Biodiesel

Biodiesel refers to a group of esterified vegetable oils (or fatty acids methyl esters, FAME) produced from different oil-containing crops. Modern biodiesel development started in Austria around 1982, with four aims:

• to provide a secure supply of liquid transport fuels;
• to create an environment-friendly fuel for diesel engines;
• to reduce health and safety risks;
• to provide customers with a reliable fuel at a reasonable ratio of costs to benefits

Biodiesel Market

The biodiesel market in Europe is has experienced impressive growth over the last 2 years, 65% (2005) and last year, 54% (2006) and at present there are 185 biodiesel plants operational in Europe today (July 2007) with a further 58 plants under construction.  In terms of production the European total in 2006 reached 4.9 million tons and the reported capacity in 2007 is reported as 10.2 million tons.  In global figures, European biodiesel represents 77% of the world’s production.  Despite this success story the EBB (European Biodiesel Board) has sent out warnings this expansion could well collapse due to insufficient member state support, or European legislation and slow European Standards reforms for biodiesel.

EBB reports that in order to meet the 2010 and 2020 targets for biofuels, there is a need for ‘urgent’ action for efficient legislation that encourages a real market of producing and selling biodiesel.  As there are a number of countries in which have had ineffective legislation in this areas such as Italy, Poland and Spain.  The EBB also stresses the importance of reforming the EN590 Norm (with no labelling) which dictates the volume of biodiesel permitted in fossil diesel fuel at 5%.  EBB wants to see this raised to a 10% mix by 2010 and a 15% mix by 2015.  Some Car manufacturers are opposed to increasing the permitted incorporation rate.  However, they need to start adapting the technology to be more flexible.  EBB warns that if CEN (European Standards Authority) does not make any meaningful changes, legislation on the European level, such as the fuel quality Directive 98/70, could be one solution.  Otherwise the progress in the diesel market is destined to suffer over the next 2 years.

The main problem in the sector at present is B99, exported biodiesel from the USA which is massively subsidised on a federal level, undercutting and stifling the EU biodiesel market.  The subsidy in the US amounts to a competitive advantage of around 200€/m3 which allows them to export biodiesel even below the EU price for the raw material.  The EBB is seeking urgent intervention from the WTO on this ‘international trade violation’ (EBB, July 2007).

	Feedstocks for biodiesel production in Europe

Feedstocks
Biodiesel is produced from vegetable oils, which are derived from the seeds or the pulp of a range of oil-bearing crops. These oil crops can be annual (rapeseed, sunflower, groundnut, soybean) or perennials (oil palms, coconut palms, physica nut, Chinese tallow tree). Oil from the rapeseed was the first type used for biodiesel production. Somewhat by chance, this oil is highly suitable, and it is still the main source of quality biodiesel. Today in Europe, rapeseed is still the main feedstock for biodiesel production. Rapeseed is grown throughout Europe, while sunflower seed crops are grown in the warmer areas only.

Biodiesel production in the European Union (EU25)

For the production of 1 ton of Rapeseed Methyl Ester (RME), about 2.5 tons of rapeseed are needed, which requires a land area of 0.77 hectares. More precise data are given below according as a function of the region.

Biodiesel from rapeseed oil shows good stability and winter performance because the oil contains around 60% mono-unsaturated oleic fatty acids and only around 6% saturated fatty acids. New varieties contain up to 87% mono-unsaturated oleic fatty acids. Over time, many other oils have been used successfully as biodiesel feedstocks. They include sunflower oil in southern France and Italy; soybean oil in the USA; and palm oil (e.g. in Malaysia). Recycled cooking oil can also be used; this technology was commercialised in 1998-99 during a time of high oilseed cost and record-low diesel prices.

Average oilseed yields in the EU-25

Source: EUROSTAT (data are average on the 2000-2003 period)

Potential biodiesel yields from rapeseed and sunflower in some of the EU-25 member states