Biofuels in Perspective

122 Biofuels
emphasize – and possibly dramatically increase – the cost-saving potential of plant oil
fuels.
In recent years, the price gap between plant oils and diesel fuel widened so substantially,
that diesel engine conversions amortize in a short period of time and then lead to substantial
savings.
Take, for example, a heavy duty truck consuming some 40,000 litres per year. With a net
diesel fuel price of EUR 1.15, a rapeseed oil price of EUR 0.85 per litre – and also taking
into account additional expenses caused by the plant oil infrastructure and maintenance –
a truck conversion produces ongoing annual savings of around EUR 10,000, while the
material and installation costs of a conversion kit amount to around EUR 4000.
In industrialized countries, the price advantage of plant oil fuels is mainly due to taxation:
the need to reduce the negative ecological impact of traffic emissions has led to public
support measures, such as the exemption or reduction of excise duties for biofuels compared
to fossil fuels. Complete excise duty exemptions are provided by a growing number of
countries, including Germany, Belgium, and Austria. In other countries, the future tax
policy towards biofuels is currently discussed, and related pilot projects are supported to
gain first-hand experience. ELSBETT currently supports such projects in Ireland, Romania,
France, and the Czech Republic.
For developing countries, plant oils also have good potential compared to fossil fuels:
Here, fuel cost benefits are based on inexpensive, favourable conditions for plant oil
production – contrasted by shortages in fossil fuel supply at a sufficient quantity and
quality. Some key advantages of plant oil fuels for such regions are:
� ecological benefits include anti-soil erosion measures through oil fruit afforestation
projects and organic fertilizer in the form of the oil cake derivate as a by-product;
� social benefits resulting from the support of local smallholder farmers and various employment
effects at the levels of farming, oil mill operations, filling stations and retail,
repair workshops, and counselling;
� political benefits in the form of an autonomous, self-sufficient energy policy and, possibly,
an export option for technical plant oils;
� economical benefits due to fuel cost savings and the strengthening of regional monetary
cycles: plant oils are often readily and cheaply available – while diesel fuel imports often
represent a bottleneck.
7.4 System Requirements
A plant oil driven energy project typically includes the following system partners:
� oil fruit farmers,
� plant oil processors and plant oil dealers,
� plant oil storage and retailing,
� suppliers of plant oil conversion technology,
� repair workshops and mechanics for conversion and for after-sales services,
� optionally: local research institutes and local media.