BioMatNet Item: ALTENER - NTB Liquid Biofuels Network - The European Network for removing non-technical barriers to the development of liquid biofuels

[BioMatNet Database - European Commission]

ALTENER
NTB Liquid Biofuels Network - The European Network for removing non-technical barriers to the development of liquid biofuels

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ALTENER Programme : Biological Conversion : Liquid Biofuels and Biogas : Sugar : Thermochemical Conversion : Vegetable Oil/Fat

NTB Liquid Biofuels Network
The European Network for removing non-technical barriers to the development of liquid biofuels

Introduction
The production of energy from biomass can reduce fossil energy use while preserving the environment. For several years, and even before the new Common Agriculture Policy, European countries have been undertaking research programmes to develop non food outlets for agriculture products. Liquid biofuels show the following advantages in engines and boilers:

Contribution to the reduction of air pollution generated by transportation and heating systems;
Easy substitution of fossil fuels (no modification of engines):
Convenience of distribution (by pipe, trucks, or local supply);
Alternative solutions for transportation, taking into consideration a new profile of partnership between rural and urban areas;
Use of additives with fuels in line with aspects of reformulation;
Support to the development of employment in e. g. rural areas.

Objectives of the Network
The NTB Network, sharing knowledge and experience aims to establishing a co-ordinated action in favour of liquid biofuels:

Identification of non technical barriers
Recommendations and solutions promoting liquid biofuels
Setting up co-operation programmes in favour of the development of liquid biofuels
Support to the development of employment in rural areas

The NTB Network is currently acting to

Propose a European methodology aimed at the viable development of liquid biofuels, taking into account the Agenda 2000 assessments
Enhance the acceptability of liquid biofuels for use in modern engines, compatibility with national environment regulations, and energy and economic-environmental-social efficiency on a total system basis

The NTB network activities
Identification of the Non Technical Barriers (Phase I)

Energy balance assessments;
Environmental Impacts;
Tax system and regulations;
Lack of specifications for engine and heating systems;
No establishment of economical solutions, taking into consideration technical data and existing process;
Lack of communication and public acceptability.

Strategies to overcome the barriers have been identified (Phase II)

Ensure a lower relevant price of raw material, to help a future competitiveness of biofuels versus fossil fuels;
Undertake a study to quantify externalities for both fossil fuels and biofuels;
Implement incentive policies (tax relief on biofuels, ecotax on fossil fuels...) to promote biofuels and put them on the same competitiveness level as fossil fuels;
Set up European standards, considered to be the precondition for acceptance of the biofuels.

Future prospects (Phase III)
The development of liquid biofuels has to be considered in coordination with objectives highlighted in the White Book on Renewable Energy (adopted by the European Commission on 26 November 1997) setting up a comprehensive strategy and action plan designed to achieve by 2010 the goal to double from 6% to 12% the share of renewable energies in the total energy demand in the European Union. According to this White Paper, biomass should supply more than 80% of this additional contribution. Liquid Biofuels should contribute by 2010 to 2% corresponding to 5 Mtoe to the market share of total fuel consumption. Several measures have been identified to achieve these goals, such as facilitation of internal market measures, reinforcement of community policies and strengthening the co-operation between member states.

Current use of biofuels in member states

Austria - Pure Rape Methyl Ester used in engines
Finland - Unmarked use of reformulated gasoline and diesel
France - Rape and Sunflower FAME used in engines, ETBE used in engines (Captive fleets and unmarked), Sunflower methyl ester used as a domestic fuel blender.
Germany - Pure RME used in all kind of vehicles
Greece - Sunflower, Maize, Olive ME and frying oils ME on pilot tests
Ireland - Pilot tests using RME, Research and Development on used frying oils in engines.
Italy - Sunflower ME used in boilers
Spain - Sunflower ME
Sweden - RME on captive fleets, pure ethanol used in engines
A positive energy balance

