1. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Recent Developments on Biofuels for Transport in Korea Jin-Suk Lee Bioenergy Research Center Korea Institute of Energy Research

2. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Presentation Agenda Introduction Biodiesel Bioethanol Future Prospects

3. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 INTRODUCTION

4. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Fuels Consumption in Korea General aspects on the fuels for the transport in Korea - Gasoline consumption 1.0 x 107 ton/year - Diesel consumption 1.4 x 107 ton/year All crude oils are imported !

5. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Why Biofuels in Korea? Air Pollution High Oil Price Kyoto Protocol Rural Development

6. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Biodiesel Issues : - Demonstration Supply - Standardization & Fleet Tests - Fuel Delivery System - Security for Feedstocks’ supply

7. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Demonstration Supply of Biodiesel Demonstration supply of BD20 has been started in Seoul Metropolitan and Chonbuk Province since 2002. The Korean Biodiesel Standards with 16 specifications have been set up in 2004. Fleet tests have been started to determine the suitability of the Standards under Korean local conditions.

8. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Site for Demonstration Supply Map of South Korea

9. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Biodiesel Plant (100,000 tons/year) Gas Stations for biodiesel Infra for BD20 supply

10. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Korean Biodiesel Standards SpecificationEN14214 Korean Standard (2006. 4) FAME, % 96.5 ≤ Oxidation stability, hr 6 ≤ Acid Number, Mg KOH/g 0.5 Iodine Number ≤ 120 No Spec.s Total Glycerol, % ≤ 0.25≤ 0.24

11. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Evaluation for Biodiesel Blended Fuels What has been done : - - Emission tests every 10,000km - Check on Fuel system Project period: Aug. 2004 – July 2006 Tested Fuels : BD5, BD20 Tested vehicles: Santa Fe, Sorento (Hyundai Inc), Rexton (Ssangyong Inc)

12. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Security for the supply of raw material - Biodiesel production is getting activated in Korea - Most raw materials (over 90%) are imported Establishment of the infra for biodiesel implementation - Biodiesel blending at the gas stations were not successful! Challenging Issues

13. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 R&D on Winter Canola* Sunmang Hanla Potential area: 300,000 – 500,000 ha Expected Canola oil : 450,000 – 750,000 ton/yr

14. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Fuel Quality Management (Effective from July 2006) Oil Refineries (Diesel-BD100 blending) Diesel Biodiesel(BD100) Biodiesel producers (BD100-Diesel blending) Canola oil, Waste fats Farmers (Canola oil), Renderers (Waste fats) BD5 (Gas Stations) BD20 (Captive Fleets) 90,000kL Biodiesel/yr (Voluntary Agreement)

15. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Diesel and Biodiesel Prices DieselBiodiesel 2004200520062005 Diesel untaxed, $/L0.310.510.51*- Total Tax, $/L0.340.410.51- Diesel fully taxed, $/L0.650.921.02- Biodiesel, min, $/L0.70 Biodiesel, max, $/L0.80 * : based on $ 50/bbl crude oil

16. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Action Plan for Biodiesel 20042006200820102012 Biogas4247525863 LFG106212291344397 Biodiesel147184368460552 Total2954437118621,012 X 10 3 toe

17. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Bioethanol Challenging problems on bioethanol implementation in Korea - Quality management of bioethanol blended gas ▪ Susceptibility of the blended gas to water (Phase separation under low ethanol concentrations) ▪ Corrosion problems - Bioethanol from lignocellulosic biomass ▪ Pretreatment works on waste woods

18. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Quality Management Work (Bioethanol Blended Gas) Demonstration work to establish the distribution infra for bioethanol blended gas started as a two year project (August 2006 – July 2008) The key issues; Where and how to blend bioethanol into gas The durability of the materials taken in the current distribution infra to bioethanol blended gas

19. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Ethanol from Lignocellulosic Biomass Waste Oak Wood from mushroom farms 20 L Fuel Ethanol from 100kg wood

20. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 FUTURE PROSPECTS

21. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Korean NTRM 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Biodiesel Standardization 자원확보 NewBiodiesel Production Technology Anaerobic Digestion Biodiesel Biomass Gasification Core Technologies for Bioethanol Micro - organism Genomics Conversion Cogeneration Technology Commercialization Study Feed Stock Supply Management of Organic Waste Biomass Pretreatment Plant Science (Outsourcing) Feedstock Production (Outsourcing) Energy Crops Waste Sugars Bioethanol

22. The 2 nd APEC Biofuels Task Force Meeting, 9-10 October 2006 Summary Biofuels for transport are getting more important in Korea due to high oil price and Kyoto protocol. Biofuels will take the major portion (over 60%) of the total bioenergy supplied by 2011. Utilization of the domestic biomass resources (Energy crop and the forest products) will be realized in near future. Korean Bioenergy Technology Road Map has been established to conduct R&D program efficiently.