ALTERNATIVE FUELS

1. ALTERNATIVE FUELS Vol. 1 Teaching & Learning Materials – Update 2007 funded within the 6th Framework Programme of the EU as Specific Support Action

2. Definition • Alternative fuels are defined as all fuels, with the exception of the mineral oil products petrol and diesel, that may contribute towards reducing emissions of air pollutants, greenhouse gases or the consumption of finite resources. The following applies as a general principle: “There is neither one single biofuel nor one alternative fuel, but rather a multitude of liquid, gaseous and electrical sources of energy“. [BMU_2006] • For each of these fuels there are different manufacturing processes (fuel pathways) available. • As a general rule, these fuels can either be used in their pure forms or blended with other fuels.

3. Waste materials Natural gas Mineral oil Renewable electricity Biogenic waste materials Plant parts fruit, seeds Electricity Coal Conventional resources Renewable resources Aims: Reduction of GHG emissions, air pollutants, costs ... Side effects: Shift of emissions and consumption in terms of materials used, as well as place and time of application Alternative fuels liquid electrical energy gaseous Definition

4. Production process for biogenic fuels Hydrogen Hydrogen Hydrogen Synthesis/ Processing Gasification BtL Synthese/ Aufbereitung Synthesis/ Processing Gasification Gasification BTL BTL Biomethanol Biomethanol Biomethanol Biomass (biogenic residues, fruits, seeds) Vegetable oil Extraction Biomass (biogenic residues, fruits, seeds) Biomass (biogenic residues, fruits, seeds) Vegetable oil Vegetable oil Transesterification Biodiesel Extraction Extraction Trasesterification Transesterification Biodiesel Biodiesel Bioethanol Bioethanol Bioethanol Fermentation Transesterification ETBE Fermentation Fermentation Transesterification Transesterification ETBE ETBE Biogas Biogas Biogas Regenerative electricity Electrolysis of water Hydrogen Electrolysis of water Electrolysis of water Hydrogen Hydrogen regenerativer Strom Regenerative electricity Source: http://www.bmu.de/files/erneuerbare_energien/downloads/application/pdf/broschuere_ee_innovation.pdf Source: http://www.bmu.de/files/erneuerbare_energien/downloads/application/pdf/broschuere_ee_innovation.pdf

5. Goals for the use of alternative fuels Reducing the discharge of gaseswith global warming potential Reducing emissions that are harmful to the environment and to people’s health Decreasing the dependency on mineral oil Improving the security of supply Safeguarding the supply of “affordable” fuels Opening up additional potentials for innovation and employment

6. Required reduction of pollutants in the transport sector Spatial reference Local Regional Global Particles NOx Nitrogen oxides NO2 Noise Greenhouse gases Low priority High priority

7. Assessment of selected fuels Source:KolkeR_2004, EichmannV_2006

8. Current status and developments Continuing standardisation of fuel quality and corresponding monitoring systems An increase in the EU-wide blend ratio stipulated for biofuels in petrol/diesel [EC_845/2006] from the current 5.75% to 10% by 2020 Discussion of the origin of biomass, of the limits on capacity and of the criteria for trade in biomass and biofuels from the perspectives of social and ecological impacts, as well as of the existing situation with regard to competition for resources Changeover to the use of second-generation biogenic fuels and to a broader range of raw materials Conversion of production plants for alternative fuels, e.g. FT fuels, on a large scale

9. Economic challenges Ensuring planning security for investors, farmers, producers, filling station owners, fleet operators and private users of alternative fuels Reducing of inefficiencies caused by an overly strong segmentation of the fuel and vehicle markets Focusing more strongly on production and use of second-generation fuels Achieving the transition to stand-alone profitability for the alternative fuels used

10. Technical challenges Technological and cost-related optimisation of production processes, in particular for second-generation fuels, as well as their transition into large-scale industrial use Utilisation of existing technical reduction potential in conventional vehicles and engines Further development of long-term options for the use of alternative fuels Safeguarding of reliable fuel quality with the focus on verifiable standards

11. Ecological and social challenges Development of suitable criteria and rules for the evaluation and trade of biogenic sources of energy on international (and domestic) markets Establishment of sustainable limits for the use of biogenicresources More careful consideration of potential competition between the alternative uses for land areas, raw materials, foodstuffs, etc.

