University of Zagreb Faculty of Mechanical Engineering and Naval Architecture

1. University of Zagreb Faculty of Mechanical Engineering and Naval Architecture Bioethanolin Europe Policy and markets Neven Duić University in Zagreb Faculty of Mechanical Engineering and Naval Architecture Department of Energy, Power Engineering and Ecology Neven.Duic@fsb.hr

2. RES-H: Current evolution 10% Biofuels 5.75% RES-E: 22.1% Acquis Communautaire • Green Paper “Towards a European strategy for the security of energy supply” - 20% alternative fuels in road transport by 2020. • Kyoto Protocol – GHG emission reduction by 8% by 2010 relative to 1990 • White Paper on Renewable energy sources –12% RES in TPES by 2010.

3. Acquis Communautaire • White paper “European transport policy for 2010” (2001) • forecasts CO2emission increase due to transport at 50% 1990-2010, mainly due to road transport (84%) • high dependence on oil (98%) reduced by alternative fuels, as biofuels • import substitution, agriculture diversification from food to energy, GHG emission reduction • tax reduction and crop subsidies for biofuels

4. Acquis Communautaire • Directive 2003/17/EC amending Directive 98/70/EC relating to the quality of petrol and diesel – up to 5% (v/v) ethanol in petrol • coming Directive revision - Spain and Sweden propose increase to 10% (24.6.2005) • Biofuels Directive 2003/30/EC • Indicative targets, 2% by 2005 (0.6% 2003, 0.8% 2004, at best 1.4% 2005), 5,75% by 2010 • bioethanol – up to 5%, EN 228, volatility problems in summer, SE • E85 – SE, UK • bio-ETBE (47% biofuel) – FR, ES

5. Acquis Communautaire • Biomass Action Plan, Dec. 2005 • issues: • national targets for the market share • biofuels obligations (FR, AT, 2006: SI, 2007: CZ, NL, soon: UK, DE) • certificates of sustainability (non-discriminatory to imports) • public procurement of clean vehicles • balanced approach (imports/production, currently 10%/90%) • ethanol for Diesel engines

6. Acquis Communautaire • Biomass Action Plan, EU25 • biomass production potential and demand

7. Acquis Communautaire • Biomass Action Plan, EU25, imports • duty free: ACP, LDC, BO, CO, CR, EC, GT, HN, PA, PE, SV, VE, GE, LK, MN + AC, WBC, EEA • reduced duty (15%) • duty • €19.2/hl on undenatured alcohol • €10.2/hl on denatured alcohol.

8. Acquis Communautaire • Biomass Action Plan, balanced approach • price control mechanism • majority of the market for bioethanol would remain domestic • biofuels instead of sugar for preferring LDC • no deforestation and habitat destruction – certificates for sustainable production • EU – Mercosur negotiations • Doha round of WTO

9. Europe – bioethanol production • EU strategy for biofuels, Feb. 2006 • EU bioethanol production (t)

10. Europe – bioethanol production • Biofuels in Sweden(80% bioethanol imported)

11. Europe – road transport fuel market • Road transport fuel demand, ktoe

12. Europe – biofuels market • Biofuels market, ktoe

13. Europe – transport fuels market • Gasoline in total road transport fuel demand, ktoe < 30% 30-40% 40-50% 50-60% > 60%

14. Europe – bioethanol market • Bioethanol market, ktoe, 1.9% road transport fuel market by 2010

15. Europe – bioethanol market • Bioethanol market, kt

16. Europe – production costs • Cost of bioethanol crops, €/GJ (Biomass availability in Europe) > 20 €/GJ < 5 €/GJ 5-20 €/GJ

17. UK – bioethanol cost of supply • Resource costs (costs before taxation delivered to the car at a UK filling station), £/GJ, 2020 http://www.rmd.dft.gov.uk/project.asp?intProjectID=11724 AEAT/ENV/ED50273/R1. International Resource Costs of Biodiesel and Bioethanol AEA Technology Environment

18. Bioetanol u pravnoj regulativi EU i RH Thank you for your attention Neven.Duic@fsb.hr http://powerlab.fsb.hr/neven