[USDA Global Conference on Agricultural Biofuels: Research and
Economics]{.smallcaps}

**international perspectives**

**session a**

**[Bio-diesel Research and Production in Kenya]{.smallcaps}**

**Keriko**, J. M.; Shitanda, D.; Ojijo, N.; Odhiambo, P. O.; Muthuuri,
C. W.; Muturi, W.; Ochora, J.

Institute of Energy and Environmental Technology (IEET), Jomo Kenyatta
University of Agriculture and Technology (JKUAT), Nairobi, Kenya.

**Abstract**

Bio-diesel use in Kenya is not widespread but there is a lot of
potential for its production from locally grown crops. It is possible to
obtain bio-diesel from virtually any oliferous vegetation, including
rape (Canola), soya beans, sunflower, peanut, cotton, avocado, *Melia
volkensii, Croton megalocarpas, Jatropha curcas*, Castor (*Riccinus
communis* L.) beans, coconut and Palm plants, in addition to animal
fats. It may also be made from waste vegetable oils and fats from fish,
chips or fried chicken.

In Kenya, research geared toward the production of bio-diesel is now
gaining momentum, with researchers getting great support from the
government. Research and productions of bio-fuels is currently being
carried out by my team at JKUAT from such plants as:

-   Yellow Oleander (*Thevetia peruviana)* seeds.

-   *Croton megalocarpus*

-   *Jatropha curcas*

-   Castor oil (*Riccinus communis* L.)

-   Grain amaranthus

Thus, at JKUAT there is great emphasis in the development of bio-diesel.
A trial tractor is currently running on a 20% blend of Yellow oleander
and *Croton megalocarpas* seeds oil in diesel as a source of energy.
Rehabilitation and agronomical work on Yellow oleander crop is going on
simultaneously in the field.

**Introduction**

Development of bio-fuels in Kenya from locally grown plants has recently
received high-level government attention as a result of the continued
haphazard increases in the cost of fossil fuels which seems to be
heading to unbelievable higher prices. This attention resulted in the
formation of the National Biofuel Stearing Committee under the Director
of renewable energy in the Ministry of Energy. The committee, which is
composed of government officials, the stakeholders in research
institutions, the private sector and some investors, is currently
deliberating on the framework of policy issues before moving into other
important matter concerning bio-fuel development in the country. While
this is going on, researchers in universities and other Institutions are
busy putting things together in an effort to be at par with the current
global focus on renewable and environmentally sound energy sources.

Our bio-fuel research team at JKUAT has not been left behind. Our
findings indicates the existence of a lot of potential for the
production of high quality bio-diesel from locally grown crops in line
with the understanding that "it is possible to obtain bio-diesel from
virtually any oliferous vegetation" including; rape seeds, soya beans,
sunflower, peanut, cotton, avocado, *Melia volkensii, Croton
megalocarpas, Jatropha curcas*, Castor (*Riccinus communis* L.) seeds,
Coconut and Palm plants. Bio-diesel may also be obtained from animal and
fish oils, from waste vegetable oils and chips or fried chicken oils.

**Current Bio-diesel Research at JKUAT**

The current research work at JKUAT is mainly based on the collection,
de-hulling and oil extraction (both chemical and mechanical) from dry
seed using a dehuller and an extruder both fabricated at JKUAT.

**Seed dehuller**

![](media/image1.jpeg){width="5.002083333333333in"
height="2.5833333333333335in"}

**Oil extractor**

![](media/image2.jpeg){width="4.959722222222222in"
height="2.7916666666666665in"}

The following plants are under investigation as potential sources of
high quality bio-diesel:

**Castor oil** (*Riccinus communis* L.) seeds

-   Local name: *Mbariki*

-   A member of the Euphrobiaceae family

-   A native of the Ethiopian region of tropical Africa.

-   A very common plant along stream banks, river beds, bottom lands,
    hot areas with well drained soils with sufficient nutrients to
    sustain its vigorous growth.

-   Its spiny seed pod or capsule is composed of three sections which
    split apart at maturity.

-   Each section (carpel) contains a single seed and as the carpel dries
    and splits open the seed is ejected with force.

-   It is the only source of an 18-carbon hydroxylated fatty acid with
    one double bond.

-   Vicinolecic acid (12-hydrolecic acid) comprises approximately 90% of
    the fatty acid composition

-   It is a non toxic biodegradable renewable resource.

**Castor plant**

![](media/image3.jpeg){width="5.083333333333333in" height="2.575in"}

**2) Yellow Oleander (*Thevetia peruviana)* seeds**

-   Local name: Yellow oleander or *Chamama* (Luo) where if florishes
    quite well.

-   Scientific name: (*Thevetia peruviana*) is exotic to Kenya having
    originated from Peru

-   Family name: It belongs to the family of Apocynaceae

-   It is a perennial crop, drought tolerant and require minimum inputs
    during field cultivation

Oil composition and uses:

-   The seeds of Y. Oleander contains over 62% a triglyceride
    pale-yellow non drying oil (about 20% of whole seed).

-   The major fatty acid are stearic and oleic plus some little
    percentage of arachidonic acid.

-   It contain about 8% of biologically active steroidal glycosides.

