Biodiesel – a Success Story
The Development of Biodiesel in Germany
Report for the
International Energy Agency Bioenergy Task 27 Liquid Biofuels
Completed by the Austrian Biofuels Institute Vienna, Austria www.biodiesel.at
Vienna, June 2001 – update: February 2002
1
CONTENT: 1. Executive Summary:
……………………………………………………… 3
2. Introduction / Preface:
……………………………………………………… 4
3. Milestones:
……………………………………………………… 4
4. The Stakeholders:
……………………………………………………… 6
• • • • • • • • • • • •
Union for Promotion of Oilseeds and Protein-plants (UFOP) ……………. 6 German Farmers’ Association …………………………..………………. 8 Federal Association of German Plant Breeders ………….………………. 9 Association of Chambers of Agriculture …………………..………………. 9 Association of German Oil Mills …………………………..………………. 9 Biodiesel Production Industry …………………………..………………. 10 Diesel Vehicle Industry ……………………….…………..………………. 11 Biodiesel Process Technology & Engineering Industry ……………………. 12 Federal Initiative for Bio-energy …………………………..………………. 12 Federal Ministry for Consumer Protection, Food and Agriculture…………. 13 Federal Ministry for Economy and Technology …………………………. 13 R & D Institutions ………………………………………..………………. 13
5. Feedstock: • •
……………………………………………………… 14
Rapeseed Oil ……………………………………..………………. 14 Other Feedstock Sources …………………………….……..………………. 19
6. Production Capacity Investment: 7. Quality Management: • •
………………………………………… 20
……………………………………………………… 26
Standardisation ………………………………….…..………………. 26 Working Group Quality Management (AGQM) ……………..……………. 29
8. Economics & Marketing Strategy: 9. Political Measures:
………………………………………… 32
……………………………………………………… 36
10. Conclusions:
……………………………………………………… 39
11. References:
……………………………………………………… 39
2
1. Executive Summary: 1991: In June 1991 the first ten tons of Biodiesel were produced in Germany in a small pilot plant near the town of Leer at the coast of the North Sea. 2002: Today forecasts for the year 2002 show an overall Biodiesel capacity of more than 1,000.000 tons Biodiesel / year to be produced in approx. 15 industrial production facilities spread all over Germany. In an analysis of these 11 years of impressive Biodiesel developments the following key success factors are described: ü Perfect co-ordination of common interests of farmers and rapeseed breeders within the newly founded UFOP association as an alliance between farmers’ organisations and companies for modern breeding and seed production. ü Creative reaction towards the “Common Agricultural Policy” of the European Union requiring 15 % set-aside for food crops in 1992, recognising Biodiesel as the non-food product with the by far largest acreage impact potential. Dynamic expansion of nonfood rapeseed acreage harvested and an impressive increase of oil yield per hectare, thus assuring farmers’ income. ü Establishing the marketing strategy to position Biodiesel as an individual and independent 100 % fuel in order to obtain all the environmental and image advantages also at 100 %, which is in absolute contrast to the later upcoming blending practice in France with up to 5 % to fossil Diesel leaving Biodiesel in total anonymity. ü Involving key players of the powerful German car industry (Daimler-Chrysler, Volkswagen, BMW, MAN) from the very beginning, winning their confidence in Biodiesel, which resulted in warranties for a rather large fleet of cars. ü Taking advantage of the progressively growing attractiveness of the Diesel engine by impressive improvements in terms of performance, fuel efficiency, exhaust emission reductions and therefore market share. ü The intellectual investments of the trailblazing and persistent investor and skilled oleo-chemist, initially in the construction of a pilot plant and later on in one of the first European industrial demo-plant for Biodiesel production. ü Applying a consistent quality philosophy for Biodiesel by developing two DIN standards as the basis for creating confidence at vehicle industry and fuel consumer level. Installing a quality control management system as a follow-up. ü Pursuing a persistent promotion strategy implemented by UFOP with presence at a number of fairs, conferences and seminars and a set of scientifically based and professionally designed information material. ü Introduction of a new ecologically justified tax additional to the existing mineral oil tax for fossil Diesel, which will further increases over the next 4 years, while Biodiesel enjoys full detaxation. ü Recovery of the crude oil prices in January 1999 from below US$ 10,00 to above
US$ 25,00 / barrel from December 1999 onwards. ü The European Commission publishes 2 Directive Proposals for the promotion of Biodiesel use. 3
2. Introduction / Preface: Commercially motivated Biodiesel-initiatives in Europe could be observed as early as 1988 predominantly in Austria and also in France, where the first industrial scale Biodiesel production plants went into operation in 1990/1991. By then Germany could not be considered as being a leader in the development of Biodiesel, and from discussions it appeared sometimes as if priority was given to develop the application of pure vegetable oils as fuel for Diesel type engines. As it became evident finally that Biodiesel was about to experience a tremendous breakthrough in the German market from late 1999 onwards, which is taking the lead position in Europe, it was quite a logical thought to analyse the success factors of Biodiesel’s accelerating development there and to make these findings known to the interested public as a case study. Following a proposal of Dipl.-Ing. Manfred Wörgetter of the Federal Institute for Agricultural Engineering (Bundesanstalt für Landtechnik) in Austria the International Energy Agency / IEA Bioenergy - Task 39 “Liquid Biofuels” commissioned the Austrian Biofuels Institute in March 2001 to complete such a study for general publication. This study was completed with the support of the following persons: -
Mr. Dieter Bockey, UFOP, Germany,
-
Mr. Heinrich Prankl, Federal Institute for Agricultural Engineering, Austria,
3. Milestones: Ø 1982: Early trial work was completed at the “Institut für Biosystemtechnik” (Institute for Agricultural Engineering) in Braunschweig / Brunswick on tractor Diesel engines with promising results (Vellguth, lit. # 25). Ø 1987 – 1990: Triggered by customer demand Biodiesel produced from palm oil was tested by MERCEDES-BENZ (Schäfer, lit. # 15) in public buses of Kuala Lumpur, Malaysia and on bench tests in comparison with Biodiesel produced from rapeseed oil. Ø 1990: Biodiesel-Symposium in Vienna, Austria, with participation of key representatives of the German and international vehicle and tractor industry (MERCEDES-BENZ , VOLKSWAGEN, CASE, FENDT , JOHN DEERE, KHD, a.o.); excursion to the construction site of the first industrial scale Biodiesel-plant in Aschach / Austria. Ø 1990: Foundation of UFOP - Union zur Förderung von Öl- und Proteinpflanzen (Union for Support of Oilseed- and Proteinplants) basically as an alliance between farmers and oilseed breeders. Ø 1991: Small scale pilot production started at Oelmühle Leer Connemann in Leer. Ø 1991 - 1992: Taxi fleet test in Freiburg together with MERCEDES-BENZ and the TaxiAssociation, - initial troubles with low quality Biodiesel. Ø 1992 – 1993: P ORSCHE completes two 500 hour tests in the research facility in Weissach on the basis of Oelmuehle Leer Connemann quality Biodiesel with very encouraging results (Richter, lit.# 14). 4
Ø 1993: Publication of two quite substantially differing Life-Cycle -Analysis studies for Biodiesel triggering an intensive conflict between UBA (the German EPA = environmental protection agency) and the Biodiesel community. Ø 1994: VOLKSWAGEN publishes test series results on personal cars. Ø 1994: Publication of DIN V 51.606, the first preliminary DIN-fuel-standard for Biodiesel produced from plant oils (PME). Ø 1995: Oelmühle Leer Connemann starts its commercial scale Biodiesel operation with a capacity of 80.000 tons based on an own process technology. Ø 1995: International Automobile Fair in Frankfurt: Communication of the CEO of the VOLKSWAGEN AG, Dr. Ferdinand Piëch, to support Biodiesel and to assure the provisions of warranties for nearly all the Diesel models including the brands AUDI, SEAT, SKODA and VOLKSWAGEN from construction year 1996 onwards, valid for all European countries and beyond. Ø 1996: Law stops marketing of “leaded petrol”. More than thousand tanks in public fuel pump stations are open for replacement, thus Biodiesel is adopted as an attractive option by more than 600 free public fuel pump stations within a few months. Ø 1996: Presentation of the IFO-study: Macroeconomic evaluations show a job creation effect for 4.830 jobs, when farming non-food rapeseed for Biodiesel on 300.000 ha. Ø 1997: Publication of DIN E 51.606, the second improved DIN-fuel-standard for Biodiesel defined as Fatty-acid-methyl-ester (FAME) in September 1997. Ø 1998: Record low crude oil prices (approx. US$ 9,00 / barrel), rather high prices for vegetable oils (above US$ 600,00- / ton) and a set-aside percentage of only 5 % hit the economic performance of the Biodiesel industry severely. Ø 1999: The new German government decides to introduce a new ecologically justified tax additionally to the existing mineral oil tax for fossil Diesel, which increases further step by step over the next four years, while Biodiesel maintains full detaxation. Ø 1999: UFOP publishes a commissioned new life-cycle-analysis study with more precision data as an complementation of the UBA-study, thus creating a better understanding and acceptance of all environmental and macroeconomic advantages of Biodiesel. Ø 1999: From January onwards the crude oil prices recover up to approx. US$ 25,00 / barrel by December 1999 reaching a peak of US$ 35,00 / barrel in September 2000. Ø 1999: Foundation of the “AGQM” – “Arbeitsgemeinschaft Qualitäts-Management Biodiesel e.V.” (Working Group Quality Management) as an association for quality assurance in production and distribution. Ø 2000: Two additional Biodiesel production plants start operation with capacities of 75.000 ton in Ochsenfurt / Bavaria and of 60.000 ton in Wittenberge / Brandenburg. Ø 2000: There are approx. 1.000 Biodiesel public pump stations installed all over Germany, additionally also numerous company garage pumps are in operation. UFOP distributes a Biodiesel fuel pump survey in printed and internet version. Ø 24 August 2000: For the first time ever in history crude fossil oil is more expensive than vegetable oil on world markets.
