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Ministry of Agriculture of the Czech Republic Department of Agriculture of the State of Georgia

Petr Jevič Research Institute of Agricultural Engineering, p.r.i. Prague (RIAE) Association for Biodiesel Production, Prague (SVB) 9 October, 2009. Ministry of Agriculture of the Czech Republic Department of Agriculture of the State of Georgia

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Ministry of Agriculture of the Czech Republic Department of Agriculture of the State of Georgia

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  1. Petr Jevič Research Institute of Agricultural Engineering, p.r.i. Prague (RIAE)Association for Biodiesel Production, Prague (SVB)9 October, 2009 Ministry of Agriculture of the Czech Republic Department of Agriculture of the State of Georgia AGRICULTURE IN THE CZECH REPUBLIC AND IN THE USA – STATE OF GEORGIA Current state and outlook of sustainable development of biogenic fuels in the Czech Republic Prague, 2009 1

  2. RESEARCH INSTITUTE OF AGRICULTURAL ENGINEERING (RIAE) Institute main activity: • Research of technological systems for production of agricultural focused to the technological, technical, construction, energetics, ecological, economical and organization problems, consulting and advisory services. • Technological systems for production agriculture division • Division of energetics and logistics of technological systems and biomass utilization for non-food purposes • Division of the economics of agricultural technological systems • Division of agricultural technological systems ecology • Division of external and internal service Prague, 2009 2

  3. THE ASSOCIATION FOR BIODIESEL PRODUCTION (SVB) • Established on 11.12.1990 following the contract according to § 366a/ of the Commercial Code of the Czech Republic. • Activities in the field of rape complete processing support or other oil-bearing crops, used vegetable oils and fats into technical products and feed components. • Enforcing of stipulated partial aims, joint creation of technical, economical and legislative conditions and their initiation not only in the production and processing sphere, but also in the sphere of production utilization. • Promotion, information service, consultancy, intermediary and coordination activity, provision of basic professional international cooperation • Ensurance of special gestion towards central State administration and cooperation with concerned interest associations. Prague, 2009 3

  4. Brief introduction – history, present and future estimation of the biodiesel in the Czech Republic 1988 – first proposal of rapeseed oil utilization in the sphere of oleochemistry (RIAE Prague) 1990 – 1998 – Oleoprogram, production subsidies of B30 – zero excise tax 1.1.1999 – 31.3.2000 – direct subventions of RME production 1.4.2000 – 31.12.2000 – preferential VAT of B30 towards diesel and subventions of FAME production 1.1.2001 – 30.4.2004 – B30 had reduced excise tax rate (69 % of the diesel tax rate), stabilization of rapeseed price on the market, „boom“ of biodiesel production 1.5.2004 – 30.6.2005 – ending of the subsidies, entrance into EU, necessity of subsidies notification 1.7.2005 – 31.12.2006 – B30 – reduced excise tax 6866 CZK/1000 l and subsidies for RME producers (only for domestic market consumption) 1.1.2007 – 31.12.2007 – B100 – zero excise tax, ending of B30 sales (tax conditions) 1.9.2007 – 31.12.2008 – mandatory blending min. 2% V/V 1.1.2009 – mandatory blending min. 4.5% V/V 1.1.2010 – estimation of mandatory blending min. 6.3% V/V (?) Prague, 2009 4

  5. Implementation of the program „Bioethanol“in the Czech Republic • Official beginnings of the program „Bioethanol“: • Government Decrees No. 125 of 14 February 1996 and No. 420 • of 17 June 1998 start the utilization of biodegradable fraction • of product waste and residues from agriculture • Amendment of the Act on spirit and excise taxes • 1 January 2008 – mandatory blending min. 2% V/V • 1 January 2009 – mandatory blending min. 3.5% V/V • 1 January 2010 – mandatory blending min. 4.5% V/V (?) Prague, 2009 5

  6. Legislative frame – past and present Act on Air Protection No. 86/2002 amended in 2007 (Act No. 180) • Since January 1, 2008 in amount of 2% V/V of total amount of the motor petrol fuels blended in the motor petrol • Since September 1, 2007 in amount of 2% V/V of total amount of the motor diesel blended in the motor diesel • Since January 1, 2009 in amount of 3.5% V/V of total amount of the motor petrol fuels blended in the motor petrol • Since January 1, 2009 in amount of 4.5% V/V of total amount of the motor diesel blended in the motor diesel Prague, 2009 6

  7. Legislative frame – past and present Ministry of Agriculture and Ministry of Environment of the Czech Republicsupport the proposal of Association for Biodiesel Production and Union of Distilleries of the Czech Republic for the increase of minimal share of biofuels since January 1, 2010: • bioethanol 4,5% V/V • biodiesel 6,3% V/V Prague, 2009 7

