Evaluation and Progress Report 2015

Biomass Energy Sustainability Ordinance Sustainability Ordinance 1 | Imprint

Evaluation and Progress Report 2015

Published by Federal Office for Agriculture and Food Deichmanns Aue 29 53179 Bonn, Germany

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Editor Federal Office for Agriculture and Food Sub-Division 221 – General Matters re. Group 22, Matters re. Recognition and Accreditation, Control Procedures re.

This evaluation report is protected by copyright. No part of this report may in any form be translated, processed, duplicated or disseminated without the ex- plicit written authorization of the Federal Office for Agriculture and Food.

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Status text: September 2016 Status data base excerpt: June 2016

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Content

List of diagrams ...... 3 List of tables...... 4 Preface ...... 6 1. General Matters...... 6 1.1 Introduction...... 6 1.2 Summary of important results in 2015...... 9 1.3 Methodology ...... 10 2. BLE responsibilities...... 12 3. Certification systems, voluntary systems and national systems of other Member States...... 14 3.1 Certification systems recognised by the BLE ...... 14 3.2 Vo luntary systems pursuant to Art. 32 No. 3 BioEn SusO and/or Biofue SusO...... 15 3.3 National systems of other Member States...... 16 3.4 Economic operators...... 16 3.4.1 System participants who were notified to the BLE ...... 18 3.4.2 Suppliers subject to German customs supervision ...... 19 3.4.3 Participants in national systems of other Member States...... 19 4. Certification bodies...... 20 4.1 Worldwide certifications according to German systems‘ prerequisites...... 22 4.2 Certifications according to voluntary systems‘ prerequisites...... 23 5. The Government data base Nabisy and proofs of sustainability ...... 24 5.1 Sustainable biomass system [Nachhaltige Biomasse System] Nabisy...... 24 5.2 Proofs ...... 25 6. ...... 29 6.1 Origins of source materials ...... 31 6.2 Source materials according to origins and types ...... 35 6.3 Biofuel types ...... 41 6.4 Greenhouse gas emissions and savings...... 47 6.5 Emissions savings of individual types of biofuels acc. to GHG reduction levels ...... 54 7. Bioliquid ...... 59 7.1 Types of ...... 59 7.2 Source materials and origins of vegetable oils used as bioliquids...... 60 7.3 Emissions and savings...... 61 8. Retirement accounts...... 64 9. Perspectives...... 69 10. Background data ...... 70 11. Conversion tables, abbreviatios, glossary of terms...... 77

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Evaluation and Progress Report 2015

List of diagrams

Diagram 1: System participants notified to the BLE ...... 18 Diagram 2: Worldwide certifications carried out according to DE system requirements ...... 23 Diagram 3: Nabisy accounts used ...... 24 Diagram 4: Nabisy accesses for economic operators...... 25 Diagram 5: Annual comparison of all biofuels ...... 29 Diagram 6: Annual comparison of all biofuels (incl. waste/residue) ...... 30 Diagram 7: Origins of source materials worldwide ...... 31 Diagram 8: Origins of source materials in Europe...... 32 Diagramm 9: Origins of source materials 2015 within the EU ...... 33 Diagram 10: Origins of source materials 2015 from European third countries...... 34 Diagram 11: Source materials for biofuel - originating in Africa ...... 35 Diagram 12: Source materials for biofuel - originating in Asia ...... 36 Diagram 13: Source materials for biofuel - originating in Australia...... 37 Diagram 14: Source materials for biofuel - originating in Europe...... 38 Diagram 15: Source materials for biofuel - originating in Central America ...... 39 Diagram 16: Source materials for biofuel - originating in North America...... 39 Diagram 17: Source materials for biofuel - originating in South America...... 40 Diagram 18: Biofuel types ...... 41 Diagram 19: Biofuels 2015 ...... 42 Diagram 20: Source materials bioethanol ...... 43 Diagram 21: Source materials FAME ...... 44 Diagram 22: Source materials HVO ...... 45 Diagram 23: Source materials biomethane ...... 45 Diagram 24: Source materials ...... 46 Diagram 25: Biofuel emissions and savings ...... 48 Diagram 26: Biofuel emissions...... 49 Diagram 27: Biofuel emission savings...... 49 Diagram 28: Biofuel emissions according to biofuel type ...... 50 Diagram 29: Biofuel emission savings according to biofuel type...... 51 Diagram 30: Emission savings bioethanol 2015 ...... 52 Diagram 31: Emission savings FAME 2015 ...... 53 Diagram 32: Annual comparison of all biofuels ...... 59 Diagram 33: Types of biofuels...... 59 Diagram 34: Source materials vegetable oil...... 60 Diagram 35: Vegetable oils from according to origins...... 60 Diagram 36: Biofuel emissions and savings ...... 61 Diagram 37: Biofuel emissions...... 62 Diagram 38: Total biofuel emission savings ...... 62 Diagram 39: Emissions of types of biofuel...... 63 Diagram 40: Emission savings of types of biofuel...... 63 Diagram 41: Discharge of proofs to Member States and third countries 2015 ...... 64 Diagram 42: Emission savings in comparison ...... 65 Diagram 43: Discharge of proofs to Member States and third countries ...... 66 Diagram 44: Discharge of proofs to other accounts...... 68

