IIP Utilization of renewable raw materials in Germany Martina Haase, Rebecca Ilsen, Magnus Fröhling Institute for Industrial Production, Universität Karlsruhe (TH), Germany IIP Institute for Industrial Production (IIP) ord. Prof. Dr. rer. nat. O. Rentz

Outline Overview of the use of renewable resources in Germany Energetic use Non-energetic use Motivation and general framework for the increasing use of biomass Usage competition Legal framework Techno-economic and ecological evaluation of biomass utilization pathways Conclusion

Situation of the German renewable energy sector volume of international renewable energy markets highly increasing German renewable energy industry has a good market position and is seen as technology leader in many areas. Strengths: technological innovation, product quality, system-know-how, references from home market, experiences in application. Source: UBA, BMU 2007 World market Billion € Hydropower (large) Wind energy Photovoltaics Solar thermal energy Geothermal energy Biomass Hydropower (small)

Energetic use of renewable resources (1)

Energetic use of renewable resources (2)

Energetic use of renewable resources (3) Structure for the provision of final energy from renewable resources in Germany (basic year 2007): nearly 70% of renewable energy is delivered from biomass utilization Biomass is mainly used for heat and fuel generation for electricity production wind energy and hydropower are the most important renewable resources Source: BMU 2008 7,6% of the fuel consumption is provided by biofuels in 2007 therein more than 70% is biodiesel biodiesel is produced mainly from rape available at 1900 fuel stations biofuels of 2nd generation not yet available Structure of biogenic fuel in Germany, 2007 Source: BMU 2008

Energetic use of renewable resources in Germany - heat Approximately 1370 TWh heat are annually generated in Germany (basic year 2007) Ca. 7% of the entire heat generation are provided by renewable resources (basic year 2007) Structure of the heat generation from renewable resources in Germany 2007 Source: BMU 2008

Non-energetic use of renewable raw materials - wood The usage of inland wood accounts for ca. 106 mill. m3 (ca. 42 – 80 Mt) (base year 2005)1 Additionally ca. 78 mill. m3 of semi-finished wood are imported (base year 2005) The non-energetic use of wood accounts for approx. 146 mill. m3 wood (base year 2005) Sawmill and veneer industry: 37,2 mill. m3 Derived timber product industry: 20,5 mill. m3 Pulp and paper industry : 9,8 mill. m3 Semi-finished wood (imports): 78 mill. m3 On the other hand ca. 40 mill. m3 wood are used for electricity and heat generation.2 Usage competition between energetic and non-energetic use: 1 1 m3 wood = 0,4 – 0,77 t wooddry 2 including forest wood, pulpwood and old forest Source: FNR 2007

Non-energetic use of renewable raw materials Ca. 2.7 mill. t of renewable raw materials are used in the industry per year Thereof ca. 2 mill. t are used in the chemical industry and ca. 0,7 mill. t in the pulp and paper industry (base year 2007) Raw material Amount [t] Vegetable oils 800.000 Starch 630.000 Animal fats 350.000 Cellulose 320.000 Sugar 295.000 Natural fibres 176.000 Others 117.000 TOTAL 2.688.000 Raw material proportions of the chemical industry in Germany (basic year 2007) Renewable raw materials in the chemical-technical area Sources: FNR 2007, VCI 2008

Biomass utilization pathways in Germany Process steps Products Application corn, liquid manure, sewage sludge, Biowaste Anaerobe fermentation Biogas Methane heat and electricity: 950 MW in 3300 installations Oil plants (rape, sunflower) Oil mill, Refining, Transesterification FAME (biodiesel) fuel: cars for B100 available, good infrastructure fuel: Flexible-Fuel-Vehicles for E85 available Infrastructure: 75 petrol stations for E85 Cereal, Sugar beet Enzymatic hydrolysis, Fermentation, Distillation ethanol fuel: 2 pilot installations Choren, Freiberg FZK, Karlsruhe Gasification, Synthesis Btl-fuel SynFuel Straw, wood platform chemicals (e.g. ethanol, lactic acid) Disintegration, Enzymatic hydrolysis, Fermentation Wood Research projects

