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Biofuels for Sustainable Rural Livelihood and Energy Security. 19 th Nov 2010. Dr .Robert Paulmer. Confidential. HISTORY & BACKGROUND. Energenics Group was set up with the aim to identify, invest, source, validate; and commercialise energy technology.
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Biofuels for Sustainable Rural Livelihood and Energy Security 19th Nov 2010 Dr .Robert Paulmer
Confidential HISTORY & BACKGROUND • Energenics Group was set up with the aim to • identify, • invest, • source, • validate; and • commercialise energy technology. • Our goal is to improve the use of conventional energy sources, reduce emissions • and ultimately, phase in the use of alternative energy solutions to benefit the • environment and our customers.
PUTTING ENERGY INTO INNOVATION • Alternate Fuels • EnerDieselTMa premium ethanol diesel fuel • 8 % Bio Fuel (Currently running worlds largest fleet) • 28 % Bio Fuel - with 20 % Bio diesel and 8 ethanol • Fuel and Lubricant Additives • EnerCET a premium cetane booster based on natural compounds • ENERCAT – Cerium based nano catalyst offering more than 10 % fuel efficiency in conventional fuels • Others • Devorux - An equipment that will revolutionize the way materials are processed • ReEnergise – An unconventional way of regenerating batteries
PUTTING ENERGY INTO INNOVATION Energy Security Security solutions for Fuels, Chemicals and Pharmaceutical products Petroleum Locks Banks (UK)
PUTTING ENERGY INTO INNOVATION Technology is a key factor to enhance both food and bio-energy production and increase the output without adverse economic and environmental implications.
Bio-Fuel Share in Road Transportation Global production of biofuels - 39 Mtoe in 2008 1.9 % of total road related fuel consumption. Preliminary figures for 2009 suggest the total production increase to nearly 41 Mtoe. Despite the projected tripling of biofuels production 20 Mtoe in 2005 60 Mtoe in 2015 90 Mtoe in 2030, their share in the total road-transport fuel is not expected to surpass 4-5% by 2030
Global Trend • North America • US & Canada • Move towards increase biofuels production and through the use of a Renewable Fuel Standard that would require a certain percentage of the motor fuel pool to contain biofuels that would increase over time. • Primary Drivers • Supporting respective agriculture industries; • U.S. is also focused on decreasing its dependence on oil imports, • Canada is focused on reducing greenhouse gas (GHG) emissions.
Global Trend • Latin America • Conditions are ripe for the development of biofuels as in the Latin America and Caribbean region. • Primary Drivers • Heavy dependence on petroleum product imports with growing demand, • Abundant feedstock potential to produce ethanol and biodiesel, • Argentina • Argentine Congress mandating B5 (5 vol% biodiesel) and E5 (5 vol% ethanol) by 2010 • Feedstock for biodiesel production is soy, and for ethanol, sugarcane,. • Supportive policies. • Biodiesel and ethanol producers receive an exemption from: • The value-added tax (VAT) on capital good and related infrastructure projects; • The income tax on capital goods related to production; • The hydro-infrastructure tax (a tax to help support the development of water infrastructure projects); • The 15% gasoline tax for ethanol, and the 20% diesel tax for biodiesel.
Global Trend • Bolivia • The Bolivian government issued a decree (Ley 3086) June 2005 • use of ethanol specifically from sugarcane in gasoline in levels that will increase over the next five years from 10 to eventually 25 vol% (E10 to E25) • Argentine Congress mandating B5 (5 vol% biodiesel) and E5 (5 vol% ethanol) by 2010 • The government “WAS” looking at implementing a B2 blend by 2007 increasing to B20 by 2015 with soy as the primary feedstock. • There are no fiscal policies to encourage ethanol production and use at this time.
