13.10.2008 Harri Turpeinen1

Sustainable feedstocks for

commercializing BTL

BTLtec 2008

Roundtable forum of BTL players

Gothenburg

October 13, 2008

Harri Turpeinen

Mailto:harri.turpeinen@nesteoil.com

13.10.2008 Harri Turpeinen2

EU sustainabilitycriteria in makingFrench presidencycompromise proposal on Sept 10, 2008

13.10.2008 Harri Turpeinen3

1st hearing procedure

European Commission

European Parliament

ITRE committee responsible

European Council

COREPER task force

European Parliament

Proposal in Jan 2008

All committee decisions completed in September, 347 pages in ITRE

decision

Task force proposal in September for negotiation with EuropeanParliament

Plenary vote on December 16, 2008

13.10.2008 Harri Turpeinen4

Sustainability criteria for biofuels and

other bioliquids( Cuts from Presidency compromise proposal)

Biofuels and other bioliquids shall be taken into account for the purposes listed under points (a), (b) and (c) only if they fulfil the sustainability criteria set out in paragraphs 2 to 5:

(a) measuring compliance with the requirements of this Directive concerning

national targets;

(b) measuring compliance with renewable energy obligations;

(c) eligibility for financial support for the consumption of biofuels and other bioliquids.

However, biofuels and bioliquids produced from waste and residues, other than agricultural and forestry residues, need only fulfil the sustainability criterion set out in paragraph 2 in order to be taken into account for the purposes listed under points (a), (b) and (c).

13.10.2008 Harri Turpeinen5

2. The greenhouse gas emission saving from the use of biofuels and other

bioliquids taken into account for the purposes referred to in paragraph 1 of this Article shall be 35% (ITRE committee 45%).

With effect from 2017, the greenhouse gas emission saving from the use of biofuels and other bioliquids taken into account for the purposes referred to in

paragraph 1 of this Article shall be 50% (ITRE committee from 2015 60%).

3. Not be made from raw material obtained from land with high biodiversity value, that is to say land that had one of the following statuses in or after January 2008, whether or not the land still has this status:

(a) primary forest and other wooded land, where there are no clearly visible

indications of human activities and the ecological processes are not significantly disturbed;

(b) (i) areas designated by law or by the relevant competent authority for nature protection purposes; or

(ii) areas for the protection of rare, threatened or endangered

ecosystems or species recognised by international agreements or included in lists drawn up by intergovernmental organisations or the International Union for the Conservation of Nature, subject to their recognition in accordance with the second subparagraph of Article 16(4);

13.10.2008 Harri Turpeinen6

(c) (i) highly biodiverse natural grassland, that is to say grassland that would remain grassland in the absence of human intervention and which is species-rich, not fertilised and not degraded; or

(ii) highly biodiverse non natural grassland, that is to say grassland that would cease to be grassland in the absence of human intervention and

which is species-rich and not degraded, unless evidence is provided that the harvesting of the raw material is necessary to preserve its grassland status.

4. Biofuels and other bioliquids taken into account for the purposes referred to in

paragraph 1 shall not be made from raw material obtained from land with high carbon stock, that is to say land that had one of the following statuses in January 2008 and that no longer has this status:

(a) wetlands, that is to say land that is covered with or saturated by water permanently or for a significant part of the year, including pristine

peatland;

(b) continuously forested areas, that is to say land spanning more than 1 hectare with trees higher than 5 metres and a canopy cover of more than 30%, or trees able to reach these thresholds in situ.

This paragraph shall not apply if, at the time the raw material was obtained, the

land had the same status as it had in January 2008.

13.10.2008 Harri Turpeinen7

5. Agricultural raw materials cultivated in the Community shall be obtained in accordance with the requirements and standards under the provisions referred to under the heading "Environment" in Part A of Annex III to Council Regulation (EC) No 1782/2003 and in point 9 of Annex III to that Regulation and in accordance with the minimum requirements for good agricultural and environmental condition defined pursuant to Article 5(1) of that Regulation.

5a.The Commission shall report every two years to the European Parliament and the Council, in respect both of third countries and Member States, on national measures taken

– to respect the sustainability criteria and for soil, water and air protection.

– on the impact on social sustainability in the Community and in third countries of increased demand for biofuel, and

– on the impact of EU biofuel policy on the availability of foodstuffs at affordable prices, in particular for people living in developing countries, and wider development issues.

