AFRICAN REFINERS ASSOCIATION BIOFUELS CONFERENCE th June 2012 ARA Biofuels Conference Luanda

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1 AFRICAN REFINERS ASSOCIATION BIOFUELS CONFERENCE

2 What are biofuels? Biofuels are a biodegradable energy source produced from renewable sources Any fuel with a minimum of 80% content by volume of materials derived from living organisms harvested within 10 years preceding manufacture can be classified as biofuel. Biofuel production is relatively easy to setup, creates new jobs within both producing and consuming countries, reduces the oil import bill, and can support development of a country s agricultural sector and overall economic development However, the improvement of energy security, rural development, and the reduction of greenhouse gas (GHG) emissions - bestowed by the use of biofuels in the transport sector - depend on the ways in which biomass is grown and converted into biofuels, i.e. the biofuels system as a whole. 2

3 What are biofuels? Ethanol is an alcohol produced by the biological fermentation of carbohydrates derived from plant material (bio-ethanol). It can be used either directly in cars designed to run on pure ethanol (hydrated ethanol, which usually has about 5% water content), or blended with gasoline (at up to 25%) to make gasohol. Dehydrated (anhydrous) ethanol is required for blending with gasoline. Usually no engine modification is needed to use the blended ethanol, and it can be used as an octane-boosting, pollutionreducing additive in unleaded gasoline, instead of chemical additives such as MTBE or Manganese. At present, Brazil is the only country that uses ethanol as both 100% substitute for gasoline and as a gasoline blendstock. In all other countries that utilise biofuels, ethanol is blended with gasoline in varying proportions. 3

4 What are biofuels? Biodiesel is a synthetic, diesel-like fuel produced from vegetable oils, animal fats or recycled cooking grease Biodiesel is typically made in a chemical process called trans-esterification that produces methyl esters (FAME) and glycerine, a valuable by-product used in soaps and other products It can be used directly as fuel, which requires some engine modifications, or blended with petroleum diesel and used in diesel engines with few or no modifications 4

5 ARA Biofuels Policy Paper This Paper was requested by the ARA Executive Committee to better inform Members on the impact of the introduction of biofuels onto the African continent Its purpose is NOT to determine the economics of biofuels in individual African countries but to help provide the framework for biofuels evolution across Africa and to support a fungible supply chain It recommends correct handling systems for biofuels so as to minimise health and safety risks as well as the risk of fuel contamination through poor liquid fuel management. 5

6 ARA Biofuels Policy The IEA has indicated that the relationship between agricultural and petroleum economics is so complicated that it introduces a high degree of uncertainty in cost-benefit analyses of the development of the biofuels industry, and even of specific projects. Development of a biofuels industry in a country has the potential to increase food and land prices The benefits for developing countries economies may outweigh the costs, but the conditions determining the balance are different in each country. Biofuel production projects should be looked at on a case-bycase basis and evaluated in the light of specific circumstances such as economic conditions, climate, land and workforce availability, market size, fuel distribution and storage infrastructure, and car fleet characteristics. 6

7 ARA Biofuels Policy Proper formulation of biofuels can help assure lower emissions of conventional fuel pollutants The ARA considers that the key to achieving low emissions is to sustainably produce good quality blendstocks and to blend and distribute the finished fuels in a way that preserves their quality when they reach the consumer 7

8 ARA Biofuels Policy Transport is about moving people and goods in vehicles with the corollary that space and weight come at a premium The high energy density of liquid fuels - including biofuels - are therefore a key attribute To date no practicable non-liquid alternative energy source has come close to achieving this energy density Another fundamental reality is that there are large established vehicle fleets and fuelling infrastructures and these cannot be changed or replaced overnight (or even within a much longer time-frame) A fuel supply chain exists and must continue without even minor disturbances to enable uninterrupted economic activity. 8

9 ARA Biofuels Policy The ideal bio-fuel for transport is a liquid with maximal energy density, like its conventional fossil fuel counterpart It should also be fungible with existing hydrocarbon fuels to enable blending in various proportions without creating major problems within distribution infrastructures or vehicles This points to liquids with hydrocarbon-like molecules As a mainstream transport fuel bio-fuels must be capable of being used by consumers without any modifications to their vehicles Fuels containing biofuels are common and accepted in many markets now: examples are gasoline containing up to 5 per cent and up to 10 per cent ethanol (E5 or E10 respectively) and diesel containing up to 5 per cent FAME (B5) 9

10 ARA Biofuels Policy Biomass is a renewable but limited resource which, even in optimistic scenarios, considering the current technology, can only be expected to cover a modest fraction of the world s energy needs Reduction of GHG emissions is a major driver for biofuels growth. It is essential that those biofuels that are being encouraged (and often subsidised) by governments lead to substantial reductions of GHG emissions. This calls for globally agreed, transparent methodologies to assess the GHG footprint of biofuels across their life cycle. 10

