OVERVIEW OF POLICY OBJECTIVES

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ALTERNATIVE FUELS
Vol. 1
Teaching Learning Materials Update 2007
funded within the 6th Framework Programme of the
EU as Specific Support Action
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Definition
Alternative fuels are defined as all fuels, with
the exception of the mineral oil products petrol
and diesel, that may contribute towards reducing
emissions of air pollutants, greenhouse gases or
the consumption of finite resources.
The following applies as a general principle
There is neither one single biofuel nor one
alternative fuel, but rather a multitude of
liquid, gaseous and electrical sources of
energy. BMU_2006
For each of these fuels there are different
manufacturing processes (fuel pathways)
available. As a general rule, these fuels can
either be used in their pure forms or blended
with other fuels.
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Definition
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Production process for biogenic fuels
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Goals for the use of alternative fuels

• Reducing the discharge of gases with global
  warming potential
• Reducing emissions that are harmful to the
  environment and to peoples health
• Decreasing the dependency on mineral oil
• Improving the security of supply
• Safeguarding the supply of affordable fuels
• Opening up additional potentials for innovation
  and employment

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Required reduction of pollutants in the transport
sector
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Assessment of selected fuels
SourceKolkeR_2004, EichmannV_2006
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Current status and developments

• Continuing standardisation of fuel quality and
  corresponding monitoring systems
• An increase in the EU-wide blend ratio stipulated
  for biofuels in petrol/diesel EC_845/2006 from
  the current 5.75 to 10 by 2020
• Discussion of the origin of biomass, of the
  limits on capacity and of the criteria for trade
  in biomass and biofuels from the perspectives of
  social and ecological impacts, as well as of the
  existing situation with regard to competition for
  resources
• Changeover to the use of second-generation
  biogenic fuels and to a broader range of raw
  materials
• Conversion of production plants for alternative
  fuels, e.g. FT fuels, on a large scale

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Economic challenges

• Ensuring planning security for investors,
  farmers, producers, filling station owners, fleet
  operators and private users of alternative fuels
• Reducing of inefficiencies caused by an overly
  strong segmentation of the fuel and vehicle
  markets
• Focusing more strongly on production and use of
  second-generation fuels
• Achieving the transition to stand-alone
  profitability for the alternative fuels used

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Technical challenges

• Technological and cost-related optimisation of
  production processes, in particular for
  second-generation fuels, as well as their
  transition into large-scale industrial use
• Utilisation of existing technical reduction
  potential in conventional vehicles and engines
• Further development of long-term options for the
  use of alternative fuels
• Safeguarding of reliable fuel quality with the
  focus on verifiable standards

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Ecological and social challenges

• Development of suitable criteria and rules for
  the evaluation and trade of biogenic sources of
  energy on international (and domestic) markets
• Establishment of sustainable limits for the use
  of biogenic resources
• More careful consideration of potential
  competition between the alternative uses for land
  areas, raw materials, foodstuffs, etc.

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Political challenges

• Better integration of fuel strategies within a
  superordinate energy policy
• Implementation of trans-sectoral mechanisms to
  promote efficient use of scarce resources
• Utilisation of existing efficiencies in transport
  and infrastructure planning with the aim of
  improving or maintaining a sufficiently high and
  consistent level of mobility with a lower volume
  of traffic
• Harmonisation of the framework for the use of
  alternative fuels and propulsion systems
• Increased transfer of the results derived from
  research efforts and practical application to
  education, policy makers and potential users
• Establishment of medium- and long-term
  sustainable financing mechanisms
• Introduction of mechanisms that ensure that
  government support for biogenic sources of energy
  also leads to the desired employment effects at a
  national level

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Promotion of biofuels in the EU-25
Source Thrän et al._11/2005
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Biofuel shares introduced in the EU-25
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Dissemination of alternative fuels in the EU-25
in 2005
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National targets for the use of alternative fuels
in the EU-25
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Evaluation and comparison

• The vehicles, the associated fuels and the
  necessary infrastructure, including the processes
  required, are to be considered as one entity and
  are to be assessed over comparable periods of
  time.
• Realistic development potentials should be given
  appropriate consideration.
• Comparisons should be based on specific fuel
  pathways and specific operating conditions.
• Reallocations of costs, emissions, effects or
  impacts to other areas, materials, locations,
  times or persons should be given particular
  attention.
• The transfer of results to other contexts must be
  scrutinised critically and is often impossible

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Impact analysis of alternative fuels

• The environmental impact of fuels (particularly
  of biofuels) must be assessed by taking the
  entire life cycle into consideration.
• In addition to CO2, the climate impact analysis
  must also include other relevant emissions, such
  as N2O and CH4.
• The vehicles, the associated fuels, the fuel
  supply and the necessary infrastructure,
  including the processes required, are to be
  considered as one entity and must be assessed
  over comparable periods of time.
• The assumed framework conditions, the envelope
  boundaries and the underlying aim of the analysis
  are decisive for the results of the assessment.
• The efficiency of using alternative fuels should
  be assessed on a trans-sectoral basis .
• The results obtained are significantly influenced
  by the reference processes that have been
  selected.

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Determination of potential

• When determining potentials and interpreting the
  results of such determinations, a distinction
  must be made between the following definitions of
  potential
• Theoretical potential (e.g. physically available
  biomass)
• Technological potential (e.g. technologically
  usable biomass (time reference))
• Economic potential (economically usable potential
  (general framework))
• Realisable potential (anticipated actual
  contribution (time reference))
• Particularly the economic and the realisable
  potentials are significantly determined by the
  underlying general framework.

The results of potential analyses are decisively
affected by the underlying assumptions and by
restrictions.
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The importance of assumptions and restrictions
for potential analyses
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Costs associated with the use of alternative fuels

• The provision of biogenic fuels currently leads,
  in general, to higher costs in comparison with
  petrol and diesel.
• Marketable prices for biogenic fuels
  (particularly for pure fuels) can only be
  achieved with the aid of government subsidies.
• Government subsidies for alternative fuels are
  counterbalanced by (partially significant)
  benefits, for example on the part of the users.
• Assessments of the profitability of alternative
  fuels are only possible if they are based on
  specific operational and framework conditions.

In areas such as heat generation, the use of
biogenic energy sources already has the capacity
to compete with conventional sources.
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Negative environmental effects of plant-based
fuels

• High land area use
• Negative impact on biodiversity
• Increased exploitation of the resource soil
• Contribution to the depletion of the ozone layer
  through the release of N2O
• Environmental risk as a result of the penetration
  of fertilisers into water courses
• Release of non-limited, toxic emissions during
  operation
• Possible conflicts with modern exhaust gas
  treatment systems

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Incentives for the use of alternative fuels

• Subsidisation programmes
• Tax incentives (bonuses, penalties),
• Reduction of operating and administrative costs,
• Advantages for users (inner city toll, access
  restrictions, road charges),
• Specification of quality for tendering and
  subcontracting practices,
• Environmental goals (environmental reports,
  customer acceptance, advertisement),
• Reduction of economic risks (resale value,
  orders),
• Compliance with occupational health and safety
  regulations (e.g. air quality inside garages and
  road tunnels)

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Properties of alternative fuels
Sources KolkeR_2004, IE_11/2005, TAT_04/2006
SeyfriedF
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Properties of alternative fuels
Sources KolkeR_2004, BöhmerT_1999
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The supply path of vegetable oils
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The supply path of FAME
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The supply path of ethanol
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The supply path of FT fuels
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The supply path of natural gas
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The supply path of biogas
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The supply path of LPG
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Development of the international oil price, real
terms
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Development of CO2 emissions