-   The defatted and deglucosylated kernels contain up to 65.8% of
    proteins

-   The oil is also being utilized in the manufacture of soaps, paints
    and cosmetics

**Yellow oleander plant**

![](media/image4.jpeg){width="5.125in" height="2.4819444444444443in"}

**3) *Croton megalocarpus***

-   Local name: *Mukinduri*

-   Scientific name: *Croton megalocarpus*

-   Has been established by JKUAT and the Kenya Organic Products (KOP)
    as a bio-diesel

-   GreenFuel Company of Kenya which was established by the World
    Institute for Leadership and Management in Africa (WILMA) of US
    focused on this plant.

-   ICIPE is also doing research targeting medicinal aspects of Croton.

-   A seed de-huller and an extruder have been fabricated at by JKUAT

***Croton megalocarpus* Plant**

![](media/image5.jpeg){width="5.0in" height="2.5791666666666666in"}

**4) Grain Amaranthus**

-   A potential oil crop but more preferable as a food crop.

-   Its oil contain one rare oil called squalene which is only found in
    sharks

-   It is a very nutritive as a food since it has high protein content

-   It is also preferably used in cosmetic industry

**Grain *amaranthus***

![](media/image6.jpeg){width="4.875in" height="2.8583333333333334in"}

**5) *Jatropha curcas***

-   This is one main crops currently being promoted for bio-diesel
    production in several countries including Kenya.

-   There has been substantial political and social pressures to promote
    the growing of this crop in India, Philippines, China, Egypt
    Tanzania and Zambia as a mean of economic empowerment, social
    uplifting and poverty alleviation

-   It is native of central America (Mexico and the Carribean)

***Jatropha curcas* Plant**

![](media/image7.jpeg){width="5.125in" height="2.4555555555555557in"}

Thus, at JKUAT there is a tractor running on Yellow oleander oil
(bio-diesel) as a source of energy. The oil is also being utilized in
the manufacture of high quality paints, detergent, cosmetics while the
cake is a target of animal feeds and as manure.

> **Bio-diesel tractor**
>
> ![](media/image8.jpeg){width="5.877083333333333in"
> height="2.8118055555555554in"}
>
> **Results**
>
> I will discuss in details our research work, the oil composition and
> engine performance of oil extracted from one plant during the
> conference.

[Joseph M. Keriko]{.smallcaps}

[Biography]{.smallcaps}

Since November 2004, Professor Keriko has been the Director of the
Institute of Energy and Environmental Technology of the Jomo Kenyatta
University of Agriculture and Technology in Kenya (JKUAT). He has also
been an Associate Professor of Natural Products Chemistry in the
Department of Chemistry of JKUAT since 2004. He received his Ph.D. in
Chemistry in 1996 from Okayama University in Japan, and his BSc (1983),
MSc (1988) from the University of Nairobi, Kenya. He has taken a
post-doctoral course in Marine Chemistry at Yokohama, Japan and has
received certificates in Environmental Impact Assessment and
Environmental Leadership from the University of California at Berkeley.
He has been involved in a wide range of research projects including
searching for biologically active compounds from plant origin since
1992. His research in biofuels started in 2001 on extraction and
analysis of oil extracts from local plant seeds, subjecting the oils to
a variety of trials including engine performance tests and other
utilities. In 2003, WILMA group (USA) of companies approached JKUAT in
the exploration of the potentials for biofuel production in Eastern
Africa. These initiatives resulted in the establishment of the National
Biofuel Development Committee in the Ministry of Energy, Kenya.
Professor Keriko is member.

**[Agricultural Biofuels -- Bulgarian Perspectives]{.smallcaps}**

Prof. Atanas Atanassov, Director, Agrobioinstitute

Dr.Svetla Bachvarova, Deputy Minister, Ministry of Agriculture and
Forestry

During the last 3 years, investments in biofuel production in Bulgaria
are increasing proportionally with the expectations that through the
joining of Bulgaria to the European Union, the companies will benefit
the EU tax and financial incentives.

Almost 25 are the new refineries for bioethanol and biodiesel, operating
in the country. Only the biodiesel capacities amount to 140 thousands
tones annually, but with the newly constructed installations their
capacity will reach 400 thousands tones up to 2008. Bioethanol
capacities are still limited for the moment -- just 22 thousands tones
are produced annually. Two new plants are constructed now and they will
contribute for increasing the bioethanol capacity up to 66 thousands
tones.

**[MEASURES FOR ENCOURAGEMENT OF BIOFUEL PRODUCTION AND
CONSUMPTION]{.underline}**

To encourage the production and consumption of biofuels different
measures can be undertaken in view of compensating for their higher
production cost:

1.  Support of agricultural non-food sector;

2.  Fiscal differentiation in favour of biofuels with the objective of
    their being cost-competitive on the market;

3.  Fixation of a certain percentage of biofuels in the total
    consumption of fuels sold on the market.

**1. Development of agriculture** is one of the most important aspects
in the process of introducing biofuels. Increased production of raw
materials for biofuels will contribute to a multi-functional agriculture
and will stimulate the development of agricultural produce by creating
new sources of income, since biomass can be treated directly from the
raw material or as a residue from other processes (secondary biomass).

The potential for the production of biofuels is based on primary
biomass, secondary biomass and remains or organic waste. The plant oils
and fats used are an example of the opportunities offered by secondary
biomass. Total consumption of oils and fats in the EU increases by 2% a
year and two-thirds of these are plant oils. In the food industry,
biofuel production permits processing of the waste in the majority of
the cases.

