Ministry of Agriculture of the Czech Republic

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Petr Jevic Research Institute of Agricultural
Engineering, p.r.i. Prague (RIAE)Association
for Biodiesel Production, Prague (SVB)9
October, 2009

• Ministry of Agriculture of the Czech Republic
• Department of Agriculture of the State of Georgia
• AGRICULTURE IN THE CZECH REPUBLIC AND IN THE USA
• STATE OF GEORGIA
• Current state and outlook of sustainable
  development
• of biogenic fuels in the Czech Republic

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• RESEARCH INSTITUTE OF AGRICULTURAL ENGINEERING
  (RIAE)
• Institute main activity
• Research of technological systems for production
  of agricultural focused to the technological,
  technical, construction, energetics, ecological,
  economical and organization problems, consulting
  and advisory services.
• Technological systems for production agriculture
  division
• Division of energetics and logistics of
  technological systems and biomass utilization for
  non-food purposes
• Division of the economics of agricultural
  technological systems
• Division of agricultural technological systems
  ecology
• Division of external and internal service

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• THE ASSOCIATION FOR BIODIESEL PRODUCTION (SVB)
• Established on 11.12.1990 following the contract
  according to
• 366a/ of the Commercial Code of the Czech
  Republic.
• Activities in the field of rape complete
  processing support
• or other oil-bearing crops, used vegetable oils
  and fats into technical
• products and feed components.
• Enforcing of stipulated partial aims, joint
  creation of technical,
• economical and legislative conditions and their
  initiation not only
• in the production and processing sphere, but
  also in the sphere
• of production utilization.
• Promotion, information service, consultancy,
  intermediary
• and coordination activity, provision of basic
  professional
• international cooperation
• Ensurance of special gestion towards central
  State administration

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Brief introduction history, present and future
estimation of the biodiesel in the Czech
Republic 1988 first proposal of rapeseed oil
utilization in the sphere of oleochemistry (RIAE
Prague) 1990 1998 Oleoprogram, production
subsidies of B30 zero excise tax 1.1.1999
31.3.2000 direct subventions of RME
production 1.4.2000 31.12.2000 preferential
VAT of B30 towards diesel and subventions of FAME
production 1.1.2001 30.4.2004 B30 had
reduced excise tax rate (69 of the diesel tax
rate), stabilization of rapeseed price on the
market, boom of biodiesel production 1.5.2004
30.6.2005 ending of the subsidies, entrance
into EU, necessity of subsidies notification
1.7.2005 31.12.2006 B30 reduced excise tax
6866 CZK/1000 l and subsidies for RME producers
(only for domestic market consumption) 1.1.2007
31.12.2007 B100 zero excise tax, ending of
B30 sales (tax conditions) 1.9.2007
31.12.2008 mandatory blending min. 2 V/V
1.1.2009 mandatory blending min. 4.5
V/V 1.1.2010 estimation of mandatory blending
min. 6.3 V/V (?)
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Implementation of the program Bioethanol in the
Czech Republic

• Official beginnings of the program Bioethanol
• Government Decrees No. 125 of 14 February 1996
  and No. 420
• of 17 June 1998 start the utilization of
  biodegradable fraction
• of product waste and residues from agriculture
• Amendment of the Act on spirit and excise taxes
• 1 January 2008 mandatory blending min. 2 V/V
• 1 January 2009 mandatory blending min. 3.5
  V/V
• 1 January 2010 mandatory blending min. 4.5
  V/V (?)

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Legislative frame past and present

• Act on Air Protection No. 86/2002 amended in 2007
  (Act No. 180)
• Since January 1, 2008 in amount of 2 V/V of
  total amount of the motor petrol fuels blended in
  the motor petrol
• Since September 1, 2007 in amount of 2 V/V of
  total amount of the motor diesel blended in the
  motor diesel
• Since January 1, 2009 in amount of 3.5 V/V of
  total amount of the motor petrol fuels blended in
  the motor petrol
• Since January 1, 2009 in amount of 4.5 V/V of
  total amount of the motor diesel blended in the
  motor diesel

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Legislative frame past and present

• Ministry of Agriculture and Ministry of
  Environment of the Czech Republicsupport the
  proposal of Association for Biodiesel Production
  and Union of Distilleries of the Czech Republic
  for the increase of minimal share of biofuels
  since January 1, 2010
• bioethanol 4,5 V/V
• biodiesel 6,3 V/V

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Legislative frame past and present