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List of Tables

Table 1: Total number of applications submitted by certification systems...... 14 Table 2: Voluntary systems (EU systems)...... 15 Table 3: Applications for recognition as certification body ...... 20 Table 4: Recognised certification bodies...... 21 Table 5: Number of DE certifications ...... 22 Table 6: Proofs of sustainability issued...... 26 Table 7: Reference values for the calculation of biofuel emissions...... 47 Table 8: Emission savings bioethanol according to source material ...... 54 Table 9: Emission savings bioethanol according to source material and origin...... 55 Table 10: Emission savings FAME according to source material ...... 56 Table 11: Emission savings FAME according to source material and origin ...... 57 Table 12: Emission savings vegetable oil according to source material ...... 58 Table 13: Emission savings biomethane according to source material ...... 58 Table 14: Reference values for the calculation of bioliquids ...... 61 Table 15: Discharge to Member States and third countries...... 68 Table 16: Biofuels in TJ – source materials ...... 70 Table 17: Bioliquids in kt - source materials...... 71 Table 18: Biofuels in TJ - source materials and their origins...... 72 Table 19: Biofuels in kt - source materials and their origins...... 73 Table 20: Sum total of biofuels per source material...... 74 Table 21: Emissions and emission savings of biofuels ...... 75 Table 22: Emissions and emission savings of bioliquids ...... 75 Table 23: Types of bioliquid [TJ]...... 76 Table 24: Biofuel vegetable oil in TJ – source materials ...... 76 Table 25: Vegetable oils from palm oil according to origin (bioliquid) [TJ]...... 76

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Evaluation and Progress Report 2015

Preface

Dear Readers,

this is the sixth Evaluation and Progress Report presented by the Federal Office for Agriculture and Food (BLE) as the competent authority.

As of 2015, the greenhouse gas reduction quota has replaced the energetic blending requirement. For fuels brought into circulation in Germany, the parties obliged to provide proof had to prove emission savings of 3.5 % compared to their individual reference value. They fulfill the savings requirement largely by blending biofuels with fossil fuels.

Now that the greenhouse gas reduction quota has been in place for its first year, it has become obvious that all parties concerned strive to keep emission levels as low as possible across the entire value chain. Relevant data are presented in a separate sec- tion of this report. Higher emission saving levels entail a lower total of biofuels needed to fulfill the quota requirement. It also becomes obvious that, on average, retired fuels not intended for use in Germany generate higher emission levels.

In 2015, the European Court of Auditors checked the EU System for the Certification of Sustainable Biofuels used by the Commission and published the resulting Special Report 18/2016. Within the framework of this activity and to gather information, auditors of the European Court of Auditors also visited the BLE, among other au- thorities.

This Evaluation and Progress Report intends to inform both the interested public and experts on the development and progress of biofuels brought into circulation in Ger- many.

Dr. Hanns-Christoph Eiden President of the Federal Office for Agriculture and Food

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1. General Matters

1.1 Introduction

On 5 June 2009, Directive 2009/28/EG of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of electricity from re- newable sources (Renewable Energies Directive) was published in the Official Journal of the European Union. It is part of the EU climate and energy package adopted by the Council on 6 April 2009. This package consists of binding leg- islation to ensure that the EU achieve its climate and energy goals by 20201.