Special subsidies for growing of crops as a basis for the production of
bioduels were introduced with the Common Agricultural Policy in 2003.
There is provision for direct aid of EUR 45.00/ha, within the limits of
a maximum area of 1.5 million hectares as a budget limit.

In Bulgaria, new refineries for biodiesel and bioethanol production from
grain and oilseed crops shall guarantee to Paying Agency to Ministry of
Agriculture and Forestry, that they will buy up all the declared by
farmers quantity raw material for the respective calendar year. The
guarantee shall be presented to the Agency and will be at the rate of 60
Euro per ha (12 leva per dka). In this way state services will be
certain, that corn, wheat, sunflower and rapeseed producers, subsidized
for growing energy crops, have indeed submitted the raw material for
processing and for no other purposes.

Agricultural Funds foresee additional subsides for growing energy crops,
additionally to direct payments per dka. The subsidies are 45 Euro (9
leva per dka) plus direct payments of 14 leva per dka. In spite of
comparatively high guarantee, that refineries has to block in favour of
the country, the scheme is compulsory because of a risk from
infringement when subsides are requested. The Payment Agency will pay
subsides for growing energy crops only to farmers who present contracts
with processing companies, that will purchase the raw material.

It is expected that in 2007 Bulgarian producers will multiply the area,
planted with energy crops. Only the rapeseed area will increase from 109
thousands dka in 2006 to 400 thousands dka. Ministry of Agriculture and
Forestry is drafting a program for stimulating energy corn and wheat
varieties growing. Their yield is up to 300 -- 500 kg per dka.

**2. Tax concessions** are the second effective way to encourage
development, which with the help of appropriate fiscal regimes leads to
a reduction of the difference in the production cost in comparison to
conventional fuels. The tax instrument related to a reduction of excise
tax on biofuels is most effective since the measures for tax concessions
are part of a common set of technical, legal and economic measures.

In application of Directive 2003/30/ЕС the majority of the member-states
use exemption from excise taxes in favour of biofuels on the basis of
the Directive which restructures the framework for taxation of energy
products and electricity (2003/96/ЕС), according to which under certain
conditions member states may introduce fiscal incentives pertaining to
biofuels.

Use and differentiated taxation related to biofuels is based on
different provisions of European legislation. In the first place, this
is European Directive 98/70/EC, amended and supplemented by Directive
2003/17/ЕС treating the quality of fuels. This Directive permits
addition of up to 5% ethanol, up to 15% ETBE to petrol and of up to 5%
biodiesel to diesel fuel. A larger percentage of content is completely
compatible with contemporary engines, but it is obligatory for consumers
to be informed about the higher content at the filling station. On the
other hand Directive 2003/30/ЕС affixes the goals as regards the
introduction of biofuels, while Directive 2003/96/ЕС allows for partial
or complete eradication of excise taxes.

In accordance with the priorities of Bulgaria's policy and as a
reflection of European policy the Ministry of Economy and Energy has
drafted the Renewable Energy Sources Bill. The main concept of the bill
is establishment of statutory rules and relations with a view to
development and encouragement of production of energy from renewable
energy sources, including the introduction of Directive 2003/30/ЕС in
domestic legislation.

As in the other member-states, the transport sector is one of the main
consumers of liquid fuel in this country. Its share in end energy
consumption stands at about 25%. There is a stable trend of 1% annual
increase of the vehicle park which consumes about 63% of the liquid
fuel, which in turn means 30 -- 40% higher energy intensity as compared
to the European countries.

Obviously, the introduction and implementation of the Directive
concerning biofuels in Bulgaria will be a multi-faceted task, related to
the development of not only the energy component, but also to the
development of agriculture, improvement of transport sector efficiency,
implementation of a new fiscal policy and, last but not least, change in
consumer culture.

**3. Fixation of a certain percentage of biofuels in the total
consumption of fuels sold on the market**

Up to 2010 all member states shall guarantee 5.75% minimum share of
biofuels of total fuels used in transport sector. At the same time,
Brussels plan to revise the EU Directive and set a guarantee of 10% up
to 2020. According to Bulgarian Renewable Energy Sources Bill, the share
of biofuels shall reach up to 2% during 2008 and 5.75% up to 2010.

**[RESOURCE AVAILABILITY]{.underline}**

Bulgaria has excellent natural conditions for development of the
agricultural and forestry sector. Arable land stands at about 4.9
million ha or 44% of the total territory of the country. The favourable
climate for the production of different crops and the existence of
agricultural lands, as well as traditions, contribute towards
well-developed agriculture and animal husbandry.

In 2005 unused agricultural land (fallow land and uncultivated land)
amounted to 19% of the entire agricultural land. This provides an
opportunity for development of this potential for the production of
biofuels, providing that the necessary stimulation mechanisms are laid
down in legislation.

**Principal crops for the production of biofuel and their potential**

The energy crops used as raw material for the production of
**bioethanol** are sugar beet, wheat and maize.