• Act on Excise Tax No. 353/2003 amended in 2006,
  2007 and 2008 (expectation of a new amendment in
  2009)
• Since January 1, up to December 31, 2007 was i
  force zero excise tax
• for Biodiesel B100
• Since January 1, 2008 was full rate of excise tax
  for Biodiesel B100
• 9950 CZK/1000 litres
• Since October 1, 2009 there was approved the tax
  support of biofuels (automotive fuels) FAME
  (B100), Diesel fuel blends containing Fatty acid
  methyl esters B30, Ethanol automotive fuel
  E85, Ethanol for compression ignition engines
  (diesel engines) E95, Biogas for positive
  (spark) ignition engines, Fuels for vegetable oil
  compatible combustion engines Fuel from
  rapeseed oil

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Summary domestic production, trade, stock
change and brutto consumption biofuels in the CR
Bioethanol 2005 178 tons blending component
for petrol 2006 258 tons blending component
for petrol 1532 tons ETBE production
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CR bioethanol production capacities as of
December 2008

• 370 mln litres/year cca 292 000 tons/year
• Cross consumption and deliveries of motor petrol
  2 000 000 tons
• 3.5 V/V 110 mln litres/year cca 87 000
  tons/year
• 5.75 V/V 185 mln litres/year cca 146 000
  tons/year
• Source Union of Distilleries of the CR

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Summary domestic production, trade, stock
change and brutto consumption biofuels in the CR
Source SVBVÚZT
Biodiesel in the Czech Republic
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Sales of B30 in Czech Republic in 1992 - 2008
Biodiesel B30 (mixture 69 of diesel and 31 of
biodiesel according to standard CSN EN 65 6508
1992 1993 1994 1995 1996 1997 1998
1999 2000 2001 2002 2003 2004 2005 2006
2007 2008 Year
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Summary domestic production, trade, stock
change and brutto consumption biofuels in the CR

• Biodiesel (FAME, FARME) - 2009, January August
• Domestic production 99 570 tons
• Import 5 325 tons
• Export 18 510 tons
• Stock change /- 1 490 tons
• Brutto consumption 84 895 tons
• CR biodiesel production capacity 420 000
  tons/year
• Major biodiesel producers
• Agropodnik Jihlava 70 000 tons/year
• Oleochemical Liberec 70 000 tons/year
• Preol Lovosice 100 000 tons/year
• Oleofin Ústí/Labem 139 000 tons/year
• Primagra Milín 35 000 tons/year

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Consumptiom of Diesel and Biodiesel history and
estimation
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Fuels and biofuels - storage and distribution
network in the Czech Republic
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Biofuels standardization

• Biofuels as well as conventional motor fuels have
  to reach a high minimum level to be acceptable
  for car manufacturers and combustion motors.
• Biofuels have to meet requirements for high
  quality and to be prepared for developing
  according to automotive and motor technique
  needs.
• Directive of the EU 2009/30/EC, April 2009 as
  regards the specification
• of petrol, diesel and gas-oil and the
  introduction of a mechanism to monitor and reduce
  greenhouse gas emissions from the use of read
  transport fuels and amending council Directive
  1999/32/EC, as regards the specification of fuel
  used by inland waterway vessels and repealing
  Directive 93/12/ECC

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Current CR and European - Fuel and biofuel
standards

• Petrol Bioethanol
• CSN EN 228 Unleaded petrol
• bioethanol content max. 5 V/V
• extension of EN 228 to E10 max. 10 V/V
  bioethanol
• CSN EN 15293 Ethanol automotive fuel E85
• CSN 65 6513 Ethanol for compression ignition
  engines (diesel engines) E95

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Current CR and European - Fuel and biofuel
standards

• Diesel fuel Biodiesel
• CSN EN 590 Diesel (April 2009)
• FAME content max. 7
• oxidation stability test methods
• addition EN 15751, min. 20 h.
• recommended use of stabilisers (equiv. to 1,000
  mg BHT/kg)
• extension of EN 590 to B10 (max. 10 V/V FAME)
• CSN EN 14214 Fatty acid methyl esters (FAME)
  for diesel engines (June 2009)
• reduction of phosphorus content to 4 mg/kg
• flash point acc. to Pensky-Martens included
  limit reduced to 101 oC
• Na- and K-determination acc. to EN 14538
  incorporated 5,0 mg/kg
• suspension of cold flow requirements for FAME
  used as blend component
• recommended use of stabilising additives