12. Political challenges Better integration of fuel strategies within a superordinate energy policy Implementation of trans-sectoral mechanisms to promote efficient use of scarce resources Utilisation of existing efficiencies in transport and infrastructure planning with the aim of improving or maintaining a sufficiently high and consistent level of mobility with a lower volume of traffic Harmonisation of the framework for the use of alternative fuels and propulsion systems Increased transfer of the results derived from research efforts and practical application to education, policy makers and potential users Establishment of medium- and long-term sustainable financing mechanisms Introduction of mechanisms that ensure that government support for biogenic sources of energy also leads to the desired employment effects at a national level

13. Promotion of biofuels in the EU-25 Source: Thrän et al._11/2005

14. Biofuel shares introduced in the EU-25 2%(alternatively, extra tax payments for mineral oil companies) 7% FR 2.5% 4.3% 5.75% AT 1.2% 2% 3% 4% 5% SLO LT CZ 4.4% DF; 1.2% PF 5.75% DF; 2% PF GE 2% 5.75% NL 10/2005 01/2005 2006 2007 2008 2009 2010 DF – diesel fuel; PF – petrol fuel Source: EC_845/2006

15. Dissemination of alternative fuels in the EU-25 in 2005 4 Source: National reports under the Biofuels Directive 3,5 3 2,5 2 Share of fuel sales volumein % 1,5 1 0,5 0 S M IT LT LV PL PT ES AT CZ FR LU NL BE CY DE SK HU UK GR DF FIN IRL EST SLO EU25

16. National targets for the use of alternative fuels in the EU-25 Source: National reports under the Biofuels Directive 7 2006 2007 2008 2009 2010 6 5 4 Share of fuel sales volume in % 3 2 1 0 S IT M LT LV PL PT ES AT CZ FR LU NL BE CY DE SK HU UK GR DF FIN IRL EST SLO EU25

17. Evaluation and comparison The vehicles, the associated fuels and the necessary infrastructure, including the processes required, are to be considered as one entity and are to be assessed over comparable periods of time. Realistic development potentials should be given appropriate consideration. Comparisons should be based on specific fuel pathways and specific operating conditions. Reallocations of costs, emissions, effects or impacts to other areas, materials, locations, times or persons should be given particular attention. The transfer of results to other contexts must be scrutinised critically and is often impossible

18. Impact analysis of alternative fuels The environmental impact of fuels (particularly of biofuels) must be assessed by taking the entire life cycle into consideration. In addition to CO2, the climate impact analysis must also include other relevant emissions, such as N2O and CH4. The vehicles, the associated fuels, the fuel supply and the necessary infrastructure, including the processes required, are to be considered as one entity and must be assessed over comparable periods of time. The assumed framework conditions, the envelope boundaries and the underlying aim of the analysis are decisive for the results of the assessment. The efficiency of using alternative fuels should be assessed on a trans-sectoral basis . The results obtained are significantly influenced by the reference processes that have been selected.

19. Determination of potential When determining potentials and interpreting the results of such determinations, a distinction must be made between the following definitions of “potential”: Theoretical potential (e.g. physically available biomass) Technological potential (e.g. technologically usable biomass (time reference)) Economic potential (economically usable potential (general framework)) Realisable potential (anticipated actual contribution (time reference)) Particularly the economic and the realisable potentials are significantly determined by the underlying general framework. The results of potential analyses are decisively affected by the underlying assumptions and by restrictions.

20. The importance of assumptions and restrictions for potential analyses Land area potentials and land areas required to reach the biofuel targets for Germany [ 1000 ha ] Baseline Nature conservation plus Beet ethanol Wheat ethanol RME Land area potential 2005 Acreage required to meet EU targets for 2010 Source: BMU_2004

21. Costs associated with the use of alternative fuels The provision of biogenic fuels currently leads, in general, to higher costs in comparison with petrol and diesel. Marketable prices for biogenic fuels (particularly for pure fuels) can only be achieved with the aid of government subsidies. Government subsidies for alternative fuels are counterbalanced by (partially significant) benefits, for example on the part of the users. Assessments of the profitability of alternative fuels are only possible if they are based on specific operational and framework conditions. In areas such as heat generation, the use of biogenic energy sources already has the capacity to compete with conventional sources.