-   **Sugar beet --** Production of sugar beet in Bulgaria is
    inconsiderable -- 26,367 t in 2004 in spite of favourable climatic
    conditions. This situation does not allow a forecast to be made for
    its use as raw material for bioethanol in the near future, except if
    special measures for stimulation of production are not applied. The
    average harvest of sugar beet in Bulgaria stands at 22.55 t/ha
    (according to data of the Ministry of Agriculture and Forestry)
    which corresponds to 1.97 t/ha alcohol.

-   **Wheat** is the agricultural product with the largest volume of
    production -- 3,961,000 t from 1,039,678 ha of land in 2004. In
    addition to covering the needs of the domestic market, the
    favourable climatic and macroeconomic conditions permitted exports
    to the amount of 667,036 t in 2004. The average wheat harvest in
    Bulgaria stands at 3.09 t/ha (according to data of the Ministry of
    Agriculture and Forestry) which corresponds to 0.88 t/ha alcohol.

-   **Maize** is produced on irrigated lands as it is a crop favouring
    humidity and warm weather. The average maize harvest in Bulgaria
    stands at 4.47 t/ha which corresponds to 0.41 t/ha alcohol.

It becomes clear from the above-quoted statistics that the potential for
production of wheat and maize allows them to be used as basic raw
material for the production of bioethanol.

The energy crops used as raw material for **biodiesel** are rapeseed and
sunflower:

-   The climatic and agro-meteorological conditions for the production
    of **rapeseed** in Bulgaria are favourable. Low winter temperatures,
    quick warming in the period of ripening (May-June) and the lack of
    traditions in the production and use hinder the introduction of this
    crop. This explains the low output in 2004 -- 22,388. The average
    harvest of rapeseed in Bulgaria stands at 1.5 t/ha which corresponds
    to 0.53 t/ha oil.

-   **Sunflower** is the agricultural crop second in importance to
    maize. The average harvest of sunflower in Bulgaria stands at 1.48
    t/ha which corresponds to 0.59 t/ha oil.

The above data indicate the conclusion that since rapeseed farming in
Bulgaria harbours risks it is recommendable to use sunflower for the
production of biodiesel.

**[LEGISLATION]{.underline}**

The legislative base for introduction of biofuels in Bulgaria allows the
creation of conditions for the development of the production of this
type of fuels. Fuels are treated in several statutory instruments:

-   The Clean Air Act of July 5, 1999, and more particularly the
    Ordinance of the Ministry of Environment and Waters pertaining to
    the requirements for quality of liquid fuels and the procedure,
    conditions and manner of their control as of October 1, 2003.

The Ordinance of the Ministry of Environment and Waters concerning the
quality of fuels and its two annexes partially considers the
requirements to percentage content and provides for the use of biofuels
as additives to conventional fuels. According to Annex No. 1 to the
Ordinance, which pertains to the characteristics of petrol, permits an
addition of up to 15% ethers and up to 5% ethanol. Annex No. 2 concerns
the requirements to diesel fuel and the opportunity for addition of up
to 5% methyl ester. The ordinance does not treat the requirements to the
products which area part of biofuels, or the introduction of the notions
and their definition.

-   Finances Act and Excise and Customs Warehouses Act (from January 1,
    2006)

The Excise and Customs Warehouses Act makes it mandatory that biofuels
be stored at customs warehouses after June 1, 2006 (Article 66(2)). Item
8 of Article 13 in the Energy Products chapter refers to biodiesel used
for heating and as motor fuel. Article 32, Item 7 of Paragraph (1) and
Item 4 of Paragraph (2), as well as Item 6 of Article 33 specify that
biodiesel used as fuel in agricultural and forestry machines, or as fuel
for heating are liable to BGN 0.00 excise tax per 1,000 litres. In
addition, Article 22 (1) of the Exemption and Reimbursement chapter
states that methylated ethyl spirits, included in biofuels and more
particularly mixed with petrol, is not liable to excise tax.

-   European Standard 14 214, which was introduced as Bulgarian State
    Standard in 2004 provides the specifications of pure biodiesel.

The Bulgarian standard, which adopted European standard 14 214 provides
detailed specifications of the technical parameters of biodiesel.

-   The legislative act, which unites all above-mentioned specific
    elements, related to biofuels, more particularly the terms and
    definitions, the specifications of pure finished products, the
    obligations of producers, distributors and exporters, control,
    sanctions, etc. is the Renewable Energy Sources Bill of June 22,
    2007.

[Prof. Atanas Atanasov]{.smallcaps}

Prof. Atanasov, Director of the Agrobioinstitute under the Ministry of
Agriculture and Forestry, is a leading Bulgarian scientists and one of
the most recognized researchers in the region and internationally. He
has been the top local biotech expert for the last 15 years and a key
partner in a number of international, including U.S., joint projects.
 Over the last 2 years, Prof. Atanasov and his team have focused on
biofuel development in Bulgaria and currently work on several such
projects.  As a leader of the biotech community in Bulgaria, he has
participated in many USDA initiatives and programs. He speaks fluent
English.

**[Scientific and technological development of agricultural production
and conversion of biofuels in Germany]{.smallcaps}**

Mr. Ronny Winkelmann

Project Manager

Agency of Renewable Resources, Germany

www.nachwachsende -rohstoffe.de and [www.fnr.de](http://www.fnr.de/)

Individual mobility is a cornerstone of our modern society. At the same
time, this mobility is causing significant impacts on our climate and
environment. Depletion of our fossil energy sources is accelerating, and
it is associated with disastrous emissions of greenhouse gases from
combustion engines.

