Low blend ethanol, biodiesel and E85

Bioethanol expansion in Sweden year 2001 – 2005

Environmental car sales 2004 Jan 2005Change 2004 Ethanol cars % Gas- /gas-petrol cars % Electric hybrid cars % Electric cars % Ethanol buses380- 5% Gas buses and trucks % Heavy electric cars and fuel cells18+ 6% Total share of cars:0,4 % (light vehicles) Sales per year:2,8 % (light vehicles)

Driving forces for biofuels The biofuel directive Tax reduction on biofuels Cheap ethanol from Brazil Investment support for filling stations (biogas)

Driving forces for environmental cars Tax reduction on biofuels Incentives for car owner –Cost reduction for company cars (-20%) –Free parking –No toll –No restriction of fuels used (could be petrol) Governmental and regional procurement

Swedish policy (short term) Aim for 3 % biofuels 2005 Tax reduction until 2008 Cerificates in the future Low blends up to 5 % RME and 10 % ethanol are the most effective way to reach the goals FFV is promoted Filling stations for biofuel (E85) could be compulsary

Scenarios for 2005 and ,25% 2,48% 3,89% 5,75% 3,84% 8,74%

Dedicated cars for different scenarios

Environmental cars in Sweden

Car market development Volvo and SAAB expect to take each of the FFV market in the first year, total Biogas interest groups expect to have 1 TWh 2010 Around 30 models of gas vehicles

Costs for introduction of biofuels 5 % ethanol in all petrol costs in tax loss ~81 MEuro ( m3) Company cars cost reduction Tax reduction for car toll 4,5 MEuro ( cars) Free parking (10 Euro/day/car)

Preliminary goals for Member states 2005

Road transport biofuel platform (DOE) Thermo-chemical Pathway Biochemical Pathway Biofuels, Chemicals & Materials (Biorefinery) Biomass Combined Heat & Power

Why is Sweden so eager to push for this Technology platform? Transport is the main problem for green house gases Security of supply More cost effective and energy effective fuels must be developed

Swedish investment in second generation biofuels 20 MEuro in Värnamo gasifier 20 MEuro in Piteå gasifier 22 MEuro in ehanol from cellulose Total ~62 MEuro in these projects for 5 years ( tax reduction is ~90 MEuro/year, increasing!!)

Conclusions Low blends of biofuel the most effective way to reach the goals –10 % ethanol in all petrol is necessary Continuos reduction on energy tax for biofuels –Could be transfered to certificate system Continous investment in RTD for second generation biofuels development (pilot plants)

 Over compensation for tax reduction  Competition from international production  Stimulation of new investments  Promotion of more cost and energy efficient technology  Increased security of supply, decreased oil dependece, lower oil price  Less influence on the climate?  Regional development and new jobs? ???? Where are we going??? Will we reach the goals??

What can we do together??? Instead of tax reduction, market driven certificates Common efforts to develop more energy and cost efficent fuels like second generation biofuels Common understanding how to reach the goals the most cost effective and fastest way (low blends?)

Market development for biogas cars (1 TWh)?

Insatser för att främja biodrivmedel  Fullständig skattebefrielse rapporteras t.ex. i Tyskland och Spanien  Portugal rapporterar befrielse upp till volymen av sitt nationella mål (1%)  Finland har skattelättnader för FUD-projekt  Frankrike rapporterar en partiell skattelättnad  Danmark rapporterar skattelättnad motsvarande enbart koldioxidskatt ... Många MS har någon form av skattelättnader; antingen fullständiga eller partiella, antingen generella eller för någon viss volym. andra medlemsländer

Andel biodrivmedel 2003 och sedan …

 Biodrivmedel ett komplement till andra åtgärder  Introduktionen skall ske på kostandseffektivt sätt under beaktande av alla aspekter av en hållbar utveckling.  Betraktat enbart som åtgärd för att minska klimatpåverkan är insatsen knappast är kostnadseffektiv.  Risk för att förslaget främst gynnar dagens etablerade biodrivmedel tillverkade med billigaste möjliga teknik.  Brist att direktivförslaget inte inriktas främst mot sådana biodrivmedel som i ett livscykelperspektiv har en påtaglig klimatfördel  Biodrivmedel har potential att kunna utvecklas mot mer kostnadseffektiva och klimatvänliga lösningar. Det långsiktiga perspektivet bör vara en viktig utgångspunkt för åtgärder för att främja en introduktion av biodrivmedel. Svenska tankar inför förhandlingarna om direktivet…

Vine alkohol ca 2.5 kr/l (only maximum ton total) · In Brazil production cost under 2 kr/l large plants and 2.5 kr/l etanol small plants. Value of byproduct like bagass and sugar is 1 kr/kg). Production cost in in Colombia and Thailand is 2.5 kr/liter etanol. · I USA coss like 2.4 kr/l will appear. In Canada is the price 3 kr/l for wheatbased ethanol. · Swedish and European production sites with sugar and wheatbased ethanol ( m3 ethanol/år) have a price of over 5 kr/liter. Prices on ethanol

Flotta av biobränslebilar (2003) ~