Delegations will find attached Commission document SEC(2006) 1167.

Transcription

1 COUNCIL OF THE EUROPEAN UNION Brussels, 26 September /06 ADD 1 Interinstitutional File: AGRI 297 AGRISTR 38 AGRIFIN 78 AGRIORG 76 ENV 491 ENER 217 COVER NOTE from: Secretary-General of the European Commission, signed by Mr Jordi AYET PUIGARNAU, Director date of receipt: 25 September 2006 to: Mr Javier SOLANA, Secretary-General/High Representative Subject: Commission staff workíng document - Annexes to the report from the Commission to the Council on the review of the energy crops scheme (under Article 92 of Council Regulation (EC) n 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers) Delegations will find attached Commission document SEC(2006) Encl.: SEC(2006) /06 ADD 1 mlp 1 DG B II EN

2 COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, SEC(2006) 1167 COMMISSION STAFF WORKING DOCUMENT ANNEXES to the report from the Commission to the Council on the review of the energy crops scheme. (under Article 92 of Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers) {COM(2006) 500 final} EN EN

3 Annex I Areas under aid for energy crops 2004 areas paid, 2005 areas claimed (based on MS communications according to Article 3(b) and (c) of Commission Regulation (EC) No 1973/2004 ) Country Area (hectares) Belgique/België Česká Republika Danmark Deutschland Eesti Ellas España France Ireland Italia Kypros Latvija Lietuva Luxembourg Magyarország Malta Nederland Österreich Polska Portugal Slovenija Slovakia Suomi/ Finland Sverige United Kingdom Total No communications required from: CZ, EE, CY, LV, LT, HU, PL, SK (applying SAPS) EN 2 EN

4 Annex II Composition of crops under Aid for energy crops in 2004 (based on MS communications according to Article 44(a) and (b) of Commission Regulation (EC) No 1973/2004) Total area Short rotation forest trees Beans (pois, fèves) Grass (herbe) Miscellan eous Belgique/België 12,90 12,90 Česká Republika Danmark 4 850, ,00 Deutschland ,91 0,51 40,88 1, ,92 7,72 465, ,68 289,62 Eesti Ellas España 6 976,41 347,64 405, ,96 France , , , ,55 Ireland 418,79 418,79 Italia Kypros Latvija Lietuva Luxembourg 136,07 2,66 133,41 Magyarország Malta Nederland 142,57 142,57 Österreich 4 372,00 20,05 12,50 739,32 271,95 2, ,87 Polska Portugal Slovenija 291,76 291,76 Slovakia Suomi/ Finland 3 475, ,31 13,31 10,82 Sverige , ,00 117, ,00 858,00 United Kingdom , ,84 Total , ,00 20, ,35 1,15 0, , ,31 2, , , ,58 Percentage 100,00% 2,97% 0,01% 1,13% 0,00% 0,00% 78,74% 1,67% 0,00% 1,74% 3,64% 2,38% Soya (soja) Rapeseed or Colza (navette) Areas (ha) of which Oil seeds Sunflower (tournesol) Others Wheat (blé) Maize (maïs) Barley (Orge) Cerea EN 3 EN

5 Production of biodiesel in the EU (table 1) Annex III Biodiesel production in the EU The biodiesel production in the EU-25 has expanded from 1.9 Mt in 2004 to almost 3.2 Mt in 2005, what represents a remarkable growth of 68% on a year. Germany remains the main producer with a total of 1.7 Mt of biodiesel produced in Other key producers are France (almost 0.5 Mt) and Italy (0.4 Mt). The EU-25 is the leading producer of biodiesel on the global market far ahead of the US occupying the second and producing only around 0.25 Mt in It is important to note also the growing presence of the new Member States which since their accession increased the production of biodiesel from t in 2004 to t in Most rapid increase took place in Poland (where the biodiesel production only started in 2005 with t) and the Czech Republic ( t). Production capacity (table 2) The growing demand for biofuels in Europe has led to major investments in production facilities across the Continent. This trend could be observed for the last years, in particular since The EU-25 production capacity is currently estimated at around 6.1 Mt, increasing sharply from 4.2 Mt in 2005 (up by 45%). The Member States which are particularly involved in the development of biodiesel are: Germany (current production capacity of 2.7 Mt), Italy (0.86 Mt), France (0.78 Mt), the UK (0.45 Mt), Spain (0.2 Mt). Regarding the new Member States, an interest in biodiesel has been growing since 2004 and their production is estimated currently at about 0.4 Mt. Among those Member States the most advanced are: the Czech Republic (production capacity in place of about t), Poland ( t) and Slovakia ( t). Smaller projects are also being developed by other countries e.g. Estonia ( t), Slovenia ( t) and Hungary ( t). For the time being most of the production of those countries is being exported to Germany or Austria and the domestic consumption for the time being is low (e.g. in the Czech Republic only t were sold on the home market). Future forecast Taking into consideration the recent developments it may be expected that the production of biodiesel will continue to expand. Further investments are planned in almost all Member States in particular in Germany, France and Spain. The total production capacity may reach 8.0 Mt in 2007 and the actual production 4.5 Mt. Concerning the new Member States, it is expected that with more concrete measures being taken up by the governments in order to promote the use of biofuels and to fulfil the objectives of the Biofuels Directive, the production capacity of the EU-10 may reach up to EN 4 EN

