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Germany massively increases biofuels targets to kickstart next generation fuels: 10% in 2010, 20% in 2020
The German government has announced [*German] its new Biofuels Roadmap, with which it will massively increase the country's biofuels target, doubling it from 5% by 2010 to 10% by that year, and to 20% by 2020. This way it doubles the EU's biofuel targets (which require 10% of all fuels to be biofuels by 2020). Europe's largest fuel consumer agreed on the measures after consultation with the agriculture, automotive and oil industry. The move is seen as a strategy to speed up the development of next generation biofuels. Germany is at the forefront of developing biomass-to-liquids fuels and new types of biodiesel based on hydrogenating plant oils. The country's land devoted to dedicated energy crops will be doubled and possibly tripled.
Launching the Roadmap Biokraftstoffe [*German], Minister of the Environment Sigmar Gabriel and Minister of Agriculture Horst Seehofer stressed that only biofuels will be taken into account that are sustainably produced and reduce greenhouse gas emissions considerably.
The new, ambitious targets for biofuels look as follows:
energy :: sustainability :: biofuels :: ethanol :: biodiesel :: biobutanol :: ETBE :: biogas :: cellulosic ethanol :: biomass-to-liquids :: synthetic biofuels :: biomass :: energy crops :: Germany :: EU ::
Sustainability and certification
A system will be implemented that computes the total greenhouse gas emission profile of imported biomass. The Environment Ministry says only those biofuel feedstocks will be allowed that result in a net reduction of emissions. The Germany government is working on the development of national, EU-wide and international certification mechanisms and sustainability criteria to be applied to international biomass trade.
Taxation
When it comes to biofuels taxation, Seehofer said he is trying to scale back and halt further taxes for biodiesel, which recently lost its tax-free status. Because of the new tax, German biodiesel producers are closing or stopping production. Industry groups estimate Germany's once-booming biodiesel industry is producing at about 20 percent of capacity following the government's taxing of green fuels. A second round of tax increases on biodiesel is on the statute book and scheduled to be imposed in January 2008. The government has so far refused industry calls to reconsider this.
Asked at the presentation in Berlin about the planned tax rise on biodiesel, Agriculture Minister Horst Seehofer said this was still being discussed. "I am fighting to keep the competitiveness of biofuels," Seehofer said. "There is still no agreement." But a finance ministry spokesman said the tax rise would go ahead. A new report on biofuels to be presented by the government would show subsidies and special tax breaks were too high, the spokesman said.
Techno-neutrality and costs
Reacting to the news of the increased biofuels targets, Matthias Wissmann, chairman of the German Federation of the Automobile Industry, said: "we have set in motion a transition towards second-generation biofuels, which are virtually carbon-neutral and to not have any effect on food prices." The high quality standard of synthetic biofuels gives it a competitive edge over first generation fuels, for which standards may be increased.
The managing director of Germany's Mineral Oil Trade Association, Klaus Picard, said he was pleased to note that the German government has remained technology-neutral and does not choose one production process over another to reach the goals. This allows producers to compete and to reach the targets with the smalles cost load for consumers.
However, Environment Minister Gabriel stressed that that the massive increase in biofuels does not relieve the vehicle industry of its obligation to build more efficient cars. Improved engines and more efficient vehicles is a key part of transiting to a low-carbon economy, he said.
Minister Seehofer pointed out that the use of biofuels in the past year had already reduced Germany's carbon dioxide emissions by 12,7 million tons.
The organisations that participated in the consultation on biofuels that led to the new targets include the following: Verband der Automobilindustrie, Mineralölwirtschaftverband, Deutscher Bauernverband, Interessengemeinschaft mittelständischer Mineralölverbände and the Verband Deutscher Biodieselhersteller.
References:
Bundesministerium fur Ernährung, Landwirtschaft und Verbraucherschutz: Roadmap Biokraftstoffe - Gemeinsame Strategie von BMU/BMELV, VDA, MWV, IG, VDB und DBV - November 21, 2007.
Bundesministerium fur Ernährung, Landwirtschaft und Verbraucherschutz: Roadmap Biokraftstoffe: Daten und Fakten [Numbers and Facts] - November 21, 2007.
Launching the Roadmap Biokraftstoffe [*German], Minister of the Environment Sigmar Gabriel and Minister of Agriculture Horst Seehofer stressed that only biofuels will be taken into account that are sustainably produced and reduce greenhouse gas emissions considerably.
