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U N I O N Z U R F Ö R D E R U N G V O N O E L - U N D P R O T E I N P F L A N Z E N e . V . Biofuels in Germany and in the European Union Political Conditions and Market Trends Internatıonal Symposium on biofuels 10th August 2006 ANKARA Dieter Bockey Union zur Förderung von Oel- und Proteinpflanzen e.V. (UFOP)

Biofuels in Germany and in the European Union Political Conditions and Market Trends

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Biofuels in Germany and in the European Union Political Conditions and Market Trends. Internatıonal Symposium on biofuels 10th August 2006 ANKARA Dieter Bockey Union zur Förderung von Oel- und Proteinpflanzen e.V. (UFOP). Tasks. - PowerPoint PPT Presentation

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Page 1: Biofuels in Germany and in the European Union Political Conditions  and  Market Trends

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.Biofuels in Germany and in the

European Union

Political Conditions and Market Trends

Internatıonal Symposium on biofuels

10th August 2006 ANKARA

Dieter Bockey

Union zur Förderung von Oel- und Proteinpflanzen e.V. (UFOP)

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Tasks...

• The work conducted by UFOP is divided into four main fields of work:

– Political lobbying to national and international authorities.

– Optimisation of agricultural production by promoting research and supporting variety trials.

– Development of new means of exploitation.– Public relations work to promote the sales of all

end products on indigenous oil and protein-bearing plants.

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National Level - Framework

• Renewable Energy Law• Biomass ordinance• Programs supporting investments• Mineral oil tax exemptions for biofuels• R & D – Program

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.Payments for electricity made of biomass determined in the law for renewable energies – 2004

plant

Capacity

kW/MW

Payment

basis1

bio-heating fuel

additional

Heating-power – „fee“

additional

techno-logy

additional

biogas biomass

e.g.

forest wood

biomass

total

biomass

total

Max. 150 Max. 500 max. 5 MW

from 5 to 20 MW

11,5 Ct/kWh

9,9 Ct/kWh

8,9 Ct/kWh

8,4 Ct/kWh

6 Ct/kWh

6 Ct/kWh

4 Ct/kWh

0

6 Ct/kWh

6 Ct/kWh

2,5 Ct/kWh

0

2,0 Ct/kWh

2,0 Ct/kWh

2,0 Ct/kWh

2,0 Ct/kWh

2,0 Ct/kWh

2,0 Ct/kWh

2,0 Ct/kWh

0

1 -annual reduction: 1,5%

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Comparison of the heating value (ct/kWh)

Energy source Price in ct/kWh

Heating oil: 53,5 ct/l 5,32 ct/kWh

Natural gas (July 05) 4,6 ct/kWh 5.000 kWh

Wood Pellets: 170 €/t 17 ct/kg

3,4 ct/kWh

Wheat 10,5 €/100 kg 10,5 ct/kg

2,22 ct/kWh

Source: German Farmer‘s Association

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.Situation and Results in Germany (2005)

Economic factor bioenergy:

• Turnover 6.35 Billion €: 1,7 bn € biodiesel market 1,1 bn € electricity market 0,5 bn € bio heat market

• Investments 3,05 Billion €: 1,3 bn € electricitiy market

1,25 bn € heat market approx. 0,5 bn € biofuel market

• Employment: 57.000 (“job-machine”)

Climate protection: CO2 - savings: 26 Million Tons

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Biofuels in Germany

Marketing Strategies

- Biodiesel B 100 :

filling stations, fleet owners

B 5: Diesel fuel – EN 590

- Rapeseed oil: filling stations, fleet owners

- Bioethanol: Gazoline – EN 228, ETBEE85

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Biodiesel capacities in Germany 2006/07Overview

Capacity No.

150.000 11

100.000 4

50.000 5

25.000 3

5.000 6

2.000 3

Total: 3,4 Mio. t 32 locations

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.Development of the bio-diesel market in Germany

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Identification of Biodiesel

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Biofuels 2005 (in 1000 t)

600

20050

275

90

250

590

245

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Biodiesel Plantoil Bioethanol

1800 300 200

Fillingstations P.cars

Filling Stations hdv

Heavy DutyVehicles

Agriculture

Admixture

Total

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Biofuel capacities in Germany 2006/07 Mio. t

1.Raw Material (rape seed)

12 industriel crushing plants

>300 local, small crushing

plants, size: < 20.000 t

7,9

0,5

2. Biofuel

Biodiesel

pure Rapeseed Oil

Bioethanol

2,5 - 3,4

0,4

0,5

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.Country Production

2004 2004 2005Capacity

2006 2007Germany 1.035 1.205 2.016 3.603 4.033Italy 320 914 1.038 1.038 1.038Great Britain 9 31 517 660 910France 348 434 434 594 894Spain 13 91 151 322 422Austria 57 122 127 127 127Czech Republik 60 112 112 112 112Lativia n.a. 3 106 106 286Denmark 70 70 100 100 100Portugal n.a. 100 100 100 100Greece n.a. n.a. 80 80 80Slovakia 15 35 57 57 57Lithuania 5 n.a. 10 10 10Sweden 1 5 5 81 81Benelux n.a. n.a. 3 288 388Estonia n.a. n.a. n.a. n.a. 110Finland n.a. n.a. n.a. n.a. 170Ireand, Malta, Slovenia,