22. Negative environmental effects of plant-based fuels High land area use Negative impact on biodiversity Increased exploitation of the resource “soil” Contribution to the depletion of the ozone layer through the release of N2O Environmental risk as a result of the penetration of fertilisers into water courses Release of non-limited, toxic emissions during operation Possible conflicts with modern exhaust gas treatment systems

23. Incentives for the use of alternative fuels Subsidisation programmes Tax incentives (bonuses, penalties), Reduction of operating and administrative costs, Advantages for users (inner city toll, access restrictions, road charges), Specification of quality for tendering and subcontracting practices, Environmental goals (environmental reports, customer acceptance, advertisement), Reduction of economic risks (resale value, orders), Compliance with occupational health and safety regulations (e.g. air quality inside garages and road tunnels)

24. Properties of alternative fuels Sources: KolkeR_2004, IE_11/2005, TAT_04/2006 SeyfriedF

25. Properties of alternative fuels Sources: KolkeR_2004, BöhmerT_1999

26. The supply path of vegetable oils verminderte Klimawirkung, verminderte Klimawirkung, Changed effect on climate, Changed effect on climate, Klimagase, Klimagase, Greenhouse gases Greenhouse gases ver changed emissions, changed emissions, ver ä ä nderte nderte Emissionen, Emissionen, Ressourcenverbrauch, use Ressourcenverbrauch, use of of resources resources , , pers pers ö ö nliche nliche Nutzen, Nutzen, personal benefits, personal benefits, employment effects Besch Besch employment effects ä ä ftigungseffekte ftigungseffekte , , Aufbereitungsanlage Processing Processing Aufbereitungsanlage plant plant risks Risiken risks Risiken , , Risiken risks risks Risiken Small lokale Kleinanlage Small lokale Kleinanlage local plants local plants Collection Erfassung Erfassung Collection Pressing Pressung Pressing Pressung Processing Aufbereitung Processing Aufbereitung lokale Abgabe Local lokale Abgabe Local Distribution Distribution Cultivation Cultivation Anbau Anbau von of von of Engine Engine Motor Motor oilseeds oilseeds Ö Ö lsaaten lsaaten Extraktion Extraction Extraction Extraktion Aufbereitung Aufbereitung Processing Processing Collection Erfassung Erfassung Collection Transport Transport Transport Transport Transport Transport Transport Transport Tankstelle Filling Tankstelle Filling Station Station zentrale Gro zentrale Gro Large central plants Large central plants ß ß anlage anlage Acreage Acreage , , Fl Fl ä ä che che , , Subventionen Subventionen Subsidies Subsidies Subventionen Subventionen Subsidies Subsidies Soil Soil , , Conversion Conversion Boden, Boden, Umr Umr ü ü stung stung Koppelprodukte By Koppelprodukte By - - products products Energie und Hilfsstoffe Energy Energie und Hilfsstoffe Energy , , auxilary materials auxilary materials fertilicers fertilicers , , D D ü ü nger nger (Futter, Rohstoffe etc.) (Futter, Rohstoffe etc.) ( ( feed feed , , raw raw materials materials , , etc. etc. etc. etc. etc.) and etc.) and waste waste

27. The supply path of FAME

28. The supply path of ethanol

29. The supply path of FT fuels

30. The supply path of natural gas

31. The supply path of biogas

32. The supply path of LPG

33. Development of the international oil price, real terms Average annual oil price ($/barrel, real terms, 2005) Source: inflationdata.com 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 partial

34. Development of CO2 emissions Forecast of change in CO2 emissions, 2005–2020 (Mt per year in the EU-25 (CO2 only)). Source: PRIMES 140 126 120 100 77 80 60 40 27 24 19 20 -12 -8 0 Total Transport Households Trade Industry Electricity/ Heat Energy sector -20