1. Biofuels in Sweden – moving the sustainability agenda forward Semida Silveira PhD, sustainability expert International Secretariat Curso combustíveis líquidos Campinas, Brasil 08 June 2006

2. Biofuels in Sweden – moving the sustainability agenda forward Presentation structure  EU policies and concerns  Swedish experiences  Reducing fossil fuel dependence

3. Priorities in EU energy policies  security of energy supply  environmental protection  industrial competitiveness

4.  Security of supply In 2030, EU may have to import 90% of oil 90% of coal 60% of gas Why alternative fuels for transport in Europe? (1)

5. Reduction of greenhouse gas emissions (transport is major source of GHG emissions) 8% reduction of GHG emissions (2008-2012) Why alternative fuels for transport in Europe? (2)

6. Estimated greenhouse gas reductions from biofuels Source: IEA, Biofuels for Transport, 2004

7. Range of cost per tonne of CO2 reduction Source: IEA

8.  Biofuels directive 5.75 % in share of biofuels in transport 2010  Increasing production of biofuels  Test of ethanol busses in many cities Action to promote transport biofuels use in Europe

9. EU targets for alternative motor fuels (% of total road fuels)

10. Biofuels in Sweden – moving the sustainability agenda forward Presentation structure  EU policies and concerns  Swedish experiences  Reducing fossil fuel dependence

11. Sweden’s energy use 2004 Total energy use 1970 = 408 TWh 2004 = 405 TWh

12. Energy intensity per BNP Sweden 1980-2002 Uranium Coal Gas Oil Biofuels Hydro, wind Total Source: SCB energy use delinked from development Accomplishments

13. Growth of income per capita 1980-2004 (50% increase) Growth in % BNI/capita 10.000kr Broken time series 1993/94 Source: SCB Total energy use 1970 = 408 TWh 2004 = 405 TWh energy use delinked from economic growth

14. Transport fuels in Sweden 1970-2003

15. CO 2 emissions in Sweden 1980-2003

16. Greenhouse gas emissions per sector in Sweden transport buildings waste Industrial processes heat and power agriculture industry

17. Bioenergy in Sweden factors that favoured the development  district heating systems – heat markets  investment subsidies and tax incentives  integration with forest industry  local engagement in energy issues  long-term policies for fossil fuel substitution  research and development

18. Development of district heating 1970-2004

19. Bioenergy use for electricity generation in pulp mills effect of green certificates Source: Svebio

20. BioEthanol expansion in Sweden 2001-2005

21. Clean vehicles in Sweden

22. Major driving forces favouring transport biofuels in Sweden  Policy to break oil dependency 2020  CO 2 emissions reduction needs (4%)  The biofuel directive (5.75 biofuel 2010)  Security of supply

23. Driving forces for ethanol use in Sweden  Tax incentives on biofuels  Cheap ethanol from Brazil  Legislation on installation of pumps in gas stations

24. Legislation for filling stations  Mandatory biofuel pump at stations larger than 3500 tonnes gasoline (2006) Larger than 1000 tonnes gasoline (2009)  Technology neutral but will favour ethanol (biogas pumps cost 5-10 times more than ethanol)

25. Filling stations in Sweden 300 filling stations for ethanol E85 Green-ethanol Yellow-FAME Blue-Biogas, natural gas all stations expected to deliver biofuels in 2009

26. Driving forces for flexifuel vehicle (FFV) in Sweden  Tax reduction on biofuels  Incentives for car owner  Free parking in some municipalities  No congestion fee in Stockholm  Cheap ethanol

27. Calculations for a FFV owner  Company car taxation - 300 Euro  Free parking - 500 Euro  No congestion fee - 1400 Euro  Lower price on ethanol - 150 Euro Total savings per year- 2350 Euro

28. Problems on consumer side  less energy content in ethanol (up to 30%)  conservatism  short term legislation (2008)  uncertain development of ethanol prices  fewer advantages for private cars  FFV more expensive than conventional car (€400-900)

