Energy

Developments in the EU in the Advanced

Biofuels Sector since 1st EU-India Conference

Dr Kyriakos Maniatis

Energy Technologies Innovation & Clean Coal DG ENER, European Commission

12 March 2019 2nd EU-India Conference on Advanced Biofuels New Delhi

Energy

2

10%

14%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Advanced Biofuels

Annex IX Part A Unlimited but

min 3,5 % (double counted)

TARGETED POLICY ON PROMOTING RENEWABLES IN TRANSPORT

Multipliers

x4

x1.5

x1.2

x1.2

• Obligation of fuel suppliers achieving 14% target

• Indicative trajectory for advanced biofuels • Scope: biofuels, RES electricity, RFNBOs,

recycled carbon fuels • Contribution of conventional biofuels optional

and limited.

x2

Annex IX Part B Limited to

3.4% (double counted)

x4

x1.5

x1.2

x1.2

x2

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3

Promotion of advanced biofuels

• Specific sub-target with 3 milestones: 0.2% in 2022, 1% in 2025, and 3.5% by 2030.

• Double counting (optional).

• Feedstock based definition (all fuels produced from feedstocks listed in Part A of Annex IX).

• COM to regularly review possibility of addition of new feedstocks to Annex IX Part A and B (strict criteria).

Energy

4

Extension of scope to new fuels

• Renewable fuels of non-biological origin e.g. renewable hydrogen

• 70% thresholds for minimum GHG emission savings

• Rules for determining renewable energy share

• Specifics to be set out in delegated acts

• Recycled carbon fuels (fuels from non-recyclable plastic,

fuels from CO from steels mills, coke ovens, etc.)

• Definition ensuring compatibility with WFD

• GHG emission savings requirements and methodology to be

set out in delegated act

• Promotion is optional

• Do not count to overall RES target

Energy

5

All biofuels

MS specific limit for

food and feed crop-

based biofuels

High-ILUC risk

biofuels (contribution

first frozen and then

phased out)

Exemption for low-

ILUC risk biofuels

Illustration of the concept of low-ILUC risk biofuels

Energy

Delegated Act High/Low ILUC Risk Biofuels

Overview of the proposed criteria

HIGH-ILUC RISK BIOFUELS

DETERMINATION

• Worldwide assessment based on observed evidence, regardless of feedstock geographical origin

• Reaching a minimum increase of the global production area(100,000 ha, 1% annual increase)

• With a significant [10%] expansion on land with high carbon stock

Energy

Delegated Act High/Low ILUC Risk Biofuels

Overview of the proposed criteria

LOW-ILUC RISK BIOFUELS

CERTIFICATION

• Plantation-level certification for feedstocks coming from plantations fulfilling some strict criteria

• Compliance with the sustainability criteria

• Use of additional feedstock: increased productivity on used land, or using areas not previously used for crop cultivation

• Robust auditing

Energy

General Criteria

for low-ILUC

Fuels

Must meet all:

• Comply with sustainability and GHG emissions saving criteria

• Are produced from additional feedstock obtained through additionality measures (Art. 5)

• Evidence is dully collected & thoroughly documented

Additionality Measures for

low-ILUC Fuels

Must meet at least one of:

• They become financially attractive or face no barrier preventing their implementation

• They allow for cultivation of food & feed crops on unused, abandoned or severely degraded land

• Applied by small holders

Energy

NEXT STEPS

Work still to be done

• 4 Weeks public consultation ended on 8 March 2019

• The Commission in last procedures to adopt it & submit it to the Council & Parliament

• The Commission will ensure that all rules are in place for certifying low-ILUC before the transposition deadline of the RED II; i.e. 30 June 2021

• Compliance with these sustainability criteria can be verified by national or international voluntary schemes

• Currently there are no schemes that can provide low-ILUC certification

• Private schemes have started some pilot projects.

Energy

Biofuels Critical Issues: Cost

Sustainable biofuels depend on the cost of the raw material.

They will always remain more expensive than fossil fuels unless carbon tax will be adopted by the EU.

The cost of some of the fuels is very critical in some market sectors (e.g. kerosene for an airline, +/- 33%)

Energy

REDII proposes a CAP for High ILUC based biofuels and their subsequently gradual elimination by 2030.

This includes palm oil Hydrotreated Vegetable Oil (HVO) which at present is the cheapest resource to produce renewable diesel and bio-kerosene.

Possible international conflict between REDII and CORSIA developed by ICAO.

Biofuels Critical Issues: Sustainability

Sustainable Biofuels come at a premium and this has to be recognised

by all stakeholders

Energy

Initiatives by DG ENER: Support for the implementation of the ILUC-Policy The support, via a tender, will address the following 2 areas: Technical assistance on the implementation of RED II, Potential for mitigating ILUC impacts (desk assessment +

4 pilot studies, Far East, Latin America, Africa & EU)

The tender will be issued in April 2019

Energy

Initiatives by DG ENER: Standardisation work on biofuels with CEN Ongoing work for algae and algal products.

Ongoing work for biomethane injection in the grid and use in internal combustion engines (completed).

Ongoing work, the Commission may consider a mandate to CEN for Ethanol 20/25 blends in petrol (revision of EN 228).

Ongoing work, the Commission may consider a mandate to CEN for petrol/ethanol blends in diesel or ask parties (ACEA- CONCAWE) to continue R&D work for better understanding.

Inve

stm

ent

R&D phase in lab

R&D phase in pilot

R&D phase in demo

Competitive market price

First-of-a-kind-plant

2nd plant

3rd plant

4th plant

Technology Mountain of death: Positioning of EU technologies

From Demo to 1st of a kind Bio DME

From R&D to Demo Algae Bio-Kerosene

From Lab to Pilot Microbial

First of a kind SRF gasification to alcohols (Enerkem, Canada) Wood to biomethane (GoBiGas) Pyrolysis oils intermediate (BTG, Fortum) Wood to ethanol (ST1)

Commercialisation Lignocellulosic Ethanol (ENI-Versalis, Clariant, Chempolis, Praj ++) Hydrotreated fuels (NESTE, UPM, ENI, TOTAL, etc)

Biomethane via anaerobic Digestion

Energy

Thank you for your attention!

More info is available here:

http://ec.europa.eu/energy/renewables/bioenergy/sustainability_criteria_en.htm

http://ec.europa.eu/energy/renewables/studies/renewables_en.htm