biodiesel in the eu 25 current state and future prospects

EBBEuropean Biodiesel Board

EU BIODIESEL MARKETS BIODIESEL CHAINSBucharest, July 28th 2007

Raffaello GAROFALO, EBB Secretary General

BIODIESEL IN THE EU 25CURRENT STATE AND FUTURE PROSPECTS

Raffaello GAROFALOEBB Secretary General

Biodiesel Chains MeetingBucharest, July 28th, 2007

EBB – European Biodiesel Board




Membership

http://www.dow.com/

http://images.google.be/imgres?imgurl=http://www.welding.de/Bilder/logos/oleon.jpg&imgrefurl=http://www.welding.de/cont_addi_verkaufsprogramm.htm&h=203&w=299&sz=21&tbnid=CRCD1e2wu9YJ:&tbnh=75&tbnw=111&hl=fr&start=10&prev=/images%3Fq%3Doleon%26svnum%3D10%26hl%3Dfr%26lr%3D

http://images.google.be/imgres?imgurl=http://www.italianprivatelabel.com/inserts/pict_03/olearia_logo.jpg&imgrefurl=http://www.italianprivatelabel.com/inserts/list_03_4.asp&h=120&w=120&sz=5&tbnid=V3pCxgp2N00J:&tbnh=83&tbnw=83&hl=fr&start=1&prev=/images%3Fq%3Dolearia%2Bolimpo%26svnum%3D10%26hl%3Dfr%26lr%3D%26sa%3DG

http://www.neste.com/default.asp

http://www.acciona-energia.com/site/home.asp

http://www.fediol.be/




2005 production of biofuels in the EU-25Sources: EBB, EBIO

0.75

3.1

0

1

2

3

4

Mt

Bioethanol Biodiesel




EU and Worldwide biodiesel production in 2005(estimate - million tonnes)

0

0.5

1

1.5

2

2.5

3

3.5

EU Worldwide

million

ton

nes

US (0,25)

world (0,3)

EU (3,1)




0

500

1000

1500

2000

2500

3000

3500

1998 2000 2002 2003 2004 2005

GermanyFranceItalyOthers EU-25Total EU

EU-25

EU-15

EU-15

EU-15

EU-15

EU-254,5-4,9 mio tin 2006 ?

EU and Member States’ Biodiesel Production (‘000 t)




What would the Directive’s targets represent in practice?

5,75% Scenario for the EU-25




No real EU internal market

Excise reductions or exemptions Each with a different level of excise and different system of detaxation

With and without quota systems

Mandatory targetsObligation in application: UK, Germany, The Netherlands, Italy,..Obligation under study: Czech Republic, Poland, Spain, …

Policy Mix (detaxation together with obligatory targets)– Austrian law – French “TGAP”




Towards an EU Energy Policy (Commission proposals – January 10th 2007)

“Road Map on Renewable Energies”Mandatory target of 20% for 2020Minimum legal binding target of 10% in every Member State for biofuels

Revision of Directive 98/70 on Fuel QualityReduction of1% of CO² emissions from fuels every year for 10 years as from 2010In practice necessary to increase by 1,5%-1,7% biodiesel consumption every year until 2020 on 2010 basis

Revision of Directive 2003/30 (biofuels)Umbrella Directive on renewable energies to be proposed in the summerMain issues: support policies, policy mix, assessment of CO² impact

Biofuels have a central place in the EU proposal for a Common Energy Policy




Impact of the new proposals and of the Road Map

10% target: in practice 25-28 million tonnes on the market in 2020

Towards the end of national detaxation schemes?

Revision of the Directive on Fuel Quality: strengthens the impact

Positive conclusions of the European Council: now need rapid implementation

Policies and standards to be adapted already in the next months

Necessary to increase (quickly) the % of biodiesel blend in diesel from 5% to 10% (without separate labelling or double grade diesel)




Future biodiesel challengesQuality (also related to raw materials use)

– Pre-condition to any biodiesel success– Announcement: EBB Quality System

Future availability of agricultural raw materials

Biodiesel and biofuels sustainability

Eventual CO² certification of biofuels

International biodiesel trade

Biofuels: “1st generation” vs. “2nd generation”?

Glycerine outlets




5,75% biodiesel targeta possible raw materials scenario

9%5%

8%

63%

2%13%

IMPORTS 1,6 MT ? Animal fats 1,1 MTUFO 0,6 MT

Sun and HOSUN 1 MTOthers 0,2 MT

Rape Oil 8 MT

?TOTAL: 12,5 Million tonnes




Areas under Energy crops in

EU-25:

Only 1/3 of the1,5 million hapotential is exploited

0,00

100 000,00

200 000,00

300 000,00

400 000,00

500 000,00

600 000,00

20042005

Source: Commission DG AGRI




Extension of energy crop aid scheme to all member states

Extension of the crop premium of €45 per hectare to Bulgaria, the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary,Poland, Romania and Slovakia

Maximum area which can benefit from this aid extended to 2 million hectares from 1.5 million hectares




Bases of the future market development of biofuels and biodieselBiofuels certification

THE EUROPEAN BIODIESEL INDUSTRY IS STANDING FIRST TO APPLY A SUSTAINABILITY CERTIFICATION TO THE RAW MATERIAL THAT IT EMPLOYS

Simple clear and universal rules and principles need to be applied

Avoid fragmentation

Avoid burdensome bureaucracy: contrary to aim of decreasing prices

Avoid “food” related labelling consideration: biofuels are distributed via refineries and marketed at fuel pumps not in supermarket shelves




Bases of the future market development of biofuels and biodieselSustainability and environmental impact of biodiesel

BIODIESEL = PALM OIL: A WRONG EQUATION … AND A MISCALCULATION: less than 3% of palm oil imported in the EU becomes biodiesel

Where the “remaining” 97% ends up? > Margarine, biscuits, prepared food, oleochemistry, burning for electricity etc. etc. …

o In the last 5 years imports of palm oil have been doubled from 2,3 to 4,1 million tonnes (not because of biodiesel)

EBB favours the establishment of a certification scheme: but necessary to think about criteria applicable not only to 3% of the uses …. if the intention is really to preserve rain forests

Land use is the real issue




Bases of future market development of biodiesel and biofuelsC0² impact and LCAs

Too many studies exist, often contradictory

Necessary to elaborate a common European reference (for C0² and sustainability)JRC-Concawe-Eucar study: starting point need to become more transparent

What about “second generation biofuels”? Diesel or gasoline substitutes: two very different perspectives

Biofuels have to be compared with other fuels effectively available on the market

How will increasing unconventional oil extraction taken into account?




Pathways for biodiesel development world-wide

Technology progress in FAME production:– FAEE– Recycled fats– Biodiesel from other raw materials (Jatropha, Algae, etc.)– Glycerine use as biofuel (GTBE)

A big opportunity: biofuels in developing countries– A cheaper fuel for remote areas– Social dimension of biodiesel

CONCLUSIONBiodiesel is becoming a world-wide reality

All the issues mentioned before have to be tackled in an international context




For more information please contact:

Raffaello GAROFALO – Secretary General

EBB - European Biodiesel BoardAvenue de Tervuren, 363 – 1150 Brussels

Tel +32 2 763 24 77, email: [email protected]

Or visit the EBB web-site : www.ebb-eu.org

biodiesel in the eu 25 current state and future prospects

Documents