Introduction to Biofuels

5th November 2008

Dr Mike Ahearne

Senior Technology Transfer

Consultant

Birmingham City University

Technology Innovation Centre

• Birmingham City University and Technology Innovation Centre

• Biofuels

• Market Drivers

• BCU Environmental Programmes

• R&D on biofuels for CHP

• Centre of Excellence for Heavy Diesel Emissions Engineering

• Discussion points

• Opportunities for Collaboration

Birmingham City University

Biofuels for Transport and CHP

• a company limited by guarantee.

• a subsidiary of Birmingham City University.

• 1,100 fulltime & 1,100 part time students on undergraduate and postgraduate degrees, professional qualifications and short courses.

• 297 employees.

• c£16m turnover, c£5m from commercial activity.

Birmingham City University

Technology Innovation Centre

Key Drivers for

Low and Zero Carbon Solutions

• Climate change (greenhouse gases)

• Energy supply

– Increasing demand for energy

– Economics - price increases

– Security of supply

• Corporate social responsibility and individual concern

• Legislation

– Renewable Transport Fuels Obligation (RTFO)

– Power Generation – Renewable Obligations Certificates (ROCs)

– Renewable Energy in New Developments - Merton Rule

Benefits of biofuels

• Climate Change: „lifecycle‟ emissions of CO2 reduced

• Fuel Security Improved

• Potential to Combat Rising Fuel Prices

• Land Use & Rural Economy – opportunities for new growth business growing crops for biomass

• New business opportunities – supply chain from crop to production and distribution of biofuels

• New technology: Research & Development opportunities

The impact of transport on

Greenhouse Gas (GHG) Emissions

• Transport energy demand is projected to double by 2050

• Transport accounts for over 21% of CO2 emissions in UK

• A number of technologies can help reduce the impact of transport:

– Improved vehicle efficiency

– Biofuels

– Demand reduction

UK Government Policy and

Legislation Drivers

Transport >21% of UK carbon emissions

History of policy and targets

• Transport fuel duty rebate of 20p/litre for biofuels introduced in 2002

• Target set for 2% biofuel usage by 2005

• Target of 5.75% by 2010

But it was not working! (compare with success in Germany)

• Rebate too low to encourage more than manufacture of biodiesel from waste oil and imports of bioethanol

• Rebate only guaranteed for 3 years, not long enough for serious investment decisions

• Sales have been through the independent sector

Policy and

Legislation Drivers

The Stern Report – 30th October 2006

• The scientific evidence is now overwhelming: climate change presents very serious global risks, and it demands an urgent global response.

UN Intergovernmental Panel on Climate Change – February 2007

• Consensus of 2,500 scientists from 113 countries that global warming is real and is caused by human activity

The King Review - October 2007

• Set up by Chancellor of the Exchequer in Budget 2007

• Challenge across all sectors to reduce total emissions by 25% by 2050

• Requires road transport to make urgent and substantial progress including the deployment of biofuels

The Renewable Transport Fuel Obligation Becomes Law – April 2008

The Galagher Review – July 2008

Department for Transport Consultation On the RTFO – October 2008

Renewable Transport Fuels Obligation (RTFO)

• Introduction in April 2008 along with extension of the fuel duty derogation

• Targets will ramp up to 5% in 2010/11– 2.5% 2008/09

– 3.75% 2009/10

– 5% 2010/11

• 20p/litre fuel duty derogation continues

• 15p/litre penalty for non compliance from April 2008

• Sustainability targets (30% of feedstocks to meet environmental sustainability standards in 2008-9)

– Lack of established standards currently available

• Compliance through Renewable Transport Fuel Certificates (RTFCs)

UK Government Policy and

Legislation Drivers

The Galagher Review – July 2008

• biofuels can contribute greenhouse gas savings from transport, but only where significant emissions from landuse change are avoided and appropriate production technologies are employed;

• demand for food, animal feed and bioenergy is rising and creating additional pressure on land and contributing to some extent to rising food prices. Current policies do not ensure that additional production moves to suitable areas;

• there is a risk that current biofuel policies will lead to a net increase in greenhouse gas emissions and impact upon biodiversity as a result of the displacement of existing agricultural production;

• the introduction of biofuels in both the UK and EU should be slowed until adequate controls to address displacement effects are implemented and demonstrated to be effective; and

• in the UK, the rate of increase in the UK’s RTFO should be slowed to 0.5 per cent per annum so that the RTFO reaches 5 per cent in 2013/14 rather than 2010/11 as currently planned.

