EBB

European Biodiesel Board

CURRENT STATE AND FUTURE PROSPECTS
Raffaello GAROFALO EBB Secretary General
Biodiesel Chains Meeting Bucharest, July 28th, 2007

BIODIESEL IN THE EU 25

EBB – European Biodiesel Board
EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest, July 28th 2007
Raffaello GAROFALO, EBB Secretary General

EBB Secretary General . July 28th 2007 Raffaello GAROFALO.EBB European Biodiesel Board Membership EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest.

75 Bioethanol EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest.EBB European Biodiesel Board 2005 production of biofuels in the EU-25 Sources: EBB. July 28th 2007 Raffaello GAROFALO.1 Biodiesel . EBIO 4 3 Mt 2 1 0 0. EBB Secretary General 3.

EBB Secretary General .3) US (0.5 world (0.5 m illio to n nnes EU (3.5 3 2.1) 2 1.million tonnes) 3. July 28th 2007 Raffaello GAROFALO.25) 0 EU Worldwide EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest.5 1 0.EBB European Biodiesel Board EU and Worldwide biodiesel production in 2005 (estimate .

July 28th 2007 Raffaello GAROFALO.EBB European Biodiesel Board EU and Member States’ Biodiesel Production (‘000 t) 3500 3000 2500 2000 1500 1000 500 0 1998 2000 2002 2003 2004 2005 EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest.5-4.9 mio t in 2006 ? Germany France Italy Others EU-25 Total EU . EBB Secretary General EU-15 EU-15 EU-15 EU-15 EU-25 EU-25 4.

EBB European Biodiesel Board What would the Directive’s targets represent in practice? 5. EBB Secretary General .75% Scenario for the EU-25 EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest. July 28th 2007 Raffaello GAROFALO.

. Germany. Obligation under study: Czech Republic. Spain. … Policy Mix (detaxation together with obligatory targets) – Austrian law – French “TGAP” EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest. The Netherlands. Poland.EBB European Biodiesel Board No real EU internal market Excise reductions or exemptions Each with a different level of excise and different system of detaxation With and without quota systems Mandatory targets Obligation in application: UK. EBB Secretary General .. July 28th 2007 Raffaello GAROFALO. Italy.

assessment of CO² impact Biofuels have a central place in the EU proposal for a Common Energy Policy EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest. EBB Secretary General .EBB European Biodiesel Board Towards an EU Energy Policy (Commission proposals – January 10th 2007) “Road Map on Renewable Energies” Mandatory target of 20% for 2020 Minimum legal binding target of 10% in every Member State for biofuels Revision of Directive 98/70 on Fuel Quality Reduction of1% of CO² emissions from fuels every year for 10 years as from 2010 In practice necessary to increase by 1.7% biodiesel consumption every year until 2020 on 2010 basis Revision of Directive 2003/30 (biofuels) Umbrella Directive on renewable energies to be proposed in the summer Main issues: support policies. policy mix. July 28th 2007 Raffaello GAROFALO.5%-1.

EBB Secretary General .EBB European Biodiesel Board Impact of the new proposals and of the Road Map 10% target: in practice 25-28 million tonnes on the market in 2020 Towards the end of national detaxation schemes? Revision of the Directive on Fuel Quality: strengthens the impact Positive conclusions of the European Council: now implementation need rapid Policies and standards to be adapted already in the next months Necessary to increase (quickly) the % of biodiesel blend in diesel from 5% to 10% (without separate labelling or double grade diesel) EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest. July 28th 2007 Raffaello GAROFALO.

EBB European Biodiesel Board Future biodiesel challenges Quality (also related to raw materials use) – Pre-condition to any biodiesel success – Announcement: EBB Quality System Future availability of agricultural raw materials Biodiesel and biofuels sustainability Eventual CO² certification of biofuels International biodiesel trade Biofuels: “1st generation” vs. EBB Secretary General . July 28th 2007 Raffaello GAROFALO. “2nd generation”? Glycerine outlets EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest.

