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The Biodiesel market in Germany
rapeseed
sunflower
III German-Brazilian Workshop on
Biodiesel Fortaleza, July 1, 2004,
linseed
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Marketing of Biodiesel in Germany

• political framework for biofuels
• market potential for Biodiesel in Germany
• production capacities
• market supply
• Biodiesel actual situation 2005
• Outlook/future market

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Biofuel strategy of the Federal Government

• Decision of the Federal Government of the 27.
  October 2004
• Biofuels were detected as important alternatives
  to fossil fuels
• targets of the fuel strategy and main steps for
  the future
• - innovation, economy, promising alternative
  fuels, potential
• of biofuels
• - detection of measures to implement
  economically promising
• biofuels in the market
• - more efficiency in the use of traditional
  fossil fuels
• - Hybrid vehicles
• - BtL fuels
• - Hydrogenous fuels
• - biofuels (1. generation) like Biodiesel and
  Bioethanol are for
• short and medium term the only available
  fuels with a
• greater potential

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EU-biofuels directive No. 1

• Council-Directive 2003/96/EG
• member states may reduce their taxation on
  biofuels up to 100
• tax reduction may only apply to pure biofuels
  and to the biofuel content of mixed fuels.
• tax reduction has to be checked each year, to
  prevent overcompensation
• if overcompensation is realized tax reduction
  has to be adopted each year if necessary

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• EU-biofuels directive No. 2

• Council-Directive 2003/30/EG
• biofuel part of total fuel-consumption in each
  member state should reach at least 2 in 2005
  and 5.75 in 2010
• Member states have to make their own plan how to
  reach these targets.
• Member states have to give a report about the
  development of biofuels in their markets to
  the commission up to the 1. July yearly
• If the commission recognizes that member states
  will not reach the targets, she can make
  proposals how to react in these special markets

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25.06.05
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• German biofuels regulations

• Since 01.01.2004 Germany has implemented both
  directives into national legislation
• 1. Step tax liberalisation on both, pure
  biofuel and biofuel content in
  mixtures until 2009
• 2. Step the first target for 2005 is 2
  biofuel content of the whole
  fuel consumption in Germany
• (1,2 million tons of substituted fossil fuels in
  Germany)
• 3. Step in 2005 the second target for 2010
  will be defined
• (3,6 million tons of substituted fossil fuels in
  Germany)

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25.06.05
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Biodiesel potential (rape oil based)
Total potential of oil production r.a. 2.5 2.6
mio. tons
Arable area 11,8 mio. ha 15 rapeseed area 1,8
mio. ha Yield 1400 ltr/ha
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Biodiesel capacity in Germany
planned 300.000 tons/a
actual capacity 1.197.000 tons/a
2006
2005
2004
in constriction 736.000 tons/a
End of 2006 possible capacity 2.2 mio tons/a
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25.06.05
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Biodiesel market supply in 2004
Total fuel consumption 2004 54.3 mio. tons
Diesel fuel consumption 2004 28.6 mio. tons
Biodiesel production capacity 2004 1.20 mio.
tons
Biodiesel consumption 2004 1.05 mio. tons
penetration of diesel market 3,4 (energy
content)
penetration of total fuel market 1,7 (energy
content)
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25.06.05
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Biodiesel market supply in 2010
Biodiesel production capacity 2010 2.20 mio.
tons
Biodiesel consumption 2010 2.00 mio. tons
penetration of diesel market 6.6 (energy
content)
penetration of total fuel market 3.4 (energy
content)
Honecker, BMVEL, Ref 535
25.06.05
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Biodiesel market 2004
Biodiesel production capacity 1.20 mio. tons
Biodiesel imports from EC member states 0.20
mio. tons
Biodiesel consumption 1.05 mio. tons
2005 capacity of Biodiesel in Germany is not
running with 100
Result price is under pressure
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25.06.05
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Biodiesel market 2005
Biodiesel 1,05 mio. tons
40 use in closed fleet (lorries)
30 direct use in cars
30 mixed in refineries
Orientation at price of fossil Diesel fuel
at filling station
Pricing is depending on delivered quantity
Big quantities are ordered, so price is low
-

Pressure on price
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25.06.05
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Biodiesel outlook/future market
B 100 not for new EURO IV since 01.01.2005 cars
because of technical problems (dust particle
filters etc.)
2.0 mio. cars produced before 2005 are warranted
for Biodiesel, amount will drop because of
subsidies for dust particle filters

• Two future markets
• Biodiesel for direct mixture in petrol refineries
  (5 mixture)
• Biodiesel for heavy duty vehicles (lorries, buses
  and tractors)

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25.06.05
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The Biodiesel market in Germany
Biodiesel
Ladies and Gentleman Thank You for your attention
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25.06.05