New reports point to need for long-term biofuels policy in Europe

Wed 27 November 2013 View all news

A new report commissioned by a group of leading motor and fuel companies finds that biofuels could contribute between 12 and 15% of energy for the transport sector, representing overall GHG savings of around 8 to 11%. This report, by consultancy E4tech, and another recently published study by CE Delft/TNO both conclude that clarity on the future of biofuels policy is urgently needed. 
 
The report from sustainable energy consultancy E4tech, has outlined what it says is the first harmonised 'Auto-Fuel Biofuels Roadmap' for the EU to 2030. 
 
The Auto-Fuel Coalition -  comprised of Daimler, Honda, Neste Oil, OMV, Shell and Volkswagen - says that liquid fuels will remain important to the long-term energy mix and that biofuels and vehicle efficiency will be essential if the European transport sector is to cut greenhouse gas emissions and meet its decarbonisation targets.
 
The Roadmap examines in detail what the fuels industry could achieve in terms of sustainable biofuels supply (including advanced biofuels) and how this could be integrated into the vehicle fleet by 2030. It also highlights that advanced biofuels could grow to at least 20% of the biofuels market in Europe in 2030 if the right policy framework is put in place.
 
The report says that a range of biofuels could deliver:
 
 - At least 8% of the EU’s 2020 10% Renewable Fuels target 
 - 4% of GHG emissions savings required to meet the 6% Fuel Quality Directive target in 2020 
 - 12-15% of energy to the transport sector by 2030, representing overall greenhouse gas emission savings of   around 8%. 
 - Advanced biofuels, which could grow to at least 20% of the biofuels market in Europe in 2030 if the 
right policy incentives are put in place.
 
Commenting on the report, Matthew Tipper, Vice President Alternative Energies at Shell, said: “Shell believes this report accurately demonstrates the opportunities and challenges for biofuels in helping Europe decarbonise its transport sector.
 
"However, there is still not a policy framework in place to drive biofuels investments in the EU beyond 2020. While we support the European Commission’s push towards advanced biofuels, it is critical that Europe develops a framework within its 2030 climate and energy proposals that provides a level of incentives which stimulate the necessary investments in this important endeavour.”
 
At present, the report says, the lack of a 2030 policy for biofuels in Europe, is holding back investments, including in advanced biofuels. Furthermore, the lack of coherence between vehicle and fuel regulations and in the implementation of the Renewable Energy Directive could lead to a fragmented approach across the EU resulting in higher costs and confusion for drivers. 
 
Prof Dr-Ing Wolfgang Steiger, Director Future Technologies at Volkswagen Group, said: “It’s clear that  future transport must fulfil customer demands as well as sustainability criteria. For maximum efficiencies in this sector, powertrains and used energy should be developed in parallel. To achieve this, we need harmonised standards and qualities under a reliable regulatory framework. 
 
"The Auto-Fuel biofuel roadmap sets out pathways for Europe to reach its ambitious targets beyond 2020. This is an approach we in the consortium fully support.” 
 
A new report from CE Delft and TNO: ‘Bringing biofuels to the market’ is a "handbook" for biofuels - a comprehensive overview of different types of biofuels, and the technical options that exist to market the biofuels volumes expected to be consumed in the EU Member States in 2020. 
 
The study concludes that by fully utilizing the current blending limits of biodiesel (FAME) in diesel (B7) and bioethanol in petrol (E10) up to 7.9% share of biofuels in the EU transport sector can be technically reached by 2020. 
 
Increasing use of advanced biofuels, particularly blending of fungible fuels into diesel (eg. HVO and BTL) and the use of higher ethanol blends in compatible vehicles (e.g. E20), can play an important role. Also, the increased use of biomethane (in particular bio-CNG) and higher blends of biodiesel (FAME) can also contribute.
 
However, the report says, it is essential for both governments and industry to decide within 1 or 2 years on the way ahead and take necessary actions covering both, the fuels and the vehicles, to ensure their effective and timely implementation. Even though a range of technical options exist, many of these require considerable time and effort to implement and reach their potential.
 
CE Delft's 210-page report says that large scale implementation of the options beyond current blending limits requires new, targeted policy measures, in many cases complemented by new fuel and vehicle standards, adaptation of engines and fuel distribution etc.
 
Marketing policies for these vehicles, fuels and blends are also likely will also become more important, the report says. Each EU Member State may develop its own strategy tailored to its market and policy objectives, but the EU should play a crucial facilitating role in these developments.

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