Energy

EU Transport & Renewable Energy policies :

The role of Advanced Biofuels in

Decarbonising Transport

Kyriakos Maniatis PhD

Energy Technologies Innovation & Clean CoalDG ENER, European Commission

6-8 March 2018 EU-India Conference on Advance Biofuels

New Delhi

Energy

23%

56%

15%

0%

5%

1%

Gasoline

Diesel

Kerosene

Gas

Biofuel

Electricity

Challenge in transport

Source: Primes, 2015 shares in transport energy consumption

Energy

3

Increasing the share of low carbon and renewable fuels in transport through an EU blending mandate

Commission proposal for incorporation obligation

Energy

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• Gradual phase out of crop-based biofuels from 7% in 2020 to 3.8% in 2030, effectively bringing the conventional biofuel use to pre-2008 levels.

• Member States may set a lower limit and may distinguish between different types of biofuels for instance by setting a lower limit for the contribution from food or feed crop based biofuels produced from oil crops, taking into account indirect land use change.

7%6.7%

6.4%6.1%

5.8%

5.4%

5.0%4.6%

4.2%

3.8%

0%

1%

2%

3%

4%

5%

6%

7%

8%

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Food based biofuels

Gradual phase out of conventional crop based biofuels

Energy

Inve

stm

ent

R&D phase in lab

R&D phase in pilot

R&D phase in demo

Competitive market price

First-of-a-kind-plant

2nd plant

3rd plant

4th plant

Technology Mountain of death: Positioning of technologies

From Demo to 1st of a kindBio DME

From R&D to DemoAlgaeBio-Kerosene

From Lab to PilotMicrobial

First of a kindSolid Recover Fuels gasification to alcohols Wood to biomethaneWood to ethanolPyrolysis oils intermediate

CommercialisationLignocellulosic Ethanol

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Key successes

• Biochemtex of Italy built the first commercial plant on ethanol from lignocellulosics at Cresentino, Italy. This was the first such plant on global scale. Clariant is building two commercial facilities.

• EU enzyme and yeast companies such as Novozymes, DSM and Leaf are world leaders.

• Large scale algae production facilities are under development in the EU. These will be the largest facilities built in the EU; between 1-10 ha with a productivity of 40-60 dry matter ton algal biomass per hectare per year.

• The EMPYRO pyrolysis oil plant of BTG in the Netherlands and Fortum'splant in Joensuu in Finland are commercial bio-oil plants replacing fuel oil.

• The CHEMREC Bio-DME project has been the first project to demonstrate the conversion of black liquor to bio-dimethyl-ether.

• NESTE, ENI, TOTAL & UPM lead on hydrotreated oils/wastes

Energy

Interest Group Numbers

Technology providers 12

Oil companies 3

Airlines 2

Industry associates 7

Heavy duty transports 2

Maritime transport 1

Consultants 4

IEA 1

Think tanks 2

TOTAL 34

Upgrading of a wide variety of wastes and residues to Hydrotreated Vegetable Oils (HVO)

1. HVO Stand-alone production facilities2. HVO production through refinery conversion3. Co-processing

UPM’s Biorefinery plant,Lappeenranta, Finland100,000 t/y from crude tall oil

Neste's UPM plant, Rotterdam,1,000,000 t/y

Eni’s Green Refinery Project, Venice, Italy

Synthetic Fuels and Biomethane via GasificationEnerkem, Edmonton, CA

Ethanol fromMSW 90 t/d

GoBiGas, Gothenburg, SE

BioCH4 from wood, 20 MW product

Chemrec black liquor, SE& Volvo trucks

Production and upgrading of pyrolysis products and lignin rich fractions

BTG Empyro’s plant, Hengelo, NL

77 t/d pyrolysis oil; work also in co-processing pyrolysis oils in petroleum refineries

Fortum's plant in Joensuu, FI30MW product

Ensyn's plant in Renfrew, CA20,000 t/y

Ethanol from lignocellulosics via fermentation (1)Biochemtex

Crescentino plant, Italy

40,000 t/y Lignin in CHP. Test to produce biokerosene

Abengoa demo plant in Salamanca, SP

DuPont’s Nevada Plant, Iowa, USA

Abengoa’s Hugoton Plant, Kansas, USA

GranBio’s Bioflex 1 Plant, Alagoas, Brazil

POET-DSM Liberty Plant, USA

Ethanol from lignocellulosics via fermentation (2)

ST1, Cellunolix® plant under commissioning, Kajaani, Finland1st on sawdust

Clariant’s development,

Straubing, Germany

Inbicon/Dong demo plant in Kalunborg, DK

Power to Gas and Power to Liquid conversion

Audi/ Solar Fuels e-gas, Germany

CRI’s Power to Methanol:The George Olah plant, Iceland10 t/d

Algae developmentBIOFAT Pataias Pilot Plant,Portugal

The Buggypower S.L. plant,Porto Santo, Portugal

Energy

Status of technologies

The technology developers have achieved significant progress on several value chains and most of them are close to commercialisation. So what is the barrier that still hinders market deployment?

Lack of strong, stable and long terms policies to give confidence to investors.Policies and legislation cannot change every few years as this results in insecurity to investors.

Lack of dedicated innovative financial instruments.These state of the art technologies are at the same time first-of-a-kindplants with all the inherit risks entailed. Thus the biofuel they produce is more expensive than the fossil fuel they aim to replace.

Energy

•Thank you for your

attention!

• More information:

• http://ec.europa.eu/energy/renewables/