Opportunities for High Blend Liquid and Gaseous Biofuels in the UK
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1 Opportunities for High Blend Liquid and Gaseous Biofuels in the UK Low Emissions Forum London 25 th February 2010 Greg Archer Managing Director, Low Carbon Vehicle Partnership
2 Outline What is the LowCVP? Options for local, low carbon transport Opportunities for high blend liquid and gaseous biofules Realising the opportunities through local action Conclusions
3 Low Carbon Vehicle Partnership Accelerating a sustainable shift to low carbon vehicles and fuels in the UK Stimulating opportunities for UK businesses
4 There are a wide range of approaches and audiences for local, low carbon transport initiatives Traffic planning Own fleet Car sharing / clubs Local business Staff PPG13 Planning Local low carbon transport solutions Lower carbon vehicles Visitors Suppliers Smarter choices Local residents Better driving / fleets
5 There are a wide range of options to encourage low carbon vehicle choices Participate in the low carbon vehicle public procurement programme Install recharging and operate EVs Operate green parking schemes Operate & specify LC buses Green your own and major suppliers fleets train your staff Consider high blend biofuels and biomethane in refuse vehicles
6 There are more & less sustainable ways of producing biofuels Fully sustainable Algal biofuel production >90% GHG-saving No indirect effects British Sugar Wissingham Ethanol from sugar beat c60% GHG-saving Indirect effects possible US Corn Minimal GHG-benefits Significant indirect effects Matto Grosso Brazil Deforestation for soy GHG-emissions Totally unsustainable
7 Why develop a market for high blend liquid & gaseous biofuels? RED 10% target cannot presently be met from supply of low blends into the vehicle parc Potential pathway to ultralow carbon vehicles Relatively cost-effective mechanism for additional GHG-reductions in transport Demonstrates leadership Biofuels must be sustainable
8 Study Scope & purpose Scope: To investigate the opportunities for high blend liquid and gaseous biofuel penetration in the UK Recommend appropriate mechanisms to stimulate take-up Report includes: Sector assessment segmented by vehicle type Barriers, drivers and potential support mechanisms Options assessment TCO2e saved; & /TCO2e Conclusions and recommendations
9 72 fuel and vehicle combinations considered HGV Artic / rigid Large / small MGV LGV Bus Car Biodiesel B5 / B30 / B50 / B100 / BTL / HVO Pure plant oil Ethanol E85 ED95 Biomethane Compressed & liquefied Dedicated Dual-fuel Bi-fuel Study did not consider: Hydrogen liquid or gaseous E-diesel Biobutanol
10 Potential GHG-savings range from 2-6Mt CO2 from limited penetration of fuels into a range of fleets - Current RTFO saves c3mt GHG emission-savings from alternative fuels GHG reduction (Mt p.a.) Biodiesel (B5) Biodiesel (B30) Biodiesel (B100) PPO Biomethane (bi-fuel) Biomethane (dedicated) Biomethane (dual fuel) Ethanol (E5) Ethanol (E85) Ethanol (ED 95) HGV large artic (20% total fleet) HGV small artic (20% total fleet) HGV large rigid (20% total fleet) HGV small rigid (20% total fleet) MGV (20% total fleet) Bus (20% local bus fleet) Light Goods Vehicles (10% fleet) Car (5% total fleet)
11 Low blends are (generally) more cost effective than other options HGVs & buses are generally the lowest cost sectors Cost effectiveness of alternative options / T CO O2e B5 B30 B100 PPO Bio-CH4 ded Bio-CH4 dual E5 E85 HGV MGV LGV Car Bus HGV figures are the average across all sub-sectors
12 Additional costs are incurred in capital, servicing and fuel Biomethane cost-effectiveness in HGVs varies widely Additional Costs Incurred by Biofuel Operation (HGV Large Artic) Biomethane cost effectiveness / T CO2e 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, HGV large artic HGV small acrtic HGV large rigid HGV small rigid HGV average MGV Bus Dedicated Dual Fuel Euro V diesel (base case) Biodiesel (B5) Biodiesel (B30) Biodiesel (B50) Biodiesel (B100) Biomethane (dedicated) Biomethane (dual fuel) PPO Additional Fuel pa Add maintenance pa Additional Capital pa
13 Biomethane in heavy duty vehicles is emerging as a commercial option CO2 saving potential vs Duty Derogation HGV (Large Artic) 3 Biomethane (dedicated) 2.5 Total CO2 saving Mt pa. Biomethane (dual fuel) PPO Biodiesel (B100) 1 Biodiesel (B30) 0.5 Biodiesel (B5) duty derogation to offset addition costs (p/ltr or p/kg)
14 There are a range of approaches through which local authorities can promote biofuels Examine use of biomethane for refuse trucks Infrastructure grants available Deploy higher blend biofuels in own-fleet Duty incentives being removed except for UCO Specify sustainability requirements Check warranties Offer incentives for low carbon vehicles to those operating high blend biofuels Consider bioethanol, biodiesel or biomethane in buses
15 Summary There are a wide range of local actions that can significantly reduce vehicle CO2 emissions Encouraging low carbon technologies is one element Sustainable biofuels are part of the solution & can be produced and sourced For high blend liquid biofuels source those derived from used cooking oils where duty incentive is retained Consider biomethane for refuse trucks and other heavy duty applications Investigate new opportunities to procure and specify low carbon buses
16 Join the LowCVP - Local Authority Network Advice on govt. initiatives that can benefit LAs Co-ordinate and communicate innovative solutions eg. biofuels, EVs, road pricing, procurement Develop new programmes with and for LAs Catalyse action between business and government tiers Join us and join up to low carbon vehicles!
17 Any Questions? The Low Carbon Vehicle Partnership
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