– Reports shall address the respect of land use rights. They shall state, both for third countries and Member States that are a significant source of raw material for biofuel consumed within the Community, whether the country has ratified and implemented eight Conventions of the International Labour Organisation (not included in this presentation)

13.10.2008 Harri Turpeinen8

Sustainability

verification –Neste Oil experience

13.10.2008 Harri Turpeinen9

Refinery based NExBTL unit

Pretreatment

Feeds in:

Vegetable Oil

and Animal Fat

Acid

Caustic

Water

Hydrogen

Oil/Fat

Products out:

Sludge

Water

Sour water

Bio fuel gas

Biogasoline

NExBTL DieselNExBTL Diesel

NExBTL-Unit

Traditional way of looking on conversion process.

However, more holistic view on the whole life cycle was needed to improve the performance

13.10.2008 Harri Turpeinen10

NExBTL:

Measuring GHG Emissions over the product chain

•Research Methodology is based on standards.

Research and results can be verified.

•The research will be published.

•Applying principles of system theory

•Life Cycle Analysis as described in standardsSFS-EN ISO 14040:2006 and 14044:2006

•Greenhouse gas calculation as described in

standard SFS-ISO 14064-1:2006

•Assessment based on guidance given in

Carbon Reporting Within the Renewable

Transport Fuel Obligation (RTFO) •First transparent methodology prepared

and piloted in cooperation between

industry, environmetal experts and

authorities

•Comparable assessment by using

methodology described in EU RES-directive

proposal

Palm OilRapeseedAnimal Fat

Cultivation /

Production

Oil Processing

Transport

Pretreatment

NExBTL

ProcessH2 -production

Transport

Product use

(1) (1)

(1)

(1) Examples of input data attached

13.10.2008 Harri Turpeinen11

Modules of NExBTL LCA for GHG emission assessment

Crude palm oilprocessing

Rapeseed oilprocessing

Animal fatprocessing

Pretreatment

NExBTLprocess

Product use

Transport of raw materials Processchemicals

productionTransport

Primary data source

Oil palm

cultivation

Rape plant

cultivation

H2 productionat site Catalysts

production

Transport

Otherraw materials

Drying of solid waste

Waste water

plant

Energy

conversionof solid waste

Transport

Propane

Transport

RE

FIN

ER

Y

Waste water

Gasoline

production

NExBTLbiodiesel

Gasoline

Animal andslaughterhouse waste

Water

Energy

Steam

Secondary data source

13.10.2008 Harri Turpeinen12

0

10

20

30

40

50

60

70

80

NExBTL, palm oil EU, palm oil NExBTL, rapeseed oil EU, rapeseed oil

gCO2e/MJ NExBTL

Transport anddistribution

Processing

Cultivation

NExBTL product chain – Total greenhouse gas emissionsaccording to proposal for EU directive on promotion of the use of energy from renewable sources

EU sustainability limit

13.10.2008 Harri Turpeinen13

NExBTL product chain – total energy consumption

0,00

0,05

0,10

0,15

0,20

0,25

0,30

100% palm oil(fossil and

renewable energy)

100% palm oil(fossil energy)

100% rapeseed oil(fossil energy)

100% animal fats(fossil energy)

MJ / MJ NExBTL Product transport

Production of NExBTL

Transport of rawmaterials

Cultivation andprocessing of rawmaterials

13.10.2008 Harri Turpeinen14

Inputs & outputs of animal fat (AF) processing

Size reduction

Melting

Separation

Pressing

Energyconversion

Waste

water

treatment

Steam

212 MJ

1t raw materials

Heat to

network425 MJ

Heavyfuel oil

2630 MJ

cat.1 fat

used as a fuel

44 kg (1648 MJ)Feed meal

247 kg

cat.1 chips

132 kg

Animal fats

76 kg

Water 500 kg

Solid waste 13 kg

Recycled waste 0.6 kgHazardous waste 0.03 kg

Waste water 900 kg

CO2: 155 kg

NOx: 1 kgSOx: 1.7 kg

Source: Environmental permit of Finnish rendering plant

Sludge

333 kg

Energy production

Process

chemicals

13.10.2008 Harri Turpeinen15

Thank you.

www.nesteoil.com