What is the alternative? -- Energy saving efforts are certainly
important, but apart from these, biofuels are a most promising option.

The European Union is already working towards a 12% share of renewable
energy regarding total consumption, and a 5.75% share for transport
biofuels by 2010.

In future, the bar will be raised even further. The EU Commission's
Climate Agenda contains plans to increase the share of renewable
energies to 20 % in 2020. For transport fuels, the goal has been set at
10%.

The EU goal for 2005 was a biofuel share of 2% of total fuel
consumption. Germany more than fulfilled this goal, achieving 3.6 % in
2005 and increasing this to 6.4 % last year. Germany does have a leading
role within the EU, but -- due to the high degree of motorisation -- it
also has a special responsibility.

The share of biofuels in Germany -- more than 6 % in 2006, or about 4
mio tons -- was nearly exclusively first-generation biofuels. 2.5 mio t
were biodiesel -- that was and still is our most important biofuel. The
other significant fuels are pure plant oil (PPO) at one million tons and
ethanol at 480,000 tons. First-generation biofuels will remain an
important tool in reaching the aforementioned goals, but their
medium-term potential is limited. We know they have disadvantages with
regard to productivity and to reducing greenhouse gases.

This is where second-generation biofuels come in. For BtL fuels and
bioethanol from lignocellulosis as well as for biomethane, the whole
plant from stem to fruit can be used as raw material. Moreover, they can
be derived from various types of biomass, even weeds and organic
residues and wastes. As experts say, 4000 l BtL can be produced per
hectare land -- with plant oil or biodiesel, it is less than half as
much. Other advantages of BtL include the possibility of customising
them to the requirements of modern engines, and the fact that emissions
from BtL combustion are lower -- especially CO~2~ emissions, these are
up to 90% less than those from conventional fuels. All of these
advantages could be realised with today's transport vehicles, but BtL is
not yet available on the market

*[The Agency for Renewable Resources (FNR)]{.underline}*

The Agency for Renewable Resources (FNR) was initiated by the Federal
Ministry of Food, Agriculture and Consumer Protection (BMELV) in 1993 in
order to support research and development in the area of renewable
resources. As the central coordinating agency in Germany, FNR's task is
to ensure a pooling of activities for the support of renewable
resources. FNR's main responsibility is the implementation of the
federal research, development, demonstration and market introduction
programmes for renewable bioproducts and bioenergy, with a budget of 53
M€ in 2006 Beside professional consultation and financial support, FNR
takes part in scientific events, advises the public about current
research results and provides information on the whole range of
applications of renewable resources.

Since 1994, FNR is also actively involved in European projects, either
as coordinator (CTVO-net, Altener Bioenergy cluster) or partner (e.g.
NF-2000, IENICA, EUBIONET, ERANET Bioenergy), and has been responsible
for the German participation in IEA Bioenergy since 2005. A recent
activity of FNR with high relevance to the area of biofuels is the
secretariat of the European Technology Platform Biofuels. From September
2006 onwards and together with STEM, Sweden and CPL, UK, FNR will ensure
a smooth operation of this virtual platform which includes all
stakeholders involved in the production, processing and utilisation
chain of biofuels.

*[The BtL funding strategy of FNR]{.underline}*

Germany's national bioenergy strategy is managed by the Federal Ministry
of Food, Agriculture and Consumer Protection (BMELV). FNR is following a
dedicated BtL funding strategy, which takes into account all fields of
activity (i.e. plant breeding, agricultural and silvicultural production
of energy crops, logistics and biofuel processing, gasification, fuel
synthesis and processing) along the BtL production chain. Currently, FNR
is supervising 31 projects with a funding volume of 15 Mio. € in this
area of work.

According to Germany's national fuel strategy, BtL fuel will play a
major role as a transport fuel beyond 2010. On the European level, the
European Commission has discovered BtL as a promising future biofuel,
too. Due to the restricted raw material base of the "classic" biofuel
such as ethanol from starch, oil or fatty acid methylesters
(FAME/Biodiesel) from vegetable oils, these already broadly available
biofuels could contribute only very limited additional quantities. BtL,
however, can be produced from nearly every biomass from agriculture or
forestry, making it a suitable substitute for current biofuels.

However, BtL production routes are still being developed and even at the
same time, the general discussion broadened from a mainly technical look
at processes to include discussion about the sustainability of the
BtLproduction chain. Nowadays, an integrated approach is requested. For
a sustainable BtL production the following topics must be taken into
consideration:

-   adapted energy crops made available by intelligent plant breeding,

-   environmentally compliant methods of energy crop production in
    agriculture and forestry,

-   logistic systems specially fitted to the needs of biomass fuel
    transport,

-   highly efficient biomass gasification processes and raw gas
    treatment,

-   flexible and efficient hydrocarbon synthesis from biosyngas

As acreage is limited in Germany, the BtL production chain has to be
developed into a highly efficient process.

![](media/image9.wmf){width="4.315277777777778in"
height="3.404166666666667in"}

*[Research and development of 1^st^ generation biofuels]{.underline}*

Since its foundation in 1993, FNR has been funding R&D projects to
support market penetration of 1^st^ generation biofuels (pure plan oil,
biodiesel, bioethanol). Strengthening the competitiveness of the local
agriculture and forestry is one of the main funding objectives for R&D
projects.

