑢𝑒𝑙𝑠 − (𝐴𝐺𝐵 + 𝐵𝐺𝐵)𝐼𝑛𝑖𝑡𝑖𝑎𝑙
𝐴𝐺𝐵𝑡1 = Above-ground biomass after the land use change (t C per Ha)
(𝐴𝐺𝐵 + 𝐵𝐺𝐵)𝐵𝑖𝑜𝑓𝑢𝑒𝑙𝑠 = Above-ground biomass for biofuel feedstocks (t C per Ha)
(𝐴𝐺𝐵 + 𝐵𝐺𝐵)𝐼𝑛𝑖𝑡𝑖𝑎𝑙 = Above-ground biomass for the reference soil (t C per Ha)
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Figure 121 Potential change in the biomass reserves
If land is employed for palm oil cultivation (left) and for sugarcane cultivation (right). Assessed
in tons of carbon per hectare.
Soil organic carbon

Despite the fact that both types of carbon (organic and inorganic) are found in the ground,
land handling and use have a great impact on reserves of soil organic carbon (SOC). Lands of
mineral type are, most of the time, classified as moderate to good in terms of drainage and are
predominant in almost all ecosystems (with exception of wetlands) and generally they account
with a relatively low amount of organic matter (this is, between 0 and 15% of organic matter).
Organic soils (mainly peat and manure) have a minimum of 12 to 20% of organic matter per unit
of mass and are developed specifically under insufficient drainage conditions in wetlands, where
substantial amounts of organic matter accumulates as the time passes. Stored carbon in organic
soils will decompose easily when soil conditions turn aerobic after soil drainage.
A great deal of the inputs for SOC come from fallen leaves that are accumulated in the surface
layer of soil, therefore organic matter tends to be concentrated in the superior part of land
horizon, with almost half of SOC in the first 30 cm in the upper layer. Organic carbon contained in
this profile is generally the one that presented major chemical decomposition, physical erosion
and the one that faces major exposure to natural and anthropogenic shocks.
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The upper layer (between 0 and 30 cm) includes the soils that are directly related to
interaction with the atmosphere, and these soils are more sensitive to environmental changes and
LUC.
Reference condition for SOC is under the category of native land (which means non-degraded
land, land under native vegetation without human interventions or improving actions), which is
used for assessing the relative effect of LUC and reserve quantity of SOC (implying, for instance,
the relative difference in carbon storage under the reference condition and any other land use,
like food crop cultivation). Reference reserves of soil organic carbon were drawn through the
association of FAO land classification and the types of soil that are given by default by the IPCC,
through rules of pedotransfer functions, as described in Batjes (Batjes, 2010).
Figure 122 Assessment method for the change in Soil organic carbon
Source: Adapted from (Batjes, 2010)
For the geologic data for Colombia it used as primary source a set of unified land properties
developed for Latin America, using a land and terrain data base with a scale 1:5,000,000 (ISRIC-
WSI, 2005) and land auxiliary profiles that belong to the data base WISE. The main land was
described and characterized, using 1660 surveys of land profiles, selected by experts in land at a
national level. The pedotransfer functions that were used (proposed by Batjes 2010), report to the
units of land of SOTERLAC the proportion of land classes by default from the IPCC (IPCC, 2006).
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The size of SOC reserve is influenced by activities of LUC, just like conversion of pasture lands
and wood lands into food crop cultivation lands, which can loose between 20% and 40% of the
original SOC in mineral soils. Regarding land use, a variety of agricultural managing practices might
have a significant impact in SOC storage as well, particularly in crops and pasture lands. The LUC
and managing activities can influence SOC, by changing erosion rates in a predetermined way,
creating a subsequent loss of carbon; a portion of eroded carbon comes back to the atmosphere
as CO2, whereas the remaining fraction is stored in other locations.
Hence, with the intention of calculating the current SOC reserve in Colombian soil (SOC0), the
reference reserve of SOC (SOCref) is multiplied by the change factor in reserve according to the
guidelines given by de IPCC (IPCC, 2006). The same approximation was employed to calculate the
reserve of carbon in the soil if the land is used for energy crops (SOCT).
Reference Soil organic carbon (SOCref)

Estimation of the SOCref is classified in carbon per hectares and it is presented below as a
function of the proportion of the types of land from IPCC and the maps of vegetation zones of
Colombia, previously examined.
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Figure 123 Map of carbon reserve of a reference natural system
Source: CUE
The content of SOC in Colombia varies between 0 and 130 tons per hectare approximately,
for the first 30cm depth of ground. A small fraction of organic soils is found in wetland areas that
are relatively small located in the northern region of Colombia, which were classified as non-
suitable for the LUC criteria proposed in this study.
Soil organic carbon of current land use
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The SOC depends mainly on the natural characteristics of land, characteristics of crop and
agricultural management. Firstly, it is required to determine SOC for the year 2000 (SOC0). For
natural ecosystems the SOC0 is equal to SOCref, however for the land that is used for crop purposes
(either food or energy) the SOCref changes due to crop management. The SOC0 for the existent
categories of land use is estimated by multiplying SOCRef reserves times change relative factors in
land carbon reserves. These factors are widely defined and they are broken down as follows:
1. Land use factor (LUF), which represents changes in carbon reserves associated with the
type of land.
2. Management factor (MF), which reflects specific key practices for a particular sector of
land use (that make reference to the kind of farming or tilling routines employed on the
land)
3. Intake factor (IF), which embodies the level of carbon that is contained by the soil.
Based on that, Soil organic carbon can be represented as follows:

𝑆𝑂𝐶0 = 𝑆𝑂𝐶𝑅𝐸𝐹𝑐,𝑠,𝑖 ∗ 𝐿𝑈𝐹𝑐,𝑠,𝑖 ∗ 𝑀𝐹𝑐,𝑠,𝑖 ∗ 𝐼𝐹𝑐,𝑠,𝑖
𝑆𝑂𝐶0 =Organic carbon reserve in the last year of the timespan, (ton of carbon per ha).
𝑆𝑂𝐶𝑅𝐸𝐹𝑐,𝑠,𝑖 = Organic carbon reserve in the soil of reference, (ton of carbon per ha).
𝐿𝑈𝐹𝑐,𝑠,𝑖 =Change factor in reserve due to land use systems, or subsystems for a particular kind
of land, (no assessment unit).
𝑀𝐹𝑐,𝑠,𝑖 = Change factor in reserve based on the management system of land, (no assessment
unit).
𝐼𝐹𝑐,𝑠,𝑖 = Change factor in reserve based on the intake of organic matter (no assessment unit).
c = Climatic zones
s = type of soil
i = set of management system applied.
Change relative factors in reserves (LUF, MF, and IF) take values from 0 to 1 and the values of
each type of soil are given in appendix 16. Values for SOC0 are calculated based on the change
relative factors in reserves and the value of SOCref (see figure below).
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Figure 124 Relative Change factors of reserves (left) and SOC0 for Colombia
Source: CUE
Difference between the map of SOCref and SOC0 is only for areas that are currently under
cultivation (areas where the reserves relative change factor is not equal to 1, see figure above).
Reserves of soil organic carbon (SOC) for biomass-based fuels

With the purpose of calculating related emissions with change of SOC, it models the influence
of SOC when feedstocks for biofuels are cultivated. Accordingly, it is assumed that the change in
a natural area or prairies for energy crops turn in a SOC reduction. This SOC is calculated based on
the SOC before the land use change and (SOC0 that is equal to SOCref) times the factors of relative
change in the reserves for sugarcane and palm oil.
Factor of relative change of reserves in those crops cultivated in the long run in wet climates
(i.e. sugarcane) is approximately 0.5 (IPCC, 2006).
For perennial crops, the factor of relative change in reserves is equal to 1 regarding the
guidelines provided by the IPCC. Factor equal to 1 is supported on the assumption that crop
management does not lead to soil erosion, when it changes native vegetation. Nevertheless, that
situation is not always accurate for tree plantations. In fact, observation of 100 different samples
of study show a reduction up to 30% in the average of soil carbon content when forest land are
turned into crop plantations (Germer & Sauerborn, 2008). Therefore a factor of 0.8 is much more
realistic and used in this study instead of the generic values propose by the IPCC.
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If food cultivation land (or any other agricultural purpose) is turned into sugarcane or palm oil
the change factor is assumed as 1, leading to zero changes in SOC.
Figure 125 SOCt after land use change to palm (left) and sugarcane (right).
Change in the reserve of soil organic carbon

The GHG’s emissions related with SOC change due to the introduction of biofuel feedstocks
are calculated as the difference of SOC of the previous land uses (SOC0,i) and after 20 years of
biofuel cultivation (SOCt).
[𝑆𝑂𝐶0,𝑖 − 𝑆𝑂𝐶𝑡 ]
∆𝐶𝑠𝑜𝑖𝑙 = ∑
𝑇
𝑖
∆𝐶𝑠𝑜𝑖𝑙 : Annual change in carbon reserves in mineral and organic soils (tons of carbon per
hectare)
𝑆𝑂𝐶𝑡 : Reserve of soil organic carbon at the end of the inventory period (tons of carbon per
hectare)
𝑆𝑂𝐶0 : Reserve of soil organic carbon at the beginning of the inventory period (tons of carbon
per hectare)
𝑖: Type of soil
𝑇: It is the time dependence of those factors of change in the reserve. This span is the time
period by default for the transition between the equilibrium of SOC values.
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The following figure illustrates the change in SOC for palm oil and in the next one the change
in SOC for sugarcane.
Depending on the type of land, if sugarcane plantations are established, up to 55 tons of
carbon are emitted. These soils are rich in organic carbon content, and generally located in the
nearby of rivers and mountain chains. Palm oil cultivation has a lesser effect in the change of SOC,
hence the maximum quantity of carbon emitted is 22 tons per hectare.
Figure 126 SOC Change after turning the reference soil into palm oil crops
(assessed in tons of C per ha).
Source: CUE
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Figure 127 SOC Change after turning the reference soil into sugarcane crops
(Assessed in tons of C per ha).
Change in the total reserve of carbon by account of land use change (LUC)
Total emissions due to LUC are calculated by using AGB, BGB and SOC. Values for sugarcane
and palm oil are presented below. Given than palm plantations have a carbon reserve relatively
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high, just the conversion of areas that formerly were high in carbon content (typically natural
forest) would create carbon emissions (depicted in red). Green areas represent areas where the
carbon reserve would be increased if palm oil were cultivated. This is the normal case for non-
forest land in the eastern region, north zone and also land that has been already used in the
Andean valleys.
Due to the fact that the average carbon reserve for sugarcane is relatively low, just a few areas
in the Andean valleys present an increment in the carbon reserve.
Generally, not only carbon embedded in biomass is dominant. The type of soil also determines
total emissions of carbon due to the LUC. This is the case for organic land that stores high content
of carbon.
Figure 128 Change in the carbon reserve due to LUC from current use
Change to palm oil production (left), and sugarcane production (right) .
Notwithstanding, not all these lands are suitable for cultivation. With the purpose of including
the biophysical aptitude for biofuels feedstock cultivation, the amount of GHG’s emissions per kg
of biomass harvested is calculated (sugarcane and bunches of fresh fruit of palm oil).
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Figure 129 Change in carbon reserve due to current land use change to palm oil crops
(tons of CO2 per kg of FFB).
Source: CUE
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Figure 130 Change in carbon reserve due to current land use change to sugarcane crops
(tons of CO2 per kg of FFB).
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7.5.1.2 Relating greenhouse gases (GHG’s) emissions of specific
locations to the default result of the life cycle assessment (LCA)
In the following step, carbon emissions by region due to LUC are related to results from LCA,
in order to calculate the net benefit of the impact of using biofuels instead of fossil fuels.
Therefore, the values given by default were added up (in Kg CO2 per vehicle km) for crop material
transportation (included infrastructure), processing and usage, and emissions of GHG’s of
reference fossil fuels was subtracted (see equation).
𝐶𝑂𝑛𝑜𝑛−𝐿𝑈𝐶 × 𝑟𝑒𝑓_𝑝𝑟𝑜𝑑
𝐶𝑂2𝑒𝑚 = + 𝐶𝑂2∆𝐶 + 𝐶𝑂2𝑝𝑟𝑜𝑑 + 𝐶𝑂2𝑡𝑟𝑎𝑛𝑠 + 𝐶𝑂2𝑢𝑠𝑒 − 𝐶𝑂2𝑓𝑜𝑠
𝑙𝑜𝑐_𝑝𝑟𝑜𝑑
𝐶𝑂2𝑒𝑚 : Net emissions of CO2
𝐶𝑂𝑛𝑜𝑛−𝐿𝑈𝐶 : Emission during crop stage without LUC
𝐶𝑂2∆𝐶 : Emissions of change in carbon reserves (SIG)
𝐶𝑂2𝑝𝑟𝑜𝑑 : Emissions during production stage (fixed value)
𝐶𝑂2𝑡𝑟𝑎𝑛𝑠 : Emissions during transportation stage including infrastructure (fixed value)
𝐶𝑂2𝑢𝑠𝑒 : Emissions during use stage (fixed value)
𝐶𝑂2𝑓𝑜𝑠 : Emissions of the fossil fuel reference (fixed value)
𝑟𝑒𝑓_𝑝𝑟𝑜𝑑: Reference productivity. Calculation LCA (fixed value)
𝑙𝑜𝑐_𝑝𝑟𝑜𝑑: Local productivity of crop (SIG)
Land use change: maps presented in the previous two figures for sugarcane and palm oil
correspondingly were used. Values (kg of CO2 per unit of harvested biomass) are multiplied by the
conversion factor listed in the following table with the purpose of calculating GHG’s emission for
driven kilometers. Conversion factor itself is based on the result of the LCA (taking into the
account efficiencies and distributions).
Crop: Besides LUC, crop impact depends vastly on the climatic characteristics and soil
characteristics, genetic material and agricultural management of biofuel crops. The current impact
of biofuel crop is based on the values defined in the LCA. Within this study of the crop impact, is
in turn undertaken by region, based on the crop yield in a specific spot.
Processing: for the processing stage, the values found in the LCA were used, taking into the
account that processing of biofuels is relatively simple and there are few differences in
technologies.
Transportation: for biomass transportation and biofuels different types of vehicles and
transportation distances previously established were estimated. These estimations are based on
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field data used for the LCA study. Nevertheless, section 7.5.1.4 shows sensibility to transportation
purposes.
Use and reference fossil fuel: For biofuel use and reference fossil fuel (substitution) values
defined by LAC are employed.
Table 92 By-default values for the GIS calculation

By-default values for the GIS calculation
Stage of the life cycle Unit Palm oil Sugarcane

Infrastructure Kg CO2eq / vehicle.km 0,026 0,025
Crop Kg CO2eq / vehicle.km 0,02 0,02
Productivity ton/ha 18,78 113,53
Conversion factor Kg of biomass / vehicle.km 0,21 1,05
Processing Kg CO2eq / vehicle.km 0,06 0,01
Transport Kg CO2eq / vehicle.km 0,001 0,006
Use Kg CO2eq / vehicle.km 0,0017 0,0056
Total Kg CO2eq / vehicle.km 0,11 0,06
Diesel substitution Kg CO2eq / vehicle.km 0,19
Gasoline substitution Kg CO2eq / vehicle.km 0,23
Source: CUE
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Figure 131 Relative GHG’s emissions for palm oil-based biodiesel
Savings are represented in green whereas emissions in red.
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Figure 132 Relative GHG’s emissions for sugarcane-based ethanol
Savings are represented in green whereas emissions in red.
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As it shows in the last 2 figures, potential carbon savings are achieved in the northern region
of Colombia, in the inter-Andean Valleys and the Llanos region. As soon natural areas are turned
into crops the carbon balance becomes negative.
7.5.1.3 Carbon debt by region for biofuels in Colombia
LUC in most cases creates carbon emissions. The quantity of CO2 that is released in the first
20 years of this process is called soil conversion “carbon debt” (Fargione et al., 2008). As the time
passes, biofuels from converted soils can offset this carbon debt, if its production and combustion
have net emissions below emissions of the LCA that belong to fossil fuels that are being
substituted. Below is shown the duration of restoring carbon debt, expressed in years.
𝐶𝑂2∆𝐶_𝐿𝑈𝐶
𝐶𝐷 =
𝐶𝑂2𝑐𝑟𝑜𝑝_𝑛𝑜_𝐿𝑈𝐶 + 𝐶𝑂2𝑝𝑟𝑜𝑑 + 𝐶𝑂2𝑡𝑟𝑎𝑛𝑠 +𝐶𝑂2𝑢𝑠𝑒 + 𝐶𝑂2𝑓𝑜𝑠 × 𝛼 × 𝑝𝑟𝑜𝑑𝑢𝑐
𝐶𝐷 = carbons debt [years]
𝐶𝑂2∆𝐶_𝐿𝑈𝐶 = CO2 emissions of the carbon reserve change due to LUC (layer GIS) [kgCO2/ha]
𝐶𝑂2𝑐𝑟𝑜𝑝_𝑛𝑜_𝐿𝑈𝐶 = CO2 emissions in the cultivation stage without LUC [kgCO2/v.km]
𝐶𝑂2𝑝𝑟𝑜𝑑 = (fixed value) [kgCO2/v.km]
𝐶𝑂2𝑡𝑟𝑎𝑛𝑠 = (fixed value) [kgCO2/v.km]
𝐶𝑂2𝑢𝑠𝑒 = (fixed value) [kgCO2/v.km]
𝐶𝑂2𝑓𝑜𝑠 = (fixed value) [kgCO2/v.km]
𝛼 × 𝑝𝑟𝑜𝑑𝑢𝑐 = Conversion productivity factor [v.km/ t feedstock]
As is shown in the figure below, sugarcane expansion to almost all areas of Colombia creates
a carbon debt. Particularly in the Amazon region, in river basins and in the base of the Andean
mountain chain, it is possible to observe big carbon debts between 60 and 130 years. Due to the
great carbon reserves of palm oil plantations, carbon debt in this case exhibits a less pronounced
trend in comparison with sugarcane experience, going up to 70 years (in the Amazonas region and
in the bases of the Andean mountain chain).
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Figure 133 Carbon debt of palm oil-based biodiesel produced in Colombia [years].
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Figure 134 Carbon debt of sugarcane-based ethanol produced in Colombia [years].
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7.5.1.4 Sensitivity for transportation distances
Former calculations, mentioned above, were drawn based on average transportation