The control of European energy consumption and the increased use of energy from renewable sources, together with energy savings and increased energy efficiency, constitute important parts of the package of measures needed to reduce greenhouse gas emissions and comply with the Kyoto Protocol to the United Nations Frame- work Convention on Climate Change, and with further Community and interna- tional greenhouse gas emission reduction commitments beyond 2012.

The Directive aims, inter alia, at increasing the share of energy from renewable sources within the EU, and to reduce both the dependency on fossil electricity sources and greenhouse gas emissions.

At national level, each member state shall thus introduce measures and develop the appropriate instruments designed to achieve the goals set or national goals which go beyond those.

The use of energy from renewable sources in the transport sector is consid- ered to be among the most efficient means for the Community to reduce its dependency on crude oil imports for the transport sector, where the problem of safe energy supplies is most acute, and to influence the fuel market2.

1 The three primordial goals of the package: Reduction of greenhouse gas emissions by 20 % (as com- pared to levels in 1990), 20 % of EU energy from renewable sources, improve energy efficiency by 20 % 2 Recitals of Directive 2009/28/EC of the European Parliament and the Council

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Evaluation and Progress Report 2015

For biofuels and bioliquids the Renewable Energies Directive provides sus- tainability criteria:

- The reduction of greenhouse gas emissions achieved through the use of biofuels and bioliquids must amount to a minimum of 35 %,

- Biofuels and bioliquids may not be produced from raw materials ob- tained from high biodiversity areas,

- Biofuels and bioliquids may not be produced from raw materials ob- tained from high-carbon stock areas,

- Biofuels and bioliquids may not be produced from raw materials ob- tained from areas which were peatlands in January 2008, unless it is proved that the cultivation and harvest of the respective raw material does not involve drainage of previously undrained soil.

According to Commission Communication 2010/C 160/02 the sustainability criteria for biofuels and bioliquids may be implemented as follows:

1. via national systems, 2. via applying a voluntary scheme recognised by the Commission for that purpose, or 3. by fulfilling the rules of a bilateral or multilateral agreement between the European Union and third parties, which was recognised by the Commis- sion for that purpose.

Up until the deadline of 31.12.2015, the European Commission published imple- menting decisions for the recognition of 18 voluntary systems within the scope of the Renewable Energies Directive. Since then, these voluntary systems have been oper- ating alongside the certification systems recognised by the BLE (DE Systems) and to national systems of other Member States in the sustainable biomass production sec- tor. In addition, the European Commission recognised a greenhouse gas calculation tool.

On 04.08.2010, the German government adopted the National Action Plan for renewable electricity. Also, on 28.09.2010, the German government published its energy concept for an environmentally friendly, reliable and affordable en- ergy supply. Pursuant to Article 27(1) of the Renewable Energies Directive, and regarding the transposition into Member States‘ national law by 05.12.2010, Germany transposed the Directive by publishing both the Bio- massestrom-Nachhaltigkeitsverordnung, BioSt-NachV [Biomass Energy Sus- tainability Ordinance, BioEnSusO], of 23.07.2009 and the Biokraftstoff- Nachhaltigkeits-Verordnung, Biokraft-NachV [Biofuel Sustainability Ordi- nance, Biofuel-SusO], of 30.09.2009 in the Federal Law Gazette. These sus- tainability ordinances implement the Renewable Energies Directive and repre- sent part of the measures included in the German National Action Plan and the Federal Energy Concept.

With Directive (EU) 2015/1513 of the European Parliament and the Council of 9 September 2015 amending Directive 98/70/EC relating to the quality of petrol and Page 7 of 78 Chapter 1 | 8

diesel fuels and amending Directive 2009/28/EC on the promotion of the use of en- ergy from renewable sources, the European legislator established a ceiling of 7% for the share of biofuels obtained from food crops (conventional biofuels) and allowed less time to meet the sustainability criterion of minimum GHG savings, increased from an actual 35% to a future 50% (as of 2018) and to 60% for new plants (as of 2017)3. In Germany, on 1 January 2015, the energetic biofuel quota was replaced by the greenhouse gas reduction quota. Since then, parties obliged to provide proof must ensure that the greenhouse gas emissions of the fossil petrols and fossil diesel fuels, in addition to the greenhouse gas emissions from the biofuels they bring into circula- tion, are reduced by a defined percentage compared to their individually calculated reference value4. The reduction, compared to the reference value, amounted to 3.5 percent in 2015 and 2016; it shall amount to 4 percent between 2017 and 2019 and to 6 percent as of 2020.

