SaskatoonPromotionofBioFuelsandBioProductsinEurope

PromotionofBioFuels&BioProductsinEuropeSteffenPreusserTradeCommissioner(S&T)CanadianEmbassy-BerlinApril2005,SaskatoonDevelopmentofBiodieselProductionCapacityinGermany65,000140,000249,000520,500945,5001,135,5001,215,5001,930,5002,180,5000500,0001,000,0001,500,0002,000,0002,500,000199819992000200120022003200420052006Source:VerbandDeutscherBiodieselherstellere.V.April2005,SaskatoonCurrentBiofuelsMarketGermanbiodieselmarketlargestinEuropeat1.3milliontonsproductionp.a.-expectedtoincreaseto2.0milliontonsp.a.byendof2006Bioethanolproductionwentfromzeroto500,000tonsp.a.within1.5yearsApril2005,SaskatoonTopicsGovt.PolicyMarketingStandardsOilCompaniesInnovationsOpportunitiesApril2005,SaskatoonGovernmentapproachEUtargetsforbiofuels:2%bytheendof2005(about1.17milliontonsforGermany)5.75%bytheendof2010(about4.07milliontonsforGermany)April2005,SaskatoonGreenPolicySubsidyprograms4X25by202025%renewablesforfuels25%renewablesforheatgeneration25%renewablesforelectricitygeneration25%renewablesforindustrialmaterials(WegvomÖl-“Awayfromoil”)April2005,SaskatoonSubsidies(Howhigharethey?)Fornaturalfibre-basedinsulation:€35/cubicmetre($CAN56)Takespricefrom€140($CAN224)/c.m.to€105($CAN168)/c.m.–regularinsulation~€60($CAN96)/c.m.Forbiofuels,themineraloiltaxexemptionworksoutto€0.50/litre($CAN0.90/litre)Highertaxeslargersubsidies(exemptions)Irelandput€0.15taxonplasticbagsresultedin95%reductioninuseApril2005,SaskatoonAtthepump…Biodieselsellsat€0.10/litrelessthanregulardiesel€0.889/litre$CAN1.42/litreApril2005,SaskatoonLevelingtheplayingfieldPetrochemicalfeedstockusedinthemanufactureofplasticsareoftenexemptfromtaxes(hiddensubsidy)–amountsto0.10to0.15€/kg($CAN0.16-0.24/kg)Recyclingfeesamountto1.20€/kg($CAN1.92/kg)–yetbioplasticsarenotrecycled(dittoforcontainerdeposits)DieselforEUfarmerssubsidised–noincentivetousebiodieselOilcompaniesreceivedepletionallowances…April2005,SaskatoonProposedBioProductsProgramBasedonRenewableEnergiesActPreferential(subsidised)pricesforapprovedbioproductsDegressivesubsidies(i.e.over10years)MustpassthroughaclearingagencyProducers&usersoffossilfuel-basedmaterialspayforsystemandsubsidiesApril2005,SaskatoonProposedBioProductsProgramProblemsBureaucraticConfrontational(bio-basedvs.fossilfuelmanufacturers)DistortsmarketInterventionistPronetoinconsistenciesApril2005,SaskatoonTopicsGovt.PolicyMarketingStandardsOilCompaniesInnovationsOpportunitiesApril2005,SaskatoonMarketingIntensivepublicmarketingofbioproductsAttendanceatagriculturalfairsandhomeshowsAdvertisingcampaignstocreateawarenessanddemandApril2005,SaskatoonBiodieselmarketing(UFOP)BiodieselisproducedfromnativeoilseedrapeandisaneconomicalternativetothegrainmarketsPurebiodieseloffersasetofenvironmentaladvantages:biologicallydegradable,decreaseinemissions,etc.Biodieselisatechnicallymature&highqualityfuel,whichissubjecttoregularqualitycontrolsfromthemanufacturertothegasstationApril2005,SaskatoonConvenientVocabularyInGerman“bio”alsoreferstoorganicHencebiofuelsalsohaveapositiveimage(i.e.goodfortheenvironment)CurrentlyparticulatecontentinurbanairisacauseforconcernBiodieselevidentlyhaslowervaluesthanpetrochemicaldiesel(-Diesel?)April2005,SaskatoonBioplasticsAresoldbasedoncommercialadvantagesnotonLCAsoras“green”substituteAgriculturalfilmsdonotneedtobecollected,cleanedanddisposedofPackagingoforganicproduce(bioforbio)UsedforfrozenmeatbecausebioplasticshasahighoxygenandmoisturepermeabilitySupermarketsusebiodegradablebagsApril2005,SaskatoonPLAvsPVCPLAhaslowerprocessingtemperature(80°Cvs160°CforPVC)savingenergyPLAstifferpermittingtheuseofthinnergauges(200µmvs320µmforPVC)HencePLAresultsinhigherprocessingrates(24cyclesvs18cyclesforPVC)NetcostofPLAcomparabletoPVCStillmanufacturerplanningtochargesurchargeforbiodegradabilitypropertyApril2005,SaskatoonTopicsGovt.PolicyMarketingStandards+OilCompaniesInnovationsOpportunitiesApril2005,SaskatoonStandardsmakethemarketBiodieselwasacceptedbythecarmakersoncereliablestandardswereintroducedbytheproducers(DINEN14214–certifyingbody“AGQM”)UFOPworkedtogetherwithVW-group(incl.Audi,Seat,Skoda)togetblessingforrapeseedmethylester(RME)fortheircarsOthertypesofmethylestersarenotapprovedandthetestingistheresponsibilityofthefuelmanufacturerApril2005,SaskatoonExistingandanticipateddemandforbiodieselcapacityinEurope2,2002,5003,2004,1004,2505,9507,7509,55011,50013,45002,0004,0006,0008,00010,00012,00014,000200220032004200520062007200820092010Source:VerbandDeutscherBiodieselherstellere.V.kt2.00%2.75%3.50%4.25%5.00%5.75%April2005,SaskatoonExpectedDevelopmentofBiodieselMarketinGermany2005t2006t2010tDieselconsumption30,100,00030,800,00030,800,000Biodiesel/EUreq.2%or602,0002.75%or847,0005.75%or1,771,000/0.81energyfactor740,0001,040,0002,180,000(A)3%blends850,000924,000924,000(B)4%blends1,232,0001,232,000(C)B100800,000800,000Min.900,000RequiredA+C1,650,000~1,800,000~1,900,000ProductionImport1,300,000350,000Source:VerbandDeutscherBiodieselherstellere.V.April2005,SaskatoonWholesalePricesofBiofuelsBio