Global Trend • Brazil • Biodiesel program in 2004, which is currently being implanted. • The blending requirement for ethanol ranges between 22-26 vol%, depending upon the availability of ethanol in the country. • In 2003, flex-fuel vehicles (FFVs) were introduced into the domestic market and have captured 80% of all new vehicle sales • The legislation authorizes the voluntary sale of B2 which began in 2006 and was supposed be mandatory in 2008. In 2013, B5 will be required. • There are no subsidies provided by the federal government for ethanol production but there is differential treatment under some states’ taxation regimes. • Policymakers are looking at how to align the biodiesel program to achieve its stated objective of helping the rural poor in the north of the country • There are tax incentives encourage biodiesel production, generally in the form of tax reductions and exonerations
Global Trend Colombia It has developed an E10 program that currently applies to the country’s largest cities and was implemented nationwide sometime in 2009, Would like to increase it to E25 within the next 25 years. The government in the next few years may begin to require E20. Legislation is also being discussed in the Congress that would require the usage biodiesel as well, which would be produced from palm oil, at 5 vol% which would probably increase to B20 over time. Ley 939 created incentives and tax exemptions for the production and commercialization of biodiesel. The law also states that oils can be blended with other fuels such as ethanol, biodiesel, biomethanol, biodimethylether (DME), synthetic biofuels, biohydrogen and pure vegetable oils. Ley 788 exempts fuel alcohol from the VAT, and income generated from crops used as biodiesel feedstock is tax-exempt as well under Ley 939.
Global Trend • Coata Rica • The government is now preparing to implement an E8 program by 2008 and is looking at wide-scale production and use of biodiesel as well. • A pilot project on public transport buses using B30 is ongoing. • Dominican Republic • The Dominican Republic is working to develop an ethanol industry to supply its own fuel needs and export to other parts of the Caribbean and the U.S. under the CBI and the Central America Free Trade Agreement (CAFTA) • Incentives • A 100% tax exemption for imported machinery, equipment and accessories; • A 10-year tax holiday for businesses in the sector; • Allows the transfer of 50% of investments made internal consumption with renewable energies to income tax; • Guarantees market share for renewable energy production
Global Trend • Jamaica • Exports all its production to the U.S. • Srating E5 going to E10 • No plans on Bio Diesel • Prauguay • Since 1982. • Blending a minimum of 18 vol% ethanol over the last few years under its Ethanol and Ethanol 85 programs (implemented in 2006) • B2 or B5 biodiesel program nationwide underporgress • The Dominican Republic is working to develop an ethanol industry to supply its own fuel needs and export to other parts of the Caribbean and the U.S. under the CBI and the Central America Free Trade Agreement (CAFTA) • Incentives • The government in 2005 enacted the Biofuels Law, declaring that the development of biofuels using domestic feedstocks were in the national interest. Other incentives were enacted as part of the law. Under the Ethanol Program, ethanol blends receive a tax reduction from the gasoline tax from 50% to 10%.
Global Trend • Peru • 2003 enacted the Law and a technical commission for biofuels • Supreme Decree was enacted requiring E7.8 for gasoline and B5 for diesel to be phased in geographically over the next few years. • Uruguay • The government in 2003 enacted - biofuels are in the national interest • Targeting to introduce B2 in 2008 voluntarily but will be obligated to blend it from 2009 to 2012. • The blend limit will increase to B5 in 2012. • Venezuela • Major global oil and gas producer • E8 • Proyecto Etanol - country to be self-sufficient in ethanol production” • own fuel needs and export to other parts of the Caribbean and the U.S. under the CBI and the Central America Free Trade Agreement (CAFTA)
Global Trend • Europe • Under the 2003 Biofuels Directive, the European Union (EU) set two voluntary targets for the Member States, a 2% biofuels by energy content by December 31, 2005 and 5.75% biofuels by energy content by December 31, 2010. • Minimum binding target of 10% vehicle fuel as biofuels by 2020 • One of the main instruments to promote biofuels use in Europe has been the use of tax incentives. • Tax incentive system into an obligation system (Germany, France, The Netherlands and Austria).
Global Trend • Czech Republic • well developed network of biofuel production which is exported to Germany, Poland and Slovakia. • no legislation currently in place to encourage biofuels production and use. • France • Long history of use. • E 85
Global Trend • Germany • Germany is the world largest user and producer of biodiesel • Level playing field between - implementation of a new Energy Tax Act • B5 is fully taxed. Pure and high blends – Differing tax rates • Low ethanol blend (E5)- same tax as gasoline. ETBE and E85 (their ethanol part), lignocellulosic ethanol and BTL are tax exempted until 2015.
