BEE

BEE

Dipl.Dipl.--Ing.Ing. Johannes LackmannJohannes Lackmann

PresidentPresident

German German RenewableRenewable EnergyEnergy FederationFederation (BEE)(BEE)

Strategy for Biomass and Biofuels

BEEShare of Renewable Energy on German Fuel Consumption(mainly based on domestic production capacities)

4 %

7,50 %

3,80 %

0,50 %0,05 %

0

2

4

6

8

10

1990 1995 2000 2005 2007

%Development of Biofuels in Germany

Sources: Association of German Biofuel Industry (VDB), Working Group on Renewable Energies Statistics (AGEE-Stat)

BEEPotential of biofuel in Germany

Until 2050, more than 75% of fuel consumption in Germany could be covered by biofuels and electro mobility. In 2050, 2.8 million ha of land and 15 million tons of straw and crop residues will be needed. This would compare to 16.5% of agricultural land and 50% of straw and crop residues in Germany.

Source: German Renewable Energy Federation (BEE)

BEEPotential of biofuel in Europe

*

* With a strong efficiency strategy the huge increase of the total fuel demand predicted in the study of the European Commission “EU 25 - Energy and transport outlook to 2030”can be avoided.

Until 2050, more than 70% of fuel consumption in Europe could be covered by biofuels and electro mobility. In 2050, 40 million ha of land and 100 million tons of straw and crop residues will be needed. This would compare to 25 % of agricultural land and 50% of straw and crop residues in Europe (EU 25). Source: German Renewable Energy Federation (BEE)

BEEExisting and Required Biodiesel-Capacities in Europe (Mio. t)

2,202,50

3,204,10 4,25

5,95

7,75

9,55

11,50

13,45

2002 2003 2004 2005 2006 2007 2008 2009 2010

EU

-Goa

l: 2

,00%

EU

-Goa

l: 2,

75 %

EU

-Goa

l: 3,

50 %

EU

-Goa

l: 4,

25 %

EU

-Goa

l: 5,

00 %

EU

-Goa

l: 5,

75 %

Existing Capacities

Required Capacities

Source: VDB e.V.

BEEBioenergy in Europe

Efficient use of biomass

• Cogeneration: Electricity & heat production(biogas, wood)

• Biofuel production (energy crops)

BEECogeneration: OTAG Powerblock

Otag lion

• combined heat and power unitfor 1-2 family houses, basedon steam process technology

• fuel use up to 98.5 %

• efficiency electricity: 0,2 – 3,0 kW

• efficiency thermal: 2 – 16 kW

• operated with natural gas orliquid gas presumably in 2007 with wood pellets

Source: www.otag.de

BEENecessities for the development of biofuels in the EU

• Until 2010, biofuels share must be increased to 5.75% (realization of Directive 2003/30/EC).

• Mandatory targets for the time beyond 2010 have to be fixed: until 2020, 25% of total consumption must be covered by biofuels (cf. “Report of the European Parliament on the share of renewable energy in the EU and proposals for concrete actions, 2005). Fuels for aviation should be included in the quota.

• Second generation biofuels have to be further developed. However, in a short term perspective, no big quantities will be available. Second generation biofuels (with the exception of ethanol and lignocelluloses) have some major disadvantages: Closed feedstock cycles are not feasable, because minerals have to be treated in high temperature processes so that further use is not possible.

BEENecessities for the development of biofuels in the EU

• Because of these shortcomings, further and increased use of first generation biofuels is necessary!

• Land use potentials for these biofuels have not yet been exhausted. Biofuels of the first generation have a high reduction potential of greenhouse gas emissions, if Co-products are considered and efficient processes are used.

• Land productivity can even be increased by biogas/biomethane, because biogas yields per hectare are much higher than the respective yields for biodiesel and Bioethanol. Biomethane can be distributed through the Natural Gas Grids or be use in captive fleets.

