BIOFUELS FOR TRANSPORT IN THE EU:

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BIOFUELS FOR TRANSPORT IN THE EUTHE EU
DIRECTIVES AND ACTION PLANS FORPROMOTING
BIOFUELS

• Raffaello Garofalo
• EBB Secretary General
• EBB European Biodiesel Board
• Nordic Bioenergy Conference 2005, Trondheim
• October 27th, 2005

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• THREE PARTS
• The EU biodiesel industry an overview
• Two years after the approval of the biofuels
  Directive what has been achieved
• and what still is to be achieved (especially in
  Northern European Countries and in Norway)?

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• What is EBB
• The European Federation of biodiesel producers
• Co-ordinates and represents the industry at EU
  and national level
• Permanent office in Brussels
• Representing 80 of the EU Biodiesel production
• 31 members (21 full members and 10 associates)
• Private companies are directly members of the EBB
• Many medium size industries active in rural areas
  (job creation)
• Multinational companies of the Agricultural
  processing and vegetable oils sectors (ADM,
  Bunge, Cargill)
• Industry from the fuel and renewable energy
  sector (Sauter, EHN, Fox)

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• EBB membership

Campa Biodiesel

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• The EU and biodiesel a short introduction
• The EU conventional fuel market is increasingly
  short in diesel and long in gasoline (same trend
  in the US)
• The EU is the world leader in biodiesel
  production
• More than 70 operational production sites across
  Europe (80-85 probably mid 2006) plus many new
  projects and investments
• A reliable industry and a well-proven reliable
  partner for the EU mineral oil industry
• Biodiesel is the first biofuel produced in Europe

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• 2004 production of biofuels in the EU-25Sources
  EBB, ADECA

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2004 Biodiesel production capacitiesin the EU-25
and its Member States (000 t)Situation in date
1/01/2004
Member States
EU-25
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EU Biodiesel production in Member States and in
the EU (000 t)
EU-25
EU-15
EU-15
EU-15
EU-15
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• EU and Worldwide biodiesel production in 2004
  (estimate - million tonnes)

EU (1,93)
world (0,29)
US (0,14)
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• Why biodiesel and biofuels? their advantages in
  terms of
• Environment
• Biofuels are fully renewable energies and do not
  entail CO2 emissions
• The EU transport sector is practically 100
  dependent on oil
• CO2 emission from the transport sector are
  expected to keep rising worldwide
• Biofuels are the only way for reducing CO2
  emissions form transport
• Human health
• Reduction in particulate matter emission
• Biodiesel particulate is much less carcinogenic
• Security and independence of supply
• Rural development

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Changes () in EU greenhouse gas emissions by
sector1990-99, Sources European Environment
Agency, BAFF
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• TWO YEARS AFTER THE APPROVAL OF THE BIOFUELS
  DIRECTIVE WHAT HAS BEEN ACHIEVED?

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• EU legislation in favour of biofuels and
  biodiesel (Directive 2003/30)
• European Targets (2 in 2005 and 5,75 in 2010)
• Their implementation at national level some good
  legislations and many new draft law
• Austrian Targets and new legislative strategy
• France is re-launching its role of EU biofuels
  leader
• Germany EU biodiesel and biofuels pillar
• Some Member States are still lagging behind
• How is the legislation applied what about the
  targets?

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What would the Directives targets represent
in practice? 2 Scenario for EU-25
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What would the Directives targets represent
in practice? 5,75 Scenario for EU-25
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What would the Directives targets represent
in practice? 2 Scenario for Denmark
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What would the Directives targets represent
in practice? 2 Scenario for Finland
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What would the Directives targets represent
in practice? 2 Scenario for Sweden
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What would the Directives targets represent
in practice? 5,75 Scenario for Sweden
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• Where are we now Member States
• 2005 targets and 2004 biofuels use

.
(All figures are in and energy content)
EU-25
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• Where are we now? Biofuels use in 2004
• Biodiesel/Bioethanol relative contribution to EU
  biofuels market penetration in 2004

