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ExCo54 Doc 04.06 BTL-Fuels for the Transportation Sector - Volkswagen s View on Future s and Fuels - Dr. Hartmut Heinrich IEA Bioenergy, ExCo54 Ottawa, 6th October 2004 Main Topics Change in environment related development topics Energy Greenhouse gases CO 2 Exhaust emissions CO,NOx,HC,PM 1990 1995 2000 2005 2010 2015 2020 2025 Year

Trends in Passenger Car Emissions 1.400 1.200 Germany 800 700 [kt/a] 1.000 600 CO [kt/10] CO2 [kt/100] 800 500 HC [kt] NOx [kt] 400 600 Particulate [kt*10] Mileage [Mrd. km] 300 400 200 200 100 0 0 1980 1985 1990 1995 2000 2005 2010 2015 2020 Year source: IFEU (TREMOD) [Mrd. km/a] Self Commitment of European Car Manufacturers (ACEA) CO 2 -Emissions [g/km] 200 new passenger car fleet 180 gasoline + diesel 160 140 diesel -25% target 140 g/km 1995 2000 2005 2010

World Energy Demand 1250 ExaJoules 1000 750 500 The Spirit of the Coming Age New Renewables Hydro Nuclear Gas exa=10 18 1 Exajoule=34,12 Mio t SKE Source: Shell International Ltd 250 0 1970 1990 2010 2030 2050 Oil Coal CH4/H2 Coal Traditional Conclusions economical use of existing energy resources by further improvement of the efficiency of the vehicle introduction of renewable fuels with CO 2 - free or CO 2 - neutral pathes into the transportation sector

Fuels fuels conventional SynFuels alternative diesel GTL GTL ** alcohols gasoline BTL BTL **/ **/ SunFuel * GTL: Gas to Liquids ** BTL: Biomass to Liquids biodiesel natural gas gas hydrogen Demands on Future Fuels - 1 safe supply easy handling and storage high energy density economically competitive consideration of environment and climate protection - low emissions (CO, HC, NO x, PM) - low CO 2 - emissions diesel LPG ethanol biodiesel gasoline DME No Single Energy Carrier will be Able to Fulfill these Demands methanol natural gas hydrogen

Demands on Future Fuels - 2 gasoline ethanol methanol not to diversify on the fuels side economically unacceptable solution DME but to blend into existing fuels relating to existing fuel specifications methanol, ethanol, biodiesel diesel biodiesel LPG natural gas no hen and egg - problem hydrogen to diversify on the primary energy side fromcrudeoil to natural gas, coal and biomass Challenges of the Future Renewable fuels for the transportation sector renewable liquid fuels biomass SunFuel (BTL), Biodiesel, Bioethanol renewable gaseous fuels biomass and/or renewable electricity hydrogen

Volkswagen Scenario for the Evolution of Fuels Gasoline/ Diesel based on crude oil SynFuel based on natural gas, (coal with sequestration) Evolution of Fuels Hydrogen based on renewables SunFuel based on renewables Simplified Synthetic Fuel Production Process coal, natural gas O 2 C- and H- carrier synthesis raw gas generation gas cleaning biomass synthesis gas (H 2, CO, CO 2 ) Fischer-Tropschsynthesis hydrotreatment SynFuel CTL(sequestration) GTL BTL(SunFuel)

Synthetic Fuels: Categories of Improvement 1. Direct improvement of local air quality by usage of synthetic fuels in existing vehicles based on the outstanding purity of the fuels 2. Reduction of global CO 2 -emissions if biomass is used as primary energy for synthetic fuels 3. Possibility to develop new combustion systems with widely improved characteristics based on the designability of synthetic fuels Fleet Test Trial in Berlin 2003 25 vehicles, 5 months 0,3 Limits EU 4 Diesel < 10ppm S NO x = - 6,4% Part. = - 26% Shell GtL emissions [g/km] 0,2 0,1 0 HC = - 63% CO = - 91% EU 4 NO x particulates 10 HC CO

