by Sune Tjalfe Thomsen and Henning Jørgensen (IEA Bioenergy Task 39 Newsletter) 1. Status of transportation biofuel industry in Denmark
In Denmark, a considerable part of the total energy demand is derived from renewable sources. In 2017, 26% of Denmark’s primary energy production of 658 PJ was from renewable energies (54% from biomass, 31% from wind and 3% from solar). Within electricity production, 64% was from renewable energies. Wind power was the largest source of renewable electricity, accounting for 43% of all electricity production in 2017, with biomass contributing 17%.
In 2017, the transport sector accounted for 34% of Denmark’s total energy use. A total of 162 PJ was used for road transport, equivalent to roughly 4 million tonnes of gasoline/diesel fuels. Of this, 74% was used for passenger transport, with diesel accounting for 65% of the fuel. Aviation consumed 42 PJ, corresponding to almost 1 million tonnes of jet fuel.
Domestic rail and sea transport used another 4.8 PJ and 6.2 PJ, respectively. The total energy use for road, rail and sea transport has been fairly stable over the last 10 years, whereas energy use for aviation has increased 10-15%.
The transport sector is one of the largest contributors to Denmark’s greenhouse gas (GHG) emissions. In 2016, transport
accounted for 26% of Denmark’s total GHG emissions of 50.5 million tonnes of CO2eq. Despite relatively stable emissions from transport over the past 15 years, transport’s share of total emissions has been gradually increasing (from 21% in 2005). This is due to more quickly decreasing GHG emissions from primarily the energy sector (heat and power) where fossil resources have and continue to be replaced by renewables (i.e., primarily wind and biomass).
(Energistatistik 2017)
Denmark, being a member of the EU, follows the EU directive on use of renewables in the transportation sector. Since
2012, the overall share of biofuels in the Danish transport sector has been 5.75%, with Denmark blending 5% of ethanol
into gasoline (E5) and 7% of biodiesel (FAME) into diesel (B7). In Denmark, there has generally been opposition to
conventional food crop-based (1G) biofuels, particularly to the use of palm oil for biodiesel production. As a consequence, the use of palm oil has gradually decreased and, since 2018, Danish biodiesel has used as feedstock either
rapeseed oil or waste fat (slaughterhouse waste), which is also eligible for double counting….
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Denmark currently has no domestic ethanol production, meaning that imports are used to supply the annual
consumption of nearly 86,000 m3 . There is domestic production of biodiesel (FAME), which in 2018 covered roughly
20% (44,000 m3 ) of Denmark’s annual total biodiesel consumption of 220,000 m3 …. There are two operating
biodiesel plants in the country. Emmelev Mølle (www.emmelev.dk) started operation in 2001 based on rapeseed oil
feedstock, with an annual production capacity of around 180,000 m3 , of which a large share is exported. Daka
ecoMotion (www.dakaecomotion.dk) started production in 2008 based on animal waste fat and oils, which according
to the EU legislation are eligible for double counting. Their annual production capacity is 55,000 m3.
Use of compressed natural gas (CNG), e.g., from upgraded biogas, for transport is very limited (2 mio m3 of biogas in
2018) and has mainly been in fleets e.g. public busses, etc.
Electric passenger cars (EV) are gradually increasing their market share. By end of 2018, EVs accounted for 0.4% of
Denmark’s passenger car fleet. In the first quarter of 2019, EVs or hybrid cars accounted for less than 4% of total car
sales.
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2. Policies driving the production and consumption of biofuels in Denmark
The main drivers for biofuels policies in Denmark are to contribute to Danish and European transport and climate
security. As an EU member state, Danish legislation and policies regarding climate, energy and renewable energy to a
significant extent reflect overall EU regulation and directives.
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As of October 2019, the Danish government has proposed a new law to increase the average mandatory blending level
to 7.6%. This law is expected to be passed in the parliament later this December. This means that fuel distributors/oil
companies have to ensure that a minimum of 7.6% of their annual sales are biofuels (measured by energy content). All
fuels have to contain a minimum of 1% biofuels.
In addition, there will be a minimum requirement of 0.9% advanced biofuels on annual basis. Advanced biofuels are defined according to EU2015/1513 appendix IX part A (e.g., biofuels produced from cellulosic materials, algae, organic waste fractions or waste cooking oil).
The oil distributers expect to introduce E10 beginning in 2020, but as it stands now, the new blending target will only be enforced in 2020. From 2021, the blending target will be reduced back to 5.75%. It is likely that gas stations will continue to offer E10, but the biodiesel blend level will be reduced to B5.
From many sides, including industry, this last-minute temporarily solution is being met with criticism, e.g., the distributers have to offer a new fuel standard for only temporarily use.
The argument for not continuing with the higher blending mandate is that the government does not find that blending biofuels offers enough GHG saving relative to the costs (i.e., loss of CO2 tax from fossil fuel) and is thus not a long-term solution. However, this complicates the current discussion of how to reduce transport-related GHG emissions in the short-term. These types of short-term policies and last-minute decisions provide a good example of how difficult it is to ensure stable framework conditions for the biofuels industry.
