Incentives for renewable fuels in Sweden

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• Incentives for renewable fuels in Sweden
• the results on use of E85 and biogas
• Kristina Birath
• Co-ordinator of Ethanol bus Buyers Consortium
• WSP AnalysStrategi

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New cars in Europe
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Cities are important drivers for change!

• Cities (Stockholm, Gothenburg, Växjö) invested in
  clean vehicle in their own fleet
• Common procurement of an ethanol car Ford Focus
  FFV
• Cities - extensive dialog with the Government on
  incentives
• Local investment in biogas production and fuel
  stations
• Local cooperation with fuel distributors
• Procurement of transport services on renewable
  fuel

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National Incentives

• Tax exemption for renewable fuels until 2013
• National definition of Clean vehicles Biogas,
  ethanol, hybrids and petrol/diesel (PM reduction)
  with less than 120 g CO2
• National authorities has to buy gt 85 clean
  cars. 25 of emergency vehicles must be clean.
• Law on sales of renewable fuels (2006 gt3000 m3,
  2007 gt2000 m3 and 2008 gt1000 m3) special funding
  to biogas pumps.
• Congestion charging biogas, hybrid and ethanol
  cars exempted
• CO2 based vehicle tax on all new light vehicles
  from 2006
• Lower company car tax on biogas, ethanol and
  hybrid cars
• ca 1000 Euro discount for private buyers of
  clean vehicles
• Local incentives
• Free parking
• Clean cars first in line at Arlanda (have to
  prove 50 renewables)

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Results so far..

• 19,6 of all new cars sold 2007
• are clean cars according to the
• national clean car definition
• The prognosis for 2008 is 25

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Ethanol in Sweden
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Biogas in Sweden
12 models of biogas cars

• Biogas/CNG fuel stations

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Results so far -

• New models of ethanol cars are introduced in
  Sweden Peugot, Citroen, Saab, Volvo, Ford,
  Renault, Skoda, VW, Seat
• Sharp increase in no. of energy efficient diesel
  cars (120 g)
• A new coordinated procurement of distribution
  vehicles result an ethanol VW Caddy on the
  market Q1 2008

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Renewable fuels in buses

• Goal for SLTF
• 50 renewable fuels 2011
• 90 renewable fuels 2025

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Driving forces for biofuelled buses

• Oil price
• Climate change
• Sustainable public transport

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Ethanol buses in short

• Modified compression ignition engine
• 94 hydrous ethanol and 5 ignition improver
• Not flexi fuel
• Small price difference on the bus
• Price of fuel depends on taxes
• More frequent maintenace

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Ethanol double decker in London
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Conclusion

• Sweden has shown that a small market is
  interesting for large producers!
• Cities in cooperation with government are
  important drivers of the development
• A clear strategy and long term decisions creates
  stability