Meeting the 10% Biofuel Target in Germany: A Member State Perspective Birger Kerckow Agency for Renewable Resources (FNR) Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009 Slide: 1
Contents Framework for Biofuels Biofuels in Germany Biofuels Research and Development Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 2
Contents Framework for Biofuels Biofuels in Germany Biofuels Research and Development Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 3
Framework for Biofuels European Union EU Directive 2003/30/EC on the promotion of biofuels Share of biofuels of total consumption: 5,75% by 2010 2008/12/17: European Parliament legislative resolution on the proposal for a directive on the promotion of the use of energy from renewable sources 10% share of fuels from renewable sources of total fuel consumption by 2020 1st and 2nd generation biofuels, hydrogen, electricity 35% GHG emission reduction (2017: 50% GHG emission reduction) Sustainability criteria Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 4
Framework for Biofuels Germany - Status Quo Biofuels Quota Law Energy Tax Law Since 08/2006 increasing taxation of pure biofuels Tax free: Synthetic biofuels and Bioethanol as E85 (until 2015), Biofuels used in agriculture and forestry Overcompensation monitoring and reporting Federal Immission Control Act (Biofuel Quotas) Since 01/2007 biofuel quotas for: Producers and traders of diesel fuel and gasoline Producers of biofuels (biodiesel, vegetable oils) Quotas based on energy content Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 5
Framework for Biofuels Germany - Status Quo Taxation of Biofuels in Germany Year Tax rate biodiesel (Cents/l) Tax rate vegetable oil (Cents/l) 2006 9 0 2007 9 2,15 2008 15 10 2009 21 18 2010 27 26 2011 33 33 From 2012 45 45 Overcompensation reporting; revisions possible Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 6
Framework for Biofuels Germany Status Quo Biofuel Quotas in Germany Year Overall quota Diesel quota Gasoline quota 2007-4,40% 1,20% 2008-2,00% 2009 6,25% 2,80% 2010 6,75% 3,60% 2011 7,00% 2012 7,25% 2013 7,50% 2014 7,75% 2015 8,00% Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 7
October 2008 Biofuels Proposal (BT-Drs. 16/11131) Reduction of the increase in the quota for bioethanol as well as the overall quota for biofuels Reduction of the effective increase in the energy tax for pure biodiesel Inclusion of biomethane From 2015, the calculation basis for the biofuels quota will switch from energy content to net greenhouse gas emission savings Soybean oil or palm oil based biofuels excluded from benefitting from the quotas and any tax incentives until the German sustainability criteria for biofuels will be in effect (Biomass Sustainability Ordinance) Exclusion of biofuels subsidised elsewhere (B99) Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 8
October 2008 Biofuels Proposal II Notification to the EU 17 Oct 2008 3 months standstill Comments from Austria (minor) and Finland (major) New standstill period until 19 Oct 2009 Comments from EC: - ongoing legislation process on EU level - contradiction with draft EU legislation regarding biomethane (only GHG calculation for conversion), soybean oil and palm oil (discrimination) Possibly new light version incorporating EU comments EU-RED: Biofuels from waste, residues, non food cellulosic material, and lignocellulosic material will count twice for RES transport target What will happen in 2015 (change from quota to GHG reduction)? Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 9
Biofuel sustainability ordinance (BSO) Published in December 2007 Notified to EU; standstill until Dec 2008 Currently revised according to RED (EP-version) Issues in comparison to RED: - different default values (wastes, residues!) - RED requirements for imported biomass/fuels lower than for EU feedstocks - RED only minimum GHG reduction, BSO accounting of biofuels on quotas according to GHG reduction Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 10
New support measures for biofuels Proposed quotas (energy content) Current legislation Proposal Year Overall quota (%) Biodiesel (%) Bioethanol (%) Overall quota (%) Biodiesel (%) Bioethanol (%) 2009 6.25 4.4 2.8 5.25 4.4 2.8 2010 6.75 4.4 3.6 6.25 4.4 2.8 2011 7.00 4.4 3.6 6.25 4.4 2.8 2012 7.25 4.4 3.6 6.25 4.4 2.8 2013 7.50 4.4 3.6 6.25 4.4 2.8 2014 7.75 4.4 3.6 6.25 4.4 2.8 2015 8.00 4.4 3.6 Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 11
New support measures for biofuels Proposed quotas (GHG emission savings) 7% GHG emission savings correspond to 12% biofuels share (energetic) First proposal (August 2007): 10% GHG emission savings (correspond to 17% biofuels share) Main reasons for the reduction: Food or tank debate EU targets (proposal: 10% in 2020) Year Quota (GHG saving) Quota (energy content) 2015 3% ca. 5% 2017 4.5% ca. 7.5% 2020 7% ca 12% Meeting the EU target Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 12
The 10% Target Technical Issues (Examples) We can not achieve the target of 10% with existing fuel quality standards (B7 and E5), but Market for pure biofuels is drying up High biodiesel blends (B20): exhaust gas particle filters may cause a dilution of the engine lubricant E10: at least 3 Mill passenger cars are not suited for E10 BtL: suitable fuel but no large scale processes available today The 10% target will require huge R&D efforts and amendments to the fuel quality standards Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 13