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In Denmark, there is a strong focus on sustainability aspects of biofuels, especially traditional (1G) biofuels as exemplified by the absence of palm oil derived biodiesel … in the Danish market.
The food versus fuel issue has and continues to influence the discussion of 1G bioethanol. As a consequence, biofuels such as 1G bioethanol have never been politically popular or economically supported in Denmark. The only policy/economic difference between biofuels and fossil fuels is the absence of a CO2 tax of EUR 0.06 per liter (note: the current gasoline price in Denmark is around EUR 1.6 per liter). Partly because of this policy, dedicated 1G bioethanol production has never been established in Denmark, despite some attempts in the period 2000-2010 based on using grain as feedstock.
Because liquid biofuels are only considered a short-term solution, with medium to long-term solutions focusing on electrification of passenger transport, only for heavy duty road transport as well as maritime shipping and aviation are advanced biofuels considered a cost-effective solution.
This policy is also due to Denmark placing a high value on the use of biomass for combined heat and power (CHP) production, as CHP production is already widely implemented in the Danish energy supply and provides a more cost-effective way to use biomass resources. Despite substantial ongoing research and development efforts in the area of producing cellulosic ethanol from agricultural residues, commercial production of advanced bioethanol in Denmark has not yet been successfully established.
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3. Advances in biofuels technologies including a historical perspective on Danish development efforts
3.1 Bioethanol
Denmark has historically been leading in developing technologies for advanced bioethanol production from lignocellulosic resources, primarily focusing on cellulosic ethanol production from agricultural residues such as straw.
The company Inbicon, a subsidiary of DONG Energy (now Ørsted), started developing their hydrothermal pretreatment technology for lignocellulose deconstruction around 2002. From 2003, they were operating their first pilot scale pretreatment unit with a capacity of 50 kg biomass per h input (dry matter basis). A key element in their technology is the “free fall mixing” principle, which enables high solids enzymatic liquefaction and hydrolysis (Jørgensen et al., 2007).
In 2009, they inaugurated a demonstration plant in Kalundborg based on these technologies. The Kalundborg demo plant had a capacity of 4 tonnes per hour of biomass (dry matter basis, mainly straw) and an annual nominal ethanol production capacity of 5.4 million L (Larsen et al., 2012). This plant was operated until around 2014, when the company announced it had successfully demonstrated all of the technologies in continuous operation and reached its
performance targets. They therefore considered the technology to be proven and ready to commercialize.
During the time the plant was in use, it was refitted/rebuilt in order to demonstrate new concepts, e.g. the possibility to recycle enzymes and perform C5 fermentation using a new genetically engineered yeast strain from DSM (Haven et al., 2015).
After closing down the plant, in 2015 Inbicon halted its research in the ethanol area.
In the same period as Inbicon was developing their technology, another Danish company, BioGasol, was developing an alternative process for cellulosic ethanol production (www.biogasol.dk). This company was fromed in 2006 as a spinoff from the Technical University of Denmark, where a small pilot scale plant (Maxifuel) had been operated for some years. BioGasol’s concept is built on several key technologies, including a pretreatment process based on the unique Carbofrac
reactor system and a Pentoferm fermentation platform based on a thermophilic anaerobic bacteria capable of C5 and C6 sugar fermentation. After upscaling, the Carbofrac pretreatment technology was demonstrated at a 1 tonne per hour scale and the Pentoferm fermentation technology at the cubic meter scale. In 2013, the company announced the first sale of a Carbofrac 400 reactor (400 kg/h) to Sweetwater Energy in the USA.
The company later faced economic difficulties and in 2016 stopped developing their technology. The UK based company Nova Pangea subsequently has acquired rights to some of Biogasol’s technology.
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Founded in 2007, the company Terranol A/S (www.terranol.com) develops yeasts to be applied for cellulolsic (2G)
ethanol production. By applying proprietary technologies, Terranol has developed industrial yeasts that can efficiently
produce ethanol from all C6 sugars and also the C5 sugar xylose at a rate that is among the best obtained today.
Novozymes, the world’s largest producer of industrial enzymes, is headquartered and has production facilities in Denmark, and has been one of the companies leading the development of enzyme solutions for both 1G and 2G bioethanol production, e.g., the cellulase mix Cellic® CTec3. They have been actively engaged in numerous Danish, European and international research projects within the area. The company has also invested in projects/companies upscaling and commercializing 2G bioethanol, e.g., it was together with M&G involved in the joint venture company Beta Renewables, which resulted in pioneering the world’s first commercial scale 2G bioethanol plant in Crescentino, Italy. Besides enzymes, Novozymes now also offers yeast solutions for ethanol production (e.g., Innova® Lift).
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3.2 Maersk and lignin ethanol oils (LEO) for marine fuel
Unlike ethanol for road transport, dedicated biofuels for maritime shipping have only recently become a research focus.
Global shipping accounts for 2-3% of total CO2 emissions, and this is projected to grow with increased international trade. The Danish company Maersk – the world’s largest shipping company –recently announced new ambitious goals and measures to reduce its carbon footprint. In 2018, they established a goal to be CO2 neutral by 2050. According to Maersk, to achieve this goal will require that by 2030 there are affordable ships available that do not emit CO2. Maersk hopes to push for this development within the industry.
