Climate-neutral fuels in the Netherlands;an report from the GAVE-programme

Eric van den HeuvelProgramme Advisor

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Content of presentation

• What is the GAVE-programme– Which fuels– Projects

• Biofuel policies• Future outlook

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1998: GAVE - New focus onclimate-neutral gaseous and liquid fuels

• 6% CO2 reduction for Kyoto only a first step

(corresponding to 38 Mton CO2 eq./jr)

• Transition process from fossil to climate-neutral• Not only renewable electricity

Also include transport and natural gas markets(account for half of the CO2 emissions)

• First thoughts: methanol and hydrogen

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2000: Attractiveclimate-neutral fuels

• Stakeholder-involved inventory provide more than 20 fuel chains

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2000: Attractiveclimate-neutral fuels

CO2 reduction potential in kton per year

CO

2 r

ed

uct

ion

co

sts

in N

LG

per

to

n

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

Electrolytic hydrogen Biomass hydrogen

Natural gas H2 + CO2 seq.

Biomass MeOH + FCV

Grid electric vehicles

20.000 40.000 60.000 80.0000

Transportation fuel chains

Natural Gas Replacementfuel chains

500

Cellulosic ethanol CBP

Natural gas H2 + CO2 seq.

Biomass SNG Biomass hydrogen

Cellulosic ethanol SSF Biomass DME

Biomass FT Diesel

Biomass methanol

Biomass compres. SNG

Biomass FT Gasoline

HTU Diesel

Pyrolysis oil diesel

Electrolytic hydrogen

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2000: Attractiveclimate-neutral fuels

20 40 60 80 100 120

CO2 reduction potential In the Netherlands in Mton per year

Co

st o

f C

O2 r

ed

uct

ion

in N

LG

per

to

n

500

250

Elektrolytisch hydrogen

Cellulosic ethanol CBP

Natural gas H2 + CO2 seq.

Biomass SNG

Cellulosic ethanol SSF

Biomass DME

Biomass FT Diesel

I

IIIII

0

I Ethanol cluster

II Diesel cluster*

III Hydrogen cluster

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2000: Attractiveclimate-neutral fuels

• Stakeholder-involved inventory provide more than 20 fuel chains

• With more than 80% CO2-reduction potential:climate-neutral fuels

• Clear interest of stakeholders to start formation of alliances and develop projects

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2001: Support programme for climate-neutral fuels

• Climate Neutral transport Fuels from Biomass, the BIG-FiT concept (SDE, Shell, Rabobank, Volkswagen, ECN, Ecofys)

• Sustainable Gas from Biomass (Gastec, Remu, Eneco)

• Large-scale production of Synthetic Natural Gas (TNO-MEP, NUON)

• From biomass to methanol to ‘biomobile’ (HGP, Methanor, HoekLoos)

• Hydrogen as fuel for local transport and micro-chp (ECN, Eneco, e.on Benelux, Port of Rotterdam, HGP , HoekLoos, Tebodin)

• Transport fuels via Hydro Thermal Upgrading of biomassa (Biofuel BV, Waste managemen Amsterdam, TNO, Van der Sluijs handelsmij, Shell)

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2002 and 2003: Support programme for climate-neutral fuels

• Feasibility studies and alliance formation were executed• Preparation of demonstration projects• No demonstration projects were submitted:

– The post-Kyoto focus (>2010) conflicted with the announced EC Biofuel Directive (targets for 2005 and 2010)

– The absence of a fiscal support scheme in place– The design of various Transition Projects (a.o of the Ministry of

Economic Affairs to reach a Sustainable Energy Supply System) created a new focus for stakeholders

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2004:Focus on programme support

• Assist Ministries and Stakeholders with implementation of the EC Biofuel Directive

• Maintain focus on climate neutral fuels• Inform about international developments

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Biofuel Policies

• In 2003: “Biofuels in the Dutch Market - Fact finding Study”

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Biofuel Policies

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15

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Bio

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biof

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Demand for biofuels

C sugar

Feed grain

Additional energy crops

FBI: C starch

FBI; vegetable fat

FBI; animal fat

FBI; potato waste

FBI; sugarbeet molassesBiodiesel/ Bio-ME BioethanolTotal biofuels

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Biofuel Policies

• In 2003: “Biofuels in the Dutch Market - Fact finding Study”• Sufficient biomass resources to fulfil the 2005 target but not

the 2010 target• import of fuels is a serious possibility

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Biofuel Policies

• White Paper on Transport Emissions (2004):

“government will do all it can to support the introduction of biofuels: 2% by 2006”

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Biofuel Policies

• Looking for a smart implementation plan:– Stimulate development of next generation fuels

– Increasing demands on CO2 performance

– No negative side effects: deforestation or undesirable competition with food production in 3e world countries

• Plans for monitoring and certification

• Initiate an EU discussion on CO2-based support for biofuels

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Future Outlook

• Industrial plans for plant oil, biodiesel, ethanol (incl. cellulose-rich resources) and FT

• Syngas central in long term national R&D Strategy• Biofuels theme in industry-led transition platforms:

– Platform Alternative Motor Fuels– Platform New Gas– Platform Renewable Resources

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Thank you for your attention