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Round Table on Responsible Soy Association Biofuels (RED) WG briefing to EB May 10, 2010. > 10% of our members are in the biofuels sector. Neste Oil (Finland) ED&F MAN (UK) Greenergy (UK) BP (UK) Shell International Biofuels Corporation Trading LTD (UK) Biopetrol (Switzerland)
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Round Table on ResponsibleSoy Association Biofuels (RED) WG briefing to EBMay 10, 2010
> 10% of our members are in the biofuels sector • Neste Oil (Finland) • ED&F MAN (UK) • Greenergy (UK) • BP (UK) • Shell International • Biofuels Corporation Trading LTD (UK) • Biopetrol (Switzerland) • Louis Dreyfus Commodities (Switzerland) • Glencore (The Netherlands) • Patagonia Bioenergía (Argentina) • CARBIO (Argentina) • Grupo Lucci (Argentina) • TM Chemicals LP (USA) • Ag EnvironmentalProducts LLC (USA) • EOP Biodiesel AG (Germany) • AstraOilCompany LLC (Canada) • Cargill (Brazil) • Bunge (Brazil) • ADM (Brazil)
New European Targets Due to come into force Dec 2010 in all 27 member states (countries) By 2020, 20% of all energy used in the EU has to come from ‘renewable sources’ including biomass, bioliquids and biogas. 10% renewable energy in road transport, target by 2020 (Renewable Energy Directive - RED) 6% GHG saving from fuels by 2020 (Fuels Quality Directive - FQD) Member states to submit report Dec 2011 on progress to targets then every 2 yrs Mandatory sustainability criteria for biofuels
Biodiesel Market in EU Total EU Biodiesel demand 2009 – 9400 kt Total EU Biodiesel demand 2010 – 12000 kt Soy methyl ester (SME) cannot be used pure in EU (off-spec on iodine number) Typically blended with rapeseed methyl ester (RME) or palm oil methyl ester (PME) in various ratios to meet seasonal specifications (blend with RME in winter and PME/RME in summer) UK data April 2009 – Feb 2010
EU RED – Sustainability Elements Greenhouse Gas (GHG): Bioliquids/biofuels must have minimum of 35% GHG savings rises to 50% in 2017 and 60% in 2018 doesn’t apply to existing (2008) installations producing biofuel or bioliquid until April 2013) New installations producing the biofuel/bioliquid from 2017 must meet 60% minimum RED specifies methodology for GHG calculations Have provided default values (soy default is 31%, typical is 40%) Must use substitution method for by-products Will allocate an ILUC factor later Previous land use: Cannot come from land of the following type: Primary forest Highly diverse grasslands High carbon stock (wetlands, peatlands, forest with canopy cover of >30%) Member states to report to EC annually on soil, water, air protection EC to report to EU parliament every 2 years on social impacts Must use mass balance chain of custody system
RTRS Strategy to comply with RED • Working group on RED composed of following members: Industry • Shell, Europe • Cargill, Belgium • CARBIO, Argentina • Margerine Fats and Oils, The Netherlands Producers • Grupo Lucci, Argentina • El Tejar, Argentina Civil Society • Solidaridad, The Netherlands Observer • ProForest • GTZ • ProForest to develop a RED version of P+C. (Part B of recent tender)
RTRS Strategy to comply with RED • Develop RED Add-on option for RTRS • Seek recognition by EC as voluntary certification scheme • Member states must accept EC recognized schemes • One solution for 27 Member states • EC will publish a procedure for evaluating schemes, now expected in May • Currently expecting EC evaluation to take 6 mths including parliamentary approval • Held informal meeting in Feb with EC (Ron van Erk) • Aiming to submit formal application around end June 2010 • EC endorsement will add value to the RTRS certification scheme • Member states can obtain ‘social reporting’ requirements via RTRS
Elements in RTRS RED Add-On • Chain of custody: • RED Mass Balance at site or tank level (yet to be defined by EC) is one of the options listed by the Traceability and Market Claim working Group of the RTRS. • GTZ Traceability working paper as input to the RED WG • Principles and Criteria of the RTRS • adding on elements about land-use change/biodiversity • GHG calculation for growers and new GHG unit for processors • GTZ and ProForest working on this • Later a GHG calculator tool will be made available for use by RTRS members • Have investigated ECOFYS SenterNovem tool, need to review others (EMPA, RTFO, INTA…) and consider pooling resources with other roundtables. • Cut-off-date (in RED add-on only) adjusted from May 2009 to January 2008. Drafts developed, waiting for final EC guidance docs
Next steps • Finalize all scheme documents for RED application • Pending publication of EC guidance docs • Keep mass balance details to minimum needed for RED to ensure harmonization with outputs from upcoming chain of custody work • Arrange informal pre-meeting with EC • Modify documents if required • Submit final package aiming for June timing (if permitted to apply before scheme is operational) • Get RTRS certification scheme operational, timing now year-end for CoC • Develop carbon calculator tool for use in 2011.