Impact of the ILUC discussions on the development of advanced biofuels SEKAB SUSTAINABLE GREEN CHEMISTRY SOLUTIONS 2014-05-13, AEBIOM EUROPEAN BIOENERGY CONFERENCE
ILUC Indirect Land Use Change Waste and cellulosic material are not included Extra CO2 emission based on the calculations. 1 Ha of barley used for horse or cattle feed. How to replace? Set aside: 600 000 ha in Sweden and 11 million in EU The same amount of feed from Brazil. Will that cause rainforest cutting? Not considered to reduce the use or make the food production line more effective.
ILUC - ILUC proposals from EC 2012 2013. - Several modified proposals during the last year - together with changes in RED. - Reporting from 2017 and rules from 2020. - Default values. - Definition on feedstocks. (?) - No agreement at the end of 2013. - Rumors of Greek activities spring 2014.
State aid guidelines. - The state aid rules approved a month ago. - Instead of oil, sugar and starch crop the definition is now food based biofuels. No specification is given in the text what it is. - Instead of cellulosic and waste the wording advanced biofuels are used.
ILUC - What will happen in future? - Hard to predict when and how the next steps will be taken. 2015? - The feedstock specification is crucial, residues today but how about tomorrow? - Land use or feedstock? - 5 7 % CAP on agricultural land?
Implication Example NER300 A big EU program based on trade of 300 million green house gas emission allowances. ( 42 beur) Support all type of RES Renewable Energy Source and CCS Carbon Capture Storage. Cooperation EU COM DG ENVIROMENT and MS. NER 300 Covers extra costs (relevant costs) during start up and pre commercial production compared to ordinary production. Relevant costs
Example of implications for the Industry - NER300 The CEG project in Poland has in December 2012 received 30,9 M in funding from the EC. Positive response from MS to 15 MEUR in additional funding. The total investment in CEG project will be about 152 M plus 10 M in working capital. Interest but uncertain rules makes the investors reluctant. Letter from the MS to the EC for project time schedule update and upfront payment. Due to the status of the project, MS has not signed for financial support. (Hen and egg) Most biofuel project in NER300 has been postponed or withdrawn, mainly due to uncertain rules. (4 of 7)
EU and Governmental support Price premium in Poland and some other countries for local production. Double counting acc. to RED - quota. Green certificate for biogas and electricity from lignin? National production support Example: Proposed Swedish cellulose Biofuel support price guarantee. (FFF-investigation to Government in dec 2013)
Advanced biofuels in Europe in 2020 Jan Lindstedt, Chairman AEBIOM Advanced Biofuels WG / SEKAB AEBIOM European Bioenergy Conference 18 June 2013, Brussels
15 Thermochemical Biochemical Chemical 5 22 4 31 30 24 23 29 7 32 8 6 10 11 12 25 14 28 19 9 13 17 21 27 16 3 26 1 20 2 18 Project name Output Product (tons/year) 1 Chemrec BioDME project 600 DME 2 Chempolis Biorefining Plant 5.000 Ethanol 3 SEKAB Ethanol Pilot Plant 160 Ethanol 4 BALI Biorefinery Borregaard AS 110 Ethanol 5 Weyland 158 Ethanol 6 Biobutanol demo 15 Biobutanol 7 Inbicon (Dong Energy) Demo 4.300 Ethanol 8 BornBio-Fuel 2 BioGasol 4.000 Ethanol 9 SEKAB Demo plant 48.000 Ethanol 10 BioMCN commercial 200.000 Methanol 11 ECN demo 6.500 SNG 12 Futurol Project 142.920 Ethanol 13 Bioliq Project 608 DME 14 Abengoa Arance EC demo 40.000 Ethanol 15 Abengoa Bioenergy 4.000 Ethanol 16 BEST Beta Renewables 40.000 Ethanol 17 Sunliquid Clariant 1.000 Ethanol 18 UPM Lappeenranta Biorefinery 100.000 Biodiesel 19 Bioenergy VERBIO Straw 9.344 Biomethane 20 Ajos BTL Forest BtL Oy 115.000 FT products 21 Stracel Project UPM 100.000 FT products 22 Värmlandsmetanol 100.000 Methanol 23 Bio2G Project 116.800 SNG 24 GobiGas (phase 2) 61.538 SNG 25 Projet Syndièse CEA France 22.000 FT products 26 Domsjö Fabriker Chemrec AB 140.000 (or 120.000) Methanol (or DME) 27 SNG demo Biomassekraftwerk 3.600 SNG 28 PERSEO pilo plant 288 Ethanol 29 INEOS Bio 24.000 Ethanol 31 Maabjerg Energy Concept 60.000 Ethanol 3.000 Biomethane 32 Nordisk Etanol 100.000 Ethanol 30.000 Biomethane 32 Sunpine 100.000 Biodiesel
High expectations of the advanced biofuels sector in 2020 EC proposal for a Directive (COM(2012)595) suggests a 5% cap on crop-based biofuels Estimation of advanced biofuels availability based on the 2020 planned installed capacity Renewable eneryg in transport nreap targets [Mtoe] Biofuels 28,9 Hydrogen 0,0 Renewable electricity 3,1 Other 0,7 Total renewable energy in transport 32,7 [Mtoe] nreap targets - taking into account the proposed 5% cap on crop-based biofuels (COM(2012)595) EU-27 consumption in 2011 (Eurostat, EurObserv'ER) *Biofuels multiple-counted under (COM(2012)595) except algae and used cooking oil Available for consumption in 2020 based on the planned installed production capacity in EU (AEBIOM calculations) Total renewable energy in transport (10%) 32,7 Crop-based biofuels (5%) 16,4 13,2 Hydrogen 0,0 Other 0,7 Renewable electricity 3,1 1,5 Non crop-based biofuels biofuels 12,5 0 3,9* (1,6 without multiple counting) In a business as usual scenario, the advanced biofuels availability in 2020 would not match the quantities needed to reach the nreap targets
Thank you for your attention! Jan Lindstedt Jan.Lindstedt@Sekab.com