As an accompanying measure to the introduction of the greenhouse gas reduction quota, the BLE drafts regular reports for the Commission and for both the voluntary and the national systems, on the proofs of sustainability with particularly low emis- sion values entered in Nabisy. If the value indicated in the proof of sustainability falls short of the so-called typical value, or of a value comparable to that, by at least 10%, it appears as a ”particularly low emission value“ in that evaluation.

3 Art. 17 (2) Directive 2009/28/EC 4 The reference value compared to which the greenhouse gas reduction has to be achieved, is calculat- ed by multiplying the base value (83,8 g CO2eq/MJ) by the energetic quantity of fossil petrol and fossil diesel fuel brought into circulation by the obliged party, plus the energetic quantity of biofuel brought into circulation by the obliged party. The greenhouse gas emissions of fossil petrols and fossil diesel fuels are calculated by multiplying the base value by the energetic quantity of fossil petrol and fossil diesel fuel brought into circulation by the obliged party. The greenhouse gas emissions from biofuels are calculated by multiplying the greenhouse gas emissions established in the proofs recog- nised according to Article 14 of the Biofuel Sustainability Ordinance, in kilogram carbon dioxide equivalents per gigajoule by the energetic quantity of biofuel brought into circulation by the obliged party.

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Evaluation and Progress Report 2015

1.2 Summary of important results in 2015

• For 113,884 TJ of biofuels [124,582 TJ, i.e. minus 8.6% in the previous year] applications were filed for amounts to be counted towards the greenhouse gas reduction quota or for tax relief (amounting to the equivalent of 3,353 kilo- tonnes of biofuel). About 82% (93,669 TJ) thereof originate in the EU [com- pared to ca. 75% the year before].

• Source materials for all types of biofuel were mainly (42.7%, [pre- vious year: 42.1%]), waste and residue (19.5%, [previous year: 17.4%]), palm oil (10.5% [previous year: 14.4%]), (9.06% [previous year: 7.7%]) and (8.3% [previous year: 5.6%]).

• With 73,878 TJ, (FAME) made up the largest share of biofuels - almost 65%.

• Rapeseed was the most frequently used source material for 48,251 TJ (65.3% [previous year 69%]) of biodiesel produced.

• Maize, 10,313 TJ (33.2 % [previous year: 29.6 %]) and wheat, 9,395 TJ (30.3% [previous year: 27.8%]) were the most frequently used source materi- als used to produce bioethanol.

• In 2015, the use of palm oil in biofuels decreased by one third, as compared to the previous year (share in 2015: 10.5% (=11,908 TJ), in 2014: 14.4% (=17,922 TJ)

• The total savings of greenhouse gas emissions achieved by all (pure) biofuels amounted to over 70 % compared to fossil fuels. By using biofuels, roughly 6.7 million tonnes of CO2 equivalent were thus avoided (compared to ca. 5.3 million the year before.)

• 32,994 TJ of bioliquids were registered for electricity generation and feed-in re- muneration pursuant to the EEG. 87.8% [previous year: 89.5%] are thick liquor from the pulp industry, 12% [previous year: 10.1%] consist of vegetable oil.

• The total savings of greenhouse gas emissions achieved by all (pure) bioliquids amounted to almost 93 % compared to fossil fuels. By using bioliquids, about 2.8 million tonnes of CO2 equivalent were thus avoided (compared to ca. 2.6 million the year before).

• 89,892 TJ of the biofuels and bioliquids whose data on sustainability were registered in Nabisy were retired to other states‘ accounts (ca. 52,644 TJ the year before). Compared to documents submitted in Germany, related proofs of sustainability showed emissions that were an average 10% higher.

• By the reporting date of 31.12.2015, 2 certification systems and 26 certifica- tion bodies had been permanently recognised by the BLE. By the end of 2015, the European Commission recognised a total of 19 voluntary systems.

