1. Tallin, 07.10.2005 Sources of energy from agricultural crops in Poland

2. Tallin, 07.10.2005 Conspect Introduction Polish Energetic Policy Renewal sources of energy Biomass availability for energy purpose Payments for energy crops Regulations for liquid biofuels National indicative target Conclusion

3. Tallin, 07.10.2005 Introduction Energetic Policy of EU White Paper – 1997 share of renewable sources of energy - 12% in 2010 - 20% in 2020 Fuel and energy balance - 7,5% in 2010

4. Tallin, 07.10.2005 Polish Energetic Policy 04.01.2005 – Polish Energetic Policy until 2025 (objectives, priorities) 09.12.2004 – Obligations for purchasing energy from renewal sources 3,1% in 2005 => 9% in 2010

5. Tallin, 07.10.2005 Polish Energetic Policy Needed to comply the goals - increase of energetic crops area up to 160-200 thousand ha in 2010 (1,2-1,4% of whole arable area) - lack of domestic market products => infrastructure development - stability of supplies

6. Tallin, 07.10.2005 Biomass availability for energy purposes Stocks - overage surplus of non used 6-8 mln tones of cereal straw = 3-4 mln tones of coal / year - potential production – 470 mln litres - used 10-15% - marginal: by-products, wastes and other production

7. Tallin, 07.10.2005 Payments for energy crops SAPS (Single Area Payment System) - no aid for energetic crops - possibility of national grants for 1000 ha up to 55,46 Euro/ha (possibility of reduction) - Ordinance of MRiRW - conditions

8. Tallin, 07.10.2005 Payment for energetic crops SPS (Single Payment Scheme) - aid for energetic plants (RR 1782/2003 chapter 5) - 45 Euro/ha of energetic plant

9. Tallin, 07.10.2005 Liquid biofuels - regulations Directive 2003/30/EC - 2% of renewal energy by energetic content in fuels to the end of 2005 - 5,75% to the end of 2010

10. Tallin, 07.10.2005 Market situation Biofuel companies in transport fuel market - 17 companies – bioetanol possibility 471,6 mln l/year - 10 companies – esters possibility 166,4 mln l/year and growing

11. Tallin, 07.10.2005 Bioethanol production % 27% 24% 14% 11% 35% 29%

12. Tallin, 07.10.2005 Bioethanol production In 2004 use ~10% existing production power 5% Import to Poland 2004 – 48,5 mln litres reached fuel market (19% of total production) 2005 – 60 mln litres will reach fuel market (prediction)

13. Tallin, 07.10.2005 Bioethanol production raw materials Cereals – low market prices PeriodcerealsmolassespotatoesfruitsotherTotalCereals % I quarter 2004 36,9 16,5 2,301,256,965% II quarter 2004 22,2 10,5 2,201,7 36,661% III quarter 2004 36,0 7,1 1,201,4 45,779% IV quarter 2004 44,7 4,2 3,101,0 53,184% Total 2004 r. 139,938,4 8,805,3192,473% I quarter 2005 55,8 5,7 3,002,3 66,884% II quarter 2005 47,9 6,9 2,3 0,22,8 60,280%

14. Tallin, 07.10.2005 Bioethanol production raw materials Cereals % 65% 61% 79% 84% 84% 80%

15. Tallin, 07.10.2005 Esters production Development stage 110 thousands tones / year Still more expensive than traditional liquid fuel Excise tax exemption for each litre of biocomponents added to fuel - 2 - 5% 1,5 zloty (~ 0,35 Euro/l) - 5 - 10% 1,8 zloty (~ 0,45 Euro/l) - > 10% 2,2 zloty (~ 0,55 Euro/l)

16. Tallin, 07.10.2005 Indicator of biofuels in transport according to energetic value YearPetrol thousand tonnes Diesel oil thousand tonnes Bioethanol thousand tonnes Indicator 20004 8412 34340,550,35% 20014 4842 56252,390,46% 20024 1092 94065,330,57% 20033 9413 60660,120,49% 20043 9533 88638,270,30%

17. Tallin, 07.10.2005 National Indicative target for biofuels in transport Nat. indicative target for 2005 0,5% Nat. indicative target for 2006 1,5% Plan to issue new Ordinances: - quality requirements for biocomponents - quality for esters that content 10 – 30%

18. Tallin, 07.10.2005 Conclusion Directive 2003/30/WE – chance for agriculture (raw materials production) Approximately area (if only) of cereals for bioethanol production: 2005 – 56 000 ha, 2006 – 167 000 ha, 2010 - 640 000 ha Approximately area (if only) of rape for esters production: 2005 – 34 000 ha, 2006 – 102 000 ha, 2010 - 340 000 ha

19. Tallin, 07.10.2005 Thank You for attention Contact: www.minrol.gov.pl Stanislaw.stelmachowski@minrol.gov.pl Jaroslaw.wesolowski@minrol.gov.pl