position of the mineral oil industry to ethanol · 2019. 7. 2. · omv aktiengesellschaft move...
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OMV Aktiengesellschaft
Move & more
Position of the Mineral Oil Industry to Ethanol
2. European Bioethanol Technology MeetingDetmold, April 25-26, 2006
Dr. Dipl.-Ing. Walter BöhmeHead of InnovationOMV AG
2 | OMV AG, Position to Ethanol
Business Units of OMV AG
Exploration andProduction
Refining and Marketing incl.Petrochemistry
Gas
3 | OMV AG, Position to Ethanol
Exploration & Production - Worldwide ActivitiesStable production volumes from Austria and Romania
Significant growth in North Africa, Middle East/Caspian and in the North Sea/ Atlantic Margin
Valuable contribution from New Zealand
Substantial position in Russia
Core Area
Potential Core Area
Key
350,000 boe/d
Core country
Potential core country
4 | OMV AG, Position to Ethanol
R&M: A Leading Market Position in CEE
Source: RM TM1 04/2005
20% market share within the D-13 area leads to a dominant position for
Optimizing the refining systemOperating above a critical mass in retail
Entering new markets improves the portfolio life cycle (mature to growing)
50.0 mn t
15.4 mn t
15.9 mn tPetrobrazi
Arpechim
Bayernoil
BurghausenSchwechat
Oil products market in mn t in 200418% total market share OMV Group (retail and commercial)
Retail Network2500 stations
34 % of Petrol Ofisi
5 | OMV AG, Position to Ethanol
Gas – Vision and strategy 2010
Core marketsEconGas sales clusterPetrom/OMV Gas sales cluster
Expansion of transit capacity of TAG and WAGPromote Nabucco project
Potential integration projects with OMV/Petrom E&P
Sales and Trading: Gaslogistcs:
CZ
SK
H
SLO(North) Italy
(South)Germany
TAG
WAG
Nabucco 2011
RO
BGYU
HR
BA
?
?
? North Africa
? Iran
Existing storage facilities Potential storage facilities Potential LNG plant
Dynamic growth in Sales and Trading (EconGas, Petrom), Transit (Austria, Nabucco, LNG) and Storage (Austria, Romania)
6 | OMV AG, Position to Ethanol
Detmolder Ridge in the Austrian Alps
7 | OMV AG, Position to Ethanol
Market Environment
8 | OMV AG, Position to Ethanol
Europe oil product balances
-60
-40
-20
0
20
40
60
LPG Gasoline Jet/Kero Diesel
2003 2005 2010 2015 2020
Mt
Deficit
15% of production 2015
Surplus Gasoline Exports: 42% of the production in 2015
Source: Wood Mackenzie
9 | OMV AG, Position to Ethanol
Gasoline wordwide flows at 2015
[Mton]
Source: ENI R&M at 7th Annual European Fuels Conference, Paris 2006
10 | OMV AG, Position to Ethanol
Fuel sales volume in Germany
15
20
25
30
35
1990
1995
2000
2005
2010
2015
2020
mill
ion
tons
Diesel Gasoline
Forecast
Source: MWV aktuell, Special Edition Biofuels, Feb 28,2006
11 | OMV AG, Position to Ethanol
Share of Diesel Cars increase
Source: Fuels Conference, 01Lawrence_Eagles_IEA.pdf, Session 1, chart 18
Share of Diesel fuelled new passenger car registrations [%]
12 | OMV AG, Position to Ethanol
Reasons for shift to diesel fuel
Good performance of diesel engines
Low cost of operationLow fuel consumptionLower mineral oil taxes on diesel oil
0100200300
AT BE DK FI FR DE GR IE IT LU NL PT ES SE UK Del
ta M
OT
[ €
]
13 | OMV AG, Position to Ethanol
Trend of mineral oil tax in Germany
0
10
20
30
40
50
60
70
8019
50
01.0
5.19
53
01.0
4.19
60
01.0
1.19
66
01.0
1.19
72
01.0
7.19
73
01.0
4.19
81
01.0
1.19
86
01.0
4.19
88
01.0
1.19
91
01.0
1.19
93
31.1
0.19
95
01.0
1.20
00
01.1
1.20
01
01.0
1.20
03
Tax
[€ce
nt/l
]
Gasoline Diesel
Source: MWV aktuell, Special Edition Biofuels, Feb 28,2006, internal view
14 | OMV AG, Position to Ethanol
0
100
200
300
400
500
600
2000 2001 2002 2003 2004 2005 2006
[ €/1
000
l]
Gasoil
Gasoline
Product Price: Platts Barges Fob Rotterdam
15 | OMV AG, Position to Ethanol
Resume Market Environment
EU Diesel shortage will increaseEU Gasoline oversupply will increase
ChallengeBalance the demand
- Mineral Oil Taxes- Car Taxes- Car Emission Regulations- etc.
