General
Europe currently imports 50 percent of its total energy needs. In transports, which rely heavily on oil, 80 percent of the energy is imported. In a Green Paper, the Commission forecasts that passenger traffic in EU15 will rise by 19 percent between 1998 and 2010, and goods transport by 38 percent. Forecasts are that the growth in the new Member States will be even faster. Given that transport fuels account for 32 percent of the total energy consumption in EU and with road traffic forecast to increase massively, the use of substitute fuels is vital for the EU to reduce dependence on imports. In the EU, transport is responsible for an estimated 21% of all greenhouse gas emissions that contribute to global warming. Between 1990 and 2003, when greenhouse gas emissions in the EU saw an overall reduction, transport’s share grew by about 24%. The reduction of greenhouse gas emissions from transport, therefore, could contribute significantly to meeting the EU Kyoto targets. There has been growing worldwide interest in biofuels as renewable sources of energy to substitute for petroleum-derived products. Unlike crude oil, feedstocks for biofuels—plants for ethanol and biodiesel and animal fats for biodiesel—are more uniformly dispersed, being available in every country, albeit in varying quantities and at different costs. Concerns over having to rely on a limited number of countries for crude oil supply and these countries’ enormous market power also make biofuels attractive as a means of enhancing security of energy supply. In the EU transport sector fossil oil is the main energy source with a 98% share of all transport fuels. In 2002 alternative motor fuels contributed 2% and biofuels only 0.3%. However, during the last few years the contribution of biofuels has increased due to the implementation of the biofuels directive in several Member States.
The EU is supporting biofuels with the aim of reducing greenhouse gas emissions, boosting the decarbonisation of transport fuels, diversifying fuel supply sources, offering new income opportunities in rural areas and developing long-term replacements for fossil fuel. In 2003 the European Parliament and the Council have adopted the Directive 2003/30/EC aiming to promote the use of biofuels for transport. This Directive requires member states in 2005 to replace 2% of their diesel and petrol with biofuels, although deviations are possible when justified. In reality, only Germany (3.8%) and Sweden (2.2%), have managed to achieve this targets.
In Europe the most important biofuel is biodiesel. Biodiesel accounts for about 80 percent of the biofuels used for transportation. Unlike the US where the biodiesel is produced from soybean, the European Union uses mainly rapeseed, and to some extent sunflower seed to produce its biodiesel.
What are biofuels?
Biofuels are liquid or gaseous fuels made from biomass such as agricultural crops, municipal wastes and agricultural and forestry by-products. Biofuels can substitute conventional fuels in vehicle engines - either totally or partially in a blend. At present the EU directive 2003/30/EC on the promotion of biofuels and other renewable fuels for transport recognizes ten biofuel types (Biodiesel, bioethanol, biogas, biomethanol, biodimethylether, bio ETBE, bio MTBE, synthetic biofuels,
biohydrogen and pure vegetable oil).
The other alternative propellers
The Alternative Fuels Directory also analyzes different other propellers used in some parts of the EU: Natural Gas (CNG), Hydrogen/Fuel Cell, Battery/Electric and the Hybrid Electric Vehicles.
Biofuel incentives
The directive on the taxation of energy products gives the MS a legal framework to differentiate taxation between biofuels and conventional fuels. Given that biofuel production costs are currently at least twice those of conventional fuels, it is essential to provide some kind of financial aid for the biofuel production to make it competitive. Reducing the tax burden on producers would also be a means to encourage investments as well as increase the number of consumers.
Flex fuel cars
With higher prices and an higher tax load on fossil fuels, alcohol was once again attractive and, consequently, the automobile industry began investing in a new technological standard: the bi-fuel or dual fuel, alcohol-gasoline car, also called by the North American expression, flex fuel.
The refueling flexibility of these vehicles, which have practically eliminated the risk of running out of fuel, combined with attractive alcohol prices has redirected the market: first released in March 2003, approximately 850,000 dual fuel vehicles were circulating in Brazil by late 2005. Six automobile manufacturers installed in the country offer 52 different models. These numbers predict the dawn of a new era in which multi-fuel vehicles will dominate the market almost absolutely, and this should favor enormously the consumption of biofuels.
What fuel do you consider best to transport a clean company image?
What fuel do you consider to transport best a social company image (contributing to the CSR)?
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