Challenges and Opportunities for Advanced Biofuels: An Oil...

ENVIRONMENTAL SCIENCE FOR THE EUROPEAN REFINING INDUSTRY

Challenges and Opportunities for Advanced Biofuels: An Oil Industry Perspective

Heather DC Hamje

Science Executive, Fuels Quality and Emissions

CEI/JRC Workshop

26th March, 2015

Challenges and Opportunities for Advanced Biofuels: An Oil Industry PerspectiveHeather Hamje

2

Reproduction permitted with due acknowledgement

CONCAWE: Research in Diverse Areas

� Automotive Emissions & Fuel Quality

� Air Quality

� Water/Soil Quality & Waste

� Oil Pipelines

� Safety

CONservation of

Clean

Air and

Water in

Europe

The Oil Companies’ European association for health, safety and environment in refining and distribution

(founded in 1963)

Operating Principles:

� Sound science

� Cost-effectiveness of options

� Transparency of results

� Refinery Technology Support

� Health Science

� Petroleum Products

� Risk Assessment

� REACH & GHS Implementation


3


Schematic of the Fuel Distribution System

Blending Terminals

Refineries

Filling Stations

Pipelines, ships,and trucks

Trucks

Guided by standards, test methods, and procedures…..and informed by experience!

FAMEEther

Ethanol

Airports


4


Outlook for Future Fuels, Vehicles and Lubricants in a low GHG Environment Heather DC Hamje, CONCAWE

�

�Reproduction permitted with due acknowledgement

� 116 Refineries in EU-27 (2007) � 767 Million Tonnes/year Refining Capacity � 18% of Global Refining Capacity

�5 2

�2

�0

�1

�0 Russia: 40 �2

�2�4

�6�1 11

�4 �15 �4

�1 �6

13 �2

�10

�3

�1

�21

�17

�2

�1

�2�9

�4 �6

Concawe, 2013

European Refineries


5


European pipeline s

�Reproduction permitted with due acknowledgement

Outlook for Future Fuels, Vehicles and Lubricants in a low GHG Environment Heather DC Hamje, CONCAWE

�2

35,400 kilometers total length

Total pipeline volume about 800 billion litres: 500 billion litres of crude oil

300 billion litres of refined products

159 pipeline systems

74 operating companies

Concawe

European Pipeline system


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More than 130,000 EU Filling Stations

�About 25 million vehicles refueled each day!

Source: National Oil Industry Associations (NOIA) (2007)

0 5,000 10,000 15,000 20,000 25,000

AustriaBelgiumBulgariaCyprus

Czech RepublicDenmark

EstoniaFinlandFrance

GermanyGreece

HungaryIreland

ItalyLatvia

LithuaniaLuxembourg

MaltaNetherlands

PolandPortugalRomaniaSlovakiaSlovenia

SpainSweden

United KingdomNorway

Filling Stations

Not availableNot available

Not available

Not available

Not available

Not available

Not available


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How Much Fuel Is 300 Million Tonnes per Year?

Arc de Triomphe(50m x 45m x 22m)

Eiffel Tower(300m x 100m x 100m)

� It’s about 1 Billion litres per day!

� About 21 times the volume ofthe Arc de Triomphe!

OR

About the same volume asthe Eiffel Tower!


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Energy Efficient

Road Transport Vehicles

FQD

REDClean Power For Transport

EU Legislative Framework for GHG Reduction

CCS

ETS

NREAP

CEN

� In January 2014, a new mandatory emissions reduction target of 40 per cent was announced for 2030� An EU-wide target of 27 per cent has been set for renewable energy

AlternativeFuelsInfrastructure


9


GHG Reduction Challenge for Road Transportation

Refining~9 %

Crude Production~7 %

Distribution & Retail ~1%

Combustion of unit of energy ~83%

Source: For conventional vehicles and fuels: JRC/EUCAR/CONCAWE Well-to-Wheels Study (2011)

Well-to-Tank (WTT)~17% (production side)

Tank-to-Wheels (TTW)~83% (consumption side)

Refinery Efficiencies

BiofuelBlending

Reductions in Upstream

Flaring & Venting Emissions

CO2 Capture& Storage

CrudeSelection

Transport Management & Logistics

Hybridisation and

Alternative Vehicles

Advanced ICEs


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� Two broad options� Improve vehicle efficiency� Reduce carbon footprint of fuel

