INDUSTRY INSIGHT
Renewable fuels in the future energy mix
A CLOSER LOOK AT LIQUID AND TRANSPORT RENEWABLE FUELS AND WHERE THEY MAY PROVE THEIR VALUE IN THE DECARBONISATION CHALLENGE
Definitions / Scope : A simple definition of renewable fuels can be framed as : ‘ Fuels which are made from sources that are constantly regenerating and therefore will not be depleted within the foreseeable future , the most common being renewable diesel , biogas and ethanol . Renewable fuels are part of a closed cycle and do not create a net surplus of carbon dioxide greenhouse gases when used ’.
In this exercise , we will be limiting the scope to ( a ) liquid fuels and ( b ) those used in the transport sector which , for the UK , is the largest single source of GHG emissions ( 34 % in 2019 ) and the most challenging to find nearterm substitute energy sources for . The focus will therefore be on :
• Ethanol
• Renewable diesel
• Biojet
We will also take a brief look at the closelyrelated topic of the development of , and issues with , e-fuels .
Ethanol : Brazil pioneered the blending of ethanol into petrol back in the 1930s , in a 5 % ratio , availing of its extensive sugar cane crop as the production feedstock source . The real impetus , prompted by soaring oil prices , came in the 1970s at a time when the country imported circa 80 % of its requirements . In a programme called Proalcool , ethanol blending targets were set , initially at 4.5 % in 1977 , rising to 15 % in
24 Fuel Oil News | March 2021
1980 and 27.5 % in 2018 . Mandatory min / max levels of 20 %/ 25 % were set in 2003 , the former being temporarily cut to 18 % in 2011 . A mandatory 27 % blend level was introduced in 2015 and is still in place . The country produced 33 bln litres in 2019 , representing 30 % of the global total ( of 110 bln litres ) which was second only to the USA ( 60 bln litres and 54 % of the world ’ s total ). In comparison , total EU production amounted to 5.5 bln litres ( 5 % of the total ).
In the USA , the blending of ethanol ( produced from corn ) into petrol was instigated by the introduction of reformulated gasoline ( RFG ), blended to burn more cleanly than conventional gasoline and to reduce smogforming and toxic pollutants in the air , particularly during the summer months . The RFG programme was mandated by Congress in the 1990 Clean Air Act amendments . The first phase of the RFG programme began in 1995 and the second ( current ) phase began in 2000 . RFG is required in cities with high smog levels and is optional elsewhere and is currently used in 17 states and the District of Columbia . About 30 % of petrol sold in the U . S . is reformulated . RFG is required to have an oxygen content of just over 2 percent to help it burn cleaner and Ethanol is the oxygenate most widely used in RFG , generally blended at the 10 % volume level to take maximum advantage of available tax credits .
The requirement to use oxygen in RFG was replaced by the Renewable Fuels Standard
( RFS ) in the Energy Policy Act of 2005 . The RFS requires an increasing amount of renewable transportation fuel use , beginning with 15.0 billion litres per year usage requirement in 2006 . The current ( to end 2022 ) ethanol mandate is set at 57 billion litres ( equivalent to circa 12 % of projected 2020 US petrol demand and 10 % of the actual 2019 out-turn ).
In the UK , legislation was enacted in the form of the Renewable Transport Fuel Obligation ( RTFO ) Order in 2007 , providing the mechanism by which mandated targets for the biofuel content of transport fuels was established . The requirement to comply applied to all those supplying over 450,000 litres per year of these fuels with the current mandate being at 9.75 %, rising to 12.4 % in 2032 . Ethanol volumes have remained relatively stable , generally in the 700-800million litres / year range for the past 10 or so years , and the two main production plants , each with an annual capacity of around 400 million litres / year , were both temporarily mothballed , pending resolution of the so-called ‘ blend wall ’ issue which effectively limited the blend ratio in petrol to 5 %. This has now been addressed and the raised level of 10 % will be introduced this year and bring the country in line with the wider EU position .
Renewable Diesel : This product , also known as hydrotreated vegetable oil ( HVO ) or advanced biofuel or second generation biofuel , is made primarily from waste or residues e . g . waste vegetable