Ø 2001: Overall investment plans for up to a total of 20 Biodiesel production plants add up to approx. 1,100.000 ton capacity. 5
4. The Stakeholders’ Profiles: T HE CORE STAKEHOLDERS : • UFOP - Union for Promotion of Oilseed- and Protein plants : (Union zur Förderung von Öl- und Proteinpflanzen) -
President: Dr. Klaus Kliem Director: Mr. Hans-Jürgen Bertram Assistant Manager: Mr. Dieter Bockey
1. History, structure, members and financial concept: o One must recognise UFOP as one of the key players within the success story of Biodiesel as it was this organisation, which quickly became a platform for constructive co-operation between scientists, plant breeders, farmers, agricultural traders, oil mills, Biodiesel producers and distributors, representatives of ministries and of R & D institutes. o UFOP was founded in 1990 as an association initially between farmers’ representatives (Mr. Karl Eigen) and oilseed-breeders (Dr. h.c. Dietrich Brauer) with a vision for the growth potential of these crops having fully recognised the need for a strategic alliance. It had found the full support of the German Farmers’ Association (Freiherr von Heeremann) and the Federal Association of German Breeders (Dr. Wilhelm Graf von der Schule nburg). o The association’s office was opened initially in Bonn, was moved to Berlin by end of 2000, and is managed by Mr. Hans-Jürgen Bertram, director, and Mr. Dieter Bockey, manager, with a small but efficient and motivated team. o Members are –
the German Farmers’ Association and it’s single state associates,
–
the Federal Association of German Breeders,
–
the German Raiffeisen Association,
–
the Association of German Oil Mills,
–
the Association of German Chambers for Agriculture,
–
the Association of Young German Farmers,
–
26 seed companies and 11 supportive members.
o The financial concept can be compared with the very successful “Check-off Dollar”-model of the American Soybean Association, as a fee of 1,00 DEM / kg seed of winter rapeseed as the by far most important crop is taken to finance UFOP’s budget and assure the independence of the organisation. o Concerning the minor crops the fee is fixed with 0,50 DEM / kg for spring rapeseed, with 3,00 DEM / package of sunflower seed and beginning with 1996 a fee of 1,00 DEM / 100 kg seed of protein plants (beans, peas, lupines.) o The profile of UFOP: see attachment no. 1. 6
2. Objectives: o With the vision of an attractive growth market in Europe, which is highly dependent on imported vegetable oilseeds (mainly soybeans), and of the so far underdeveloped but very promising potential for oilseed production in Germany, UFOP’s key objectives is the market development of locally produced vegetable oils and rapeseed meals and cakes. UFOP also supports farming of sunflower and protein crops such as beans, peas and lupines. o UFOP’s concept for reaching these goals is to systematically support this development by a bundle of complex measures in modern breeding and cropping (precision farming), R&D for new applications, marketing initiatives in the food and non-food sectors, agricultural policies and lobbying, regular stakeholders’ contacts and public relation. o The association’s philosophy can be characterised as being very open to any other stakeholders, e.g. the Diesel engine industry (VOLKSWAGEN, DAIMLERCHRYSLER, M.A.N.), the oleo-chemical industry (HENKEL) and the lubricants industry (FUCHS P ETROLUB) in a constructive search for potential synergies and striving always for consensus solutions. o With the new opportunity for “Non-Food”-crops on set-aside land - as established by the new Common Agricultural Policy (CAP) of the European Union it became a priority objective for UFOP to prepare for and to enter the large emerging markets for industrial crops with Biodiesel having by far the largest impact on acreage and farmers’ income. Other opportunities such as biodegradable lubricants and technical oils based on vegetable oils were included. o Beside the non-food markets UFOP’s activities include the promotion of rapeseed oil as a preferable oil for human nutrition, as its fatty-acid-composition leads to a lower cholesterol-level and has other positive effects for human health (e.g. Vitamin E, Omega-3-fatty-acids.) o Rapeseed is no longer ignored but actively promoted as a valuable and clearly recognisable single product. 3. Scope of actions: o
Providing information on oilseed production conditions and contracts to farmers via the specialists of the Chamber of Agriculture and newsletters as well as leaflets and the magazine “RAPS” specialising on rapeseed farming and marketing.
o
Gathering information on world market dynamics, on European regulations for oilseeds and on other market influencing parameters, and formulating related optimum recommendations.
o
Maintaining an influence on German and European decision-making by proper contacts to the German government and to the European Commission and European lobbying groups (e.g. COPA – COCEGA, the European farmers and co-operative organisation). 7
o
Resolving problems or exploiting opportunities by defining related R & Dprojects, supportive environmental or macroeconomic related studies and commissioning qualified institutions to develop solutions and to establish scientifically sound evidence, e.g. about Biodiesel’s environmental and macroeconomic advantages.
o
Promotion and public relation: The printed information material of UFOP is highly professional and is produced by the contracted PR agency “WPR”. Marketing and promotion activities for Biodiesel have consisted of:
o
•
§
attendance at numerous important fairs and conferences,
§
the organisation and/or participation in workshops and seminars all over Germany, and
§
well structured and lively product and promotion literature,
§
an attractive and very informative website portal: http://www.ufop.de.
UFOP has actively supported the foundation of the “AGQM” (working group for quality management of Biodiesel) as an independent organisation, which represents now all Biodiesel-producer and Biodiesel-distributors. This was triggered by facing the challenge from inferior quality, which appearing risk needed immediate counteraction. In order to assure the carefully built excellent image of Biodiesel the development of a quality seal was initiated as well.
DBV - German Farmers’ Association : (Deutscher Bauernverband) -
President: Mr. Gerd Sonnleitner.
-
The DBV is the political interest association for all German farmers and consist of the following members: –
18 single state “Farmers Associations” (representing more than 500.000 farmers),
–
the “Young Farmers Association”,
–
the “RAIFFEISEN Association” as a trading organisation for agricultural input/output products with an independent fuel distribution network all over Germany.
-
This structure represents a very strong amplification potential for any political or publicity initiatives on a federal and a single state level, whenever needed for UFOP’s activities and communications.
-
BDP is a member of UFOP.
8
•
BDP - German Plant Breeders’ Association : (Bundesverband Deutscher Pflanzenzüchter)
•
-
President: Dr. Kartz von Kameke
-
Chairman of the section oilseed- and proteinplants: Mr. Dietmar Brauer
-
Members: Over 100 breeding companies from all over Germany including divisions of multinational companies.
-
One key task is to test and to select new oilseed varieties for best performance. according to the local climatic and soil conditions all over Germany, which then leads to the recommendation of the locally best variety. This system is coordinated and fine-tuned by the local chambers for agriculture. As results show it must be considered as one of the most efficient selection systems in Europe; it is financed by both BDP and UFOP together.
-
The outstanding performance of the German rapeseed breeders was presented by Dr. Gisbert Kley at the 3rd European Motor Biofuels Forum in Brussels in 1999. (Kley, lit.# 5.)
-
BDP is a member of UFOP.
VLK – Association of Chambers for Agriculture : (Verband der Landwirtschaftskammern) -
-
-
•
The Association of German Chambers for Agriculture – VLK operates with a network of offices and specialist advisers spread all over the country in each single state. The offices of the Chamber of Agriculture with its field advisers are highly efficient information and advisory agencies with direct contact to the farmers. As UFOP has acquired an image of being a professional provider of solid information the credibility is high at adviser and farmer level and recommendations are understood and accepted. VLK is a member of UFOP.
VDÖ - German Oilseed Crushing Association : (Verband Deutscher Ölmühlen e.V.)
- The Association of German Oil Mills represents 20 members with activities in the oilseed crushing and oil refining business all over Germany with a total crushing performance of 8,652.000 ton of seed (rapeseed, soybean, sunflower, linseed, castor beans) in 1999 - of which 4,116.000 ton rapeseed, - and a production of 1,743.000 ton rapeseed oil. Thus the oil mills play a key role in supply of suitable feedstock to the Biodiesel industry. It has to be mentioned however that new crushing capacities are installed at the sites of a few new Biodiesel production plants.
- Being active in a highly competitive sector on a world-wide basis the diversification into the production of Biodiesel at the same location is seen both as a 9
security measure for the location and as a strengthening of the competitiveness on an international level.
- More information can be obtained on the website: www.oelmuehlen.de and especially under www.Biodiesel.de.
- The following members have taken a stake within the Biodiesel industry: 1.
§
Ö LMÜHLE LEER CONNEMANN GmbH & Co (in full production)
§
Ö LMÜHLE HAMBURG AG (under construction)
2.
CEREOL GERMANY GmbH (distribution of Biodiesel produced in France and Au stria by NOVAOL, a subsidiary of CEREOL )
3.
CARGILL:
4.
-
ADM (ARCHER DANIELS MIDLANDS):
§
BIODIESEL WITTENBERGE GmbH (co-ownership, in production)
§
RIESAER Ö LWERKE GmbH & Co KG (planning phase)
C. THYWISSEN GmbH (planning phase)
BDP is a member of UFOP.
• The Biodiesel Production Industry : The following companies have established production facilities in Germany with the below mentioned capacities; detailed description of each company and of the import/export business is described in § 6. Production Capacity Investment. Table # 1: Name: 1. 2. 3. 4. 5. 6.
Capacity in ton:
Ölmühle Leer Connemann GmbH & Co., Leer: Verwertungsgenossenschaft Biokraftstoffe, Großfriesen: Landwirtschaftl. Produkt- & Verarbeitungs GmbH, Henningsleben: Biodiesel Wittenberge GmbH, Wittenberge: Hallertauer Hopfen-Verwertungsgesellschaft, Hallertau: Campa Biodiesel GmbH & Co. KG, Ochsenfurt:
Total production capacity (June 2001) ………………
120.000 2.000 5.000 60.000 5.000 75.000 267.000
The “Association of German Biodiesel Producer” was founded in the second half of 2001 and is going to represent the interest of this new industry in Germany and at the European Union.
