Biofuels in Sweden

1
Biofuels in Sweden moving the sustainability
agenda forward
Semida Silveira PhD, sustainability
expert International Secretariat
Curso combustíveis líquidos Campinas, Brasil 08
June 2006
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Biofuels in Sweden moving the sustainability
agenda forward
Presentation structure

• EU policies and concerns
• Swedish experiences
• Reducing fossil fuel dependence

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Priorities in EU energy policies

• security of energy supply
• environmental protection
• industrial competitiveness

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Why alternative fuels for transport in Europe? (1)

• Security of supply
• In 2030, EU may have to import
• 90 of oil
• 90 of coal
• 60 of gas

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Why alternative fuels for transport in Europe? (2)

• Reduction of greenhouse gas emissions
• (transport is major source of GHG emissions)
• 8 reduction of GHG emissions (2008-2012)

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Estimated greenhouse gas reductions from biofuels
Source IEA, Biofuels for Transport, 2004
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Range of cost per tonne of CO2 reduction
Source IEA
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Action to promote transport biofuels use in
Europe

• Biofuels directive
• 5.75 in share of biofuels in transport 2010
• Increasing production of biofuels
• Test of ethanol busses in many cities

9
EU targets for alternative motor fuels( of
total road fuels)
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Biofuels in Sweden moving the sustainability
agenda forward
Presentation structure

• EU policies and concerns
• Swedish experiences
• Reducing fossil fuel dependence

11
Swedens energy use 2004
Total energy use 1970 408 TWh 2004 405 TWh
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Energy intensity per BNP Sweden 1980-2002
Accomplishments
energy use delinked from development
Source SCB
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Growth of income per capita 1980-2004 (50
increase)
Total energy use 1970 408 TWh 2004 405 TWh
Broken time series 1993/94
energy use delinked from economic growth
Source SCB
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Transport fuels in Sweden 1970-2003
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CO2 emissions in Sweden1980-2003
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Greenhouse gas emissions per sector in Sweden
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Bioenergy in Sweden factors that favoured the
development

• district heating systems heat markets
• investment subsidies and tax incentives
• integration with forest industry
• local engagement in energy issues
• long-term policies for fossil fuel substitution
• research and development

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Development of district heating 1970-2004
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Bioenergy use for electricity generation in pulp
mills
effect of green certificates
Source Svebio
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BioEthanol expansion in Sweden 2001-2005
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Clean vehicles in Sweden
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Major driving forces favouring transport
biofuels in Sweden

• Policy to break oil dependency 2020
• CO2 emissions reduction needs (4)
• The biofuel directive (5.75 biofuel 2010)
• Security of supply

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Driving forces for ethanol use in Sweden

• Tax incentives on biofuels
• Cheap ethanol from Brazil
• Legislation on installation of pumps in gas
  stations

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Legislation for filling stations

• Mandatory biofuel pump at stations
• larger than 3500 tonnes gasoline (2006)
• Larger than 1000 tonnes gasoline (2009)
• Technology neutral but will favour ethanol
  (biogas pumps cost 5-10 times more than ethanol)

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Filling stations in Sweden 300 filling stations
for ethanol E85
Green-ethanol Yellow-FAME Blue-Biogas, natural gas
all stations expected to deliver biofuels in 2009
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Driving forces for flexifuel vehicle (FFV) in
Sweden

• Tax reduction on biofuels
• Incentives for car owner
• Free parking in some municipalities
• No congestion fee in Stockholm
• Cheap ethanol

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Calculations for a FFV owner

• Company car taxation - 300 Euro
• Free parking - 500 Euro
• No congestion fee - 1400 Euro
• Lower price on ethanol - 150 Euro
• Total savings per year - 2350 Euro

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Problems on consumer side

• less energy content in ethanol (up to 30)
• conservatism
• short term legislation (2008)
• uncertain development of ethanol prices
• fewer advantages for private cars
• FFV more expensive than conventional car
  (400-900)