� Whole vehicle integrated approach needed to meet targets

Improved Vehicle Energy EfficiencyLow Carbon Vehicle

Conventional Vehicle

Reduce Carbon in Fuel

Friction reduction Energy recovery

Low CO2 Electricity Biofuels Alternative fuels

Reduce thermal losses

Source: Ricardo

Technical Options for reducing CO2


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Biofuel Options are Available

Gasoline - like Diesel - like AlternativesD

iffe

ren

t to

P

etro

leu

m F

uel

sR

esem

ble

P

etro

leu

m F

uel

s

BTL

Biodiesel created from biomass to liquid process

FAME

Biodiesel made from transesterification of vegetable oils

HVO

Biodiesel made from hydrogenation of vegetable oils and animal fats

BiodieselBiodiesel from pyrolysis of

lignocellulosic material

Butanol

Fermentation of sugar/starch crops

DME

Produced from the dehydration of methanol. Can be used in diesel and petrol engines.

Ethanol

Fermentation of sugar/starch crops or lignocellulosic material

Biogas

Methane created from biomass

Hydrogen

Created from bio-materials, can be used in fuel cells or ICEs

Methanol

Fermentation of sugar/starch crops

Algae Fuel

SVO or transesterification into Biodiesel. Carbohydrate content fermented into ethanol and butanol

Source: Ricardo


12


European Union Refinery Supply Balance

-100

-80

-60

-40

-20

0

20

40

60

LPG Naphtha Gasoline Jet/Kero Diesel Gasoil LSFO HSFO

Bal

ance

s, M

t .

2000 2005 2010 2015 2017 2020 2025

Surplus

Deficit

Source Wood Mackenzie (2011)

Deficit

� Diesel/gasoline imbalance gives opportunity for biodiesel


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Principles for Fuel Standards

� Refining industry supports European-wide fuel standards because they help to ensure that the same fuel properties and performance levels apply in all European markets

� OEMs also support them as less variability in the fuel allows them to produce engines with improved performance

� Changes in specifications should be fact-based and supported by the best available technical data

� Proposed changes should produce fuels which are ‘fit for purpose’ and should not impact the performance of the current fleet

� All fuel specification values should be reconsidered when anticipating a major change in fuel composition


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MajorProductQuality

Incidents

Minor Product Quality

Incidents

Near-MissProduct Quality

Incidents

Product Quality Monitoring

Ensuring Fit-for-Purpose Fuel Quality

� Product Quality Professionals

� Properly Trained

� Supported by Procedures and Equipment

� Learning from Field Experience

� Fuel Specifications

� Performance-based and technically robust

� Supported by relevanttest methods

� Routine Monitoring

� European Fuel Quality Monitoring System

� CONCAWE, Company, & Subscription Surveys


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Ensuring Quality through Specifications

� Guiding Principles for European Fuel Quality Specifications:

� Enable regulatory priorities and vehicle improvements

� Ensure “fit for purpose” fuels and bio-blendstocks

� Are based on relevant and technically robust analytical methods

� Provide an appropriate margin for supply and distribution

� Are developed with extensive stakeholder participation

� Anticipate manageable transitions from today to tomorrow

� CEN Standardization Process meets these Guiding Principles:

� Ensures that fuels can be readily exchanged between Member States without quality or performance concerns

� Provides robust standards for adopting in-country specifications

� Specifies the fuel qualities that are required to ensure long-term vehicle and aftertreatment performance

� Enables the design of new vehicle/aftertreatment technologies needed to meet today’s emissions standards and anticipate tomorrow’s


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Standards for Biofuel Blends used in Europe

� Bio-components:� Ethanol, for gasoline blending (EN15376)� Fatty Acid Methyl Esters (FAME, EN14214)� Hydrogenated vegetable oil (TS15940)

� Gasoline (EN228)� E5: up to 5% v/v ethanol & up to 2.7wt% oxygen (‘protection grade’)� E10: up to 10% v/v ethanol & up to 3.7wt% oxygen

� Diesel Fuel (EN590)� B7: 7% v/v FAME in diesel fuel� B10: CEN/TC19 under development� Up to B30: Under development for dedicated fleet applications� No limits on advanced diesel blending components (HVO) in EN590

although practically there are some limitations

� Aviation fuel – DEFSTAN 91-91 & ASTM D1655� up to 50ppm now allowed (previously <5ppm)