Energy balances
Life Cycle analysis of ETBE from sugar beet Ethanol

Life Cycle Analysis has been used to estimate the consumption of primary energy related to all steps in the production of ETBE, MTBE and ethanol. The method dissociates renewable and fossil energies. The energy balance, for which only non renewable energy is taken into account, has been established as the ratio of biofuel energy produced divided by total fossil primary energy used. This ratio has been estimated for several products using the Life Cycle Analysis Method. Results have been calculated as follows:

Gasoline - 0 74-0.84
MTBE (from fossil fuel) - 0.73
ETBE (from sugar beet ethanol)- 0.93
Ethanol (from sugar beet) - 1.18, where ethanol is obtained 50% from green juice, 50% from GS2 (Green syrup after the second cycle).

As indicated the energy balance for ETBE is slightly below 1, as the synthesis of ETBE requires the consumption of isobutylene, of fossil origin. However, Ethanol and ETBE are the products having the best energy balances.

Rape Oil and Rape Methyl Ester
The energy balance has been defined either as (R) Biofuel energy produced/ Total fossil primary energy used, or as (R2) Biofuel energy produced/Total energy allotted to biofuel. This has given values for fossil diesel of 0.88, for rape oil of R, = 3.2 to 3.5 and for Rape Methyl Ester (RME) R, = 1,9 and R2 = 2.7.

A global positive environmental impact
Public concern about health effects due to urban air pollution in the late 1980's and early l990's, has became more significant, pushing European governments into the implementation of drastic legislation (on cars and fuel qualities). Recent years have seen many pressures on vehicle and fuel performance to meet increasingly stringent emissions regulations and improve fuel consumption. The driving force for using biodiesel and ETBE/Ethanol as alternative fuel is a desire to reduce global CO₂. Thus, it is generally claimed that alternative fuels will reduce both regulated (carbon monoxide, total hydrocarbons, nitrogen oxides, particulates) and unregulated exhausts (aromatic compounds, benzene), emissions while reducing drastically sulphur emissions. Although much information have been collected on the environmental impacts of biofuels, a complete assessment of these impacts at European and international levels is still very difficult. Therefore, The European EPEFE programme, set up in 1994, was mainly aimed at establishing common European assessments of positive environmental impacts of liquid biofuels.

Use of oxygenates in addition with premium fuels in France
Updated tests undertaken in France on catalyst and non-catalyst vehicles revealed interesting positive impacts of using oxygenates fuels (e. g gasoline in addition with added oxygenates such as ETBE produced from sugar beet). Adding ETBE to gasoline leads to a decrease of CO, unburned HC and aromatic compounds such as benzene.

Use of reformulated gasoline in Finland
Reformulated gasoline in Finland contains less sulphur and benzene than conventional gasoline. Its lower vapour pressure means lower volatility and less volatile organic compounds into the air than from conventional gasoline. Reformulated gasoline is unleaded and has an oxygen content of around 2%. MTBE and TAME gasoline components provide the oxygen. The emission benefits with reformulated gasoline are significant. Biomass based ethanol or methanol can be utilised as raw material for ETBE / MTBE production when the price will be competitive with natural gas based components.

Use of mixed biodiesel in France
The absence of sulphur in FAME gives to this product a real environmental advantage in comparison to diesel fuel. As a matter of consequence, according to several European studies (Austria, Germany, France), the mutagenic power of exhaust gas of pure ester is about 60% below that of diesel fuel. The overall impact of ester on air pollution depends on the incorporation rate.

Toward specification process of biodiesel in Europe
Standards are of vital importance for the producer, supplier and user of biodiesel. A standard is a prerequisite for the market introduction and commercialisation of new fuels. As the production of biodiesel in Europe has reached a considerable market position, it is essential to develop a common European standard. The "International Conference on Standardisation and Analysis of Biodiesel" of 1995 showed a high interest in starting the development of a European standardisation process.

