1. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Biofuels in Germany and in the European Union Political Conditions and Market Trends Internatıonal Symposium on biofuels 10th August 2006 ANKARA Dieter Bockey Union zur Förderung von Oel- und Proteinpflanzen e.V. (UFOP)

2. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Tasks... The work conducted by UFOP is divided into four main fields of work: –Political lobbying to national and international authorities. –Optimisation of agricultural production by promoting research and supporting variety trials. –Development of new means of exploitation. –Public relations work to promote the sales of all end products on indigenous oil and protein- bearing plants.

3. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V.

4. National Level - Framework Renewable Energy Law Biomass ordinance Programs supporting investments Mineral oil tax exemptions for biofuels R & D – Program

5. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Payments for electricity made of biomass determined in the law for renewable energies – 2004 plant Capacity kW/MW Payment basis 1 bio-heating fuel additional Heating- power – fee additional techno- logy additional biogasbiomass e.g. forest wood biomass total biomass total Max. 150 Max. 500 max. 5 MW from 5 to 20 MW 11,5 Ct/kWh 9,9 Ct/kWh 8,9 Ct/kWh 8,4 Ct/kWh 6 Ct/kWh 4 Ct/kWh 0 6 Ct/kWh 2,5 Ct/kWh 0 2,0 Ct/kWh 0 1 -annual reduction: 1,5%

6. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Comparison of the heating value (ct/kWh) Energy sourcePrice in ct/kWh Heating oil: 53,5 ct/l5,32 ct/kWh Natural gas (July 05) 4,6 ct/kWh 5.000 kWh Wood Pellets: 170 /t 17 ct/kg 3,4 ct/kWh Wheat 10,5 /100 kg 10,5 ct/kg 2,22 ct/kWh Source: German Farmers Association

7. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Situation and Results in Germany (2005) Economic factor bioenergy: Turnover 6.35 Billion : 1,7 bn biodiesel market 1,1 bn electricity market 0,5 bn bio heat market Investments 3,05 Billion : 1,3 bn electricitiy market 1,25 bn heat market approx. 0,5 bn biofuel market Employment: 57.000 (job-machine) Climate protection: CO 2 - savings: 26 Million Tons

8. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Biofuels in Germany Marketing Strategies - Biodiesel B 100 : filling stations, fleet owners B 5:Diesel fuel – EN 590 - Rapeseed oil:filling stations, fleet owners - Bioethanol:Gazoline – EN 228, ETBE E85

9. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V.

10. Biodiesel capacities in Germany 2006/07 Overview CapacityNo. 150.00011 100.0004 50.0005 25.0003 5.0006 2.0003 Total: 3,4 Mio. t32 locations

11. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Development of the bio-diesel market in Germany

12. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Identification of Biodiesel

13. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Biofuels 2005 (in 1000 t)

14. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Biofuel capacities in Germany 2006/07 Mio. t 1.Raw Material (rape seed) 12 industriel crushing plants >300 local, small crushing plants, size: < 20.000 t 7,9 0,5 2. Biofuel Biodiesel pure Rapeseed Oil Bioethanol 2,5 - 3,4 0,4 0,5

15. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Source: Ufop and others

16. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Use of Biodiesel / EN 14214 Warrenties for B 100: Passanger cars:VW ¹, Audi, Seat, Skoda ¹ heavy-duty-vehicles (buses, lorries): DaimlerChrysler, MAN EURO IV and V (incl. EURO III) agricultures-vehicles (tractors): Fendt, Case, Massey-Ferguson, Steyr Automotive Industry:Car/hvd- Manufactures, Diesel Fuel Injection Pump Manufactures 1 EURO IV: Biodiesel Sensor available Warranties for B 5: (Component in fossil Diesel: EN 590)

17. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Consequences of different fuel mixtures B5B10B20…B30B100 Fuel standardDIN EN 590no DIN EN 14214 warrantiesP.cars: ++ hdv: ++ P.cars, hdv: no/yes P.cars, hdv: no/yes P.cars: ++/-- hdv: ++/- Results of R&D+-(+)-(+)-++ Problems with old vehicles noprobably (longterm) yes/ warranty necessary Warranty necessary Experiencesyesno/yes yes OEMs (especially injection pump manuf.) +-- Special demands for the material nopartlyyes Fulfillment of the emission requirements No problem for P.cars and hdv, Incl. EURO III and EURO IV/V? P.cars: yes/no Hdv: yes Incl. EURO III and EURO IV/V? P.cars: yes/no Hdv: yes Pass. cars: EURO V not possible (aftertreatment system)

18. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Tax on Diesel Fuel in EU 25 (May 2004) Cent /l

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20. Energy Tax Law (01.08.2006) Taxation of Biofuels 2006/2012

21. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Energy Tax Law (01.08.2006) Taxation on biofuels: Biodiesel (B5) 15 Cent/l (till 31.12.2006) Bioethanol 0 Cent/l Agriculture and Forestry: – Reimbursement System Public traffic (buses): Reimbursement – 5 Cent/l on the corresponding tax rate on biodiesel/plant oil Annual evaluation of the tax exemption/over compensation

22. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Energy Tax Law/ Quota system (till 01.01.2007) Precondition for a tax relief for: - Biodiesel – DIN EN 14214 - Pure Plant oil – DIN V 51605 No Taxation till 2015 on: - Synthetic Biofuels (biomass to liquid – btl) - Bioethanol from cellulosis - E85 => But: Annual report about over compensation Agreement necessary between the ministry of: agriculture, environment, traffic, and economics is necessary about the environmental advantages of biofuels: CO 2 - reduction potential, sustainable cultivation of arable land

23. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Energy Tax Law/ Quota system (01.01.2007) Introduction of mandatory bio fuel quotas: - Sellers of diesel and gazoline on the stage of tax ware houses - Biofuel producer (biodiesel, plant oil) Mineraloil companies have to fullfil the following commitments: Diesel: 4,4 % Gazoline: 2 % (2007 - 2009), 3% till 2010 Additional total qouota for diesel and gazoline market: Minimum portion: 5,7% 2009 and 6 % till 2010 (all comitments on energetic basis !) Precondition: Biodiesel - DIN EN 14214 Pure plant oil - DIN V 51606 Bioethanol - 99 Vol. % alcohol content No charging of oil and fats which are used directly in the mineral oil refinery process, but hydration process like next btl will be acknowledged

24. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Impacts of the Quotasystem

25. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Conclusions The fast growing biodiesel (biofuel) market in Germany is a result of comprehensive tax exemptions and warranties given by DC, VW Introduction of a quality management is necessary Level playing field: EN 14214 Agreement of a world-wide standard of biodiesel and non technical criteria on sustainable production of biofuels/crops Need of harmonisation of tax exemptions, mandatory systems in the EU (common market)

26. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Fuels for the Future

27. UNION ZUR FÖRDERUNG VON OEL- UND PROTEINPFLANZEN e. V. Thank you for your attention! Contact: Dieter Bockey UFOP Union zur Förderung von Oel- und Proteinpflanzen e.V. (Union for the Promotion of Oil Seed and Protein Plants reg. Ass.) Claire-Waldoff-Str. 7 10117 Berlin Tel.: +49 (30) 31 90 42 15 Fax: +49 (30) 31 90 44 35 e-Mail: d.bockey@ufop.de