Dies ist der Untertitel Shell GTL Retail-Worldwide Thailand Greece Germany Shell Pura Diesel Shell Diesel 2004 Shell V- Power Diesel launched in Bangkok launched 8 July 2003 in Launched 4 June 2004 in 2002 Athens in Hamburg blend of standard diesel, Shell GTL and an additive emissions benefits, better engine performance Source: Shell Global Solutions CO 2 cycle with SunFuel Biomass Synthesis SunFuel

Classification of Synthetic Fuels Synthetic Fuels Conventional Biofuels Process GTL (Gas to Liquid) BTL (Biomass to Liquid) CTL* (Coal to Liquid) e.g. RME*, Ethanol Group SynFuel SunFuel SynFuel * RME: Rapeseed Methyl Ester = Biodiesel - SunDiesel - = 2nd generation of advanced biofuels * with sequestration = 1st generation of biofuels SunFuel-Production by CHOREN s Carbo V Process Procedure scheme: Pyrolysis-Gas Entrained Flow Gasifier Biomass LTG* Cleaning Source: CHOREN O 2 Fischer-Tropsch- Reactor Stabilisor Coke Slag * Low Temperature Gasifier C 1 - C 4 (5%) Hydrocracker Synthesis Gas Desulfurization (Adsorption) SunFuel

CarboV Test Facility CHOREN Capacity: Input: 1 MW thermal wood Straw Green plants Shredder-Light-Fraction Coal Products: currently: BioSynGas el. power Diesel max. 600ltr/day Kerosene Methanol SunDiesel SunFuel-Production from Black Liquor Procedure scheme: Black Liquor Water Entrained Flow Gasifier Cleaning O 2 Fischer-Tropsch- Reactor Stabilisor Slag Synthesis Gas C 1 - C 4 (5%) Hydrocracker Desulfurization (Adsorption) SunFuel

Liquid Biofuels litres per year and hectare cereals energy crops Ethanol 1.653 l gasoline equivalent SunDiesel 3.101 l diesel equivalent Biodiesel 1 hectare 1.183 l diesel equivalent rapeseed Neat Rape-Oil 1.254 l diesel equivalent Source: FNR (Fachagentur Nachwachsende Rohstoffe, Germany) Combustion System Development synthetic fuels enable new optimized combustion processes combination of the emission behavior of the petrol engine with the excellent efficiency of the diesel engine port injection Combined Combustion System swirl chamber Petrol Engine direct injection wall guided direct injection Diesel Engine direct injection spray guided direct injection auto ignited partial homogenized applied ignition high-pressure injection

Renewables2004 SunDiesel-Demonstration Fleet Renewables2004 Press Release Moving away from oil with alternative fuels Dr Hermann Scheer Member of the German Bundestag German Bundestag Platz der Republik 1, 11011 Berlin K +49 (0)30 227 73 834 M +49 (0)30 227 76 528 x hermann.scheer@bundestag.de http://www.hermann-scheer.de At the International Forum on Renewable Energies in Bonn, DaimlerChrysler and Volkswagen present their joint alternative fuel strategy with fuels produced by Shell and Choren Statement by Dr. Hermann Scheer, Member of the Bundestag and Chairman of the International Parliamentary Forum on Renewable Energies: Bonn, 29 May 2004.. I therefore welcome the interest shown and active measures taken by DaimlerChrysler and Volkswagen to make SunDiesel manufactured by Choren Industries part of an alternative fuel strategy...

Volkswagen s Fuel- and Strategy Crude Oil Reg.-H Natural Gas 2 Coal Biomass Reg.-H 2 CO 2 Gasoline, Diesel Synthesis Gas (H 2, CO, CO 2 ) spec. CO 2 -Emissions [g CO 2 /km] FSI,TDI opt. Gasoline and Diesel SynFuel Diesel Gasoline Mild Hybrid FSI,TDI special SynFuel - Transition to SunFuel Engine with CCS -Hybrid- Combustion Hydrogen Fuel H 2 - Fuel Cell Today 10 20 Years 30 SunFuel : The Route into a Sustainable Future Thank You For Your Attention