distances. For economic reasons, driven distances from feedstock crops to processing plants do
not exceed 100 km. Therefore, if a new plantation is created, it is required to install a new plant
if there is no plant at a reasonable distance. Based on such estimation, distances were ‘defined
distances’ as considered in former calculations (using real transport distances).
However, in order to show sensitivity of transportation as a whole, distances from agricultural
field to not only to biofuel processing plants but also to retailer fuel service stations in Bogotá
were calculated.
The first step consisted in mapping all the existent and planned processing plants for sugar
production or oil extraction. Afterwards a grid of 5km x 5km was set on the Colombian map in
order to calculate the distance from crops to the nearest plant. With the purpose to correct the
difference between the aerial scale assessment and the actual terrestrial assessment it assumed
a correction factor of 1.3.
Transportation distances data from biofuel production plants to blending stations in Bogota
were taken from real data on the road. Distances were calculated with a network analysis tool
from ArcGis. As a standard vehicle it was assumed a truck of 32 tons, which releases 0.185 kg of
CO2 per ton-km (tkm).
Transport distance is multiplied times the quantity of biofuels that are required to operate a
vehicle during a kilometer (biofuel ton/driven kilometer). Values are obtained from the LCA and
the units of assessment are tkm per vehicle driven kilometer, noted here as v.km.
Figure below are related GHG’s (kg CO2 eq) with the transportation of feedstock, and
sugarcane-based ethanol and palm-based methyl ester. For instance, for sugarcane, long
distances feedstock transportation are linked to more GHG’s emissions (more than 0.4 kg of
CO2/v.km, when a Renault Logan in Bogota is driven), which exceeds GHG’s emissions released by
fossil fuels (0.23 kg CO2 eq / v.km). Therefore in feedstock transportation process only (without
including those emissions related to crop, processing and use) creates much more GHG’s
emissions that fossil fuels, if transportation distance is long.
For palm-based biodiesel, the feedstock transportation effect is not as dominant as in the case
of sugar cane. This is mainly due to the fact that in the palm case there is a lower amount of raw
material to be transported (0.2 kg of fresh fruit/v.km) in comparison to ethanol which demands
(1.6 kg of sugarcane/v.km).
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In general terms, it is possible to conclude that transportation distances to processing plants
are crucial in the net savings of GHG’s, in particular for the case of sugarcane-based ethanol.
Hence, if new plantations are established, it is desirable to set processing plants located at a
reasonable distance, not only for cost optimization, but also to reduce environmental impact.
Figure 135 Kg of CO2 emitted per vehicle per km.
On the left side is the palm oil biodiesel case, and in the right sugarcane. This situation is based
on the assumption that biofuels are only produced in currently existing plants.
7.5.2 Water shortage
Each year 3.8 trillion tons of fresh water is extracted for human consumption. Near to 70% of
all extracted water is related to some extent with agriculture sector. In Colombia the demand for
this resource is also significant (IDEAM, 2010), and despite the abundance of water in this nation,
water scarcity in some particular regions is at the core of growing issues. Water shortage can be
expressed as the relationship between supply and demand required for human development and
for different ecologic life-supporting activities. It can be expressed using the scarcity index.
The IDEAM presented a national water study in which is shown the relationships between
water supply and demand. This study uses a map of hydric stress on a scale of 1:500,000.
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Table 93 Classification of hydric stress
Classification of hydric stress
Restriction
Value Description
degree
> 40% Municipalities with high levels of hydric stress

Total restriction
Municipalities with levels of hydric stress from mild to low, which may
10%-40%
Severe restriction experience severe limitations for socio-economic development
Without Municipalities with low levels of hydric stress. It is not foreseen a
< 10%
restrictions shortage of available water that might limit agricultural development
Source: Adapted from Mora, Arcila-Burgos et al 2009
As is illustrated below in most areas in the Caribbean coast close to Cartagena de Indias,
similar to big cities in the Andean region, there is a high percentage of hydric stress. This is mostly
formed by the relatively high demand of water in urban areas.
Figure 136 Hydric stress in Colombia
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Results are fairly consistent with other studies that report, in lesser detail, water stress in the
Caribbean region (Pfister, Koehler, & Hellweg, 2009).
Figure 137 Comparative Hydric stress Map for Colombia
Source : (Pfister et al., 2009)
In general, hydric stress is influenced by the size and style of population, climate variations,
pollution, and unsustainable management, among others. Therefore, hydric stress can be a
regional phenomenon that changes over time. Reduced water supply in dry years increases hydric
stress. In recent years, particularly in the Northern zone and in areas with intense agricultural
activity, just like the region where most of sugarcane is produced, nearby Cali, might exhibit high
levels of hydric stress.
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Figure 138 Water use index in Colombia for a dry year.
Source: (IDEAM, 2010)
7.5.3 Biodiversity
There are different biodiversity indicators for Colombia, such as the ones presented in the
study of palm oil found in Mora et.al (2009). Some indicators, like specific ecosystem or habitat
fragmentation, are quite theoretical and cannot be used directly to evaluate energy crop
expansion, due to the fact that impact depends completely on the expansion factor (spread
parcels or great areas of monoculture practices).
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That is why it was decided to use a priority conservation areas map from Sistema Nacional de
Areas Protegidas –SINAP- (National System for Protected Areas) (Corzo et al., 2008). This map is a
good foundation to discuss expansion of energy crops, because it puts together a variety of
information about ecosystems and classes, indicating the amount of disturbed area, which could
be related with the potential expansion area for different regions.
Table 94 Restriction levels for areas of priority preservation according to SINAP

Restriction levels for areas of priority preservation according to SINAP
No-preserved areas
Level of restriction (%) Description
Total restriction 0% Priority conservation areas according to SINAP
High value ecosystem with less than 10%
Severe restrictions 0%-10%
disturbed land
In accordance with ecologists, 30% of the non-
Moderate conservation areas, is the maximum area to
10%-30%
restrictions preserve unique natural characteristics of the
ecosystem
Without restrictions Areas with low value ecosystems, given the

30%-100%
(unknown) predominance of disruptions
The figure below shows spatial distribution of preservation or conservation areas in Colombia.
Priority conservation areas are widely distributed through Colombian territory. There are strong
restrictions on the wet forest in the Pacific coast, central region along the shore of the Magdalena
River, Guajira peninsula and the Oronoco basin.
It is remarkable, the status of high conservancy that has been gained by La Guajira region and
some spots in the Orinoco basin. In both cases a potential expansion in these areas could be
interesting in regards to the carbon reserves presence, and they would be ideal from GHG’s
emissions, however, they have restrictions from other nature.
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Figure 139 Priority conservation areas according to SINAP guidelines
Source: (Corzo et al., 2008)
In addition to priority conservation areas defined by the SINAP, other factors influence the
impact on biodiversity. Biodiversity is particularly high in natural forest, hence they are left out as
suitable land for bioenergy crops. Another reason to do so is that, in fact, forest lands are
protected by law and environmental regulation make any possible intervention as non-
364
sustainable, including the establishment the agro-industrial crops. Furthermore, deforested lands
are fragile and might be vulnerable to erosion.
Figure 140 Colombian forest areas.
Source: (IGAC, 2003)
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7.6 Socio-economic criteria
Socio-economic aspects of biofuel production are very important in order to secure the
feasibility of bioenergy expansion. Nonetheless, direct and indirect potential impacts are specific
of each area and are not easy to evaluate. For that reason, assessment of potential expansion
areas should include a socio-economic study at a local level.
In this study, only a limited amount of socio-economic factors that affect the biofuel value
chain are discussed. Information used is based on the existing literature, and it includes access to
existing infrastructure, roads, markets, safety and food security.
Figure 141 Summary of the socio-economic factor taken into consideration
It is noteworthy that employees indicators used in this study are mainly taken from the IDEAM
report (IDEAM, 2009c), and they simplify in a general way local socio-economic reality. Moreover,
these indicators can change rapidly through time, which suggest a constant evaluation is required.
7.6.1 Access to processing facilities
Ideally, bioenergy feedstocks are cultivated close to an already existent processing plant, to
make use of its services, and also to gain acceptance of crop introduction in the population that
inhabit the nearby area. In the next map are presented those areas that are 30km away from a
processing unit of palm oil or sugarcane. Nonetheless, it was not considered access quality,
meaning, general road conditions, like slope, paving treatment, etc.
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Figure 142 Access to processing facilities.
Palm oil on the left side. Sugarcane on the right side. Distance considered: 30 km.
7.6.2 Access to markets
Feedstock cultivation for biofuel production is, in general, much more competitive if
processing facilities are located close to main markets. Thus, locations within short transportation
range (less 154km) to mid-range (between 154km and 337km) to the main markets or export ports
are economically preferred over locations that are established within larger transportation ranges.
Assessment is based on aerial distance and transportation cost from cells in the grid on the
map that were mentioned earlier, from where production areas are located, to market places.
Even though, aerial distances where taken into account – instead of real distances/cost of
transportation – it is possible to create approximate indicators about more suitable areas in
economic terms.
Distances less than 80km are indicated in light green; whereas mid-range distances (80km to
176km) are indicated in dark green.
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Figure 143 Access to markets
Source: (IDEAM, 2009c)
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7.6.3 Access to road network
Those areas close to roads and rivers (suitable for fluvial transportation) have economic
benefits, due to better transportation conditions. In this case the maps employed were the road
network map provided by IGAC and the river map extracted from the Ministry of Transport (IGAC,
2005; Ospina, 2008). Classification was implemented based on the IDEAM guidelines (IDEAM,
2009a); thus, it selected an absorption distance of 15km for main roads (regardless if they are
paved or unpaved roads, but that have at least 2 lanes available all year long, i.e. terrestrial
condition 1 and 2) and also main rivers (with permanent navigation, i.e. fluvial condition 1). For
seasonal rivers and narrow paved roads, which are open for traffic all year long, an absorption
distance of 10km was selected (terrestrial 3 and 4, and fluvial 2). For unpaved roads that are only
accessible during a dry season the absorption or buffer distance is 5km (terrestrial 5).
The following map provides a broad approximation of the accessibility for transport
infrastructure, while further studies will have the task of updating the terrestrial and fluvial
network and they should consider more detailed the quality and current state of roads (including
seasonal closing of roads).
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Figure 144 Access to main terrestrial roads and rivers.
Existing crops for palm oil and sugarcane production are located in areas that have good
access, and are relatively close to markets (as shown before). Transportation distances in the
eastern region of Colombia are either quite long or the road infrastructure is completely deficient.
This aspect reduces to a great extent competitiveness of remote areas for biofuel production,
given the disincentive that such a situation represents for potential investors. Nevertheless, in the
mid or long-term biofuel transportation via pipe infrastructure, the establishment of alternative
markets, or an improved road network should change the ongoing situation.
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7.6.4 Safety
Also important, is the safety of a particular area when the selection of a potential location for
bioenergy initiatives is at stake. Map of security accounts for the number or murdered people,
armed robbery episodes, and forced displacement of population. This data come from the
Observatory of Human Rights, and the Office of International Human Right of the Vice-presidency.
For more information and a description on the methodology of the map itself see the IDEAM
report (IDEAM, 2009b).
Figure 145 Map of public security risk in Colombia
Areas with historic complications regarding national security are located in the Orinoco
region, particularly in the departments of Meta, Arauca and Vichada. Territories of some
municipalities in North Santander, northern region of Antioquia and Putumayo are also classified
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as zones with limited security conditions. Notwithstanding, indicators just provide an
approximate insight based on the historical violent incidents; so, if a new production location is
planned, it may be required to evaluate security conditions in that particular area.
7.6.5 Food security
If energy crop expansion takes place in agricultural areas a displacement effect is started.
These effects of displacement are significant, if food crops such as maize are eliminated or moved
out to other regions, causing disbalance in the population acces to food (Johnson & Rosillo-Calle,
2007).
Effects can be reduced, if extensive activities are replaced, such as cattle grazing. Effects can
be offset totally if agricultural soils are recovered through intensification (i.e. using grazing land
but with more livestock heads/ area) in the same place, while feedstock for biofuel production
takes place.
The map below, shows the agricultural production in Colombia. This figure is differentiated
by very intensive agricultural practices and extensive practices in rural areas. The figure provides
an overview of the potential expansion that might take place with limited effects or without
indirect effects.
This map does not take into the account the quality of agriculture (so it could be some areas
have relatively low agricultural production). However, a detailed land management plan is
required in order to avoid unfavorable displacement impacts. This requires a profound and
specific study on the potential impact in food security or indirect effects. Furthermore, it only
excluded agricultural land, so for grazing land similar effects can be developed, and therefore a
more detailed analysis should be implemented in such regard.
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Figure 146 Map of current agricultural production
Source: (IGAC and CORPOICA, 2002)
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7.7 Discussion and final remarks
The aim of this whole section was to point out areas with expansion potential for palm oil and
sugarcane crops, taking into account biophysical, legal, environmental and socio-economic
factors. The main scientific contribution of this particular study is the establishment of carbon
reserves and GHG’s maps that were neither available nor documented in the past.
The knowledge base built so far, on the areas of potential and sustainable expansion is
relevant for strategic decision-making process at national level and indicates interest areas where
more and deeper research is required.
Work scale in these maps is 1:500,000, and for calculation a grid that uses cells of 5km X 5km
was used. such resolution is enough to identify general patterns at national level. Nonetheless,
results suggest that it is not recommended for planning of local or individual biofuel initiatives.
Below will be discussed biophysical adaptation in combination with environmental and
economic aspects for potential expansion of palm oil and sugarcane crops. Initially national parks
were excluded where cultivation is completely restricted. Territories of black communities and
indigenous reservations are considered as not suitable for commercial biofuel initiatives
exploitation.
With the purpose of complying with adaptation criteria from the Board of Renewable Energy
(EC, 2009), those produced biofuels must save at least 40% of GHG’s emissions in comparison to
fossil reference (GHG’s net savings). Later, there were excluded from the suitability map, the
hotspots of biodiversity (priority conservation areas and natural forest lands). Natural tropical
forests are usually guardians of high levels of biodiversity, and they are also important for
preservation of the hydrological cycle. In addition, deforested areas of land are very fragile, hence,
for those reasons forest land were excluded from the land that is considered suitable for biofuel
crop expansion. Furthermore, land for agricultural purposes was excluded from potential areas
for bioenergy feedstock cultivation, in order to avoid potential interference with food production
and indirect effects of LUC. Lastly, those areas that do not have connection to road infrastructure
were not included, mostly regions of Amazonas and Vichada, given that economic production
competitiveness in remote and isolated areas is compromised. It is important to highlight,
however, that the establishment of new infrastructure in these areas might support the potential
development of these regions and it would cause a change in the classification.
There are, of course, some other factors that influence suitability and sustainability of those
crops for biofuel production (such as economic factors, temporary or seasonal issues, among
others). Some of these factors were discussed when suitability maps were presented.
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7.7.1 Palm oil
Due to climate and agronomic conditions big areas of Colombia are suitable for palm oil
cultivation. Nevertheless, in those regions where precipitations levels are extreme, just like in the
case on the Pacific Coast with frequent rainy seasons, and La Guajira peninsula with rain shortages,
are considered as not suitable. Besides this, other areas are protected by some regulations
(indigenous reserves and collective titles for black communities), which constrains palm oil
expansion. There are some issues with lands located in the base of Andean mountain chain
(particularly department of Casanare) that limits suitability for palm oil cultivation. Nevertheless,
some of these areas can be ruled out not by agronomic conditions but by the scale of resolution
(5km x 5km) requiring a more detailed local evaluation in order to improve the estimation of
suitable land.
Figure 147 Palm oil suitability (1)

Biophysical suitability (left), overlapped with legal limitations (right).
Source: CUE
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Likewise, those areas where palm oil crops do not reduce significantly GHG’s in comparison
with fossil fuels use are excluded (GHG net emission savings less than 40%). This means that
basically all areas with a carbon reserve in biomass relatively high, and those with elevated organic
carbon reserves are left out (that covers large areas of natural wet forest lands of the southeastern
territory and the Pacific coast). Suitable lands for palm oil cultivation in terms of GHG’s net savings
are located in Andean valleys, the eastern zone (non-forest area) and Northern zone of Colombia.
Suitable land for palm oil cultivation without compromising vulnerable and high biodiversity
areas is determined by the exclusion of protected natural parks (former figure on the left side)
and hotspots of biodiversity including forestall areas (following, on the right side). Vast areas of
Colombia are excluded in terms of biodiversity, particularly natural ecosystems and with low use.

