Australian oilseeds FederationForum 2005

Global trends in non food usesin EuropeEmile CHONÉ

Directeur AGROPOL

With data from the European Biodiesel Board

PROLEA, a young and well-structured agro-industrial chain

PROLEA gathers five bodies:

- The producers’ Union FOP:Represents 150.000 farmers, defends their interests vis-à-vis the French and EU public authorities and the WTO.

- The Interprofession ONIDOL for oilseeds,- The Interprofession UNIP for protein crops

Gather producers, handlers and users of oilseeds and protein crops. Contribute to economic organisation, research enhancement, valorisation, diversification and promotion of the sector.

Technical centres: CETIOM for oilseedsUNIP Technique for protein crops

Produce technical innovations and improve economic competitiveness of crops.

The Financial Establishment SOFIPROTEOL:Manages industrial assets through Saipol-Lesieur (vegetable oils), Diester Industrie (biodiesel) and its subsidiary Novance(lipochemistry).

Operates investment funds fed with money collected from the farmers, one that invests in enterprises of the sector, the other one that finances R&D and promotion of the sector.

AGROPOL in charge of studies and cooperation abroad

Origin of biodiesel• In the 80’s:

– Work of IFP on FAME as diesel fuel– new market for vegetable oils– Brand name DIESTER in 1987

• 1992 CAP reform and BHA– sourcing from set aside land– First biodiesel plant launched in Compiègne

• R&D with other EU countries (F, I, G)– Eurobiodiesel– costs/benefits: economy, taxes, environment

Biofuels: UE Policy• Motivation

– Kyoto protocol– energetic independance– economy

• 2 EU directives in 2003– Promotion of biofuels

• 2% 2005• 5,75% 2010

– possibility of fiscal exemption

Changes (%) in EU greenhouse gas emissionsby sector

1990-99, Sources: European Environment Agency, BAFF

EU Biodiesel production in Member Statesand in the EU (’000 t)

0

500

1000

1500

2000

1998 2000 2002 2003 2004

GermanyFranceItalyOthers EU-25Total EU

EU-25

EU-15

EU-15

EU-15

EU-15

2004 production of biofuels in the EU-25Sources: EBB, ADECA

0.5

1.9

0

0.5

1

1.5

2

Mt

Bioethanol Biodiesel

Member States' targets for 2005 and 2004 biofuels consumption(percentage in energy content of conventional fuel market)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Czech R

ep.

Sw

eden

Austria

Germ

any

France

Lithuania

Spain

Netherlands

Latvia

Portugal

Hungary

UK

Finland

Ireland

Italy

Poland

Slovakia

Denm

ark

Belgium

Greece

Luxemburg

Cyprus

Estonia

Slovenia

Malta

EU

-25

%

2005 target biofuel consumption

(Percentage in energy content of conventional fuel market)

Where are we now: Member States 2005 targets and 2004 biofuels use

EU-25

Biodiesel/bioethanol relative contribution to biofuels market penetration in 2004(percentage in energy content of conventional fuel market)

0.04

0.43

0.01

1.98

0.72

0.67

0.21

0.02

0.590.34

0.42

0.15

0.38

0.08

0.00

0.50

1.00

1.50

2.00

2.50

Germ

any

Italy

France

Lithuania

Austria

Spain

UK

Sw

eden

Poland

Czech R

ep.

Netherlands

Latvia

Portugal

Hungary

Finland

Ireland

Slovakia

Denm

ark

Belgium

Greece

Luxemburg

Cyprus

Estonia

Slovenia

Malta

EU

-25

%

biodiesel bioethanol

(Percentage in energy content of the conventional fuel market)

EU-25

Where are we now? Biofuels use in 2004Biodiesel/Bioethanol relative contribution to EU biofuels market penetration in 2004

EU and Worldwide biodiesel production in 2004(estimate - million tonnes)

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

1,8

2

EU Worldwide

mill

ion

ton

nes

US (0,14)

world (0,29)

EU (1,93)

Biodiesel: quality & sourcing

• EN 14214– established with

• biodiesel producers, • petroleum companies,• motor makers.

minimum maximumTeneur en esters % (m/m) 96,5 - EN 14103

Masse volumique à 15°C kg/m3 860 900 EN ISO 3675EN ISO 12185

Vicosité à 40°C mm2/s 3,50 5,0 EN ISO 3104Point d'éclair °C 120 - prEN ISO 3679

Teneur en soufre mg/kg - 10,0 prEN ISO 20846prEN ISO 20844

Résidu de carbone (sur résidu 10% de distillation) % (m/m) - 0,30 EN ISO 10370Indice de cétane - 51,0 - EN ISO 5165Teneur en cendres sulfatées % (m/m) - 0,02 ISO 3987Teneur en eau mg/kg - 500 EN ISO 12937Contamination totale mg/kg - 24 EN 12662Corrosion à la lame de cuivre (3 h à 50°C) cotation EN ISO 2160Stabilité à l'oxydation, 110°C heures 6,0 - EN 14112Indice d'acide mg KOH/g - 0,50 EN 14104Indice d'iode g iode/100 g - 120 EN 14111Teneur en ester méthylique d'acide linolénique % (m/m) - 12,0 EN 14103Esters méthyliques polyinsaturés (>= 4 double liaisons) % (m/m) - 1 -Teneur en méthanol % (m/m) - 0,20 1N 14110Teneur en monoglycérides % (m/m) - 0,80 EN 14105Teneur en diglycérides % (m/m) - 0,20 EN 14105Teneur en triglycérides % (m/m) - 0,20 EN 14105

