Biofuels in Europe

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Biofuels in Europe

• Ir. Kees W. Kwant
• SenterNovem,
• The Netherlands

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Contents

• Status
• Case Studies
• Analysis
• Recommendations
• Conclusions

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Biofuel market in Europe
biodiesel
Bio-ethanol
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Liquid biofuel production 2003
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International reality and ambitions

• reality
• 2001 USA 0,5 EU 0,3
• targets
• 2005 EU 2,0
• 2010 USA 4,0 EU 5,75
• 2020 USA 10,0

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Case study Spain

• Act 53/2002, Tax exemption till 2012
• Technical Regulations
• 2003 4 plants for bioethanol in operation

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Case Study Austria

• Exemption of biodiesel from mineral oil tax
• Development of quality standards and warranties
• -gt 4 biodiesel production plants
• Export of biodiesel to Germany and Italy

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Case Study Netherlands

• GAVE interaction between stakeholders network
• Development of environmental sound biofuels with
  climate neutrality
• Creates awareness
• No production and utilitisation in the
  Netherlands

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Analysis Financial
Level Playing Field needed
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Analysis Technology

• Conventional biofuels New Generation Fuels
• Sugar/starch oil based L.Cellulose based
• Limited climate effect Climate neutral
• Commercial RDD needed

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Future
Now
Implement now and Innovation for the future
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Analysis Technology
Environment

• Are the environmental performances clear?
• Car manufacturers go for zero emission cars
• Oil companies develop low emission fuels
• Currently strong focus on CO2
• Conventional biofuels have improved
  significantly -50 CO2 emission achievable
• New generation fuels up to 90 possible

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Non technical Barriers
Information

• For every (bio)fuel a LCA-study can be found to
  confirm the ecological performance of the fuel
• Structured and independent information based on
  clear defined references is not easy accessible
  or transparent available (Apples of tomorrow are
  compared with pears of yesterday)
• No agreed calculations and broad accepted
  methodologies
• EC DG-TREN recognised issue started stakeholder
  based project on this ( www.Viewls.org clear
  views on clean fuels)

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Analysis Policy

• Policies
• Driving forces for policy issues not always
  consistent and clear
• Agricultural support rural development
• Strategy concerns security of supply, reducing
  import dependence
• Climate protection
• Sustainable energy supply system
• Sustainable Mobility
• Biofuels can contribute to all of these policy
  fields
• In most policy fields biofuels are only perific
  option

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Analysis Different Markets

• Reflects the policy priorities
• Thus in different countries different tax
  reduction schemes and different approaches
  towards fuel introduction strategy
• France strong focus on ETBE and ethanol in blends
• Spain and Germany tax exemption
• Sweden promotes the introduction of Flexible Fuel
  Vehicles with free parking licenses
• EU Biofuels directive allows tax reduction
  schemes. Countries free to implement in own way.
• Use both approaches Blending and Niche markets

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Analysis Complex Market
Market

• Involved market parties

Biomass producers
Car Manuf.
Oil Companies
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Analysis Complex Market
Market

• Involved market parties
• current fuels require caradaptations
• future fuels require fuelconversions
• different biomass resources
• No common strategy ofplayers
• No long term marketing visions
• No market experiences between parties
• Biofuels marginal for all parties

Biomass producers
Car Manuf.
Oil Companies
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Analysis Complex Market
Market

• Only biodiesel nowstandardised
• bioethanol standardunder development
• Security of biomasssupply?Who will carry the
  risksfor the investments?
• Car manufacturers and Oil companies have own
  sustainability routes, not necessarily with
  biofuels

Biomass producers
Car Manuf.
Oil Companies
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REACT Recommendations

• 1. Financial incentives should be created for
  biofuels to become an alternative for fossil
  fuels on the short term. However, the kind of
  financial incentives that can and/or should be
  applied can differ considerably between EU member
  states

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REACT Recommendations

• 2. The incentive system for biofuels should take
  national and international drivers for
  introducing biofuels into account, which are
  diversity of energy supply and reduction of
  GHG-emissions
• 3. Innovation regarding biofuels should be
  stimulated in order to exploit the full potential
  of biofuels.

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REACT Recommendations

• 4. Market introduction of biofuels should
  preferably take place in a range of markets that
  can achieve an increased public awareness
  regarding environment issues.
• 5. Biofuels should be an integral part of the
  measures to promote sustainable mobility.
• 6. Biofuels should facilitate international trade
  of fuels.

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REACT Recommendations 7

• 7. The introduction of mandatory biofuel targets
  chould be regarded by the EC if the
  implementation lacks behind schedule
• 8. Set up a "platform" for communication with and
  between all the relevant stakeholders in order to
  co-ordinate common formulation of required policy
  steps, to assure fast flow of information, and to
  learn form each others lessons.

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REACT Conclusions

• Introduction of biofuels is complex
• Innovation necessary to improve environmental
  performance
• Governments can create a sense of urgency by
  implementation of smart policies
• For agriculture and industry great opportunities
  exist