Excluding non-suitable areas regarding soil and climate conditions and protected areas, overlapped with
protected areas and areas with less than 40% GHG’s savings.
On the left side of the figure above, soil that is used currently for intensive agriculture is
excluded, which is located mainly in mountain valleys. In this step, those current palm oil
plantation that have been established recently were excluded, mainly in the southwest (Nariño),
east (Meta), North (Magdalena and Cesar), and Central region (Santander). This action makes
sense if it is understood that here is supposed to define expansion potential. In addition, the fact
of turning grazing land into potential biofuel crops might cause an indirect pressure on the natural
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system and before creating an establishment, it must be evaluated locally for all its potential
indirect effects.
Competitiveness of crops located far from the road network, processing facilities and existing
markets is limited; therefore these areas were classifies as “non-suitable condition” in the
suitability map. Areas along Pacific coast, amazon region and areas on the eastern side of
Colombia are remote.
Excluding non-suitable areas regarding biophysical conditions, areas with less than 40% GHG’s savings, biodiversity
hotspots, overlapped with a map of agricultural zones (left) and areas with access to road infrastructure (right).
Finally, sustainable expansion area for palm oil crop is reduced to the northern section of the
Llanos (on the eastern side of Colombia), central areas in the Andean Valleys, non-forest land in
the eastern zone and small spots in the south-western area of Colombia.
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Excluding protected areas and non-suitable areas in biophysical terms, areas with less than 40% GHG’s savings,
biodiversity hotspots, agricultural areas and limited access areas.
In total 1000,000 hectares were identified as highly suitable for palm oil cultivation and near
to 2,900,000 hectares as moderately suitable. The larger area for the highly suitable zones is
located in the base of the Eastern branch of the Colombian Andean mountain chain, in the
departments of Caquetá and Meta (see figure below).
Both regions have already proven to be suitable for palm oil cultivation, predominantly in
Meta, vast parcels have been employed for this particular crop. Nevertheless, there is a potential
risk in the department of Caquetá, and it refers to a possible pressure on adjacent areas with a
presence of wet forest land. With the purpose of preventing indirect LUC by the expansion of
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biofuel feedstock production it must be analyzed critically for suitability. In addition, there is a
need for research on land planning and management in order to evaluate these potential effects.
There is another area that exhibits high suitability conditions for palm oil tree cultivation,
located along the shore of Magdalena River (in the departments of Antioquia, Santander and
Bolívar) and especially close to the river mouth in the Department of Magdalena (in the western
side of the Sierra Nevada de Santa Marta). Also, some parts of Cesar located along the Cesar River
are suitable for palm cultivation.
The department of Cordoba and northern region of Antioquia are moderately suitable and
suitable with severe restrictions for palm oil cultivation. The warning for these areas is similar to
the one that was mentioned earlier. Land planning and land management are required to evaluate
to what extent the implementation of bioenergy crops is appropriate without compromising soil
characteristics.
Suitable land for palm oil cultivation suggested by the IDEAM study drew an area of 6,000,000
hectares, which is, as a matter of fact, less than the one pointed out in this study (9,354,000 ha).
A plausible explanation for the difference between the two is the nature of the employed
parameters (making special stress on the socio-economic factors). Nonetheless, the IDEAM study
also categorized as suitable (with the highest potential) for palm oil cultivation the departments
of Meta, Caquetá, Antioquia, Córdoba and Magdalena, which, in effect, coincided with the
statements of this study. Considering highly and moderately suitable areas, that accounted for
4,001,000 hectares in total, match with 3,500,000 hectares suitable shown in the Ministry of
Agriculture’s report (Fernández Acosta, 2009). In comparison with this study, the report given by
the Ministry indicates the highest potential for palm oil cultivation focused in Meta basin.
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Figure 151 Zones with different suitability for palm oil plantations in Colombia (1)
(Highly, moderately and marginally suitable)
Meta
Córdoba
Antioquia
Magdalena
Caqueta
Cesar
Bolivar Marginally suitable
Sucre Moderatly suitable
Santander Highly suitable
Tolima
Vichada
Putumayo
N. de Santader
0 400 800 1200 1600 2000

Area (1000 ha)
Source: The author. Data source: CUE study

The vast region of the Pacific coast was identified as a non-suitable area for palm oil cultivation
due to several reasons. In the first place, land has been allocated to afro-descendent and
indigenous communities; hence land availability is restricted. Furthermore, these areas are mainly
covered by forest and a subsequent conversion could lead to a biodiversity loss, a diminishment
in water deposits and a potential increase in GHG’s emissions. High precipitation patterns and
limited access to road infrastructure network also contribute as factors that reduce potential
investment attraction for bioenergy initiatives. Notwithstanding, in should be born in mind that
this location is relatively close to Buenaventura port for export purposes.
Limited availability of infrastructure (in terms of roads and electricity) and the priority of
biodiversity conservation that are displayed by the departments of Amazonas, Vaupés and
Guainía, lead to a non-favorable classification for palm oil cultivation. Besides, extensive areas of
these lands are currently occupied by indigenous communities.
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Figure 152 Zones with different suitability for palm oil plantations in Colombia (2)
(plus non-suitable conditional)
Vichada
Meta
Córdoba
Caqueta
Antioquia
Magdalena
Cesar
Bolivar
Sucre
0 500 1000 1500 2000 2500 3000 3500

Area (1000 ha)
Non-suitable conditional Marginally suitable

Moderatly suitable Highly suitable
(including those suitable areas under certain conditions).

As is shown above, essentially low biomass lands of Vichada and Meta are presented as
potential expansion areas. However, these areas have difficult accessibility and therefore they
are ruled out from being considered suitable. But, it has to be stressed that through investment
in new infrastructure, these areas could be used for palm oil tree cultivation.
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7.7.2 Sugar cane
Due to climatic and agronomic conditions, large areas of Colombia are suitable for sugarcane
cultivation (see figure below on the left side). Though, these and some other areas are part of
protected zones (indigenous reserves and collective land titles of black communities), which
constrains or ultimately forbids (in the cases of natural parks) further expansion of sugarcane
crops (see figure below, on the right side).
Figure 153 Sugarcane suitability (1)

biophysical suitability (left), overlapped with protected areas (right).
Those areas where sugarcane cultivation does not significantly reduce global warming were
excluded (i.e. net saving superior to 40%, next figure on the left side), in comparison with the use
of traditional fossil fuels. This situation implies that almost all areas with a relatively high reserve
of carbon in biomass, or those that account for a high reserve of carbon in the soil are excluded.
Given this description, the set of suitable areas was narrowed down to agricultural land, prairies,
degraded, or deforested lands.
Suitable land for sugarcane cultivation without affecting vulnerable areas and zones of great
importance regarding biodiversity are determined by excluding protected natural parks (see
previous figure on the right side). In the same step were excluded forest lands given their great
biodiversity and their relevance regarding the cycle of water (next figure). On the other hand,
forest lands are extremely vulnerable and fragile if they are turned into bioenergy feedstock crops.
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It excludes protected areas and biophysically non-suitable areas, overlapped with GHG’s savings less than 40%
(left), and biodiversity hotspots (right).
Finally, areas that are being employed for intensive agricultural practices that are established
in the mountain valleys along the Andes were excluded (see figure below, on the left side). In this
step, current bioenergy crops for ethanol production purposes were excluded, located in the
geographic valley of the Cauca River, which is actually coherent with the idea of determining
potential expansion areas.
Competitiveness of sugarcane crops located far away from existent road infrastructure and
from current established markets is limited, therefore these areas were excluded from the
suitability map (see figure below, on the right side). This study put stress on the idea that the
region along the Pacific coast, the Amazon jungle and Colombian deep east are quite isolated in
these regards.
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Suitability excludes protected areas and biophysically non-suitable areas, along with GHG’s savings less than 40%
and biodiversity hotspots, overlapped with agricultural areas(left) and areas with access to road infrastructure
(right)
So, the area for a sustainable expansion is reduced i northern plains and some areas in the
Andean Valleys and the non-forest area in the eastern region.
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Suitability excludes protected areas, biophysically non-suitable areas, areas with less than 40% in GHG’s savings,
biodiversity hotspots, agricultural areas currently in use and areas with access to road infrastructure.
At the moment, near to 40,000 hectares of sugarcane crops are dedicated to ethanol
production, and there is a high potential of expansion of up to 1,518,000 hectares of high
suitability and 3,400,000 hectares with moderate suitability.
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The largest areas with moderately suitable lands are located in the eastern base of the Andean
mountain chain in Meta and partially in Caquetá (figure below, on the right side). As happened
with the palm oil case, the intention of implementing biofuels initiatives (for ethanol in this case),
in the Department of Caquetá might clash with adjacent wet forest that is located within its impact
region. Again, careful land planning and local land management should be implemented in order
to determine sustainability potential of cultivation of sugarcane in this region.
The departments of Cesar, Córdoba and Magdalena were identified as zones with high
potential for sugarcane cultivation. In general, sugarcane crops in the northern area should be
established in such a way that water availability can be secured. Furthermore, the inter-Andean
valleys in the departments of Tolima, Huila, Antioquia and the area of Cauca River are suitable,
but with a limited expansion potential.
Suitable areas for sugarcane cultivation suggested by the Ministry of Agriculture are
approximately 3,892,000 hectares (Fernández Acosta, 2009), whereas this study found 10,973,000
hectares as suitable land. Albeit, if those lands that are highly suitable and moderately suitable
were considered, which should be the ideal case, given that crops held in suitable lands with
severe restrictions are not economically attractive, results dropped, hence drawing a similar result
to the Ministry report(4,919,000 ha).
Figure 157 Zones with different suitability for sugarcane plantation in Colombia (1).
(Highly, moderately and marginally suitable)
Meta
Cordoba
Antioquia
Casanare
Magdalena
Santander
Marginally suitable
Cesar
Arauca Moderatly suitable
Tolima Highly suitable
Caqueta
Cundinamarca
Huila
0 250 500 750 1000 1250 1500 1750 2000

Area (1000 ha)
The pacific coast line was identified as a non-suitable area for sugarcane cultivation for several
reasons. In the first place, high precipitation is not suitable for sugarcane cultivation and the
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mentioned area is covered by mainly forestland, therefore a conversion might lead to a loss of
biodiversity, reduced water deposits, and it would release a great amount of GHG. In addition,
this area is has been allocated to indigenous people and black communities; consequently the
legal access to these lands for bioenergy projects is restricted and there is no good road
infrastructure either.
On the other hand, distance to ports (for exportation purposes) could be attractive given the
short distance to them.
Limited infrastructure (roads and power grid) and the importance in the preservation of
biodiversity make that zones located in departments such as Amazonas, Vaupés, Guainía not
suitable for sugarcane cultivation. Besides, vast areas of these regions are occupied by indigenous
communities.
Figure 158 Zones with different suitability for sugarcane plantations in Colombia (2)
(plus non-suitable conditional)
Vichada
Meta
Guainia
Casanare
Cordoba
Antioquia
Caqueta
Arauca
Magdalena
Santander
0 500 1000 1500 2000 2500 3000 3500 4000 4500

Area (1000 ha)
Non-suitable conditional Marginally suitable Moderatly suitable Highly suitable
As is shown in the figure above, particularly in those low biomass areas of Vichada and Meta,
there are areas of potential expansion. Nevertheless, these areas, at the present time, have
difficulties regarding road network infrastructure, hence, they are considered as non-suitable.
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However; through investment in transport infrastructure these areas might be suitable for
sugarcane cultivation.
These results are always subject to uncertainty due to changes that can be present in climate,
such as higher temperatures and heavy rains and droughts. Warmer climates, due to increased
water vapour are vulnerable to more an accentuation on the magnitude of climate events
(Trenberth, 2012). Ramirez-Villegas,et.al. presented a study of climatic effects on agriculture by
the year 2050 in Colombia. In their findings it is argued that disregarding the crops small farmers
will be vulnerable to CC. For sugarcane was found that suitability and productivity could drop. In
particular they suggested that sugarcane would require lands located above 1500 m.a.s.l. For palm
oil was found a risk of floods and salinization of land close to coastal areas. Among adaptation
plans it was recommended to employ subsidies and agricultural insurances for small-farmers.
Sugarcane could have better performance under genetic enhancement and palm crops could be
relocated or blocked through walls (Ramirez-Villegas, Salazar, Jarvis, & Navarro-Racines, 2012).
7.7.3 Stakeholders’ engagement: contrast between the expansion potential in this