BEEBiofuels – energy output per hectare

Sources: ethanol from crop: own calculation according to Schmitz 2005, biodiesel according to IFEU 2003 & 2002, DIW 1998, vegetable oil according to IFEU 2002, biomethane according to WI, IE 2005; BTL: according to IFEU 2005, Choren 2005, IE 2005, ethanol from lignocellulose according to Schmitz 2005, IFEU 2005, Iogen, IE 2005

BEEBiofuels – Greenhouse Gas Reduction

Sources: ethanol from crop: own calculation according to Schmitz 2005, biodiesel according to IFEU 2003 & 2002, DIW 1998, vegetable oil accordingto IFEU 2002, biomethane according to WI, IE 2005; BTL: according to IFEU 2005, Choren 2005, IE 2005, ethanol from lignocellulose according to Schmitz 2005, IFEU 2005, Iogen, IE 2005

BEEBiofuels – Greenhouse Gas Reduction

Sources: ethanol from crop: own calculation according to Schmitz 2005, biodiesel according to IFEU 2003 & 2002, DIW 1998, vegetable oil accordingto IFEU 2002, biomethane according to WI, IE 2005; BTL: according to IFEU 2005, Choren 2005, IE 2005, ethanol from lignocellulose according to Schmitz 2005, IFEU 2005, Iogen, IE 2005

BEEBlending quotas and electric cars

• Higher blending quotas – 10% for biodiesel and 10% for Bioethanol – should be reached through changes in standards for transport fuels.

• In addition to biofuel use, the share of renewable energies in transport can also be increased by power driven vehicles. This applies especially for regions in the EU with a comparatively limited biomass potential. Hybrid cars are an interim step towards electromobility.

BEEEfficiency strategy

• Efficiency potentials need to be urgently exploited, because more efficient technologies are already economically viable today.

• The example of hybrid cars shows that one litre of fuel can be saved at costs of less than 35 cents, which is much less than the fuel cost (some 50 cents/litre before taxes). Compared to biofuels support, this also brings about huge economical savings.

• With a strong efficiency strategy the huge increase of the total fuel demand predicted in the study of the European Commission “EU 25 - Energy and transport outlook to 2030” can be avoided.

BEEEfficiency strategy

Examples for an efficiency strategy:- Mandatory CO2 limits for enterprises in automobile industries (less than 140g of CO2, gradually further decreasing), biofuel quota could be attributed.- Enterprises not fulfilling their quota will have to compensate for the failure (e.g. by special support for biofuels).

BEEMix of instruments

A mix of instruments is necessary for an efficient support of biofuels:Blending quota alone would enable mineral oil trusts to choose where to purchase biofuels. This will lead to an increase of imports and also to an increase of production of the cheapest biofuels which are presently available (bioethanol form sugar cane and biodiesel from palm oil). However, palm oil production implies particularly high environmental damage and social problems (deforestation and use of pesticides).

BEEMix of instruments

• Blending quota alone would is more favourable for the big mineral oil companies than for SME and thus limits competition.

• The market for pure biofuels has to be maintained because of its high importance for public awareness. This is not only true for biodiesel filling stations in Germany, but also for bioethanol stations in Sweden, where consumers deliberately decide to buy biofuels.

BEEMix of instruments

• Tax exemption alone will not be a sufficient incentive for bioethanol production, because mineral oil companies will take decisions in relation to their opportunity costs. That is why they will be reluctant to use ethanol, as they already have exceeding capacities in petrol production which would increase by bioethanol use. Consequently, a quota for bioethanol is necessary.

BEEMix of instruments

• A possible solution for decreasing tax yields through tax exemptions for biofuels could be not to simply abolish tax exemption but to differentiate taxation. Losses resulting from exemptions for biofuels must be compensated by higher taxation for conventional fuels.

• European Harmonization for biofuel taxation is urgently needed to prevent “filling station tourism” (harmonization should also apply to aviation fuels).

BEESustainability standards for biofuels

• Sustainability standards for biofuels are necessary and should be discussed with environmental NGOs.

• Biofuel production not complying with these standards should no longer benefit from tax exemptions and should not be attributed to quotas to be fulfilled.

BEE

contactcontact

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