Bioenergy and Climate Protection Programme of the Federal Government Clemens Neumann, BMELV 12' Nove

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Bioenergy and Climate Protection Programme of the
Federal Government Clemens Neumann,
BMELV12. November 2008
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Main reasons behind political action towards
bioenergy

• Environmental/climate protection
• Security of energy supply
• Total share of energy imports in Germany 70
• Import share oil almost 100
• Additional income for farmers and foresters
• Employment in rural regions
• Technological development

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Energy- and Climate-Programme

• Förderung der Kraft-Wärmekopplung und Ausbau des
  Nah- und Fernwärmenetzes
• Better integration of renewables in the
  electricity-net
• Promoting programs
• Feed-in regulations für biogas in NG-net
• Renewable-Energy-Heat-Regulation
• Strengthening RD aiming better climate
  protection and energy-efficiency (part of
  high-tec strategy)
• Realisation of international projects, close
  political dialogue and cooperation in RD

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European Objectives

• European Council March 2007
• CO2 reduction (binding) 20 by 2020
• if other industrialised countries take part 30
  by 2020
• Share in renewable energies
• of total energy consumption 20 by 2020
• Share of renewables in transport 10 by 2020

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Cultivation area of bioenery
Quelle BMELV, BLE, FNR
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Renewable Energy in Germany in 2007
Share in renewable energy of primary consumption
of total energy 8,6 Share provided by
biomass 5,9
Kraftstoffe
Biofuels 100 (no other renewable source
available)
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Current Situation
Share of Bioenergy in Renewables Use 2007 8.6 of
energy is covered by renewables, of which 69 is
biomass
Source AGEE-Stat
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Biofuels in Germany
Share of biofuels (energetic) 2005 3,6
2006 6,3 2007 7,3
in 1000 T
Quelle BAFA/FNR (Werte 2007 Schätzung)
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Fuel standards

• Blendings in Germany
• It is allowed to blend fossil fuels with up to 7
  (vol.) biodiesel or 5 bioethanol
• Progress on E10 is stopped, because of risks of
  damage
• for more than 3 mio. cars.

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Biofuels Quotas Act / Energy Taxation Act

• Biofuels Quotas Act (December 2006)
• Intention Increasing share of biofuels to gt
  6,25 by 2015 (relating to energy content)
• Fuel selling enterprises are obligated to sell a
  minimum quota of biofuels
• Biofuels are fully taxed within the quota
• Pure biofuels enjoy tax privileges until 2012
• E85 and the 2nd generation of biofuels enjoy tax
  exemption until 2015
• (pure as well as in blendings)
• Pure biofuels used in agriculture remain
  tax-exempt

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Framework Conditions for Biofuels Germany

• Biofuel Quota Act (Jan 2007)
• Introduction of biofuel quotas for
• Producers and traders of Diesel fuel and gasoline
• Producers of biofuels (biodiesel, vegetable oils)
• Quotas related to energy content

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Energy Taxation Act (August 2006)

• Until July 2006
• Compensation of cost disadvantages of biofuel
  production plus small incentive
• Since August 2006
• Avoiding overcompensation of fiscal support
• Gradual increase of taxes for biodiesel and
  vegetable oil fuel
• Adjustment of fiscal support of biofuels due to
  changes in
• cost structures

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Framework Conditions for Biofuels Germany

• Energy Tax Act (Aug 2006)
• Since Aug 2006 taxation of pure biofuels
• Tax exempted
• 2nd generation until 2015
• Biofuels used in agriculture and forestry

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Market Incentives Programme

• Promotion of heat generation using renewable
  energy sources.
• Investment grants .
• KfW programme .
• From 2009 up to 500 mln. p. a.
• Apart from basic subsidies, an innovation bonus
  provides for higher subsidisation of things like
  additional emission reductions and improved
  efficiency, large solar collector systems,
  process heat and the use of biomass in schools
  and churches.

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ELECTRICITY Renewable Energies Act (EEG)

• July 2004 effective instrument in electricity
  generation from RenEn
• Applies to wind, solar, biomass, geothermic
  energy
• Guarantee of feed-in of produced electricity from
  renewable energies
• Feed-in tariff depends on plant-capacity/size,
  used technology and thermal utilization
• The Renewable Energy Sources Act (EEG) was
  amended in 2008 based on the results of an
  evaluation report (2007)
• Guaranteed payments will range from 3,5 (huge
  hydropower) to 43,01 ct/kWhe (small solar on
  buildings).
• An extra bonus is guaranteed for renewable raw
  materials (2,5-11 ct/kWhel) (biomass grown
  exclusively for energy use use of residual and
  secondary products is allowable but is not
  subsidised) or combined-heat and power generation

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Sustainable biomass production

• EU/Germany Imports of biomass are increasing.
• increasing critics in media and public
• Biomass production under doubtful conditions
• Biomass production in connection with clearing
  tropical rainforests
• Objective
• Setting up a certification system for biomass
  production
• which is valid around the world.
• German government is working together with
  European partners and producer countries and
  encourages discussion on the international level
  (FAO/ Global Bioenergy Partnership).

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National measures to ensure sustainable biomass
production

• Biofuels Quota Act
• The Biofuels Quota Act includes the possibility
  to add sustainability
• regulations as precondition for later promotion
• Biofuels have to meet certain criteria
• Requirements of a sustainable land-use of
  agricultural area and
• Requirements of protection of natural habitats
  and
• Special potential of Green House Gas reduction
  (30 to 40 )
• Sustainable production will be necessary to
  obtain support (tax and quota)

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Discussion Biofuels vs. Food

• Thesis Increasing food prices caused by demand
  for biofuels
• Fact is
• Biofuels only have little influence
• Main reasons for increasing food prices in the
  past are
• Global increasing demand for food and feed
• Change in consumption habits (more meat in
  developing countries)
• Bad harvests caused by weather
• Low stock levels
• Effects caused by venturers

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Research and Development (BMELV)

• Actual focus points
• BtL (Research and Development)
• Biomass combustion Reduction of dust emissions
• Innovative utilisation of biogas
• Biogas production Process optimisation in fields
  of microbiology
• and process control
• gt Agency for Renewable Resources (FNR)

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• So finally the aim of our policy is to avoid the
  following

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• Thank you for your attention!