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The biofuels debate
With fuel prices at all-time highs, and crude oil prices surpassing $60
per barrel, perhaps now is the time for the Government to seriously enter
the biofuels debate.
An EU action plan adopted in 2001 to foster the use of alternative fuels
for transport indicated that the use of fuels from agricultural sources,
such as ethanol and biodiesel was the technology with the greatest potential
to impact on the Europe’s dependency on fossil fuels.
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Willie
Nelson has taken up the biodiesel challenge in the US
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That action plan was the catalyst for a European Directive, which requires
that 2% of all diesel and petrol sold across the EU in 2005 should be
biofuels. The directive also states that this figure should reach a minimum
of 5.75% of fuels sold in 2010.
Earlier this year Ireland was amongst 19 countries, that received written
notification from the European Commission for failing to communicate their
target for their share of biofuels in 2005, as required by the European
Biofuels Directive.
The member states in the dock were: Austria, Belgium, Cyprus, the Czech
Republic, Estonia, Finland, France, Germany, Greece, Hungary, Ireland,
Italy, Latvia, Luxembourg, the Netherlands, Portugal, Slovakia, Slovenia
and Sweden.
The fact that the Ireland is lagging behind a large slice of Europe in
seeking to develop this technology isn’t surprising. It is however,
galling when one considers Ireland’s almost total reliance on fossil
fuels such as petrol and diesel.
Biofuels cost more to produce than traditional fuels such as diesel and
petrol, which makes them uneconomic to produce if they are subjected to
the same levels of excise duty.
This fact has been a major stumbling block in the advancement of biofuels
industry across Europe for a number of years. In that light the Government
has gained approval from the European Commission for a scheme to provide
excise relief for pilot projects in the area of biofuels.
The scheme, which was legislated for in the Finance Act 2004 will mean
that excise duty on biofuels produced by approved pilot projects will
be “zero” rated for the purposes of excise duty.
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A number of fledgling Irish companies are now ready to run with the biofuels
challenge. In Cork a farmer and businessman Denis Howard is seeking planning
permission for a biodiesel plant near Kildorrery, while a number of pilot
project schemes are still at the planning stage.
While Ireland’s biofuels industry is still very much in its infancy,
other developed countries are powering ahead to embrace developing technology.
In the United States legendary country and western singer Willie Nelson
is championing the biofuels cause.
Nelson apparently became interested in biofuels technology when his wife,
bought a diesel powered Mercedes SUV last year. After intensive research
the pony-tailed singer set up Willie Nelson Biodiesel and is now offering
a 20 per cent biodiesel blend at truck stops all along the eastern seaboard.
The singer says the new product is a logical extension of his support
of the biodiesel industry in recent years. “Biodiesel is the future.
This is a great day for America. All the major automotive and truck manufacturers
are struggling to find new ways to meet fuel emissions standards and biodiesel
is the most practical and readily available alternative. We have it here
at home. We have the necessary product - the farmers can grow it,”
he enthused.
In Australia a company called Ozmotech is leading the field in developing
biofuels technology. However, the company differs from other biofuels
companies in that it uses recycled plastic as its raw material rather
than agricultural crops.
Ozmotech is predicting up to 10 of its breakthrough ThermoFuel systems
will be installed and commissioned in Britain and Ireland over the next
5-7 years. The system uses a pyrolysis chamber, a patented catalytic converter
and series of specially built condensers to produce energy rich diesel
fuel from unsorted waste plastics, often using plastics that are unsuitable
for other recycling purposes because of an undesirable or contaminated
mix of polymers.
For every tonne of waste removed from the waste stream, the ThermoFuel
system will produce 1000 litres of low sulphur high-energy diesel fuel,
a welcome reduction in the growing demand for fossil fuel resources.
Working from an original Japanese design, Ozmotech has spent two years
taking a brilliant but non-viable technology and turning it into a fully
operational system capable of producing over 19,000 litres of diesel fuel
per day for less than 20 cent per litre.
The fuels produced by the existing Japanese systems are being used exclusively
for power generation through diesel generators, but Ozmotech concluded
quickly that the fuel quality being produced was just not good enough
for road use.
"The fuel flash point was too low, the pour point and cloud points
were too high, and the system was not economically viable to operate in
most other countries if the fuel could only be used for power generation.
We had to make the fuel comply with standards and regulations including
the UK, Europe and Australia, for road use", CEO Garry Baker said.
“There is hardly a single element of the system which has not been
reviewed, researched, redesigned, improved or modified to give three distinct
results, a higher daily throughput, which is now up from the original
two tonnes per day to the current 20, a far superior quality fuel which
is now suitable for all road going engines and more finite control over
many of the production and operational elements.
Comprehensive testing of fuel quality has shown a remarkable similarity
with refinery-produced fuels. Some potential operators have asked questions
on the suitability of the fuel to be used in trucks, and what implications
there are for engine warranties.
Baker addresses these concerns quickly, pointing out that as both refinery
produced, and ThermoFuel, diesels comply with UK standards, it stands
to reason that neither fuel will have a detrimental effect on warranties.
In Australia the fuel has been zero rated for the purposes of excise duty,
which makes it viable to produce. The company is now lobbying both the
British and Irish Governments to follow the Autralian lead with regard
to excise duty.
While approved pilot projects are currently exempt from excise duty in
Ireland, it is unclear whether this exemption would be available to the
company. Baker says the company’s plan to launch in the UK has been
well received by the British Government and Ozmotech is hopeful its revolutionary
fuel will get an excise duty exemption.
The company says it will continue to negotiate with Governments across
Europe with a view to bringing the ground-breaking technology to the northern
hemisphere. Watch this space.
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