the market for biofuels in poland and perspectives for its

Wnuk J., Budzik R., Pardela I. (2005).
The Market for Biofuels in Poland and Perspectives for its Development.
In: D. Kereković (ed.). Geographic Information Systems in Research & Practice. IInd Part.
Croatian Information Technology Association – GIS Forum, University of Silesia, Zagreb, 114-118.
THE MARKET FOR BIOFUELS IN POLAND AND PERSPECTIVES FOR
ITS DEVELOPMENT
Jan Wnuk
The University of Management and Marketing in Sosnowiec
Ryszard Budzik
Czestochowa University of Technology
Faculty of Materials Processing Technology and Applied Physics
e-mail: [email protected]
Iwetta Pardela
Czestochowa University of Technology
Faculty of Management
Abstract
Biofuels are renewable energy sources that are refined from vegetable oils in agrorefineries. In recent
fuel oils have been produced from vegetable oils years in Europe and on the others continents. They are seen
as an alternative fuel to diesel oils. The use of vegetable oil to produce biofuels depends on many factors,
but mainly: the geographical region (the climate) and economic conditions. Biofuel is a worldwide issue,
gaining in importance especially in European countries.
1. Introduction.
Biofuels are renewable energy sources that are refined from vegetable oils in agrorefineries. In recent
years fuel oils have been produced from vegetable oils in Europe and on the others continents. They are seen
as an alternative fuel to diesel oils. The use of vegetable oil to produce biofuels depends on many factors,
but mainly: the geographical region (the climate) and economic conditions.9 Soya oil and palm oil are
produced in the largest quantities thorough the world, with sunflower oil and rapeseed oil in third and forth
place.10 However, at present only rapeseed oil has a practical significance in Central Europe.
2. Biofuels in European countries.
Biofuel is a worldwide issue, gaining in importance especially in European countries.11 There are
several motives behind the drive to produce fuel from rape of European: to deliver environmentally friendly
fuels for diesel engines, limit the emission of greenhouse gases, expand the secured sources of in liquid fuels
for transportation, the decrease threats to health, deliver a fuel with profitable relationship between costs and
effects.12 Moreover, the production of biofuels has it roots in agricultural politics, with the possibility of
using uncultivated lands.
Different system of biofuel production from rape’s seed occur in individual countries of European
Union.13
In France, production is centralized and concentrated in the hands of a few industrial large companies.
In this solution there is a strong connection with the oil industry as the final receiver of rapeseed oil.
9
S. Ptasznik, K. Mińkowski „Potencjalne surowce do otrzymywania estrów kwasów tłuszczowych jako biopaliwo”,
materiały II Konferencji pt. „Nowoczesne technologie w rolnictwie”, Łódź, wrzesień 2002r.
10
K.Mielec, P. Frackowiak „Biorafinerie dla wsi i gminy”, Czysta Energia nr 4/2001, str. 16
11
A. Kulczyki „Biopaliwo rzepakowe a rynek paliw”, materiały II Konferencji pt. „Nowoczesne
technologie w rolnictwie” Łódź, wrzesień 2002r.
12
W. Korbitz „Nowe światowe trendy rozwoju biopaliw do silników wysokoprężnych” Materiały konferencji nt.
„Odnawialne źródła energii u progu XXI wieku” IMBER Warszawa 2001r., str. 313
13
A. Grzybek „Możliwości produkcji biopaliwa rzepakowego w Polsce”, materiały II Konferencji
pt. „Nowoczesne technologie w rolnictwie” Łódź, wrzesień 2002r., str. 71
114
Wnuk J., Budzik R., Pardela I. (2005).
The Market for Biofuels in Poland and Perspectives for its Development.
In: D. Kereković (ed.). Geographic Information Systems in Research & Practice. IInd Part.
Croatian Information Technology Association – GIS Forum, University of Silesia, Zagreb, 114-118.
Austria is characterized by the existence of small, but numerous oil mills situated near agricultural
producers. It was one of the first countries to start a programme for generating the energy from biomass.
In Spain the production of liquid fuels from biomass was included in a national plan, making available
for the development of rural areas and the creating new workplaces.
In Germany, small and medium size enterprises have been established, mainly in rural areas.14 Oil
mills are owned by farmers or private businessmen connected with agriculture. They have few difficulties
with selling the oil. As the oil mills produce mainly rapeseed oil for the food industry and for fuel.
The technology need for the production of fuel from rapeseed oil is the subject of great interest.15 In
countries of European Union the production of biofuel is subsidized for social and economic reasons.
However, the promotion of production the biofuels is different in individual countries of European Union.
In Germany biodiesel has been exempted from taxes since 1992.16 In1999 a special tax of 0.03 euro
per litre was imposed on fuel from mineral sources.
In Holland there are higher taxes on fuels from mineral sources.17 Moreover, it is possible to deduct
expenses from investments connected with the production of energy from renewable sources from tax.