After conducting a study with Lloyd’s Register, Maersk believes that alternative fuels like alcohols provide a more viable option than electric power in helping the cargo shipping industry become carbon neutral. The company’s internal research suggests that ship owners should focus on developing alcohols, biomethane and ammonia as fuels for future marine transport (MAERSK, 2019a).
Further, new technologies should be developed to replace current petroleum-dependent solutions, which applies to everything from fuel production to engine manufacture (MAERSK, 2019a). This joint study between Lloyd’s Register and Maersk indicates that ship owners must invest for fuel flexibility. They also find that this transition presents more of an operating expenditure challenge rather than capital expenditure challenge (MAERSK, 2019a).
Regarding alcohols (ethanol & methanol), existing solutions for handling the lower flash points and for burning alcohols are well proven, and ethanol and methanol are also fully mixable in a vessel’s bunker tanks, creating fuel bunkering flexibility.
On the fuel side, the most interesting new announcement regards lignin ethanol oil (LEO), where Maersk and fellow shipping company Wallenius Wilhelmsen have teamed up with the University of Copenhagen and major customers including BMW Group, H&M Group, Levi Strauss & Co. and Marks & Spencer to form the LEO Coalition. This coalition will explore the environmental and commercial viability of using LEO fuel for shipping (MAERSK, 2019b).
The initial work on LEO started back in 2012 with a large Danish project lead by the University of Copenhagen and including partners from Maersk, Novozymes and Inbicon. The University of Copenhagen is currently running laboratory-scale development of this new potential marine fuel.
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3.3 Hydrothermal liquefaction (HTL)
Research in the area of producing bio-oil by HTL technologies and upgrading this oil into various drop-in biofuels is
ongoing both at Aalborg University (www.aau.dk) and Aarhus University (www.au.dk). Both universities operate HTL
processes at pilot scale. Aalborg University has for many years worked closely with the Danish-Canadian company
Steeper Energy on developing HTL technology for marine fuels.
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3.4 Other technologies
The Danish company Haldor Topsøe (https://www.topsoe.com/) is a leading producer of catalysts for the petrochemical industry. Within the area of biofuels, they offer a range of technologies based on catalytic upgrading of syngas to produce drop-in fuels. The Topsoe Improved Gasoline Synthesis (TIGAS) technology, originally developed in conjunction with coal gasification to produce liquid fuel, has been successfully demonstrated with biomass.
In Sweden, Haldor Topsøe has also been involved in demonstration scale projects on dimethyl ether (DME) production from methanol produced from gasified biomass.
Haldor Topsøe also has technology (HydroFlex) for hydro-treating vegetable oils to produce HVO and drop-in biofuels. This technology has been selected for the first European plant being designed to produce Sustainable Aviation Fuel (SAF). This facility is being constructed in Delfzijl, the Netherlands, by SkyNRG with KLM as a strategic partner. The plant will have an annual production capacity of 100,000 tonnes. (Haldor Topsøe)
Research on so-called electrofuels or Power-to-X fuels is gaining momentum in Denmark. Due to the large share of wind power in the Danish electricity grid, periods of more than 100% coverage of electricity demand by wind power
are becoming more frequent. Although surplus electricity normally is exported to neighboring countries, the price is
usually very low, or even negative. With a large projected expansion of wind power, options to store or utilize surplus
electricity are therefore of great interest.
Several research projects are ongoing and one demonstration plant for power-to-methane (1200 m3 per day) is operating in Copenhagen at the BIOFOS wastewater treatment plant based on upgrading of CO2 in biogas. Other research projects include ‘The Villum Center for the Science of Sustainable Fuels and Chemicals’ at the Technical University of Denmark (www.v-sustain.dtu.dk) and a biogas upgrading pilot plant at Aarhus University involving Haldor Topsøe.
Another cross-over technology combining biomass gasification with use of excess wind power is the SYNFUEL project
lead by the Technical University of Denmark. Electricity is used in Solid Oxide Electrolysis Cells (SOEC), developed Haldor Topsøe, to produce hydrogen, which is then reacted with syngas produced by a Pyroneer gasifier (technology originally developed by DONG Energy/Ørsted) to yield methanol. (TUD)
4. Challenges to further production and use of biofuels in Denmark
Despite many years of research on ethanol production from lignocellulosic biomass and demonstrating the upscaling of the Inbicon technologies, it seems unlikely that dedicated commercial ethanol production will happen in Denmark.
Politically, the use of biomass for production of liquid biofuels has never been endorsed widely, and for passenger cars electrification is seen as the preferred technology solution. However, current policy puts a large focus on expanding electricity production from wind and solar and in a longer perspective the aim is to dramatically reduce the use of biomass for heat and power. This could potentially open up opportunities for other biorefinery uses of the biomass.
The research and development done in relation to production of ethanol from lignocellulosic biomass has resulted in key technologies for producing sugars from biomass. These technologies could be transferred to other biorefinery concepts for production of chemicals. READ MORE
Video: Extractions of forest residues in Sweden (Bioenergy Association of Ukraine)