Hungaria, Cyprus n.a. n.a. n.a. n.a. n.a.Total 1.933 3.122 4.856 7.278 8.918% Germany 39% 42% 50% 45%

European Biodiesel- (FAME) Capacities (1000 Tons)

Source: Ufop and others

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Use of Biodiesel / EN 14214

Warrenties for B 100:

Passanger cars: VW¹, Audi, Seat, Skoda¹

heavy-duty-vehicles(buses, lorries):

DaimlerChrysler, MAN

EURO IV and V (incl. EURO III)

agricultures-vehicles(tractors):

Fendt, Case, Massey-Ferguson, Steyr

Automotive Industry: Car/hvd- Manufactures, Diesel Fuel Injection Pump Manufactures

1 EURO IV: Biodiesel Sensor available

Warranties for B 5: (Component in fossil Diesel: EN 590)

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.Consequences of different fuel mixtures

B5 B10 B20…B30 B100

Fuel standard DIN EN 590 no no DIN EN 14214

warranties P.cars: ++

hdv: ++

P.cars, hdv: no/yes

P.cars,

hdv: no/yes

P.cars: ++/--

hdv: ++/-

Results of R&D + - (+)- ++

Problems with old vehicles

no probably (longterm)

yes/ warranty necessary

Warranty necessary

Experiences yes no/yes no/yes yes

OEMs (especially injection pump manuf.)

+ -- -- --

Special demands for the material

no partly yes yes

Fulfillment of the emission requirements

No problem for P.cars and hdv,

Incl. EURO III and EURO IV/V?

P.cars: yes/no

Hdv: yes

Incl. EURO III and EURO IV/V?

P.cars: yes/no

Hdv: yes

Hdv: yes

Pass. cars:

EURO V not possible (aftertreatment system)

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.Tax on Diesel Fuel in EU 25

(May 2004)

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

€Cen

t/l

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Year Biodiesel Pflant Oil

2006 u. 2007 9 Cent/l 0 Cent/l

2008 15 Cent/l 10 Cent/l

2009 21 Cent/l 18 Cent/l

2010 27 Cent/l 26 Cent/l

2011 33 Cent/l 33 Cent/l

ex 2012 45 Cent/l 45 Cent/l

Tax Rate

Energy Tax Law (01.08.2006)

Taxation of Biofuels 2006/2012

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Energy Tax Law (01.08.2006)

• Taxation on biofuels:

• Biodiesel (B5) 15 Cent/l (till 31.12.2006)• Bioethanol 0 Cent/l

• Agriculture and Forestry: – Reimbursement System• Public traffic (buses): Reimbursement – 5 Cent/l on

the corresponding tax rate on biodiesel/plant oil

• Annual evaluation of the tax exemption/over compensation

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. Energy Tax Law/ Quota system (till 01.01.2007)

• Precondition for a tax relief for:

- Biodiesel – DIN EN 14214

- Pure Plant oil – DIN V 51605

• No Taxation till 2015 on:- Synthetic Biofuels (biomass to liquid – btl)

- Bioethanol from cellulosis

- E85

=> But: Annual report about over compensation

• Agreement necessary between the ministry of:

agriculture, environment, traffic, and economics is necessary about the environmental advantages of biofuels: CO2- reduction potential, sustainable cultivation of arable land

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. Energy Tax Law/ Quota system (01.01.2007)

• Introduction of mandatory bio fuel quotas: - Sellers of diesel and gazoline on the stage of tax ware houses - Biofuel producer (biodiesel, plant oil)

Mineraloil companies have to fullfil the following commitments:Diesel: 4,4 %Gazoline: 2 % (2007 - 2009), 3% till 2010

Additional „total qouota“ for diesel and gazoline market:Minimum portion: 5,7% 2009 and 6 % till 2010(all comitments on energetic basis !)

Precondition:Biodiesel - DIN EN 14214Pure plant oil - DIN V 51606Bioethanol - 99 Vol. % alcohol content

No charging of oil and fats which are used directly in the mineral oil refinery process, but hydration process like „next btl“ will be acknowledged

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.Impacts of the Quotasystem

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Conclusions

• The fast growing biodiesel (biofuel) market in Germany is a result of comprehensive tax exemptions and warranties given by DC, VW

• Introduction of a quality management is necessary

• Level playing field: EN 14214

• Agreement of a world-wide standard of biodieseland non technical criteria on sustainable production of biofuels/crops

• Need of harmonisation of tax exemptions, mandatory systems in the EU (common market)

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.Fuels for the Future

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Thank you for your attention!

Contact:

Dieter Bockey

UFOP

Union zur Förderung von Oel- und Proteinpflanzen e.V.

(Union for the Promotion of Oil Seed and Protein Plants reg. Ass.)

Claire-Waldoff-Str. 7

10117 Berlin

Tel.: +49 (30) 31 90 42 15

Fax: +49 (30) 31 90 44 35

e-Mail: [email protected]