Additionally, loans connected with this type of activity are about one percent lower than the market rate.
In France, the esters of rapeseed oil are exempt from taxes.
In Austria, the decision of European Parliament taken in the middle of 2002 concerning tax relief
and refinancing of ecological fuels was particularly significant.18 Thanks to this decision it is possible to
offer biofuel at a low price and so be competitive in the market.
3. The situation of biofuels in the Polish market.
Cold pressed rapeseed oil is produced in a direct way with few waste products. It can be produced by
small oil mills, with farmers participating in the profits. They are the supplies of rape and also the recipients
of oilcakes as well as rapeseed oil as a fuel. However, the lack of engines which can run on clean rapeseed
oil presents a problem.
The production of biodiesel requires the chemical modification of rapeseed natural oil. During
its production, the chemical esteryfication of fatty acid is carried out by adding methyl alcohol to
rapeseed oil. Esterification gives rise to by-product in large quantities, which must be removed or
subjected to processing in order to receive e.g. glycerin. This requires greater expenditure than just
esterification. The other by-products, which are serious problems in the production of biodiesel,
treated as a waste products.
Attempts to put the production of ecological fuels into practice, started 30 years ago.19 While this
effort were successful, a lack of regulation meant it was not applied on a large scale. The really breakthrough
only happened recently.
The future of the production of biofuels was laid by the authorities of European Union, when
they ordered the development of the production of energy from renewable sources. In Poland this
means that bioethanol should be added to petrol and esterized rapeseed oil to diesel oil.20 The current
legal, tax and financial situation is as follows:21
14
W. Jabłoński, J. Wnuk „Odnawialne źródła energii w polityce energetycznej Unii Europejskiej i Polski”
Wydawnictwo Wyższej Szkoły Zarządzania i Marketingu w Sosnowcu, Sosnowiec 2004
15
I. Lange „Ekologiczne paliwo rzepakowe – stan obecny i perspektywy” Gospodarka Paliwami i
Energią nr 4/2002r., str. 26
16
A. Grzybek „Organizowanie się rynku biopaliw płynnych impulsem do aktywizacji terenów rolniczych. Technicznoekonomiczna analiza opłacalności” materiały seminaryjne „Bioenergia w rolnictwie” POLAGRA FARM 2002r., str. 19
17
Ibidem, str. 19
18
A. Hoffman-Pianka „W trosce o środowisko. Austria pod unijna presją” Nafta &gazbiznes, kwiecień 2003r., str.16
19
20
R. Boruc „Jazda na rzepaku", miesięcznik „Businessman", maj 2002r., str. 54
M. Neczyński „Nareszcie biopaliwa”, Czysta Energia, nr 4/2002, str. 6
21
G. Wiśniewski, M.Rogulska „Ramowe regulacje stosowania biopaliw w Polsce i Unii Europejskiej”, Czysta energia
nr 5/2002, str. 8
115
Wnuk J., Budzik R., Pardela I. (2005).
The Market for Biofuels in Poland and Perspectives for its Development.
In: D. Kereković (ed.). Geographic Information Systems in Research & Practice. IInd Part.
Croatian Information Technology Association – GIS Forum, University of Silesia, Zagreb, 114-118.
- since 1994 tax relief has been applied to excise duties for petrol with added ethanol. The level of
annual tax exemption is connection to the national budget, though the level of this tax
exemption is lower and lower.
- since 1 March 1992, a norm regulating the composition
of petrol has been in force. Organic
compounds, and also dehydrated ethanol can be added in the quantity not more than 5 % of petrol
volume.
- many enterprises are interested in the production and use of biofuel, on condition that it will be
profitable.
The Ministry of Agriculture drafted the bill about the organization of the market for biofuels and their
components. Actually, the legislative works about biofuels are led.22
The volume of bioethanol in liquid fuel should be between 4 and 5 % of the total volume of fuel.23
The level of this additions is set to rise, reaching 20% of the volume of fuel by2020 year.24 This will lead to
the development of a new field of production in Poland as well as the development of the agriculture sector.
Increasing the production of biofuels in Poland requires the creation of a future policy, which will
support the profitability of this undertaking. This is because the production of both bioethanol and methyl
esters of vegetable oil is more expensive than the production of petrol or diesel oil.25 It is essential that
biofuels are exempted from taxes, and financial help is provided to support this industry.
Current political declarations, on the production of fuels from renewable sources mean that the phase
of its development will be supported.26
4. Benefits of introducing biofuels into the Polish market.
Beginning the production of biofuels will bring social and ecological benefits.
R. Boruc claims
that in the oil from rape production process 73 thousand people will find place of employment. Moreover, it
is possible to decrease fuel imports by 700 thousands tons. This will improve the balance of trade and reduce
Additionally it will be possible to utilize uncultivated land
pollution of the atmosphere.27
for the production of biofuels and the domestic production of high protein fodder for animals will grow
meaning their importation will be limited.
