www.balticbiogasbus.eu1 climate change, driving force for biofuels regional seminar tartu 23-24 of...

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Climate Change, driving force for biofuelsRegional Seminar Tartu

23-24 of March 2011Lennart HallgrenProject Manager

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■ Climate Change■ Peak Oil■ Energy security■ Diesel shortage■ Air Quality■ Congestion■ Increase of

transportation■ …

Drivers for Sustainable Transports www.balticbiogasbus.eu

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Global Climate change

• Climate is one of humanity’s biggest challenges

• Huge commitments have to be made globally to reduce green house gases

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Climate change. Carbon dioxide

• Concentration of CO2 in the atmosphere is the highest for more than thousand years

• It is growing fast • Main causes are

burning of the fossil fuel, cutting of forests ......

The oil age – in perspective

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Global Warming• During the last

century global temperature has risen continuously

• Year 2010 one of the warmest ever

• Glaciers melts away• water level increases • Climate related

catastrophes increases

• Flooding• Heat waves ……..

Interrelation of Atmospheric CO2 - Temperature

375 ppm (now)

700 ppm (2100)

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Glaciers of Greenland and South Pole have shrunk in volume and size.

Photo: Richard Ryan/Stockholm Visitors Board

Oil dependency and COOil dependency and CO22 causes: causes:

Environmental problems!Environmental problems!

Problems with security and supply!Problems with security and supply!

Financial problems!Financial problems!

Not only an Not only an Environmental problem!Environmental problem!

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■ Climate Change■ Peak Oil■ Energy security■ Diesel shortage■ Air Quality■ Congestion■ Increase of

transportation■ …

Drivers for Sustainable Transports www.balticbiogasbus.eu

Source: Uppsala University 2004-06-16

“By 2025, we need to find, develop and produce a

volume of “new” Oil & Gas that equals 8 out of

every 10 barrels produced

today.”

“The world needs new oil fields!” ExxonMobil

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■ Climate Change■ Peak Oil■ Energy security■ Diesel shortage■ Air Quality■ Congestion■ Increase of

transportation■ …

Drivers for Sustainable Transports www.balticbiogasbus.eu

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Transportation, a large-scale green house driver

• The transport-sector accounts for 70 % of CO2 emissions

• Congestion and local emissions

Drivers for Sustainable transportEnergy Security, shortage of diesel & End of

Cheap Oil

? Sou

rce: U

ppsala Un

iversity

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■ Finding local energy solutions is a very important driver for nations, cities, Regions, and companies

■ Advantages with local biofuels■ Local production

■ Job opportunities■ local energy security■ replacing oil dependency

■ Stable, long-term contracts for fuel supply and price of fuel possible for operators

A driver for sustainable transportLocal energy security

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Scientists and oil industry agree that there will be a shortage of oil in the near future;

Oil price likely to be sluggish and high Cost of emissions rights in industrial/energy

sector is booming;

CO2 taxes, km-taxes, etc;

It will cost you to be oil addicted and to cause fossil CO2 emissions!

Financial problems

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Are you a part of the problem?Or a part of the solution?

Climate Change

Oil & Energy Security Congestion

Air Quality

We need Sustainable Transports

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Strategically and financially very important for everyone dependent on fuels to secure the supply of renewable fuel!

Strategic long term decisions

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Only 3 ways to reduce oil dependency and fossil CO2 from transportation! Curb the uncontrolled Curb the uncontrolled

growth of transportgrowth of transport

Increase energy Increase energy efficiencyefficiency

Increase the use of Increase the use of renewable fuels, renewable fuels, biofuelsbiofuels

Renewable Fuels……but which one?

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Parameters to consider

• Potential to reduce local and global emissions

• Quality

• Availability, scale standardisation

• Economy

• Security of supply

• Future production potential?

• Ethics, labelling, certificate of origin etc. – Competition with food, energy

supply, medicines, – Biodiversity

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Local Emissions(PM, NOx)

Global effect (CO2)

Petrol (electric hybrid)

CNG

Biodiesel

Petrol

Diesel

Biogas

LPG

elec-tricity(EU mix)

E85E 95

H2, elec-tricity

(water power)

3 commercial sustainable biofuels

Biogas•Local waste to fuel

•Good for local fleets

•Can be combined with CNG

•Expensive infrastructure

•CO2 reduction > 95 %

Biodiesel• Many feedstocks• Similar to diesel• Fuel quality issues• Not for infrequent

use• High and low

blends

• CO2 reduction 38 %

Ethanol• 90 % of World´s

biofuel• Local and global

fuel• Sustainable

volume production• Stable fuel

• CO2 reduction 71 %

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The benefits of biogas

• Biogas is the most renewable biofuel today

• waste products from households, restaurants, farms and sewage treatment plants

• similar to natural gas (CNG) but renewable

• locally produced Xxxxxx

Clear political ambitions and targets is necessary as a foundation for the planning

In Stockholm Visions and Targets are set by the politicians in the County Council and the board of SL:– All train traffic shall use

electricity from renewable sources

– January 1st 2012, 50 % of SL buses shall use renewable fuels

– January 1st 2026 all SL traffic should be 100 % free from fossil fuels

National Biogas Strategy

• Long-term national vision

• Estimation of national biogas/biomethane production and market potential

• Set national targets (10-20 year)

• Incentives to reach targets

National Biogas Strategies (Taxation)

• Higher energy tax on fossil fuels

• Higher C02 tax on fossil fuels

• Tax exemption on renewable fuel (e.g. Biomethane)

• Tax exemption on bio-fertiliser

National Biogas Strategies (Subsidies)

• Investment support for Biogas plants

• Investment support for Biomethane infrastructure, e.g. biogas grids, filling stations

• Eco-car subsidies

• Other ?

Regional and Municipal Biogas Strategies (Regional and Municipal incentives)

• Environmental requirements in transport precurement (Taxi and mobility service)

• Requirement on eco-cars in all procurements

• Free parking for eco-cars in city areas

• Municipal investment in Biogas and Biomthene plants and infrastructure

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Renewable fuels in Sweden

0

50000

100000

150000

200000

250000

300000

350000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

Del

iver

ed m

3

Fordonsgas FAME E85

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Number of Gas Vehicles in Sweden

0

10000

20000

30000

40000

1995 2000 2005 2010

Personbilar

94 %

Tunga fordon/bussar 6 %

32.000 Vehicles 2010, 40% up from 2009

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Sales of Gas in Sweden

0

20

40

60

80

100

1995 2000 2005 2010

Naturgas Biogas

miljoner Nm3

Total

60 milj Nm3 Biogas 2010, up 35%

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Baltic Biogas Bus Project

Thank you for your attention

Lennart Hallgren, Stockholm Public Transportlennart.hallgren@sl.se