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• During the reporting year, BLE-recognised certification bodies certified 2,342 operations across the globe; 95% according to the prerequisites of the voluntary systems and 5% according to those of the DE systems.

1.3 Methodology

This evaluation and progress report describes the existing processes and measures, and analyses the data made available to the BLE. It also includes issues relevant for implementation in Germany such as the transposition of Directive 2009/28/EC in other Member States and the recognition of voluntary systems by the European Commission.

The results of the analysis are presented, compared and explained from various per- spectives.

The following presentations refer to data submitted by economic operators to the BLE in its role as the competent authority according to Art. 66 Biokraft-NachV [Bio- fuel-SuSO] and/or Art. 74 BioSt-NachV [BioEN-SusO]. In Germany, along with the replacement of the energetic biofuel blending quota, the option to double-weight biofuels from certain wastes and residues was also eliminat- ed. Consequently, this report does not offer any comparisons of double-weighting with previous years.

The following information does not permit any conclusions as to the actual number of participants in individual voluntary systems or in national systems of other Mem- ber States.

Economic operators are obliged to enter into Nachhaltige Biomasse-System (Nabisy), the public database, sustainability data regarding their supplies of biofuels and bioliquids, in case those data become relevant for the German market. Amounts entered but not used for energy generation in Germany are contained in Nabisy with- out, however, being attributed to Germany. The economic operator is responsible for their correct entry and accounting. The data entered are thus collected in an organ- ised manner and are documented systematically. The available information intend to provide the basis for optimisation processes con- ducted by decision-makers in politics and the economy. The available data allowing, their analysis shall also help to verify the measures‘ effectiveness.

Where information regarding the number of Nabisy users or certifications is provided it should be noted that economic operators who used various certification systems simultaneously and who acted as both producers and suppliers, were counted more than once. Therefore, a conclusion as to the number of operations participating in the measures is impossible.

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Evaluation and Progress Report 2015

Targets to be achieved with regard to evaluating measure effectiveness, such as: − increasing the share of renewable energies where the supply of energy in Germany is concerned, in the fields of biofuels and electricity production from bioliquids, − reducing greenhouse gas emissions by using of sustainable biomass instead, and − developing more efficient procedures and source materials to produce energy from biomass are considered and changes having occurred within respective calendar years are analysed within the scope of the BioEn-SusO [BioSt-NachV] and the Biofuel-SusO [Biokraft-NachV]. Areas to be analysed specifically include

− the effectiveness of the sustainability ordinances with regard to the objectives to be achieved by the German government and − potential improvements to be made in implementing the specifications stated in the Renewable Energies Directive.

Appropriate methods were chosen to collect, measure and evaluate the available data.

Proofs of sustainability were considered for which applications were lodged for count- ing towards the biofuel quota obligation during the relevant quota year, or for tax relief, and also proofs which were registered for remuneration pursuant to the Renewable En- ergies Act. These are predominantly partial proofs of sustainability having resulted from multiple combinations and/or splittings along the supply chain through to the final re- cipient. These proofs were identified by means of the notations of use made by the main customs offices and/or the network operators.

The data were considered and evaluated in terms of fuel type, auantity, energy content, origin, source materials used and their origin, and finally with regard to emissions caused. Were graphical representations seemed inadequate to illustrate matters, tables were used instead.

In 2015, for the first time, source materials for biofuel types could directly be connected with the information on origins given in the proofs and partial proofs of sustainability. Thus, the weak point of the methodology used in previous years, which resulted from the initially optional indication of source material origins, has been eliminated.

Analyses primarily focus on both the current situation as of 31.12.2015 and the progress of the implemented measure over time (annually) in relation to the initial values, by way of statistical comparison.

In this context, BLE control measures and administrative procedures are also analysed, evaluated and improved.

Discrepancies in sum totals given in this report are due to rounding.

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2. BLE responsibilities

The BLE is the competent authority in Germany for the implementation of the sustaina- bility criteria laid down in the Renewable Energies Directive within the scope of the sustainability ordinances.