29. Problems for the government  tax exemption is expensive (green certificates?)  large imports (duties?) X own production  distribution of biofuels (mandatory measures)  hard to fulfill the biofuel directive  no direct solution for diesel (BTL)

30. Biofuels in Sweden – moving the sustainability agenda forward Presentation structure  EU policies and concerns  Swedish experiences  Reducing fossil fuel dependence

31. Dealing with the energy and climate challenges less fossil more renewables efficient energy supply and use ecologically, socially and economically robust systems; increased energy service access; climate change mitigation competitive markets new systems new investment patterns

32. Major policy targets in Sweden  breaking oil dependence (2020)  17 TWh more electricity from renewables (2002-2016)  non-binding target of annual wind power = 10 TWh in 2015  reduce energy use in buildings by 20% (1995-2020)  4% less ghg emissions without sinks or flexible mechanisms Goals and policies

33. Research focus energy in transport  Production processes for renewable fuels  Improved energy efficiency of vehicles

34. Development platform – well to wheel VEHICLES EMISSIONS RENEWABLE FUELS Fuels are CO 2 neutral and highly efficient Efficient vehicles delivered from industry Commercial technologies; harmonization within EU

35. Introduction of biofuels in the market FuelsLow mixture100% clean fuel DME Ethanol (E) Alcohols (A) Diesel short term ---- > middle-long term E5 (E10) Synthetic M3 Synthetic A100

36. Biodiesel production in Europe (in thousand tonnes) Country20052006 Germany16992681 France492775 Italy396857 Czech Rep133203 Poland100150 Austria85134 UK51445 Sweden52 Total EU31846069 Source: European biodiesel board

37. Ethanol from cellulose pilot plant - € 27 million project

38. Gasification and synthes gas for transport fuels and chemicals Synthes gas (CO+H2) Gas Coal Biomass Synthetic Diesel (FT) Metanol DME (DiMetylEter ) Hydrogen Black liquor Oil prods GASIFICATION CO 2

39. Two gasification roads being tested in Sweden Source: modified from CHEMREC

40. Växjö Värnamo Biomass Gasification Center

41.  project illustrating Swedish and European ambitions to accelerate the implementation of the Biofuels Directive  centre of excellence for training and development of technical know-how in gasification for liquid biofuel  regional project with global interest

42.  Feeding systems  Hot gas cleaning  Gasification of biomass  IGCC  GT  Synthes gas upgrading  Catalyst research  BTL processes  H 2 for fuel cells  Training and education Växjö Värnamo Biomass Gasification Center

43. CHEMREC’s demonstration plant black liquor gasification

44. The BLGMF process substitutes the recovery boiler and allows production of transport fuels typically 5-600 MW Pulp Black liquor energy Biomass BLGMF DME/MeOH Source: CHEMREC

45. Extra biomass inputs balances the internal energy needs Typically 5-600 MW Pulp Black liquor energy Biomass BLGMF DME/MeOH Source: CHEMREC

46. and allows for 65% more production of highly efficient transport fuels typically 5-600 MW Pulp Biomass BLGMF DME/MeOH >65% Source: CHEMREC Black liquor energy

47. Price of the fuel at the pump - methanol and gasoline (Chemrec)

48. Heavy duty vehicles distance per hectare and year 020004000600080001000012000 km / hectare & year Rapeseed to RME, byproducts as animal feed Wheat to ethanol, straw as energy, byproducts as animal feed Salix to Ethanol Salix to Synthetic Diesel Salix to Synthetic Diesel via Black Liquor Salix to Methanol Salix to DME Salix to Methanol via Black Liquor Salix to DME via Black Liquor Diesel engine efficiency assumed for all fuels Source: AB Volvo

49. The road ahead for biofuels in Sweden  biofuels can be phase-in into existing transport systems  ethanol is a good starting point  incentives are needed in initial phase  introduction of biofuels expensive for the government  more RTD is needed for development of biofuels  EU consensus on what to do but how to do it still pending

50. Obrigada! semida.silveira@stem.se www.stem.se