International Activities - Europe 2nd European Motor Biofuels Forum

Introduction

The 2nd European Motor Biofuels Forum was held in Graz (Austria) in September 1996, with the support of the European Commission among others. The objectives were to bring together industrial representatives of relevant industry together with researchers and policy makers in order to reach a consensus of the feasibility of producing transport fuels from crops in the EU and outline what support measures might be required to enhance the development of this sector of non-food use of agricultural raw materials.

Policy

Generally the European energy policy has defined clear objectives to reduce the dependency on fossil petroleum imports (76 %), to increase the security of sustainable energy supply and to support clean and efficient energy technologies (CEET), specifically for the transport sector. These targets can be supported by locally produced biofuels as a renewable energy source (RES). The European environmental policy is requesting clean fuels and is supporting efforts which are reducing risks to the environment in terms of air, water and soil. Biofuels appear to be in a good position to contribute to the reduction of emissions with global and local impacts and to turn waste materials into clean energy. The European common agricultural policy (CAP) again has taken steps to foster production of needed raw materials for industrial purposes, and the European taxation policy in general supports the idea of taxation incentives for young and emerging industries, however with a time limit.

Results and highlights

Co operation: Over the last few years the degree of co operation between agricultural organisations, the processing industry, mineral oil and fuel companies, the industries for vehicle, tractor and engine production and scientific institutions across the EU has increased, supported in part by the various programmes of the EC. As a result in some sectors technical problems and economical challenges have been overcome leading to market introduction of biofuels (especially biodiesel) in some countries.

Increased acceptance by customers: Some papers reported an increasing acceptance by end users showing a growing confidence in biofuels as transportation fuels. In part this is based on needs for security in sustainable energy supply, a clean environment, as well as macroeconomic aspects such as job creation and a favourable trade balance. Increased efforts for information dissemination and public discussion may lead to an greater acceptance, that these benefits justify a higher price as compared to fossil-derived transport fuels.

Quality assurance: Experience has shown that the assurance of a well defined and guaranteed quality is a must in order to win the customer's confidence and engine manufacturers' support. Significant progress has been made to achieve these goals of quality improvements in defining safe standards and analytical methods (e.g. the Austrian and German Biodiesel standards) and in improving process technologies accordingly. Quality assurance is seen as key to a successful marketing strategy. Security of sustainable energy supply According to the International Energy Agency energy security is, if anything, a more vital issue now than in 1973, as the production demand gap is declining and the energy demand of the non OECD world is growing dramatically. As a logic conclusion there will be a need for all alternative fuels in the transport sector, which depends now over 95 % on finite fossil fuel. Biofuels will represent a major option in the supply of transportation fuel.

Bioethanol: In Europe France is by far the biggest producer using sugarbeet as the raw material and processing Bioethanol into ETBE in various refineries.

Biodiesel: Europe has taken a leading position with about 500.000 t of Biodiesel produced in 1995, mostly in France, Italy, Belgium and Austria at an existing capacity of 1 mill ton in more than 20 production sites, which is less than 1 % of the diesel market today.

Biogas: Biogas, being another type of alternative transportation fuel, has been developed in a number of local projects in France, Sweden and other states in the European Union.

Market share: Overall market shares are low at present, but are expected to expand with production cost declining and tax incentives being given, triggering further production plants. Market shares may also increase on a relative basis, reflecting ongoing reduction in fuel consumption reflecting efficient traffic management and increased fuel economy per km driven.