Biofuel and Biodiversity

Governments are increasingly turning to fuels from plants and organic waste (biofuel) to help with energy security and climate change. For example, the 2005 USA Energy Bill set aggressive new goals for biofuels. The EU aims to have 5.75% of transport coming from biofuels by 2010.

There are risks however. Making fuel from crops will increasingly compete with food production for water and scarce land. That could lead to rainforests being cut down and fragile wildlife habitats being threatened. The USA goal will likely be met mostly with ethanol from corn that otherwise would have fed cattle. It is estimated that an extra 1.6 million hectares of cropland will need to be found, somewhere, to replace that corn. To meet the EU target, between 10 and 30% of the region’s agricultural land could be needed to grow energy crops.

We are working with NGOs, governments, suppliers and industrial consumers on standards for producing energy crops sustainably, for example through the Roundtable on Sustainable Palm Oil. In the meantime, we are monitoring our biofuel suppliers against our biodiversity standard and Shell General Business Principles. We are also investing in advanced second-generation biofuels from wood waste and straw that do not compete with food production, and could help reduce demand for corn and palm oil.

Exploring off Alaska's nothern coast

We are exploring for oil and natural gas in the Beaufort and Chukchi Seas off Alaska’s northern coast. These are not national or IUCN protected areas. There has been oil and gas activity here for many years. They are remote, however, with a harsh and rapidly changing climate, large populations of whales, walrus and seals, and local communities who rely on subsistence hunting. We are committed to moving with great care, following our biodiversity and Health, Safety and Environment (HSE) standards and learning from other Shell projects with experience operating in arctic conditions. We continue to mitigate and monitor the impact of our activities and consult and work with local communities. In 2005, we completed an impact assessment in preparation for seismic exploration. This study highlighted the need to minimise disturbance to the bowhead whales that spend the summer months in this region. In response, we implemented a marine mammal monitoring and impact mitigation programme that employs experienced local people as observers. We completed some seismic exploration in the Chukchi Sea in 2006, but in the Beaufort Sea, no work was done because of heavy sea ice. In 2007, we plan to conduct more seismic tests in the Chukchi and, if conditions allow, in the Beaufort as well. We also plan to start exploratory drilling in the Beaufort Sea in 2007, once we have complied with government requirements and also completed an impact assessment in line with Shell internal requirements for this work.

Biodiversity action plan: Nigerian indigenous forests In the Niger Delta, we have concessions to extract oil and gas in two indigenous forest reserves that are IUCN protected areas. We have not produced in these areas for many years, but have dormant oil wells in one and active pipelines across the other. The paths we built when we were producing here may have also provided access to these areas for others and made illegal logging and hunting possible. In 2005, the SPDC joint venture launched two biodiversity action plans to preserve the forest and develop alternative sources of income for the local community. The plan was drawn up with farmers, local groups and the [Editor: state] government. Actions include programmes to raise awareness of biodiversity in the local community, and projects to develop alternative sources of revenue from the forests. Under the plan, control over logging has been moved from the government to a community forest management committee. We will fund their delivery. The forest-based communities own the plans and are responsible for implementing them. Jonathan Amakiri Principal enviromental advisor, Shell Nigeria