6 0.8 Mt in For example in Poland the production of biodiesel may surge to 0.5 Mt by 2010 if the government sticks to plans to introduce new legislation for the industry in June. The EU rapeseed supply and demand (tables 3-4) The rapeseed area in the EU continues to increase and according to Oil World it should reach 5.0 million ha for the crop to be harvested in 2006, up by 0.3 million ha from one year and by 0.9 million ha from three years earlier. The 2006/2007 rapeseed production is estimated at Mt, up only by 0.8 Mt from last season. It is likely that the rapeseed crush capacity will be boosted by around 2 Mt next year due to new plants and some investments which will transform soybean crushing units into multi-seed facilities. The estimated rapeseed crushings are set to rise by at the most 1.5 Mt, depending on the level of rapeseed imports (forecast at present at a record level of 0.75 Mt) and to reach Mt in 2006/07. As for the rapeseed oil, the total consumption is estimated to increase by around 1.0 Mt in Oct/Sept 2005/06. Despite the booming rapeseed crushings, the increase in rapeseed oil output to around 6.0 Mt will not be sufficient to cover demand for food and non-food. As a result, the EU will for the first time become a net importer of rapeseed oil. The imports (coming mainly from Canada, Australia and Romania) are estimated to reach around 0.3 Mt this season. The EU consumption of rapeseed oil for food will decline slightly but consumption for nonfood is set to increase by almost 1.1 Mt to a record 3.66 Mt, more than threefold of what was consumed four years ago. This season a record 58% of the rapeseed oil will be either used for production of biodiesel or directly as refined rapeseed oil for fuel. In fact there are some concerns whether there will be enough vegetable oil available to operate the European biodiesel capacity in a year or two. The EU will need an additional crush capacity to extract the oil from the rapeseed. Taking into consideration the very high prices for rapeseed oil, we can expect a continuous increase of imports of different oils (soybean oil, rapeseed oil and palm oil). EN 5 EN

7 Table 1 Production of biodiesel (1 000 t) COUNTRY Germany France Italy Austria Spain Denmark UK Sweden Czech Republic Slovakia Lithuania 5 7 Poland 100 Slovenia 8 Estonia 7 Latvia 5 Greece 3 Malta 2 Belgium 1 Cyprus 1 Portugal 1 TOTAL EU Source: EBB (limited data availability from NMS in 2002 and 2003) EN 6 EN

8 Table 2 Biodiesel production capacity (1 000 t) COUNTRY Austria Belgium Cyprus 2 2 Czech Republic Denmark Estonia Finland 0 0 France Germany Greece Hungary 0 12 Ireland 0 1 Italy Latvia 5 8 Lithuania Luxemburg 0 0 Malta 2 3 Poland Portugal Slovakia Slovenia Spain Sweden UK NL 0 0 TOTAL EU Source: EBB (limited data availability from NMS in 2003 and 2004) EN 7 EN

9 July/June Table 3 EU-25 Rapeseed supply and demand (Mt) 2001/ / / / /06* 2006/07* Initial stocks Production Imports extra-ue Exports extra-ue Crushings Other use (a) Final stocks Source: Oil World 21 April 2006, * - estimates October/September Table 4 EU-25 rapeseed oil utilisation (1000 t) 2001/ / / / /06* Total Food sector Non-food sector (a) thereof RME biodiesel (b) Direct use (c) (a) mainly biodiesel (b) rape methylester (c) direct use of refined rape oil as fuel Source: Oil World 21 April 2006, * - estimates EN 8 EN

10 Annex IV Bioethanol production capacity in the EU Source of information The following overview on the evolution of the bioethanol production capacity installed in the EU is based on the information found in the specialized press and the data provided by the representative sector organizations (in particular the European Bioethanol Fuel Association) on the bioethanol for fuel plants currently in operation as well as the processing units planned. The information considered has been collected until May However these are "dynamic" data and need to be regularly updated. Press notices on new investments announced by the industry are quite frequent and make it difficult to establish a reliable forecast on the production capacity for the coming years. These investments have been classified into three categories: plants under construction which will become operational in brief, investments likely to be realized and other announced projects which implementation remains uncertain for the time being. Evolution of bioethanol production capacity in the EU Expansion of EU bioethanol industry accelerated over the last few years and is expected to continue in the short term if new investments announced come on stream. According to EurObserver, the EU's production capacity amounted to t in 2003, being Spain, France and Sweden the only EU-15 producing countries at that time. In a very short period, Germany has moved into first place: compared to 2004, production capacity more than doubled after two new processing plants were built in EU capacity has almost trebled in two years up to more than 1 million tonnes in 2005 and could exceed 1.7 million by the end of EU bioethanol annual production capacity (tonnes) Spain Germany France Sweden Netherlands Italy Poland n.a Czech Rep Hungary Lithuania EU Source: Eurobserver for 2003, DG AGRI estimates for the rest 1. 1 According to certain sources the plant in the Netherlands would primarily produce for the non-fuel market. EN 9 EN

