Strategy for Biomass and Biofuels
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1 Strategy for Biomass and Biofuels Peter Tjan Secretary General European Petroleum Industry Association (EUROPIA)
2 Biomass is a limited resource for which there are competing demands Peter Tjan Secretary General FOOD European Petroleum Industry Association (EUROPIA) POWER PAPER & PULP FUELS HEAT 2
3 EU cannot produce enough conventional biofuels to meet current indicative targets 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% Fraction of total road fuels market replaced TODAY FUTURE Today Future Conventional Biofuels current technology Max ethanol Max syn-diesel future advanced biofuels options 3
4 Clear priorities need to be set to evaluate biomass application options Security Of Supply GHG avoidance Competitiveness??? 4
5 Clear priorities need to be set to evaluate biomass application options Security Of Supply AGRICULTURE GHG avoidance Competitiveness 5
6 Only biodiesel will contribute to SoS Bio-ethanol will only add to large gasoline surpluses 19 Mln Tons Gasoline 25 Mln Tons Diesel Source: AIE + est. STD,
7 Conversion of biomass to biofuels consumes significant energy MJ/100 km Gasoline PISI EtOH, EtOH, EtOH, Wheat, NGWheat, NGSugar cane boiler GT+CHP (Brazil) EtOH, Farmed wood Total energy Diesel DICI RME Syndiesel, Farmed wood 7
8 but advanced biofuels (and Brazilian ethanol) reduce the fossil energy required MJ/100 km or g CO2 / km Total energy Fossil energy 0 Gasoline PISI EtOH, EtOH, EtOH, Wheat, NGWheat, NGSugar cane boiler GT+CHP (Brazil) EtOH, Farmed wood Diesel DICI RME Syndiesel, Farmed wood 8
9 however, stationary applications give greatest fossil energy savings Wood to electricity Wood to road fuels Conventional biofuels GJ fossil energy avoided / ha / a 9
10 Stationary applications also give greatest GHG avoidance Wood to electricity Wood to road fuels Conventional biofuels Range of CO2 avoidance from biomass use t CO 2 avoided / ha / a 10
11 Large variations in GHG performance, dependent on source and production pathway EtOH wheat NG WTW GHG Emissions g CO2 eq / km EtOH EtOH, wheat NG sugar EtOH, Diesel farmed DICI RME Syn diesel boiler GT + CHP cane wood farmed (Brazil) wood 11
12 EU biofuels are costly: imports are attractive (and necessary) Source: 2002 World Bank US$ per Liter 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 Oil seeds (US) Oil seeds (EU) +145% Sugarcane (Brazil) Maize (US) Wheat (EU) Sugar beet (EU) Biodiesel Ethanol 12
13 Conclusions Biomass is limited resource therefore clear EU policy objectives must be set to evaluate competing options for biomass use. The EU cannot produce enough conventional biofuels to meet current indicative targets. Within the energy sector biomass in stationary applications like power and heat offer best energy efficiency and GHG avoidance. The costs of todays biofuels exceed significantly those of conventional fuels. Any future ambitions should reflect: A realistic assessment of domestic crop availability that can be grown in a sustainable manner Competing demands for crops and land use and their impact on raw material costs and food prices Access to imported crops and biofuels Specific Member State conditions for cultivation and use of biomass 13
14 Conclusions (2) Achievement of aspirations will require unrestricted access to imported biofuels and crops with the added benefit of reduced costs and enhanced GHG benefits. Given the large differential in biofuels performance, any legislation or tax treatment should promote the development and use of biocomponents that deliver greatest GHG avoidance and energy substitution potential at lowest costs Promotion of bioethanol only adds to Europe s already large surplus of gasoline. Only biodiesel will contribute to Security of Supply. Any EU Biofuels & Biomass regulation should provide flexibility to cope with large differences among Member States. 14
15 Thank You
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