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Biofuels in Sweden – moving the sustainability agenda forward

Biofuels in Sweden – moving the sustainability agenda forward. Semida Silveira PhD, sustainability expert International Secretariat. Curso combustíveis líquidos Campinas, Brasil 08 June 2006. Biofuels in Sweden – moving the sustainability agenda forward. Presentation structure.

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Biofuels in Sweden – moving the sustainability agenda forward

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  1. Biofuels in Sweden – moving the sustainability agenda forward Semida Silveira PhD, sustainability expert International Secretariat Curso combustíveis líquidos Campinas, Brasil 08 June 2006

  2. Biofuels in Sweden – moving the sustainability agenda forward Presentation structure • EU policies and concerns • Swedish experiences • Reducing fossil fuel dependence

  3. Priorities in EU energy policies security of energy supply environmental protection industrial competitiveness

  4. Why alternative fuels for transport in Europe? (1) • Security of supply In 2030, EU may have to import 90% of oil 90% of coal 60% of gas

  5. Why alternative fuels for transport in Europe? (2) Reduction of greenhouse gas emissions (transport is major source of GHG emissions) 8% reduction of GHG emissions (2008-2012)

  6. Estimated greenhouse gas reductions from biofuels Source: IEA, Biofuels for Transport, 2004

  7. Range of cost per tonne of CO2 reduction Source: IEA

  8. Action to promote transport biofuels use in Europe • Biofuels directive 5.75 % in share of biofuels in transport 2010 • Increasing production of biofuels • Test of ethanol busses in many cities

  9. EU targets for alternative motor fuels(% of total road fuels)

  10. Biofuels in Sweden – moving the sustainability agenda forward Presentation structure • EU policies and concerns • Swedish experiences • Reducing fossil fuel dependence

  11. Sweden’s energy use 2004 Total energy use 1970 = 408 TWh 2004 = 405 TWh

  12. Energy intensity per BNPSweden 1980-2002 Uranium Coal Gas Oil Biofuels Hydro, wind Total Accomplishments energy use delinked from development Source: SCB

  13. Growth of income per capita1980-2004 (50% increase) Growth in % BNI/capita 10.000kr Total energy use 1970 = 408 TWh 2004 = 405 TWh Broken time series 1993/94 energy use delinked from economic growth Source: SCB

  14. Transport fuels in Sweden 1970-2003

  15. CO2 emissions in Sweden1980-2003

  16. transport heat and power industry agriculture buildings Industrial processes waste Greenhouse gas emissions per sector in Sweden

  17. Bioenergy in Sweden factors that favoured the development • district heating systems – heat markets • investment subsidies and tax incentives • integration with forest industry • local engagement in energy issues • long-term policies for fossil fuel substitution • research and development

  18. Development of district heating 1970-2004

  19. Bioenergy use for electricity generation in pulp mills effect of green certificates Source: Svebio

  20. BioEthanol expansion in Sweden 2001-2005

  21. Clean vehicles in Sweden

  22. Major driving forces favouring transport biofuels in Sweden • Policy to break oil dependency 2020 • CO2 emissions reduction needs (4%) • The biofuel directive (5.75 biofuel 2010) • Security of supply

  23. Driving forces for ethanol use in Sweden • Tax incentives on biofuels • Cheap ethanol from Brazil • Legislation on installation of pumps in gas stations

  24. Legislation for filling stations • Mandatory biofuel pump at stations • larger than 3500 tonnes gasoline (2006) • Larger than 1000 tonnes gasoline (2009) • Technology neutral but will favour ethanol (biogas pumps cost 5-10 times more than ethanol)

  25. Filling stations in Sweden 300 filling stations for ethanol E85 Green-ethanol Yellow-FAME Blue-Biogas, natural gas all stations expected to deliver biofuels in 2009

  26. Driving forces for flexifuel vehicle (FFV) in Sweden • Tax reduction on biofuels • Incentives for car owner • Free parking in some municipalities • No congestion fee in Stockholm • Cheap ethanol

  27. Calculations for a FFV owner • Company car taxation - 300 Euro • Free parking - 500 Euro • No congestion fee - 1400 Euro • Lower price on ethanol - 150 Euro Total savings per year -2350 Euro