BLE responsibilities in the field of sustainable include

• in the biofuels sector - making data that are required to count biofuels towards the biofuel quota or in connection with tax relief available to the biofuels quota body and the main customs offices, • in the bioelectricity sector - making data that are required for remuneration and for the renewable raw materials (NawaRo) bonus for installation operators available to network operators, • in the emissions trading sector - making data available to the German Emis- sions Trading Authority (DEHST), • administration of data on the sustainability of biofuels and/or bioliquids through the public web-based database Nabisy and issuing of partial certifi- cates of sustainability at the request of the economic operators, • regular evaluation of the sustainability ordinances and the compilation of an annual progress report for the German government, • regular compilation of reports on particularly low emissions of the proofs of sustainability for voluntary systems and national systems and to be notified to the EU Commission, • recognition and supervision of certification systems and certification bodies pursuant to the sustainability ordinances.

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Evaluation and Progress Report 2015

In addition, and within the scope of its responsibilities pursuant to art. 74 BioEn-SusO [BioSt-NachV] and/or art. 66 Biofuel-SusO [Biokraft-NachV], the BLE regularly car- ried out the following measures to implement the sustainability ordinances: • office audits at the certification bodies on a yearly basis and risk-oriented evalu- ation of certification bodies’ audit work (witness audits), • maintenance and further development of the BLE website, including information and documents in German and English, • maintenance and further development of a continuous system to recognise certi- fication systems and bodies and to monitor compliance with legal requirements, • maintenance and further development of the public database Nabisy for the doc- umentation of the origins of biofuels and of proofs of sustainability; general mat- ters concerning the documentation and plausibility of information regarding the sustainability of biofuel supplies; exchange of data with other Member States' databases, • maintenance and expansion of the information register pursuant to art. 66 Bio- En SusO [BioSt-NachV] and/or art. 60 Biofuel-SusO [Biokraft-NachV], • hosting the meetings of the Advisory Council for Sustainable Bioenergy, • hosting events with certification systems, certification bodies and the industry to exchange knowledge and other information, • presentations at informative events for multipliers such as associations, certifica- tion systems, certification bodies, German federal states’ representatives and competent authorities of other Member States, • participation in various special events and trade fairs, • cooperation with the implementing authorities of other Member States in the REFUREC ( Regulators Club) to coordinate implementa- tion, and as an observer in relevant working groups of CA-RES (Concerted Action- Sources Directive), • training of BLE Control Service staff employed as assessors in the field of sustainable biomass production.

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3. Certification systems, voluntary systems and national systems of other Member States

The Renewable Energies Directive and its national implementation by means of the sustainability ordinances require compliance, by all economic operators and along the entire value chain, with the prerequisites for the sustainability of biomass and for the biofuels and bioliquids produced from them. It is the task of both the DE- and the voluntary systems or systems recognised by the European Commission, or of nation- al systems in other Member States, to ensure and control this compliance.

Certification systems shall ensure, organisationally, that the requirements of the Re- newable Energies Directive and of national legislation adopted for its implementation and for the production and supply of the required biomass are met. Their system documents contain further specifications regarding requirements to be fulfilled, proofs of compliance and the control of such proofs.

3.1 Certification systems recognised by the BLE pursuant to Art. 33 Nos. 1 and 2 BioEn SusO and/or Biofuel SusO

By 31.12.2015, the BLE received the following number of applications for the recogni- tion of certification systems:

Table 1: Total number of applications submitted by certification systems Total number of applications lodged by 31.12.2015 4

number of applications rejected 1 number of applications accepted 3 recognition withdrawn 1 currently recognised by the BLE 2 ISCC System GmbH, Cologne REDcert GmbH, Bonn

Based on their applications, the BLE has granted recognition to the DE systems of the following states:

• all Member States of the European Union, and • Egypt, Argentina, Ethiopia, Australia, Belarus, Bolivia, Bosnia and Herzegovina, Brazil, Burkina Faso, Chile, China, Costa Rica, Ecuador, El Salvador, Ivory Coast, Georgia, Ghana, Guatemala, Hongkong, India, Indonesia, Israel, Cambo- dia, Cameroon, Canada, Kasachstan, Kenia, Columbia, Laos, Madagascar, Ma- laysia, Mauritius, Mexico, Moldavia, Mozambique, Nicaragua, Norway, Pana- ma, Papua-New Guinea, Paraguay, Peru, Philippines, Russia, Switzerland, Ser- bia, Singapore, Sudan, South Africa, Republic of Korea, Tanzania, Thailand, To- go, Turkey, Uganda, Ukraine, Uruguay, USA, Usbekistan, Venezuela, United Arab Emirates, and Vietnam.