UK Government Policy and

Legislation Drivers

Department for Transport Consultation On the RTFO

15th October 2008

Option 1: leave obligation levels untouched

Option 2: Freeze the obligation at 2.5%

Option 3: Implement the Gallagher recommendation

Renewables Obligation for Electricity (ROCs)

10% of UK electricity from renewable energy sources by 2010

• Compliance demonstrated by tradable certificates known as

Renewable Obligation Certificates (ROCs)

• ROC trading is stimulating the market for renewable power

generation

• ROCs for renewable CHP to double in 2009

CHP plays a key role in

achieving Government targets

• Government target is 10,000

MWe by 2010

• Over 20% of Kyoto Carbon

target

• Where applicable, CHP is the

single biggest measure for

reducing buildings related

CO2emissions

• CHP using biofuels qualifies

for ROCs – set to double in

value in 2009

What does all this mean for the

Supply Chain

• The EU is committed to reducing the environmental impact of transport fuels and fuels for power generation

• The RTFO was introduced in the UK in 2008

• ROCs for CHP to double in 2009

• The legislation creates a large biofuels market

• The market provides challenges and opportunities in the West Midlands for the rural communities and for industrial supply chain:– New crops

– Opportunities for local production

– New fuel standards for different blends will be needed

– Refuelling and storage technologies will need to cope with a greater variety of fuels

– Engines and components will need further development

Legislation Creates a c£3 Billion Market

The RTFO will drive demand for biofuels for transport.

To meet UK government targets for biofuels by 2010

• Biodiesel sales c£1000 million

• Bioethanol sales c£1000 million

ROCs for Power Generation creates demand for renewable fuels

• Biofuels for heat and power c£1000 million

BCU Environmental Programmes

EnviroINNOVATE – March 2009

First Programme Completed in March 2006, won EU Regiostars Award

Led to Carbon Trust Funded Research Programme – Completed September 2007

R&D on the use of biofuels blends for combined heat and power (CHP)

In partnership with three commercial companies.

Developed BCU Expertise in:

• Biofuels production

• Engine performance testing with biofuels blends

• Power generation and ROCs

The Environmental Business Opportunities Programme (EBOP) – Completed July 2008

Created Biofuels Special Interest Group

Biofuels for Transport, Heating and Power

• Business/markets

• Vehicle emission testing – Worcestershire County Council

• R&D on Biofuel blends for building and process heating

• Support to SMEs for overseas visits to biofuel production plants

• Renewable Transport Fuels Obligation (RTFO)

• Renewable Obligation Certificates (ROCs)

• Presentations at seminars and conferences

• Biomass testing, using the environmental lab

• Seminars (4 per year) – Established a UK wide reputation for knowledge transfer

• Member of the House Of Commons All Party Renewable Transport Group

• Member of the Oxford University Environmental KTN, Technical Advisory Group

R&D on the use of biofuels for combined heat and power

(CHP)

Biofuel produced from used cooking oil

In partnership with three commercial companies

Developed BCU expertise in:

• Biofuels production

• Engine performance testing with biofuels

• Power generation and ROCs

Carbon Trust Funded Research

on Biofuel CHP

Performance Tests

Fuel Sprays at 4500 FPS

Fuel Sprays at 9000 FPS

Fuel spray visualisation is able to

provide information about droplet

formation and penetration

characteristics that are important

for combustion performance

CO2 Audit

UK Waste Vegetable Oil - CO2 Savings

(tonnes/year)

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2000 2005 2010 2015 2020 2025

100 % Transport

100 % CHP

80% Transport 20 %

CHP

50 % - 50%

20% Transport 80%

CHP

Waste Vegetable UK Oil Supply Projections

(tonnes/year)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2000 2005 2010 2015 2020 2025

Projected collection of used

cooking oil within the UK (to

2020)

Estimated CO2 savings from

piston engine utilisation of UCO

(static CHP and transportation)

Dissemination

“Small Scale Combined Heat and

Power Generation(CHP) using

Locally Collected Waste Vegetable

Oil in Compression Ignition

Engines”,

Proceedings Bioenergy 2007 3rd

International Bioenergy

Conference and Exhibition,

3rd-6th September 2007,

Jyväskylä, Finland .

Biofuels Special Interest Group

Biofuels for Transport, Heating and Power

• Business/markets

• Environment Agency requirements (IPPC)

• By-products/waste management e.g. glycerol issues

• Vehicle emission testing – Worcestershire County Council

• R&D on Biofuel blends for building and process heating

• Support for overseas visits to biofuel production plants

• Renewable Transport Fuels Obligation (RTFO)

• Renewable Obligation Certificates (ROCs)

• Biomass testing, using the environmental lab

Knowledge Transfer and Reputation

• Seminars (3 per year)

• Networking

• Knowledge Transfer partnerships (KTPs) – Armstrong Integrated Systems

• Bids – IEC SME

• Member of the House Of Commons All Party Renewable Transport Group

• Member of the Oxford University Environmental KTN, Technical Advisory Group

Biofuels Special Interest Group Participants

Larger Organisations• Birmingham City Council

• Worcestershire County Council

• Staffordshire County Council

• Wardell Armstrong

• Balfour Beatty Power Networks

• Grace Davidson

• Harper Adams University College

• Aston University

• Advantage West Midlands/Staffordshire University

• Nu-way Ltd

• Riello Burners Ltd

• CLA West Midlands

SMEs• ASR Electrical

• Associated Biodiesel

• BHR Group

• Black Country Housing

• Ecotec Resources

• Frome Valley Biofuels

• GB Waste Care

• Green Biodiesel

• Greener Fuels

• Harvest Biofuels

• Longma Biofuels

• Marches Energy Agency

• Sunrise Biodiesel

• Rix Biodiesel

• Ledbury Tanks

Opportunities for Collaborative

Projects

A new research facility for heavy

diesel powertrain development and

emissions analysis has been

installed and is commissioned.

