Tallin, 07.10.2005

Sources of energy from agricultural crops

in Poland

Tallin, 07.10.2005

Conspect

• Introduction• Polish Energetic Policy• Renewal sources of energy• Biomass availability for energy purpose• Payments for energy crops• Regulations for liquid biofuels• National indicative target• Conclusion

Tallin, 07.10.2005

Introduction

• Energetic Policy of EU

White Paper – 1997

share of renewable sources of energy

- 12% in 2010

- 20% in 2020

Fuel and energy balance

- 7,5% in 2010

Tallin, 07.10.2005

Polish Energetic Policy

• 04.01.2005 – Polish Energetic

Policy until 2025 (objectives, priorities)

• 09.12.2004 – Obligations for purchasing energy from renewal sources

3,1% in 2005 => 9% in 2010

Tallin, 07.10.2005

Polish Energetic Policy

• Needed to comply the goals

- increase of energetic crops area up to 160-200 thousand ha in 2010

(1,2-1,4% of whole arable area)

- lack of domestic market products => infrastructure development

- stability of supplies

Tallin, 07.10.2005

Biomass availability for energy purposes

• Stocks

- overage surplus of non used 6-8 mln tones of cereal straw = 3-4 mln tones of coal / year

- potential production – 470 mln litres

- used 10-15%

- marginal: by-products, wastes and other production

Tallin, 07.10.2005

Payments for energy crops

• SAPS (Single Area Payment System)

- no aid for energetic crops

- possibility of national grants for 1000 ha up to 55,46 Euro/ha (possibility of reduction)

- Ordinance of MRiRW - conditions

Tallin, 07.10.2005

Payment for energetic crops

• SPS (Single Payment Scheme)

- aid for energetic plants (RR 1782/2003 chapter 5)

- 45 Euro/ha of energetic plant

Tallin, 07.10.2005

Liquid biofuels - regulations

• Directive 2003/30/EC

- 2% of renewal energy by energetic content in fuels to the end of 2005

- 5,75% to the end of 2010

Tallin, 07.10.2005

Market situation

• Biofuel companies

in transport fuel market

- 17 companies – bioetanol possibility 471,6 mln l/year

- 10 companies – esters possibility

166,4 mln l/year and growing

Tallin, 07.10.2005

Bioethanol production

% 27% 24% 14% 11% 35% 29%

0

200 000

400 000

600 000

800 000

Fuel 159 073 168 751 84 658 71 527 275 334 200 626

Total 600 725 702 742 626 742 660 113 782 319 690 150

I 04 II 04 III 04 IV 04 I 05 II 05

Tallin, 07.10.2005

Bioethanol production

• In 2004 use ~10% existing production power

• 5% Import to Poland

• 2004 – 48,5 mln litres reached fuel market (19% of total production)

• 2005 – 60 mln litres will reach fuel market (prediction)

Tallin, 07.10.2005

Bioethanol production raw materials

• Cereals – low market prices

Period cereals molasses potatoes fruits other Total Cereals %

I quarter 2004 36,9 16,5 2,3 0 1,2 56,9 65%

II quarter 2004 22,2 10,5 2,2 0 1,7 36,6 61%

III quarter 2004 36,0 7,1 1,2 0 1,4 45,7 79%

IV quarter 2004 44,7 4,2 3,1 0 1,0 53,1 84%

Total 2004 r. 139,9 38,4 8,8 0 5,3 192,4 73%

I quarter 2005 55,8 5,7 3,0 0 2,3 66,8 84%

II quarter 2005 47,9 6,9 2,3 0,2 2,8 60,2 80%

Tallin, 07.10.2005

Bioethanol production raw materials

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

I quarter2004

II quarter2004

III quarter2004

IV quarter2004

I quarter2005

II quarter2005

cereals other than cereals

Cereals % 65% 61% 79% 84% 84% 80%

Tallin, 07.10.2005

Esters production

• Development stage• 110 thousands tones / year • Still more expensive than traditional liquid fuel• Excise tax exemption for each litre of

biocomponents added to fuel

- 2 - 5% 1,5 zloty (~ 0,35 Euro/l)

- 5 - 10% 1,8 zloty (~ 0,45 Euro/l)

- > 10% 2,2 zloty (~ 0,55 Euro/l)

Tallin, 07.10.2005

Indicator of biofuels in transport

• according to energetic value

Year Petrol thousand tonnes

Diesel oil thousand tonnes

Bioethanolthousand

tonnes

Indicator

2000 4 841 2 343 40,55 0,35%

2001 4 484 2 562 52,39 0,46%

2002 4 109 2 940 65,33 0,57%

2003 3 941 3 606 60,12 0,49%

2004 3 953 3 886 38,27 0,30%

Tallin, 07.10.2005

National Indicative target for biofuels in transport

• Nat. indicative target for 2005 0,5%

• Nat. indicative target for 2006 1,5%

• Plan to issue new Ordinances:

- quality requirements for biocomponents

- quality for esters that content 10 – 30%

Tallin, 07.10.2005

Conclusion

• Directive 2003/30/WE – chance for agriculture (raw materials production)

• Approximately area (if only) of cereals for bioethanol production: 2005 – 56 000 ha, 2006 – 167 000 ha, 2010 - 640 000 ha

• Approximately area (if only) of rape for esters production: 2005 – 34 000 ha,

2006 – 102 000 ha, 2010 - 340 000 ha

Tallin, 07.10.2005

Thank You

for attention

Contact:

www.minrol.gov.pl

Stanislaw.stelmachowski@minrol.gov.pl

Jaroslaw.wesolowski@minrol.gov.pl