  8. Legislative frame – past and present Act on Excise Tax No. 353/2003 amended in 2006, 2007 and 2008 (expectation of a new amendment in 2009) • Since January 1, up to December 31, 2007 was i force zero excise tax for Biodiesel B100 • Since January 1, 2008 was full rate of excise tax for Biodiesel B100 9950 CZK/1000 litres • Since October 1, 2009 there was approved the tax support of biofuels (automotive fuels) FAME (B100), Diesel fuel blends containing Fatty acid methyl esters – B30, Ethanol automotive fuel – E85, Ethanol for compression ignition engines (diesel engines) – E95, Biogas for positive (spark) ignition engines, Fuels for vegetable oil compatible combustion engines – Fuel from rapeseed oil Prague, 2009 8

  9. Summary – domestic production, trade, stock change and brutto consumption biofuels in the CR Bioethanol 2005 178 tons blending component for petrol 2006 258 tons blending component for petrol 1532 tons ETBE production Prague, 2009 9

  10. CR bioethanol production capacities as of December 2008 370 mln litres/year cca 292 000 tons/year Cross consumption and deliveries of motor petrol2 000 000 tons • 3.5% V/V 110 mln litres/year cca 87 000 tons/year • 5.75% V/V 185 mln litres/year cca 146 000 tons/year Source: Union of Distilleries of the CR Prague, 2009 6

  11. Summary – domestic production, trade, stock change and brutto consumption biofuels in the CR Source: SVB&VÚZT Biodiesel in the Czech Republic Prague, 2009 11

  12. Sales of B30 in Czech Republic in 1992 - 2008 Biodiesel B30 (mixture 69% of diesel and 31% of biodiesel according to standard ČSN EN 65 6508 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year Prague, 2009 12

  13. Summary – domestic production, trade, stock change and brutto consumption biofuels in the CR Biodiesel (FAME, FARME) - 2009, January – August • Domestic production 99 570 tons • Import 5 325 tons • Export 18 510 tons • Stock change +/- +1 490 tons • Brutto consumption 84 895 tons CR biodiesel production capacity 420 000 tons/year Major biodiesel producers: • Agropodnik Jihlava 70 000 tons/year • Oleochemical Liberec 70 000 tons/year • Preol Lovosice 100 000 tons/year • Oleofin Ústí/Labem 139 000 tons/year • Primagra Milín 35 000 tons/year Prague, 2009 6

  14. Consumptiom of Diesel and Biodiesel – history and estimation Prague, 2009 14

  15. Fuels and biofuels - storage and distributionnetwork in the Czech Republic Prague, 2009 15

  16. Biofuels standardization • Biofuels as well as conventional motor fuels have to reach a high minimum level to be acceptable for car manufacturers and combustion motors. • Biofuels have to meet requirements for high quality and to be prepared for developing according to automotive and motor technique needs. • Directive of the EU 2009/30/EC, April 2009 as regards the specification of petrol, diesel and gas-oil and the introduction of a mechanism to monitor and reduce greenhouse gas emissions from the use of read transport fuels and amending council Directive 1999/32/EC, as regards the specification of fuel used by inland waterway vessels and repealing Directive 93/12/ECC Prague, 2009 16

  17. Current CR and European - Fuel and biofuel standards Petrol & Bioethanol ČSN EN 228 Unleaded petrol • bioethanol content max. 5% V/V • extension of EN 228 to E10 max. 10% V/V bioethanol ČSN EN 15293 Ethanol automotive fuel E85 ČSN 65 6513 Ethanol for compression ignition engines (diesel engines) E95 Prague, 2009 17

  18. Current CR and European - Fuel and biofuel standards • Diesel fuel & Biodiesel • ČSN EN 590 – Diesel (April 2009) • FAME content max. 7% • oxidation stability test methods • addition EN 15751, min. 20 h. • recommended use of stabilisers (equiv. to 1,000 mg BHT/kg) • extension of EN 590 to B10 (max. 10% V/V FAME) • ČSN EN 14214 – Fatty acid methyl esters (FAME) for diesel engines (June 2009) • reduction of phosphorus content to 4 mg/kg • flash point acc. to Pensky-Martens included limit reduced to 101 oC • Na- and K-determination acc. to EN 14538 incorporated – 5,0 mg/kg • suspension of cold flow requirements for FAME used as blend component • recommended use of stabilising additives Prague, 2009 18

