the effect of bioenergy production for the agricultural outputs ... - IAMO

THE EFFECT OF BIOENERGY PRODUCTION FOR THE AGRICULTURAL
ABSTRACT
OUTPUTS IN HUNGARY
PROF. DR. HABIL MIKLÓS PALKOVICS* – GÁBOR PINTÉR*
Because of environmental and economic policy reasons the renewable energy get even more
role. The production of bioenergy shows us a significant growth worldwide. This has effects
not only for the European Union but for the Hungarian agriculture in the long run.
The Hungarian agricultural outputs are potentially affected by burning of biofuel, biogas, and
biomass. The question of using and handling by-products gives a big exercise to the
researcher.
We study those processes in our paper which are indicated by the production of bioenergy in
the Hungarian agriculture nowadays. Some sectors of bioenergy, as production of biogas or
burning biomass, have not had big processes for the Hungarian agriculture yet, but we can see
the consequences some other sectors as the biofuel production.
KEYWORDS: biomass, bioenergy, biofuel, biogas, Hungary
INTRODUCTION
Production and use of bioenergy have become even more significant as a research field during
the last ten years. This is due to such world wide processes, as the need of independence in
the economic policy and the accompanying diffusing environmentalism in the political arena.
Bioenergy without state support was not able to be competitive with fossil energy because of
the missing external cost from the market price.
The situation is the same in Hungary. The country follows the processes of Europe as the
member of the EU: the government gives a push to the bioenergy production. However
Hungary is one step behind. While state supports are already considered to be cut back like in
Germany, in Hungary still the initial push is on the table. It is necessary to estimate the
influences for the Hungarian agricultural output accordingly. The bioenergy industry grows
exponentially in Hungary, so the effects of it are increasing.
*Professor, University of Pannonia Georgikon Faculty of Agriculture, Keszthely, Hungary
E-mail: pm@georgikon.hu
**PhD student, University of Pannonia Georgikon Faculty of Agriculture, Keszthely, Hungary
E-mail: pinter.gabor@2007.georgikon.hu

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Contributed Paper presented at IAMO Forum 2008
Hungary has excellent natural conditions of growing biomass. The annual sun hours are
between 1700 - 2400 hours yearly. The amount of raining is between 800 - 450 mm. More
than 50% of the territory of Hungary is tillage; the rate of the fields which are used by the
agriculture is more than 70%. The necessary plants for the bioenergy industry can give high
produce because of the geographical situation.
60
50
40
30
20
10
0
Biomass potential in Hungary [PJ]
58
31
36
Potentially usable
Currently
harnessed
Energy crops
1. figure: Biomass potential in Hungary [source: Prof. Kovacs K. MTA]
Hungary has not used its opportunities in the sector of biomass as you can see on the 1 st
figure. With the help of growing energy plants the potentially output energy could be the
double. Because of the getting stronger directives of the European Union (2003/30/EC
biofuels and 2001/77/EC “green power”) we have the consequence that the biomass
production of Hungary will extremely grow in the next few years. The outputs of the
Hungarian agriculture will also change.
1. PRODUCTION OF BIOETHANOL IN HUNGARY
The national oil company of Hungary (MOL) have mixed 4.4 cubic % bioethanol to the
traditional petrol since 1 st July 2007. 88 thousand litres (70 thousand tons) bioethanol is
mixed into 1.5 million tons (2 billion litres) petrol. [Popp] According to the 2003/96/EC
energy taxation directive Hungary uses 103.5 Ft (1 € ≈ 260 Ft) tax refund pro the litre of
circulated bioethanol.
Bioethanol is produced principally from maize and small amount (only for experiments) from
sugar beet and from potato in Hungary. Accordingly the most affected agricultural output is
the maize growing.
The bioethanol production from sugar beet would be wanted in Hungary because only one
sugar factory is working from the 12 ones that were working through centuries. Consequently
Hungary has only the quarter of the former more than 100 thousand hectare sugar beet

The effect of bioenergy production for the agricultural outputs in Hungary
production area. Each closed sugar factory means 100-200 workplaces. Bioethanol production
from sugar beet would be a great opportunity for the former farmers who grew sugar beet
before.
