1. 1 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP University of Zagreb Faculty of Mechanical Engineering and Naval Architecture Bioethanol in Europe Policy and markets Neven Duić University in Zagreb Faculty of Mechanical Engineering and Naval Architecture Department of Energy, Power Engineering and Ecology Neven.Duic@fsb.hr

2. 2 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Acquis Communautaire Green Paper “Towards a European strategy for the security of energy supply” - 20% alternative fuels in road transport by 2020. Kyoto Protocol – GHG emission reduction by 8% by 2010 relative to 1990 White Paper on Renewable energy sources – 12% RES in TPES by 2010. RES-H: Current evolution Biofuels 5.75% RES-E: 22.1% 10%

3. 3 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Acquis Communautaire White paper “European transport policy for 2010” (2001) –forecasts CO 2 emission increase due to transport at 50% 1990-2010, mainly due to road transport (84%) –high dependence on oil (98%) reduced by alternative fuels, as biofuels –import substitution, agriculture diversification from food to energy, GHG emission reduction –tax reduction and crop subsidies for biofuels

4. 4 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Acquis Communautaire Directive 2003/17/EC amending Directive 98/70/EC relating to the quality of petrol and diesel – up to 5% (v/v) ethanol in petrol –coming Directive revision - Spain and Sweden propose increase to 10% (24.6.2005) Biofuels Directive 2003/30/EC –Indicative targets, 2% by 2005 (0.6% 2003, 0.8% 2004, at best 1.4% 2005), 5,75% by 2010 –bioethanol – up to 5%, EN 228, volatility problems in summer, SE –E85 – SE, UK –bio-ETBE ( 47% biofuel) – FR, ES

5. 5 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Acquis Communautaire Biomass Action Plan, Dec. 2005 –issues: national targets for the market share biofuels obligations (FR, AT, 2006: SI, 2007: CZ, NL, soon: UK, DE) certificates of sustainability (non-discriminatory to imports) public procurement of clean vehicles balanced approach (imports/production, currently 10%/90%) ethanol for Diesel engines

6. 6 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Acquis Communautaire Biomass Action Plan, EU25 –biomass production potential and demand

7. 7 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Acquis Communautaire Biomass Action Plan, EU25, imports –duty free: ACP, LDC, BO, CO, CR, EC, GT, HN, PA, PE, SV, VE, GE, LK, MN + AC, WBC, EEA –reduced duty (15%) –duty €19.2/hl on undenatured alcohol €10.2/hl on denatured alcohol.

8. 8 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Acquis Communautaire Biomass Action Plan, balanced approach –price control mechanism –majority of the market for bioethanol would remain domestic –biofuels instead of sugar for preferring LDC –no deforestation and habitat destruction – certificates for sustainable production –EU – Mercosur negotiations –Doha round of WTO

9. 9 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Europe – bioethanol production EU strategy for biofuels, Feb. 2006 EU bioethanol production (t)

10. 10 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Europe – bioethanol production Biofuels in Sweden (80% bioethanol imported)

11. 11 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Europe – road transport fuel market Road transport fuel demand, ktoe

12. 12 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Europe – biofuels market Biofuels market, ktoe

13. 13 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Europe – transport fuels market Gasoline in total road transport fuel demand, ktoe < 30% 30-40% 40-50% 50-60% > 60%

14. 14 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Europe – bioethanol market Bioethanol market, ktoe, 1.9% road transport fuel market by 2010

15. 15 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Europe – bioethanol market Bioethanol market, kt

16. 16 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Europe – production costs Cost of bioethanol crops, €/GJ (Biomass availability in Europe) > 20 €/GJ 5-20 €/GJ < 5 €/GJ

17. 17 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP UK – bioethanol cost of supply Resource costs (costs before taxation delivered to the car at a UK filling station), £/GJ, 2020 http://www.rmd.dft.gov.uk/project.asp?intProjectID=11724 AEAT/ENV/ED50273/R1. International Resource Costs of Biodiesel and Bioethanol AEA Technology Environment

18. 18 of 18 - AGRENER 2006 / Curso Biocombustíveis Líquidos, June 8, 2006, Campinas, SP Bioetanol u pravnoj regulativi EU i RH Thank you for your attention Neven.Duic@fsb.hr http://powerlab.fsb.hr/neven