The results of this research substantially contributed to the success
story of biofuels in Germany. The production of biodiesel has made a
significant leap in the past years. From 1996 to 2006, the biodiesel
production capacity was increased from approximately 200.000 to a total
of 5 million tonnes. R&D and attractive framework conditions result in
new production and sales opportunities for farmers as producers of raw
materials. The economic factor will be highly significant in the future,
since supply of raw materials is the limiting factor for the further
development of the biodiesel economy. Given the existing production
facilities, biodiesel cannot be expected to replace more than 10 % of
total fuel consumption. Even so, biodiesel is by far the most important
energy product for German agriculture now that biodiesel made from
rapeseed oil has become established as an alternative in the fuel
market. For the use of alternative transportation fuels, practically
only pure biodiesel fulfils the set requirements. While FNR essentially
financed R&D measures and public relations, automobile industry and
biodiesel manufacturers developed the technical and normative
prerequisites for a sustained market entry of rapeseed oil methyl
esters. Several studies published in the meantime, and the creation of a
European standard for biodiesel (DIN EN 14214) stand as impressive proof
of these achievements.

The interest in using pure plant or vegetable oils as fuel mainly came
from the agricultural sector, which is still one of its main drivers.
PPO today represents a marginal niche in the transport fuel market.

In Germany, nearly 400 decentralised oil mills are producing plant oil,
mostly from rape seed. FNR supported and supports a number of R&D
projects to promote the usage of pure plant oil in diesel engines. One
of the most important projects was the
„100-tractors-demonstration-project" which investigated opportunities
for the application of pure plant oil in modified tractor engines. The
study concludes that PPO operation is generally feasible. However, any
modifications to the engine must be of a high quality and the fuel has
to meet the set requirements (DIN V 51605). Therefore, follow-up
projects include measures to improve the fuel quality and to modify
diesel engines so that they meet the current exhaust gas emission
limits.

To ensure biofuel production is sustainable with regard to
environmental, economic and social aspects, FNR is supporting an R&D
project to develop a biofuel certification system. A first draft of such
a system of sustainability criteria was elaborated in cooperation with
many national and international stakeholders. Currently, FNR is checking
whether a next stage -- the pilot stage -- is fundable as well. This
phase would examine the practicability of said sustainability criteria

*[Need for action]{.underline}*

The German government has adopted different measures (e.g. the biofuel
quota act) to increase the share of biofuels. The German goal for 2015
is a biofuel share of 8% of total fuel consumption (based on energy
content). This goal can only be achieved by using 1^st^ generation
biofuels. However, the adopted measures require a certain R&D input.

In the area of 1^st^ generation biofuels, the following issues are of
particular interest:

-   standardisation of biofuels and quality assurance,

-   developing, proving and optimising production paths of sustainable
    biofuels up to demonstration plants on an industrially relevant
    scale,

-   investigation of exhaust gas emissions,

-   economic, environmental and technical assessment of promising
    biofuel production paths;

-   development of sustainability strategies.

With BtL fuels, nearly 25% of the German fuel consumption could be
provided from renewable sources by 2030. But, as stated before, the BtL
technology is complex and still in need of further development. Based on
various questions, the following R&D priorities can be formulated:

-   Implementation of demonstration plants for further up-scaling

-   Analysis of critical points of BtL processes for further development
    of the BtL technology and optimisation of energy efficiency.

[Ronny Winkelmann]{.smallcaps}

[Biography]{.smallcaps}

Mr. Winkelmann is an Agriculture Engineer with the Agency of Renewable
Resources in Germany, where he is responsible for project management of
biofuels research. Within the promotion programme "Renewable Resources"
of the German Ministry of Food, Agriculture and Consumer Protection
(BMELV), he prepares and promotes R&D projects on the subject of
biofuels -- from the production stage to utilisation. Furthermore Mr.
Winkelmann gathers and processes technical data from the field of
science and the economy to support FNR's advisory service for industry,
agriculture, administration and other interested agencies and persons.
He was part of the Advisory Group on Biofuels in Mecklenburg -- Western
Pomerania from 2005 to 2006. During this time he taught farmers on
decentralised rapeseed oil and rapeseed oil methyl ester production and
application of pure rapeseed oil in modern diesel engines. Mr.
Winkelmann studied agricultural science from 1997 to 2003. He graduated
from the University of Rostock in 2003 with a thesis on "Synthesis of
biofuels from solid biomass".

**[Commercialisation of biofuels in Poland]{.smallcaps}**

# 

# Podlaski Sławomir

# Warsaw Agricultural University

Warsaw, Poland

**The present production of biofuels in Poland**

The consumption of petrol and diesel fuels in 2006 was: 4.1 and
8.0 million tons. The average forecasted increase of fuel consumption
will be approx. 5%/year to 2010. The forecasted consumption of petrol
will not increase and will level out at 4 million tons and diesel fuel
consumption will rise by 7%/year. That means that by the year 2010
diesel consumption will reach 10 million tons.

According to the EU 2003/30/ directive the share of biofuels in total
use of all transport fuels should reach 5.75% (energetic value).
However, it does not seem plausible as the average share of biofuels in
the EU appears to fluctuate around 4-5%.