Since 2000 has begun the bioethanol production from maize in Hungary. A lot of investor
announced to build bioethanol factory. You can see this process on the 2 nd figure. Numerous
plans stopped in the process of authorisation and also numerous plans stopped just before the
physical investment. In 2007 Hungary had only two functioning bioethanol company. One of
these two is the traditional Győr Distillery Company which increased its production and sells
its product not only as alcohol but also as bioethanol too.
2. figure: Bioethanol plans in Hungary [source: MBSZ]
Only the Brazil bioethanol form sugarcane was competitive with the traditional petrol without
any support in 2007. The sugarcane gives the main field of the production. The bioethanol is
produced principally from maize in Hungary, like the other countries which situated in the
temperate zone. You can see the parameters of the Hungarian maize growing in the last 15
years on the 3 rd figure.
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1300
1200
1100
1000
900
Production area of maize
[thousand ha]
Maize
Contributed Paper presented at IAMO Forum 2008
1993
1995
1997
1999
2001
2003
2005
2007
10000
8000
6000
4000
2000
Produced maize
[thousand tons]
Maize
1993
1995
1997
1999
2001
2003
2005
2007
3. figure: Parameters of the Hungarian maize growing in the last 15 years [source: KSH]
The production area of maize increased in the period of 1998 - 2007 because of the beginning
of bioethanol production. The yearly amount of the produced maize was fluctuated because of
the weather. You can see these processes on the 3 rd figure.
Hungary has the goal to reach the 5.75% (in energy equivalent) mixing rate till 2010, that
means 8.61 cubic % in point of the bioethanol. To achieve this goal 172 thousand litre (136
thousand tons) bioethanol is needed to mix into the petrol. That amount of bioethanol can
produce from 400 thousand tons of maize. If we assume 6 tons / hectare produced amount it
will be necessary to sow 70 thousand hectares maize. [Popp] The production area of maize
was fluctuating between 1100-1200 thousand hectares in the last 8 years, so Hungary’s
bioethanol need will be only the 5-6% of the total maize production area in 2010. This is not a
considerable need and has basically no influences for the Hungarian agricultural outputs. The
annual need of 400 thousand tons of maize is only a small amount beside the Hungarian
annual production, the 4000 – 8000 thousand tons. The weather is able to generate bigger
effects for the Hungarian maize growing than the bioethanol production.
According to the opinion of the authors the amount of maize, which is used by bioethanol
production, can not cause a big price-increasing; so the Hungarian feed-price will not increase
heavily. The DDGS which is produced by secondary product of bioethanol production can be
used as feed. If Hungary uses 400 thousand tons maize to produce bioethanol, minimum 100
thousand tons of DDGS will be produced too. This amount of DDGS could replace the maize
which is used by bioethanol production.
Only the Hungarian bioethanol industry will not able to change basically the production area
of maize and the agricultural outputs in Hungary in the next 5 years.

The effect of bioenergy production for the agricultural outputs in Hungary
Hungary is dependent from the market of the European Union and from the market of the
world too. The international processes can heavily affect the Hungarian maize production.
Because of the increased price of maize by the growing bioethanol production on the market
of the world can raise export in Hungary. This process could cause a heavy increasing of the
production area of maize in Hungary in the long run.
2. PRODUCTION OF BIODIESEL IN HUNGARY
Hungary consumes annual about 2.5 million tons (3.5 billion litres) diesel oil. The national
oil company (MOL) have mixed 4.4 cubic % biodiesel to the diesel oil since 1 st January 2008.
It means 156 thousand litres (130 thousand tons) biodiesel. According to the 2003/96/EC
energy taxation directive Hungary uses 85 Ft (1 € ≈ 260 Ft) tax refund pro the litre of
circulated biodiesel.
4. figure: Planned biodiesel plants in Hungary [source: MTA]
Biodiesel is produced principally from rape and smaller amount from sunflower in Hungary.