10
• The Diesel Vehicle Industry : o
The Diesel engine vehicle industry’s key role in deciding the success or failure of Biodiesel on the fuel market is often underestimated - especially by newcomers in the Biodiesel fuel industry. A market is created and exists only under the condition that a warranty for a brand or a model is given.
o
Warranties are however given on the condition of the confirmed quality and a quality assurance of the fuel – without regard of its fossil or biogene origin – as the vehicle company is in the business of selling “guaranteed mobility”. The tool for creating the needed confidence in a new fuel is usually an exact product definition expressed in a standard.
o
With the agreement of the first German fuel standard for Biodiesel DIN V 51.606 (for PME – Plant-Oil-Methyl-Ester) in the year 1994 the necessary confidence was created to enable the CEO of the VOLKSWAGEN AG, Dr. Ferdinand Piëch, to announce at the International Automobile Fair in Frankfurt his support of Biodiesel and to assure the provisions of warranties for nearly all the Diesel models including the brands AUDI, SEAT, SKODA and VOLKSWAGEN from construction year 1996 onwards, valid for all European countries.
o
Before this impressive public announcement a few other companies however had given warranties – mainly for agricultural machinery, e.g.:
o
CASE – IH tractors since 1971 / CLAAS – tractors and combines / FENDT – tractors / FIATAGRI – tractors / FORD AG – tractors / HOLDER – tractors since 1989 / ISEKI – tractor series 3000 and 5000 / JOHN DEERE – tractors and combines since 1987 / KHD – tractors / KUBOTA – tractors series OC, O5, O3, Super Mini / LAMBORGHINI – tractors series 1000 / MASSEY-FERGUSON – tractors since 1989 / MERCEDES-BENZ – tractors since 1989 / SA M E – tractors since 1990 / STEYR – tractors since 1988 / VALMET – tractors since 1991.
o
After the agro-machinery companies had broken the ice the following companies evaluated Biodiesel carefully and issued warranties as follows:
o
AUDI – all TDI-models since 1996 / BMW – model 525 tds since 1997 and all new 3- and 5-models since 2001 / DAIMLER-CHRYSLER (MERCEDES-BENZ ) series C and E 220, C 200 and 220 CDI, Bus series BR 300 and 400, Unimog since 1988 / M.A.N. buses and lorries – on request / SEAT – all TDI-models since 1996 / SKODA – all TDImodels since 1996 / VOLKSWAGEN – all TDI-models since 1996 and new SDI-
models / VOLVO – series S80-D, S70-TDI and V/70-TDI. (See complete list attachment no. 2) ***********************
11
IN THE PERIPHERY OF THE STAKEHOLDERS: • The Biodiesel Process Technology & Engineering Industry: Below those Biodiesel process technology & engineering companies are mentioned, which have their company headquarter in Germany. Additional company names can be obtained on request through the Austrian Biofuels Institute, www.biodiesel.at. 1. FELD & HAHN GmbH, in Bendorf: With existing experience in building production plants for Methyl-ester for non-fuel purposes and refineries for glycerinepurification Feld & Hahn was involved in the construction of the first industrial scale Biodiesel-plant in Aschach / Austria and in the plant of Oelmühle Connemann Leer. The company has ceased its activities. 2.
ÖLMÜHLE LEER CONNEMANN GmbH & Co., in Leer: Having developed the continuous CD-process technology and implemented in the commercial size by plant at Oelmühle Leer Connemann there is now already a second plant going to be constructed with this technology at Oelmühle Hamburg. A further plant is under construction at PALMA in Bratislava (Slovakia.) The CD-process technology is licensed out to engineering companies (GEA-WESTFALIA, KIRCHFELD) in Europe and abroad.
3. AT-AGRAR-TECHNIK GmbH, in Schlaitdorf: This company has gained experience in process technology by constructing initially small scale farmers co-operative plants; AT has recently built the plant of Campa Biodiesel GmbH & Co. KG, Ochsenfurt, Bavaria, in which AT holds a 50 % share. http://www.campa-biodiesel.de 4. CIMBRIA SKET, in Magdeburg: There is a Biodiesel project in development in Magdeburg-Rothensee. 5. LURGI LIFE SCIENCE GmbH, in Frankfurt: One Biodiesel plant is under construction in Marl. http://lurgi-lifescience.de 6. LABOR- UND UMWELTTECHNIK - LUT, Jena: No commercially producing Biodiesel plant in existence up till now. 7. There are however also a number of non-German process technology companies active on this market, e.g. BioDiesel International GmbH www.biodiesel-intl.com and ENERGEA Umwelttechnik GmbH http://www.energea.at , both in Austria.
• The Federal Initiative for Bioenergy: -
The Federal Initiative for Bioenergy (Bundesinitiative Bioenergie e.V. = BBE) was founded in 1998 and elected Mr. Helmut Lamp, Member of Parliament, as its first chairman.
-
The BBE formulated its objectives as “3 key actions against climate change”: 1. reasonable taxation of finite fossil fuels, integrating the external cost; 2. assured access of renewable energy forms to the electricity market; 3. minimum shares for renewable energy in the heat- and mobility markets.
-
The BBE supports any form of energy produced from biomass in solid, liquid and gaseous form for the electricity & heat and the transport markets. 12
• Federal Ministry for Consumer Protection, Food and Agriculture: (pre-BSE: The Federal Ministry for Food, Agriculture and Forestry) -
In first quarter of 2000 an incentive programme for market introduction of biogeneous fuel and lubricant products in German agriculture was presented by the ministry. It focuses on a number of opportunities such as vegetable oil based lubricants and pure rapeseed oil as fuel, but shows rather limited interest in initiatives to support Biodiesel.
-
As a subsidiary of the ministry there is the Agency for Industrial Crops (Fachagentur für nachwachsende Rohstoffe = FNR) located in Gülzow, Mecklenburg-Vorpommern, which follows the guidelines as provided by the ministry staff.
• Federal Ministry for Economy and Technology: -
Federal Minister Mr. Werner Müller presented a market access incentive programme for renewable energy in early 2000 with a total budget of DEM 200 mill p.a. (US$ 93 mill), of which DEM 70 mill (US$ 33 mill) are dedicated for investments on the basis of biomass such as plant oil- and Biodiesel-CHPplants).
-
The most visible and pacesetting project is the energy supply of the German Parliament Buildings (“Deutscher Reichstag”) with a Biodiesel-fuelled CHPplant, utilising approx. 3.000 ton of Biodiesel p.a.
-
As a back-up there are several other supportive programmes available by each single state (see also: www.bawi.de) .
• R & D: Institutes: 1. FAL Braunschweig Völckenrode: previous general manager: Prof. G. Vellguth; present general manager: Prof. Axel Munack; former task leader: Dr. Jürgen Krahl / Focus: Diesel engine bench and non-stationary operation tests for performance and emissions 2. STZ Biokraftstoffe und Umweltmesstechnik, Coburg: Dr. Jürgen Krahl / Focus: Emission testing, specifically carcinogenic substances 3. IFEU – Institute for Energy- and Environment Research Heidelberg GmbH: Sector Traffic and Environment, Ecobalances: Dr. Guido A. Reinhardt / Focus: Life Cycle Analysis and Eco-balance studies 4. IFO – Institute Munich / Bavaria, Sector Agro-Sciences: Dr. Manfred Schöpe / Focus: Macroeconomic studies 5. FAM – Normungsausschuß für Mineralöle (Standardisation Committee for Mineral Oils), DIN, Hamburg: Dr. Thomas Feuerhelm / Focus: Standardisation of fuels
13
6. UBA Berlin (Environmental Protection Agency Berlin) / Professor Dr. Andreas Troge / Focus: Life Cycle Analysis studies 7. Technical High school Constance, Institute for Combustion Engines: Prof. Dr. Klaus Schreiner / Focus: Diesel engine test series, especially boat engines 8. Otto-von-Guericke-University Magdeburg, Faculty of Machinery Technology, IMKO: Prof. Dr. H. Tschöke / Focus: Diesel engine bench and nonstationary operation tests for performance and emissions 9. Bayrische Landesanstalt für Landtechnik, Freising - Weihenstephan: Dr. Bernhard Widmann 10. University of Rostock, Sector Machinery and Ship Technology: Prof. Dr. Prescher / Focus: Diesel engine test series, especially boat engines
5. Feedstock: •
Rapeseed oil: -
Varieties & Breeding: o Oilseeds maintained a rather minor market share in Germany up into the sixties until the introduction of the first varieties of “0-rapeseed”, i.e. Eruca-acid-free breeds in the season 1974/75. o This was the initial step for the developing growth, which experienced a second impulse by the introduction of “00-rapeseed” or canola, i.e. breeds with additionally very low content of glucosinolates in the season 1986/87. o The present target of the well established German rapeseed breeder community is to increase the oil yield / ha and to reach 3,5 – 4,0 ton of oil per hectare. o Genetic enhancement will be achieved by breeding for new oil and protein quality, for improved disease resistance and specific combining abilities in hybrid breeding. The oil content could be raised from presently 40 towards 50 % in the seed. o Improved production technique will be needed to transform fully the genetic potential into yield by precision agronomy in ploughing, soil preparation, fertilising, weed and insect control and harvesting. o Winter rapeseed has also gained in attractiveness as being a valuable preceding crop to e.g. wheat, which is a sizeable advantage and is valorised with approx. DEM 210,-- to 290,-- per ha. o From the point of the Biodiesel producer a high oleic (HO) rapeseed with even further reduced levels of saturated fatty acids is highly desirable bearing in mind improved stability and winter operability of Biodiesel. 14
-
Acreage & Yield: o Looking just at the development in the Northern state of SchleswigHolstein, the area with ideal growing conditions for rapeseed, the acreage was increased from barely 10.000 ha in 1950 to over 50.000 ha in 1975, reaching a peak of over 110.000 ha in 1992, while yields went up continuously from as low as 1,0 ton/ha to 3,9 ton/ha in the same period. o After the non-food acreage for oilseeds (mainly 00-rapeseed) had reached a new record of 350.000 ha in the season 1995/96 the depressingly low price for crude fossil oil and high vegetable oil price levels lead to a significant but provisional decline in acreage in 1997/98, which trend was supported by the reduction of the set-aside percentage from 10 % to 5 %. o It quickly recovered to similar levels as before from 1999/2000 onwards, when the set-aside percentage was put back to 10 % and crude oil prices went up. Demand for rapeseed oil from Biodiesel production plants increased at the same time.
Table # 2: Oilseed crops in the top 5 countries within the EU-15: in 1.000 ha 1997/98 country Denmark
1998/99
non-food
food
non-food
1999/00 food
2000/01
non-food
food
non-food
food
10
94
10
95
27
116
25
90
France
190
1.731
198
1.854
398
1.887
312
1.808
Germany
109
840
149
893
366
865
340
785
Italy
28
729
11
780
24
480
10
480
Spain
16
1.105
12
1.249
0
819
0
888
EU-15
392
5.254
418
5.684
975
4.914
709
4.755
EU-15 total
5.647
6.101
5.889
5.463
Source: UFOP 1999/2000
o It is interesting to observe that in comparison East German countries (the former GDR until 1989) represent approx. 60 % of the total non-food rapeseed grown, while West German countries represent the minor share within the total. o Within the total acreage for non-food crops 00-rapeseed takes by far the leading position with 340.000 ha ahead of sunflower being second with only 5.300 ha.
