biofuels in Germany
More than ever, mobility has become an important factor for economic success in an increasingly global community. However, this constantly growing need for individual mobility has led to rising energy consumption within the transport sector, which until now has been over 90 % dependent on oil in Germany. Due to the finite availability of oil and climbing prices, increasing numbers of countries have begun, on a step-by-step basis, to increase the percentage of biofuels that make up their fuel supply policies. German companies can demonstrate many years of professional experience in the field of biofuel manufacture. This experience also forms the basis of their tested and reliable biofuel plant technologies. This know-how is in demand, across the globe and at all links in the value added chain, because the marketing of by-products produced during the manufacture of biofuels (e. g. pharmaceutical-quality glycerine from biodiesel production and protein-rich animal feed from distillers grains from the manufacture of bioethanol) significantly determine the cost-effectiveness of biofuels. At the same time, German technology companies are working on new processes. A key area of focus is the development of new processes to produce synthetic biofuels from biomass (the Biomass to Liquid Process or BtL).
Applications and technologies
Worldwide, German companies construct plants for the production of biodiesel, bioethanol and biogas. This also includes processing biogas so that it is at the same level of quality as natural gas in order to use distribution systems that already exist. On top of this, German companies also support and push forward development of technologies and motor concepts which run on pure vegetable oil to generate electricity and heat (co-generative heat/power plants) and for use in vehicles. Vegetable oil is the basic ingredient of biodiesel. Currently, the biofuels market is dominated by biodiesel and bioethanol. Worldwide, bioethanol is without a doubt the more important of the two. In the following, possible areas of application for biofuels and their manufacture are described.
Worldwide in 2007, around 40 million m³ were produced, of which 0.54 million m³ were produced in Germany. Bioethanol can be manufactured using various agricultural materials. In Europe, cereal and sugar beet are used, in Brazil the main raw material is sugar cane, in the USA it is corn. Just as with normal alcohol, bioethanol is produced by the alcoholic fermentation of sugars using yeasts followed by a purification process. If cereal is used, the starches are first converted to sugars using enzymes. This creates a by-product called dried distillers grains with solubles or DDGS for short. DDGS is a valuable high-protein animal feed with a 30 % protein content.
Bioethanol is used in differing concentrations in petrol. In Brazil it is even used undiluted (E100). In Germany, the European standard DIN EN 228 allows fuels to comprise of up to 5 % bioethanol (E5). Engines which have been suitably adapted and flexible fuel vehicles (FFV) can be operated with fuels containing up to 85 % bioethanol (E85). Another option is to use bioethanol to manufacture ethyl tertiary butyl ether (ETBE), which has a bioethanol content of 47 %. ETBE can be used as a replacement for methyl tertiary butyl ether (MTBE), which is made exclusively from non-renewable sources and which can be used as an additive against knocking. In Germany, fuels may contain up to 15 % ETBE.
Worldwide in 2006/2007, 8.9 million tons of biodiesel were produced, of which 64 % were produced in the EU-27 and 11 % in the USA. Germany’s annual production capacity has now reached 4.2 million tons and has taken a leading position in the biodiesel manufacturing industry. This also goes for sales. In 2007, 3.13 million tons of biodiesel were sold, that relates to around 10 % of German diesel consumption. Over previous years, the biodiesel manufacturing process known as FAME was developed. Currently, German companies offer systems for both large-scale production of several hundred thousand tons per year as well as smaller, decentralised facilities with annual capacities of several thousand tons. In Germany, the vegetable oil necessary for the production of biodiesel is mainly produced from rape seed. Rough calculations suggest that from every 100 kg of rape seed processed, around 57 kg is coarse colza meal as a protein-rich animal feed and around 43 % is rape seed oil. Once extracted and refined, the oil is then transesterified to fatty acid methyl ester (FAME/biodiesel) by adding methanol and a catalyst. This results in a fuel which possesses both a similar energy density and viscosity to regular diesel and which can therefore be used in normal diesel motors. Glycerine is also produced as a by-product during the biodiesel manufacturing process. Separate markets exist for these by-products. Whilst rape seed oil is generally used for the production of biodiesel in Europe, soya is the main raw material in the USA. Principally, all vegetable oils can be used for the manufacture of biodiesel. Possible oils include palm oil, sun flower oil and jatropha oil. Used cooking oil and animal fat can also be used to manufacture biodiesel once they have been subject to the appropriate cleaning process.
