Ethanol Fuelling a New Market for Triticale
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1 Ethanol Fuelling a New Market for Triticale Christopher Green, Senova Ltd (formerly SW Seed Ltd) Given by Ad Vrolijk, SW Seed BV 6 th International Triticale Symposium Stellenbosch, September 2006
2 Why Bioenergy? Oil price and dependency Climate change, CO2 abatement World energy demand rising Limited capacity for exploitation of world s resources Energy security and need for diversity Exploiting new technologies and inward investment Fossil fuel demand finite supply
3 What are Biofuels? Biofuels are fossil fuel substitutes from Biomass materials. Biodiesel Bioethanol Biogas Oil based soya/palm/oilseed rape Suitable for diesel engine Converted starch cereals/potatoes/ sugar/cellulose Suitable for petrol engines Anaerobic digestion of waste feedstocks
4 European Drivers for Biofuels EU Directives Renewable Transport Fuels Obligation Member states tax concessions and other support Kyoto CO 2 reduction Social pressure Environmental awareness and striving for sustainability Need to embrace new technologies and fuels
5 European Market Status Biodiesel 1.2% Bioethanol < 1% 1.9 Billion litres 0.5 Billion litres EU 25 Countries 2004 diesel from fossil fuel 160 Billion litres 2004 petrol from fossil fuel 163 Billion litres As it is today the market is in its infancy
6 Why Ethanol? Positive effect on CO 2 reduction oxygen molecule leads to pure combustion Suitable for all petrol engines Abundant feed stock Proven technology No waste products in processing Environmentally benign
7 What is Ethanol? Pure alcohol which can be derived from any biological feedstock containing carbohydrates which convert under fermentation of starch and cellulose
8 Worldwide.. The USA is the second largest producer manufacturing Billion litres of Ethanol in 2004, using 35 Million tonnes of maize. For 30 years Brazil has been producing bioethanol from Sugar cane & remains the largest producer Billion litres in 2004 Both countries have well developed domestic and export markets
9 Key European Bioethanol Producers Million Litres France Germany Spain Sweden Poland UK Italy New ethanol production plants in Spain (Abengoa), Germany and UK will substantially increase European production by 2007
10 European Feedstock BUT Competition from cheap imports Domestic feedstock is Sugar beet which has low DM and thus high transport and storage costs Highly subsidised High water demand Sugar crops provide the highest ethanol conversion Will not store long term High carbon cost of production Specific fermentation process - other feedstocks not interchangeable
11 For Europe Cereals are the answer.. Arguably maize is good, but is not for northern Europe..we are left with wheat, barley and triticale High productivity Highly adaptable Established infrastructure Can compete with imports
12 Currently European market production is from maize and wheat..but why not triticale?
13 Triticale offers High starch, low protein High enzyme activity, enhancing fermentation Agronomic benefits wide soil type, break crop, highly productive on lighter soils Environmentally more acceptable Competitive growing cost efficiency against wheat and rye
14 But Triticale is the Underdog.. Lack of availability Lack of awareness Lack of market focus Ubiquitousness of wheat No crop champion No promoters Minimal technical support and disregarded in the supply chain
15 Success Factors High starch Low protein High enzymatic activity Thin husk Availability local and all year round Consistent and reliable production and quality Cost effective
16 Market Potential 0.4 Billion Litres 4.82 Billion Litres (2.5%) Bioethanol Market?? ha of cereals could be required
17 New Supply Chain IDENTIFY Investors Plant developers Existing locations Grain supply Growers & crop developers INFORM
18 NOT AN EASY TASK..But in a new market we can make a start
19 Perhaps we can create a Triticale Ethanol Network (TEN) as a forum to: Develop appropriate quality tests Specify ideal genotypes Share solutions Stimulate shared or cluster research Highlight technical problems Develop technical dossier
20 The advent of bioethanol creates the opportunity of fuelling a new market for triticale
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