Current situation of the biodiesel production and marketing in the Czech Republic

Transcription

1 Current situation of the biodiesel production and marketing in the Czech Republic Petr Jevič Miroslav Bažata Research Institute of Agricultural Engineering, p.r.i. (RIAE, p.r.i. - VÚZT, v.v.i.) Prague AGROPODNIK, a.s. (jsc.) Jihlava member of SVB Association for Biodiesel Production (SVB) Prague Prague,

2 Assurance of Biodiesel Production - FARME fatty acid rape oil methyl esters - FAME fatty acid methyl esters Biodiesel and Diesel Fuel Blends Quality Management Fuels and Biofuels Legislation Overview in CZE Biodiesel in CZE - production capacities in CR - product movements in biofuel storage and distribution network Vertical Integration and Synergy Effects Biomass and Biodiesel Sustainability Certification Summary Prague,

3 Assurance of FARME in the CZE After completion of basic research work in the RIAE, p.r.i. VÚZT, v.v.i. Prague. In years aimed at solution of complex issues of oilseed rape destined for production of motor fuel, it was started in 1992 the production of fatty acid rape seed oil methyl esters FARME. Realization of pilot unit in RPN Chrudim : 500 tons rapeseed methyl esters per year (know how RPN Chrudim and VÚZT Prague) Realization of experimental unit in cooperative farm Dolany : 1000 tons of rapeseed methyl esters per year (know how ATEKO, jsc. and VÚZT Prague) Total capacity tons per year FARME, FAME producers in over tones * Firm Capacity Quality AGROPODNIK, jsc. Jihlava t per year FARME OLEOCHEMICAL, jsc. Liberec t per year FAME Primagra, jsc. Milín t per year FARME PREOL, jsc. Lovosice t per year FARME FAME, jsc. Ústí nad Labem t per year FAME * The other - owned by agricultural enterprise, regional t Prague,

4 Feedstock: Broader Bass + Lower Cost Vegetable oils: Rapeseed (OO standard rapeseed oil, HOLL high oleic/low linolenic) Sunflower (HOLL - high oleic/low linolenic) Soya Palm Linola (LL) Recycling oils, animal fats from rendering plant production Intelligent blends for FAME Prague,

5 Biodiesel Quality Management Fuel and Biofuel Standard in CZE B7 ČSN EN 590 (2009) + A1 (2010) Automotive fuels Diesel Requirements and test methods B100 ČSN EN (2008) + A1 (2009) Automotive fuels Fatty acid methyl esters (FAME) for diesel engines Requirements and test methods B30 ČSN (2009) Automotive fuels Diesel fuel blends containing Fatty acid methyl esters (FAME) Requirement and test methods PPO ČSN (2007) Automotive fuels Fuels for vegetable oil compatible combustion engines Requirements and test methods Fuel from rapeseed oil, Pure plant oil Prague,

6 Biodiesel Quality Management Legally enforced emission reduction - Directive on fuel quality - Auto-oil program (including GHG-commitments) Resulting in more sophisticated engine and fuel injection management with high precision Significantly increasing demands for higher fuel quality regardless whether fossil or bio Prague,

7 Fuels and Biofuels Legislation Overview in CZE The Act No. 86/2002 on atmosphere protection of later regulations Since 2007 it has been started mandatory blending of FARME FAME into diesel fuel according to valid technical standards for diesel fuel. Development of minimal shares of biofuels in CZE in years % % % % % % % % % % V/V 1) e.o. 2) V/V 1) e.o. 2) V/V 1) e.o. 2) V/V 1) e.o. 2) V/V 1) e.o. 2) Biofuels (FAME, FARME) in diesel Biofuels in gasoline Biofuels in fuels total Minimal reduction CO 2eq by using of biofuels 3) 0.11 % 0.56 % 1.15 % 1.33 % 1.48 % 1) % V/V = % volume 2) % e.o. = % energy content 3) The greenhouse gas emission savings minimal 35 % (Directive2009/28/EC). Prague,

8 Fuels and Biofuels Excise Taxes (ET) in CZE The Act No. 353/2003 on excise tax in wording of later regulations: - Till October 1st 2009 green diesel for agricultural producers 60% ET refund from CZK/1000 liters on diesel and 80% ET refund from CZK/ 1000 liters on diesel fuel blends B30 - From October 1st 2009 green diesel for agricultural producers 60% ET refund from CZK/1000 liters on diesel and 85% ET refund from CZK/ 1000 liters on diesel fuel blends B30 - From October 1st 2009 again ET 0,00 CZK/liter on B100 - From January 1st 2010 ET increase from CZK/1000 l to CZK/l on Diesel and ET increase from CZK/1000 l to CZK/1000 l on B30 The CR has implemented the EU regulations into the Czech legal order as biofuels regards to ensure the determined objectives fulfilment: - Directive 2009/28/EC of 23 April 2009 on the promotion of the use of energy from renewable sources - Directive 2009/30/EC of 23 April 2009 as regards the specification of petrol, diesel and gas-oil. Prague,

