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Irish Biofuels : A Laggard or a Leader John Mullins Chief Executive Officer 18 October 2006 3 www.bioverda.com
Agenda Introduction to Bioverda; Global Drivers of Biofuel Industry; Biofuel Technologies; The Case for Irish Biofuels; Case Study: Neubrandenburg, Germany 4
5 Introduction to Bioverda
Total Revenue 468m Group Overview 2006 Market Capitalisation ~ 1.3bn Roads Waste Energy Telecoms 6 100.0% C. R. G. 33.3%
Growth Platform Going Forward Security of Energy Supply Climate Change Resource Depletion Renewable Energy and Sustainable Waste Management 7 IRL UK Other IRL UK US Continental Europe IRL UK US Other
Bioenergy Business Bioverda is focused in three key areas Methane (Landfill Gas and Coal Mine Methane) Biogas (Liquid Waste to Energy) Biofuels (Biodiesel and Bioethanol) Geographic asset focus in Europe and North America Global trading focus for biofuels and CO 2 credits 8
9 Global Drivers of Biofuels
The use of vegetable oils for engine fuels may seem insignificant today, but such oils may become in the course of time, as important as petroleum and the coal-tar products of the present time. Rudolf Diesel, 1912 10
Global Drivers of Biofuels Climate Change Agricultural Diversity Security of Supply Oil Economics Diversification of Risk Resource Depletion Regulatory Supports Global Trade 11
Global Warming is a Hot Topic Global warming is the only problem that has the power to fundamentally end the march of civilization as we know it, and render all the other efforts we are making irrelevant and impossible 12 - Bill Clinton, World Economic Forum, Davos, February 2006
Resource Depletion Oil and Gas Production, Gboe/a 50 40 30 20 10 Non-con Gas Gas NGLs Polar Oil Deep Water Heavy Regular 0 1930 1950 1970 1990 2010 2030 2050 Source: ASPO, www.peakoil.net 13 Price and Supply pressures expected
Are Oil and Gas Politically Stable? Source: OPEC 14 Political stability is not ideal
Energy Security EU Natural Gas 1999 Norway Great Britain Russia 3.000 km Netherlands 1.000 km Deutschland 2.000 km Kazhakstan Ukraine Uzbekistanstan France Romania Azerbaijan Turkeyenistan Algeria Libya Egypt 15 Source: Gerhard Schroeder, Chancellor of Germany s presentation to Vladimir Putin, 2004
Energy Security EU Natural Gas 2025 Russia 3.000 km 1.000 km 2.000 km Turkeynistan 16 Source: Gerhard Schroeder, Chancellor of Germany s presentation to Vladimir Putin, 2004
Oil Price Volatility 17 Average oil price between 55 and 75 per barrel expected
18 Oil Price Trend
19 EU Regulations
20 EU Biodiesel Projections
21 Biodiesel is key in Europe
Biodiesel Costs Source: Lurgi GmbH 22
Vegetable Oil Prices Rape Sun Soya Palm 23 Source: Oilworld
World Ethanomics 24 Ethanol in Europe requires mandate/subsidy
25 US Ethanol: Past and Future
Impact of World Trade Argentina: Crushings of Soybeans (Mn T) 26 Source: Oilworld
27 Biofuels Technologies
28 Feedstocks for Biodiesel
29 Biodiesel Process
30 Biodiesel Process
31 Ethanol Process
32 2 nd Generation Production
33 The Case for Irish Biofuels
Sources of GHG Emissions in Ireland 34 Source: EPA Ireland
Ireland s GHG Emissions Projections LUCF: Land Use Change & Forestry 35 Source: Byrne Ó Cléirigh (March 2006) Determining the Share of National Greenhouse Gas Emissions Trading in Ireland 2008-2012
Biofuels : Ireland versus EU25 36 Ireland
37 EU Disciplinary Action
SEI Perspective 2003 Ireland has a high dependence on imported energy (87%) Irish GHG emissions are significantly above Kyoto commitments Opportunities exist to convert wastes to liquid biofuels Current levels of biofuel production are negligible An important step could be remission of road excise duty on biofuels 38
SEI Biofuels Strategy 2004 Ireland unlikely to attain the 5.75% target in 2010 Biofuels are more costly than fossil based fuels Biofuels are more likely to be imported Obligation system should be considered (e.g. RTFO in UK) Government could organise tenders to procure appropriate quantities Importing ethanol from Brazil may be more attractive for the Irish Treasury 39 What about a New Indigenous Industry
Mineral Oil Tax Relief 2006 Does not distinguish between indigenous and imported Granting of relief does not guarantee delivery this was the case for wind projects under AER Agricultural objectives have been generally ignored Targets are insufficient to meet EU expectations Term of relief does not securitise investment RTFO approach would be more appropriate There is more to do in this space 40
41 Case Study: Neubrandenburg
Neubrandenburg Plant 40kT biodiesel crush and esterification EPC GmbH are the Turnkey Contractor Lurgi based technology Supplier of rape seed co-located with plant Project Financed with German Bank Planning achieved in three months Commissioning plant with handover in December All output obtains excise duty relief of 38c/ltr 42
43 Neubrandenburg Plant
44 Neubrandenburg 40kT
45 Ebeleben 100kT
Many Thanks 46 www.bioverda.com 6 July 2006