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) UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Biofuels in Germany and in the European Union • 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 proteinbearing plants. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Tasks... UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. • • • • • Renewable Energy Law Biomass ordinance Programs supporting investments Mineral oil tax exemptions for biofuels R & D – Program UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. National Level - Framework plant Capacity kW/MW Payment basis1 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 1 -annual reduction: 1,5% bio-heating fuel additional Heatingtechnopower – logy „fee“ additional additional biogas biomass e.g. forest wood biomass total biomass total 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 UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Payments for electricity made of biomass determined in the law for renewable energies – 2004 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 3,4 ct/kWh 17 ct/kg Wheat 10,5 €/100 kg 2,22 ct/kWh 10,5 ct/kg Source: German Farmer‘s Association UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Comparison of the heating value (ct/kWh) 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 UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Situation and Results in Germany (2005) Marketing Strategies - Biodiesel B 100 : B 5: filling stations, fleet owners Diesel fuel – EN 590 - Rapeseed oil: filling stations, fleet owners - Bioethanol: Gazoline – EN 228, ETBE E85 UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Biofuels in Germany UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Overview 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 UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Biodiesel capacities in Germany 2006/07 UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Development of the bio-diesel market in Germany UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Identification of Biodiesel 2000 1800 1600 1400 245 275 Fillingstations P. cars 1200 1000 590 Filling Stations hdv 800 600 Heavy Duty Vehicles 90 Agriculture 400 600 200 Admixture 250 200 50 0 Biodiesel Plantoil Bioethanol 1800 300 200 Total UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Biofuels 2005 (in 1000 t) 1.Raw Material (rape seed) 12 industriel crushing plants 7,9 >300 local, small crushing plants, size: < 20.000 t 0,5 2. Biofuel Biodiesel pure Rapeseed Oil Bioethanol 2,5 - 3,4 0,4 0,5 UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Biofuel capacities in Germany 2006/07 Mio. t European Biodiesel- (FAME) Capacities (1000 Tons) Germany Italy Great Britain France Spain Austria Czech Republik Lativia Denmark Portugal Greece Slovakia Lithuania Sweden Benelux Estonia Finland Ireand, Malta, Slovenia, Hungaria, Cyprus Total % Germany Source: Ufop and others Production 2004 2004 Capacity 2006 2005 2007 1.035 320 9 348 13 57 60 n.a. 70 n.a. n.a. 15 5 1 n.a. n.a. n.a. 1.205 914 31 434 91 122 112 3 70 100 n.a. 35 n.a. 5 n.a. n.a. n.a. 2.016 1.038 517 434 151 127 112 106 100 100 80 57 10 5 3 n.a. n.a. 3.603 1.038 660 594 322 127 112 106 100 100 80 57 10 81 288 n.a. n.a. 4.033 1.038 910 894 422 127 112 286 100 100 80 57 10 81 388 110 170 n.a. n.a. n.a. n.a. n.a. 1.933 3.122 4.856 7.278 8.918 39% 42% 50% 45% UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Country 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 1 EURO IV: Biodiesel Sensor available Warranties for B 5: (Component in fossil Diesel: EN 590) Automotive Industry: Car/hvd- Manufactures, Diesel Fuel Injection Pump Manufactures UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Use of Biodiesel / EN 14214 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) UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Consequences of different fuel mixtures UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Tax on Diesel Fuel in EU 25 (May 2004) 80,00 70,00 60,00 40,00 30,00 20,00 10,00 LV PL G R CY P T LI L AL ES T M E P O SL CZ A B H SF SK S IR DK NL I F D 0,00 G B €Cent/l 50,00 UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Taxation of Biofuels 2006/2012 Tax Rate 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 UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Energy Tax Law (01.08.2006) • Taxation on biofuels: • Biodiesel (B5) • Bioethanol 15 Cent/l (till 31.12.2006) 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 UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Energy Tax Law (01.08.2006) • 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 UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Energy Tax Law/ Quota system (till 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 Pure plant oil Bioethanol - DIN EN 14214 - DIN V 51606 - 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 UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Energy Tax Law/ Quota system (01.01.2007) UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Impacts of the Quotasystem • 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 biodiesel and non technical criteria on sustainable production of biofuels/crops • Need of harmonisation of tax exemptions, mandatory systems in the EU (common market) UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Conclusions UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Fuels for the Future 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: d.bockey@ufop.de UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Thank you for your attention!