16 | OMV AG, Position to Ethanol
Ethanol for the Fuel Market
17 | OMV AG, Position to Ethanol
Production costs of bioethanol
010203040506070
Brasil(sugarcane)
USA (corn) EU (wheat, S) EU (wheat, L)
[€/1
00 l]
Gross (w/ o subsidy) Net (w subsidy)
Source: Study by IEE, Nachhaltige Biomassenutzungsstrategien im europäischen Kontext
18 | OMV AG, Position to Ethanol
Basic conditions for Ethanol market launch
TechnicallyUsed in the vehicles without modificationsExisting product standards (warranty)Products can be blended (supply chain)Use of existing transport logistics and dispensers
EconomicallyInterest for all stakeholdersSelf financing for the oil company?Customers needs?
19 | OMV AG, Position to Ethanol
Way’s to introduce Ethanol
Today according to the fuel standard EN 228Ethanol blended up to 5% (v/v) in gasoline (= 3,4% energy)ETBE blended up to 15% (v/v) in gasoline (= 6,2 % energy)Oxygen content max. 2,7 % (m/m)
TomorrowEthanol blended > 5% (v/v) in gasoline ?Ethanol (E85) for flexible fuel vehicles ?Neat FAEE and FAEE blends in diesel oil ? Ethanol and ethanol derivative in diesel fuel ?Neat ethanol fuel (E95 with additives for diesel engines) ?
20 | OMV AG, Position to Ethanol
Question for refineries: Reduce output volumes
Ethanol Blend = Substitution
5 % (v/v) ethanol substitute min. 3,4 % (energy) gasoline
Ethanol Derivate = Change
ETBE substitutes MTBE
21 | OMV AG, Position to Ethanol
More barriers for Ethanol direct blendingVapor pressure
Influence on emissions and driveabilityEthanol and ethanol-blends increase vapor pressure, need for dedicated logistic supply chain
Presence of waterWater elutes ethanol Water absorption of gasolineClouding of the product
Resistance of materialsCorrosion (new vehicles-old vehicles)New, ethanol/water resistant materials have to be used in the fuel system of the vehicles as well as in the distribution system.
Highly integrated and fungible (exchangeability) nature of the transport fuel market
OMV Biofuels Österreich praktische Umsetzung_en, ch. 28
22 | OMV AG, Position to Ethanol
Ethanol direct blending impact
Refinery productionReduction of gasoline output = reduction of utilizationAvailability of low RVP components
SupplyPipeline transport not possible if the system also deliver aviation fuel
StoragesFixed roofs, more delivery systems (export, product portfolio)
Retail StationWater
23 | OMV AG, Position to Ethanol
Ethanol implementation in Austria
390
400
410
420
430
440
450
until 30.09.07 * ) S-free 01.10.07 * * ) S-free + min.4,4% (v/v) Bioethanol
417 *)
432
445
412 **)
3315
Mineral oil tax [€/1000l]
+ 13
- 5
OMV Biofuels Österreich praktische Umsetzung_en, ch. 27
24 | OMV AG, Position to Ethanol
Advantage of tax differentiation
Defined products on the market – with or without biofuels, easy to monitor
About the amount of the tax differential the authorities can control the amount of biofuels on the market
The system is independent from crude oil prices
Same system for Biodiesel in Austria since 1.10.2005 –Result = 100% of diesel on the market contain 4,8% of Biodiesel.
25 | OMV AG, Position to Ethanol
Detmolder Ridge – How to conquer it?
ETBE Ethanol direct blendesp. in summer Tiring and inconvenient Very casually to deal with it
26 | OMV AG, Position to Ethanol
Summary: Position on Biofuels
In the energy sector biomass should be used where its offer the best energy efficiency and the greatest GHG avoidance (should be considered by legislation and tax treatment)Costs of today’s biofuels (in the transport sector) exceed significantly those of the conventional fuels they are respected to replaceHarmonization of biofuels implementation mechanisms between Member States is desirableIntroduction of biofuels must not compromise fuel product qualityRegulatory mechanisms must not discriminate between biofuels and biofuelsblends on the basis of their origin (feed, country)Flexible Mechanism that use market forces to encourage competition will deliver the best efficiencySubstitution targets should be framed over total road transport fuel volumes and should consider markets needs.
27 | OMV AG, Position to Ethanol
But
The implementation of biofuels now is a political decision
Until the costs of biofuels exceed significantly those of the conventional fuels the authorities can promote and control the implementation about tax treatments.
According to the Commission’s own assessment EU biofuels would become cost-competitive with sustained oil prices above ca. 110 $/bbl for bio-ethanol
With shrinking of the gasoline demand in the EU also the need and potential for substitution of gasoline is shrinking.
28 | OMV AG, Position to Ethanol
Thank you
Any “distillation residue”?