The country can produce only 2 tons / hectare rape but for example Germany can produce
around 4 tons / hectare. The climate in Hungary is excellent for the sunflower but oil can be
produced more efficiently from rape than from sunflower.
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Contributed Paper presented at IAMO Forum 2008
You can see the planned and also the functioning biodiesel plants of Hungary on the 4 th
figure. In 2007 Hungary had only 3 functioning biodiesel plants. Biodiesel production is not
able to generate profit without any support in the world. Hungary has the same situation. Like
numerous bioethanol plants many biodiesel plants “died” during the authorisation.
You can see the parameters of Hungarian rape and sunflower production on the 5 th figure. The
continuous growing of production area and produced amount of rape is readable from the
figure. The production area of the sunflower stagnates because Hungary uses all of its
capacities to produce sunflower. The country gives more than 20% of the production of rape
of the European Union. The Hungarian production area of sunflower can not grow any longer
because the plant mustn’t be sowed in the same place during five years. Hungary has around
4.6 million hectare tillage. In 2007 the production area of sunflower was 780 thousand
hectare. Consequently more than the 1/6 total tillage was sowed with sunflower so the country
reached its capacity-border.
5. figure: Parameters of the Hungarian sunflower and rape growing [source: KSH]
You can see unequivocally on the 5 th figure that thanks to the international growing of the
biodiesel production the Hungarian rape production is growing year by year. This process
started in 2000 and has not stopped yet. The supply adapted to the delay. You can see this
process only for rape because the capacity borders blocked the sunflower production. You can
get oil from rape easier and cheaper than from sunflower at the present technical level.
Hungary has the goal to achieve the 5.75% mixing rate (in energy equivalent) in 2010. This
means 6.51cubic % mixed biodiesel which is equivalent 228 thousand litres, 200 thousand
tons. The forecasted demand of raw materials is 400 thousand rape or sunflower in 2010.
[Popp] Biodiesel can be produced from dead oil so could decrease the effects of the biodiesel
production to the Hungarian agricultural outputs. The used rape or sunflower as raw material

The effect of bioenergy production for the agricultural outputs in Hungary
could be change to the dead oil. Hungary does not have the assumptions to collect the dead oil
and produce biodiesel from it.
If we assume that Hungary is not able to collect a big amount of dead oil to create biodiesel in
2010, it will be expedient to produce biodiesel only from rape. 400 thousand tons of rape
means more than the fourth amount of the total (1500 thousand tons) rape production of
Hungary. Consequently it will be necessary to use more areas to produce rape in Hungary. If
the amount of biodiesel which is made from sunflower increases, the price of the oil which is
used by the households can be more expensive.
The researcher should make allowance for the processes of the world market. The demand for
rape and sunflower can increase through the rise of biodiesel production. The European Union
has a leader position in biodiesel production so these processes have bigger effect in the EU.
(Of course the demand of palm oil will increase but this process has the biggest effect only for
the agriculture of tropical countries.) The authors expect an increase of the price of the rapeand
sunflower oil that generates a growing effect of rape production in Hungary. The country
can expect a rising rape production area. Consequently the increasing rape production area
may displace other plants but this process is very incalculable yet.
Rape mill and sunflower mill are the by-products of biodiesel production. The sunflower mill
is able to burn in power plants and the rape mill is an excellent feed. The authors expect a
heavy decrease of the price of rape mill, because of increasing rape production of the last
years. The rape mill can deputize the maize which is used for feed animals. Consequently the
price of feed can stagnate in the following years.
In 2010 Hungary will grow 400 thousand tons of rape to produce biodiesel. As by-product the
country has 200 thousand tons rape mill in 2010. Confronting this numbers with that numbers
which we have at the end of the last chapter we got the following result:
Hungary will use 400 thousand tons of maize for its bioethanol production in 2010.
