Science. Solutions. Service. ABENGOA BIOENERGY 1 Abengoa Bioenergy R&D.

1Science. Solutions. Service.

ABENGOA BIOENERGY

www.abengoabioenergy.com

Abengoa Bioenergy R&D


ABENGOA BIOENERGY

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ABENGOA BIOENERGY Table of Contents

1. Abengoa overview

2. Biofuels definition

2. European directive on biofuels

3. Review of EU Biofuels directive – Public consultation: eBio view


ABENGOA BIOENERGY

1. Abengoa Overview


ABENGOA BIOENERGY

Abengoa is a technological company that applies innovative solutions for sustainable development in infrastructures, environment and energy sectors. It is present in over 70 countries where it operates through its five Business Units: Solar, Bioenergy, Environmental Services, Information Technology, and Industrial Engineering and Construction.

BioenergyEnvironmental

Services Information Technology

ABENGOA

Engineering & IndustrialCostruction

Sustainable Development

Information and knowledge management

Creation of infraestructures

Solar BioenergyBioenergyEnvironmental

ServicesEnvironmental

Services Information Technology

ABENGOAABENGOA



Sustainable Development

Information and knowledge management

Creation of infraestructures

Solar

Abengoa overview

2005 2004 05 / 04 (%)

Sales (€M) 2,023.5 1,746.1 + 15.9

EBITDA (€M) 216.9 180.1 + 20.1

EBITDA / Sales (%) 10.7 10.3


ABENGOA BIOENERGY The Evolution of Abengoa Bioenergy

1995 2002 - 03

„ Abengoa identifies the need for a renewable alternative to transport sector energy needs

„ R&D award by the European Commission (€ 4.5 million)

„ R&D award by the U.S. DOE ($35.5 million)

1996 -2001

„ Construction of the two largest facilities in Europe

„ Acquisition of High Plains Corporation in the U.S.

2005

„ Construction of third facility in Spain

„ First sales of ethanol from Spain to other EU countries

„ Joint venture with Cepsa (Total) for ETBE facility

„ Expansion of U.S. plants (York, NE and Colwich, KS)

„ Construction of fourth facility in US

„ 40,000 tons award in France

„ 83 Ml of ethanol exportscontracted in Europe

„ R&D award by the U.S. DOE ($2.2 million)

2006

„Strategic Investment in O2Diesel

2004

„ Expansion of Portales, NM, and BG

„ Joint venture with Cepsa (Total)

„ 200 Ml of ethanol exportscontracted in Europe

200,000 t Biodiesel Plant

„ Start-up BCyL (200 Ml)

„+60,000 tons award in France


ABENGOA BIOENERGY

•La Coruña (190 Ml) • York, NE (210 Ml)

• Colwich, KS (95 Ml) •

Portales, NM (115 Ml) •

Ravenna, NE * (325 Ml)

• Cartagena (150 Ml)

•Salamanca (200 Ml) • AB France * (250 Ml)

Abengoa Bioenergy is the only international producer of ethanol

Production Facilities in EU Production Facilities in U.S.

EU (Ml) 2006 2007 2008Production 540 540 790Construction * 250 250

EU (Ml) 2006 2007 2008Production 540 540 790Construction * 250 250

US (Ml) 2006 2007 2008Production 420 745 745Construction 325

US (Ml) 2006 2007 2008Production 420 745 745Construction 325

YTD Production Capacity


ABENGOA BIOENERGY

1. Biofuels definition


ABENGOA BIOENERGYD

efin

itio

nD

efin

itio

n Biofuels are fuels that derives from biomass Liquid biofuels as bioethanol and biodiesel ares used mainly in self-propulsion vehicles reducing contaminant effects and favouring Kioto Protocol performance

Wh

y b

iofu

els

?W

hy b

iofu

els

?

Environmental protection

Energy dependence

New outles for agriculture

CO2 emissions (MT), EU25, 1990-2030 (projected)

0

200

400

600

800

1000

1200

1990

1995

2000

2005

2010

2015

2020

2025

2030

Year

Mt

IndustryResidentialTertiaryTransport

Share of domestic production in consumption of solid fuels, oil and natural gas, EU25, 1990-2030 (projected)

0%5%

10%15%20%25%30%35%40%45%50%

1990 1995 2000 2005 2010 2015 2020 2025 2030

Year

% share

Solid fuels

Oil

Natural gas


ABENGOA BIOENERGY

2. European directive on biofuels


ABENGOA BIOENERGY

EU biofuels directive (directive 2003/30):

• Directive sets reference values for the market share of biofuels (2% at the end of 2005 and 5.75% at the end of 2010)

• Member States must set national indicative targets

Market share of biofuels in EU member states, 2003 (energy content, %)

0

0

0

0

0

0

0

0

0

0

0

0,02

0,03

0,03

0,06

0,1

0,14

0,21

0,49

0,5

0,6

0,68

0,76

1,12

1,18

1,32

0 0,2 0,4 0,6 0,8 1 1,2 1,4

Denmark

Luxembourg

Ireland

Hungary

Slovenia

Greece

Cyprus

Belgium

Estonia

Lithuania

Portugal

Malta

Netherlands

UK

Austria

Finland

Slovak Republic

Latvia

Poland

Italy

EU

France

Spain

Czech Republic

Germany

Sweden

National indicative targets for biofuel market share in EU member states 2005 (%)