1 MT UFO 0.6 MT ? Others 0.5 Million tonnes EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest.2 MT Animal fats 1. July 28th 2007 Raffaello GAROFALO. EBB Secretary General .6 MT 13% 2% 9% 5% Sun and HOSUN 1 MT ? 63% Rape Oil 8 MT 8% TOTAL: 12.75% biodiesel target a possible raw materials scenario IMPORTS 1.EBB European Biodiesel Board 5.

00 400 000.5 million ha potential is exploited 500 000.00 Areas under Energy crops in EU-25: Only 1/3 of the 1.00 200 000. EBB Secretary General .00 300 000.00 2004 0.00 2005 Source: Commission DG AGRI EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest. July 28th 2007 Raffaello GAROFALO.EBB European Biodiesel Board 600 000.00 100 000.

Poland.5 million hectares EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest. the Czech Republic. Lithuania. Estonia. Latvia. Romania and Slovakia Maximum area which can benefit from this aid extended to 2 million hectares from 1. Hungary. July 28th 2007 Raffaello GAROFALO. EBB Secretary General . Cyprus.EBB European Biodiesel Board Extension of energy crop aid scheme to all member states Extension of the crop premium of €45 per hectare to Bulgaria.

EBB Secretary General .EBB European Biodiesel Board Bases of the future market development of biofuels and biodiesel Biofuels certification THE EUROPEAN BIODIESEL INDUSTRY IS STANDING FIRST TO APPLY A SUSTAINABILITY CERTIFICATION TO THE RAW MATERIAL THAT IT EMPLOYS Simple clear and universal rules and principles need to be applied Avoid fragmentation Avoid burdensome bureaucracy: contrary to aim of decreasing prices Avoid “food” related labelling consideration: biofuels are distributed via refineries and marketed at fuel pumps not in supermarket shelves EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest. July 28th 2007 Raffaello GAROFALO.

1 million tonnes (not because of biodiesel) EBB favours the establishment of a certification scheme: but necessary to think about criteria applicable not only to 3% of the uses …. … o In the last 5 years imports of palm oil have been doubled from 2.EBB European Biodiesel Board Bases of the future market development of biofuels and biodiesel Sustainability and environmental impact of biodiesel BIODIESEL = PALM OIL: A WRONG EQUATION … AND A MISCALCULATION: less than 3% of palm oil imported in the EU becomes biodiesel Where the “remaining” 97% ends up? > Margarine. if the intention is really to preserve rain forests Land use is the real issue EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest. prepared food. oleochemistry. etc.3 to 4. EBB Secretary General . biscuits. burning for electricity etc. July 28th 2007 Raffaello GAROFALO.

EBB European Biodiesel Board Bases of future market development of biodiesel and biofuels C0² impact and LCAs Too many studies exist. EBB Secretary General . often contradictory Necessary to elaborate a common European reference (for C0² and sustainability) JRC-Concawe-Eucar study: starting point need to become more transparent What about “second generation biofuels”? Diesel or gasoline substitutes: two very different perspectives Biofuels have to be compared with other fuels effectively available on the market How will increasing unconventional oil extraction taken into account? EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest. July 28th 2007 Raffaello GAROFALO.

Algae. July 28th 2007 Raffaello GAROFALO.EBB European Biodiesel Board Pathways for biodiesel development world-wide Technology progress in FAME production: – – – – FAEE Recycled fats Biodiesel from other raw materials (Jatropha. etc.) Glycerine use as biofuel (GTBE) A big opportunity: biofuels in developing countries – A cheaper fuel for remote areas – Social dimension of biodiesel CONCLUSION Biodiesel is becoming a world-wide reality All the issues mentioned before have to be tackled in an international context EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest. EBB Secretary General .

org Or visit the EBB web-site : www.ebb-eu. EBB Secretary General .EBB European Biodiesel Board For more information please contact: Raffaello GAROFALO – Secretary General EBB . 363 – 1150 Brussels Tel +32 2 763 24 77.org EU BIODIESEL MARKETS BIODIESEL CHAINS Bucharest.European Biodiesel Board Avenue de Tervuren. July 28th 2007 Raffaello GAROFALO. email: ebb@ebb-eu.

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