9 Framework and targets - combat climate change The biogenic fuels production has its conditions and boundaries and thus the biomass sustainable economical, ecological and social production is a scope of its conversion to the biogenic fuels. At the some time agriculture meets its basic function, i.e. the food security and care for landscape. The fatty acids methyl esters (FAME) in particular of the rapeseed oils as a fuel for compression ignition engines are today technically matured and available in a huge amount with high level of quality determined by the European technical standard. EU target to reduce carbon dioxide emissions 20 % by % of all Czech Republic energy to come from renewable by 2020 (share of energy from renewable sources in gross final consumption of energy 2005: 6.1 %). EU target of 10 % road fuel from biofuels by energy. Prague,

10 FARME (FAME) balance within in the Czech Republic 200 Amount (thousands tones) Domestic production Gross inland delivery Exports Imports FAME consumption increased by 30% in 2010/2009 FAME production was 198 ths. tonnes in Years Prague,

11 Product Import / Export, 2010 FAME Imports in tonns AT DE NL 596 PL Total Imports FAME Exports in tonns AT CY 25 DE PL NED 596 GER CZE4 644 FAME Export in tonnes FAME Import in tonnes POL SK 855 Total Exports SVK FAME Balance CZE 2010 in tonns Index 10/09 Production ,278 Imports ,998 Exports , AUT HUN Consumption *) ,304 *) includes stock balance Source: SVB, MPO CY Prague,

12 Bio/Fuel Storage and Distribution Network in CZE North CZE: 72% of running FAME capacities FAME Ústí Litvinov OLEOCHEMICAL PREOL Roudnice Cerekvice Central and East CZE: Production and distribution centre Hajek Kralupy Mstetice Potehy PARAMO Sedlnice Tremosna PRIMAGRA Slapanov Smyslov FARME, FAME production plants Belcice PKN ORLEN GROUP Rafineries AGROPODNIK Jihlava Strelice ČEPRO Fuel Terminals Vcelna ADW B100 Distribution Terminals B30 Distribution Terminals Product Pipelines ADM Loukov Plesovec Klobouky Prague,

13 Vertical Integration and Synergic Effects RAPESEED ENERGY FOR PRODUCTION BIODIESEL OR DIESEL FARME, FAME Closed circle of biodiesel flowing between rapeseed producers and refineries Prague,

14 Sales B30 (thousands liters) Developing the B30 and B100 market: sales of B30 and B B30 Sales 0 Biodiesel B : 268 mio. litres (10% FAME on the market) YEAR : 19, 5 mio. litres YEAR : 28 mio. litres YEAR : 117,2 mio. litres, increased 4 times 1992 Oleoprogram: B30 production subsidy Subsidy of RME production Years Subsidy of RME production and ET reduction EU entry, subsidy stopped year ET reduction ET reduction Biodiesel B100 YEAR : 36,6 ths. litres YEAR : 23,2 mio. litres Sales of B30 in CZE in Prague,

15 Quality biodiesel B30 FARME market production outrun in CZE approval of the quality standard. FARME introduction on alternative fuel has not beet fully successful in CZE at the beginning of 90 s. FARME is a feedstock for production of standardized blended engine diesel fuel with content of 30 % V/V with historically known brands - Gold Diesel, Natur Diesel, Seta Diesel, Myra Diesel and today brand Biodiesel B30, Ekodiesel B30 Quality: B30 minimized risk connected with increased density (FARME: kg.m -3 at 15 o C, B30: kg.m -3, diesel fuel: kg.m -3 ): temperature of exhausting gases, engine oil dilution, minimization of risk with respect to viscosity (diesel fuel 40 o C: 2-4,5 mm 2.s -1 ; FARME: 3,5-5 mm 2.s -1 ; B30: 2-4,5 mm 2.s -1 as pressure to the mechanical pump drive concerns, fine fuel spreading, maintains the blend in framework of standard ČSN EN 590 with respect to water content (FARME - max. 500 mg.kg -1 ; engine diesel fuel - max. 200 mg.kg -1 ; B30 - max. 300 mg.kg -1 ; water separation and connected possibility of fuel part damage. Prague,

16 Criteria of sustainability key of further development of mixed and biogenic fuels in CZE and EU Ensure uniformity and fairness in greenhouse gas balancing Certification criteria fundamentals The relevant certification criteria that must be complied with to participate in the ISCC system fall into three categories: - sustainability requirements that have to be complied with in cropping for biomass production, - requirements concerning the greenhouse gas emission savings, - requirements concerning the traceability and mass balance to provide consistent evidence of the provenance of the biomass. Prague,