In its undiluted form (B100), biodiesel can be used as a fuel for heavy vehicles such as HGVs, buses and agricultural vehicles. It can also be mixed with conventional diesel. In Europe, diesel mixtures containing up to 5 % biodiesel can be sold without special labelling. Currently, negotiations are under way to establish a standard which would increase this to 7 %. France and Germany are leading the way with national standards, so that B7 will be on sale across Germany by the beginning of 2009.
Untreated vegetable oil can also be used as a fuel in all current diesel motors for mobile and stationary applications. However, due to its higher viscosity and lower cetane rating in comparison with diesel fuels, engines must be especially converted. Conversions can be conducted simply by installing conversion kits from German companies. Pre-built kits can be integrated easily in existing fuel supply systems allowing pure vegetable oil to be used as a fuel. Sales of vegetable oil in Germany totalled 0.727 million tons in 2007.
Purified biogas, which conforms to the quality of natural gas, can be used as a fuel in natural gas vehicles without restriction. Biogas, produced by anaerobic fermentation, undergoes a process of CO2 separation, whereby carbon dioxide is removed until a methane concentration of 98 % is reached. Biogas of this level of purity can be fed into natural gas networks and supplied at all natural gas filling stations. After being compressed to 250 bar, it can also be used as a fuel in natural gas vehicles. Of course, a biogas filling station can be located right next to a biogas plant which employs the appropriate purification processes. This allows natural gas powered vehicles to be supplied using an off-grid system. Currently, some 7.2 million vehicles worldwide are powered using natural gas, around half of these are located in South America.
Regulatory framework and market development
- German manufacturers have massively expanded their biodiesel production in the last years. They are planning to further increase capacity of up to 3 million tonnes in 2006/2007. Since 2004, the bioethanol production for the generation of fuel has been accelerated.
Source: UFOP (German Union for the Promotion of Oil- and Protein-containing Plants)/FNR (German Agency of Renewable Resources). * Forecast
Worldwide, more than 30 countries have already defined targets or laid out statutory minimums concerning the levels of biofuels in vehicles. This has helped to create straightforward and reliable global market for biofuels.
On top of this, many governments also support the manufacture of biofuels through tax breaks and schemes to encourage investment. Biofuels are also enjoying particular significance in many countries due to the high price of oil; because they already have the potential to replace crude oil imports via biofuels produced from domestic and imported raw materials, they are able to offer security and stable energy prices, both of which are incredibly important for economic growth. On the other hand, the cost of manufacturing biofuels and therefore any competitive edge they might have is subject to the prices for the required agricultural products. Brazil is the world’s leading manufacturer of bioethanol made from sugar cane.
Outlook
With their reliable plant technology and experience, German companies can help to encourage growth in biofuels markets. Aside from new developments in increased efficiency in the conversion of raw materials into fuels, the use of new raw materials will also help to encourage the use of biofuels in general.
The first generation of biofuels is based exclusively on plants that contain sugars, starches and oils. Apart from the toxic jatrophas, all of the vegetable matter is supplied by conventional market consumables, whose prices are significantly influenced by the world market. In the future, raw materials used in the production of biofuels will be used increasingly for food production (e. g. as fertiliser or as animal feed), thus, at the same time, completing the food cycle.
In order to reduce, on the one hand, the cost of raw materials and therefore the manufacturing costs and on the other hand to increase fuel yields per surface area, German companies have been working with researchers to create the second generation of biofuels. These biofuels will make use of a wide range of reasonably priced raw materials such as wood and straw. Biogas also presents an interesting alternative, because practically all agricultural crops can be used in its manufacture. By-products from the fermentation process (manure) can also be returned to the regional production cycle.
The development of second generation of biofuels is still in its early stages. Currently, German companies are preparing the first large-scale manufacturing project for the production of BtL in industry.
Aside from new manufacturing processes, alternative raw materials are also being researched in Germany. One example is the development and launch of a production technique that uses algae with a high oil concentration in the biodiesel manufacturing process. In Germany. a pilot project was launched in 2002 with an annual production volume of 150 tons of algae-biomass and a photo-active net volume of 700,000 litres. The process should become commercially available in around 2 to 4 years.
