Biofuels for transport[fr][de] 

A wide range of biomass products such as sugar cane, rapeseed, corn, straw, wood, animal and agriculture residues and waste can be transformed into fuels for transport. For more general information on biofuels, see the Wikipedia Biofuels page. A good general introduction is also the UK Department for the Environment's brochure "The facts on biodiesel and bioethanol ".

Generally, a distinction is made between first-generation biofuels (mainly produced from crops such as sugar beet and rapeseed) and  second-generation biofuels (from ligno-cellulosic or 'woody' sources and via new technologies to convert biomass to liquid (BTL)).

The two main first-generation biofuels are bio-ethanol and bio-diesel. Brazil and the US are the main producers of bio-ethanol; the EU has the largest production of bio-diesel, with Germany, France, Sweden and Spain in the lead.

The advantage of using biofuels is that they generally emit fewer greenhouse gases than traditional fuels from oil and gas and they are more abundant and domestically available. Another plus is that the domestic production of biofuels could help European farmers following reform of the Common Agricultural Policy as they offer new income and employment opportunities.

EU Policy developments:

• 2001: the Commission starts to consider the use of more biofuels for transport. In its Communication on alternative fuels for road transport , it identified biofuels, natural gas and hydrogen as possible future energy sources for transport (see LinksDossier on Alternative Transport Fuels). 
• 2003: the EU adopts Directive 2003/30 EC  on the promotion of biofuels. This "biofuels directive" requires member states to set indicative targets for a minimum proportion of biofuels to be placed on the market. These targets were set at 2% in 2005 and 5.75% in 2010. 
• As biofuels are more expensive than traditional fuels, the EU also allowed member states to apply a total or partial tax exemption for biofuels (Directive 2003/96 EC ).
• Dec. 2005: the Commission presents a  Biomass Action Plan
• Feb. 2006: Communication "An EU strategy for biofuels " preparing the ground for a review of the biofuels directive, originally planned for the end of 2006.
• 10 Jan. 2007: Biofuels progress report  shows that, in 2005, biofuels reached only 1% of the market and that the EU will miss its 5.75% target for 2010 by a long way. Only two countries (Sweden and Germany) reached the target of 2% by 2005.
• Jan. 2007: the Commission proposes revising the 'Fuel Quality Directive', which sets common EU standards for petrol, diesel and gasoil in order to protect human health and the environment, so as to allow for a greater use of biofuels. If approved, the amendments would permit higher volumes of biofuels, such as ethanol, in petrol, and would also make it mandatory for fuel suppliers to ensure that greenhouse gases produced by their fuels throughout their life-cycle (ie, production, transport and use) are cut by 1% per year between 2011 and 2020.
• Mar. 2007: EU leaders commit themselves to the binding minimum target of 10% of transport fuel in each member state to be provided by biofuels by 2020.  But this quantitative target rapidly comes under fire from green politicians, NGOs and the scientific community, which fear the mass culture of agricultural crops for biofuels could lead to ecosystem loss, deforestation, population displacement, food shortages and price increases, while not even reducing CO2 output.
• Jan. 2008: The Commission finally presents its review of the 2003 biofuels directive, as part of a broader directive on renewable energies. The directive confirms the 10% target for 2020 but contains "sustainability criteria" to prevent mass investment in cheaper but environmentally harmful biofuels. Notably, biofuels that fail to deliver life-cycle CO2 savings of at least 35% compared to fossil fuels, as well as biofuels planted, after 1 January 2008, in protected areas, "highly biodiverse" grasslands, forests and wetlands will not be considered as counting towards the 10% target.

The production of biofuels for transport faces several challenges:

Energy balance

There is controversy over the energy balance of biofuels production. The energy balance is the amount of energy needed over the life-cycle to produce biofuels (input) versus the amount of energy produced (output). According to studies by Pimentel and Patzek, it takes more energy to make ethanol than is contained in the ethanol itself. Other studies (eg. by the US Department of Agriculture) indicate that the energy balance is positive. For a good overview of the debate on the energy balance of biofuels, see "The energetics of ethanol: an introduction and link to studies".

Climate change reduction potential

In principle, biofuels are "carbon neutral": when they are used, no more carbon dioxide is released than has been absorbed during the growth of the plants used to make these biofuels. Therefore replacing fossil fuels with biofuels for transport could help in the fight against climate change.

