Biofuels

Biofuels are alternative fuels for transport made from organic, therefore renewable, material.

They are by no means a recent invention, as their use in cars dates back to the early days of motorised transport when in the USA ethanol and peanut oil were used for prototypes and engines already the 19^th century.

Today, the biofuels most widely used for transport are bioethanol and biodiesel. On a global scale bioethanol is the preferred biofuel (90%). However, the European biofuel market is still predominantly a biodiesel market (80%).

Key benefits of biofuels

Biofuels have a unique role to play in European the European energy mix in order to:

• Tackle climate change: the raw materials used for biofuels production absorb CO2 through the process of photosynthesis during their growth. Therefore, biofuels do not contribute to global warming and actually help reduce its the levels of CO2 released into the atmosphere.
• Contribute to European energy independence and security: domestically produced biofuels are a renewable alternative to fossil-derived petrol and diesel or natural gas, and reduce the EU’s heavy dependency on imported transport fuels (98% for this sector).
• Create employment in rural areas: biofuels production has a positive impact on employment in rural areas and offer scope for technological development, especially in the case of advanced biofuels.
• Real alternative: biofuels are today the only direct substitute for oil in transport that is available to users on a significant scale. Biofuels are currently used in ordinary vehicle engines, either unmodified for low blends, or with simple modifications to accept higher blends.

 

Bioethanol

Bioethanol provides a renewable alternative to fossil derived gasoline and is the leading biofuel globally. Bioethanol is a renewable fuel manufactured through the fermentation of sugars. Today this is done by accessing sugars directly (sugar cane and beet) or by breaking down starch in grains such as wheat, rye, barley or maize to sugar. In the EU bioethanol is mainly produced from grains, with wheat as the primary feedstock.

EU law permits up to 10% bioethanol blends in petrol; Bioethanol can also be used in much higher concentrations in adapted cars such as E85 vehicles, which run on a blend of 85% bioethanol and 15% petrol. Pure ethanol fuels certain types of buses and tracks in Europe.

Compared to the USA and Brazil, but also to the European biodiesel sector, the EU bioethanol fuel sector is relatively small. The USA is the main producer of bioethanol worldwide, followed by Brazil, while in the European Union biodiesel is still the predominant biofuel. However, bioethanol is the only fuel that can be used in petrol-powered cars directly for low blends, and via simple engine modification for higher blends.

Since 1993 the European bioethanol production has experienced constant growth, which has reached double-digit levels in the last few years, thanks to the ambitious targets in biofuels set by some European countries. Forecasts for the next decade see bioethanol as a strong developing sector, mainly due to the targets imposed upon EU member states by the Renewable Energy Directive.

 Biodiesel

Biodiesel is the renewable transport fuel that can replace diesel in road transport vehicles, jet fuel for airplanes or diesel in power trains. It is derived from oil seed crops such as rapeseed or soybean, from oily plants such as algae or Jatropha curcas, from animal fats or used cooking oils, through the process called transesterification. In Europe biodiesel is mainly produced from rapeseed oil and to a lesser extent from sunflower oil.

In the European Union biodiesel is today used in road vehicles blended up to 7% with diesel, while in captive fleets (i.e. urban buses) biodiesel is used in higher blends up to 100%. With minor engine modifications (i.e. synthetic rubber fuel lines and seals), biodiesel can be used to fuel passenger cars in high blends as well.

Today the European production of biodiesel is the highest in the world, accounting for almost 80% of the global production. Germany, France and Italy are pioneering the greening of transport within Europe, whilst other countries such as US and Argentina are also experiencing rapid development of their biodiesel industries.

The European biodiesel capacity and actual production have constantly increased since 2003 in order to reach indicative and mandatory targets in place. The industry is ready to face the challenge of replacing almost 10% of the estimated 2020 European transport fuel consumption, although international trade practices and the economic recession have slowed down the growth rate of the European sector.

 Biofuels in the EU legislation

The European Union established its first legal framework for biofuels in 2003 with the EU Biofuel Directive (Directive 2003/30/EC), which set indicative targets to promote the use of renewable fuels in the transport sector.

Facing the need for up-to-date law to regulate the use of renewable energy sources, the EU has recognised biofuels as a strategic tool to reduce greenhouse gas emissions from the road transport sector and to increase the security of energy supply. This led to the adoption in December 2008 of the Renewable Energy Directive (Directive 2009/28/EC) and the Fuel Quality Directive (Directive 2009/30/EC) – two major pieces of legislation for the biofuels industry.

On the one hand, the Renewable Energy Directive aims at reaching an overall 20% renewable energy target in the EU by 2020, and will drive the future biofuels policies of the EU member states. Its core elements are the 10% binding target for renewables in transport and the introduction of a comprehensive and unparalleled set of sustainability criteria that biofuels have to fulfil to be counted towards the target. Indeed, the European biofuels industry is firmly committed to regard sustainability as a key priority, respecting the most stringent environmental and social criteria.

The Fuel Quality Directive, on the other hand, sets technical specifications for fuels, together with a target for the reduction of life cycle greenhouse gas emissions.          

 

Employment and economic impact

On the whole, rural areas of Europe suffer higher than average rates of unemployment and underemployment. Those with jobs often receive incomes significantly below the EU average. European biofuel farming and processing brings more jobs, and increased wealth for rural communities.

According to Employ-RES, a recent study by the European Commission, reaching the 2020 renewable energy targets is expected to lead to around 2.8 million jobs in the renewable energy sector, and generate a total value added of around 1.1% of GDP.

Indeed, the biofuels industry’s commitment towards sustainability can help lead to a balanced development for the rural areas and decreased disparities among European regions.