study and former plans
In 2002, during Alvaro Uribe’s government was sketched a robust plan to boost a strong
biofuel industry in Colombia, however such purpose has lost partially its initial impulse due to
political and technical setbacks.
In 2008 was released the general legal framework for he bioenergy sector in the document
Conpes 3510, where the Ministry Of Energy was commissioned to guide a comprehensive plan to
build a sustainable biofuels industry. Within this task was important to coordinate efforts from
different fronts, such as the agricultural sector (small and big farmers)52, R&D, Infrastructure and
environment.
The original plan (sketched in 2002) was to start with E10 and B5, but in 2007 was decided to
raise B5 to B10 (starting from 2010). The projection was to reach a blend of 20% in both gasoline
and diesel by 2020. From that moment the idea was to supply foreign markets and keep blending
level steady for domestic demand. (Contexto Ganadero, 2014; Infante, 2008).
Such plan would imply to count on 900 thousand new ha of sugarcane and 1.8 million ha of
palm oil by 2020, according to governmental calculations (Infante, 2008). These projections were
supposed to provide 126 MBD of ethanol and 108 MBD of diesel. Based on such assumed supply
52
It is important to bear in mind that farmers are directly represented by Fedepalma (for palm oil), by
Asocaña (for sugarcane), and Fedebiocombustibles for the whole biofuel production chain.
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E100 and B75 scenarios were presented as feasible and it does concur with the expansion
potential that has been presented along during this mapping excersise.
Fedepalma and Proexport have presented studies where some processing capabilities are
explored for palm oil and sugarcane industries correspondingly (Mesa Dishington, 2010;
PROEXPORT, 2012). Expansion potential are metioned briefly and they go in accordance with the
results presented here. However this is not accompanied by proper GIS studies, therefore it turns
out hard to contrast this study with previous ones.
However, nowadays in Bogota biofuel blends reach 8%, and anywhere else 10% for a
combined average of 9.2% (Contexto Ganadero, 2014).
It has been recognized as an important challenge Colombian infrastructure and it has been
considered to look for alternatives such as the use of pipelines for biofuels transportation53.
All these targets that have not been accomplished are understood by the producers as a lack
of rigour in policies implementation. The agribusiness association Fedebiocombutibles argues that
goals have changed since the beginning of the program and biofuels production is not the priority
now (Dangond, 2013). It was planned an increase in the blends up to 20% (in diesel) by 2020,
however so far the targets have not been reached (15% by 2015%) and it is feel hesitation from
the government, due to possible increases in the price of the blended fuel (Contexto Ganadero,
2014).
In contrast the government indicates a decisive support in the augmentation of these fuels,
and it acknowledges the environmental benefits, as GHG´s emissions reduction and
socioeconomic advantages (income redistribution) related to them. It mentions the implantation
of quality labelling to certify fair trade and environmental protection (Hernan Martinez, 2009).
However this has not been accompanied by facts that encourage the level of investment that have
been done so far (US$ 1300 million) (Dangond, 2013).
Some other setbacks are regarding resources such as labour and land availability. For instance
1.8 million expansion would require nearly 180 thousand new jobs employed directly in the chain.
Economies of scale require of large extension of land, which are not always affordable or
possible to find under the technical requirements.
So far the academic sector continues in isolated research efforts, while there is expectation
for governmental or private support to develop technologies that quicken the pace towards new
feedstock processing (as it shown in the last appendix).
53
A 6 inches exclusive pipeline from the Oriental region of Colombia up to Coveñas (in the North
coast), might cost US$400-450 million.
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Oil business actors remain in a marginal role: Whosalers are allowed to transport E98 from
production plants to storage stations. Afterwards the blend takes place and is further sold to
retailers to be distributed to the final costumer (which in turn adopts passively the blend imposed
by the government).
7.7.4 Conclusion
This particular study shows that there is a considerable potential for palm oil cultivation that
adds up to slightly more than 4 million hectares, similarly great is the opportunity for sugarcane,
with 4.9 million hectares. In a general sense, the suitable areas for palm and sugarcane cultivation
are overlapped, given that most of the exclusion criteria that have been used are valid these 2
kinds of feedstocks (for instance indigenous reservoirs or protected forests). Notwithstanding;
those areas considered as highly suitable are quite different: In the case of the feedstock for
biodiesel production there is a predilection for the departments of Caquetá and Meta; and
contrarily, sugarcane has a bias for the condition presented in Magdalena, Cesar and Córdoba.
Likewise, the region of the department of Vichada was shown to be moderately suitable for
biofuels feedstock production in general, but first access to the region must be improved
significantly, i.e. investment in road infrastructure network.
The study also tackled the topic of GHG’s created by LUC. This aspect has become
fundamental in policy making and it determines in some way land suitability for bioenergy crops.
Therefore, depending on the former land use, carbon debt (assessed in years) might take
hundreds of years in the worst scenario (i.e. if wet forestland is cleared for establishment of
bioenergy crops). Based on that, it is possible to argue that just those areas with a low carbon
reserve, such as mountain shrubs ecosystems or grazing land, are suitable for implementing
bioenergy production projects. It is highly recommendable to spare agricultural land from these
bioenergy initiatives, due to potential indirect affects in LUC, or more soundly, because food
security could be jeopardized. In spite of this, it is quite important to bear in mind that previous
pasture lands can also exert some pressure on environmental ecosystems because of iLUC (as
could happen in Caquetá in those pasture lands that are close to forests).
It is absolutely required to complete a land use planning and put into practice some specific
agricultural routines that might alleviate land pressure (such as intensive cropping or grazing), or
simply avoiding the use of already active (high productivity) land to dodge iLUC effects.
As a whole, this section identifies areas where the sustainable expansion potential of biofuels
at national level can be attractive. These results provide a foundation of scientific knowledge for
strategic planning (particularly, in terms of sustainable use of land) regarding renewable energies
for transportation and so the path is open for investment in bioenergy projects of this nature.
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Nonetheless it is fundamental to stress on the fact that further analysis can be applied here, if
higher resolution maps become available, as well as refine the set of criteria employed, in order
to plan punctual biofuel production projects.
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8 GENERAL CONCLUSIONS
Bioenergy in general, and biofuels in particular, have come up to the renewable energy stage
with some peculiar strength, overall in terms of alternatives for transportation. Some of the
drivers behind this option are shared on a global scale, such as the reduction of GHG’s emissions,
and enhancement of energy security conditions. Some others have a more local nature, like a
diversification of markets for agricultural commodities, dynamization of rural areas, improvement
of micro and macro-economic indicators (for instance, income of the rural poor and national
balance of payment), among others.
However, production, commercialization, and use of biomass based energy have a really
complex set of relationships regarding economic, social and environmental effects. Therefore,
even though biofuels are associated with several positive consequences; they are also linked to
convoluted issues that require the attention of scholars and policy makers, in order to avoid
catastrophic outputs from a poor implementation of a bioenergy agenda. Among those negative
results are:
 a potential net energy loss (assessed in non-renewable sources),
 a constant threat to food security given that some feedstocks (in fact, the most used ones)
can be employed for food and/or energy purposes at the same time,
 a potential increase of carbon emission through LUC and iLUC effects,
 an eventual worsening of the current social or economic situation for vulnerable population,
 and the imperilment of natural ecosystems.
This reality is the one that Colombia has confronted, since 2005, when it started to walk the
path of liquid biofuels for transportation. Given agricultural circumstances for this South American
country, sugarcane and palm oil were the main chosen feedstock to start this journey. Of course,
it does not imply that other alternatives cannot be explored in the immediate or mid-term, but
most bioenergy initiatives in Colombia, nowadays are focused on these two options.
A comprehensive analysis of Colombian biofuels chains and their actual and potential effects,
regarding their social, economic and environmental behavior was required in order to establish to
what extent liquid biomass-based fuels are sustainable. Actually, that is the reason and core of
this thesis document.
The results can be summarized as follows:
Among renewable energies, bioenergy and in particular biofuels, represent a transitory and
immediate alternative to solve the stress caused by fossil alternatives. Handled properly, biofuels
can become in an appealing alternative to both industrialized and developing countries. The latter
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can take advantage of latecomer position, improve the socio-economic situation of the
population, and may alleviate environmental issues caused by traditional energy sources.
Biofuels can be classified by their state of nature and by the degree of technology advance.
Within this document current and potential impacts of production and use of those liquid biofuels
are studied (alcohols and oils) that are produced within the Colombian territory.
Biofuel production is well justified in this case, given that existent energy sources (hydro, coal,
gas and oil) properly cover energy needs, except for transportation. Colombia is not a net
importer of oil, yet, but new reserves have not been found and export rates lead one to think
of a shortage scenario in the midterm.
Despite that, Colombia produce commercially 1GBf (sugarcane-based ethanol and palm oil-
based biodiesel) and those are highly criticized because of the food vs. fuel dilemma, a study
needs to be carried out to understand to what extent these alternatives represent a threat, and if
they do not, how much and where can they expend. Per se, 1GBf is not bad, but local analysis is
required to see the full implications of their implementation. Therefore, biofuels production
cannot be ruled out, and on the contrary must be encouraged. The problem here is establishing
conditions to guarantee their sustainability without jeopardizing surrounding ecosystems, food
provision, and the socio-economic conditions of the population. Actually, Colombia has managed
some initiatives (at exploratory level) that aims to better biofuel under better technologies as it
can be seen in the final appendix. This document argues that, in fact, Colombian biofuels, under
current circumstances, are sustainable based on the following rational:
First, Colombia has set firm foundations in terms of biofuel policies (with a set of mandates,
tax exemptions and other tributary and financial aids), following the example given by industry
leaders such as Brazil. Drivers are properly adjusted and incentives in term of mature commodity
markets ease development for these initiatives. Unlike most countries in the region, along with
Brazil and Argentina, Colombia is the only country within the LAC region capable to cover domestic
supply and eventually think of export possibilities. Regulations still require some fine-tuning and
they need to target sustainable certificates that boost a proper entrance to a global green oil
market. A constant threat to bioenergy is oil price fluctuations, but R&D efforts can overcome this
issue in the long term.
Secondly, Colombia must take into account the environmental context to implement a wide
bioenergy project, due to the strong connection that this alternative possesses with global
warming problems and agricultural management.
393
In this regard it is fundamental to stress the importance of biodiversity protection, land
degradation, and land management issues that emerge with monocultural practices. If the latter
are carried out it becomes crucial to include policies in the local planning schemes for
implementation of crop intensification in order to avoid LUC and iLUC effects and expansion of
the agricultural frontier.
Most of the problems related with air pollution, and climate change is closely linked with
mobile sources of contamination, i.e. the transport sector. For that reason, biofuels production
and use are able to mitigate such effects, if it is taken into account that photosynthesis captures
carbon emissions during the agricultural stage of biofuel creation. When biofuels are blended
with regular gasoline the burning process is cleaner, resulting in a lower level of contamination.
Nevertheless, it is also important to recognize the role played by ergoculture as GHG’s emitted
by account of agricultural practices. Use of fertilizers and pesticides, along with forest clearance
might unleash a high pressure on the atmosphere. Therefore, expansion of energy crops must be
implemented carefully, as is explained in the last chapter, which overtakes this kind of hindrances.
Environmental pressure can also be reduced by supporting an active biofuel industry, if more
opportunities for development are brought to rural areas, avoiding migration processes.
Thirdly, in economic terms, competitiveness of Colombian biofuels, in international

markets, can be imperiled by high cost of labor, despite high yields of agricultural commodities.
Some other biofuel producing countries pay less than half the wage established in Colombian
territory.
Biodiesel costs throughout Colombia are quite standardized. They are mostly explained by
feedstock costs that have been calculated between US$482 and US$618 per ton. Benefits should
be shared between farmers and plant owners, and are linked to the amount of oil obtained from
each ton of fruit.
Conditions for the final price are discussed informally in this industry, if there is no formal
contract that establishes otherwise. As reference, the PSF is used which is usually presented in
advance, so levels of uncertainty are reduced.
In the case of sugarcane ethanol, it is required to improve competitiveness in terms of final
prices, regarding direct international competitors. Most of the cost, just like in the biodiesel
industry is explained by feedstock acquisition cost. A way to solve this issue is via capital
investment, but intensive machinery would imply several job losses (8 million shifts if a total
conversion is carried out).
394
In a general sense, the sugar industry (and by-products) is much more organized than the
biodiesel industry. Thus, calculation of payments are fully described and distributed between
farmers and plant owners. A compensation fund FEPA intervenes in price formation, and act as a
kind of insurance for farmers and manufactures.
Recognition of final price in terms of ethanol elaboration, despite having formalization, has
created controversy between farmers and sugar processors. On the one hand, a processor wants
to give only one third of the final price to a farmer (according with those rules describe in chapter
4), whereas the latter try to get at least 50% of the final price. These discrepancies have brought
tension to the ethanol industry. Regulation in this regard, along with some other fine-tuning in
terms of compensation of divergences between sugar and ethanol must be introduced and
reviewed in further policy analysis.
Fourthly, in this manuscript Policy for Biofuels in Colombia (PNBs) has been studied and it
has been concluded that it requires between 6.4 and 9.2 million hectares in order to achieve
government plans. According to government target, this land would be taken from fallow and
livestock farming land. In chapter 7 it is proven that those levels can be reached, only under
severe restrictions (overall in terms of current road infrastructure).
The palm oil industry (and by-products) has grown recently by account of a set of factors
(elevated vegetable oil prices and the possibilities of new markets), and domestic conditions
(supporting policies for biofuel industry). Yield per hectare has reached near to 4 tons of oil on
average, but according to Fedepalma it would be possible to obtain 5.5 tons by 2020, overtaking
some countries in South East Asia. It is highlighted that the possibility to concentrate the industry
in clusters in order to increase efficiency in the industrial stage and therefore gain
competitiveness.
Participation of small farmers is significant but there is a high level of land concentration in
this sector. There are just few plantation units that exceed 1000 hectares, but they have almost
40% of the planted area.
There are three types of contractual arrangements for palm oil extraction. Every one of them
implies different rights and responsibilities as is explained in chapter 5. The importance of this is
the flexibility offered to farmers of any scale.
Colombia needs to improve extraction methods, given its low productivity. Colombian plants
can process on average 25 tons/ha, whereas Malaysia and Indonesia exceed 30 tons/ha. Evidence
has shown an underuse of the installed capacity.
395
Strategic alliances are a possibility of distributing both risks and benefits of the industry, and
they have proven to provide more stability and access to financial resources in an easier way. By
training farmers and extractors they get better results and security in feedstock quality and
quantity.
Vegetable oil provision has not been jeopardized so far with bioenergy project
implementation; therefore, there is no evidence to point out biodiesel as trigger for food scarcity.
In the case of sugarcane, the industry related to ethanol production in based in Cauca valley,
despite other regions that have sugar plantations (like Santander, Antioquia, Nariño, among
others). Technical assessments have led to this conclusion by demonstrating that this variety of
sugarcane (caña panelera) is not suitable for competitive ethanol production.
Crop performance has improved in terms of sugar content (reaching 13 tons per hectare since
2002), despite yield of sugarcane per hectare has been relatively stable (close to 120 tons/ha).
This is proof of enhancement of soil performance and therefore less pressure on surrounding
lands for expansion purposes.
There is also land concentration in this industry, but not as strong as in the palm sector. One
fourth of land belongs to the ingenios and the remaining land to other owners. Proprietorship
and management can be combined, thus 51% land is managed by independent owners. The
remaining 49% is managed by different kinds of formal contracts presented in chapter 5.
Based on the existing surplus of sugar since 1987, the ethanol initiative was supported. In this
way, food security was not put at risk. Neither the use of juices and molasses from sugarcane, nor
the reduction in sugar production and exports since 2005, created any perverse effect on the sugar
availability for the domestic market.
Current capacity of potential ethanol processing (1.07 million liters/day) is far from the one
established originally by the government (2.7 million liters/day) in order to reach a level of E20
in the entire Colombian territory; however, expansion is still possible under some assumptions
exposed in chapters 6 and 7.
Chapter 6 present a LCA for Colombian biofuels: Average environmental impact of the
evaluated biofuels was compared with international standards of sustainability, which provide a
first approach on a key factor in regards to the export potential for Colombian biofuels. iLUC
effects were evaluated in this assessment, by establishing that those crops which satisfy sugar
demands in international markets can be set somewhere else.
396
When the iLUC effect was left out, it was concluded that ethanol made out of sugarcane was
generating close to 26% of GHG’s emissions in comparison to pure fossil gasoline. However,
when it was included 156% of GHG’s was created if and only if crops were to be grown in tropical
forest.
RED standards use as reference 40% of GHG’s savings in order to consider a bioenergy
alternative as sustainable. In this case Colombian ethanol saves up to 74% in the best scenario;
therefore the requirement is fulfilled.
In terms of biodiesel, approximately 40% of GHG emissions per vehicle can be saved by using
current technology and average cultivation practices, in comparison to fossil diesel alternatives
(if LUC and iLUC effect are not considered). These results can be improved if methane is captured
using residual waters.
Palm oil tree cultivations are able to store relatively great amounts of carbon in comparison
to other use of lands, thus carbon balance has a propensity to be enhanced even more, up to 83%
(using average technology) and up 107% (if advance or optimized technology is employed), due
to the fact that most palm tree plantations took place in areas that formerly were destined for
grazing purposes or agricultural production. This result strengthens the positions of some scholars
(Mathews and Tan), and invite one to review results obtained by others like (Searchinger et. Al.).
Based on the aforementioned, it can be asserted that Colombian biodiesel made out of palm oil
offers a good performance in comparison with some other biofuels produced internationally, and
it accomplishes 40% of GHG´s emission savings defined by several international standards.
The non-renewable energy demand for biofuels based on highly productive crops (as the palm
oil crop) is considerably less in comparison to other biofuels, especially when lingo-cellulosic
biomass is used to provide energy in processing facilities. It is important to note that if the lingo-
cellulosic is used for second generation technologies a more efficient result might be reached as
well, in terms of fuel generation but co-generation potential and compost elaboration will be
affected negatively.
In general, if all existing biofuel producing plants work at their maximum capacity, it is possible
to save 1.8 million tons of CO2 eq per year. That is equivalent to 3% of total emissions of CO2 in
Colombia in 2008 or 8% of those emissions caused by the Colombian transport sector (UN, 2012).
Compared with some other international biofuels, Colombian biofuel exhibits a good
performance and it reaches 40% of minimum GHG’s emission savings suggested by several
bioenergy fuel standards.
Biofuels exported from Colombia can be favored by various mechanisms for subsidies in
“sustainable” international markets for biofuels. However, sustainability assessments should be
397
applied for each producing firm and plantation in an isolated way, given that the present study
provides only an insight for the average Colombian case, and it evaluates its range of impacts.
The relatively low demand of fossil fuels of sugarcane-based ethanol and palm oil-based
biodiesel is explained by the fact that most of lingo-cellulosic material is employed for co-
generation.
Finally, the last chapter was shown as exercise to map the potential expansion of palm oil and
sugarcane crops for increasing biofuels production. After a biophysical analysis was carried out,
several sustainability filters were applied to Colombian territory through GIS tools:
 In those lands produced biofuels must save at least 40% of GHG’s emissions in
comparison to fossil reference (GHG’s net savings).
 Territories of black communities and indigenous reservations are considered as not
suitable for commercial biofuel initiatives exploitation.
 Natural reserves, such as forests, were left out because of biodiversity preservation,
and resource maintenance.
 Land with current agricultural purposes was left out to guarantee food provision.
 Land without proper road infrastructure was not included to provide a more accurate
expansion scenario in the short and midterm.
For palm oil crops, sustainable expansion area is reduced to the northern section of the Llanos
(in the eastern side of Colombia), central areas in the Andean Valleys, non-forest land in the
eastern zone and small spots in the south-western area of Colombia.
In total 1000000 hectares where identified as highly suitable for palm oil cultivation and
near to 2,900,000 hectares as moderately suitable. The larger area for the highly suitable zones
is located in the base of the Eastern branch of the Colombian Andean mountain chain, in the
departments of Caquetá and Meta. Potential area for expansion goes from 4 million hectares to
more than 9 (being flexible with the results). However, it needs to be stressed that this high
potential is only possible if it is accompanied by proper investment in roads and some other
infrastructure.
In the case of sugarcane, the area for a sustainable expansion is reduced to northern plains
and some areas in the Andean Valleys and the non-forest area in the eastern region. This study
concludes that there is a high potential of expansion up to 1,518,000 hectares of high suitability
and 3,400,000 hectares with moderate suitability.
398
The largest areas with moderately suitable lands are located in the eastern base of the Andean
mountain chain in Meta and partially in Caquetá.
Suitable areas for sugarcane cultivation suggested by the Ministry of Agriculture are
approximately 3,892,000 hectares (Fernández Acosta, 2009)(Fernández Acosta,
2009)(Fernández Acosta, 2009)whereas in this study found 10,973,000 hectares as suitable land
(Fernández Acosta, 2009). Albeit, if those lands that are highly suitable and moderately suitable
were considered, which should be the ideal case, given that crops held in suitable lands with
severe restrictions are not economically attractive, results dropped, hence drawing a similar result
to the Ministry report (4,919,000 ha).
In low biomass areas of Vichada and Meta, areas of potential expansion were presented.
Nevertheless, these areas, at the present time have difficulties regarding road network
infrastructure, hence, they are considered as non-suitable. However, through investment in
transport infrastructure these areas might be suitable for sugarcane cultivation.
In summary, in the case of the feedstock for biodiesel production there is a predilection for
the departments of Caquetá and Meta; and contrarily sugarcane exhibits a bias for the conditions
found in Magdalena, Cesar and Córdoba. Likewise, the region of the department of Vichada
showed to be moderately suitable for biofuels feedstock production in general, but first access to
the region must be improved significantly, i.e. investment in the road infrastructure network.
It is absolutely required to complete a land use planning and put into practice some specific
agricultural routines that might alleviate land pressure (such as intensive cropping or grazing), or
simply avoiding the use of already active (high productivity) land to dodge iLUC effects.
399
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Appendices
Appendix 1
Box 1. Cassava-Based Ethanol Innovative Project
Colombia is highlighted in the LAC region by its efforts in cassava processing. Since 2005 two Colombian
firms De Sargo and Central Sicarare have set a common plant located in Codazzi (Department of Cesar, North
West of Colombia) being the pioneer to transform cassava starch into ethanol.
Clayuca and CIAT have just inaugurated, on July 22nd of 2, a new cassava-based ethanol processing plant,
located in Palmira (on the Cauca Valley).
This project is still in an intermediate stage because, albeit all the facilities are ready to be used, it is a
small scale pilot that will be studied in order to be implemented in different localities of the country. It is
characterized by its low costs and flexibility, because it is able to operate with sorghum and yam (or sweet
potato).
By now, this is a “Social Ethanol” proposal intended to become a development vector for sustainable
energy for rural populations that lack connection to the electricity distribution grid and that have a high
degree of dependence on fossil fuels.
Financial support came, in the initial stage, from the Colombian Ministry of Agriculture, however the final
technical developments were carried out by the Brazilian entities: Universidad Federal de Rio Grande do Sul
and Usinas Sociales Inteligentes (Social Intelligent Large Factories).
The production capacity of this plant is between 400 and 500 liters of hydrated ethanol per day. This
sort of ethanol allows operating a power generator to produce electricity at 110 and 220 volts. It requires 4
liters to generate one hour of electricity.
Despite firewood use being not very extensive among Colombia territory, it is still an important energy
source for isolated rural areas, so the project tries to encourage its reduction, and consequently deforestation
and offers cooking alternatives in ethanol-based stoves, diminishing smoke indoors.
Some other production efforts are attractive around cassava: The firms Desaro and Petrotesting from
Colombia are doing research since 2003 in order to use cassava as feedstock for ethanol production. They
started using 25 different kind of cassava and finally selected the 5 most productive, with a yield of 30 tons/ha
however the goal is to get 40 tons/ha. Having in account that the yield interval is between 180 and 200 liter
per ton it will produce approximately 8 thousand liters per year in the best scenario.
Note:
Clayuca is a consortium dedicated to support research and development related with cassava (known as
yucca in some countries) applications in LAC region. It has 13 country members: Colombia, United States,
Venezuela, Ecuador, Peru, Mexico, Nicaragua, Costa Rica, Haiti, Cuba, Nigeria, South Africa and Ghana. For
further information see: www.clayuca.org
See: (El Pais Newspaper, 2009; Eneas, 2006)
Appendix 2
Box 2. US-Colombia biofuels trade through a FTA:
A temporarily obstructed possibility
Mathew Rooney, Director of US Economic Policy of State Department explained that his country is
expected to consume 36 billion gallons of biofuels by 2022, which is based on possible imports from
producer countries like Brazil or Colombia(Guzman, 2009).
Colombia government was highly interested in building commercial bridges with the US so the pursuit of a
Free Trade Agreement (FTA) became a priority under Uribe Vélez administration. The final document was written
in 2006 and approved in the same year by Colombian Senate, nonetheless some concerns related with HHRR
violations delayed the approval from the ongoing US Senate, and so the agreement had not come into force.
For biofuel dynamics, a bilateral accord between Colombia and US in a is a possibility of improvement for both
countries, because it represents, for the former, a great opportunity to expand international demand, based on
“20 in 10” policy established under G.W. Bush administration* and it means, for the latter, additional supply of
ethanol and biodiesel which allows to reduce the amount of oil imported form Middle East and Venezuela.
However, there are several arguments that have darkened the implementation of such a pact, despite it has
been finally approved: as is seen as a threat to food security. In previous agreements as The Andean trade
preference program in 1991 the trend was to export food rather than to provide for local markets (Camastra,
2008); b. It is designed to open markets but in an unfair way: The FTA requires that Colombian agriculture remove
tariffs and subsides, while US agriculture remains heavily subsidized (Carnoval, 2009); c. Some indigenous and
African-Colombian communities are endangered if FTA is enacted. Democrats in the US senate considered
disapproving the FTA with Colombia based on information that accuses Multinationals and Large landholders to
use paramilitaries forces, under government indifference, to threat and displace rural population in order to
establish some development projects. This was added to the fact of the murders of indigenous, Union and co-ops
leaders (Camastra, 2008; Carnoval, 2009); d. Biofuels in particular have not been not part of the discussed
agreement: Energy is not part of the executive summary in the proposed document (Hopkins, 2008); the closest
approach to bioenergy would be just agricultural commodities without added value.
*Note: In 2007 U.S. president G.W Bush gave “a new proposal to cut U.S. gasoline usage by "20% in 10
years," to be accomplished primarily by mandating higher proportions of alternative fuels and increasing the fuel
efficiency standards for cars and light trucks”. (Oxford Analytica, 2007)
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Appendix 3
Box 3. Eviction processes: Recent history in Colombia
Some lands left behind by displaced population are currently abandoned. Others contrarily, are occupied
by third parties, that could be people that have acted in good faith, as displaced peasants from other regions;
but there is presence of bad faith occupants, as paramilitary groups, straw men, and some agribusiness
companies. Some hectares have changed their owners due to illegal pressures or fraudulent administrative
procedures, and now belong to straw men or have been sold to third parties.
According with Ministry of Agriculture there are several kinds of dispossess that have been identified in
the country: Forced transfer of the ownership, fake sales, administrative caducity, forced displacement of the
owner, and force displacement of occupants and landholders.
This situation has been facilitated by a high informality in the land tenure in Colombia. This is result of
both a slow action from the government to allocate uncultivated land to settlers and generalized practice of
no registering property documents in The Register of Public Instruments, in order to shun administrative
costs or simply because of the discrete role of paper and bureaucracy culture among rural areas.
Just 18% of total displaced population is officially recognized as a formal owner of the abandoned land.
The rest of them do not have a legal ownership, so are catalogued as occupants or landholders. With this
background, it turns to be quite complex to advocate for reallocation of land or relocation of population if
legal documentation is not in order.
“We are small farmers without land and we see how common savannas that we worked in are fenced off
and packed with palm oil and livestock. These lands that allegedly could not be entitled to farmers and
fishermen, were now allocated to palm oil producers”.
Macro-projects have influenced the loss of collective territories, according to Colombian General
Lawyer's Office report, and argue that indigenous people have loss territory because of natural resources
exploitation projects that have been implemented without consultation. This institution also reports that
illegal armed groups threaten, intimidate, murder and displace managers, leaders and other members of small
communal councils and indigenous reservations who oppose illegal crops (coca, poppy and marihuana) or
development projects in collective territories.
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Appendix 4
Endpoint and midpoint indicators