15
o Set-aside impact: In the year 1997 and 1998 the set-aside percentage was fixed with only 5 % representing an acreage of only 810.000 ha; - nonfood rapeseed took then a market share in there of approx. 15 %. When increasing the set-aside percentage back to 10 % in 1999 the market share of rapeseed increased immediately up to 30 %. o The presently reported record yield was achieved by a farmer in Schleswig - Holstein with 2,9 ton oil / ha by precision agronomy in the season 1998/99, giving an idea about the genetic potential of rapeseed varieties. o Potential: According to estimates of UFOP the ecological reasonable potential will be reached with 1 mill ha, which corresponds with 1,2 mill t Biodiesel or 5 – 7 % market share. Thus the objectives of the European Commission for market shares (% 5,75 % by 2010) can be reached. o Presently one can observe two important developments, which will have a significant impact on future acreage of oilseeds:
-
–
The BSE-crisis in Europe (bovine spongiform encephalopathy or mad cow disease), which resulted in prohibiting protein meal of animal origin as a feed source, and
–
the negative attitudes of customers and NGOs to genetically modified crops, which may result in limitations on imports of GM-soybeans and soybean meals into the European Union as animal feed.
Communication & Controlling Production: o
Optimise income: With the objective to optimise income for rapeseed growing farmers key information is distributed regularly by the UFOPNewsletter in order to communicate criteria and recommendations for increasing / decreasing acreage. UFOP tries hard to provide recommendations, which are reflecting the ups and downs of the world trade situation, the sometimes rather less transparent political decisions within the European Commission and the risks and opportunities for the German farmer.
o
Continuous supply: Simultaneously it is aimed that a continuous supply of oilseed will go to the oil mill industry and the Biodiesel industry while observing the national restricted “guaranteed acreage” according to the Blair-House-Agreement. (It is expected that this agreement will not be prolonged from 2002 onwards.)
o
Improved production technologies: Furthermore UFOP focuses on improved production technologies of rapeseed in order to exploit all yield potentials of this plant in the overall crop rotation. There is pressure for such improvements as subsidy levels for winter rapeseed are declining by up to 40 % until season 2002/2003 down to the level of cereals and set-aside acreage.
o
High credibility: As UFOP is acting highly professionally the credibility is very high, and therefore recommendations on e.g. seed varieties, extent of acreage, production technology and split between food- and non-foodcropping are implemented by farmers with only minor deviations. 16
-
Suitability: o
Biodiesel produced from rapeseed turned out to be one of the very attractive options as by nature the 00-rapeseed breeds offer a fatty-acid-profile, which is highly suitable for Biodiesel:
o
With the low levels of polyunsaturated fatty acids (PUFA) 00-rapeseed oil exhibits a high stability, which is much better than e.g. linseed oil; and with the very low levels of fully saturated fatty acids (5 – 6 % only) this oil is the basis for a Biodiesel with an acceptable winter operability of – 8°C CFPP (Cold Filter Plugging Point) in Diesel engines, which makes it superior to e.g. palm oil with a CFPP of + 11°C.
o
The following table exhibits the key properties of 00-rapeseed oil in comparison with 4 other potential feedstock sources:
Table # 3: Fatty acid profile of oils and fats Property:
Rapeseed
Sunflower
Soybean
Palm
Beef
Iodine value
113 - 118
126 - 136
120 - 140
44 - 54
35 - 55
OO
tallow
Fatty acid in %: Palmitic
C 16:0
5
6
8
42
28
Stearic
C 18:0
1
4
4
5
19
Oleic
C 18:1
60
28
28
41
45
Linoleic
C 18:2
21
61
53
10
4
linolenic
C 18:3
9
-
6
-
1
Source: Mittelbach
-
Utilisation of Non-Food Vegetable Oils and Fats: o
The following table # 3 shows the development of volumes and equivalent acreage in 1997 – 2000 and demonstrates that initially the oleo-chemical industry was the major customer for non-food oils.
o
From 1999 onwards however the Biodiesel industry took the lead and became the most important processor. This is a trend, which will certainly increase in the coming years as the mentioned four to nine new production plants will require additional quantities, most probably leading to a situation, where food and non-food rapeseed will not be price differentiated and will be traded on similar levels.
17
Table # 3: Production
Oleo-
Lubricants
Biodiesel
total
Acreage
Non-food
chemistry
hydraulic oils
ton
ton
ton
ton
ha
1997
100.000
30.000
80.000
210.000
175.000
1998
110.000
35.000
100.000
245.000
204.000
1999
120.000
40.000
130.000
290.000
242.000
2000
130.000
40.000
300.000
470.000
390.000
2001
120.000
30.000
400.000
550.000
470.000
equivalent
Source: UFOP 2000/2001
-
Future Scenarios:
o The Blair-House-Agreement of 1992, which had set a limit to non-food oilseed within the European Union-15 of 1 million ton soy meal-equivalent, is ending in 2002/2003, being already outdated. In a following WTO-round new direct US subsidies could come under attack, but Biodiesel may create additional demand for vegetable oil on both sides of the Atlantic thus offering a solution to soybean and rapeseed farmers. UFOP has already initiated an exchange of ideas on this subject. o With the widening of the EU-15 by additional 10 CEEC (Central and East European Countries) significant additional acreage with enormous productivity potentia l will enter the enlarged European Union. Demand for increasing setaside percentages in order to regulate potential overproduction of food crops can be expected. This pressure to create alternatives in non-food production will give oilseeds a unique chance as Biodiesel can easily absorb large volumes of oilseeds. o Therefore the existing and quickly growing Biodiesel industry in Germany may grow even beyond the 1 mill ton forecast, because of a well prepared and attractive national market, a high quality product philosophy, a very well developed Diesel engine market and last but not least by reasonably priced feedstock availability. o
Such reasonably priced rapeseed oil may be supported by further progress in breeding for higher oil contents and by higher yields achieved by new breeds and precision farming.
18
•
Other Feedstock Sources: Although most of the development of Biodiesel was based on the feedstock rapeseed oil, which by nature has a nearly ideal fatty-acid profile in terms of stability and winter operability, early trial were performed also with other feedstock materials, e.g. palm-oil-methyl-ester in Malaysia (Schäfer, lit.# 15), soy-oil-methyl-ester in Brazil and in the USA, sunflower-methyl-ester in Southern France and recycling oil in Austria (Mittelbach, lit.# 11). In Germany it is SARIA Industries, which is going to produce Biodiesel from recycling oils and feedstock, based on the process technology of BioDiesel International GmbH, as this feedstock has an attractive low cost basis. With modern process technology not only Triglycerides-molecules can be turned into Biodiesel but also free fatty acids (FFA), so that also feedstock with rather high FFA-levels can be processed into fully suitable Biodiesel of highest quality according to DIN- or CEN-fuel-standards. The table below shows a trade-off of various feedstock properties, which have influence on the properties of Biodiesel: Table # 5: Property trade -offs:
SHORTCHAIN ç
è è PM + soot performance J
lower increased higher worse
è
higher increased
è
higher worse
SATURATED ç
è
UNSATURATED
ç
winter operability
higher worse
è J
lower better
higher higher
ç J
è
engine performance
lower lower
lower better lower
ç J J
è
higher worse higher
emissions caloric value combustion
higher reduced lower improved
ç J
emissions
lower reduced
ç J
lower better
ç J
Oxygen content
Boiling line
CFPP
winter operability
CFPP
Cetane
Iodine value
oxidation stability polymerisation
J
PM, HC
°C
°C
LONGCHAIN
© Austrian Biofuels Institute
19
6. Production Capacity Investment: The following Biodiesel production plants are mentioned in sequence of the actual or planned production starting date: 0. Raiffeisen Hauptgenossenschaft Nord AG, Kiel / Schleswig-Holstein: -
The initiative of „HaGe Kiel“ in 1990 was the earliest project for an industrial Biodiesel production in Germany with a projected capacity of 10.000 ton Biodiesel.
-
The oil mill, owned by the Raiffeisen-group and located in the harbour of Kiel, and old Hanse-town in Schleswig-Holstein, processes approx. 100.000 ton of rapeseed in several crushing steps (without hexane-extraction).
-
The project, which nearly reached the start of the construction phase, was however never realised.
1. Oelmühle Leer Connemann GmbH & Co., Leer / Lower Saxony: -
-
-
Owner: Oelmühle Leer Connemann is owned by Oelmühle Hamburg, a subsidiary of ADM (Archer Daniels Midlands), a US-company and major player in the worldwide agro-business, owning also several oil mills. It is interesting to see that ADM is the single biggest producer of Bioethanol in the US using corn as feedstock. Bioethanol is applied there as an oxygenate additive for petrol combustion engines and is qualified by the EPA as “Alternative Fuel” within the framework of the Energy Policy Act. Capacity (2001): 115.000 ton/year. Feedstock: refined 00-rapeseed-oil. History: o On the initiative of an experienced technician and skilled businessman in the field of oleo-chemistry the “CD-process” was developed and first volumes of Biodiesel were produced in a pilot plant. The oil mill and the Biodiesel plant are located in the harbour of Leer at the North Sea. o Production start: The pilot plant, which obtained financial support through the THERMIE-programme of the European Commission, the regional and national governments, started its production in June 1991 with 1 ton/d and in 1993 with 20 ton/d in 360 d/year. o The industrial Biodiesel production unit started in 1995 with initially 80.000 ton /year capacity. o A marketing department was set up with major customers in the agrocooperative fuel trade and a few rather large private fuel distributors all over Germany. o Today the production capacity is streamlined to 115.000 ton / year. o Approx. 10.000 ton are exported to France for blending into fossil Diesel EN 590 at a rate of 1,5 – 5 %, which is the legalised way there. Information: Detailed information on location of Biodiesel pumps, vehicle warranties, product information and news can be obtained from the website: www.biodiesel.de 20
2. Verwertungsgenossenschaft Biokraftstoffe, Großfriesen / Saxony: -
Owner: Farmers’ co-operative. Capacity: 2.000 ton/year. Feedstock: 00-rapeseed-oil. Production: since 1996. Marketing: consumption by members and regional marketing of Biodiesel and rapeseed meal as protein feed
3. Landwirtschaftl. Produkt- & Verarbeitungs GmbH, Henningsleben / Thuringia: -
Capacity: 5.000 ton/year. Feedstock: 00-rapeseed-oil. Production: since April 1998. Marketing: consumption by members and regional marketing of Biodiesel.
4. Biodiesel Wittenberge GmbH, Wittenberge / Mecklenburg-Vorpommern: -
-
Owner: joint venture of i. Deutsche Cargill GmbH & Co and ii. Raiffeisen Hauptgenossenschaft Hannover Capacity: 60.000 ton/year Feedstock: 00-rapeseed-oil. Production start: August 1999
5. Hallertauer Hopfen-Verwe rtungsgesellschaft, Mainburg / Bavaria: -
Owner: Steiner Hopfen GmbH. Capacity: 5.000 ton/year. Feedstock: 00-rapeseed-oil. Production start: only seasonal production. Marketing: regional marketing to fleets.
