Biodiesel in Germany A snapshot Who is AGQM? Market situation and quality requirements Legal regulations Quality determining factors Quality assurance system practical solutions Outlook
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
Biodiesel at Public Filling Stations 600.000 Biodiesel sales (public filling stations) 500.000 Thousand Litres 400.000 300.000 200.000 Heavy duty vehicles Passenger cars 360.244 200.070 312.311 366.313 276.288 276.955 100.000 163.196 189.579 172.382 0 2001 2002 2003 2004 2005 2006 (registration ratio passenger cars/heavy duty vehicles since 2004) Source: AGQM Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 3
Biodiesel Use Distribution in Germany (2006) 152.000 t 1.000.000 t 325.000 t Passenger cars (public filling stations) Heavy duty vehicles (public filling stations) Heavy duty vehicles (fleet filling stations) Biodiesel for agriculture 875.000 t Biodiesel for B5 150.000 t Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 4
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
Energy Tax Law (I) Quota system, mandatory blending without tax exemption: Diesel market: 2007 4,4 % (cal.) Gazoline market: 2007 2,0 % (cal.) 2010 3,0 % (cal.) Additional total quotas : 2009 5,75 % (cal.) 2010 6,0 % (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
Energy Tax Law (II) Preconditions for a tax relief and to accomplish the quota are the following specifications: - Biodiesel DIN EN 14214 - Pure plant oil DIN V 51605 - 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
European Biodiesel- (FAME) Capacities (1000 Tons) Country Production Capacity 2004 2004 2005 2006 2007 Germany 1.035 1.205 2.016 3.603 4.033 Italy 320 914 1.038 1.038 1.038 Great Britain 9 31 517 660 910 France 348 434 434 594 894 Spain 13 91 151 322 422 Austria 57 122 127 127 127 Czech Republik 60 112 112 112 112 Lativia n.a. 3 106 106 286 Denmark 70 70 100 100 100 Portugal n.a. 100 100 100 100 Greece n.a. n.a. 80 80 80 Slovakia 15 35 57 57 57 Lithuania 5 n.a. 10 10 10 Sweden 1 5 5 81 81 Benelux n.a. n.a. 3 288 388 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 1.933 3.122 4.856 7.278 8.918 % Germany 39% 42% 50% 45% Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 8
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
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
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 14214 (10. BImSchV) 1 DIN EN 590/10. BImSchV 1 component must be: DIN EN 14214 additional (mineral oil ind.): - limited fatty acid profile - water content max. 300 mg/kg Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 11
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
Internal and External Control of Producers Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 13
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
QM Concept: Additional Requirements related subjects: - Production (including raw materials) - Loading - Transportation - (Intermediate) storage Requirements exceeding the DIN EN 14214 will be adapted on new requirements permanently Property Unit Limits Responsible: Method min. max. Water content mg/kg 220 300 Producers All members EN ISO 12937 Total contamination mg/kg 20 All members EN 12662 Oxidation stability, 110 C h 6* All members EN 14112 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 14103 * Biodiesel producers have to add and to declare oxidation stabilizers. Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 15
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 14103 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
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
Basic information for handling of Biodiesel www.agqm-biodiesel.de Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 18
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
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
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
Contact: AGQM (Association Quality Management Biodiesel reg. Ass.) Claire-Waldoff-Str. 7 10117 Berlin Tel.: +49 (30) 31 90 44 33 Fax: +49 (30) 31 90 44 35 e-mail: info@agqm-biodiesel.de Ankara, 06/04/2007 Biodiesel in Germany - A snapshot 22