The new, ambitious targets for biofuels look as follows:
- For bioethanol, the target is now set at a 10% blend into gasoline by 2010, which poses no problem for use in current gasoline engines. The addition of bio-based Ethyl Tertiary Butyl Ether (ETBE) to gasoline will be promoted as well. E10 will become the new German norm and will be made available to consumers in at least 1,000 stations by the year 2016.
- For diesel, a mixture of 7% biodiesel and 3% hydrogenated vegetable oils by 2010 is set as the new goal. Hydrogenated plant oils are also known as 'green diesel', or 'H-Bio', and draw upon advanced bioconversion methods found in the petroleum industry.
- Between 2010 and 2020, the Agriculture and Environment Ministeries want the increasing shares - to reach 20% of all transport fuels by 2020 - to come from synthetic biofuels. Such biomass-to-liquids (BTL) fuels are obtained by gasifying biomass and then liquefying it via the Fischer-Tropsch process, a technique originally developed in Germany. This allows the use of cellulosic biomass from dedicated energy crops and from agricultural, industrial and forestry waste.
- Cellulosic alcohols (ethanol, biobutanol) obtained from the biochemical transformation of biomass will be promoted over the same period.
- Biomethane for transport will also be encouraged. The fuel is obtained after upgrading biogas made from the anaerobic digestion of biomass.
energy :: sustainability :: biofuels :: ethanol :: biodiesel :: biobutanol :: ETBE :: biogas :: cellulosic ethanol :: biomass-to-liquids :: synthetic biofuels :: biomass :: energy crops :: Germany :: EU :: Sustainability and certification
A system will be implemented that computes the total greenhouse gas emission profile of imported biomass. The Environment Ministry says only those biofuel feedstocks will be allowed that result in a net reduction of emissions. The Germany government is working on the development of national, EU-wide and international certification mechanisms and sustainability criteria to be applied to international biomass trade.
Taxation
When it comes to biofuels taxation, Seehofer said he is trying to scale back and halt further taxes for biodiesel, which recently lost its tax-free status. Because of the new tax, German biodiesel producers are closing or stopping production. Industry groups estimate Germany's once-booming biodiesel industry is producing at about 20 percent of capacity following the government's taxing of green fuels. A second round of tax increases on biodiesel is on the statute book and scheduled to be imposed in January 2008. The government has so far refused industry calls to reconsider this.
Asked at the presentation in Berlin about the planned tax rise on biodiesel, Agriculture Minister Horst Seehofer said this was still being discussed. "I am fighting to keep the competitiveness of biofuels," Seehofer said. "There is still no agreement." But a finance ministry spokesman said the tax rise would go ahead. A new report on biofuels to be presented by the government would show subsidies and special tax breaks were too high, the spokesman said.
Techno-neutrality and costs
Reacting to the news of the increased biofuels targets, Matthias Wissmann, chairman of the German Federation of the Automobile Industry, said: "we have set in motion a transition towards second-generation biofuels, which are virtually carbon-neutral and to not have any effect on food prices." The high quality standard of synthetic biofuels gives it a competitive edge over first generation fuels, for which standards may be increased.
The managing director of Germany's Mineral Oil Trade Association, Klaus Picard, said he was pleased to note that the German government has remained technology-neutral and does not choose one production process over another to reach the goals. This allows producers to compete and to reach the targets with the smalles cost load for consumers.
However, Environment Minister Gabriel stressed that that the massive increase in biofuels does not relieve the vehicle industry of its obligation to build more efficient cars. Improved engines and more efficient vehicles is a key part of transiting to a low-carbon economy, he said.
Minister Seehofer pointed out that the use of biofuels in the past year had already reduced Germany's carbon dioxide emissions by 12,7 million tons.
The organisations that participated in the consultation on biofuels that led to the new targets include the following: Verband der Automobilindustrie, Mineralölwirtschaftverband, Deutscher Bauernverband, Interessengemeinschaft mittelständischer Mineralölverbände and the Verband Deutscher Biodieselhersteller.
References:
Bundesministerium fur Ernährung, Landwirtschaft und Verbraucherschutz: Roadmap Biokraftstoffe - Gemeinsame Strategie von BMU/BMELV, VDA, MWV, IG, VDB und DBV - November 21, 2007.
Bundesministerium fur Ernährung, Landwirtschaft und Verbraucherschutz: Roadmap Biokraftstoffe: Daten und Fakten [Numbers and Facts] - November 21, 2007.
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