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Lux: California’s Low Carbon Fuel Standard will become a global phenomenon; carbon intensity, not volume

California’s approach to transportation fuel policy—its Low Carbon Fuel Standard (LCFS)—will become a global phenomenon, suggests Lux Research. The LCFS eliminates volume targets and focuses strictly on a fuel’s carbon intensity (CI) measured in gCO2/MJ on a well-to-wheel (WTW) basis—from extraction, conversion, transport, and combustion of the fuel. Lux’s observation comes shortly after the Government of Canada announced it will develop a similar low-carbon clean fuel standard requiring reductions in the carbon footprint of the fuels supplied in Canada, based on lifecycle analysis. (Earlier post.)

Lux sees this approach as a winning one for several reasons:

  • The feedstock-, technology-, and fuel-agnostic approach opens up opportunities along the entire value chain. Many current policies driving biofuels focuses on what the fuel is made of and what the final product is. This orientation has incentivized specific technologies instead of the best solution.

    A full agnostic approach brings to light opportunities along the entire value chain, such as the choice of power, supplemental chemicals, and even forms of transporting the fuel to its final destination, creating opportunities for other types of businesses in a space that has been predominantly geared towards dedicated fuel producers.

  • Not all countries are positioned to support a biofuels industry as it is designed today. Currently the biofuels industry is driven primarily by the abundant availability of bio-based resources enabling the production of ethanol and biodiesel. For example, the US and Brazil are major corn and sugarcane ethanol producers, respectively, and Malaysia and Indonesia are major palm oil biodiesel producers.

    This model does not offer a ubiquitous solution. Instead, with carbon intensity as the lone factor, countries can tap into its domestic resources and expertise to drive low-carbon fuels without the limitations of a biofuels-centric regulatory model. This shift opens the opportunities for further adoption of natural gas vehicles (NGV) and electric vehicles (EV). It will also stimulate conventional fossil fuel innovation as increased efficiencies will also lower a fuel’s CI.

  • This model will be a bridge to move future regulations and policies past the concept of fuel–based vehicles. Policies today that still focus on volumes will quickly become archaic in an electrified transportation future. With certain cities, such as Paris and London, considering banning the internal combustion engine (ICE), CI-based policies will be the first phase of a paradigm shift that will transition the soon-to-be obsolete biofuels policies of today into a new era of low-carbon transportation policies, Lux says.

Comments

dursun

LOL, still going to Hell, but can we can feel better about it.

Arnold

Lipstick on a pig?

I couldn't think of a worse example than the the author's M's & I's palm oil suggestion.

So maybe LUX are just a bunch of FW't's?

We just have to live with that for a while.

There are other benefits from bio fuels that suggest carbon intensity carbon intensity (CI) measured in gCO2/MJ on a well-to-wheel (not to question it's import) is not the only measure.

There has been toing and froing for decades as to the merit of biofuels - esp benefits from reducing particulate and other emissions (the usual suspects) from the optimal percentage addition to ordinary H.C. fuels esp from the bio's Oxygen component.

Surely every bit helps (some bio's have a % better outcome)



SJC

Every bit DOES help, saying it does not do everything NOW so forget it all is foolish. We all know people like that, they are harming NOT helping find solutions. It is easy to criticize but more difficult to be constructive and find solutions.

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