Biodiesel in Germany
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- Kenneth Brown
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1 Biodiesel in Germany A snapshot Who is AGQM? Market situation and quality requirements Legal regulations Quality determining factors Quality assurance system practical solutions Outlook
2 Who is AGQM? Founded in 1999 as a quality management organisation for the Biodiesel industry to improve the market situation Foundation was initiated by a conversation between VW and UFOP about the insufficient Biodiesel quality situation: VW announces, that the continuation of the Biodiesel release policy will depend from the improvement of the Biodiesel quality level in the market. Today: -Implementation and verifying of a QA system for Biodiesel in Germany applied beginning from the production over the storage companies to the petrol stations -AGQM has introduced 11/2006 an international certification process for Biodiesel producers -Support of R&D in all fields leading to an estate property level for Biodiesel -Knowledge base for the application of Biodiesel Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 2
3 Biodiesel at Public Filling Stations Biodiesel sales (public filling stations) Thousand Litres Heavy duty vehicles Passenger cars (registration ratio passenger cars/heavy duty vehicles since 2004) Source: AGQM Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 3
4 Biodiesel Use Distribution in Germany (2006) t t t Passenger cars (public filling stations) Heavy duty vehicles (public filling stations) Heavy duty vehicles (fleet filling stations) Biodiesel for agriculture t Biodiesel for B t Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 4
5 Biodiesel Promotion by Tax Exemption/Other Measures Period B100 B5 Taxation Tax Rate Condition Tax Rate to 12/2003 No - Not allowed - 1/2004 to 7/2006 Yes 0,00 /L Voluntary 0,00 /L 8/2006 to 12/2006 Yes 0,09 /L Voluntary 0,15 /L 1/2007 to 12/2011 Yes 0,09 /L, stepwise increasing tax rate up to 0,45 /L Quota system based on biofuels energy content ratio (partial and total quotas) 0,47 /L From 1/2010 0,45 /L, but political discussion is going on, way is not clear Can B10 realized from technical and commercial position???? Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 5
6 Energy Tax Law (I) Quota system, mandatory blending without tax exemption: Diesel market: ,4 % (cal.) Gazoline market: ,0 % (cal.) ,0 % (cal.) Additional total quotas : ,75 % (cal.) ,0 % (cal.) The quotas had to be accomplished on the stage of the tax warehouses => mandatory for: mineral oil industry, traders and the biofuel industry Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 6
7 Energy Tax Law (II) Preconditions for a tax relief and to accomplish the quota are the following specifications: - Biodiesel DIN EN Pure plant oil DIN V Bioethanol - 99 Vol. % alcohol content (+ future standard) No charging of oil and fats which are used directly in the mineral oil refinery process, but separate hydrogenation process like NExBTL will be accepted No taxation till 2015 on: - Synthetic Biofuels (biomass to liquid btl fuels) - Bioethanol from cellulosis - E85 => but: Annual report about overcompensation Reports contain also the real environmental advantages of biofuels like CO 2 - reduction potential and sustainable cultivation of arable land Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 7
8 European Biodiesel- (FAME) Capacities (1000 Tons) Country Production Capacity Germany Italy Great Britain France Spain Austria Czech Republik Lativia n.a Denmark Portugal n.a Greece n.a. n.a Slovakia Lithuania 5 n.a Sweden Benelux n.a. n.a Estonia n.a. n.a. n.a. n.a. 110 Finland n.a. n.a. n.a. n.a. 170 Ireand, Malta, Slovenia, Hungaria, Cyprus n.a. n.a. n.a. n.a. n.a. Total % Germany 39% 42% 50% 45% Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 8
9 Possible causes for problems or damages while using Biodiesel Damages or problems may be caused by inapplicable car technology (materials, improper interaction of components) origin: car producer missing specials knowledge about Biodiesel origin: trader, customer improper quality origin: producer, trader (recently not well detected problems) Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 9
10 Examples for damages Ageing polymer deposits Deposits caused by Biodiesel with low oxidation stability Source: Robert Bosch GmbH Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 10