6. Campa Biodiesel GmbH & Co. KG, Ochsenfurt / Bavaria: -
-
Owner: i. 50 % are owned by VNR (Verwertungsgesellschaft für Nachwachsende Rohstoffe) representing 13 farmer owned rapeseed production associations from Bavaria, Baden-Württemberg and Hessen and ii. 50 % by the private company Agrar-Technik GmbH. Capacity: 75.000 ton/year. Feedstock: 00-rapeseed-oil. Production start: May 2000.
7. Oelmühle Hamburg AG, Hamburg: -
-
Owner: This is the second project of ADM after the first plant in Leer. ADM operates a large oil mill (10.000 ton/d oilseeds) in the harbour of Hamburg. Capacity: 100.000 ton/year. Feedstock: 00-rapeseed-oil. Production start: September 2001.
21
8. MUW Mitteldeutsche Umesterungswerke GmbH, Bitterfeld / Sachsen-Anhalt: -
Owner: Private entrepreneurs (Family Sauter, Mr. Pollard.) Capacity: 100.000 ton/year. Feedstock: 00-rapeseed-oil (crude and refined oil). Production start: September 2001.
9. BKK Bio-Diesel GmbH, Rudolstadt / Thuringia: -
Capacity: 4.000 ton/year. Feedstock: 00-rapeseed-oil. Production start: October 2001.
10. SARIA Bio-Industries GmbH, Malchin / Mecklenburg -Vorpommern: -
-
Owner: SARIA Bio-Industries (Rethmann Group) are active all over Europe in the fields of foodstuffs production and recycling. More than 60 SARIA sites in Germany, France and Eastern Europe are occupied in the collection of raw materials and in producing foodstuffs, animal feed, fertilisers and industrial crude materials. Capacity: 40.000 ton/year (initially 12.000 ton). Feedstock: animal fats, recycled cooking oils and 00-rapeseed-oil. Process technology: modern ‘BDI - Multifeedstock’ technology Plant engineering: BioDiesel International GmbH Investment volume: 4,4 million €. Production start: December 2001.
11. PPM Umwelttechnik GmbH & Co KG ,/ Brandenburg: -
Owner: PPM Capacity: 5.000 ton/year. Feedstock: 00-rapeseed-oil. Production start: November 2001.
12. NAWARO GmbH / Mittelberger-Gruppe, Niederpöllnitz / Thuringia: -
Owner: Mittelberger Gruppe Capacity: 45.000 ton/year. Feedstock: animal fats, recycled cooking oils but dominantly 00-rapeseed-oil. Process technology & engineering: BioDiesel International GmbH - Austria Investment volume: 6,7 million €. Production start: in January 2002.
22
13. Natur Energie West, Marl / Nordrhein-Westfalen: -
-
Owner: Natural Energy West GmbH consisting of: i. RCG Münster, ii. Bunge International (Argentina), iii. Diester Industries (France), iv. Ölmühle Thywissen. Capacity: 100.000 ton/year. Crude glycerine processing capacity for 12.000 ton p.a. Feedstock: 00-rapeseed-oil. Process technology: Lurgi Life Science GmbH Production start: intended in March 2002.
14. Rheinische Bioester, Neuss / Nordrhein-Westfalen: -
-
Owner: i. Petrolab, Rotterdam, ii. Campa Biodiesel GmbH, iii. Hessische Nawaro GmbH, iv. Ölmühle Sels. Location: Oilmill O. 6 L. Sels, Neuss. Capacity: 100.000 ton/year. Feedstock: 00-rapeseed-oil. Production start: intended in 2002/2003.
15. Maschinenring Brunsbüttel, Brunsbüttel / Schleswig-Holstein: -
Owner: Private entrepreneurs Capacity: 100.000 ton/year. Feedstock: 00-rapeseed-oil. Production start: intended in 2002 / 2003.
16. NEVEST AG, Schwarzheide / Brandenburg: -
-
Owner: i. Nevest New Energy AG, ii. Nevag AG, iii. Saarberg Bioenergie GmbH Owner of the location: BASF AG. Capacity: 100.000 ton/year. Crude glycerine processing capacity for 30.000 ton p.a. Feedstock: 00-rapeseed-oil. Investment volume: 25 million €. Production start: intended in 1 Q 2002.
23
17. Bio-Ölwerk, Magdeburg-Rothensee / Sachsen-Anhalt: -
-
Owner: i. Agro Bördegrün GmbH & Co KG, Niederdodeleben, 25% . ii. Magdeburger Getreide GmbH, Vahldorf, 24,8% . iii. Walter Helmich, Dinslaken, 24,8%. iv. Agrarhandel Gebr. Weiterer GmbH & Co KG, Magdeburg, 11,0%. v. Ahlborn Landhandel Leinetal GmbH, Alfeld, 10,0%. vi. Agrarservice Ostelbien GmbH, Menz 4,4%. Capacity: 50.000 t / y. Project coordination: Bio-Ölwerk Magdeburg. Constructions: Cimbria Sket GmbH, Magdeburg. Feedstock: 00-Rapsöl. Investment: 20 Mio. €. Production start: intended by 2002/2003.
18. BDK Biodiesel GmbH, Kyritz / Brandenburg: -
Owner: - Werkstätten GmbH, Nordhorn, 60% . - Rohrleitungsbauer T.Arens GmbH, Twist, 40% . Capacity: 60.000 t / y. Part of an oil mill with a capacity of 300.000 t seed / y. Feedstock: 00-Rapsöl. Investment: 14 Mio. €. Production start: intended by 2001/2002.
19. Biodiesel Rostock GmbH, Rostock / Brandenburg: -
Owner: Nevest New Energy AG. Capacity: 100.000 t / y. Processing of crude glycerine in Schwarzheide. Feedstock: 00-Rapsöl. Investment: 12,8 Mio. €. Production start: intended by 2003.
20. Ölwerke Riesa / Cargill, Riesa / Saxony: -
Owner: Deutsche Cargill Capacity: 60.000 ton/year. Located within the oil mill with a capacity of 300.000 ton seed/year. Feedstock: 00-rapeseed-oil. Production start: project postponed until later.
21. Labor- und Umwelttechnik GmbH, Jena / Thuringia: -
Capacity: 100.000 ton/year. Feedstock: recycled cooking oils and 00-rapeseed-oil. Production start: intended in 2002.
24
Overall existing and forecasted Biodiesel production capacity development is presented in the following table: Biodiesel development & forecast / Germany 1991 - 2003: Table # 6: In 000 t/y 1991 1992 1993 1994 1995 1996 1997 1998 1999 Henkel Connemann-pilot 1. Leer (ADM) / Ns 2. Großfriesen / Sa 3. Henningsleben/Th 4. Wittenberge / M-V 5. Hallertau / Bay 6. Ochsenfurt / Bay 7. Hamburg (ADM) 8. Bitterfeld / S-A 9. Rudolstadt / Th 10. Malchin / M-V 11. PPM / Br 12. Harth -Pöllnitz/Th 13. Marl / N-W 14. Neuss / N-W 15. Brunsbüttel / S-H 16. Schwarzheide/Br 17. Magdeburg / S-A 18. Kyritz / Br 19. Rostock / Br 20. Riesa / Sa total
1 3 . . . . . . . . . . . . . . . . . . . . . 3
2 7 . . . . . . . . . . . . . . . . . . . . . 7
3 7 . . . . . . . . . . . . . . . . . . . . . 7
12 8 25 . . . . . . . . . . . . . . . . . . . . 33
5 8 37 . . . . . . . . . . . . . . . . . . . . 45
1 . 60 1 . . 1 . . . . . . . . . . . . . . . . 62
. . 80 2 . . 2 . . . . . . . . . . . . . . . . 84
. . 80 2 . . 3 . . . . . . . . . . . . . . . . 85
2000
. . 90 2 5 . 5 . . . . . . . . . . . . . . . . 101
2001
2002
. . 120 2 5 40 5 45 . . . . . . . . . . . . . .
. . 120 2 5 60 5 75 20 5 1 5 1 . . . . . . . . .
. . 120 2 5 60 5 75 100 80 4 24 5 30 50 20 20 20 25 30 . .
. . 120 2 5 60 5 75 100 100 4 40 5 45 100 100 100 100 50 60 50 60
217
299
675
1.181
Source: UFOP & ABI, 2002
•
2003
Imports: -
Additional to local production there are limited volumes of Biodiesel imported by the following producers, which are estimated with a total of 50.000 ton altogether for the year 2000:
1.
NOVAOL: As a subsidiary of CEREOL (owned by Eridania-Beghin-Say / Montedison) it operates Biodiesel production plants in Livorno (Italy) with a capacity of 80.000 ton, a second one in Verdun (France) with 40.000 ton and a third one in Bruck (Austria) with 25.000 ton.
2.
BAKELITE: A subsidiary of RÜTTGERS AG this Biodiesel plant (Italy) has a capacity of 50.000 ton.
3.
DIESTER INDUSTRIES : The French Biodiesel production is dominated by Diester industries with production sites in Rouen (capacity of > 120.000 t/a), in Compiegne and Boussens. Although most of the French Biodiesel is dedicated for the national market some volume is sold into Germany.
25
•
4.
SISAS / PANTOCHIM: With headquarters located in Milan (Italy) SISAS owned a methyl-ester production facilities in Feluy (Belgium). PANTOCHIM was however sold recently to BASF and the Biodiesel production was ceased.
5.
Other European sources: As experience of the year 2001 has shown so far Germany has become an attractive market for imports because the continuously increasing “Eco-Tax” on fossil Diesel at full detaxation for Biodiesel allows higher and increasing margins than in any other country, which attracts all kind of “producers” of what they call “Biodiesel”, including “creative blends” of e.g. fossil Diesel with fatty alcohols or linear alpha-olefins.
6.
Far East sources: Imports of Palm-oil-methyl-ester have happened as well. Having a CFPP of approx. +11°C this fuel has caused filter blocking an consequently injection pump damages. It has to be emphasized that even small volumes of substandard methyl-ester have a tremendous negative impact on Biodiesel’s carefully built positive image.
Exports: -
In order to assure a position on the French market Oelmühle Leer Connemann in Germany applied for a share within the French quota system of a total of 271.000 ton Biodiesel and exported 6.409 ton in 1999; the French quota was increased to 317.000 ton for the year 2000 and Oelmühle Leer applied and obtained a share for 10.000 ton Biodiesel.