� FAME containing standards being developed by ISO for marine use� marine distillate (up to 7% proposed), bunker fuels (up to 0.5%)


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The JEC research collaboration was initiated in 2000 by:JRC: Joint Research Centre of the European CommissionEUCAR: European Council for Automotive R&DCONCAWE: Research Association of the European Oil Refining Industry

JEC Consortium: WTW, Biofuels, and Energy

Collaborative Projects

� 2000-2014: Projects Completed� Well-to-Wheels (WTW) Study Versions 1, 2b, 2c, 3� WTW Study Version 4: enhancing pathways and vehicles� Impact of ethanol on vehicle evaporative emissions (SAE 2007-01-1928)� Impact of ethanol in petrol on fuel consumption and emissions� JEC Biofuels Study for a 2020 time horizon (2011, updated in 2014)

� http://ies.jrc.ec.europa.eu/about-jec� 2015: Projects in progress

� Expected update 2017-18: JEC WTT, TTW and WTW Reports (Version 5)� Planned update 2016: JEC Biofuels Study


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Total EU Road Energy Development

Source: JEC (2014)


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Process Technology (examples)

Conventional Advanced

Pro

cess

Feedst

ock

(e

xam

ple

s)

Co

nve

nti

on

al

(ILU

C r

isk

)Ethanol from fermentation; FAME from vegetable oils

Not eligible for multiple counting

HVO from vegetable oils

Not eligible for multiple counting

Ad

va

nce

d

(lo

w I

LU

C

risk

)

FAME from waste oil

Eligible for multiple counting (1)

LC-ethanol from strawBiomass-to-Liquid from residue;

HVO from waste oilEligible for multiple counting (1)

JEC Biofuels Study: Some Definitions

Adv

ance

dbi

ofue

lsC

onve

ntio

nal

biof

uels

Non-conventional biofuels (1) Note that the “multiple” counting factor can be x1 for some advanced biofuels in the EP 1st reading

� JEC definition of Advanced Biofuels is on the basis of “Biofuels produced from low ILUC risk feedstocks regardless of the technology”


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Supply Outlook for Advanced Biofuels

14,1

3,0

0,4

Bio-diesel in 2020

[Mtoe]

FAME HVO BTL

2,7

0,6

0,3

Bio-gasoline in

2020 [Mtoe]

Conv. Ethanol

Adv. Ethanol

Butanol

Source: JEC (2014)


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Sustainability of Alternative Fuels is Pathway Dependent

Syndiesel/DME ex-coal

CBG

Gasoline/Diesel/CNG

Ethanol (wheat)

2020+ Vehicles

Source: JEC WTW v4a report


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Biofuel Sustainability Certification

� Biofuels can bring environmental benefits but a robust and implementable certification system is needed to:� Encourage biofuel technology improvements that reduce GHG emissions

and energy on a Well-to-Wheels basis� Avoid major biodiversity loss and deforestation


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Biofuel Sustainability Certification

� Ideal characteristics of sustainability certification schemes:� Clearly demonstrate the environmental benefits, including favourable

reductions in GHG and energy� Common approach across European countries with the potential for global

reach� Chain of custody scheme to ensure that relevant information is passed

along the chain from production to use� Measurement, auditing, and verification methodologies

� 19 Sustainability Certification Schemes are currently approved by the EC� Need for further harmonization

� CEN approved ‘Sustainably-produced biomass for energy applications’ (2012): Part 4. Calculation methods for GHG balance (EN16214) � But no requirement to use CEN standard

� There appears to be other sources of variability between schemes� e.g. interpretation of RED requirements, which give different results

depending on the scheme methodology


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Summary

� Advanced biofuels are a necessary part of measures to meet transportation GHG reduction targets on a well to wheels basis� Definition of advanced biofuels should focus on low ILUC feedstocks

regardless of technology employed

� Fit-for-purpose needs to be ensured in incorporating biofuels into the fossil fuel pool by use of:� Fuel and biofuels specifications� Routine monitoring

� WTW GHG reduction and energy consumption in production should both be considered when choosing feedstocks �highly pathway dependent

� Bio-certification schemes are in place but there appears to be additional sources of variability between schemes apart from GHG calculations� Use of the CEN standard should be encouraged� Need for review of current practices and additional measures to ensure

harmonization put in place


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Thank you for your attention!

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