An agro-industrial model for the optimization of biodiesel production in Spain to meet the European GHG reduction targets

Abstract

Right after the enforcement of the Directive (EU) 2015/1513, amending the Renewable Energy Directive of the European Union, the situation of the biodiesel sector in Spain is particularly uncertain. Although domestic biodiesel production has significantly increased since 2013, many plants are still idle, leading to an excess of capacity. This paper aims to provide an operational framework that combines Life Cycle Assessment (LCA) with economic optimization to determine the feedstock combination for domestic biodiesel production in Spain in compliance with this Directive, and quantify the associated impacts. A multi-sector, mathematical programming model is proposed in a Partial Equilibrium setting, implementing an LCA module. The optimal oil mix for the sector is highly dependent on assumptions regarding land use change in crude vegetable oil exporting countries. Increasing greenhouse gas savings thresholds enhance the use of waste oils and domestic oilseeds, while preventing deforestation of carbon-rich ecosystems; the only exception is the Brazilian Cerrado savanna. A double-counting scheme for waste oil biodiesel is necessary to make plants with second-generation technology work at full capacity, delivering further environmental benefits. Although there is room for further improvement, the model can provide very good insights for biodiesel policy analysis in the context of Spain.