On January 24th Accenture organized the first Biofuel Round Table  titled “From Harbor to Hub: Port integration in the Biofuel Supply Chain” in order to discuss and gain more insight into the ideas, challenges and possibilities to integrate the Port of Rotterdam (and harbors in general) into the Biofuel Supply Chain. With 27 attendees representing 20 organizations including Vopak, Shell and Argos the Round Table started with a welcoming note and introduction by ‘trendwatcher’ –and moderator of the evening– Richard Lamb in the Sky Room of the SS Rotterdam.

The Round Table was organized to provide a comprehensive overview of the Biofuel supply chain, determine how this chain develops based on influences of macro-economic environment and analysed the role of ports in this chain. To fuel the discussion among the audience there was room for discussion with individual statements for each theme after the sessions.

Richard Lamb invited Accenture Biofuel lead EMEA Ian O’Gara to discuss the current state of the Global Biofuel Industry. After discussing the global Biofuels investments and the complexity of the Biofuels policy landscape, O’Gara emphasized the dramatically increasing global need for energy. With the global population expected to reach 8.5bn by 2035 and 1bn people currently use 80% of global energy (while 1.6bn people are still without electricity); population growth and economic convergence will together drive a significant increase in consumption, especially from developing economies. There will be trade between consuming countries and countries that are able to produce with an economic advantage. Market by market we will see different levels of supply, consumption, and government support with the EU as one of the key Biofuel markets.

After 45 minutes Leonie Stevens, researcher at Accenture had the opportunity to present and discuss the key findings of her research which among others elaborated the expected changes in the biofuel supply chain by 2020. Due to the continues global imbalance in biofuel (feedstock) supply and demand, international shipping is expected to grow and ports are playing a more essential role in the Biofuel supply chain. Therefore Leonie stated that ports should increase their involvement in the Biofuel chain and evolve from transshipment points to a logistical Hub for Biofuels flows and biobased Industrial Cluster. Ports can realize this by incorporating clear strategies and visions regarding Biofuels. By extending their role from facilitating, to more initiating, coordinating and orchestrating activities; ports can not only facilitate flows, but also create new flows, adding steps of value in the supply chain in the port area; develop a bio-industry cluster and act as a knowledge center.

One of the main conclusions of the evening which all participants agreed on is that Biofuel is not a perfect solution, but at the moment are a midterm alternative for fossil fuels. As the need for energy in general is increasing rapidly, Biofuel has to be blend with for example gasoline or ethanol. Biofuels are a small but growing part of the European energy mix, but there is no silver bullet for replacing fossil fuels yet.

In the following discussion, the participants shared their view on the research findings and discussed the growth path of ports in becoming a hub and industrial cluster. During the debate, participants revealed themselves as true biofuel believers and together concluded that the next decade will show which parts of the supply chain will be executed in which part of the world. Maturing of the industry, larger volumes and stable government policies are needed for biofuels to become competitive counterparts for fossil fuels. Rotterdam has great opportunities to become a major bio hub and industrial cluster but that major steps have to be taken to promote biofuels, connect businesses to create the level playing field for the industry.

Lastly I would like to share several interesting quotes made during the event and discussions: “In the success of Biofuels a major role is accounted for the price”, “The EU will be one of the key biofuel markets where the Netherlands will play a frontline role in Biofuels” and “Biomass has the opportunity to become a new industrial pillar in the Rotterdam industrial cluster”. “The Port of Rotterdam should much more use its muscles and strongly promote and lobby for biofuels 1) in the port area 2) at the Dutch government 3) at the European Union”. “Without Removal of EU import tariffs a BioBased Economy will never become reality”. “If the RED (Renewable Energy Directive) is not extended for another decade, the European biofuel industry will collapse”.”Conventional biofuels can fill the gap but should not, advanced biofuels should fill the gap but cannot. Advanced biofuels are 10 years away and will potentially become the new ‘hydrogen’”.

For further information, please comment on this post below or contact:

Edwin Knoop
Partner
Energy Downstream Benelux
edwin.knoop@accenture.com

Leonie Stevens
Researcher
Technology Management
leonie.stevens@accenture.com

Click on below images for an impression of the Round Table