00

00,06

0,10,3

0,3

0,40,5

0,650,7

1

11,4

22

22

2

22

22

2,52,84

3

0 0,5 1 1,5 2 2,5 3 3,5

Denmark

LuxembourgNetherlands

Ireland

FinlandMalta

UKHungary

PolandSlovenia

Greece

CyprusItaly

EUBelgium

Estonia

LithuaniaPortugal

Slovak RepublicLatvia

FranceSpain

Germany

AustriaCzech Republic

Sweden

National indicative targets for biofuel market share in EU member states in 2010 (%)

2,53,5

45

5,55,755,755,755,755,755,755,755,755,755,755,755,75

0 1 2 3 4 5 6 7

ItalyUK

HungarySlovenia

Czech RepublicSweden SlovakiaPoland

NetherlandsLuxemburg

LithuaniaLatvia

GreeceGermany

FranceBelgiumAustria


ABENGOA BIOENERGY

3. Review of EU Biofuels directive – Public consultation: eBio view


ABENGOA BIOENERGY

EU biofuels directive review

A progress report on the directive is required by the end of 2006:- Consultation of the interested parties has run till 10th July

Key questions that have been addressed:

1) Is the objective of promoting biofuels still valid?2) Prospects for biofuels market share in 20103) Targets and support for biofuels4) Certification of biofuels 5) Beyond 20106) Technical issues in the development of biofuels


ABENGOA BIOENERGY

Is the objective of promoting biofuels still valid?

General thinking is the objectives are still valid. The most important reasons:

- Security of supply- Reduction of greenhaouse gas emissions

Other reasons:

- Creation of jobs - New market opportunities for the agricultural sector- Access to energy in developing countries- Technology development and technology transfer- Reduction of non-GHG emissions (ej sulphur)


ABENGOA BIOENERGY

Trends for biofuels market share in 2010

General thinking is the objective will not be achieved due to:

-Lack of policies to support increase of production capacities-Some Member states have not established the objectives or are inferior to 5,75% (UK)

Main factors favoring bioethanol:- Global transport fuel- Could be produced from virtually any organic material- Contains more energy than required to produce it- Reduce GHG emissions and other toxic as benzene, particulates…- Biodegradable in water and soil- Economic development in rural areas- Development of technologies- Savings from avoided oil imports - Potential to be used in compression engines- A sustainable fuel options – combustion engines to hydrogen fuel cells

Main barriers:- Opposition of oil refineries due to a growing dieselization of EU fleet which

lead to a discriminatory national road fuel duties- No information to the general public and failure on public policy makers to recognize the power of biofuels as alternative fuels to capture public interest

and support


ABENGOA BIOENERGY

Targets and support for biofuels

Looking towards 2010, is the present European system of indicative targets and support for biofules appropiated or need to be changed?

European system need to be changed in particular in issues regarding:- Compliance with the 2010 target- The need to promote public awareness and support- The need to promote energy crops- Measures to promote lignocellulosic ethanol

Commision proposed options for supporting biofuels. From eBio point of view the more advantageous are:

- The biofuel directive is amended to require MS to use biofuel obligations as a tool to national targets in both petrol and diesel

- Sanctions for no compliance- Targets at least maintained- Public awareness and promoting lignocellulosic ethanol

Obligation and/or detaxation


ABENGOA BIOENERGY

Certification of biofuels

Questions that have been addressed:

1) Should there be a system to ensure that biofules have been made from raw materials whose cultivation meets minimum environmental standards?

Yes, if can be demonstrated that certificates are appropriate for:- demonstrating compliance with these minimum environmental standards - are non discriminatory- are robust, non practicable and non-bureaucratic

2) Should a wider system of certificates be introduced, indicating the greenhouse gas and/or security of supply impact of each type of biofuel?

Yes, considering the same than previous. Use LCA analysis. Special credit to

lignocellulosic ethanol

3) Should there be a scheme to reward second-generation biofuels (made with processes that can accept a wider range of biomass) within biofuel support systems?

Yes, and in addition EU Commission must make a step-up in committing funds to assists the EU industry in R&D


ABENGOA BIOENERGY

Beyond 2010


1) Should the EU continue acting in favor of biofuels after 2010?Yes, if not investments will not be made

2) If the EU is to continue acting in favor of biofuels after 2010, should this action include or exclude the definition of a quantified target for biofuels?

Yes, for the following reasons:- Move towards a secure and environmentally sustainable transport system - Clarity to CAP- Investments of stakeholders- R&D performing- Auto manufactures investments


ABENGOA BIOENERGY


3) Should EU action include the following measures (which could be pursued without

defining a quantified target):

a) support for research, development and dissemination of good practice? Yesb) continued Community financial support for the supply of biofuels and theirfeedstocks? Yesc) continued scope for Member States to support biofuels through taxreductions/exemptions? Yes d) the labeling of all fuel to show the proportion of biofuel it contains? Yese) a campaign to inform consumers of the benefits of biofuels? Yes

4) If the EU is to define a quantified target for biofuels after 2010, what should it be? What year(s) should it relate to - 2015? 2020? Both?

Targets should be fixed for 2015, 2020 and 2030. Values of 10%, 15% and 25% respectively

5) Terms to be expressed the target for biofuels after 2010?

System of market share. In addition, a quantifiable GHG savings target

Beyond 2010 (continued)

Science. Solutions. Service. ABENGOA BIOENERGY 1 Abengoa Bioenergy R&D.

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Transcript of Science. Solutions. Service. ABENGOA BIOENERGY 1 Abengoa Bioenergy R&D.