AsiaPacific Economic Cooperation APEC NEW AND RENEWABLE ENERGY

Asia-Pacific Economic Cooperation (APEC) NEW AND RENEWABLE ENERGY TECHNOLOGIES EXPERT GROUP MEETING - 27 th Meeting Chinese TAIPEI Experience in Biofuels: Successes and R&D Challenges RD&D Challenges on the Way Towards Success Chinese Taipei 9 October 2006 Zhuhai, China Experience in Biofuels: RD&D Challenges on the Way Towards Success 1

BIOENERGY OUTLINE I. Activities Chinese TAIPEI II. Approach III. Challenges IV. Concluding Remarks Experience in Biofuels: RD&D Challenges on the Way Towards Success 2

BIODIESEL Biodiesel Activities in Chinese Taipei Ø First biodiesel demo plant constructed in 2004 Ø Three plants now in operation and two under planning Ø 760 garbage trucks fueled by B 5~B 100 Chinese TAIPEI l. Major problems: filter plug & loss of horsepower using high blends of biodiesel l. Advantages: air pollutants reduction (except NOx) 3, 000 kl/yr Bio-diesel demo plant BOE Project．Tech. developed by ITRI Experience in Biofuels: RD&D Challenges on the Way Towards Success 3

BIODIESEL Approach for Promoting Biodiesel Preliminary Subvention Program (2006. 10 -2007. 12) - Public transportation buses fueled by B 5 in a selected area - The difference in purchase price between biodiesel and fossil diesel is subsidized by the government - Feedstock: 1, 200 ha soybean/sunflower (set-aside land) Green County Demo Program (2007. 1 -2008. 6) Chinese TAIPEI - All diesel vehicles are fueled B 1 in the demo county - The difference in purchase price is subsidized - Feedstock: 8, 000 ha energy crop (set-aside land) + 3, 300 metric tons of waste cooking oil B 1 Program (2008. 1 - ) - All diesel blends biodiesel by 1 vol% (~50, 000 kl biodiesel) - Feedstock: 20, 000 ha energy crop (set-aside land) + 37, 000 metric tons of waste cooking oil Experience in Biofuels: RD&D Challenges on the Way Towards Success 4

BIOETHANOL Approach for Promoting Bioethanol Government Vehicles Demo Program (2007. 9 -2008. 12) - Government Vehicles in Taipei are fueled E 3 bioethanol (~12 stations) Chinese TAIPEI E 3 Demo Program in Taipei and Kaohsiung (2009. 1 -2010. 12) - Most gas stations in Taipei and Kaohsiung provide E 3 (186 stations) E 3 Program (2011. 1 - ) - Most gas stations provide E 3 (2, 500 stations) Ethanol supply: locally made from sweet potato and import if necessary Experience in Biofuels: RD&D Challenges on the Way Towards Success 5

BIODIESEL Challenges to the adoption of biofuel Ø Feedstock Ø Cost Chinese TAIPEI Ø Storage and Distribution Ø Public acceptance Ø Legislation Ø Policy measures Experience in Biofuels: RD&D Challenges on the Way Towards Success 6

Feedstocks and Standard for Biodiesel properties: f(nature of crops, processing) Ø Iodine Value l. EN 14214 : <120 g I 2/100 g l. ASTM D 6751 -06: not specified Chinese TAIPEI l. Soybean: 120 -140 g I 2/100 g Ø Cetane Number l. EN 14214 : >51 l. ASTM D 6751 -06: >47 Ø Oxidation Stability l. EN 14214 : >6 hrs l. ASTM D 6751 -06: not specified Experience in Biofuels: RD&D Challenges on the Way Towards Success 7

Fuel Quality Impact on Vehicles – B 5 Ø Although low blends of biodiesel (<B 5) have been widely used and labeling is not required in many countries, local auto manufacturers may have some concerns. Chinese TAIPEI Ø JAMA’s Test l. Diesel fuel blended the FAME meets EN 14214 by 5 vol% l. Corrosion was observed in the Fuel Tank Test l. Abrasive wear was observed in injector in the Engine Durability Test Ref: JAMA’s presentation, Sep. 5, 2006 Experience in Biofuels: RD&D Challenges on the Way Towards Success 8

Fuel Quality Impact on Vehicles – E 3 Ø Preliminary Survey by local Auto Manufacturers l~6 millions passenger vehicles in total Chinese TAIPEI l 82% of post-2000 vehicles (~1 million cars) are suitable for E 3 Ø ~12 millions motorcycles/scooters in total and 95% of them adopt carburetor, Ø A preliminary tests showed the increases of regulated air pollutants from old vehicles fueled by E 3 Ø Dual supply of E 3 with labeling and regular gasoline may be necessary Experience in Biofuels: RD&D Challenges on the Way Towards Success 9

RD&D Challenges Ø Biodiesel Confirmation Test l. Corrosion and Oxidation Stability l. Iodine Value, Linoleic FE, Polyunsaturated FE Chinese TAIPEI Ø E 3 tests are essential, especially for scooters Ø Two-Stage Transesterification for Waste Cooking Oil Ø Algae Cultivation as Biofuel Feedstock Ø Ethanol from Cellulose Ø Other Biofuels, eg. BTL, Butanol, etc. Experience in Biofuels: RD&D Challenges on the Way Towards Success 10

Concluding Remarks Ø Support from all stakeholders is necessary Ø Government subsidy is necessary for the promotion of biofuels Chinese TAIPEI Ø Blend ratio can be higher if biofuels are cheaper than petro-fuels Ø Multi-feedstocks is the trend in the future Ø R&D is essential for the adoption of biofuel l. Cost l. Quality l. Supply Experience in Biofuels: RD&D Challenges on the Way Towards Success 11

Chinese TAIPEI Thank you for your attention. Experience in Biofuels: RD&D Challenges on the Way Towards Success 12