In order to assess the impact of a particular product on the environment, some midpoint
indicators are quantified; i.e. eutrophication, acidification, summer smog and eco-toxicity. Later
on these categories are related to endpoint-oriented, such as Human health, Ecosystem and
Natural Resources.
Note: Purple font corresponds to midpoint indicators and orange font to endpoint indicators
Regarding ISO 14040, LCIA (Life cycle impact assessment) is developed though two mandatory
steps (classification and characterization) and two optional steps (normalization and weighting).
In a first step were selected those indicators that are relevant for this study. Category selection
must reflect a set of environmental aspects related with the studied production system, taking
into account target and scope. Impacts created by biofuels are not limited to potential global
warming effects, but also include impact on the ecosystems, on humans and on resources
(Searchinger et al., 2008). For this particular study were selected those indicators (endpoint and
midpoint) more employed by the scientific community (See figure above).
Classification results as an exercise of evaluating the contribution of every substance to each
environmental problem. Afterwards, through a characterization mechanism emission impacts are
modelled. Cause-effect mechanism is based on models of destination, exposure and effect. Impact
is expressed as an assessment of impact in a common unit to all the contributors to the impact
category (e.g. kgCO2 equivalent per GHG that contributes to CC category) through the
implementation of characterization factors. A characterisation factor is a specific factor of a
substance calculated with a characterization model to express the impact of the elemental flow
(expressed in terms of the common unit mentioned above).
As alternative, different characterized impact assessments are related to a common reference
in a process of normalisation. For instance the common reference can be the impacts caused by
a person during a year, and this would ease the comparison between categories. A weighting of
these environmental impact categories is applied, unveiling the importance of those impacts
considered within the study.
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In this document were used the following midpoint categories, given their international
acceptance and wide implementation: (CML (Centre of environmental Science)(Guinée, 2001),
Eco-indicator 99 (Goedkoop & Spriensma, 2007),CED (Cumulative Energy Demand) (Hischier et al.,
2010)).
Methodology for Impact assessment CML
Explanation for those categories used in this section is found in this link
http://media.leidenuniv.nl/legacy/new-dutch-lca-guide-part-2a.pdf (section 4.3.3.2 pg 57).
Characterisation values are listed in http://media.leidenuniv.nl/legacy/new-dutch-lca-guide-
part-2b.pdf (section 4.3.1 pg 51)
Indicator Abreviation Units Comments Reference

It includes all impacts due to excesive
levels of macronutrients within the
Eutrophication EUTRO kg PO4 eq CML
environment caused by emission of
nutrients to the air, water and soil
It includes a great deal of impacts in soil,
Acidification ACID kg SO4 eq aboveground and underground water, CML
ecosystems and materials
Potentially affected fraction (PAF). It is
assessed based on toxicity data of
terrestrial and water organisms (it covers
Eco-toxicity ETOX PAF m2yr EI99
microorganisms, plants, algae,
amphibians, worms, mollusc, crustacean
and fish)
Formation of reactive substances
Photochemical (particularly ozone), which turn to be
SMOG kg C2H4 eq CML
Oxidation hazardous to human health, environment
and crops.
DALY
Respiratory (disability Inclusion of PM10,PM22, PST, NOx, CO,
MP EI99
diseases adjusted VOCs and Sox
life years)
Midpoint indicators were calculated by use of models relatively robust, hence there is less
uncertainty in comparison to endpoint methods. In contrast, endpoint indicators draw the relative
importance of extraction and emission from LCA inventory and that sort of information is easy to
process by decision-makers.
Methodology for Impact assessment Eco-indicator 99
All the explanation regarding classification of impact categories (midpoint)in terms of effect
on human health, ecosystems and resources and its corresponding normalisation and weighting
until a final point (Environmental impact point) are located in http://www.pre.nl/content/reports.
The goal of the Eco-indicator 99 is to provide a holistic evaluation of the impact on the
environment based on a broken down perspective. Thus, the starting point was to define
“environment”. This was carried out with a panel of European scholars, experts in LCA, where
there were identified three protection areas (Human health, ecosystem and natural resources);
which are described as follows:
Human health: this category includes the number and duration of diseases and losses of
labour days due to premature death due to environmental issues. The damage to human health
is expressed in DALY (disability adjusted life years) and the effects that are taken into account are:
CC, ozone layer depletion, carcinogenic effects, respiratory effects and ionizing radiation.
Ecosystem quality: under this category is covered diversity of species, particular vascular
plants and inferior organisms. Deterioration of the ecosystem quality is expressed as a percentage
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of disappeared species in a particular area due to the environmental burden and the effects of
eco-toxicity, acidification, eutrophication and land use.
Natural resources: this category contemplates the excess of required energy in the future in
orter to achieve minerals and fossil fuels of a minor quality. Damage is assessed as the extra energy
required for future extractions. Depletion of agricultural resources and bushels of sand and gravel
are included in land use.
The figure below presents an explanation of the damage model
Source: (Ministry of Housing & environment, 2000)

As it is indicated in the figure above, these three protection areas can be weighted among
them to obtain a single added score. Weighting factors employed in the Eco-indicator 99 come
from a panel of experts in LCA. There are some other endpoint methodologies (such as EPS 2000,
and ecological scarcity), nevertheless; eco-indicator 99 is widely accepted between scholars
internationally. Result indicate that members of the panel found that the damage on human
health is as important as the one caused to the ecosystem, whereas damage of natural resources
possess a an mid level importance.
Weighting of protection areas depend on personal preferences and therefore it is not
representative. Furthermore, mechanisms to assess - damage are adapted to European
environmental conditions and might not be suitable for Colombian conditions. Nonetheless, the
advantage in the Eco-indicator is that all results are summarized in one single score, which eases
decision-making process. Therefore, the implementation of the Eco-indicator 99 with several
midpoint indicators is fully justified if results are discussed and analysed properly. LCA calculations
were carried out with Simapro v7.2 (PRé Consultant, 2010).
424
Limitations of the study
Assessment of environmental impacts in the life cycle usually requires of a great deal of
information and assumptions in the model. Through real data collection in field for every stage of
the life cycle and based on the state of the art in the emission models was tried to achieve
maximum precision in the numbers.
Notwithstanding, this methodological approach has limitations, given that there is no LCA
adapted for the Colombian conditions. By default in this exercise were used the indicator
standardized for the European case and it is expected to implement adjustments in future
research endeavours, given that current results of total environmental impact might be indicative
but need to be analysed critically.
Results of endpoint and midpoint indicators are presented for fossil fuels, sugarcane-based
ethanol and palm oil-based biodiesel:
Fossil fuels
Midpoint indicators
The figure below shows environmental impacts for a standard vehicle for Colombia and
California. In general the LCA indicates a higher impact in the Californian case, given that usually
the life span of these vehicles in Colombia is longer, creating a lesser effect on the infrastructure
aspect (grey bar).
Figure: Comparison between standard vehicles (California vs Colombia)

If gasoline and diesel are employed in a similar vehicle, impacts do not differ significantly,
except for PM and SMOG. In general, vehicles that are powered with diesel create a higher
amount of emissions that those powered with gasoline, due to an incomplete combustion. SMOG
results are due mainly to carbon monoxide. Given those uncertainties in the Eco-invent inventory
for international data, impact of diesel in the American case seem to be underestimated. In the
case of Colombia, data have been verified and adapted for this study and results are reliable.
Aggregated environmental impact
Total environmental impact (assessed with the eco indicator 99) is larger (per driven km) in
US than in Colombia (145% for diesel and 130% for gasoline). As it was previously discussed an
explanation is the lifespan of the vehicles and that fuel consumption and emission flows are more
favorable in the Colombian case54 (in comparison with the international fleet).
54
Renault Logan complies with the European emission standards EURO4.
425
Figure: Total environmental impact. Comparison between vehicles in California and
Colombia
As is it shown in the chart above, this higher environmental impact is due to extraction of
crude oil by depletion of non-renewable resources. The higher impact on oil refining is related to
a higher consumption og energy per MJ of fuel compared to diesel.
Results of sugarcane-based ethanol and palm oil biodiesel
Midpoint indicators
If GW is left aside, both Et-Oh and biodiesel exhibit a higher level of impact in comparison to
its fossil counterparts, in terms of environmental indicators. Most of them take place in cultivation
stage.
Figure: Environmental impacts for ethanol
Figure: Environmental impacts for biodiesel
426
Impact in acidification and eutrophication is caused mainly by emission in the crop by use of
fertilizers (ammonia and phosphates). Eco-toxicity is due to heavy metals employed in fertilizers,
burnt fuel and tires’ wearing (mainly zinc), causing soil and atmospheric pollution.
Summer smog and respiratory diseases can be caused by a frequent practice in sugarcane
cultivation which is the pre-harvesting burning process (in the case of palm oil this phenomenon
come from the production and use stages). For ET-OH there is no consensus on the net effect of
such practice on human health: while some studies show indicate that there is no significant effect
on the local population (Jose Goldemberg, 2007), whereas some other studies unveil negative
effects on children and elderly people, due to respiratory diseases (Nicolella & Belluzzo, 2011).
Within this study the PM effect due to pre-harvesting burning task is assumed in low density areas
in terms of population. In ethanol production stage is possible to assume that the biggest impact
is given by PM and NOx due to bagasse combustion (for ethanol) and cogeneration (for biodiesel).
Environmental aggregated impact
As it is observed in the figures below, the impact of ethanol and biodiesel (in environmental
terms) is higher than fossil fuel (141% and 143% correspondingly). Cultivation stage is the major
contributor to global environmental impact and it is caused by impact on human health (caused
by PM in the pre-harvesting burning) (35% of the Eco-indicator). In addition some land does not
allow natural vegetation regeneration, contributing to 50% and 70% to the global impact (for
ethanol and biodiesel respectively).
For biodiesel, the remaining impact is created by heavy metal emissions (close to 10 to 20%)
and fertilizers production (approx. 10%).
For ethanol the main environmental burden can be explained by NOx and PM emissions by
bagasse combustion. In the case of biodiesel fiber and shells combustion is the cause of the
aforementioned.
Figure: Total environmental impact (Eco-indicator 99) for sugarcane-based ethanol
Figure: Total environmental impact (Eco-indicator 99) for palm oil-based biodiesel
Impact values
Values for the information presented formerly for both bioethanol and biodiesel indicators
are related below:
Table: Midpoint and End point indicators for sugarcane-based ethanol and palm oil biodiesel
427
Indicator ACID EUTRO ETOX SMOG MP EI99
Units kg SO2eq/v.km kg PO4-eq/v.km PAF*m2yr/v.km kg C2H4eq/v.km DALY/v.km EI99 points/v.km
Gasoline
E100 Col, max 8.94E-04 6.79E-04 7.72E-01 7.16E-04 3.55E-08 2.22E-02
E100 Col, avr 8.44E-04 4.59E-04 3.20E-01 7.15E-04 1.42E-08 2.15E-02
E100 Col, min 4.22E-04 2.63E-04 2.18E-01 7.07E-04 1.16E-08 1.97E-02
Gasoline 4.49E-04 1.04E-04 1.44E-01 5.25E-05 8.06E-09 1.52E-02
Indicator ACID EUTRO ETOX SMOG MP EI99
Units kg SO2eq/v.km kg PO4-eq/v.km PAF*m2yr/v.km kg C2H4eq/v.km DALY/v.km EI99 points/v.km
Diesel
B100 min 3.69E-04 3.41E-04 7.47E-02 4.02E-05 9.16E-09 1.71E-02