The share of biofuels in Poland was: for 2004, 2005 and 2006: 0.30, 0.48
and 0.90% respectively. The government guidelines for the following
years are as follows: in 2007 -- 2.30%, 2008 -- 3.45% 2009 -- 4.60%,
2010 -- 5.75% and 2014 -- 7.55%. This seems to be wishful thinking
rather than a real possibility.

The production of biodiesel in the years 2005 and 2006 was 100 000 and
150 000 tons respectively. The production of fuel ethanol in 2005 was
51 000 tons and in 2006 was 130 000 tons. Taking into account the target
of 5.75% consumption of biofuels in 2010, the consumption of fuel
ethanol should reach approx. 368 000 tons and the consumption of
biodiesel fuel should reach 570 000 tons.

The production of ethanol in Poland is performed using both technically
and technologically obsolete agricultural distilleries. Out of the
900 distilleries existing in the 1990s only 300 still exist. The main
raw material for the production of ethanol is rye -- 70-80%, followed by
molasses/sugar beet -- 10-20%, potatoes -- approx. 5%, and other
ingredients -- 3-4%. The efficiency of the existing installations in
relation to production is about 2.5x bigger. It is estimated that the
production capacities of all distilleries reaches 400 million
litres/year, but the consumption, industrial and other demand (without
fuel) is approx. 250 million litres.

Most of the distilleries are small facilities that produce an average
raw alcohol volume of 1 million tons. Only a few of them produce
3 million litres of alcohol/year and decoction.

Lately there has been an increasing interest in industrial distilleries
producing 100 000 litres of spirit/day, which amounts to over 30 million
l/year. There are around 20 such distilleries country-wide, and 10
others are designed. An industrial distillery produces 30x more spirit
than the average agricultural distillery, but it is still 10x less than
a contemporary ethanol-production plant.

According to analyses there would be no problems with raw materials for
the production of ethanol in Poland. In the years of bumper crops in
Poland there are surpluses, with unprofitable export prospects and the
need for subsidies.

It is estimated that the food industry uses more than 100 000 tons of
vegetable fat and the catering sector uses twice as much. The prospected
demand of rape processed for food applications of the fat industry will
rise from approx. 1 million tons in 2005 to 1.5 million tons in 2013.

The domestic market demand for rape oil for food and energetic use needs
to increase by 2.5x by 2013; a 2.5x increase of rape production -- from
the average 1.2 million tons from the last 5 years of approx. 3 million
tons. This implies the need for extending the rape farming areas (winter
rape) from 0.5 to 1 million hectares and the need for the increase of
processing capacity of oil seeds from 1.7 to 3 million tons in 2013.

To sum up, it can be stated that an increase of double the current rape
cultivation area in a short time might be difficult owing to the high
soil quality demand, the risk of destruction by frost, especially in
eastern Poland and cultivation problems on small farms.

The production of biodiesel fuel from rape started in Poland in 2004 in
Trzebinia -- the most advanced refinery of this kind in Europe. Also,
there are other plants in the design phase with a total production
capacity of 1 300 000 tons, i.e. 2x more than the estimated 2010 demand
for biodiesel fuel. It seems that the biggest part of the produced
biodiesel can be sold to the neighbouring German market.

**The promotion of biofuel production in Poland**

For Poland and other countries the development of biofuel production
will depend on government tax policy as biofuels are more expensive than
fossil fuels. The total cost of production of 1 litre of bioethanol from
rye (less VAT and excise duty) is PLN 4.115 (1USD = PLN 2.28), whereas
the price of 1 l of petrol (less VAT and excise duty) is PLN 1.601.

One litre of bioethanol costs PLN 2.514 more than 1 l of petrol.
Similarly with rape methyl esters (RME) -- 1 litre costs PLN 3.324 and
1 l of diesel fuel costs PLN 1.781. One litre of RME fuel costs
PLN 1.543 more than 1 l of conventional fuel. Also, these calculations
demonstrate that the amount of financial support for the production of
1 l of alternative fuel allowed by EU regulations should not exceed
PLN 2.514 for bioethanol and PLN 1.543 for biodiesel.

The elements of biofuel promotion in Poland are:

-   exempt from excise duty -- PLN 1.565/l for ethanol added to petrol
    and PLN 1.048/l

> for biodiesel added to diesel fuel.

-   Between the years 2007 and 2014 the deduction of 19% of production
    costs for surplus biofuels over the cost of production of mineral
    fuel will be possible.

-   Support for energy crops (cereals, potatoes, sugar beet, rape)
    producers in the form subsidy of € 45/hectare.

-   Financial support of investments in the production of biofuels from
    EU and

> domestic funds.

-   Local government support in the form of the use of biofuels in
    public transportation.

-   Exempt from parking fees for car owners.

-   Forcing the public-sector companies to use biofuel-powered vehicles.

[Professor Slawomir Podlaski]{.smallcaps}

[Biography]{.smallcaps}

Professor Podlaski is the Head of the Department of Plant Physiology at
the Faculty of Agriculture and Biology of the Warsaw Agricultural
University (SGGW). He served as the Vice-Rector of University from
2002-2005, and as the Dean of Agricultural Faculty from 1996-2002. His
main field of interests in bioenergy are:\
1. Using sugar beet as a raw material for production of bioethanol; and\
2.Estimation of agricultural and environmental value of some energy
crops most suitable for cultivation in Polish agroecological conditions.