Global Trend • Spain • 2005 Renewable Energy Plan (did not back the target with any strong legislative or regulatory measure) - result 0.44 % • Special tax rate for biofuels of zero euros per cubic meter until December 31, 2012. • Tax Plan - 2007, • All suppliers of gasoline and diesel for road transport are obliged to blend 2% Gradually increasing in 2008 and 2009, to meet the EU target of 5.75% by 2010. • A biofuels subsidy scheme worth €60 million (US$79 million • United Kingdom • 2008-2009: 2.5 vol% 2009-2010: 3.75 vol% 2010-2011: 5.0 vol • Russia • Ethanol in the gasoline pool – Failure • no legal standard for biodiesel production or use in the Russian legislation • Level playing field between - implementation of a new Energy Tax Act • B5 is fully taxed. Pure and high blends – Differing tax rates • Low ethanol blend (E5)- same tax as gasoline. ETBE and E85 (their ethanol part), lignocellulosic ethanol and BTL are tax exempted until 2015.
Global Trend • Africa • African countries are showing a growing interest in biofuels • 15 countries signed the Africa Non-Petroleum Producers Association (PANP) founding treaty as a means to encourage the production of alternative energy sources and lessen the impact of increasing oil prices. • South Africa • Mozambique • Mauritius • Nigeria
Global Trend • Asia / Australasia • Region as a whole is diverse and introduction of biofuels are at different development stages in the region’s countries • Reduce CO2 emissions by 2012 - Australia, Japan, New Zealand and South Korea. • Reduce their dependence Oil • Export to europe • Australia • In September 2001 target in their election policy, “Biofuels for Cleaner Transport” that biofuels will contribute to at least 1% of Australia’s fuel supply or 350 million liters (350,000 m3) by 2010. • no mandatory nationwide ethanol uptake
Global Trend China Aiming to make use of its surplus in grain accounting for over 10% of the grain production. All four government-sponsored fuel ethanol producers are exempt from the consumption tax of 5% for the production of denatured fuel ethanol. The enterprises are also reimbursed value-added tax (VAT) from ethanol production. Indonesia A target 10% of petroleum demand to be replaced by biofuels in 2010. Japan Does not have legislation in place beyond excise tax reductions on a prefecture basis for domestically produced biodiesel. Currently looking into fiscal incentives to subsidize the production and use of ethanol and biodiesel in conventional fuels, from non- edible crops.
Global Trend • Malaysia • Use of B5 in government and privately-owned vehicles nationwide in 2007, before making its use mandatory in 2008. • National Biodiesel Industry Act requiring all oil companies to blend B5 was introduced in Parliament at end-2006, - under the deliberation • All four government-sponsored fuel ethanol producers are exempt from the consumption tax of 5% for the production of denatured fuel ethanol. The enterprises are also reimbursed value-added tax (VAT) from ethanol production. • New Zealand • little fuel ethanol and biodiesel production • will adopt a biofuels sales target set at 3.4% • in conventional fuels, from non- edible crops.
Global Trend • Thailand • As the transport sector consumes about 34% of total energy in the country, • 2003 - National renewable energy target at 8% of total expected energy use in 2011, of which 3% would come from biofuels.: • 2007 : Introduction of B5 in Bangkok and southern provinces • 2011: Introduction of B5 nationwide (Target: 4.25 million liters or 425,000 m3 per day) • 2012: Introduction of B10 nationwide (Target: 8.5 million liters or 850,000 m3 per day)
Global Trend – Observation • Bio Fuels • Government Initiatives • Agriculture industries initiative • Policy driven • Voluntary • Mandatory • Tax benefits • Phased Manner • Commercial Benefits
Energenics : Enabling Bio Fuels Ethanol – Diesel a Biofuel alternative
ENERDIESELTM • EnerDieselTMis a premium ethanol diesel fuel solubiliser package. • Blend ratio • 7.7 vol % Fuel Ethanol • 0.5 vol % Proprietary Additive • 91.8 vol % Regular Diesel • Many Benefits • 8.2 % Diesel substitution • Enhanced Lubricity • Added Cetane • Improved Corrosion Resistance • Outstanding Static Properties • Lower Pollution • Excellent Response and Power • Compatible with • Diesel No. 1 & 2, CARB, TxLED, Biodiesel Euro 1, 2, 3, 4 and ULSD Ethanol + EnerDieselTM Technology + Diesel = A pioneering clean-burning renewable diesel fuel