B100 avg 5.35E-04 8.34E-04 1.46E-01 4.19E-05 1.09E-08 1.88E-02
B100 max 5.72E-04 1.22E-03 2.00E-01 4.43E-05 1.12E-08 1.96E-02
Diesel Col 4.04E-04 1.29E-04 1.42E-01 3.17E-05 8.27E-09 1.31E-02
While the Colombian vehicles were adapted to the EcoInvent inventory standard vehicle, the
other biofuels were taken from Zah et.al. (Zah et al., 2007).
428
The main goal of a LCA is providing an assessment of the environmental impact of the more
important biofuels within the Colombian context (sugarcane ethanol and palm oil biodiesel).
Likewise is very important to build a comparison in reference to traditional fossil fuels (gasoline
and diesel). The average environmental impact was compared to international sustainability
standards, which provide a first approach on the potential of the Colombian biofuels as a good for
international trade. In addition, critical and sensitive factors which take part in the environmental
performance are defined and assessed in order to create plans of action and improvement.
Average environmental impact assessment of Colombian biofuels is based on data from those
fields where the feedstock is produced. Data was contrasted and complemented by experts and
literature review, and the EcoInvent database.
Sugarcane-based ethanol
What is the total environmental impact for the Colombian sugarcane-based ethanol?
The aggregated environmental impact of bioethanol- assessed with the Ecoindicator 99 – is
slightly higher than regular fossil gasoline (141%). Cultivation stage is the major contributor to
the total environmental impact and it is mainly caused by the effect on the human health due to
emission of particulate matter released by the pre-harvesting burning process (35% of the
Ecoindicator 99), and the land use that avoid regeneration of natural species. In comparison with
some other biofuel from elsewhere around the world, Colombian biofuels exhibit attractive
performance and they are considerably favorable.
Nonetheless, it is important to remark that this indicator was built based on European
conditions and the assessment has not been adapted for the Colombian conditions. Thus, this
study could work as a comparative reference, but requires a proper fine tuning This could be the
start of future research that establish adapted inventories
What is the scope of impact of Colombian ethanol?
Biofuels exhibit some other environmental impacts, which are not shared by traditional
energies, as contrarily occurs with GHG’s and Non-renewable energy cumulative demand.
Extraction of crude oil and further refining are relatively simple and create less impacts regarding
eutrophication, acidification in comparison to biofuels.
These impacts of biofuels occur mainly in the cultivation stage, due to the need of large
extensions of land and several production factors such as machinery and fertilization. Fertilizer
production is energy intensive and the crop itself is accompanied by several emissions (ammonia,
nitrates, phosphates, heavy metals), therefore quality of land, air and water are affected
(acidification, eutrophication and eco-toxicity). Additionally, the pre-harvesting burning has a
significant impact on the air quality and it might affect the quality of the environment as a whole
and of course human health (by smog and particulate matter). Is not conclusive the effect on
human health on the nearby population: whereas some authors argue that there is no evidence
of harm on the locals (Jose Goldemberg, 2007), some other authors disagree and explain that such
practice affects in major extent to elderly people and children due to respiratory diseases
(Nicolella & Belluzzo, 2011).
However, these environmental impacts depend highly on the sensibility of the environment
and therefore they have a local scope. As there is no impact assessment methodology created
specifically for the Colombian case, European models were employed.
Biodiesel
What is the environmental impact of Colombian palm oil based biodiesel?
The aggregated environmental impact of Colombian palm oil-based biodiesel –assessed with
the EcoIdicator 99- is higher that is fossil equivalent (by 143%). As in the case of ethanol the
cultivation stage, of palm oil-based biodiesel is the major contributor to total environmental
impact and it is caused by land occupation, which avoids regeneration of natural vegetation
(approximately 70% of the impact) and fertilization (approximately 20% of the impact).
As it was mentioned before, the indicator is based on the European environment and the
impact assessment has not been adapted to Colombian conditions.
429
Values are related to reference fossil fuels (which has been valued as 100%). Green area
means lesser emissions of GHG and minor impact and minor environmental impact in comparison
to gasoline (Biofuels adapted to Ecoinvent standard vehicle, other type of biofuels brought from
Zah et al 2007).
What is the scope of impact of Colombian biodiesel?

Some other environmental indicators, in addition to GHG emissions and Non-renewable
energy cumulative demand, were taken into account, and they showed that biofuels have higher
impacts than regular fossil fuels. Production of fertilizers is particularly energy intensive and the
emissions that come from the crop (such as ammonia, nitrates, and heavy metals) disturb the
quality of air, water and soil (impacts on acidification, eutrophication and eco-toxicity). Summer
smog is mainly caused by emissions from biofuels within processing and using stages (COx and
SOx). The main impact that emerges from biofuel production regarding PM is associated with NOx
from the cogeneration process.
As it was mentioned, these impacts hinge on the sensibility of the environment and therefore
they are a reflection of a local phenomenon. As there is no specific methodological approach to
assess environmental impact and neither designed for the Colombian conditions, this study is
supported on European models. Indicators such as GWP and CED can be used, but some other
indicators must be interpreted with caution.
Final conclusions
In addition to GHG and Nonrenewable energy cumulative demand, some other environmental
indicators are considered. Based on this information it can be established that biofuels have some
impacts that are not present in regular fossil fuels. Impacts on acidification, eutrophication and
eco-toxicity are caused mainly by use of fertilizers and pesticides. These negative impacts can be
mitigated through the implementation of good agricultural practices and the use of alternative
treatments, such as, organic controls of insect and pests. In such sense agricultural research and
land management result crucial to achieve better results regarding environmental performance.
Cenicaña and Cenipalma, along with the Ministry of Agriculture, have an important role to play
within the Colombian context.
Results of the ecoindicator 99 show the midpoint assessment, indicating that biofuels in
general create a higher environmental stress in comparison to regular fossil fuels. Even though,
the midpoint methodology is not adapted to Colombian conditions, it is important to analyze
beyond GWP and Cumulative Energy Demand, and look to other environmental aspects.
Appendix 5
Wastes on land (sugarcane)
Deposits of heavy metals are calculated as the balance between the input of heavy
metals due to fertilization and output due to dirt remotion (Jungbluth et al., 2007). The
emission by account of pesticides is presented as follows:
Table 95 Residuals to the ground by pesticides and fertilizer application
Residuals to the ground by pesticides and fertilizer application (kg / kg of sugarcane)
Parameter C001 C002 C003 C004 C005 C006 C007 Average
Cd -2,30E-10 2,00E-10 -3,40E-10 -3,50E-10 -3,60E-10 3,60E-09 7,30E-09 1,10E-09
Cu 1,70E-08 3,60E-07 6,40E-09 6,20E-09 4,30E-09 1,60E-06 2,30E-06 5,10E-07
Zn 1,60E-07 2,30E-06 8,30E-08 7,50E-08 6,80E-08 9,60E-06 1,20E-05 3,00E-06
430
Pd 3,70E-09 7,30E-09 4,00E-09 9,10E-10 3,60E-09 5,40E-08 1,20E-07 2,30E-08
Ni 1,30E-08 2,90E-08 6,70E-09 6,30E-09 6,00E-09 1,40E-07 3,20E-07 6,40E-08
Cr 8,90E-09 2,00E-08 4,10E-09 3,80E-09 3,40E-09 1,20E-07 8,40E-06 8,10E-07
Hg 3,40E-18 2,50E-09 0,00E+00 0,00E+00 0,00E+00 1,30E-08 1,60E-08 3,90E-09
Glyphosate 0,00E+00 2,60E-08 2,70E-08 3,50E-08 2,90E-08 6,00E-08 8,90E-08 8,90E-08
Sulphur 0,00E+00 1,60E-04 0,00E+00 0,00E+00 0,00E+00 0,00E+00 0,00E+00 0,00E+00
Roundup 0,00E+00 0,00E+00 0,00E+00 1,10E-07 0,00E+00 0,00E+00 0,00E+00 0,00E+00
Ametryn 4,90E-08 4,90E-08 2,70E-08 3,20E-08 2,70E-08 0,00E+00 0,00E+00 0,00E+00
Diuron 1,20E-07 0,00E+00 3,00E-06 1,70E-07 3,00E-06 1,50E-10 1,80E-10 1,80E-10
Terbutryn 5,10E-06 6,20E-06 5,40E-06 6,40E-06 5,40E-06 0,00E+00 0,00E+00 0,00E+00
2,4-D 5,10E-09 4,30E-09 3,70E-09 4,40E-09 3,70E-09 5,50E-09 6,70E-09 6,70E-09
Sodium
0,00E+00 1,50E-06 0,00E+00 0,00E+00 0,00E+00 2,10E-06 2,50E-06 2,50E-06
hypochlorite
Atrazine 0,00E+00 0,00E+00 0,00E+00 0,00E+00 0,00E+00 1,80E-07 2,30E-07 2,30E-07
Hydrocarbons,
aliphatic,
0,00E+00 0,00E+00 0,00E+00 0,00E+00 0,00E+00 2,30E-07 2,80E-07 2,80E-07
chlorinated
alkanes
Fluazifop 0,00E+00 0,00E+00 4,60E-08 6,00E-08 5,00E-08 0,00E+00 0,00E+00 0,00E+00
Appendix 6
Description of the stages in the sugar production process in the sugar mill (ingenio)
Process Description
Receipt and
Arriving sugarcane is weighted and led to the loading place, where cranes put it into
preparation of
wagons or baskets, to be further directed to the preparation zone
sugarcane
Sugarcane is led by a system of conveyor belts to the cutters and fiber-breaking machines.
This equipment works by the power of steam turbines or electricity, and it have high-
speed spinning knives, and under them it is a layer of sugarcane, which is fractioned in
Preparation and order to ease juice extraction. Prepared sugarcane arrives to the milling tandem, which is
milling formed by 6 crushers of 3 or 4 weights each. Such weights are metal rollers and the
sugarcane layer passes through them, and by use of pressure juice is extracted. These
crushers can be driven by steam turbines or electricity. Water is added to sugarcane
along the way, hence sucrose is extracted from the fibers.
Resulting bagasse, which comes from the last milling section is fed to the boilers and it is
used as fuel for creating high-pressure steam. This steam is employed in the turbines and
Steam
in the preparation equipment, as well as in the turbo-generators used for electricity
generation
generation to feed the processing facilities (surplus is sold to public energy grid). Exhaust
steam is employed in evaporation and juice heating processes.
431
The juice extracted from mills is weighted on scales. Subsequently it is sulphatized, and
lime is added, in order to put contaminants away, and it is heated with vegetable steam in
Heating and
interchangers up to 102-105° C. Once the juice is alkalized it goes through a tank where
juice
some gases (non-condensable) are released. Afterwards juice is fed to clarificators,
clarification
where insoluble solids are separated from the juice, in a decanting process, with a mud-
like substance as the output product.
Muds go through a sucrose recovery process by way of filtration. Resulting juice is

Filtration
returned to the process and it is mixed with the juice that comes directly from the mill.
Clarified juice is received in the evaporators, with a content of solids (15° degrees brix), it
is concentrated up to 60°-70° brix. This concentrated juice is called "meladura" (honey-
Evaporation like kind of substance). Evaporation station has between 4 and 6 stages where juice is
reduced to sucrose content as the process progresses. This substance goes through a
"meladura" clarification process as well.
The sucrose embedded in the meladura is crystallized, and it is oversaturated, by effect of

the evaporation process. Resulting material has a liquid part (honey) and a solid part
(sugar crystals) called "cooked mass".
Crystals are separated from honey by centrifuges. During the centrifugation process,
Crystallization
sugar is washed with hot water or steam to remove the honey layer that covers these
and
crystals and afterwards honey is taken to dryers.
centrifugation
This process is applied three times and only then an exhausted honey is obtained (called
"Honey C" or "Miel C"), which is used for animal fodder. In those sugar mills associated
with ethanol processing plants, only two crystallizations take place and the by-product
(Honey B or Miel B) is sent to the distillery as raw material for alcohol fuel production.
During the drying process the excess of moisture is taken away by way of hot air, with the
Drying
purpose of complying with international quality standards. Right after, sugar is packed.
Refined sugar manufacture requires raw sugar to feed the process. Raw sugar is dissolved
in water, making a syrup-like substance, which is filtered in DSM sieves in order to take
Sugar refinery away insoluble residuals. Later on, it goes through a clarification process, and afterwards
it undergoes a de-coloration by using active carbon. Clarified and discolored syrup goes
through crystallization, centrifugation and drying process, obtaining refined sugar
Transportation
from the sugar
Transportation of the honey B is carried out by use of pipelines between the sugar mill
mill to ethanol
and the ethanol distillery facilities.
production
plant
Source: Cenicaña website
Appendix 7
Transportation distances per every 100 tons of sugarcane

Transport by Quantity (tons
Item truck > 28 t per 100 of
(km) sugarcane
Sugarcane 23,27 100
Lime 493,7 0,08
Flocculant 33,3 0
432
Sulfuric acid 184,7 -
Sulphur 448,3 0,01
Water 0 57,55
NaOH, Sodium hydroxide 30 0,02
Biocides 620 0
Surfactant 620 0
Charcoal 24 1,4
Total 2405.6 ton - km
Appendix 8
Emissions per 1 kg of bagasse combustion and per every 100 tons of sugarcane
(kg unless indicated otherwise)
Quantity per
Substance Quantity per 100 ton
kg of bagasse
Residual heat (MJ) 1,00E+06 5,80E+00
Carbon dioxide 1,20E+05 7,10E-01
Nitrogen oxide 4,90E+03 2,00E-04
Particles, < 25 µm 2,50E+03 1,00E-04
Biogenic carbon monoxide 3,90E+02 1,60E-05
Biogenic methane 2,40E+01 1,80E-07
NMVOC, different methane
compounds of volatile organic, no
specified origin 3,40E+01 1,40E-06
Sulphur dioxide 1,40E+02 5,60E-06
Monoxide of di-nitrogen 1,30E+02 5,20E-06
Acetaldehyde 3,40E+00 1,40E-07
Aliphatic hydrocarbons to alkanes,
unspecified 5,10E+01 2,10E-06
Aliphatic hydrocarbons, unsaturated 1,70E+02 7,00E-06
Arsenic 5,60E-02 2,30E-09
Benzo(a)pyrene 2,80E-02 1,10E-09
Benzene 5,10E+01 2,10E-06
Br 3,30E+00 1,40E-07
Ca 3,30E+02 1,30E-05
Cd 3,90E-02 1,60E-09
Cl 1,00E+01 4,10E-07
Cr 2,20E-01 8,90E-09
Cr VI 2,20E-03 9,00E-11
Cu 1,20E+00 5,00E-08
Dioxins, assessed as 3, 7, 8
tetrachlorodibenzodioxin-p-dioxin 1,70E-06 7,00E-14
Ethyl benzene 1,70E+00 6,80E-08
433
F 2,80E+00 1,10E-07
Formaldehyde 7,20E+00 2,90E-07
Hexachlorobenzene 4,00E-07 1,60E-14
Hg 1,70E-02 6,80E-10
K 1,30E+03 5,30E-05
Mg 2,00E+01 8,10E-07
Mn 9,50E+00 3,90E-07
Na 7,20E+01 2,90E-06
Ammonium 9,70E+01 3,90E-06
Ni 3,30E-01 1,40E-08
P 1,70E+01 6,80E-07
Polycyclic aromatic hydrocarbon 6,10E-01 2,50E-08
Pb 1,40E+00 5,60E-08
Pentachlorophenol 4,50E-04 1,80E-11
Toluene 1,70E+01 6,80E-07
m-xileno 6,70E+00 2,70E-07
Zinc 1,70E+01 6,80E-07
Appendix 9
Description of the ethanol manufacture process