Technical Fuel Quality Standards European level: Biodiesel B100 (EN 14214) Biodiesel B7 (Draft EN 590) Bioethanol E85 (in preparation, based on CWA 15293) Bioethanol E5 (EN 228) Bioethanol as a blending component for petrol (EN 15376) Germany: Biodiesel B7 (DIN 51628) Bioethanol E85 (DIN 51625) Bioethanol E10 (DIN 51626-1, expected in 03/2009) Biomethane (DIN 51624) Rapeseed oil (Draft DIN 51605) Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 14
Contents Political Goals and Biofuel Targets Biofuels in Germany Biofuels Research and Development Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 15
Fuel Consumption Germany 2007 Consumption: ca. 53 Mill Tons Biofuels: 7.3% (energetic) GHG savings: ca. 15 Mill Tons Diesel 27 640 000 t 52.5 % Petrol 20 840 000 t 40.1 % Vegetable oil 838 000 t 1.4 % Biodiesel 3 320 000 t 5.4 % Bioethanol 460 800 t 0.5 % Source: BAFA / BMU/ FNR Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 16
Biodiesel in Germany 2007 production capacity sales production 6.000 blending ca. 1 423 000 t automobiles (public filling stations) ca. 96 000 t trucks (public filling stations) ca. 360 000 t 5.000 4.000 3.552 4.390 4.847 3.000 source: BAFA/ AGQM agriculture ca. 90 000 t trucks (privat filling stations) ca. 1 350 000 t 2.000 1.000 266 507 850 1.106 1.238 1.976 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Potential for use of biodiesel in agriculture! source: UFOP/ AGQM/FNR Estimated capacity 2008: 4.85 mio. t Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 17
Bioethanol in Germany 2007 Production Production capacity: ca. 760 000 m³ Production: ca. 400 000 m 3 5 large-scale bioethanol plants Ca. 1 000 distilleries with a capacity of 850 000 m 3 Production capacity ETBE: 0,6 mio. t Consumption Bioethanol consumption (transport sector): 580 000 m³ (460 000 t) ETBE blending 366 300 t => 79.5 % Ethanol - E85 6 100 t => 1.3 % Ethanol blending (E5) 88 500 t => 19.2 % Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 18
Pure Vegetable Oils in Germany 2007 Production capacity 2007: 7.5 mio. t seed per year Consumption (fuel) 2007: Ca. 800 000 t (trucks and agriculture) Decentralised oil mills (2008: >500) Industrial oil mills with > 12.000 tons seed/a (2006: 45) Source: UFOP 2006 Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 19
Contents Political Goals and Biofuel Targets Biofuels in Germany Today Biofuels Research and Development Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 20
Potential of Biofuels in Germany Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 21
Biofuels - Range per Hectare Biomethane Vegetable oil *Biomethane from by products (e.g. straw, oil cake) Fuel consumption: Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 22
Long term biomass potentials Energy carrier Wood Annual and perennial energy crops (2,5 5 Mio. ha) Grassland (1 Mio. ha) Straw Manure Other bio residues Total Gross energy potential 300 400 PJ 450 1.150 PJ 100 PJ 275 PJ 90 PJ 185 PJ 1.400 2.200 PJ* * 15,8 % of current primary energy consumption in Germany (13.878 PJ 2007). With decreasing energy consumption, the bioenergy share could be even higher Source: draft national Biomass Action Plan Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 23
R&D Support in the Field of Biofuels Focus: Breeding, cultivation and logistics of energy plants (raw material supply) Improvement of biofuel production (1st generation) Further development of synthetic biofuels (2nd generation) BtL 51% Others 13% Measurement and reduction of emissions Biofuel blending Biomethane 1% Bioethanol 1% Vegetable Oils 5% Biodiesel 1% Raw material supply 28% Biomass certification Funding of ongoing projects: ca. 27 Mio. Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 24
Advanced German BtL Activities CHOREN beta -plant in Freiberg/Saxony bioliq-process stage 1 Forschungszentrum Karlsruhe Source: Choren Source: Forschungszentrum Karlsruhe Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 25
BtL - Need for Action 1. Biomass conditioning for high pressure gasification (~ 100 bar) hydrothermal conversion 2. Closing the nutrient cycle nitrogen, phosphor, potassium 3. Gasification 4. Gas conditioning Hot gas filtration Recovery of agricultural nutrients 5. Synthesis Increasing efficiency Solving the hydrogen problem when using biomass Realisation of R&D projects Transformation into pilot- and demonstration plants Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 26
The International Sustainability and Carbon Certification (ISCC) Project addresses sustainability concerns in a globally oriented approach customers NGOs Need for sustainable bioenergy laws media International Board* to direct supports management** *: to be established **: building the system and initial management Operation and endorsement of reliable certification schemes allowing for the differentiation between sustainable and non sustainable bioenergy Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 27
Conclusions 10 % target is ambitious and will require huge R&D and investment efforts Pilots and demonstration plants for fuels from lignocellulosic biomass and residues Developing effective cultivation and conversion methods Political and societal support for biofuels will depend on proof of sustainability Sustainability has to be addressed throughout the value chain and especially within agriculture and/or forestry If sustainability issues are adequately addressed biofuels can make an important contribution to a more sustainable energy system as a whole Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 28
Thank You for Your Attention! Hofplatz 1 18276 Gülzow Tel: 03843/6930-125 Fax: 03843/6930-102 E-Mail: b.kerckow@fnr.de Internet: www.fnr.de Bioenergy Workshop, Kiel Institute for the World Economy 09 February 2009, Slide: 29