The facility is available for

collaborative projects on biofuels for

power and transport

Intelligent Energy Europe (IEE)

Strategy on Biofuels for European Regions

• c3.0 Million Euro Bid

• 12 European Partners

• Bid led by the Province of Reggio Emilia, Italy

• BCU is a major partner and work-stream leader

• Project Goal

– To develop an integrated and coherent approach and to disseminate best practices, experience and knowledge from projects utilising, biogas. bio-ethanol and biodiesel throughout the European Union

European Bioenergy Research Institute

(EBRI)

• Launched at Aston University at a Conference on 30th

June and 1st July 2008

• Establishes a network of potential partners covering all

aspects of bioenergy

• Relationships can be short or long term depending on

specific projects

• Network is open to all willing to participate in funded

research or seeking cooperation

• Birmingham City University is participating in EBRI and

developing proposals for R&D on 2nd Generation

Biofuels for CHP

Some Interesting Points

for Discussion

• Environmental Impact of growing crops for biofuel production

• World trading impact on local production

• Food vs fuel issue

• Need to develop new standards for higher blends

• Vehicle warranties

• Emissions legislation

Not all biofuels have the same

carbon reduction credentials

• Life cycle analysis will take

account of negative

environmental impacts

when evaluating RTFCs

CO2 Balance of BiofuelsSource – Reinhardt 5th European Motor Fuels Forum, Newcastle, Sept 2006

‘Splash and Dash’

(B99 Scam)

• US government offers subsidy for each gallon of B99

• Companies are setting up in the US and importing and

blending biofuel to B99

• US B99 is undercutting EU companies

• Result: EU companies are cutting production or getting out of

the market

Food vs Fuel

• EU Commission model shows that world biofuel production currently has a small effect on food prices

• Media is turning popular opinion against biofuels

• Other vested interests are supporting the food vs fuel issue

• Gallagher review has suggested a slowing down of the implementation of biofuels blends

• Government has initiated a consultation on the future of biofuels targets for the UK

• Need for independent scientific evaluation of the true scale of biofuel impact on food prices

Biodiesel Standards

• B5 (5% biodiesel)– EN 590/10

– Blend component EN 14214

• B10…B99– No standards

• B100 public Filling Stations– EN 14214/10

– Plus additional requirements:

• Oxidation stabiliser

• Limited fatty acid profile

• Registered trace back to suppliers

• B100 Own (fleet) filling stations– EN 14214/10

Biodiesel Requirements for

Warranties

• B5 - OK

• B10 – needs co-operation of all parties

– Approval of the fuel injection equipment manufacturers

– New specification within CEN for B10

– Refuelling technology specifications e.g. rubber components

• B100

– Current non compliance with diesel particulate filters

– Review of existing B100 specification

– Refuelling technology specifications e.g. rubber components

Biodiesel

Fulfilment of emission requirements

• B5 (component in fossil diesel: EN 590)

– Yes

• B10 – B30

– Euro III and Euro V ?

• B100

– Cars: Euro V not possible without after treatment system

– HGVs Yes

Bio-ethanol: Issues

• E10

– Automotive industry is open for 10% blending provided that all petrol

(gasoline) in EU is blended to 5%

– Needs co-operation of all parties e.g. New specification within CEN for

E10

• E85

– The industry is not prepared to introduce a new distribution system in

Europe for a relatively small market

– The use of higher percentage blends such as E85 in combination with

flexi-fuel cars are being rejected by most manufacturers due to the

relatively small amount of ethanol in use

Discussion Points

• Land Use & Rural Economy – opportunities for new growth business growing crops for biomass

• New business opportunities – supply chain from crop to production and distribution of biofuels

• New technology: Research & Development opportunities

• Need to develop new standards for higher blends

• Need to conduct R&D on effect of existing biofuels blends and new second generation fuels and blends on engines and their emissions

• R&D on ancillary equipment e.g. refuelling technology

Opportunities for collaborative

R&D on biofuels for CHP and

Transport

Birmingham City University‟s new

faculty of Technology Innovation

and Development has the facilities

and expertise to undertake R&D

on biofuels for power and

transport.

The university welcomes

opportunities for collaborative

research and is currently working

with European partners on bids for

funding of R&D biofuel projects.