Process Description
Raw Raw materials for alcohol manufacture are clarified juice, honey B or "miel B" and
materials "melaza", and they all come from the sugar refinery
Fermentation for producing sugarcane-based ethanol is a microbiologic process, in

which the sugar embedded in the raw materials are turned, by way of yeast
application, into ethanol and carbonic gas (CO2).
Fermented "must" or wine that comes from the final fermentation equipment is
taken to a sedimentation tank where yeast decants, goes out from the bottom and
goes to the yeast activation tank, whereas the liquid known as wine is sent to
Fermentation distillation process.
This type of wine has alcohol diluted in water and some other impurities that must
be separated from the alcohol through distillation process. This process takes
advantage of the boiling temperature of ethanol that is below the boiling
temperature of water, hence those vapors of alcohol leave from the upper part of
the must column, whereas the lower part releases vinasses, which is residual made
out water and some contaminants.
Those vapors, in the first column, contain near to 45% alcohol and they are sent to
a rectification column, to get 95% alcohol in the upper part. In the lower part is left
Distillation a residual called "flemaza", which has some alcohol traces.
434
Ratified alcohol in distillation has 95% v/v ethanol and 5% v/v water. It is necessary
to reduce the amount of water from this mix in order to be used as fuel, therefore
a molecular sieve is used and through a synthetic resin retains water contained in
the rectified alcohol, up to a concentration of 99.5% and a minimum quantity of
Dehydration water, reaching established standards of alcohol fuel.
One fraction of vinasse that goes out from the must column is reused in the
fermenting process and the rest is led to flubex evaporators, in which water is
Vinasse taken away in form of steam in order to concentrate vinasse, reduce the amount
concentration of it and ease further treatment.
Storage and Finally the product is sent to storage area, which is permitted to keep 20 days of
delivery production to cover market demand.
Industrial-size compost plant transform organic residuals created in the sugar and
ethanol production processes, such as cachaza, ashes, agricultural wastes,
concentrated vinasse. These residuals are turned into a stable and hygienic
product that can be applied in agricultural practices as organic fertilizer and soil
Compost booster.}
Water Residual water treatment plant (RWTP) receives all flemazas and some other
treatment residuals (condensed) of vinasse concentration.
Cenicaña website
Appendix 10
Water treatment mass balance
In the next 2 tables are presented the flow of residual water and its composition.
Water flow was analyzed from the location object understudy, whereas data of
composition were found in the literature (Hampannavar & Shivayogimath, 2010).
Entry of residual waters and the production of

100 tons of sugarcane (ton/100 tons of
sugarcane)
Substance Quantity
Input
Flemazas 7,32E+00
Condensed 6,88E+00
Total 1,42E+01
Output
Treated water 1,27E+01
Mud 2,10E+00
435
The total flow of muds within the pools system (250 m3/h) was close to 11% of the
water input (Dilek, Yetis, & Gökçay, 2003).
Composition of residual water and treated residual water per m3 (kg/m3)

Substance Input Output Removal Standard
Chemical oxygen demand (COD) as O2 2,5 0,4844 81% 0,25
Biochemical oxygen demand (COD) as O2 0,75 0,07111 91% 0,05
Dissolved organic carbon (DOC) as C 0,0458 0,0075 84%
Total organic carbon (TOC) as C 0,0673 0,0073 89%
N 0,0275 0,0203 26% 0,01
P 0,0019 0,0007 63% 0,002
Source: CUE
This process is based on the description of the process reported in Ecoinvent

registered as “treatment, residual waters, treatment of residual waters, class 2/m3/CH”
and the methane emissions were adapted as a function to the composition of input and
output material.
Methane is captured in an anaerobic reactor and is burnt. Nonetheless, it assumed a
loss of 15% of methane. CH4 emissions were calculated using the factor suggested by
IPCC
Methane emissions during residual water treatment

Parameter Quantity Unit
Removed COD 2,86E+01 kg/100 tons of sugarcane
Methane 6,01E+00 kg CH4/100 tons of sugarcane
Released CH4 9,02E-01 kg/100 tons of sugarcane
436
Appendix 11
Mass Balance for compost stage
Below it is shown the material input for compost for “average” and “optimized”
scenarios per every 100 tons of sugarcane.
Material inputs for compost per every 100 tons

of sugarcane (tons)
Input Average Optimized
Ashes form the boiler 1,6 0,25
Dust from sugarcane
0,13 0,13
residual
Sugarcane leaves 0,58 0,58
Muds (RWTP) 2,1 2,1
Mud filtered 4,17 4,17
Vinasse 35% 2,36 2,36
Vinasse 55% 0,24 0,24
Source: CUE from data field
The next 2 tables display mass balances for compost material. Composition data from
different input material were taken from the literature, while compost composition was
calculated based on the principles of mass balance.
Mass and compost balance for every 100 tons of sugarcane (average scenario)
Organic material
Humidity
Quantity
Water
P2O5
K2O
C/N
Substance This study

N
C
Ton/100
ton (dry
ton of % ton % % % % % -
weight)
sugarcane
Input
Ashes form the
1,6 5 1,52 0,08 - - - 0,87 1,67 -
boiler
Dust from
sugarcane 0,13 50 0,07 0,07 74 41 0,15 0,12 - 273,33
residual
Sugarcane leaves 0,58 50 0,29 0,29 74 41 0,15 0,12 - 273,33
Muds (RWTP) 2,1 63 0,78 1,32 - 31,6 4,17 10,34 - 7,58
437
Foam and
impurity on top
4,17 80 0,83 3,33 80 44,4 1,5 1,8 0,3 29,60
of sugarcane
juice (cachaza)
Vinasse 35% 2,36 65 0,83 1,53 86,85 52,2 0,58 0,07 5,52 90,00
Vinasse 55% 0,24 45 0,13 0,11 86,85 52,2 0,58 0,07 5,52 90,00
Total entry 11,18 4,45 6,73
Output
Compost 6,13 27,5 4,44 1,69 26,15 18,73 0,76 1,63 1,2 30,89
Evaporated
5,05 100 - 5,05
water
N2O 0,00041 0,00019 0
CH4 0,00004 0,00004
Emissions of N2O were calculated based on nitrogen inputs, employing a value of

1.222% (IPCC, 2006). Methane emissions are calculated based on the IPCC of 10 g of CH4
per kg of dry matter (IPCC, 2006).
Mass and compost balance for every 100 tons of sugarcane (optimized scenario)
Humidity
Quantity
material
Organic
Water
P2O5
K2O
C/N
Substance This study
N
C
Ton/100
ton (dry
ton of % ton % % % % % -
weight)
sugarcane
Input
Ashes form
0,25 5 0,24 0,01 - - - 0,87 1,67 -
the boiler
Dust from
sugarcane 0,13 50 0,07 0,07 74 41 0,15 0,12 - 273,33
residual
Sugarcane
0,58 50 0,29 0,29 74 41 0,15 0,12 - 273,33
leaves
Muds
2,1 63 0,78 1,32 - 31,6 4,17 10,34 - -
(RWTP)
Foam and
impurity on
top of
4,17 80 0,83 3,33 80 44,4 1,5 1,8 0,3 29,60
sugarcane
juice
(cachaza)
Vinasse 35% 2,36 65 0,83 1,53 86,85 52,2 0,58 0,07 5,52 90,00
Vinasse 55% 0,24 45 0,13 0,11 86,85 52,2 0,58 0,07 5,52 90,00
Total entry 9,83 3,17 6,66
438
Output
Compost 4,36 27,5 4,44 1,69 26,15 18,73 0,76 1,63 1,2 30,89
Evaporated
5,47 100 - 5,47
water
N2O 0,0003 0,0003
CH4 0,00003 0,00003
Appendix 12
Agrochemicals employed in different areas of the palm oil crop (kg/ kg FFB)
Agrochemical E001 E002 E003 N001 N002 N003 N004 C001 C002 C003
4.40E- 6.21E- 1.98E- 1.50E- 2.10E- 6.95E- 3.75E- 1.28E- 1.32E- 1.28E-
Glyphosate 05 05 05 04 04 07 04 04 04 04
Bipiridilium 1.88E- 1.71E- 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+
compounds 05 06 00 00 00 00 00 00 00 00
1.27E- 1.21E- 3.35E- 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+
Urea compounds 05 05 05 00 00 00 00 00 00 00
Ethoxylates alco 1.57E- 2.21E- 2.06E- 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+
hols * 05 05 05 00 00 00 00 00 00 00
Organophosphat 5.88E- 5.07E- 0.00E+ 1.12E- 1.57E- 0.00E+ 0.00E+ 0.00E+ 0.00E+ 4.13E-
e compounds 05 05 00 05 05 00 00 00 00 06
Acetamide 6.08E- 1.43E- 3.08E- 0.00E+ 0.00E+ 0.00E+ 1.40E- 0.00E+ 0.00E+ 8.06E-
compounds 06 06 05 00 00 00 05 00 00 06
Phthalimide 0.00E+ 0.00E+ 0.00E+ 6.49E- 9.09E- 1.44E- 0.00E+ 0.00E+ 0.00E+ 0.00E+
compounds 00 00 00 07 07 06 00 00 00 00
Pyrethroid 0.00E+ 0.00E+ 0.00E+ 7.69E- 1.08E- 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+
compounds 00 00 00 08 07 00 00 00 00 00
Benzimidazole 0.00E+ 0.00E+ 0.00E+ 1.86E- 2.60E- 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+
compounds 00 00 00 05 05 00 00 00 00 00
N Cyclic 0.00E+ 0.00E+ 0.00E+ 1.00E- 1.40E- 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+
compounds 00 00 00 06 06 00 00 00 00 00
Dithiocarbamate 0.00E+ 0.00E+ 0.00E+ 1.35E- 1.89E- 0.00E+ 2.24E- 0.00E+ 0.00E+ 0.00E+
compounds 00 00 00 06 06 00 04 00 00 00
Triazine 0.00E+ 0.00E+ 0.00E+ 1.14E- 1.59E- 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+
compounds 00 00 00 06 06 00 00 00 00 00
Thiocarbamate 0.00E+ 0.00E+ 0.00E+ 4.98E- 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+
compounds 00 00 00 08 00 00 00 00 00 00
0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+ 0.00E+ 2.81E- 0.00E+ 0.00E+
Herbicides 00 00 00 00 00 00 00 05 00 00
5.58E- 2.86E- 0.00E+ 5.41E- 7.57E- 1.44E- 0.00E+ 1.17E- 1.85E- 1.08E-
Insecticide 06 06 00 08 08 04 00 04 06 05
0.00E+ 0.00E+ 0.00E+ 2.85E- 3.99E- 0.00E+ 0.00E+ 6.70E- 0.00E+ 0.00E+
Fungicide 00 00 00 07 07 00 00 05 00 00
* All agrochemicals can be accessed in a local shop but this one. Alcohol is obtained directly from the plant
439
Appendix 13
Description of the Palm oil process

Process Description
FFB are weighted and discharged from the trucks to the wagons of the palm
Loading
FFB train
Sterilization Sterilization is carried out with low pressure steam for about 90 minutes
Fruits are separated from the bunch through a mechanical process. Those
bunches, without fruits, are called "tusas" and they are transported by way of
Threshing
conveyors to trucks and after that they are taken back to the field for
compost process.
Digestion is the process employed to release the oil from the fruit by breaking
Digestion and those cells that contain the oil. Usually a digester is a cylinder, heated with
crushing steam, and attached to a shaker. This shaker hits fruits and makes oil
extraction easier
Oil is clarified by gravity, using the difference of densities. Clarified density is
Clarification
stored in tanks. Oil is dried to reduce moisture, through heating in a system
and drying
of tanks or via atmospheric drying.
The water contaminated with oil is a by-product of the clarification process.
Effluents
This water goes through centrifuges with the aim to recover the remaining oil.
treatment
The rest of the liquid is treated in the Residual Water Treatment Plant (RWTP)
Fiber- The mix of nuts and fibers is separated. Nutshells are broken and kernel meal
breaking and is taken aside. Kernel meal goes through the drying silo and it is crushed to
meal extract oil. Palm kernel oil is sold and kernel cake meal is used as fodder.
extraction Fibers and shells are picked up and employed as fuel in the boiler.
Appendix 14
Air emissions as product of the combustion of 1 MJ of fiber, 1 MJ of shells per each 100
tons of FFB (kg unless indicated otherwise)
1 MJ of 1 MJ of 100 tons of
Emission
fiber shell FFB
Residual heat (MJ) 1 1 303.209
Carbon dioxide 0.24 0.15 62750
Nitrogen oxides 1.14E-04 1.50E-04 3.88E+01
Particulate matter 5.84E-05 7.68E-05 1.98E+01
Carbon monoxides 9.11E-06 1.20E-05 3.09E+00
Methane 5.65E-07 7.42E-07 1.91E-01
NMVOC, non-methane volatile organic compounds 7.94E-07 1.04E-06 2.69E-01
Sulphur dioxide 3.24E-06 4.26E-06 1.10E+00
Nitrogen monoxide 2.99E-06 3.93E-06 1.01E+00
Acetaldehyde 7.94E-08 1.04E-07 2.69E-02
Aliphatic compounds, alkane, unspecified 1.18E-06 1.56E-06 4.01E-01
Aliphatic compounds, unsaturated 4.03E-06 5.30E-06 1.37E+00
440
Arsenic 1.30E-09 1.71E-09 4.41E-04
Benzo[a]pyrene 6.50E-10 8.55E-10 2.20E-04
Benzene 1.18E-06 1.56E-06 4.01E-01
Brome 7.81E-08 1.03E-07 2.65E-02
Calcium 7.61E-06 1.00E-05 2.58E+00
Cadmium 9.11E-10 1.20E-09 3.09E-04
Chlorine 2.34E-07 3.08E-07 7.94E-02
Chromium 5.15E-09 6.77E-09 1.75E-03
Chromium VI 5.20E-11 6.84E-11 1.76E-05
Copper 2.86E-08 3.76E-08 9.70E-03
(Dioxins) 2,3,7,8-Tetrachlorodibenzodioxin 4.03E-14 5.30E-14 1.37E-08
Ethyl benzene 3.90E-08 5.13E-08 1.32E-02
Fluorine 6.50E-08 8.55E-08 2.20E-02
Formaldehyde 1.69E-07 2.22E-07 5.73E-02
Hexachlorobenzene 9.37E-15 1.23E-14 3.17E-09
Mercury 3.90E-10 5.13E-10 1.32E-04
Potassium 3.04E-05 4.00E-05 1.03E+01
Magnesium 4.70E-07 6.17E-07 1.59E-01
Manganese 2.22E-07 2.92E-07 7.54E-02
Sodium 1.69E-06 2.22E-06 5.73E-01
Ammonia 2.26E-06 2.97E-06 7.67E-01
Nickel 7.81E-09 1.03E-08 2.65E-03
Phosphorous 3.90E-07 5.13E-07 1.32E-01
PAH, Polycyclic aromatic hydrocarbon 1.43E-08 1.88E-08 4.85E-03
Lead 3.24E-08 4.26E-08 1.10E-02
Pentachlorophenol 1.05E-11 1.38E-11 3.57E-06
Toluene 3.90E-07 5.13E-07 1.32E-01
m-xylene 1.56E-07 2.05E-07 5.29E-02
Zinc 3.90E-07 5.13E-07 1.32E-01
Appendix 15
Waste waters treatment
Most of the waste or residual waters are generated during the oil extraction process
in the extraction plant. Residual water has high levels of organic matter and it is treated
generally in open pools.
Chemical oxygen demand (COD) of residual waters can be substantially reduced, the
treatment system has a great setback due to the fact that it emits high methane
concentrations, which is, as it has been mentioned, a potent GHG; therefore federation
of palm oil cultivation presented a project design document (PDD) of the Clean
441
Development Mechanism (CDM) of the UNFCCC with the purpose of capturing to some
extent such methane and burn it through the use of an close anaerobic reactor
(Fedepalma, 2006a). In this study, the future methane capture is taken into account for
the “optimized scenario”.
In general sense, inventory for this part of the process was based on the process from
Ecoinvent called “Treatment, residual waters, from households, for residual water
treatment, class 2”, whereas the COD, the amount of residual waters and methane
emissions were modeled for the Colombian conditions. The functional unit is residual
water treated for processing of 100 tons of FFB’s.
Entry
The amount of residual waters and the content of COD of waste waters have been
taken from different processing plants of FFB’s and are condensed in. Main residual or
waste waters are created in the extraction process.
Total residual waters and COD content per 100