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Current CR and European - Fuel and biofuel
standards
CSN 65 6508 Diesel fuel blends containing Fatty
acid methyl esters (FAME)
B30 (2009) CSN 65 6516 Fuels for vegetable oil
compatible combustion engines
(2008) CSN 65 6514 Biogas for positive
(spark) ignition engines
(2008)
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Sustainability is key for biofuel Industry

• Everyone is talking about sustainability
  sustainable energy,
• sustainable food, sustainable economy.
• It makes sense.
• We are living large, and if we could only
  sustain our current way of life,
• how great would that be?
• CO2 balance competitive factor!
• Engine technology as limit

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The biofuels policy define certain criteria for a
sustainable production of biofuel feedstock
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Second generation biofuels and synthetic fuels

• At present, BTL (biomass to liquid) fuels are
  the subject of various R D
• projects and 2nd generation biofuels.
• Despite all the excitement in the media about
  next generation biofuels,
• it is self-evident that we are at the very
  early stages of the development
• process.
• Politicians around the world are acknowledging
  the barriers to entry
• and have brought forward a number of incentives
  to overcome them.

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Second generation biofuels and synthetic fuels

• The Energy Act of 2007 in the United States is a
  prime example of this.
• This is the most explicit growth related program
  for next generation biofuels there currently is.
  As early as 2010, the US Congress has provided
  for the distribution of 100 mln gallons of
  cellulosic alcohol
• in the market.
• The share of cellulosic ethanol is set to rise at
  an accelerating rate to reach 16 bln gallons (60
  bln litres, 48 mln tonnes) of fuels by 2022.
• By then, production of cellulosic alcohol will be
  greater than the output
• of the corn ethanol industry, which has been
  capped a 15 bln gallons.

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Second generation biofuels and synthetic fuels

• The EU renewable fuels directive has a similar
  focus. Next generation
• biofuels have the advantage of more significat
  greenhouse gas savings
• and therefore the Commissions proposal foresees
  that nextgen biofuels
• will count double against the 2020 production
  target.
• Another key policy component is the development
  of biorefinering.

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Next generation biofuels

• Research activities of the Czech Republic in this
  sphere are not comprehensive, but for the time
  being there are aimed at the particular
  operations of technological process
• Feedstock cultivation
• Hydro-treatment of vegetable oils
• Lignocellulose utilisation
• Biobuthanol
• Thermal depolymerization
• Flash pyrolysis
• Hydrotreating, hydroprocessing
• However, this process can be improved
  considerably by means of international
  cooperation and exchange of information.

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B100 powered jet completes flight
Green Flight International successfully completed
a biodiesel-powered transcontinental flight
across the United States on Nov. 1. Beginning in
Reno, New., and concluding in Leesburg, Fla., the
flight lasted 11 hours and 13 minutes, reaching
altitudes of 13,000 to 17,000 feet. Source
Biodiesel Magazine, January, 2009

• According to Douglas Rodante, Green Flight chief
  executive officer, 1,776 miles of the flight were
  fueled by B100. The remaining 710 miles of the
  flight were powered by a mixture of 50 percent
  biodiesel and 50 percent jet fuel.
• A 1968 L29 Delphin, a single engine military jet
  aircraft built in Czechoslovakia, was used to
  complete the flight. We didnt have any problems
  with cold flow properties in this aircraft
  because of the design, Rodante said.
• Engine oil runs through an area surrounding the
  fuel filter, heating the fuel going through the
  filter. The heated fuel is circulated back
  through the fuel tanks. Our fuel temperature on
  the flight was 27 degree Celsius (80 degrees
  Fahrenheit) and that was up and over 17,000
  feed, he said.
• According to Rodante, only slight engine
  adjustments had to be made in order to run the
  L29 Delphin on B100. If we used a B20 blend in a
  modern aircraft, I dont think there would be any
  modifications that need to be done, he said.

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Conclusion

• Biodiesel, bioethanol and in future BTL are the
  key alternatives for oil, gas and coal to reduce
  CO2 in transport sector.
• Feedstock availability, energy efficiency and
  land use are the drivers towards BTL
  technologies.
• BTL will complete the overall fuel mix together
  with 1st generation biofuels in future.

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Conclusion

• Synergies among agricultural enterprises,
  biodiesel producers and refineries
• Lowering of GHG emissions in the long-term
  perspective in accordance with criteria of
  sustainability for biomass growing
• and biofuels production

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Thanks for your attention. Contact Petr
Jevic Research Institute of Agricultural
Engineering, p.r.i. PragueAssociation for
Biodiesel Production, Prague Drnovská 507, 161
01 Prague 6 tel. [phone], e-mail
petr.jevic_at_vuzt.cz
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