Glycérol libre % (m/m) - 0,02 EN 14105EN 14106

Glycérol total % (m/m) - 0,25 EN 14105

Métaux Groupe I (NA + K)Métaux Groupe II (Ca + Mg)

mg/kgmg/kg

--

5,05,0

EN 14108EN 14109

prEN 14538Teneur en phosphore mg/kg - 10,0 EN 14107

classe 1

Valeurs limitesCaractéristique Unité Méthode d'essai

Norme NF EN 14214 – Avril 2004(Esters méthyliques d’acides gras (EMAG) pour moteurs diesel)

Biodiesel: quality & sourcing

• rapeseed oil ME fits the standard– Iodine value– cold temperatures– stability

• process• functional properties• environmental propreties

Rapeseed area for biodiesel

36 478

120 000

235 000

187 300

146 575

135 610

258 220

275 000

258 000

257 200

267 000221 328

353 312

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

H e

c t

a r

e s

Source : OnidolChiffres France hors export

Gain net des émissions de gaz à effet de serre

Versus

g.eq CO2/MJ

%

teq CO2/t

%EMHV colza Gazole 55,6

-70%2.502

-74%

EMHV tournesol Gazole 59,2 -75%

2.645 -78%

Bilans énergétiques

Energie restituée/Energie non renouvelable mobilisée

GAZOLE DIESTER

colza

DIESTER

tournesol

0.917 2.99 3.16

Effect of RME production process (HFRR results)

0100150200250300350400450500550600

1 2 3 4 5

Swedish diesel fuel + RME A

Swedish diesel fuel + RME B

Results not accurate below 150

RME (% vol)

Ave

rage

wea

r dia

met

er(m

icro

ns)

National policies

Excise duty exemption– full exemption of a

total 470 euros/m3– no quota

Either pure or blended

Excise duty exemption– 330 euros/m3 out of

419 euros/m3 in total– fiscal quota– exempted quota for

each production plant

TGAP from 2005

GermanyFrance

Un ratio gazole/essence qui explose consécutivement aux progrès attendus (injection directe, « down sizing »,…) pour les moteurs à essence, même en cas de ralentissement notable des immatriculations diesel

Demande de carburants en France

0,000

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1990 1995 2000 2005 2010 2015 2020 2025

Mt

Tous carburants

Gazole

Essence

Statistiques CPDP

prévisions

Trend on fuels demand in France

Compiègne100.000 t + 100.000 t

St Nazaire/Montoir120.000 t

Le Mériot200.000 t

Sète200.000 t

Rouen250.000 t

Boussens30.000 t

Verdun

Feyzin(Rhône)

Etang de Berre

Grandpuits

Dunkerque

Donges

Basse Seine

Raffinerie

Usinesd’esterificationexistantes

Usines d’esterificationprévues

SITUATION DES USINES D’ESTERIFICATION

EN 2007 ET LOGISTIQUE DIESTER

Biodiesel: trend on prices

• diesel oil• glycerin• methanol• rapeseed oil UE

Prix huile de colza en eur/tmFob Dutch Mill

400

420

440

460

480

500

520

540

560

580

600

620

640

août-02

sept-02

oct-02

nov-02

déc-02

janv-03

févr-03

mars-03

avr-03

mai-03

juin-03

juil-03

août-03

sept-03

oct-03

nov-03

déc-03

janv-04

févr-04

mars-04

avr-04

mai-04

juin-04

juil-04

août-04

sept-04

oct-04

nov-04

déc-04

janv-05

févr-05

mars-05

avr-05

mai-05

juin-05

juil-05

août-05

sept-05

METHANOL : EVOLUTION DU PRIX DE CONTRAT ( source ICIS-LOR)

en EURO/ MT

50

100

150

200

250

300

Q11999

Q3 Q12000

Q3 Q12001

Q3 Q12002

Q3 Q12003

Q3 Q12004

Q3 Q12005

Q3

PRIX DE LA GLYCERINE

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

1400

1500

1600

1700

1800

1900

2000

EUR

OS

/ TM

RAFFINEE BASE 100%

BRUTE BASE 100%

RAFFINEE BASE 100%

BRUTE BASE 100%

janv 1995 sept 2000 june 2005

BiodieselConsequences on lipochemistry

• Glycerin– mass production – price drop– EU new exporter– new uses

• alkyd resins again• substitution in personal care products• feed

• FAME– new raw material– Cost-effective compared to FA

• saving energy through transesterification

– new markets (examples)• Tar fluxant• tank mix additives• industrial solvants & cleaners

BiodieselConsequences on lipochemistry

TAR fluxant

Biodiesel Conclusion

• will spread everywhere• new big market for agriculture• new opportunity for lipochemistry