tons of treated FFB (tons)
Input Amount
Total residual waters 106.6
COD content 5.23
Extraction residual water 99.6
COD content 5.19
Refinery residual water 3.92
COD content 0.02
Transesterification residual water 3.08
COD content 0.02
Effluents and emissions
After the treatment of waste waters, the treated stream is led to surface waters
(mainly rivers). Content of COD is based on assessment, and emissions of methane were
calculated based on the elimination of COD (factor of 21%). For the optimized scenario,
where 85% of methane is captured and burned, the values registered in the PDD are
used.
Table 96 Quantity of treated water and methane emissions
Quantity of treated water and methane emissions per 100 tons of
FFB (ton)
Output Average Optimized
442
Total residual water 68.69 68.69
COD content 0.32 0.32
COD removal 4.91 4.91
Methane 1.03 0.05
Appendix 16
Source: www.renault.com
Appendix 17
Surface extension of the carbon zones (km2), types of land use by vegetation zones in
Colombia
Surface extension of the carbon zones (km2), types of land use by vegetation zones in Colombia
Tropical
Tropical Tropical Tropical
Cover sub- Tropical moist
Cover type Cover name Main use shrub dry mountain
type rainforest deciduous
land forest system
forest
Preservation areas,
National natural
parks, reservoirs and
Natural forest
territories for 426’889 - - 861 51’355
(Bn)
indigenous people
Natural and and black
semi-natural Forest communities
vegetation
Selective extraction
Fragmented of flora and fauna,
natural forest crops and pasture 72’140 - 8 5’731 19’661
(Bi) lands in forest areas
that are being
443
turned into grazing
land
Natural of products as
and/or firewood, fibers and
Bushes 2’491 1’174 - 3’511 5’527
induced fruits, silvopasture
bushes (Ma) uses and fallow
lands
Herbaceous Extensive and very
savannah extensive livestock 28’721 - - 27’298 50
vegetation (Sl) farming
Wooded
Extensive and very
savannah
extensive livestock 15’485 - - 32’392 12
vegetation
farming
(Sa)
Bushy Sporadic extraction
savannah of fauna and flora
18’667 - - - -
vegetation and very extensive
(Sb) livestock farming
Semi-nomad
Xerophytic livestock farming,
vegetation species extraction 265 6’650 158 2’775 391
Other type (Xe) for craft-making and
of eco-tourism
vegetation National natural
parks, protected
Moor
areas, grazing of
vegetation - - - - 13’016
bovine and ovine
(Vp)
land and potato
cultivation
Mangrove Selective use of
vegetation fauna and flora; 3’803 14 202 717 -
(Vm) protected areas
Very sparse
herbaceous Eco-tourism in areas
vegetation on of National natural 8’256 - - 1’400 -
rocky land parks
(Pe)
Natural
and/or Extensive livestock
35’781 13’884
naturalized farming
grass (Pn) - 34 29’359
Natural
and/or
Extensive and semi-
naturalized
intensive livestock 3’268 340 12’961 13’440
grass with
farming
trees and
Grasslands
bushes (Pa) -
Extensive and semi-
Induced
Cultural intensive livestock 18’612 405 24’222 1’112
grasses (Pm)
vegetation farming -
Grasses,
Extensive livestock
stubble,
farming; and wood,
scrubland and 63’603 5 299 38’944 316
fiber and fruit
marginal
collection
forest (Ap)
Intensive agriculture
with annual species
Transitory such like rice,
Crops 2’646 113 3’278 1’112
(Cu) cotton, sorghum,
maize, bean and
potatoes -
444
Semi- Agriculture practices
permanent for sugarcane and 136 2’263 316
(Cs-Cña) by-products - -
Semi- Agriculture practices
permanent for sugarcane for 3 342 649
(Cs-Cñ) "panela" purposes - -
Banana and plantain
Semi-
plantations for
permanent 452 195
exports purposes
(Cs-Ba)
mainly - - -
Permanent Agriculture practices
535 527 10’294
(Cp-Cf) for coffee - -
Permanent Agriculture practices
1’098 510
(Cp-Pa) for palm oil - - -
Agriculture practices
for fruit production
purposes (cocoa,
130
citrus, vineyard,
Permanent deciduous and
(Cp-Fr) others) - - - -
Traditional
agricultural practices
with species such
Crops with like bean, maize, 7’497 6’279
stubble, and cassava, and others,
marginal mixed up with some
Associated forest (Ac) other covers - 47 14’351
crops Traditional
agricultural coffee
practices associated
Crops with with plantain, 262 423 5’293
stubble, and sugarcane, fruit
marginal production and
forest (Af) marginal forest - -
Forest plantations
for timber
production, soil 27 188
Planted protection and
Forest forests (Bp) recovery - - 1’457
Swamps
Bodies of Swamps and Swamps and
and
water marshes (S2) marshes
marshes 5’218 - - 30 4
Energy generation,
small-scale and
Lakes, commercial-scale
Natural,
lagoons, fishing practices,
Artificial
dams, rivers household, 14’702 39
and
and creeks commerce and
Bodies of continental
(ARI) agricultural
water and consumption.
swamps Transportation - 2 10
zones
of fauna and flora;
Natural, Swamps and small-scale fishing,
4’435 5’173
continental marshes (Ag) extensive but
temporary livestock
farming, eco-tourism 31 66 43
Eroded soils,
rocky soils, Extraction of
Uncultivated Exposed
sandy covers material for crafts 67 825
land rocks
and degraded and construction
lands (Em) 1’759 109 1’466
National natural
parks, protected
Perennial snows (Np)
areas, eco-tourism
and research - - - - 333
Source: CUE
445
Appendix 18
Map of natural potential vegetation
Most uses of Colombian soil are, or can be, potentially turned into natural forest, where
biomass carbon would reflect conditions of vegetation zones.
AGB (tons RS- Total biomass

Vegetation zone
of dm/ha) R (tons of C/ha)
Tropical forest 300 0.37 193.2

Deciduous humid forest 220 0.24 128.2
Dry tropical forest 210 0.28 126.3
Tropical bush 80 0.4 52.6
Tropical mountain system 145 0.27 86.6
Some other uses of Colombian soil include anthropogenic restrictions to potential vegetation
in term of soil cover instead to evolve into natural forest. Spatial distribution of potential biomass
of the ecosystem is associated with vegetation zones and types of land use, therefore they can
1) potentially evolve in to natural forest or they are forest already; or
2) they can maintain current biomass conditions, due to environmental and human
limitations.
Total
AGB (tons biomass
Type of cover Vegetation zone RS-R
of dm/ha) (tons of
C/ha)
Xerophytic vegetation Tropical bush and dry forest 5 0.36 3.2
Xerophytic vegetation Caducious humid forest 8 0.36 5.1
Bush vegetation Tropical mountain system 8 1 7.5
Mangrove vegetation All 180 0.5 126.9
Waste land and sparse land Tropical and rainy forest 1 0.1 0.5
Colombian surface (1,114,000 km2) is broken down in several vegetation regions:

 42% is occupied with natural forest (480,000 km2),
 52% of its territory has the potential to turn into natural forest (590,000 km2)
 and remaining 6% are occupied by those land use types (bushes, mangroves, waste land,
rocky and sparse land) which incur in environmental limitations, keeping biomass levels in
their current levels.
446
Appendix 19
Prospects of biofuels production in Colombia beyond first generation biofuels.

In general sense, it can be said that biomass ethanol can be elaborated from sugars, starches
and lignocellulose materials. Colombia has exhibited a prominent behaviour regarding sugarcane
yield, according to FAO (108.4 Ton/ha average between 2008-2012) (FAOSTAT, 2014), and
therefore the core of this thesis has been biased to this feedstock. However, cassava-based
ethanol is also produced in minor proportion in Colombia55. Corn has not been considered to
produce ethanol in a commercial scale in Colombia due to its low yield (2.28 ton/ha compared to
10.07 ton/ha produced in US). On the other hand, lignocellulose ethanol has counted with some
initiatives that so far have been explored on paper, but which have not been deployed properly.
In fact most advances have been made focused on conditioning and pre-treatment processes of
lignocellulose material, to expose sucrose material with a minor energy consumption, less capital
investment and higher efficiency in the use of raw materials (Cardona Alzate, 2009).
During 2009, it was reported an initiative between 3 firms (Inar Ltda, Equitec S.A and G&B) to
design, built and manage a processing plant fed with sugarcane bagasse, in a region where
sugarcane for panela production is raised (Suarez river basin) (Forero, 2009). The cost of the
whole project escalated to 167 million dollars in 2010, and the feedstock was supposed to come
from 210 small panela production firms committed to provide approximately 1000 tons of
bagasse, which in turn can produce 90.000 l/d (Acuña, 2010). Unfortunately the project has not
reported any further results, neither in conventional press nor in academic publications.
Nowadays the panorama is quite blurred for these initiatives, in the Suarez river basin (Hoya
del río Suárez) after the bad experience suffered in the past: In 2008 was inaugurated a pilot plant
that was built to process nearly 60.000 ha of sugarcane, but after a couple of months later and
some tests it was noticed that such infrastructure (with several some disasters in the deployment)
was able to process only half ha. Finally the project, with an investment of nearly 3US million, was
basically abandoned by the government and left to Universidad Industrial de Santander for
academic purposes (Publicaciones Semana, 2010).
55
Cantaclaro is a processing plant located in Puerto López and it counts with an installed production capacity of 25000
l/d (reported in 2011). See http://www.fedebiocombustibles.com/v3/nota-web-id-270.htm
447
Likewise research efforts have been conducted in the development of other feedstock
alternatives. For instance, in 2009, it was presented in Mexico the result of an experiment
conducted on residues from the palm oil production in order to produce ethanol. The idea consists
applying chemical delignification (by using Sodium Hypochlorite in the emptied shells of the palm
seeds) to pre-treat the material and reach embedded cellulose. Results support technical
feasibility of such treatment, but they do not indicate neither costs nor prospects of implement
this technology by the building of a plant (not even in pilot stage) (Piñeros, Rincón, Bourdon, &
Velásquez, 2009). Similar work, on the same feedstock, has been documented by researchers of
the Univeridad de los Andes, whose experiments are focused on trying with different enzymes (A.
F. González, Jiménez, Susa, Restrepo, & Gómez, 2008).
Something similar has happened with the use of timber and wood, in general, as source of
lignocellulose for ethanol production in Colombia. Some scholars of the Universidad de Antioquia
have conducted some work in order to identify those timber-yielding species that have been used
for reforestation and commercial purposes. At first sight it was identified a set of species56 within
Colombia territory that count on high volumetric yield of biomass and short harvesting periods
(Gómez, Ríos, & Peña, 2012) which guarantee a continuous and abundant supply of lignocellulose
feedstock. It was also found that the species pinus patula is probably the most plentiful within the
timber Colombian industry, and it counts with the highest contents of cellulose and hemicellulose
and low content of lignin. Nonetheless; there is a technical hindrance given that releasing those
sugars is a complex procedure, not only for this species but also to all the broad group of soft
woods. However, given its abundance and wide use it has been foreseen that the amount of
material can offset the difficulty to process it, providing good chances to use such option for
ethanol production.
There is an alternative that has been explored in Medellin in the National University, where
banana shell and cassava starch (separately) were used as feedstock to feed a fermentation
process for further ethanol production. The result that is particularly interesting here is the one
obtained in the experiment on banana shell, given that does not rival directly with the product as
food, but it is a by-product that is usually thrown away or used for compost elaboration (Monsalve
Gil, Medina de Pérez, & Ruiz Colorado, 2006).
Finally, another option for ethanol production is the use of household solid wastes, with pre-
treatment via enzymatic reaction and microwave applications. Results indicated, that despite of
interesting yields in technical terms, it has had not reached enough competitiveness in the
economic aspect to think in funding such alternative (A. F. González et al., 2008).
Regarding biodiesel production, within first generation biofuels feedstock can be found
vegetable oils and animal fat. An alternative can be residual oils that have been used in the food
industry. Palm oil has been the chosen feedstock for biodiesel production in the case of Colombia.
Despite its prominent production (in 2012 was the fourth world producer, with close to 1 million
MT, FAOSTAT 2014), it remains far from the global leadership in palm oil production 57 .
Nevertheless, the Colombian incursion as biodiesel producer is noteworthy and so far fulfil the
needs of diesel blends, dictated by the national government58.
Regarding alternatives to first generation biodiesel (i.e. 2nd and 3rd Generation), in Colombia
have been studied the possibilities of producing it from castor oil seeds and microalgae. An
isolated experiment on household solid wastes has been notified as well.
Castor oil biodiesel has been studied in Colombian, since 2004, as an alternative to palm oil
biodiesel. All the tests have been conducted at laboratory level (Cardona, C.E., Sanchez, & Rincón,
56 Within this set are Eucalyptus camaldulensis, pine trees Caribaea, Oocarpa y Tecunumanii and
eucaliptos Grandis, Camaldulensis and Tereticornis
57
In 2012 Indonesia and Malaysia produced 23.6 and 18.7 million MT of palm oil (FAOSTAT, 2014). In addition,
thanks to a broad experience these two countries are in the forefront of productivity with average production rates of 6000
l/ha, whereas in Colombia this rate reaches 4.400 l/ha (Cardona Alzate, 2009)
58
A blending level of 15% biodiesel would require nearly 425 thousand ha by the year 2020, according to Cardona’s
calculations (Cardona Alzate, 2009).
448
2007). Within the program of Industrial Chemistry of the Universidad Tecnológica de Pereira, in
2012, was presented a thesis that covers most of the research undertaken regarding a potential
castor oil biodiesel production. Basically this document presented a set of tests applied to castor
oil seed genetically modified and it was verified that most of technical parameter of regular
biodiesel are fulfilled by this option. The genetic modification brings along some advantages like
low content of free-fatty acids, therefore it is easier trans-esterification process; low iodine
content which guarantees a better oxidative stability and enhancement of engine lubricity.
However some nuisances are exhibited as well, like a major ability of corrode the system in
comparison to regular biodiesel (Huertas Greco & Sánchez Medina, 2012).
Since 2009, it can be found within the Colombian academic literature some reports and papers
on research which presents a different approach to third generation biofuels is the elaboration of
biodiesel based on algae use. In particular in the Universidad Industrial de Santander has been
conducted some experiments, at laboratory level, on Chlorella vulgaris, Chlorella protothecoides,
Nannochloropsis oculata, which are a kind of algae with high oil content. The advantages of these
species over traditional terrestrial oily seeds are high growth rates (which doubles size in about
24 hours), high yields (which can be 300 times the yield of terrestrial seeds) and adaptability (given
that they can be produced in salt water, residual water and degraded lands not suitable for food
production). Despite the appeal of such option it seems that the combination of an absent supply
of microalgae in combination with a reduced number of publications regarding transesterification
of these species have leaded to a poor support in this front.
Pyrolysis has been applied to household solid wastes, in a temperature range between 450
and 700°C, reaching a liquid product with similar characteristics to commercial diesel 8500cal/g
vs 9900 cal/g, and a solid product superior in calorific content, if it compared to regular coal.
However, high content of sulphur discourages the use of such products for their environmental
performance (A. F. González et al., 2008).
Despite biogas is not direct application of transportation alternative of biofuels, it can be
mentioned that hydrogen production from porcine farming wastes has been run on experiments
via anaerobic digestion.
It is important to be aware that palm oil and sugarcane processing industries can exert some
pressure on the Colombian government given the employment that they both represent and the
income reported to the nation’s wealth. Additionally there is no evidence that, in Colombia,
diversion of feedstocks (sugar and palm oil) threatens food security. Therefore, such fact,
combined with isolated efforts on research provide a bleak landscape for second generation
biofuels technologies (and beyond) in the near future, but the possibility of using by-product of
such industries such as . Colombia remains updated in terms of the technologies that have been
studied in the forefront in the field of biofuels, however further investment and infrastructure
acquisition is required to develop a mature supply of advanced biofuels.
449

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Production of Biofuels for transport in Colombia:

An assessment through sustainability tools

Carlos Ariel Ramírez Triana

Supervisor: Professor John Mathews

Note: These sections will be developed in detail in further chapters.

1.1 Bioenergy and sustainability: general overview

1.1.1 Bioenergy situation in the global energy scenario

World Total Renewable Energy

Nevertheless, this evolution can be separated by source, as is shown in Figure 2. Here, it is

World Renewable Energy

World Biomass energy

Source: (EIA, 2012)

1.1.2 Bioenergy/biofuels production

wastes, municipal wastes, and other waste materials. See http://www.energy.gov/energysources/bioenergy.htm

1.1.2.1 Types of biofuels (by natural physical state)

1.2 Sustainable Development and energy

1.2.2 Biomass production and sustainability

1.3 Life Cycle assessment (LCA) importance

Measuring and monitoring sustainability is a key factor if new alternatives are to be

some authors (Kline, K, et al, 2009)

1.4 Colombia: country, energy needs, and bioenergy industry

1.4.1 General Information

12 Ergoculture concept (land to cultivate energy) developed by Mathews (2007)

13 Data from IDB (Inter-American Development Bank) databases:

1.4.2 Energy Information

Figure 5 Colombia’s Oil production and consumption

1.4.3 Biofuels in Colombia

1.4.3.1 Research and Development (R&D)

18 Centro colombiano de investigación de la caña de azúcar: www.cenicana.org

Website in Spanish: http://www.fedepalma.org/

1.4.3.2 Legal Framework

24 Colombian Institute for Science and Technology Development

framework for Regular Oxygenated Gasoline.

1.4.3.4 Regarding biofuels: what is produced in Colombia and how?

Harvested Area of selected Comodities,

Production of selected Commodities

Note: Sugarcane is measured in the secondary axis.

FAOSTAT | © FAO Statistics Division 2013 | 11 December 2013

28 Colombia is placed in world top 10 sugarcane producers

Yield of selected commodities in

Note: Sugarcane is measured in the secondary axis.

FAOSTAT | © FAO Statistics Division 2013 | 11 December 2013

Most of sugarcane production in Colombia is concentrated in the Cauca Valley (Southwest).

item Brazil Colombia

1.5 Conclusions and general comments

2.4 Policies and regulation for biofuels implementation at a global level

2.4.1 Main regulations

2.4.1.1 United States of America

2.4.1.2 European Union

2.4.2.5 Costa Rica

2.4.2.15 Dominican Republic

2.4.3 International trade protocols

The main strength of UNCTAD as regulatory organism, in comparison to other institutions, is

Figure 10 Evolution of land use in Colombia

50000 Permanent crops

40000 Permanent meadows

3.1.3 Diversity of species and their problems

3.2 Land: degradation, pollution and inappropriate use

Figure 11 Land use in Colombia 2002