Development Renewable Fuels Paper as Support to the UPEI 2050 Vision

by Eric van den Heuve (VOF studio Gear Up/UPEI) In the world and in the EU in majority fossil liquid and gaseous fuels are the dominant fuels used in the transport sector. Renewable fuels only contribute about 5-6% of total energy need. Worldwide ethanol is the largest renewable energy use, followed by biodiesel, other liquid fuels, renewable electricity and biomethane. In Europe biofuels replacing diesel are the largest used renewable fuel, while ethanol consumption is at about one fourth of that of biodiesel. Renewable electricity is still at low levels when viewing road transport and will still be at relatively modest share in 2030, leaving a necessary role for low-carbon liquid and gaseous fuels in transport. (see chapter 1)

The new Renewable Energy Directive (RED2) aims to achieve higher shares of renewable energy in transport by 2030. RED2 limits the use of biofuels produced from food and feed crops, as well as the use of biofuels based on used cooking oil and animal fats. This implies producing biofuels from other feedstocks, in particular waste and residue based biogenic resources. Subsequently this requires developments in new and/or adjusted conversion technologies to produce fuels that can be blended or used as drop in fuels. The identification of these feedstock technology combinations has only started recently and will continue in the next decade(s), as in many cases the technology status has not yet reached full market/commercial operation levels. (see Ch. 1 and 2)

RED2 foresees a role for synthetic, renewable, non-biogenic fuels and even recycled carbon fuels as a means to reduce further use of virgin fossil resources. (see Ch. 2)

Chapter 3 provides details on how the greenhouse gas saving is treated in the current RED and in the upcoming Red. It clarifies the difference between default values, typical values and actual values and provides clarity on the fossil fuel comparator and the threshold levels to be reached for biofuels to be characterized as sustainable.

While in this chapter to potential for waste-based methane, a gaseous fuel, is expressed, the chapter also highlights that for some of the new fuel categories – such as renewable fuels of non-biological origin, recycled carbon fuels, and co-processed biofuels – information from the European Commission is awaited (in the form of socalled delegated acts) in the next years to better understand how these technologies are expected to contribute in achieving climate neutrality in transport in Europe.

Chapter 4 provides clarity with respect to the production costs of new biofuel conversion routes. In general the cost of biofuel is mainly governed by the costs of the resource and the cost of capital for the conversion facility. With the intended switch to waste based feedstocks the resource cost may go down, though the cost of capital for new and more innovative technologies might be substantially higher.

Looking forward to 2030 and even 2050 (chapter 5) it is discussed that total transport volumes and the corresponding energy use might remain rather flat in the coming decades: energy efficiency gains are balanced with growth in mobility. Though large growth characteristics are expected for electric mobility, in the initial years this may be still at a too low pace to sufficiently decrease pressure from greenhouse gas emissions. This requires the simultaneous contribution of low-carbon liquid and gaseous fuels. Especially in the long distance transport segments these fuels are expected to provide energy to vehicles for a long period to come, due to the need for high energy dense energy carriers. READ MORE