7. Quality Management: •
Standardisation -
Initial engine tests around 1990 were run on a type of Rapeseed-oil-MethylEster (RME), which was available from those producers, who used methylester - then mainly based on sunflower oil - for their detergent production, e.g. “EDENOR” from Henkel, Germany.
-
The specification then was highly influenced by the experience of vegetable oil chemistry reflected in the parameters there (e.g. Iodine Value, free glycerine), but quickly parameters of the fossil Diesel sector (e.g. Cetane number, Conradson Carbon Residue) were incorporated.
-
The need for consistent and well-defined fuel quality was identified as being crucial for obtaining the confidence and support of the powerful car industry.
-
Germany was not the first in developing a Biodiesel fuel standard, but took advantage of existing Austrian experience by developing the German standards by the DIN - Deutsches Institut für Normung e.V. (German Institute for Standards), subgroup FAM - Fachausschuss für Mineralöl- und Brennstoffnormung (Technical committee for mineraloil- and fuel standardisation), as coordinated by Dr. Thomas Feuerhelm.
-
The following standards were developed:
26
1. DIN V 51.606 for Plant-oil-Methyl-Ester (PME) / 1994: -
The German DIN group published the DIN V 51.606 in June 1994 and followed the Austrian example of setting a quality standard for Biodiesel as Rapeseed-oil-methyl-ester (RME) under the standard ON C 1190 in the year 1991. The DIN V 51.606 shows however already flexibility for a broader range of oils of vegetable origin (PME).
-
This fuel standard represented the basis for further increasing numbers of warranties such as given by VOLKSWAGEN for all their models from construction year 1996 onwards.
-
It is stated that all experiences so far were made with Rapeseed-oil-MethylEster (RME).
2. DIN E 51.606 for Fatty-acid-methyl-ester (FAME) / September 1997: -
A second improved Biodiesel standard was published by the DIN group in September 1997 as the DIN E 51.606 for FAME (att. no. 3,) which followed the advanced Austrian ON C 1191 for FAME of July 1997 strengthening the position for issuing further engine warranties and creating customer confidence.
-
This was issued just before the starting of the CEN-process, which was triggered by Mandate 245 given by the European Commission to CEN and which demanded to stop any further national initiatives (Prankl, lit.# 13).
3. CEN (European Committee or Standardization) – prEN 14214 / May 2001: -
With the objective to make Biodiesel a European-wide recognised product, which can be made available to all European citizens by free trade and without national restrictions, the European Commission mandated CEN in 1997 to develop standards and test methods concerning the minimum requirements of fatty acid methyl ester used as a fuel for Diesel engines and for heating purposes.
-
The proposed standard is aimed at the following 2 targets: –
enabling a free trading and application of Biodiesel throughout the European Union and
–
providing guarantees for the use of Biodiesel on the part of vehicle and plant producers.
-
As a consequence an essential contribution to the accomplishment of the European Common aims - preserving the environment, securing energy supply and preserving jobs - shall be made.
-
Currently Biodiesel is used as a fuel for Diesel engines and for the production of heat.
-
Therefore, the mandate provides for the development of the following standards: –
Biodiesel as sole Diesel engine fuel (100%)
–
Biodiesel as extender to Diesel engine fuel according to EN590 27
– -
-
Biodiesel sole or as extender to mineral oil products, in particular for the production of heat.
It was decided by CEN to divide the work between two existing Technical Committees (TCs): –
TC 19: Petroleum products, lubricants and related products
–
TC 307: Oilseeds, vegetable and animal fats and oils and their byproducts - methods of sampling and analysis.
The following working groups (WGs) are involved: –
–
CEN TC19: §
WG24: Specification of automotive diesel / Task Force ‘Biodiesel’ (Convenor: Mr. Barry Cahill / P EUGEOT – France)
§
WG25: Specification of FAME used as fuel for heating
§
WG26: Verification of FAME related fuel test methods
CEN TC307: §
–
-
WG1: Test methods on FAME
A co-ordination group was installed where the Chairmen and Secretaries of TC19 and TC307 and the Convenors of the Working Groups are involved.
Participation from Germany: From the very beginning German specialists participated actively with members present in all WG, being able to contribute to all discussions based on the already accumulated experience in the national standard development for Biodiesel applied as a 100-% used fuel. o Mr. Joosten Connemann, Oelmühle Leer Connemann, Leer, o Mr. Jürgen Fischer, Oelmühle Leer Connemann, Leer, o Mr. Birger Kerckow, FNR, Gützow, o Mr. Ulrich Panzer, VOLKSWAGEN AG, Wolfsburg, o Mr. Bernard Blaich, ROBERT BOSCH GmbH, Stuttgart.
-
Participation from other countries and institutions: o
European Commission, Mr. Emmanuel Xenakis, DG TREN, Brussels; in the technical sector represented by Mr. Heinrich Prankl, BLT;
o
Engine & equipment companies: PSA (P EUGEOT & CITROEN, France), DELPHI fuel injections systems (formerly Lucas, UK), FORD (UK), CASE-STEYR (Austria);
o
Mineral oil companies: TOTAL.FINA.ELF (France), FORTUM (Finland), AGIP (Italy), UNIONE P ETROLIFERA (Italy), BP OIL;
o
Biodiesel producers: NOVAOL (Italy, France), DIESTER INDUSTRIES (France), SVENSKA ECOBRÄNSLE (Sweden), ÖLMÜHLE BRUCK (Austria);
o
Research Institutions: IFP (France), BLT (Austria), IMU (Austria), TU Athens (Greece), Austrian Biofuels Institute (Austria), a.o. 28
•
Working Group Quality Management - AGQM : („Arbeitsgemeinschaft Qualitäts-Management”) -
The trigger: Having suffered as an industry in the season 1997 / 1998 from the very low crude oil prices (approx. US$ 9,00 / barrel) on the one hand and by the rather high prices for vegetable oils (above US$ 600,00 / ton) on the other hand the Biodiesel industry obtained more room for manoeuvring as crude oil prices went up again from early 1999 onwards.
-
A number of new investment projects for Biodiesel production were triggered and new producers and importers tried to market their methyl-ester fuels. In practice however Biodiesel of substandard quality was in circulation thus creating continuous mobility problems for customers and damaging the carefully established quality image of Biodiesel.
-
The risk for the established good image of the high quality fuel Biodiesel was evident, as customers would associate this fuel with unreliability and expensive failures.
-
Objectives: Therefore the objective was set to establish a strict quality control system in order to assure fuel quality according to DIN E 51.606 or better.
-
Foundation: The AGQM was formed as an association on 12 December 1999 with UFOP as initiator and communication platform, in which producers from Germany and marketers from importing countries were invited to join. Membership has no national restriction.
-
Activities: Anonymous controllers taking samples at public pumps and sending these samples to independent and accredited laboratories. In case the sample meets the DIN-standard a quality seal is awarded, can be promoted and used visually as a signal of top quality towards the end-user; if the standard is not met the selling pump is informed, it may be listed as an insecure supplier and the quality seal will be withdrawn.
-
Member structure: –
PRODUCERS:
1. BIO-Diesel Wittenberge GmbH, Wittenberge 2. Biodiesel Schwarzheide GmbH, Wiesbaden 3. CAMPA Biodiesel GmbH & Co. KG, Ochsenfurt 4. Hallertauer Hopfenveredelungs-GmbH, Mainburg 5. Landwirtschaftliche Produkt Verarbeitungs-GmbH, Henningsleben 6. LUT Labor- und Umwelttechnik GmbH, Jena 7. Mitteldeutsche Umesterungswerke GmbH&Co KG, Zörbig 8. NEW – Natural Energy West GmbH, Neuss 9. Novaol France, Neuilly-sur-Seine (Frankreich) 10. Novaol Austria GmbH, Bruck a. d. Leitha (Österreich) 29
11. Ölmühle Hamburg, c/o Leer 12. Oelmuehle Leer Connemann GmbH & Co., Leer 13. Rheinische Bioester GmbH, Neuss 14. TME – Thüringer Methylester Werke, Harth-Pöllnitz –
DISTRIBUTORS:
15. BayWa AG, München 16. Beckmann Mineralölhandel GmbH, Osnabrück 17. Carl Büttner Mineralöl-GmbH, Leer 18. Diermeier GmbH & Co. KG, Landshut 19. DS-Mineralöl GmbH, Bremen 20. Handelsvertretung Rosalinde Splinter, Lübbenau 21. Heizöl Kraftstoffe Transporte Schröer-Dreesmann, Ankum 22. H. Jürgen Kiefer GmbH, Bad Münster 23. Lange Mineralölhandel GmbH, Hagen 24. Raiffeisen Centralgenossenschaft Nord-West, Münster 25. Raiffeisen Hauptgenossenschaft Nord AG, Hannover 26. Raiffeisen Warenzentrale Rhein-Main eG, Köln 27. Raiffeisen Zentralgenossenschaft eG, Karlsruhe 28. Saarberg Bio-Energie Handels-GmbH, Heinsberg 29. SISAS GmbH, Vertrieb Chemischer Produkte, München 30. TESSOL GmbH, Stuttgart 31. UmTech, Hamburg 32. Wetterauer Agrar Service GmbH, Wölfersheim 33. Wirtz Brennstoffe Handels- und Transport-GmbH, Neuss –
SUPPORTIVE MEMBERS:
34. ASG Analytik-Service GmbH, Augsburg 35. AT Agrar-Technik GmbH, Schlaitdorf 36. Cimbria Sket GmbH, Magdeburg 37. Ferrostal AG, Division Kirchfeld, Food Technology, Essen 38. INNOVAS – Innovative Energie und Umwelttechnik, München 39. Lurgi Life Science GmbH, Frankfurt am Main 40. Österreichisches Biotreibstoff Institut, Wien (Österreich) 41. UFOP, Union zur Förderung von Öl- und Proteinpflanzen e.V., Bonn
30
-
Financial model: The activities of the WGQM are financed through a fee of 0,001 DEM / Litre of Biodiesel production capacity, which is similar to the model of UFOP.
