1. Chinese TAIPEI  Experience in Biofuels: RD&D Challenges on the Way Towards Success 1 Experience in Biofuels: Asia-Pacific Economic Cooperation (APEC) NEW AND RENEWABLE ENERGY TECHNOLOGIES EXPERT GROUP MEETING - 27th Meeting 9 October 2006 Zhuhai, China Chinese Taipei Successes and R&D Challenges RD&D Challenges on the Way Towards Success

2. Chinese TAIPEI  Experience in Biofuels: RD&D Challenges on the Way Towards Success 2 I.Activities II.Approach III.Challenges IV.Concluding Remarks OUTLINE BIOENERGY

3. Chinese TAIPEI  Experience in Biofuels: RD&D Challenges on the Way Towards Success 3 3,000 kl/yr Bio-diesel demo plant BOE Project ． Tech. developed by ITRI BIODIESEL  First biodiesel demo plant constructed in 2004  Three plants now in operation and two under planning  760 garbage trucks fueled by B5~B100 Major problems: filter plug & loss of horsepower using high blends of biodiesel Advantages: air pollutants reduction (except NOx)  Biodiesel Activities in Chinese Taipei

4. Chinese TAIPEI  Experience in Biofuels: RD&D Challenges on the Way Towards Success 4 BIODIESEL Approach for Promoting Biodiesel  Preliminary Subvention Program (2006.10-2007.12) - Public transportation buses fueled by B5 in a selected area - The difference in purchase price between biodiesel and fossil diesel is subsidized by the government - Feedstock: 1,200 ha soybean/sunflower (set-aside land)  Green County Demo Program (2007.1-2008.6) - All diesel vehicles are fueled B1 in the demo county - The difference in purchase price is subsidized - Feedstock: 8,000 ha energy crop (set-aside land) + 3,300 metric tons of waste cooking oil  B1 Program (2008.1- ) - All diesel blends biodiesel by 1vol% (~50,000 kl biodiesel) - Feedstock: 20,000 ha energy crop (set-aside land) + 37,000 metric tons of waste cooking oil

5. Chinese TAIPEI  Experience in Biofuels: RD&D Challenges on the Way Towards Success 5 BIOETHANOL Approach for Promoting Bioethanol  Government Vehicles Demo Program (2007.9-2008.12) - Government Vehicles in Taipei are fueled E3 bioethanol (~12 stations)  E3 Demo Program in Taipei and Kaohsiung (2009.1-2010.12) - Most gas stations in Taipei and Kaohsiung provide E3 (186 stations)  E3 Program (2011.1- ) - Most gas stations provide E3 (2,500 stations)  Ethanol supply: locally made from sweet potato and import if necessary

6. Chinese TAIPEI  Experience in Biofuels: RD&D Challenges on the Way Towards Success 6 Challenges to the adoption of biofuel BIODIESEL  Feedstock  Cost  Storage and Distribution  Public acceptance  Legislation  Policy measures

7. Chinese TAIPEI  Experience in Biofuels: RD&D Challenges on the Way Towards Success 7 Feedstocks and Standard for Biodiesel  Iodine Value EN 14214 : <120 g I 2 /100g ASTM D6751-06: not specified Soybean: 120-140 g I 2 /100g  Cetane Number EN 14214 : >51 ASTM D6751-06: >47  Oxidation Stability EN 14214 : >6 hrs ASTM D6751-06: not specified Biodiesel properties: f(nature of crops, processing)

8. Chinese TAIPEI  Experience in Biofuels: RD&D Challenges on the Way Towards Success 8 Fuel Quality Impact on Vehicles – B5  Although low blends of biodiesel (<B5) have been widely used and labeling is not required in many countries, local auto manufacturers may have some concerns.  JAMA’s Test Diesel fuel blended the FAME meets EN14214 by 5 vol% Corrosion was observed in the Fuel Tank Test Abrasive wear was observed in injector in the Engine Durability Test Ref: JAMA’s presentation, Sep. 5, 2006

9. Chinese TAIPEI  Experience in Biofuels: RD&D Challenges on the Way Towards Success 9 Fuel Quality Impact on Vehicles – E3  Preliminary Survey by local Auto Manufacturers ~6 millions passenger vehicles in total 82% of post-2000 vehicles (~1 million cars) are suitable for E3  ~12 millions motorcycles/scooters in total and 95% of them adopt carburetor,  A preliminary tests showed the increases of regulated air pollutants from old vehicles fueled by E3  Dual supply of E3 with labeling and regular gasoline may be necessary

10. Chinese TAIPEI  Experience in Biofuels: RD&D Challenges on the Way Towards Success 10 RD&D Challenges  Biodiesel Confirmation Test Corrosion and Oxidation Stability Iodine Value, Linoleic FE, Polyunsaturated FE  E3 tests are essential, especially for scooters  Two-Stage Transesterification for Waste Cooking Oil  Algae Cultivation as Biofuel Feedstock  Ethanol from Cellulose  Other Biofuels, eg. BTL, Butanol, etc.

11. Chinese TAIPEI  Experience in Biofuels: RD&D Challenges on the Way Towards Success 11 Concluding Remarks  Support from all stakeholders is necessary  Government subsidy is necessary for the promotion of biofuels  Blend ratio can be higher if biofuels are cheaper than petro-fuels  Multi-feedstocks is the trend in the future  R&D is essential for the adoption of biofuel Cost Quality Supply

12. Chinese TAIPEI  Experience in Biofuels: RD&D Challenges on the Way Towards Success 12 Thank you for your attention.