13 October 2010

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NTA 8080/ 8081

A case study in Vietnam

International congress biomass & the role of standards

Suzanne Kagchelland
Sustainability Officer Eneco
www.eneco.nl

Presentation outline
Topics
......................................................................................................
1. Company profile
2. Importance of certification systems
3. Sustainability framework Eneco
4. Vietnam pelletizer project
5. Sustainability aspects pelletizer project

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Eneco profile
Reliable, enterprising, professional
......................................................................................................
Large energy companies in The Netherlands
~2 million customers
Integrated distribution strategy: production, transmission,
supply, metering and invoicing of gas, electricity and heat
Continuity of energy through sustainability
~5,000 employees
Owned by 61 Dutch municipalities
Headquarters in Rotterdam - main energy port of Europe

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Who am I?

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Suzanne Kagchelland
MSc Technology & Innovation
Eneco Renewable Energy Development
Sustainability Officer
s.kagchelland@eneco.nl

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Certification systems
Importance for Eneco
......................................................................................................
Biomass business is international and complex
Independent verification
Risk mitigation
Transparency

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Certification systems
Mitigate sustainability risks
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Bron: Telapak - Borderlines

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Sustainability framework
Eneco
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Futureproof
No regret

Sustainability
level

NGO
Eneco policy
Dutch NTA standard
International standards
Renewable energy directive Europe
Law (import, environment, etc.)

Opportunities

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Eneco Sustainability Policy

Biomass topics
......................................................................................................
NTA/ Market

Eneco plus compared to market

Green house gas balance minimally 70%

Local competition

Cascade principle

Biodiversity

Indirect effects

Environment

Partner integrity

Prosperity and wellbeing

No palm oil with a few exceptions

Integrity

Use of heat
Also for residues

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Certification systems
Enlarge business opportunities
......................................................................................................
Trade portfolio without
sustainability conditions
Future sustainable
portfolio

Current
sustainable
portfolio

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Vietnam pelletizer project

Overview
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Existing chain, NTA 8080 certification
performed as a pilot to validate certification
scheme

Woodwaste

Woodprocessing

Endconsumer

Woodwaste

Focus project

Pellet
plant

New chain, NTA 8080 certification required

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Vietnam pelletizer project

Cooperation NEN - Eneco
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Project development, sustainability research and pilot NTA 8080/8081

Projectpartners:

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Vietnam pelletizer project

Cooperation NEN - Eneco
......................................................................................................
Processing and
certification of
woodwaste in Vietnam
Granted by Fund
Sustainable Biomass
Import

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Vietnam pelletizer project

WHAT?
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Area: 330,000 m2 (9x The Netherlands)
North-south: 1650 km
Population: 86 million
Growth per annum: 1%
Life expectancy: 71 year
GDP: USD 70 billion
GDP growth: 8.5%
GDP per capita: USD 2,600

Source: WTO, 2008

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Vietnam pelletizer project

Wood processing industry
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Example of a medium scale company:

6,000 employees
Export turnover USD 60 million
5.000 30.000 ton/yr woodwaste*

* Target Eneco is 150,000 ton/year

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Vietnam pelletizer project

Wood processing industry
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Woodwaste exists mainly of dry sawdust, shavings and offcuts from furniture manufacturing
process, hence savings on drying process (investment and operating cost).
Current main use of woodwaste:
drying wood in own furniture manufacturing process
brickmaking industry (already shifting towards gas as fuel instead of burning wood)
MDF/ plywood
Woodwaste is considered a problem: no stable offtake due to seasonality brickmaking industry.

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Pellet plant
Operational Q3 2011
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supplier
truck
pellet plant
barge
sea vessel

Pellet mill

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Control room for pelletizing process

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Pilot NTA 8080/8081

Activities
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1. Pre-audit sustainability elements of total biomass chain
2. Benchmark existing systems against NTA 8080 (ISO, OHSAS 18001,
BSCI/ SA 8000, FSC, PEFC, etc.)
3. Audit total biomass chain against NTA 8080
4. Validation of certification scheme NTA 8081
5. Build administration system for tracability purposes

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Pilot NTA 8080/8081

Chain of custody
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Sustainability
Indirect effects
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Sustainability
Sourcing of wood
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versus

Round wood without

chain of custody

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Sawn timber with FSC

certified chain of
custody

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Sustainability
Working conditions
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versus

Local standards
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International standards

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Sustainability
Findings
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CO2 balance
According to NTA CO2 emission is calculated from location where woodwaste is
created. Displacement effect (if any) will also be part of the CO2 emission
calculation. Minimally 70%.
Displacement
No displacement effect is expected due to oversupply of
woodwaste.
Chain of custody
Chain of custody and sustainability level in wood processing
industry is defined by market focus. European/ US market
require proof of legality. FLEGT/ Lacey Act.
Labor conditions
Selected suppliers of woodwaste have working conditions
imposed by western customers (eg. Wallmart, IKEA,
Carrefour).

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Furniture industry
Findings
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Facing increasing legality, COC and sustainability demands from export markets
Players with high priority on sustainability have dedicated departments with
own mandates
Large players provide easier access to chain information than small ones
Key difference between COC certification and material certification
Stepwise approach, self reporting and sample audits common in furniture
industry
Obtain information easy face-to-face, challenge on-distance

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Sustainability
Next steps
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Supplier selection based on market focus and sustainability awareness (Europe,

United States)

Risk analysis/ audit full supply chain against NTA 8081

Analyse info derived from NTA pilot to improve certification scheme

Implement stepwise approach (e.g. GFTN programme, TFT)

Legal Sustainable (FLEGT, Lacey Act)

Independent quality officer

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+316 15 95 89 81
s.kagchelland@eneco.nl
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