  19. Current CR and European - Fuel and biofuel standards ČSN 65 6508 Diesel fuel blends containing Fatty acid methyl esters (FAME) B30 (2009) ČSN 65 6516 Fuels for vegetable oil compatible combustion engines (2008) ČSN 65 6514 Biogas for positive (spark) ignition engines (2008) Prague, 2009 19

  20. Sustainability is key for biofuel Industry • Everyone is talking about sustainability – sustainable energy, • sustainable food, sustainable economy. • It makes sense. • We are living large, and if we could only sustain our current way of life, • how great would that be? • CO2 balance = competitive factor! • Engine technology as limit Prague, 2009 20

  21. The biofuels policy define certain criteria for a sustainable production of biofuel feedstock Prague, 2009 21

  22. Second generation biofuels and synthetic fuels • At present, BTL (biomass to liquid) fuels are the subject of various R & D • projects and 2nd generation biofuels. • Despite all the excitement in the media about next generation biofuels, • it is self-evident that we are at the very early stages of the development • process. • Politicians around the world are acknowledging the barriers to entry • and have brought forward a number of incentives to overcome them. Prague, 2009 22

  23. Second generation biofuels and synthetic fuels • The Energy Act of 2007 in the United States is a prime example of this. • This is the most explicit growth related program for next generation biofuels there currently is. As early as 2010, the US Congress has providedfor the distribution of 100 mln gallons of cellulosic alcohol • in the market. • The share of cellulosic ethanol is set to rise at an accelerating rate to reach 16 bln gallons (60 bln litres, 48 mln tonnes) of fuels by 2022. • By then, production of cellulosic alcohol will be greater than the output • of the corn ethanol industry, which has been capped a 15 bln gallons. Prague, 2009 23

  24. Second generation biofuels and synthetic fuels • The EU renewable fuels directive has a similar focus. Next generation • biofuels have the advantage of more significat greenhouse gas savings • and therefore the Commissions proposal foresees that nextgen biofuels • will count double against the 2020 production target. • Another key policy component is the development of biorefinering. Prague, 2009 24

  25. Next generation biofuels • Research activities of the Czech Republic in this sphere are not comprehensive, but for the time being there are aimed at the particular operations of technological process: • Feedstock cultivation • Hydro-treatment of vegetable oils • Lignocellulose utilisation • Biobuthanol • Thermal depolymerization • Flash pyrolysis • Hydrotreating, hydroprocessing • However, this process can be improved considerably by means of international cooperation and exchange of information. Prague, 2009 25

  26. B100 – powered jet completes flight Green Flight International successfully completed a biodiesel-powered transcontinental flight across the United States on Nov. 1. Beginning in Reno, New.,and concluding in Leesburg, Fla., the flight lasted11 hours and 13 minutes, reaching altitudes of 13,000 to 17,000 feet. Source: Biodiesel Magazine, January, 2009 • According to Douglas Rodante, Green Flight chief executive officer, 1,776 miles of the flight were fueled by B100. The remaining 710 miles of the flight were powered by a mixture of 50 percent biodiesel and 50 percent jet fuel. • A 1968 L29 Delphin, a single engine military jet aircraft built in Czechoslovakia, was used to complete the flight. „We didn`t have any problems with cold flow properties in this aircraft because of the design,“ Rodante said. • Engine oil runs through an area surrounding the fuel filter, heating the fuel going through the filter. The heated fuel is circulated back through the fuel tanks. „Our fuel temperature on the flight was 27 degree Celsius (80 degrees Fahrenheit) and that was up and over 17,000 feed,“ he said. • According to Rodante, only slight engine adjustments had to be made in order to run the L29 Delphin on B100. „If we used a B20 blend in a modern aircraft, I don`t think there would be any modifications that need to be done,“ he said. Prague, 2009 26

  27. Conclusion • Biodiesel, bioethanol and in future BTL are the key alternatives for oil, gas and coal to reduce CO2 in transport sector. • Feedstock availability, energy efficiency and land use are the drivers towards BTL technologies. • BTL will complete the overall fuel mix together with 1st generation biofuels in future. Prague, 2009 27

  28. Conclusion • Synergies among agricultural enterprises, biodiesel producers and refineries • Lowering of GHG emissions in the long-term perspective in accordance with criteria of sustainability for biomass growing and biofuels production Prague, 2009 28

  29. Thanks for your attention. Contact Petr Jevič Research Institute of Agricultural Engineering, p.r.i. PragueAssociation for Biodiesel Production, Prague Drnovská 507, 161 01 Prague 6 tel.: +420-233022302, e-mail: petr.jevic@vuzt.cz Prague, 2009 29

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