Consequently 400 thousand tons of maize is missing as feed, but 100 thousand tons of DDGS
is produced as by-product of bioethanol production + 200 thousand rape mill is produced as
by-product of biodiesel production. We get the result that Hungary has 300 thousand tons of
feed instead of 400 thousand tons of maize as feed. It means that only 100 thousand tons of
feed will miss in 2010. These 100 thousand tons of feed can be compensated with a minimal
growth of the production area of maize. Accordingly a high increasing of the feed prices
because of the biofuel production is not probable in Hungary.
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3. BIOGAS PRODUCTION IN HUNGARY
Contributed Paper presented at IAMO Forum 2008
The rise of the Hungarian biogas production does not cause considerable effect in agricultural
outputs. Hungary uses mostly by-products to produce biogas. As you can see on the 6 th figure
more than 60 % of the secondary-products are left on the fields. The by-products do not mean
considerable nutrient for the plants which is grown on fields. Consequently biogas production
from by-products does not cause the growth of demand for chemical fertilizers. The
secondary-products of biogas production can be used as an excellent fertilizer.
63%
6%5% 7%
3%
16%
feed
litter
material for
burning
roots, stuble
stay on the fields
6. figure: Tillage by-products in Hungary [source: KSH]
Biogas can be produced from maize and from sugar beet. To use these plants for biogas
production is economically not so efficient than other kind of uses. But to produce biogas
from by-products of these plants can be economically efficient like in Kaposvár (Hungary),
where biogas is produced from the secondary-products of the sugar factory. The advantages to
produce biogas from by-products are the following processes: rising incomes of the farmers
diversify markets and better quality of life. Accordingly Hungary tries to use even more byproduct
to produce biogas. This process has no considerable effect for the agricultural outputs
in Hungary.
4. ENERGY-FOREST – ENERGY-GRASS, EFFECTS FOR THE HUNGARIAN AGRICULTURE
The energy forest does not give any income to the farmers at least in the first 2-3 years.
Accordingly the Hungarian farmers which mostly have the problem of capital-scarce do not
show a big interest of it. To grow other plants is more rewarding for the farmers on the pricelevel
of nowadays.
A special licence is needed for deployment an energy forest in Hungary. The Hungarians
thermal power stations usually buy the biomass from floristries. According to the 2001/77/EC
“green power” directive of the European Union Hungary have to produce at least 6.2% energy
else

The effect of bioenergy production for the agricultural outputs in Hungary
of the total consumption from biomass. Hungary achieved the requirement already in 2007 so
the governmental “push” is getting less on the matter of “green power“. Boilers which
burning pellets have been found on the Hungarian market for 5 years. The authors expect that
the demand for the pellet will grow in a long term because of the rising number of the boilers.
The cost of the investment is really high so a peak-increase of the demand for pellets is not
expected. Consequently the energy forest will not have a big effect for the agricultural outputs
in Hungary.
The country has the same situation on the matter of energy grass. A big disadvantage of
burning energy grass is its needs for special boiler which is really expensive. The supply for
energy grass is low in Hungary because of the missing demand for it.
Accordingly neither the energy forest nor the energy grass has considerable effects for the
agricultural outputs in Hungary.
CONCLUSION
To study the growth of the Hungarian biomass production the authors expect considerable
effect only from the rape production to the agricultural outputs. Neither the biogas nor the
energy forest or the energy grass can cause big effect for the agricultural outputs in Hungary
in the next few years. The demand for maize as basic material for bioethanol production will
increase but the demand for maize as feed will decrease because of the growth of the
secondary-products of biofuel production. Consequently the authors expect only a minimal
growth of the production area of maize in the next few years.
The biodiesel production of Hungary has bigger effect for the agricultural outputs. The
production area of rape has grown more than 30% since 2001. The authors expect more than
25% accession of the Hungarian rape production area till 2010 because of the continuously
growth of it.
The processes of the word market and the Hungarian export / import rate can have big
influences to the values which are counted by the authors.
If the processes of the word market do not change much and the energy policy of the
European Union remains the same, the production area of the rape will raise a lot in Hungary.
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Contributed Paper presented at IAMO Forum 2008
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