-
Quality seal: In order to defend the established good image of high-quality and standardised Biodiesel a registered European-wide QUALITY SEAL along well defined criteria and procedures has been created . This quality seal is promoted as a visual signal of top quality towards the end-user at the pump, on bills and on any promotional literature; if the standard is not met, then the producer, the distributor or the selling pump is informed and may be listed as an insecure supplier or may even have to pay a penalty fee.
http://www.agqm-biodiesel.de
***********************
31
8. Economics & Marketing Strategy: •
•
History: -
Following the initial philosophy that Biodiesel is a product derived from agricultural production to be used for agricultural machinery in a closed cycle this first “marketing strategy” focussed on Diesel-engine driven tractors and avoided any usage of fossil oil derivatives.
-
A comprehensive fleet test of tractors representing 95 % of all brand - as completed by BLT in Austria as early as 1990 - resulted in an ice-breaking long list of warranties given by e.g. Case, Fiatagri, Ford, John Deere, Deutz, Lindner, Massey-Ferguson, Mercedes-Benz, Renault, Same, Steyr and Valmet.
-
Following this philosophy it appeared to be logical that only 100 % pure Biodiesel was applied as fuel in Diesel engines, which was realised with full satisfaction in performance and endurance, while environmental advantages became visible also at 100 % and not diluted.
-
From the very beginning Biodiesel was exempted from the mineral oil tax, as only fuels produced from mineral oils are taxed in Germany, which supported the strategy of a 100 % application as well.
Product Definition: -
•
Biodiesel as a product is defined: –
by its technical properties as documented in the German fuel standard DIN E 51.606 and the European fuel standard prEN 14214, and
–
by its environmental and macroeconomic advantages as documented by various studies, which were commissioned and published by UFOP.
Market Definition, Size and Trends: -
The Biodiesel market potential is defined by the size of the existing fossil Diesel fuel market. There is no principal technical limitation for replacing fossil Diesel by Biodiesel, there is however a limitation by feedstock availability.
-
In spite of increasing fuel efficiency and of intelligent mobility concept overall energy consumption in the transport sector is expected to increase further in the European Union.
-
In Europe a consistent gain in market share of Diesel fuelled vehicles is observed, which happens at the cost of petrol-fuelled vehicles. The Diesel engine has become a very modern, electronically controlled and attractive combustion engine in terms of performance, fuel efficiency, fuel economy and low exhaust emission levels, but also with more challenging requirements to Diesel fuels without regard to its fossil or bio origin.
-
Another criterion in defining market size is the estimation of vehicles with given Biodiesel warranties, which has reached the level more than 2,5 mill vehicles.
32
•
Market segmentation: -
The present marketing dynamics were less a result of a carefully laid out marketing strategy but rather a result of two facts: 1. Becomes illegal to market “leaded petrol”. More than thousand tanks in
public fuel pump stations are open for replacement, - Biodiesel is adopted as an attractive option by more than 600 free public fuel pump stations within a few months. 2. The declaration of the CEO of the VOLKSWAGEN AG, Dr. Ferdinand
Piëch at the International Automobile Fair in Frankfurt in 1995 to support Biodiesel and to assure the provisions of warranties for nearly all the Diesel models including the brands AUDI, SEAT, SKODA and VOLKSWAGEN from construction year 1996 onwards, which opened a large market immediately. -
There are however interesting examples of successful marketing strategies and product positioning, especially in the public transport sector: –
Public transport fleets : The most impressive example exists in the city of Heinsberg, where the local bus company switched step by step the total fleet of 130 buses (Mercedes-Benz, M.A.N.) to Biodiesel. Having been in the process to choose between either CNG or Biodiesel detailed calculations had been made and Biodiesel appeared to be the winner.
–
Taxi association: Concerned about their image in cities the German Taxi Association with its president Mr. Hans Meissner can be found in the group of the earliest Biodiesel supporters. Following the first large fleet trial in the city of Freiburg during 1991 – 1992 the German taxis adopted Biodiesel all over the country and took advantage from an improved image at lower fuel cost. Furthermore the Taxi Association represents a significant purchasing power as orders for new taxis are pooled and then negotiated as a package. As the association wanted to have warranties for Biodiesel driven vehicles such guarantees are now provided by Mercedes-Benz, Volkswagen, Audi and Volvo for their models.
–
Forestry companies: One advantage in such companies is the existence of skilled and experienced machinery mechanics, who know their Diesel engines and fuel systems inside out.
–
Lake Constance Yacht Clubs: Being Europe’s second largest drinking reservoir special care is applied by the sailing and motorboats as owned by the Yacht clubs around Lake Constance. Biodiesel is one part of their initiative to keep the environment clean without any toxic fuel water contaminations.
33
•
Distribution: -
•
In 1996 the marketing of “leaded petrol” was made illegal, and more than a thousand tanks in public fuel pump stations were open for replacement. Taking advantage of this unique opportunity Biodiesel was adopted as an attractive option by more than 600 free public fuel pump stations within a few months all over Germany with approx. 1.000 Biodiesel pumps today.
Economy: -
The key factors in the economics of Biodiesel production and marketing are feedstock cost and Biodiesel selling prices as two variables, which are influenced by world market conditions. On a national level it is the taxation policy (see table # 7), which influences the profitability. As shown in figure # 1 vegetable oil prices - as produced from soybean, oil palm, sunflower and rapeseed as the leading oilseeds in the world - can vary between extremes with substantial impact on Biodiesel production cost. As shown below it becomes evident that the Biodiesel industry had to face difficult times in the years 1997 and 1998 at a time, when also crude oil prices were at a record low level:
Figure # 1: Rapeseed Oil Prices US$ / mt
700 650 600 550 500 450 400 350
Ok t
ep S
l
ug A
Ju
n Ju
n Fe b M ar A pr M ay
Ja
99
98
97
96
95
94
93
92
91
00 20
19
19
19
19
19
19
19
19
19
19
90
300
Source: UFOP
Development of crude oil prices as the second determining factor for pricing of Biodiesel is shown in figure # 2 starting with 1999. The recovery of the crude oil price from below 10 US$/barrel made it possible for the Biodiesel producer to move from a weak position back into profitable production conditions in Germany:
34
Figure # 2:
Source: Tecson
Crude Oil Price US$ / barrel 40 35 30 25 20 15 10 5
20 01
20 00
19 99
0
Figure # 3:
Source: IWR
Pricing Biodiesel / Diesel in DEM / litre
1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100
Biodiesel
O kt 00 D ez 00 Fe b 01 Ap r0 1
00 Au g
00 Ju n
O kt 99 D ez 99 Fe b 00 Ap r0 0
99 Au g
Ju n
99
1,000
Diesel
35
-
Figure # 3 shows that presently fossil Diesel is the price leader and Biodiesel the follower with a discount, also as an indication of Biodiesel’s vulnerability towards low crude oil prices. First steps are visible to position Biodiesel as an independent product with its own pricing dynamics, justified with its many differential advantages regarding environmental and macroeconomic advantages.
9. Political measures: •
Germany: 1. Detaxation:
2.
-
German law defines clearly that mineral-oil taxation applies only to mineral-oil based fuels such as petrol and Diesel fuel. Logically any fuel derived from other sources such as Biodiesel is free from being taxed.
-
Consequently Biodiesel enjoys full detaxation since the very beginning, and no new and specific law had to be defined and negotiated.
Ecological taxation (“Öko-Steuer” = “Eco-Tax”): -
The new government under Prime Minister G. Schröder (SPD) introduced an additional tax on fossil fuels based on the objective to reduce greenhouse gas emissions and to transfer related cost to the polluters.
-
From 1 April 1999 onwards an increase of 6,00 DEM / 100 litre will be added to the mineral-oil tax accumulative each year up to the year 2003, i.e. a total of 30,00 DEM / 100 litre.
-
Biodiesel as being a contributor to reduce greenhouse gas emissions is exempted from this new type of environmentally oriented taxation.
-
Model calculation and comparison Diesel / Biodiesel (February 2000):
Table # 7:
Source: D. Bockey
Prices and taxation for fossil Diesel and Biodiesel
in DEM / 100 litre Refinery untaxed Oil mill Total mineral-oil tax Refinery fully taxed Biodiesel plant min. Biodiesel plant max. assumptions:
fossil Diesel 2000
Biodiesel 2001
2002
2003
42
42
42
42
74 116
80 122
86 128
92 134
80 0 99 105
US$ 28,--/barrel crude oil DEM 80,--/100 litre rapeseed-oil without VAT
36
•
European Union / European Commission: 1. Acreage: those policy measures, which are related to agricultural production (Setaside scheme for non-food crops, agreements within the frame of WTO, etc.) are described in § 5 / Feedstock. 2. Detaxation scheme (1994): -
In 1994 the French Commissioner for Taxation, Mdm. Christiane Scrivener developed and negotiated a first draft for a European Directive with the obje ctive to support the development of biofuels (Bioethanol and Biodiesel) in Europe.
-
This draft suggested a detaxation scheme for both biofuels and was presented by Mdm. Scrivener at the 1st European Motor Biofuels Forum in Tours / France in 1994.
-
This initiative was already accepted by the European Parliament, it did not reach however the required unanimous agreement in the European Council of Ministers as it faced strong opposition expressed by the United Kingdom, Denmark and the Netherlands. (Only recently Mr. Tony Blair, Prime Minister of the United Kingdom, allowed a 20-penny tax cut for Biodiesel, which he announced just ahead of the elections in June 2001.)
3. Directive for the Quality of Petrol and Diesel Fuels (1996): -
On initiative of DG XI (General Directorate for Environment) and as a result of the European Auto-Oil programme a Directive for the quality of fuels was developed, which has the objective to reduce exhaust emissions (nitrogen oxides, unburnt hydrocarbons and particulate matter, etc.) The core sectors are the environmental fuel specifications for petrol and diesel fuels, defining limits for e.g. sulphur content with max. 350 ppm and polycyclic aromatic hydrocarbons with max. 11 %m/m in fuels for the Diesel engine.
-
By nature there are less than 10 ppm sulphur and no polycyclic aromatic hydrocarbons in Biodiesel, thus demonstrating the high environmental value on the contrary to fossil Diesel, meeting the strict Directive’s requirements already now.
4. White Paper on Renewable Energy (1998): -
The DG XVII (General Directorate for Energy) developed and published in 1998 the “Energy for the Future: Renewable Energy - White Paper for a Common Strategy and an Action Plan”.
-
The White Paper asks for increasing the share of renewable energy from 5,3 % in 1995 up to 12 % market share by the year 2010. Within this paper energy from biomass is seen as the most important contributor of all the various forms of renewable energy.
-
The following results are expected: reduction of greenhouse gases by 400 mill ton, slower exploitation of fossil resources, creation of additional 500.000 jobs, development of new technologies and related export market opportunities.