But there are other studies that contest this conclusion. A study by Mark Delucchi  (Dec 2003) concludes that the use of biofuels could actually increase greenhouse gas emissions as land would be converted from forests, wetland and reserves for conservation to grow more corn or soya beans.

A report published in May 2007 by the United Nations Energy division warns that whilst biofuels could produce a number of benefits, there is a considerable risk of increased CO2 production through the use of biofuels in transport. The report notes that with respect to reducing greenhouse-gas emissions, biofuels would be more appropriately used for combined heat and power production (CHP - EurActiv 10/05/2007) rather than for transport.    

Land Use

Using agricultural land to grow bio-energy crops would compete with the use of land for food and animal feed production, driving up the prices of commodities like cereals. According to the EEA, reaching the initial 5.75% target of the biofuels directive would already require biofuel crops to take over between 4% and 13% of the total agriculture area of the EU-25.

Nevertheless a July 2007 study by the Commission's DG Agriculture foresees that reaching the new 10% target for biofuels in transport by 2020 would not "overly stretch the [EU's] land availability", requiring a "relatively modest" 15% of arable land, which it claims could be largely covered by "set aside" land, currently reserved under the Common Agricultural Policy in order to limit excessive production by farmers (EurActiv 27/07/07).

Environment and sustainability

Biofuels can have several environmental benefits such as reduced air pollution or reduction of waste. On the other hand, there are risks of more fertilisers and pesticides being used to grow energy crops. Biodiversity loss - especially in developing countries seeking to enter this growing market - is also an important risk as forests and grasslands are cleared to plant the vast quantities of crops needed to make a significant dent in the use of oil in transport. 

Calls for binding "sustainability criteria" to be introduced in laws promoting increased biofuel use have therefore emerged from all sides. On the one hand, the Commission is proposing to introduce certain standards, including an obligation for biofuels counting towards the 10% target to deliver life-cycle CO2 savings of at least 35% compared to fossil fuels and a ban on biofuels planted in protected areas, forests, wetlands and "highly biodiverse" grasslands, in its proposed Renewables Directive  of 23 January 2008. 

But MEPs and member states are arguing that those criteria are unlikely to be in place sufficiently early to prevent fuel makers from investing in cheap but dirty biofuels. Instead, they want standards to be set in a revised version of the EU's 1998 Fuel Quality Directive , which is at a much more advanced stage of the decision-making procedure. MEPs are also insisting on tougher conditions, with, for example, biofuels subject to a 50% life-cycle CO2 reduction requirement compared to conventional fuels, as well as the introduction of social criteria.

A special ad hoc working group was set up at the end of February, with the aim of drafting "core criteria" for biofuels, that would be included both directives (EurActiv 01/04/08). So far though, a compromise has remained elusive.

Biofuel costs

Biofuels are more expensive than traditional fossil fuels. Therefore tax exemptions are needed to make them competitive. Second generation biofuels promise to be cheaper but are still under development (see LinksDossier on 2nd generation biofuels). In some countries like Brazil, biofuels can be produced at cheaper prices. 

COPA-COGECA:  

• Seeks to increase the incorporation rate for biodiesel in diesel from 5% to 10% by 2010.
• Supports import quotas and Community management of ethanol imports.
• Supports an increase in the level of aid and maximum guaranteed area from the energy crops support scheme. 

WWF:

• Calls for mandatory and legally-binding environmental certification for imported and domestic production.
• In favour of supporting developing countries via biofuels assistance packages.
• Promotes second generation biofuels.
• Believes that biofuels should not count towards voluntary agreements by carmakers to reduce fuel consumption.

ACEA:

• Believes that from a technological point of view, the automotive industry needs to be given enough time to adjust engines and particulate matter filters to higher biofuel blending requirements, in order to reduce the negative effects of blending on the car's engine and the vehicle's fuel efficiency.  
• Supports biofuels in general.

eBIO (European Bioethanol Fuel Association): 

• Highlights need to reduce dependence on insecure sources of imports of oil for transport fuels. 
• Believes that indicative targets do not deliver the necessary sense of urgency.
• Endorses the principle of minimum environmental standards for the extraction / cultivation of raw materials for biofuels.

EBB (European Biodiesel Board):

• Broadly approves the Commission's Biofuels Action Plan.
• Strongly supports legislation in order to increase the maximum content of biodiesel in conventional diesel from 5% to 10%.
• Supports the principle of using CO2 savings from biofuels to meet official EU vehicle industry targets.