All participants in the market should benefit, particularly the farmers.28
In addition, the farmers will have access to oilcakes, the by-product of pressing oil from seeds. These
are valuable component of fodders for farm animals which means the farmers will be able to increase the
profitability of production and have a chance to broaden the market for their products.
The companies involved in the production of biocomponents can gain a new source of income.29
Companies from the following sectors could be interested in entering the market:: distilling, chemical
industry and petro-chemical industry. New legislation will encourage companies to make use of
unused capacity. The fat processing industry has 20% unused capacity and only 300 of the 900
agricultural distilleries are in use in Poland.30
The costs of biofuel production are very high in Poland. In addition, taxes, especially excise, make
production unprofitable.31 Poland is not an exception in this case, the government intervention is essential.
The loss to the state budget because of excise exemption will be compensated for additional receipts
from income tax, VAT and agricultural tax.
22
23
A. Grzybek „Organizowanie się rynku biopaliw …., op. cit., str. 19
Więcej na ten temat w artykule pt. „Biopaliwa znowu w Sejmie", magazyn rynku paliwowego
„Paliwa płynne" nr 5/2003, str. 28
24
M. Neczyński „Nareszcie biopaliwa…, op. cit., str. 6
R. Boruc „Jazda na rzepaku…, op. cit., str 55
26
G. Wiśniewski, M.Rogulska „Ramowe regulacje…, op. cit., str. 8
27
R. Boruc „Jazda na rzepaku…, op. cit., str. 55
25
28
P. Janas „Nikt nie powinien stracić", „Paliwa płynne" nr 1/2003, str. 26
P. Janas „Biopaliwa kuszą producentów”, „Paliwa płynne" nr 1/2003, str. 25
30
P. Janas „Nikt nie powinien…, op. cit., str. 26
29
31
E. Dziendziel „Przyszłość rynku biopaliw w Polsce", materiały konferencyjne pt. „Rynek biopaliw w Polsce. Bilans otwarcia.",
Warszawa, 16 grudnia 2002r.
116
Wnuk J., Budzik R., Pardela I. (2005).
The Market for Biofuels in Poland and Perspectives for its Development.
In: D. Kereković (ed.). Geographic Information Systems in Research & Practice. IInd Part.
Croatian Information Technology Association – GIS Forum, University of Silesia, Zagreb, 114-118.
Thanks to the creation of new workplaces, payment to the unemployment will be reduced. The growth
in demand for rape will enable farmers to farm profitably. This will improve living conditions in the country
and stabilize the rape market.
The growing demand for oil seed rape will make it viable to farm uncultivated farm. There is a lot of
uncultivated lands in Poland much often developed in a bad way, so rape production could offer a real
alternative.
Introducing the production of liquid biofuels could improve Poland’s level of energy self- sufficiency
and introduce an antimonopoly element into the fuel market. Thanks to the realization of the programme of
biofuels production, the deficit in a foreign trade will be reduced. Imported diesel oil will be replaced with
biofuel and imported additions to animal fodders will be replaced with the by-products of biofuels
production.
5. Conclusion.
Rape is the basic oily plant, cultivated in Europe and in recent year rapeseed oil has been used as an
admixture to car fuels . The most important manufacturers are: Germany, France and Poland.
Interest in this type of fuels is growing year by year because of the advantages, connected with
ecology and economy. The production of biofuels reduces dependence on the importation the crude oil and
makes it possible to develop uncultivated and contaminated lands, enabling the unemployed to find a
workplace.
We are witnessing the birth of a new industry. It offers the hope of: new workplaces, environmental
protection, etc.32 This optimism is a result of using a resource, which regenerates every year. The finished
product is clean, without hydrocarbon and without sulphur. As a result exhaust fumes are much cleaner.
The problems connected with biofuels should be recognized and solved. We can model ourselves on
countries, which are experienced in the production of this type of fuel.
The countries of European Union apply different solutions which assist to development of the market
for biofuels. Direct subsidies are given to farmers. They can receive investment allowances or special extra
payment to develop their industrial plants. Some European countries offer tax relief to enterprises trade in
biofuels.
At present a new bill is being enacted, which will regulate the market for liquid biofuels in Poland. It
will be concern with basic formal and legal problems and regulate the market.33 It is common knowledge that
the costs of production of biofuels are higher than for other fuels, so an increase in production of biofuels
will be possible on condition that the government supports this renewable energy source.
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Wnuk J., Budzik R., Pardela I. (2005).
The Market for Biofuels in Poland and Perspectives for its Development.
In: D. Kereković (ed.). Geographic Information Systems in Research & Practice. IInd Part.
Croatian Information Technology Association – GIS Forum, University of Silesia, Zagreb, 114-118.
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