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Impact of the ILUC discussions on the development of advanced biofuels
SEKAB SUSTAINABLE GREEN CHEMISTRY SOLUTIONS
2014-05-13, AEBIOM EUROPEAN BIOENERGY CONFERENCE
ILUC – Indirect Land Use Change
1 Ha of barley used for
horse or cattle feed.
How to replace?
The same amount of
feed from Brazil. Will
that cause rainforest
cutting?
Set aside: 600 000 ha
in Sweden and
11 million in EU
Extra CO2 emission
based on the
calculations.
Not considered to
reduce the use or
make the food
production line
more effective.
Waste and cellulosic
material are not included
ILUC
- ILUC proposals from EC 2012 – 2013.
- Several modified proposals during the last year - together with changes in RED.
- Reporting from 2017 and rules from 2020.
- Default values.
- Definition on feedstocks. (?)
- No agreement at the end of 2013.
- Rumors of Greek activities spring 2014.
State aid guidelines.
- The state aid rules approved a month ago.
- Instead of “oil, sugar and starch crop” the definition is now “food based biofuels”. No specification is given in the text what it is.
- Instead of “cellulosic and waste” the wording “advanced biofuels” are used.
ILUC
- What will happen in future?
- Hard to predict when and how the next steps will be taken. 2015?
- The feedstock specification is crucial, residues today but how about tomorrow?
- Land use or feedstock?
- 5 – 7 % CAP on agricultural land?
Implication Example NER300
• A big EU program based on trade of 300 million green house
gas emission allowances. (≈ 42 bEUR)
• Support “all” type of RES Renewable Energy Source and
CCS Carbon Capture Storage.
• Cooperation EU COM DG ENVIROMENT and MS.
• NER 300 Covers extra
costs (relevant costs)
during start up and pre
commercial production
compared to “ordinary”
production.
Relevant costs
Example of implications for the
Industry - NER300
• The CEG project in Poland has in December 2012 received
30,9 M€ in funding from the EC.
• Positive response from MS to 15 MEUR in additional funding.
• The total investment in CEG project will be about 152 M€
plus 10 M€ in working capital.
• Interest but uncertain rules makes the investors reluctant.
• Letter from the MS to the EC for project time schedule
update and upfront payment. Due to the status of the project,
MS has not signed for financial support. (Hen and egg)
• Most biofuel project in NER300 has been postponed or
withdrawn, mainly due to uncertain rules. (4 of 7)
EU and Governmental support
• Price premium in Poland and some other
countries for local production.
• Double counting acc. to RED - quota.
• Green certificate for biogas and electricity
from lignin?
• National production support
– Example: Proposed Swedish cellulose Biofuel
support price guarantee. (FFF-investigation to
Government in dec 2013)
Advanced biofuels in Europe in 2020
Jan Lindstedt, Chairman AEBIOM Advanced Biofuels WG / SEKAB
AEBIOM European Bioenergy Conference
18 June 2013, Brussels
22
1 20
2
3
23
32
31
24 30
7 8
4
5 18
19
9
10
11
12 13
17
27 21
25
29
6
16 14
15
28
26
Project name Output
(tons/year)
Product
1 Chemrec BioDME project 600 DME
2 Chempolis Biorefining Plant 5.000 Ethanol
3 SEKAB Ethanol Pilot Plant 160 Ethanol
4 BALI Biorefinery Borregaard AS 110 Ethanol
5 Weyland 158 Ethanol
6 Biobutanol demo 15 Biobutanol
7 Inbicon (Dong Energy) Demo 4.300 Ethanol
8 BornBio-Fuel 2 BioGasol 4.000 Ethanol
9 SEKAB Demo plant 48.000 Ethanol
10 BioMCN commercial 200.000 Methanol
11 ECN demo 6.500 SNG
12 Futurol Project 142.920 Ethanol
13 Bioliq® Project 608 DME
14 Abengoa Arance EC demo 40.000 Ethanol
15 Abengoa Bioenergy 4.000 Ethanol
16 BEST Beta Renewables 40.000 Ethanol
17 Sunliquid Clariant 1.000 Ethanol
18 UPM Lappeenranta Biorefinery 100.000 Biodiesel
19 Bioenergy VERBIO Straw 9.344 Biomethane
20 Ajos BTL Forest BtL Oy 115.000 FT products
21 Stracel Project UPM 100.000 FT products
22 Värmlandsmetanol 100.000 Methanol
23 Bio2G Project 116.800 SNG
24 GobiGas (phase 2) 61.538 SNG
25 Projet Syndièse CEA France 22.000 FT products
26 Domsjö Fabriker Chemrec AB 140.000
(or 120.000)
Methanol
(or DME)
27 SNG demo Biomassekraftwerk 3.600 SNG
28 PERSEO pilo plant 288 Ethanol
29 INEOS Bio 24.000 Ethanol
31 Maabjerg Energy Concept 60.000 Ethanol
3.000 Biomethane
32 Nordisk Etanol 100.000 Ethanol
30.000 Biomethane
32 Sunpine 100.000 Biodiesel
Thermochemical
Biochemical
Chemical
High expectations of the advanced biofuels sector in 2020
• EC proposal for a Directive (COM(2012)595) suggests a 5% cap on crop-based biofuels
• Estimation of advanced biofuels availability based on the 2020 planned installed capacity
• In a business as usual scenario, the advanced biofuels availability in 2020 would
not match the quantities needed to reach the nREAP targets
*Biofuels multiple-counted under (COM(2012)595) except algae and used cooking oil
Renewable eneryg in transport nREAP targets [Mtoe]
Biofuels 28,9 Hydrogen 0,0 Renewable electricity 3,1 Other 0,7 Total renewable energy in transport 32,7
[Mtoe] nREAP targets - taking into account the proposed 5% cap on crop-based biofuels (COM(2012)595)
EU-27 consumption in 2011 (Eurostat, EurObserv'ER)
Available for consumption in 2020 based on the planned installed production capacity in EU (AEBIOM calculations)
Total renewable energy in transport (10%) 32,7 Crop-based biofuels (5%) 16,4 13,2 Hydrogen 0,0 Other 0,7 Renewable electricity 3,1 1,5 Non crop-based biofuels biofuels 12,5 0 3,9* (1,6 without multiple counting)
Thank you for your attention!
Jan Lindstedt
Jan.Lindstedt@Sekab.com
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