17 Certification biodiesel in CZE The CZE has a total of 8 combined regions (NUTS 2) Requirements under the Directive regarding combined regions Establishment of combined regions (NUTS 2) where the typical greenhouse gas emissions from cultivation of agricultural raw materials can be expected to be lower than or equal to the emissions reported under the heading Disaggregated default values for cultivation in part D of Annex V to this Directive, accompanied by a description of the method and data used to establish that list. That method shall take into account soil characteristics, climate and expected raw material yields. Methodology Soil characteristics, climate and expected yields may be established on the basis of: - evaluated soil-ecological units (term defined below in this section) - classes of protection of agricultural land resources (term defined below in section (d)) - average yield of agricultural crops (according to up-to-date statistics) The main cereals involved are wheat, and, subsequently, fatty acid methyl esters (FARME) and standard fuel for diesel engines in pure form and blends. Prague,

18 Calculation of typical emissions from oilseed rape cultivation in g CO 2eq /MJ FARME NUTS 1 NUTS 2 Energy inputs Territory name code from Czech technical Republic cultivation operations Code: CZ0 NUTS Střední Čechy (Central Bohemia) Seeds Production and transport of industrial fertilisers Producti on and transport of biocides Production and transport of CaO Drying Direct N 2 O emission Indirect N 2 O emission Total typical emission NUTS Prague CZ01 3,01 0,096 10,59 0,63 0,30 0,67 6,32 1,49 23,1 NUTS Jihozápad (South-west) NUTS Severozápad (North-west) NUTS Severovýchod (North-east) NUTS Jihovýchod (South-east) NUTS Střední Morava (Central Moravia) NUTS Moravskoslezsko (Moravia-Silesia) CZ02 3,18 0,102 10,48 0,66 0,32 0,67 6,25 1,54 23,2 CZ03 3,38 0,107 10,37 0,69 0,34 0,67 6,20 1,48 23,2 CZ04 3,27 0,104 10,45 0,67 0,32 0,67 6,25 1,35 23,0 CZ05 3,25 0,103 10,45 0,67 0,32 0,67 6,27 1,76 23,5 CZ06 3,3 0,105 10,41 0,69 0,33 0,67 6,20 1,67 23,1 CZ07 3,1 0,100 10,52 0,65 0,31 0,67 6,26 1,48 23,5 CZ08 3,29 0,104 10,42 0,68 0,33 0,67 6,27 1,73 23,2 Total for entire Czech Republic 3,22 0,103 10,46 0,67 0,32 0,67 6,25 0,56 23,2 Disaggregated default value for cultivation e ec pursuant to part D of Annex IV to Directive 2009/30/EC of the European Parliament and to the Council 29,0 Prague,

19 The ISCC certification system biodiesel - FAME (FARME) production: AGROPODNIK, jsc. Jihlava and PREOL, jsc. Lovosice Prague,

20 Summary Quality standard for B7 is valid, the implementation of legislation will valid from June 1st, 2010 Biofuel legislation is set up and Longterm Biofuels Implementation Strategy of the Czech Republic is notified by EC FAME production t in 2010 (90 % FARME) index 2010/2009: 1,20 FAME gross consumption t in 2010 index 2010/2009: 1,30 71 % of FAME FARME for mandatory blending in 2010 B30 gross consumption t in 2010 B100 gross consumption t in 2010 Distribution network for B30 and B100 is set up All crucial FARME producers in the Czech Republic have been certified up to the end of 2010 in the system International Sustainability and Carbon Certification (ISCC). In 2020 it is assumed the marketing ca 8.5% vol. (7.8% e.c.) of FARME from diesel fuel consumption, which should bring reduction by 3.9% CO2eq. Prague,

21 Sugars, left, and Rodante wave from the cockpit of the L-29 Delfin they used on a flight burning B100 We could fly on Biodiesel Green Flight International and Biodiesel Solutions teamed up for an aviation first in early October with the completion of an experimental test flight in an L-29 aircraft powered by B100. The plane, made in the former Czechoslovakia, was piloted by Carol Sugars and Douglas Rodante from Reno-Stead Airport in Reno, Nev., on a test flight that experimented with mixtures of jet fuel and biodiesel. As the flight progressed, the blend of biodiesel increased until the jet was burning B100. Prague,

22 Thanks for your attention! Petr Jevič Head researcher and development worker of Research Institute of Agricultural Engineering, p.r.i. (VÚZT, v.v.i) Prague Executive Director of Association for Biodiesel Production (SVB) Prague Miroslav Bažata Head of Bio / Fuel Sales AGROPODNIK, a.s. (jsc.) Jihlava Member of SVB Drnovská 507, Prague 6 Dobronín 315, Polná tel.: tel.: petr.jevic@vuzt.cz bazata@agropodnikjihlava.cz Prague,