Climate Change, driving force for biofuels Regional Seminar Tartu of March 2011 Lennart Hallgren Project Manager.

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1 Climate Change, driving force for biofuels Regional Seminar Tartu of March 2011 Lennart Hallgren Project Manager 1

2 Climate Change Peak Oil Energy security Diesel shortage Air Quality Congestion Increase of transportation Drivers for Sustainable Transports 2

3 Global Climate change Climate is one of humanity s biggest challenges Huge commitments have to be made globally to reduce green house gases 3

4 Climate change. Carbon dioxide Concentration of CO2 in the atmosphere is the highest for more than thousand years It is growing fast Main causes are burning of the fossil fuel, cutting of forests... 4

5 The oil age in perspective

6 Global Warming During the last century global temperature has risen continuously Year 2010 one of the warmest ever Glaciers melts away water level increases Climate related catastrophes increases Flooding Heat waves.. 6

7 Interrelation of Atmospheric CO2 - Temperature 700 ppm (2100) 375 ppm (now)

8 Glaciers of Greenland and South Pole have shrunk in volume and size. Photo: Richard Ryan/Stockholm Visitors Board 8

9 Not only an Environmental problem! Oil dependency and CO2 causes: Environmental problems! Problems with security and supply! Financial problems!

10 Climate Change Peak Oil Energy security Diesel shortage Air Quality Congestion Increase of transportation Drivers for Sustainable Transports 10

11 The world needs new oil fields! ExxonMobil By 2025, we need to find, develop and produce a volume of new Oil & Gas that equals 8 out of every 10 barrels produced today. Source: Uppsala University

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13 Climate Change Peak Oil Energy security Diesel shortage Air Quality Congestion Increase of transportation Drivers for Sustainable Transports 13

14 Transportation, a large-scale green house driver The transport-sector accounts for 70 % of CO2 emissions Congestion and local emissions 14

15 Drivers for Sustainable transport Energy Security, shortage of diesel & End of Cheap Oil Source: Uppsala University?

16 A driver for sustainable transport Local energy security Finding local energy solutions is a very important driver for nations, cities, Regions, and companies Advantages with local biofuels Local production Job opportunities local energy security replacing oil dependency Stable, long-term contracts for fuel supply and price of fuel possible for operators

17 Financial problems Scientists and oil industry agree that there will be a shortage of oil in the near future; Oil price likely to be sluggish and high Cost of emissions rights in industrial/energy sector is booming; CO2 taxes, km-taxes, etc; It will cost you to be oil addicted and to cause fossil CO 2 emissions!

18 We need Sustainable Transports Climate Change Air Quality Are you a part of the problem? Or a part of the solution? Oil & Energy Security Congestion

19 Strategic long term decisions Strategically and financially very important for everyone dependent on fuels to secure the supply of renewable fuel!

20 Only 3 ways to reduce oil dependency and fossil CO2 from transportation! Curb the uncontrolled growth of transport Increase energy efficiency Increase the use of renewable fuels, biofuels

21 Renewable Fuels but which one?

22 Parameters to consider Potential to reduce local and global emissions Quality Availability, scale standardisation Economy Security of supply Future production potential? Ethics, labelling, certificate of origin etc. Competition with food, energy supply, medicines, Biodiversity

23 Local Emissions (PM, NOx) Biodiesel Diesel Petrol LPG Petrol E 95 Biogas H2, electricity (water power) E85 (electric hybrid) CNG electricity (EU mix) Global effect (CO2)

24 3 commercial sustainable biofuels Ethanol 90 % of World s biofuel Local and global fuel Sustainable volume production Stable fuel CO2 reduction 71 % Biodiesel Biogas Local waste to fuel Good for local fleets Can be combined with CNG Expensive infrastructure CO2 reduction > 95 % Many feedstocks Similar to diesel Fuel quality issues Not for infrequent use High and low blends CO2 reduction 38 %

25 The benefits of biogas Biogas is the most renewable biofuel today waste products from households, restaurants, farms and sewage treatment plants similar to natural gas (CNG) but renewable locally produced Xxx xxx

26 Clear political ambitions and targets is necessary as a foundation for the planning In Stockholm Visions and Targets are set by the politicians in the County Council and the board of SL: All train traffic shall use electricity from renewable sources January 1st 2012, 50 % of SL buses shall use renewable fuels January 1st 2026 all SL traffic should be 100 % free from fossil fuels

27 National Biogas Strategy Long-term national vision Estimation of national biogas/biomethane production and market potential Set national targets (10-20 year) Incentives to reach targets

28 National Biogas Strategies (Taxation) Higher energy tax on fossil fuels Higher C02 tax on fossil fuels Tax exemption on renewable fuel (e.g. Biomethane) Tax exemption on bio-fertiliser

29 National Biogas Strategies (Subsidies) Investment support for Biogas plants Investment support for Biomethane infrastructure, e.g. biogas grids, filling stations Eco-car subsidies Other?

30 Regional and Municipal Biogas Strategies (Regional and Municipal incentives) Environmental requirements in transport precurement (Taxi and mobility service) Requirement on eco-cars in all procurements Free parking for eco-cars in city areas Municipal investment in Biogas and Biomthene plants and infrastructure

31 Renewable fuels in Sweden Fordonsgas FAME E Delivered m Year 31

32 Number of Gas Vehicles in Sweden Tunga fordon/bussar 6 % Personbilar 94 % Vehicles 2010, 40% up from

33 Sales of Gas in Sweden Naturgas Biogas 100 miljoner Nm3 Total milj Nm3 Biogas 2010, up 35% 33

34 Baltic Biogas Bus Project Thank you for your attention Lennart Hallgren, Stockholm Public Transport 34