ENERDIESELTM – O28 O28 - A Renewable, Clean Burning Ethanol-Biodiesel-Diesel Fuel Blend • Blend ratio • 7.7 vol % Fuel Ethanol • 20 vol % Bio diesel • 0.8 vol % Proprietary Additive • 71.5 vol % Regular Diesel
ENERDIESELTM - ENVIRONMENT Comparison with various other diesel fuel Reduction of pollutants • Benefits observed from the first fill-up • Reduction of white smoke caused by incomplete combustion during ignition of cold engines • Reduction of black smoke composed of carbon particles containing oil
ENERDIESELTM - ENVIRONMENT • Verification and Recognition • Most comprehensive ethanol diesel testing ever undertaken • Key milestones for health & environmental verifications & recognitions • Multimillion US$ invested in research & development tests
ENERDIESELTM - TECHNOLOGY • Premium clean fuel • Compatible with all base diesel fuels: Ultra Low Sulfur Diesel, #1 Diesel, #2 Diesel, on and off road, and biodiesel. • Lubricity enhancement: Up to 40%. • Improves conductivity • Cetane number: Equals to or exceeds that of base fuel. • Distribution system cleanliness • Fungible: Vehicle can fill up with regular diesel if operating out of area, avoiding “range” restrictions. • Stable in variety of climates: Cold and hot weather stability and operability. • Maintains engine performance: No measurable torque or horsepower loss. • Maintains fuel economy: • Easily blended: EnerDiesel™ is blended at fuel terminals and delivered to customers’ existing storage tanks or by mobile refueling. • Prospective potential maintenance gain
ENERDIESELTM - TECHNOLOGY Maintains engine performance EnerDiesel Ref Fuel Summary: Engine Speed and Torque Maps. Detroit Diesel Series 60. (South West Research Institute)
ENERDIESELTM - EXPERIENCE • US – Fleet Experience • Nellis Air Force Base (Las Vegas, NV) • Nevada Air National Guard (Reno, NV) • Peabody Coal/Rawhide Mine (Gillette, WY) • Johnson County Transit, Olathe, KS (transit) • StarTran, Lincoln, NE (transit) • SMTD, Springfield, IL (transit) • Des Moines MTA, IA (transit) • Long Beach Container Corp. • E.J. Harrison Industries (Ventura Co., CA) • Port of Long Beach, CA
ENERDIESELTM - EXPERIENCE • FRANCE – Fleet Experience • Veolia Transportation - The Largest Private Bus Operator in the World • Aerport de Paris - Flybus started Dec 2007. • Self contained refueling and blending tank, components delivered separately and blended on site.
ENERDIESELTM - Experience India – Fleet Experience • KSRTC - Karnataka • Operating since 2006 • Over 100 Million km • 1st Bus - over 0.5 million km so far • No related technical issues • No mechanical problems • Immediate air quality benefits • Black smoke down 70% • Cheaper than regular diesel • Carbon credits being generated
ENERDIESELTM - Experience PAKISTAN – Fleet Experience • Government initiated Program • Hydrocarbon Development Institute of Pakistan • Pakistan State Oil • Trials Oct 2010 • 3 Million Liters / month
ENERDIESELTM - Experience Myanmar Thailand Brazil
Summary • Diversify supply of transport fuels, • Enhance security of supply, • Mitigate economic volatility related to oil price fluctuations, • Improve global environment through sustainable biofuels practices • Pursue trade policies that support the growing use of regional transportation fuels. • Foster the development of a sustainable biofuels industry through favourable tax, trade and public policy measures without impeding the development of a global marketplace for biofuels with time limits • Strengthen the investment flowing into biofuel development through transparency in public sector requirements and technological breakthroughs.
Thank you ! Contact us if you have any questions:- Energenics Pte Ltd 89B Science Park Drive #03-06 The Rutherford Singapore Science Park 1 Singapore 118261 Tel. +65 63419650 robert.paulmer@energenics.org
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ENERDIESELTM - Accolades EMPI-Indian Express - Indian Innovation Award Gold Trophy awarded to KSRTC