The aviation industry accounts for more than 2% of global CO ₂ emissions. Biojet fuel is expected to make an essential contribution to the decarbonization of the aviation sector. Brazil is seen as a key player in developing sustainable aviation biofuels owing to its long-standing experience with biofuels. Nevertheless, a clear understanding of what policies may be conducive to the emergence of a biojet fuel supply chain is lacking. We extended a spatially explicit agent-based model to explore the emergence of a biojet fuel supply chain from the existing sugarcane–ethanol supply chain. The model accounts for new policies (feed-in tariff and capital investment subsidy) and new considerations into the decision making about production and investment in processing capacity. We found that in a tax-free gasoline regime, a feed-in tariff above 3 R$/L stimulates the production of biojet fuel. At higher levels of gasoline taxation (i.e., 2.46 R$/L), however, any feed-in tariff is insufficient to ensure the production of biojet fuel. Thus, at these levels of gasoline taxation, it is needed to introduce regulations on the production of biojet fuel to ensure its production. Given the current debate about the future direction of the biofuel policy in Brazil, we recommend further research into the effect of market mechanisms based on greenhouse gas emissions on the emergence of a Brazilian biojet fuel supply chain.

@en

The Brazilian government aims to increase the share of biofuels in the energy mix to around 18% by 2030, which implies an increase of ethanol production from currently 27 bln liters to over 50 bln liters per year. Biofuel policies play an important role in ethanol production, consumption, and investment in processing capacity. Nevertheless, a clear understanding of how current policies affect the evolution of the market is lacking. We developed a spatially-explicit agent-based model to analyze the impact of different blend mandates and taxes levied on gasoline, hydrous, and anhydrous ethanol on investment in processing capacity and on production and consumption of ethanol. The model uses land use projections by the PCRaster Land Use Change model and incorporates the institutions governing the actors’ strategic decision making with regard to production and consumption of ethanol, and the institutions governing the interaction among actors. From the investigated mix of policy measures, we find that an increase of the gasoline tax leads to the highest increased investments in sugarcane processing capacity. We also find that a gasoline tax above 1.23 R$/l and a tax exemption for hydrous ethanol may lead to doubling the production of ethanol by 2030 (relative to 2016).

@en

One of the challenges of the twenty-first century is the transition to a sustainable energy system. Road transport biofuels can play an important role in this energy transition. Indeed, biofuels have the largest global share as a mitigation measure in the road transport sector. In 2012, biofuels accounted for 3.4% of global road transport fuel demand (2.3%of total transport fuels). Biofuels are also considered as a promising strategy to decarbonize other transport sectors such as marine and aviation in the short-medium term. Nevertheless, biofuels are not cost competitive compared to fossil fuels and thus require government intervention to stimulate their production and consumption...@en

The economic performance of biofuels supply chains depends on the interaction of technical characteristics as technological pathways and logistics, and social structures as actor behavior, their interactions and institutions. Traditional approaches focus on the technical problems only. Little attention has been paid to the institutional analysis of biofuel supply chains. This paper aims to extend the analysis of the effect of institutions on the emergence of biofuel supply chains by developing a conceptual framework that combines elements of complex adaptive systems, (neo) institutional economics and socio-technical systems theory. These elements were formalized into an agent-based model. The proposed method is illustrated by a case study on a biodiesel supply chain in Germany. It was found that the patterns in production capacity result from investors basing their decisions on optimistic perceptions of the market development that increase with a favorable institutional framework. Conversely, patterns in biodiesel production cannot be completely explained by this mechanism. The proposed framework assisted the model conceptualization phase and allowed the incorporation of social structures into the agent-based model. This approach could be developed further to provide insights on the effect of different future deployment strategies on bioenergy systems emergence and development.

@en

The EU has set ambitious targets for an energy transition. While research often focuses on technology, institutions or actors, a transition requires complex coordination and comprehensive analysis and design. We propose a framework accounting for technology, institutions and actors' perspective to design in socio-technical systems. We present its application, firstly, to biodiesel production in Germany; secondly, to vehicle-to-grid contracts in a Car as a Power Plant microgrid. We show how using the framework as the core in modelling can contribute to the performance improvement of these systems. Future work will elaborate on the next generation of thermal energy systems, coordination control of microgrids and implementing flexibility through demand response aggregation. Overall, designing solutions to the problems described calls for comprehensive engineers who look beyond the technical design and deal with multi actor socio-political processes including institutional consideration.@en