At present he is engaged in research on \"Comparison of some
 physiological parameters determining  yield of biomass of some energy
crops." This is a part of a national subject on \"Modern technology of
energetic utilization of biomass and some organic wastes - conversion to
gaseous fuels."

Biofuels -- activities in Sweden

Mr. Fredrick Odelram

Senior Administrative Officer

Ministry of Agriculture, Agriculture and Forestry Division

Ministry of Agriculture

Stockholm, Sweden

### 

### **Bioenergy in Sweden**

Sweden has virtually no indigenous resources of fossil fuels. Thus the
country has to depend on other domestic energy resources -- primarily
biomass and hydropower -- and imported fuels. Sweden has a long
tradition of bioenergy, especially using resources from our forests.
Sweden's forests cover about 60% of the land area and are an important
source of bioenergy for heating and power production.

Increasing oil prices alone has not been a strong enough economic
incentive to initiate any significant introduction of biofuels in the
transport sector, which still is 95 % dependent on oil (5% electricity
for trains and biofuels for road transport).

The primary policy instrument for fuel switching is and has been taxes
on fossil fuels and CO~2~ emissions. The effect has been an almost
complete phase out of oil in the heating sector. District heating plants
fuelled by biomass has been the most competitive choice and out of reach
for district heating infrastructure, electric heating -- presently with
rapidly increasing efficiency on the end use side utilizing heat pumps
-- and increasing use of automatic pellets boilers. The result is that
the use of renewable energy in Sweden has reached almost 30 %.
Hydropower and bioenergy are the major renewable energy sources, with
solar and wind at more modest levels but expanding. A large part of the
bioenergy is used in the industrial sector, especially in the forest
industry (for example integrated in the chemical pulp production
process). Biomass from agriculture contributes to a small part of the
total. Today, only about 2--3 % of the Swedish agricultural land is used
for energy production.

### **Biofuels for transport**

In 2006, the use of liquid and gaseous biofuels for transport in Sweden
amounted to 3.1 % of the total use of diesel and gasoline. The main
biofuels are ethanol, RME (FAME) and biogas. A large amount of the
ethanol is used as 5 % mix in gasoline. The number of cars running on
E85 is increasing. About 47 000 of the Swedish car fleet were so called
flexi fuel vehicles (FFV). There are about 845 fuel pumps for E85 in
Sweden today. The use of RME in diesel is also increasing. In December
2006, 64 % of the diesel sold in Sweden contained 5 % of RME. However,
the number of biogas pumps is still limited, although growing at a
strong pace.

### **Incentives to stimulate the use of biofuels for transport**

By the decisions at the Spring European Council in March this year, the
European Union has set ambitious goals concerning climate change policy,
for example reduction of green house gas emissions and an increased
share of renewable energy. There is much work needed in the European
member states to fulfil these goals.

In Sweden there are many incentives to promote the use of biofuels both
locally and nationally. The most important incentives at the national
level are:

-   A taxation strategy, exempting carbon dioxide neutral fuels from
    energy and carbon dioxide tax. This is a very strong incentive for
    promoting bio-fuels for transportation.

-   A decision by the Swedish Parliament that stipulates that from
    1 April 2006 large petrol stations must sell biofuels, such as
    ethanol or biogas.

-   An environmental policy for state-owned cars stipulates that, from
    2007 and onwards, at least 85 % of the total number of cars that a
    public authority purchases or leases must be "*environmentally
    sound*".

Incentives at the local level are for example free parking for
environmental cars and no congestion charges for environmental friendly
cars in Stockholm.

### **Research, development and demonstration of biofuels**

Sweden regards research and development on improving and developing the
production and use of biofuels as very important. Sweden has high
ambitions concerning the development of new and efficient technologies
for the 2nd generation of biofuels, for example ethanol from cellulose
or various biofuels from gasification of biomass. Today, there are three
so called pilot plants for developing the 2^nd^ generation of biofuels
in Sweden. One on gasification of black liquor, one on gasification of
biomass and one on ethanol production from cellulose.

### **The resource base for biofuels**

The agriculture and forestry sectors are becoming increasingly important
for producing bioenergy. In turn, this is developing the rural areas, in
Sweden as well as globally. However, the competition of both land and
raw material resources will most likely increase. There may also be
important implications for industry, food production and ecosystems and
there are ethical aspects to take into consideration. It is vital to use
agricultural and forest land wisely. Sweden has a long tradition in
sustainable forestry and is at the forefront regarding the development
of new methods for increasing wood production while safeguarding
biodiversity.

[Fredrik Odelram]{.smallcaps}

[Biography]{.smallcaps}

[\
]{.smallcaps}Mr. Odleram is the senior administrative Officer of the
Ministry of Agriculture, Agriculture and Forestry Division of Sweden. He
has a Master degree in Business Administration from the Jönköping
International Business School (2000). Between 2000 and 2002, he was
employed at the Market Division within the Swedish Board of Agriculture.
Since 2002, Mr. Odelram has held a Senior Administrative Officer
position at the Swedish Ministry of Agriculture, Agriculture and
Forestry Division. During the last three years he has been responsible
for matters concerning bio-energy.