11 Fuel Quality Requirements Biodiesel application fields B100, Public filling stations B100 Own (fleet) filling stations B5 General use 1 [+ energy tax law + quota system, started 2007] DIN EN 14214/10. BImSchV 1 additional: AGQM licence agreement: - oxidation stabilizer - limited fatty acid profile - registered trace back DIN EN (10. BImSchV) 1 DIN EN 590/10. BImSchV 1 component must be: DIN EN additional (mineral oil ind.): - limited fatty acid profile - water content max. 300 mg/kg Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 11
12 Product Quality and Supply Chain -Rawmaterial - Transesterification - Purification - Additive use - Quality policy X - Contamination with other fuels/chemicals (preloading) - Improper loading/ unloading prozess - Accumulation of sump phase - Storage contamination with (single) bad portions X X - Accumulation of sump phase and water - storage related degradation of oxidation stability - Missing low temperature stability caused by storage management failure X X 10. BImSchV Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 12
13 Internal and External Control of Producers Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 13
14 Measures for Quality Management Step Concept of the quality management QAaudit Unannounced checks of the product Round robin tests Advanced training for QA and laboratory staff Special inform. about handling of Biodiesel Licence agreement (sign) Production Intermediate storage Transportation/Trade Pump station Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 14
15 QM Concept: Additional Requirements related subjects: - Production (including raw materials) - Loading - Transportation - (Intermediate) storage Requirements exceeding the DIN EN will be adapted on new requirements permanently Property Unit Limits Responsible: Method min. max. Water content mg/kg Producers All members EN ISO Total contamination mg/kg 20 All members EN Oxidation stability, 110 C h 6* All members EN CFPP: 19/10 to 28/02 (in leap years to 29/02) C -20 Producers EN 116 Fatty acid profile % (m/m) Restricted profile For selling at public pump stations EN * Biodiesel producers have to add and to declare oxidation stabilizers. Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 15
16 QM Concept: Additional Requirements (Fatty acid profile) Property Unit Limits Method min. max. Fatty acid profile [C18:1] Sum [C18:2] + 2 x [C18:3] Sum [ C17:x] [C18:0] Sum [ C20:0] % (m/m) 50 47,5 10,0 3,0 3,5 EN This condition is valid for supply of public filling stations (B100) and is recommendet also for other.application fields. Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 16
17 Identification of Biodiesel AGQM label for public filling stations with license agreement According to the ordinance for fuel quality and labelling (10. BImSchV) Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 17
18 Basic information for handling of Biodiesel Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 18
19 Typical control parameters of AGQM at public filling stations Only example report! Separate determination of all glycerol/glycerid parameters Separate determination of all alkaline/ earth alkaline elements Test for the 13 most important fatty acids as an indicator for the required fatty acid profile Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 19
20 Results of the AGQM work / (detected) quality situation Old problems Recent problems Methanol contents Water content Glycerol/ Glycerids CFPP (winter time) Oxidation stability Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 20
21 Outlook The changes in German Energy Tax legislation (1/2007) have caused a big influence to the Biodiesel market, mainly to the B100 market. Quality assurance is now also a subject of the Energy Tax Law. Energy quota will not compensate the B100 market loss caused by increasing partial taxation of Biofuels. The focus on only a few (big) customers and the increasing capacity will tighten the competion between the Biodiesel producers. Biodiesel which not meets the specification causes harmful damages. AGQM has established a well introduced QA system for Biodiesel. AGQM has introduced an international certification process for Biodiesel producers. The system is based on established and acknowledged AGQM procedures and documents. This system includes control and support. A worlwide co-operation is needed for more R&D activities and to create a worldwide agreed specification (also for mixtures). Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 21
22 Contact: AGQM (Association Quality Management Biodiesel reg. Ass.) Claire-Waldoff-Str Berlin Tel.: +49 (30) Fax: +49 (30) info@agqm-biodiesel.de Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 22
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