11 ARA Biofuels Policy The ARA supports the development, ultimate adoption and government enforcement of an internationally recognized, transparent, and accepted certification scheme, such as that presently under development by the Roundtable on Sustainable Biofuels (RSB) or under discussion in ISO (International Standards Organisation) and CEN (Comité Européen de Normalisation) working groups Such a scheme should include a fair and complete assessment of the GHG footprint of biofuels, an assurance on food competition and availability, and an assessment of the environmental and social issues associated with their production Only through this process can biofuel systems be properly assessed for their sustainability credentials. 11

12 ARA Biofuels Policy A biofuels certification scheme should include a fair and complete assessment of the GHG footprint of biofuels, an assurance on food competition and availability, and an assessment of the environmental and social issues associated with their production Only through this process can biofuel systems be properly assessed for their sustainability credentials The ARA also takes note of the work being carried out to evaluate the greenhouse-gas (GHG) emission balance of bioenergy and the possible effects of direct and especially indirect land use changes (iluc) associated with cultivating biomass feedstocks. 12

13 Bio-diesel Recommendations A maximum level of 7% FAME by volume when blended with petroleum-based diesel fuel (B7) The quality of FAME and bio-diesel fuel blends should be carefully monitored throughout the supply chain since biodiesel quality changes over time due to the inherent nature of the fuel Storage conditions, especially temperature, exposure to water and exposure to oxygen which is naturally present in ambient air, influence the rate of oxidation. Anti-oxidant additives can help slow this degradation process and improve fuel stability care must be taken in choosing the correct antioxidant type and amount for maximum effectiveness 13

14 Bio-diesel Recommendations Bio-diesel fuel blends held in storage (including at service stations) should be monitored for changes in acid numbers, as an indicator of fuel degradation. The presence of acids in the fuel can harm injection systems and other metallic components including storage tanks Bio-diesel should be consumed within SIX MONTHS to avoid product deterioration No bio-diesel should be transported through a multi-product pipeline Fuel providers must measure the FAME flash point prior to blending with fossil diesel fuel; since the petroleum component s flash point will be much lower, it is not possible to rely on the blend s flash point measurement to indicate the presence of methanol Since flash point is a critical safety parameter it is important that proper consideration be given to the FAME flash point in handling as well as in hazard classifications for transport 14

15 Bio-diesel Recommendations Possibly due to fuel oxidation and microbiological growth bio-diesel fuel blends may foul and eventually plug dispenser filters which are the last line of defence for ensuring delivery of fit for purpose fuel to the customer s vehicle For this reason, filters should be in good condition and replaced when plugged before resuming product deliveries Attention is drawn to the possibility of spontaneous combustion of rags saturated with FAME under certain conditions 15

16 Ethanol Recommendations Ethanol fuel blends must have uniform properties throughout to ensure a consistent quality Fermentation processes can produce small amounts of methanol, and some countries require a small amount as a denaturant, but methanol has harmful effects so it should be minimized Pure ethanol has a much lower vapour pressure (15-20kPa) than motor gasoline but, when blended with petrol, intermolecular interactions increase the volatility of the hydrocarbon-ethanol blend, most significantly at low concentrations of ethanol. the vapour pressure for delivered fuel should be targeted with an extra margin in order to ensure that marketed fuels do not exceed vapour pressure specifications at the service station 16

17 Ethanol Recommendations Fuel contaminated with water should not be sold to consumer water in the fuel can promote corrosion and microbial growth. Water can enter ethanol during production and through condensation during the fuel s distribution and storage. If the water content is too high, phase separation may occur after blending with gasoline. Undissolved water in the fuel line can cause the engine to run unevenly or stall. 17

18 Ethanol Recommendations Ethanol blends must be clearly labelled at the dispensing pump Blends above 10% ethanol to be used only by dedicated fleets or adapted vehicles CEN standards to be used to establish ethanol, and petrol containing ethanol blends, quality through the supply chain 18

19 Ethanol Recommendations To avoid corrosion and microbial growth, the measurement and control of water levels at each step of the supply chain to be carefully monitored. Fuel contaminated with water should not be sold to consumers Petrol containing ethanol blends should be consumed within SIX MONTHS to avoid product deterioration No ethanol, or petrol containing ethanol blends, should be transported through a multi-product pipeline 19

20 Communications The ARA strongly recommends that before biofuels are introduced into a market comprehensive awareness campaigns and specific training should be launched to the general public and to the fuel retail and distribution trade: The use of biofuels may require expense in vehicle modifications, as well as in storage and distribution systems In many African regions the humid climate poses additional problems when handling ethanol, which is highly soluble. However, Brazil has clearly shown that, with proper controls & handling procedures, such problems can be overcome. With a good communications policy many operational and product quality problems can be avoided. 20

21 Communications Consumer/Service Station leaflet Stakeholder brochure 21

22 We look forward to exchanging views and best practice between us all over the next two days I thank you in advance for your active participation. 22