Biomass Usage competition Land use Energetic vs. non-energetic use Increase of the cultivated area for renewable raw materials in Germany: from ca. 290.000 ha in the year 1993 to ca. 2 mill. ha in the year 2007 (approximately 17% of the agricultural crop land in 2007) In 2020 3,5 m ha might be available for biomass production because of increase in production efficiency decrease in population in Germany reduction of European food overproduction if 3,5 m ha were used to produce BtL-fuel, 25% of German fuel consumption could be substituted. 1993: 85% of this area served for the material utilization 2007: only about 13%. In particular increase of the cultivated area for rape for the production of biofuels (ca. 1,1 mill. ha in the year 2007) Especially vegetable oils and starch (from rape and cereals) do also represent important industrial raw materials Source: FNR 2007, BMU

General Framework for an increasing use of biomass Motivation Replacement of limited fossil raw materials Reduction of dependence of crude oil imports Reduction of greenhouse gas emissions Biomass represents a renewable but limited resource Competition for land use and between different utilisation pathways requires an efficient and sustainable use of biomass Constraints

Legal framework for the use of biomass Guideline 2003/30/EG: Increase of biofuels on the fuel market to 5,75 % until the end of 2010 and to 10 % until the end of 2020 and others D: BioKraftQuG: a given part of fuel sold has to be biofuel EnergieStG: no or less tax on biofuels compared to fossil fuels EEG: fixed purchasing prices for electricity from renewable sources Financial investment programs BioNachV: Regulation of sustainability of biomass for the certification of biofuels (concept October 2007) Sustainable cultivation of agricultural areas Protection of natural habitats Potential for the reduction of greenhouse gas emissions.

Techno-economic and ecological evaluation (1) Estimation of the economic efficiency and the environmental effects of process chains for the use of biomass Identification of economic and ecological key factors to ensure sustainability Process determination Modelling of material and energy flows along the whole value chain Identification of key factors Estimation of investments and total costs Estimation of environmental impacts Location and logistics planning Sensitivity analysis

Techno-economic and ecological evaluation (2) Economic evaluation Environmental impacts Estimation of the necessary investments: Individual identification of investments for the main plant components Application of economies of scale Determination of annual overall costs of the process chain: Investment dependent costs (depreciations, interests,...) Operating costs (costs for raw materials, electricity, etc.) Labour costs Costs for transportation Revenues for by-products Methodology for life cycle assessment (LCA) according to the European standard DIN EN ISO 14040 and 14044 Goal and scope definition for life cycle inventory analysis Selection of adequate impact categories, e.g. Climate change Eutrophication Acidification Identification of relevant material and energy flows and conversion to indicator values, e.g. CO2 equivalents) Cultivation of biomass Production process Use of product Transport Emissions (CO2, NOx, NH3,...) Energy Operating materials

Summary and conclusion Biomass is used energetically as well as non-energetically in Germany The increasing use of biomass is supposed to reduce the dependence on crude oil imports and to assure the raw materials supply New utilization concepts amplify existing biomass usage competitions The techno-economic and ecological evaluation at an early stage of process development aims at the identification of sustainable ways of biomass utilization Identification of reasonable biomass utilization paths in respect of local conditions (available technologies and feedstock potentials)

Thank you for your attention. IIP Institute for Industrial Production (IIP) ord. Prof. Dr. rer. nat. O. Rentz Hertzstr. 16 76187 Karlsruhe Germany Dr. rer. pol. Magnus Fröhling +49 (0)721 608-4400 magnus.froehling@wiwi.uni-karlsruhe.de Dipl.-Umweltwiss. Martina Haase +49 (0)721 608-4467 martina.haase@wiwi.uni-karlsruhe.de Dipl.-Wi.Ing. Rebecca Ilsen +49 (0)721 608-4589 rebecca.ilsen@wiwi.uni-karlsruhe.de