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Germany has some 82 million inhabitants, who consume on the order of 27 million tons of diesel fuel annually. For the distribution of this fuel there are currently about 16,000 filling stations. In an effort to reduce the dependency on fossil fuels as well as the environmental effects of their consumption, such as greenhouse gas emissions, biodiesel has been developed as an alternative fuel for diesel engines. This fuel is now commercially available throughout Germany.
The use of biodiesel in Germany is still controversial. For example, while the federal ministry of finance defends the tax exemption of biodiesel, the federal environmental agency argues that the ecological benefits (e.g. possibly lower net CO2 emissions) do not justify the disadvantages (such as additional agricultural inputs) and the expenses.
Biodiesel has been produced for the German market since 1999 ( 1 ) Its raw material is an oil crop called rapeseed, which can also be used for human consumption or industrial purposes. In 2001 about 460,000 ha of rapeseed were cultivated in Germany for non-food purposes ( w1 ). These yielded some 470,000 tons of oil, of which about 300,000 tons were used for biodiesel production - equivalent to about 1% of Germany's diesel fuel consumption ( w1 ). The processing capacity of the transesterification plants is significantly higher though, and biodiesel production is increasing ( 1 ). Biodiesel is now available at about 1,500 filling stations throughout the country ( w1 ).
In Germany, as in other European countries, a certain percentage (currently about 10%) of agricultural land is taken out of food production every year ("set-aside") in order to curb overproduction of food. This land is often used for the production of non-food crops, the one most often cultivated in Germany being rapeseed. Farmers receive a financial compensation for their reduced food production, whether or not they grow non-food crops ( 1 ). The production of such crops may lead to additional income however, making it attractive to the farmer.
Biodiesel is exempt from the mineral oil tax, giving it a slight pump price advantage over regular diesel: at the time of writing, the price of biodiesel was about 0.76 euro/liter (2.67 US$/gallon), compared to 0.79 EUR/liter (2.77 US$/gallon) for regular diesel. This economic advantage does not reflect the production costs, which are significantly higher for biodiesel than for regular diesel. Hence the market viability of biodiesel depends heavily on governmental support policies.
The production and utilization of biodiesel is facilitated firstly through the agricultural policy of subsidizing the cultivation of non-food crops. Secondly, biodiesel is exempt from the mineral oil tax.
The resulting loss of tax revenues is partially offset through other tax effects of the biodiesel production chain ( 1 ).
Methyl alcohol is added to the rapeseed oil in a process referred to as transesterification, the methyl fraction being about 10% ( w1 ). The technical term for the end product is rapeseed oil methyl ester (RME) ( 2 ).
It can be used in most diesel engines without modification (except for certain older engines which might require some modification). Biodiesel can be used as a substitute for conventional diesel, or it can be added in any proportion. Biodiesel is non-toxic and biodegradable. However, biodiesel has lower energy content than diesel, leading to a higher fuel requirement of about 15% on a weight basis. (The Info Pool offers more information on biodiesel in the fuels section.) The biodiesel is distributed to separate pumps at filling stations throughout the country.
The production of RME also leads to certain by-products: glycerin which can be marketed in pharmaceutical quality, and rape meal, a high-quality protein fodder, which substitutes as much as 450,000 tons of imported soy meal, according to a macroeconomic assessment ( 1 ).
MAIN RESULTS AND EXPERIENCES
There are no insurmountable technological problems associated with the use of biodiesel; hence in this respect the experiences are favorable so far. However, even promoters of biodiesel do not envisage a higher market share of 5-10% ( w1 ) ( w2 ), one reason being the limited available agricultural area. Another reason why it is questionable that biodiesel will achieve a high market share are its high production costs and hence its dependence on governmental support. And finally, the question of whether its environmental benefits outweigh the disadvantages (e.g. considering the use of large agricultural areas for rape seed production, NOx emissions increases, etc.) remains debatable.
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