11 As for the future, it is expected that capacity continues to increase considerably more than in the previous years, as many new projects are under way. A total EU installed capacity of nearly 6.4 million tonnes could be reached in two years, although an estimate of 5.5 million tonnes by the end of 2008 seems more realistic. EU bioethanol annual production capacity forecast 2 (tonnes) Announced Likely Announced Likely Belgium Denmark Germany Spain France Ireland Italy n.a n.a Netherlands Austria Sweden UK Czech Rep Hungary Latvia Lithuania Poland Slovakia Slovenia EU Source: DG AGRI, various sources Taking into account EurObserver's figures on EU bioethanol production in 2004 ( t) the capacity utilization rate was about 65%, compared to 89% in This low rate may be explained because of the difficulties in starting of operations of certain new processing plants (particularly in Germany) which could not become fully operational at the end of the year. Processing plants The number of EU countries with a bioethanol industry could double in the next two years. The main current producing countries, like Spain, France or Germany would consolidate their position whilst other countries from the EU-N10 group like the Czech Republic, Poland and, in particular, Hungary could emerge as major producers. 2 Column "Announced" refers to the totality of new projects known, while "Likely" only includes plants under construction and investments likely to be realized. In both cases it is assumed that current capacity will continue to be in operation. EN 10 EN

12 Number of current operational bioethanol plants in the EU and forecast Belgium 2 2 Denmark 0-2 Germany Spain France Ireland Italy Netherlands Austria 1 1 Sweden UK 1 3 Czech Rep Hungary Latvia 1 1 Lithuania Poland Slovakia 1 1 Slovenia 0-1 EU Source: DG AGRI, various sources In 2005 there were 17 bioethanol plants in operation in the EU. The average ethanol factory had a capacity of tonnes, quite lower than in the main world producing countries like Brazil or the USA ( t in 2004) 3. France, with tonnes per plant, had the lowest average capacity whilst average size in Spain or Germany remained at around tonnes. 3 Source: Ethanol production costs report by F.O. LICHTS. EN 11 EN

13 Bioethanol plant sizes (annual capacity in tones) in EU 4 number of plants < Source: DG AGRI, various sources While in 2005 and 2006 most processing plants have an annual capacity lower than tonnes of bioethanol (11 plants below t out of a total of 17 in 2005 and 13 out of 23 in 2006), it is expected that the size class of to tonnes become the largest in 2007 and, especially, in This trend towards larger sized plants contributes to make bioethanol production more competitive, since with larger plants greater economies of scale can be achieved. Raw materials processed In 2004 ethanol production in the EU is estimated to have used around 1,2 million tonnes of cereals and 1 million tonnes of sugar beet as the raw material. Apart from France where 75% of bioethanol is obtained from sugar beet the majority of EU plants process grains, being in general flexible as for the type of cereal. On average, a conventional ethanol refinery may produce some 290 kg of bioethanol per ton of cereals. Using maize as raw material gives the best processing yields: more than 300 kg per ton, while barley and rye bring in about kg bioethanol per ton. In addition to its lower conversion efficiency, rye has the disadvantage that the by-product obtained (DDGS) is less valuable as feedstuff, since it contains more bitter substances and is a sticky and smelly matter and 2008 forecast considers all existing plants continue to be operational and all announced investments are successfully implemented. EN 12 EN

14 Sugar beet conversion rate is estimated at about kg of bioethanol per ton of raw material. However, as a consequence of its higher yield per hectare, this is the most efficient crop in terms of surface needed to produce one ton of bioethanol: 0.22 ha compared to 0.64 ha for wheat or 0.47 ha for maize 5. Most of existing plants and plants under construction/planned will run on cereals, although the number of sugar factories scheduled to be rebuilt into bioethanol facilities have increased since the sugar sector reform was approved. A rough estimate on the raw materials that industry may process in 2006 on the basis of the installed processing capacity shows that about 3.7 million cereals and a bit more than 5 million tonnes sugar beet could be used as feedstock. 5 Average EU yields considered: t/ha for sugar beet, t/ha for wheat and t/ha for maize. Source: Eurostat or where available. EN 13 EN