The European Biofuels Scene LU Biofuels Day 29 May 2015 Lund, Sweden Rainer Janssen WIP Renewable Energies, Germany WIP Renewable Energies was founded in 1968 (47 years) to support infrastructure projects (in developing countries) is an interdisciplinary private institute for the development and promotion of renewable energy projects bridges the gap between research and implementation of renewable energy systems Sweet Fuel 1
Bioenergy Books, Handbooks & Publications Content Introduction European Policies (to 2020) European Policies (beyond 2020) European Biofuels Markets Advanced Biofuels EC Support Schemes Outlook 2
1. Introduction Policy Drivers for Biofuels Climate change (reduction of GHG emissions) Security of energy supply (reduction of fossil fuel import dependence; limited crude oil reserves; increasing (!) crude oil prices) Green jobs and innovation (rural development) 3
Greenhouse-gas (GHG) Emissions 4
2. European Policies (to 2020) EU Climate and Energy Package (June 2009) The 20-20-20 Targets Binding targets by 2020-20% -20% 100% +20% Subtarget: 10% RE in transport Greenhouse gas levels Energy consumption 8,5% Renewables in energy mix 5
Renewable Energy and Fuel Quality Directives RED - Directive 2009/28/EC, 5 June 2009 1. Sets mandatory national targets for renewable energy shares, including 10% renewables in transport (incl. biofuels) in 2020 Biofuels from wastes, residues, non-food cellulosic material, lignocellulosic material count double towards targets (Article 21) 2. Requires national renewable energy action plans (NREAPs) 3. Creates a sustainability regime for biofuels (criteria for economic operators, monitoring for the Commission) Fuel Quality Directive (FQD), Directive 2009/30/EC, 23 April 2009 Fuel suppliers must reduce fuel GHG-intensity by 6% in 2020 (efficiency in fossil fuel chain, biofuels, alternative power trains) Sustainability Criteria in RED 6
Sustainability Criteria and Standards GBEP: Global Bioenergy Partnership (www.globalbioenergy.org/ bioenergyinfo/bioenergy-and-sustainability/en/) RSB: Roundtable on Sustainable Biomaterials (http://rsb.org/) ISCC: International Sustainability and Carbon Certification System (www.iscc-system.org) Standards for specific agricultural products RSPO: Roundtable for Sustainable Palm Oil RTRS: Roundtable for Responsible Soy BSI: Better Sugarcane Initiative 3. European Policies (beyond 2020) 7
2030 Framework for Climate and Energy (agreed on 23 October 2014) Targets for 2030 40% cut in greenhouse gas emissions compared to 1990 levels At least 27% share of renewable energy consumption (binding on EU level) 30% improvement in energy efficiency No sub-target on renewable energy in transport (e.g. biofuels)! Policies for 2030 Reformed EU emissions trading scheme (ETS) New governance system based on national plans for competitive, secure, and sustainable energy Future of biofuels development will depend on Member State actions and priorities! Background: (Indirect) Land Use Change LUC - Direct Land Use Change: e.g. when feedstocks are grown on land that was previously forest ILUC Indirect Land Use Change: when biofuel production displaces the production of other commodities, which are then produced on land converted elsewhere (perhaps in another region or country) Direct land use change ILUC Sustainable production http://www.ecofys.it/com/areasofexpertise/renewable_energy_ technologies/indirect_impacts_ofbiofuels_production_explained.htm 8
ILUC GHG Emissions (IFPRI Study) Fossil fuel comparator (RED, FQD default value): 83.8gCO 2eq /MJ ILUC Factors Revised RED (Annex V) Revision of RED ( ILUC Directive ) New legislation approved by European Parliament on 28 April 2015 Cap of 7% on the contribution (to 2020 targets) of biofuels produced from food crops to mitigate ILUC emissions No public support for food crop based biofuels post 2020 Encouragement of the transition to second and third generation ("advanced") biofuels National (non-binding) sub-targets for advanced biofuels based on a reference value of 0.5% List of feedstock for advanced biofuels that count double towards target Multiplication factor of 5 for electricity from renewable sources in electric road vehicles and of 2.5 for electrified rail transport ILUC reporting on GHG emission savings from the use of biofuels by the Commission (no ILUC factor in GHG calculation) 9
4. European Biofuels Markets EU-28 Biofuels Consumption 2013 Biofuels incorporation rate: 4.7% Decrease: 6.8% to 2012 2010 Target: 5.75% ~13,6 Mtoe 2020 Target: < 10% Decreased incorporation rate: Spain, Germany Increased incorporation rate: UK, Sweden, Denmark Stable: France, Belgium, Austria Source: EurObserv ER 2014 10
EU-28 Biofuels Consumption EU-28 Biofuels Consumption Biofuels in Germany Biodiesel: Production Consumption Production capacity 11
Biofuels Consumption in Germany 5. Advanced Biofuels 12
Thermochemical Value Chains Source: European Industrial Bioenergy Initiative (EIBI) Biochemical Value Chains Source: European Industrial Bioenergy Initiative (EIBI) 13
Alternative Aviation Fuels Source: Johannes Michel, FNR L.EtOH Inbicon L.EtOH Borregaard Operational Advanced Biofuels Facilities (demo & commercial) - Europe L.EtOH Chempolis Neste Oil BioMCN L.EtOH Clariant Neste Oil L.EtOH Abengoa Source: D. Chiaramonti L.EtOH M&G/Chemtex Biomassekraftwerk Güssing 14
Production Facilities Oleo chemical Facilities Biochemical Facilities Thermochemical Facilities Mapping of advanced biofuels projects by IEA Bioenergy Task 39: http://demoplants.bioenergy2020.eu EBTP (http://biofuelstp.eu) Source: Dina Bacovsky, Bioenergy2020+ Production Capacities of Advanced Biofuels tons/year Source: Dina Bacovsky, Bioenergy2020+ Biofuels consumption (2013) Bioethanol: 2.7 mio toe (1t = 0.6449 toe) 4.2 mio t Biodiesel: 10.75 mio toe (1t = 0.8837 toe) 12.2 mio t 15
6. EC Support Schemes EC Support to Advanced Biofuels Horizon 2020 WPs alignment Strategic Energy Technology (SET) Plan (technology pillar of EU c&e policy) October 2010: Launch of European Industrial Bioenergy Initiative (EIBI) 16
NER Projects - Advanced Biofuels Source: Dina Bacovsky, Bioenergy2020+ SET Plan Revision - SERIGs SERIG: Strategic Energy R&I Groups Link between the SET Plan Steering Group and the R&I community Representatives from EC, Member States, stakeholders (industry, R&I) 17
7. Outlook Outlook Critical Market & Deployment Issues Legislation gives low certainty on renewable (biofuels) premium over fossil fuels Difficult project financing No RED targets for (advanced) biofuels beyond 2020 Lack of investment security Potential policy measures Mandatory sub-targets (2%) for advanced biofuels Implementation of a clear growth path for advanced biofuels (beyond 2020 to 2025/30) 18
Thanks for your attention! Contact Rainer Janssen WIP Renewable Energies Sylvensteinstrasse 2 81369 Munich, Germany Rainer.janssen@wip-munich.de 19