  28. Problems on consumer side • less energy content in ethanol (up to 30%) • conservatism • short term legislation (2008) • uncertain development of ethanol prices • fewer advantages for private cars • FFV more expensive than conventional car (€400-900)

  29. Problems for the government • tax exemption is expensive (green certificates?) • large imports (duties?) X own production • distribution of biofuels (mandatory measures) • hard to fulfill the biofuel directive • no direct solution for diesel (BTL)

  30. Biofuels in Sweden – moving the sustainability agenda forward Presentation structure • EU policies and concerns • Swedish experiences • Reducing fossil fuel dependence

  31. Dealing with the energy and climate challenges less fossil more renewables efficient energy supply and use competitive markets new systems new investment patterns ecologically, socially and economically robust systems; increased energy service access; climate change mitigation

  32. Major policy targets in Sweden Goals and policies breaking oil dependence (2020) 17 TWh more electricity from renewables (2002-2016) non-binding target of annual wind power = 10 TWh in 2015 reduce energy use in buildings by 20% (1995-2020) 4% less ghg emissions without sinks or flexible mechanisms

  33. Research focusenergy in transport • Production processes for renewable fuels • Improved energy efficiency of vehicles

  34. Development platform – well to wheel Fuels are CO2 neutral and highly efficient Efficient vehicles delivered from industry VEHICLES RENEWABLE FUELS EMISSIONS Commercial technologies; harmonization within EU

  35. Introduction of biofuels in the market E5 (E10) A100 M3 Synthetic Synthetic short term ----> middle-long term

  36. Biodiesel production in Europe(in thousand tonnes) Source: European biodiesel board

  37. Ethanol from cellulosepilot plant - € 27 million project

  38. Gasification and synthes gas for transport fuels and chemicals Coal CO2 Synthetic Diesel (FT) Oil prods Synthes gas(CO+H2) Metanol Gas GASIFICATION DME (DiMetylEter) Biomass Black liquor Hydrogen

  39. Two gasification roads being tested in Sweden Source: modified from CHEMREC

  40. Växjö Värnamo BiomassGasification Center

  41. Växjö Värnamo BiomassGasification Center • project illustrating Swedish and European ambitions to accelerate the implementation of the Biofuels Directive • centre of excellence for training and development of technical know-how in gasification for liquid biofuel • regional project with global interest

  42. Växjö Värnamo BiomassGasification Center • Feeding systems • Hot gas cleaning • Gasification of biomass • IGCC • GT • Synthes gas upgrading • Catalyst research • BTL processes • H2 for fuel cells • Training and education

  43. CHEMREC’s demonstration plantblack liquor gasification

  44. The BLGMF process substitutes the recovery boiler and allows production of transport fuels Pulp typically 5-600 MW Black liquor energy DME/MeOH BLGMF Biomass Source: CHEMREC

  45. Extra biomass inputs balances the internal energy needs Pulp Typically 5-600 MW Black liquor energy DME/MeOH BLGMF Biomass Source: CHEMREC

  46. and allows for 65% more production of highly efficient transport fuels Pulp typically 5-600 MW Black liquor energy DME/MeOH BLGMF Biomass >65% Source: CHEMREC

  47. Price of the fuel at the pump -methanol and gasoline (Chemrec)

  48. Heavy duty vehiclesdistance per hectare and year Rapeseed to RME, byproducts as animal feed Wheat to ethanol, straw as energy, byproducts as animal feed Salix to Ethanol Salix to Synthetic Diesel Salix to Synthetic Diesel via Black Liquor Salix to Methanol Salix to DME Salix to Methanol via Black Liquor 0 2000 4000 6000 8000 10000 12000 Salix to DME via Black Liquor km / hectare & year Diesel engine efficiency assumed for all fuels Source: AB Volvo

  49. The road ahead forbiofuels in Sweden • biofuels can be phase-in into existing transport systems • ethanol is a good starting point • incentives are needed in initial phase • introduction of biofuels expensive for the government • more RTD is needed for development of biofuels • EU consensus on what to do but how to do it still pending

  50. www.stem.se semida.silveira@stem.se Obrigada!

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