To guarantee a stable supply of electricity, to protect the environment and climate and to stimulate employment in rural areas. These are the three key goals of the bio-energy (biomass, biofuels) action plan which the European Commission is expected to adopt on November 23. Bio-energy, unlike other renewable energy sources such as the sun or wind, is not free. The plan targets biomass for heat and power production (forest and agricultural residues and organic matter in municipal waste) and cereals and oilseeds for biofuel production. And it is hoped that this will lead to an annual reduction in greenhouse emissions of 185 million tonnes of CO2 and the creation of 500,000 jobs. Bio-energy currently covers 4% of the EU's energy requirements.
Using existing technology, the action plan is intended to double the use of biomass in the near future and to prepare for the arrival of new technologies by 2020. The European Commission's Directorate-General for Transport and Energy has identified the five main obstacles to bio-energy production: the reluctance of fuel suppliers and motor manufacturers to promote biofuels, the different policies in the member states, the cost which is not competitive with fossil fuels (except heating in some instances), the lack of consumer information and knowledge and “weak links” in the bio-energy production chain.
These are the only available renewable energy petrol substitute. The results after the implementation of the Biofuels Directive 2003/30/EC were considered disappointing and the Commission is to propose a revised version in 2006 in which national targets will be set, mandatory quotas will be imposed on fuel suppliers and an environmental certification system for bio-fuels will be established. In addition a Directive promoting the public procurement of “clean” vehicles will be proposed and early in 2006 a Communication on the use of bio-fuels in the Common Agricultural Policy.
The Commission intends to hold both bilateral talks (with Mercosur nations in South America) and engage in multilateral (WTO) negotiations to establish a link between customs tariffs and EU consumption. Equally, developing countries will be encouraged to produce biofuels and the raw materials need to produce them.
The European “bio-diesel standard” (EN 14214) will also change to facilitate the use of a greater range of vegetable oils for bio-diesel and to allow ethanol to replace methanol in bio-diesel production. And as a logical progression, Directive 98/70 on fuel quality (quotas, vapour pressure standards) will also be amended to allow ethanol to be used in petrol and bio-diesel to be used in diesel. Oil producers will be closely monitored and will be obliged to justify any technical practices that in any way hinder wider incorporation of biofuels.
Of the three main renewable energy sources used to produce electricity, only biomass is under-utilised - hydraulic power is stagnating and wind turbines are taking off. The European Commission intends to make a proposal for legislation in early 2006 to encourage the use of renewable energy sources in the production of heating and cooling. The Waste Framework Directive 75/442 will be amended to define when waste stops being waste and can be considered a “fuel”. The future Forestry Action Plan, to be adopted in 2006, will include measures to make better use of forestry biomass resources for energy production. A study on how to improve the performance of household biomass boilers is to be conducted with a view to using the Eco-Design framework to give legislative force to standards. The European Committee for Standardisation (CEN) will be asked to fats-track the adoption of solid biomass fuel standards. Member States will be encouraged to reduce taxes on biomass fuels, and those that already apply a reduced VAT rate to electricity and gas will be encouraged to extend it to district heating (a legislative proposal on tax issues affecting district heating will only come into force in 2007). And finally member states will be encouraged to draw up national Biomass Action Plans and to organise consumer information campaigns on the benefits of biomass.
On the research front, priority will be given to second generation bio-fuels (those made from cellulose, animal fat or other organic waste, and gas production using the Fischer Tropf process), to “bio-refining” (making multiple products out of biomass), to eliminating particulate and nitrogen oxide emissions from biomass conversion installations, to energy crop production and biomass logistics and to combustion. A biofuel technology platform will be created which could ultimately be transformed into a Joint Technology Initiative (Public Private Partnership).