.
(Percentage in energy content of the conventional
fuel market)
EU-25
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• Directive 2003/30 on the field
• The targets beyond arithmetic a strong political
  value
• Important to translate it in national
  legislations efficiently applicable in practice
• Is tax exemption the only way? Mandatory and
  other national marketing promotion systems have
  many advantages
• Cost-free for national budgets transfer
  supplementary cost to consumers
• Limited and even unnoticeable supplementary costs
  for consumers
• In line with polluter pays principle
• However, legally, an EU mandatory target could
  not co-exist with national tax exemptions

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• WHAT STILL NEEDS TO BE ACHIEVED ?
• EU AND WORLDWIDE BIODIESEL CHALLENGES

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• EU and world-wide challenges
• Quality is the precondition to long term
  biodiesel success
• Related to standards and raw materials
• A permanent challenge for all biofuels
• The EU legislation and diesel CEN standard have
  to be consistent with the 5,75 target (6,5 in
  volume if only reference diesel) the 5 low blend
  concept need to be substituted by a 10 low
  biodiesel blends concept
• Raw materials availability and glycerine markets
• We need to supply the biodiesel growth (standard
  modification) and to care about by-product
• What about international trade of biofuels and
  biodiesel?

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• Supplying the EU biodiesel growth
• Biodiesel at the crossroads
• Supply is fuel to the biodiesel industry
• The demand for biodiesel is increasing
• EU biodiesel markets are very likely to grow even
  stronger in the next years, will EU agriculture
  follow?
• EU agricultural supply is largely available sofar
  and the EC Commission wants to further encourage
  non-food crops
• Could eventual future imports of agricultural raw
  materials be envisaged in the future?
• A better answer the EU BIOMASS AND BIOFUELS
  ACTION PLAN
• The production of biodiesel must be limited to
  sustainable raw materials providing a good
  quality product (EN 14214)

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• What future for international trade of biodiesel
  and biofuels
• The EU an exporter or an importer profile?
• Technical limitations for imports EU standards
  and iodine number
• Political limitations national subsidies for
  sustainable transport and energy independency but
  also to support local economy and agriculture
• Difficult to imagine French or German taxpayers
  to subsidize a product e need to supply the
  biodiesel growth (standard modification) and to
  care about by-products
• Simple and transparent rules are needed to create
  an EU internal market and an international market
  for biofuels

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• Co-ordination and common action of the
• EU biofuels industries
• Co-operation at global level towards an
  international biodiesel coalition
• Co-operation with NBB, Canadian BAC, Malaysian
  MPOB, Brazil?
• Many issues are global (guarantees from OEMs,
  glycerine, etc.)
• European Biofuels Industries (biodiesel and
  bioethanol) co-ordination, need to co-ordinate
  our voices
• Avoid fragmenting the biofuels industry at EU and
  national level we need all the team not just
  only one player to answer to the ambitious
  challenge of EU targets

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• CONCLUSION
• The biodiesel industry is today a well
  established sector in Europe and is becoming more
  and more a global business
• EU legislation is playing a major role but needs
  to find an efficient and practical implementation
  in all Member States
• Quality is a permanent challenge and the
  pre-requisite to all success
• The main message that the EU biodiesel industry
  wants to pass today is that in order to fulfil
  the ambitious EU targets we will have to pass
  quickly from a B5 concept to a B10 concept for
  low biodiesel blends in Europe
• And we cannot do it alone or against someone, we
  need to do it in partnership
• together with all the different biofuels
  producers
• together with vehicle manufacturers and
  mineral oil producers

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• For more information please contact
• Raffaello GAROFALO Secretary General
• EBB - European Biodiesel Board
• Bld Saint-Michel, 47 1040 Bruxelles
• Tel [phone], email ebb_at_ebb-eu.org
• Or visit the EBB web-site www.ebb-eu.org