National standards have been adopted in member states where the biodiesel use is relevant. The following table shows a comparison of the biodiesel standards and specification in Europe:

In 1997 the European Commission gave a mandate to CEN for the elaboration and adoption of standards for fatty acid methyl ester (FAME) as fuel for diesel engines and space heating at European level: - FAME as sole diesel engine fuel (100%); - FAME as extender to EN590 diesel engine fuel; - FAME as sole fuel or as extender to mineral oils for the production of heat. Standards will be proposed by the end of 2000.

Financial incentives and tax system policy
In order to be able to compete with fossil fuels routes, renewable energies routes and possibly liquid biofuels should be financially supported, through a tax relief policy or though direct aid granted to the channel (direct support to farmers, industries; tax relief on green energy. Considering the future development of ETBE and methyl ester in Europe, it would appear that in the short and medium term, tax relief is the most effective way to ensure that biofuels are competitive. This already applies without any problem to other fossil fuel (GPL) and to other forms of energy used in transport (electricity). For tax legislation to be adopted at Community level, the members states will have to be unanimous, and at present this appears to be unlikely. Finally, the current discussion on Agenda 2000 will influence decisions on possible support of non food outlets for agricultural production. Tax relief and other financial incentives in favour of liquid biofuels in Europe are as follows:

Austria Tax relief (95%) adopted for pure biodiesel used as an engine fuel.
Belgium Tax relief (100%) adopted for experimental projects using plants with a capacity under 5 000 tons/year, from 1994 to 1996.
Finland Tax incentive for reformulated diesel fuel (0,025 ECU/L) and for reformulated gasoline (0,008 ECU/L).
France Tax incentive adopted for VOME mixed with diesel (0,35 ECU/L) and for ETBE mixed with gasoline (0,22 ECU/L).
Germany No excise tax for biodiesel substituting standard fuels, either unblended or blended with fossil diesel in the vehicle tank.
Greece No tax relief and no financial incentives.
Ireland No tax relief and no financial incentives.
Italy Tax relief adopted on a maximum quantity of 125 000 tons of pure biodiesel operating for a limited time
Spain Tax relief on methyl ester used in experimental project and no financial incentives.
The Netherlands No financial incentives, but tax relief on bioethanol is requested.

Recommendations and prospects
Ethanol and ETBE

European countries are considering the use of reformulated fuels (with addition of oxygenates), as it is a relevant solution for reducing pollution in highly polluted urban regions. The EPEFE programme (European Programme on Emissions, Fuels and Engines Technologies) was set up, mainly to drawing up future anti-pollution legislation. In this new context, oxygenates provide interesting properties:

for reducing CO and HC emissions and preserving the ozone layer;
for decreasing aromatic and benzene (unregulated compounds) content of the fuel.

To become competitive with the fossil methanol, ethanol should:

be supported by a tax relief in the near future;
meet with an efficient competitivity in a long term view from the production to the use.

The new European Directive concerned with the composition of fuels has been unanimously adopted by the Parliament in Feb. 1998, and is a first door opened to the setting up of drastic regulations directly targeted to oil companies and car manufacturers. The addition of oxygenates through ETBE should be considered as a priority, especially in view of the target proposed by the White Paper on renewable energy (2% of market share for liquid biofuels by 2005).

Fatty Acid Methyl Ester
A range of studies have shown the technical reliability of using biodiesel as a sole fuel or blended into diesel, in engines or boilers. Economic profitability should be achieved by:

development of R & D programmes aimed at reducing agricultural and processing costs;
public (governmental) support through a tax relief considering the environmental benefit of the fuel (reduce global C0₂, sulphur...).

Agenda 2000, the new prospective European programme, and the new Common Agricultural Policy, is not claiming any alternative outlets for farm products. Therefore actors should work together to promote and develop the sector, acting at key level:

for reconsidering the price of raw material dedicated to non food outlets;
for establishing support scheme (at process level) to make the non food use sustainable.

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