LIFE Seq-Cure 3 rd EOG meeting CRPA Headquarters, Reggio Emilia Wednesday, May 26 th Walter Merzagora ITABIA

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1 1 LIFE Seq-Cure 3 rd EOG meeting CRPA Headquarters, Reggio Emilia Wednesday, May 26 th 2010 Strategy for meeting EU target on bioenergy production and consumption Italian scenario and perspective Walter Merzagora ITABIA

2 2 Content Profile, presentation and activities of ITABIA A glance at the New Directive of the EU Parliament and of the Council on the promotion and use of RES (draft issued 28 January 2008) The Position Paper of past Italian Government on Energy which includes target for biomass at 2020 (submitted to EC on September 2007) Meeting the Italian bioenergy targets: strength and weakness ITABIA s contribution to bioenergy development

3 3 Profile of ITABIA ITABIA is an independent and non-profit association, operating since 1985 in the bioenergy sector, with the aim of aggregate experience, promote research and development, guidance planning and support the regional initiatives.

4 4 Presentation of ITABIA ITABIA is also a collection and selection of information, experiences and proposals for service members and those working in the industry with the aim of the support, qualification and information to planning.

5 Activities of ITABIA Since its establishment ITABIA worked in the following areas: 36 Studies, research and demonstration activities 21 Relationships with national and local government 12 Relationships with associations and private organizations 10 Participation in International Networks 4 Participation in Associations and Consortia 19 Educational activities and information 10 Policy documents & 35 Publications 230 Courses, Conferences, Seminars and various meetings Over 100 Technical visits 5

6 6 The new EU Directive on RES 1. Aims The Directive contains proposals to implement the decisions for 2020 agreed by EU leaders in March 2007 : 20 % of total EU energy consumption to come from RES 20% reduction in EU greenhouse gas emissions 20% increase in energy efficiency 10% of transport biofuels target For Italy the target for share of energy from RES in final consumption of energy is 17%.

7 7 The new EU Directive on RES 2. Tools Mandatory targets for all member states. Rules for guarantees of origins establishing the trade between member states, administrative procedures (removing barriers), electricity grid connections. Sustainability criteria for transport biofuels.

8 The Position Paper of Italian Government on Bioenergy (Draft submitted to EC on September 2007) Primary energy expected to be replaced by biomass at 2020: Mtoe (About 7% of total primary energy need) Energy replaced in 2005: Gap to 2020: 3-5 Mtoe Mtoe 8

9 9 The Position Paper of Italian Government: total primary energy in Mtoe replaced by biomass Electricity 1TWhe = 0.2 Mtoe Heating Including non commercial biomass Implementation at 2005 Potential available by Biofuels Total Including non commercial biomass

10 Biomass types Solid biomass MSW (biodegradable fraction) ISW (agro-industrial waste) Animal manure Biofuels and other liquid biomass 10

11 11 Biomass resources details Residues from Mtoe Agricolture and agro-industry 5 Forest and wood industry 4.3 MSW (biodegradable fraction) 0.3 Animal manure Firewood 2 Energy crops 3-5 Total resources potential 24-28

12 12 Italian bioenergy targets: strength and weakness Resources Legislation Implementation

13 Resources Strength Overall availability of all kind of biomass: Mtoe/y 2020 target: About 16 Mtoe 13

14 Resources Weakness At present only 30%-50% of biomass can be collected because of: Lacking of well founded chain agreement Cost of collection and transport 14

15 15 Legislations Strength More than 60 laws and decrees, having direct and indirect connection with bioenergy, are in force at present

16 Legislations Weakness Lack of long-term stability of regulations Delay in issuing the implementation decrees following the promulgation of laws Unclear definition of virgin, residual and wasted biomass 16

17 Two latest Acts Law 81/2006 on Biofuels In April 2008 the Council of State issued regulation procedures concerning the obligation of the Oil Co. to mix biofuels at 2% in 2008 and 3% in 2009, hopefully 4% in Financial Law 2008 on New Green Certificates for Biomass The value of GC is multiplied by a 1.8 coefficient, in case of short supply chains, i.e.biomass feedstock sourced within a range of 70 km from the power plant. 17

18 Financial Law 2008 on New Green Certificates for Biomass These laws provide a rate of 0,28 for each produced kwh and this figure is applicable since 2009 to biomass and biogas plants, with a net electrical installed power below 1 MW. Furthermore this rate has been recently applied also to vegetable oils plants, subject to the respect of traceability and sustainability criteria, relevant to the oil origin. For plants with a net electrical installed power over 1 MW, it is near to come into force a National Decree fixing, for the Green Certificate value (about 80/MWh), a multiplier coefficient equal to 1.8, subject to the local origin of biomass, less than 70 km between the power station and the fences of the municipality where biomass is produced. 18

19 Implementation Strength In Italy there is a solid industrial web, managing mature technologies such as: small household appliances, district heating, small cogeneration, power plants, trigeneration, biofuel processing. 19

20 Implementation Weakness Obstacles are encountered for project implementation owing to complex procedures for getting permits and gaining incentives. 20

21 21 Details of main industrial systems Sector N Plants MW Source District heating th Itabia Power plants el Itabia Biogas plants el GSE Biofuels plants (90% vegetable oils) Biofuels capacity (biodiesel) el GSE t Assocostieri

22 22 Main Pre-Conditions for a Sustainable Development 1. Clear and consolidated legislation 2. Standardization and chains certification 3. Re-organisation of agriculture and forestry 4. Pushing on profitable projects 5. Stimulating demand 6. System approach

23 Itabia s contribution to bioenergy development In the last 3 years Itabia: Contributed to the preparatory phase of GBEP Joined the EU project RES-HEAT (Heat from Renewables) Coordinating the EU project called BITES: Biofuels Technologies EU Showcase Co-founded and is co-chairing the Italian Platform on Biofuels Have signed an agreement with agro-industry firm 23

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25 To get more information, as well as to join ITABIA, contact the ITABIA s office at the following address ITABIA - Italian Biomass Association Via Acireale ROMA Phone Fax itabia@mclink.it 25