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Problems for the government

• tax exemption is expensive (green certificates?)
• large imports (duties?) X own production
• distribution of biofuels (mandatory measures)
• hard to fulfill the biofuel directive
• no direct solution for diesel (BTL)

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Biofuels in Sweden moving the sustainability
agenda forward
Presentation structure

• EU policies and concerns
• Swedish experiences
• Reducing fossil fuel dependence

31
Dealing with the energy and climate challenges
less fossil more renewables efficient energy
supply and use
competitive markets new systems new investment
patterns

ecologically, socially and economically robust
systems increased energy service access climate
change mitigation
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Major policy targets in Sweden
Goals and policies

• breaking oil dependence (2020)
• 17 TWh more electricity from renewables
  (2002-2016)
• non-binding target of annual wind power 10 TWh
  in 2015
• reduce energy use in buildings by 20
  (1995-2020)
• 4 less ghg emissions without sinks or flexible
  mechanisms

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Research focusenergy in transport

• Production processes for renewable fuels
• Improved energy efficiency of vehicles

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Development platform well to wheel
Fuels are CO2 neutral and highly efficient
Efficient vehicles delivered from industry
VEHICLES
RENEWABLE FUELS
EMISSIONS
Commercial technologies harmonization within EU
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Introduction of biofuels in the market
Fuels Low mixture 100 clean fuel
DME
Ethanol (E)
Alcohols (A)
Diesel
E5 (E10)
A100
M3
Synthetic
Synthetic
short term ----gt middle-long term
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Biodiesel production in Europe(in thousand
tonnes)
Country 2005 2006
Germany 1699 2681
France 492 775
Italy 396 857
Czech Rep 133 203
Poland 100 150
Austria 85 134
UK 51 445
Sweden 52
Total EU 3184 6069
Source European biodiesel board
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Ethanol from cellulosepilot plant - 27 million
project
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Gasification and synthes gas for transport fuels
and chemicals
Coal
CO2
Synthetic Diesel (FT)
Oil prods
Synthes gas(COH2)
Metanol
Gas
GASIFICATION
DME (DiMetylEter)
Biomass
Black liquor
Hydrogen
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Two gasification roads being tested in Sweden
Source modified from CHEMREC
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Växjö Värnamo BiomassGasification Center
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Växjö Värnamo BiomassGasification Center

• project illustrating Swedish and European
  ambitions to accelerate the implementation of the
  Biofuels Directive
• centre of excellence for training and
  development of technical know-how in gasification
  for liquid biofuel
• regional project with global interest

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Växjö Värnamo BiomassGasification Center

• Feeding systems
• Hot gas cleaning
• Gasification of biomass
• IGCC
• GT
• Synthes gas upgrading
• Catalyst research
• BTL processes
• H2 for fuel cells
• Training and education

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CHEMRECs demonstration plantblack liquor
gasification
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The BLGMF process substitutes the recovery
boiler and allows production of transport fuels
Pulp
typically 5-600 MW
Black liquor energy
DME/MeOH
BLGMF
Biomass
Source CHEMREC
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Extra biomass inputs balances the internal energy
needs
Pulp
Typically 5-600 MW
Black liquor energy
DME/MeOH
BLGMF
Biomass
Source CHEMREC
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and allows for 65 more production of highly
efficient transport fuels
Pulp
typically 5-600 MW
Black liquor energy
DME/MeOH
BLGMF
Biomass
gt65
Source CHEMREC
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Price of the fuel at the pump -methanol and
gasoline (Chemrec)
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Heavy duty vehiclesdistance per hectare and year
Diesel engine efficiency assumed for all fuels
Source AB Volvo
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The road ahead forbiofuels in Sweden

• biofuels can be phase-in into existing transport
  systems
• ethanol is a good starting point
• incentives are needed in initial phase
• introduction of biofuels expensive for the
  government
• more RTD is needed for development of biofuels
• EU consensus on what to do but how to do it
  still pending

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www.stem.se
semida.silveira_at_stem.se
Obrigada!