-
For biofuels the target is defined with 5 mill ton (crude oil equivalent) by the year 2003 and 18 mill ton by the year 2010.
37
5. Green Paper on Energy Supply Security (2000): -
On November 2000 the DG TREN (General Directorate for Transport & Energy) published the Green Paper “Towards a European Strategy for the Security of Energy Supply” dealing with a key issue, which so far had been rather neglected by the European Union member states.
-
It states that “biomass … could significantly reinforce sustainable security of supply,” and that “it is important to ensure the continuing and growing presence of biofuels … in the fuel market.” Member States are challenged to “make a firm commitment to achieving the ambitious and realistic objective of the White Paper (for Renewable Energy) for 2010, namely, 8 % of biofuels …” It is quite obvious that Germany tries hard to implement those guidelines and may become a leader within the European Union.
6. Kyoto-Protocol: -
There is certainly also a growing interest in Biodiesel on the level of the European Commission, when it comes to meet the commitments as made in the Kyoto-Protocol in reducing greenhouse gas emissions, as stated by the Commissioner for the Environment Mrs. Margot Wallström: “The EU-Ministers have emphasised that they are committed to the Kyoto-Protocol and that they are ready to ratify it.” This statement was made on 12 June 2001 as an answer to the hesitations concerning the Kyoto-protocol as expressed by Mr. George W. Bush, president of the USA.
7. New Directive Proposals for obligatory use and detaxation of liquid biofuels: -
-
-
On 7 November 2001 the European Commissioner for Transport & Energy (DG TREN), Ms. Loyola de Palacio published a „Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions, on Alternative Fuels for Transportation and on a Set of Measures to Promote the Use of Biofuels” COM (2001) 547 -, which describes a well documented situation analysis regarding –
the high and ever increasing risk of a high dependency on mineral oil imports especially in the transport sector and therefore the poor security of energy supply to the European Union;
–
it describes furthermore the need to reduce greenhouse gas emissions and climate change risks as committed in the Kyoto-protocol. Presently transport continues to show further increasing greenhouse gas emission levels.
Consequently DG TREN published two Commission Proposals for a Council Directive: –
The first on “the Promotion the Use of Biofuels” and
–
the second on “an Amendment to Directive 92/81/EEC with Regard to the Possibility of Applying a Reduced Rate of Excise Duty on Certain Mineral Oils Containing Biofuels and on Biofuels.”
Within the group of biofuels for transport the 2 key products with the largest potential of contribution in reaching the set goals are Biodiesel for the Diesel fuel market and Bioethanol for the petrol market. 38
-
The first Directive Proposal is setting goals for obligatory market shares of sold biofuels in each member state and is asking for 2 % market share by 2005 and 5,75 % by 2010. As mentioned earlier it was estimated for Germany that the maximum volume for Biodiesel, which is limited by acreage available, can reach 1,2 mill t or 4 % market share. This will be reached already ahead of the target date 2005, but the further increase to 5,75 % by 2010 may need imports of either feedstock or final Biodiesel into Germany.
-
The second is amending an existing Directive, which permits already today detaxation measures, but limited for biofuels produced in pilot plants only. As many member countries have established commercial sized production plants already, the status of pilot plant production has become outdated. The Directive Proposal permits detaxation of up to 50 %, which in the case of Germany and Austria is not acceptable, as both countries are marketing 100-% pure Biodiesel with 100 % detaxation with great success.
10. Conclusions : •
Summarising altogether the German Biodiesel success story it boils down to the following key success factors: 1. The vision of German farmers and breeders for the opportunity of a “rapeseed revolution” - made visible by the foundation and the prospering of UFOP. 2. The ambition of a committed and skilled investors to produce Biodiesel at highest possible quality as demonstrated by Oelmühle Leer Connemann. 3. The consequent marketing of Biodiesel as a 100-% pure fuel of standardised high quality for the modern Diesel engines. 4. The ability to win the confidence of Volkswagen and other vehicle producers for issuing the needed warranties. 5. The political support as expressed by the climate-change motivated “Öko-Steuer” = Ecological taxes. 6. The decrease of vegetable oil prices to reasonable levels as an external factor. 7. The increase of crude oil price back to a level of approx. US$ 20,-- / barrel as an external factor.
11. References: 1. Büchelhofer, R. (2000) Modern Engine Concepts from Volkswagen, Chinese - German Environmental Conference, Beijing, China. 2. Connemann, J. (2000) Biodiesel’s contributions for Energy Supply Security and against Climate Change. Expert Hearing European Commission, Brussels, Belgium. 3. FICHTE, (1994) Handbook of Analytical Methods for Fatty Acid Methyl Esters Used as Diesel Fuel Substitutes. FICHTE / Technical University Vienna, Vienna, Austria. 4. Havenith, C. (1993) Pflanzenölmotoren (plantoil-engines). Proceedings Symposium Kraftstoffe aus Pflanzenöl für Dieselmotoren (Fuels from plantoils for Diesel engines), Technische Akademie Esslingen, Ostfildern, Germany. 5. Kley, G. (1999) Germany striving for 3 tons Biodiesel per hectare. Proceedings 3rd European Motor Biofuels Forum, Brussels, Belgium 39
6. Knepper, M. (1992) Adaption des Moteurs Diesel Deutz aux Biocarburants. Proceedings Les nouvelles filières industrielles des produits végétaux: les biocarburants. Nancy, France. 7. Körbitz, W. (1998) Review on Commercial Production of Biodiesel Worldwide. International Energy Agency Bioenergy – Liquid Biofuels Activity. Published by Federal Institute for Agricultural Engineering, Wieselburg, Austria. 8. Körbitz, W. (2000) Clean City Network, Report for the Network on Non-Technical Barriers for Liquid Biofuels. Project in the ALTENER-Programme of the European Commission. Athens, Greece. 9. Krahl, J. ; et al. (1999) Environmental and Health Effects Caused by the Use of Biodiesel. SAE Meeting Toronto. STZ, Coburg, Germany. 10. Machold, W., Dobbins, P.J. (1991) Effect of Biodiesel on motor-oils in Diesel-engines / Castrol. Pilotprojekt "BioDiesel" / Research Reports of the Institute for Agricultural Engineering. Wieselburg, Austria. 11. Mittelbach, M. (1991) Methods for the Transesterification of Vegetable Oils. Proceedings AVL-List Conference Engine and Environment. Institute for Chemistry, University Graz, Austria. 12. Pischinger, G., Clymans, F.C., Siekman, R. (1981) Diesel oil substitution by vegetable oils fuel requirements and vehicle experiments. New Energy Conservation Technologies and their Commercialization. Springer-Verlag, Berlin/Heidelberg, Germany. 13. Prankl, H., Wörgetter, M. (1999) Standardisation of Biodiesel on a European Level, Federal Institute of Agricultural Engineering (BLT), Proceedings 3rd European Motor Biofuels Forum, Brussels, Belgium. 14. Richter, H. (1991) Rapsöl als Kraftstoff für Dieselmotoren / Porsche AG - Stuttgart. Proceedings Symposium Kraftstoffe aus Pflanzenöl für Dieselmotoren (Fuels from plantoils for Diesel engines). Technische Akademie Esslingen, Ostfildern, Germany. 15. Schäfer, A. (1991 + 1992) Pflanzenölfettsäure-Methyl-Ester als Dieselkraftstoffe / MercedesBenz. Proceedings Symposium Kraftstoffe aus Pflanzenöl für Dieselmotoren (fuels from plantoils for Diesel engines). Technische Akademie Esslingen, Ostfildern, Germany. 16. Scharmer, K. (1991) Biokraftstoffe für Dieselmotoren (biofuels for Diesel engines). Proceedings Symposium Kraftstoffe aus Pflanzenöl für Dieselmotoren (fuels from plantoils for Diesel engines). Technische Akademie Esslingen, Ostfildern, Germany. 17.
Scharmer, K., Golbs, G., Muschalek, I. (1993) Pflanzenölkraftstoffe und ihre Umweltauswirkungen, Argumente und Zahlen zur Umweltbilanz (plantoil fuels and their influence onto the environment - arguments and figures for a full cycle environmental balance). Report for UFOP. Bonn, Germany.
18. Schindlbauer, H. (ed.) (1995) Proceedings: 1st International Conference on Standardisation and Analysis of Biodiesel. FICHTE / Technical University, Vienna, Austria. 19. Schöpe, M. (1996) Economic Aspects of Biodiesel Production in Germany / ifo-Institute Munich. Proceedings: 2nd European Motor Biofuels Forum, Graz, Austria. 20. Syassen, O. (1991) Situationsanalyse zur Problematik nachwachsender Kraftstoffe (situation analysis about renewable fuels). Study for the Ministry of Agriculture in Rheinland-Pfalz. Hemsbach, Germany. 21. UFOP (1993 - 2000) Annual Reports 1993 - 2000, Bonn, Germany. 22. UFOP (1993 - 2000) UFOP-Newsletter, periodical newsletter, Bonn, Germany. 23. UFOP (2000) “25 Years Quality Rapeseed”, Summary of Successful Breeding, UFOP - special issue, November 2000, Bonn, Germany.
40
24. UFOP (2000) Conference “10-Years-UFOP”, December 2000 in Berlin, Proceedings , Bonn, Germany. 25. Vellguth, G. (1982) Eignung von Pflanzenölen und Pflanzenölderivaten als Kraftstoff für Dieselmotoren, Grundl. Landtechnik, FAL, Braunschweig, Germany. 26. Walter, Th. (1992) Untersuchungen des Emissionsverhaltens von Nutzfahrzeugmotoren am Prüfstand bei Betrieb mit RME (investigations on emissions of truck engines in a bench test when using RME) / Swiss Research Institute EMPA, Dübendorf. Proceedings - Symposium "RME" - Kraftstoff und Rohstoff. FICHTE / Technical University Vienna, Austria. 27. Wörgetter, M. (1991) Flottenversuch zur Erprobung von RME als praxistauglicher Kraftstoff (fleet tests with RME as a fuel for real life usage). Pilotprojekt "Biodiesel" / Research Reports of the Institute for Agricultural Engineering. Wieselburg, Austria. 28. Wurst, F., Boos, R., Prey, Th., Scheidl, K., Wörgetter, M. (1991) Emissionen beim Einsatz von RME an einem Prüfstandmotor (emissions on a bench test Diesel engine using RME). Pilotprojekt "Biodiesel" / Research Reports - Institute for Agricultural Engineering. Wieselburg, Austria.
Österreichisches Biotreibstoff Institut Austrian Biofuels Institute
www.biodiesel.at
41