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Evaluation and Progress Report 2015

3.2 Voluntary systems pursuant to Art. 32 No. 3 BioEn-SusO and/or Biofuel- SusO

According to the first sentence of the second subparagraph of Article 18 (4) of Directive 2009/28/EC, the European Commission may decide that voluntary national or interna- tional systems setting standards for the production of biomass products contain accurate data for the purposes of Article 17 (2). These data may be used as evidence that con- signments of biofuel comply with the sustainability criteria set out in Article 17 (3) to (5).

Pursuant to Article 41 of the BioEn-SusO and/or Biofuel-SusO, these voluntary systems are considered as recognised in Germany if and for as long as they are approved by the Commission of the European Communities. By 31.12.2015, the Commission of the Eu- ropean Communities had approved the following 18 voluntary schemes as well as one greenhouse gas calculation tool:

Table 2: Voluntary systems (EU systems) Voluntary systems Registered in Recognised on 2BS Association France 10.08.2011 Greenergy United Kingdom 10.08.2011 Bonsucro United Kingdom 10.08.2011 ISCC System GmbH Germany 10.08.2011 Roundtable on Responsible Soy Associa- Argentina 10.08.2011 tion (RTRS) Abengoa Spain 10.08.2011 Roundtable on Sustainable Biomaterials Switzerland 10.08.2011 (RSB) ENSUS UK United Kingdom 14.05.2012 REDcert GmbH Deutschland 15.08.2012 NTA 8080 Netherlands 20.08.2012 Roundtable on Sustainable Palm Oil RED Malaysia 13.12.2012 (RSPO) HVO Renewable Diesel Scheme for Veri- Finland 29.01.2014 fication of Compliance with the RED sus- tainability criteria for biofuels KZR INiG Poland 23.06.2014 Red Tractor Farm Assurance Combinable United Kingdom 06.08.2012 Crops & Scheme Scottish Quality Farm Assured Combina- United Kingdom 13.08.2012 ble Crops Limited Gafta Trade Assurance Scheme United Kingdom 23.06.2014 Trade Assurance Scheme for Combinable 07.10.2014 Crops Universal Feed Assurance Scheme 07.10.2014 Biograce GHG calculation tool 19.06.2014

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3.3 National systems of other Member States

National systems of other Member States also ensure, organisationally, that the re- quirements regarding the sustainability criteria for the production and supply of bio- mass laid down in the Renewable Energies Directive are met. They regulate the standards which further determine the requirements for proofs of their implementa- tion and for the verification of such proofs.

In 2015, data of the national systems of Hungary, Slovenia and Austria were availa- ble in Nabisy. Operations based in the territory of Austria are required to enter their sustainability data in elNa, the Austrian database.

3.4 Economic Operators

In the field of sustainable bioenergy, all economic operators along the entire value chain principally operate according to the requirements of a certification system, a voluntary system or a national system of another Member State, while users (installa- tion operators and parties obliged to provide proof) are exempted. They need to com- ply with additional national regulations in order to obtain remunerations pursuant to the Renewable Energies Act or to have quantities counted towards the biofuel quota.

The following economic operators are to be considered in particular:

Growers are agricultural establishments which grow and harvest biomass.

First gathering points are establishments and plants which, for the first time and for the purpose of trading it further (e.g. in agricultural trade), take on the biomass required to produce biofuels, from those holdings that grow and harvest such biomass.

Originators Establishments or private households where waste and residue are generated.

Gatherers are establishments and plants which, for the first time and for the purpose of trading them further, take on the biomass needed to produce biofuels, as biogenic waste and residue, from those holdings or private households that generate waste and residue.

Conversion operations Two different groups are to be differentiated: a) Establishments and plants which process biomass from sustainable produc- tion or from biogenic waste or residue and supply the semi-finished products to be processed at a further level for the purpose of biofuel or bio-liquid pro- duction (e.g. at oil mills, plants, fat preparation plants or other plants whose processing stage fails to reach the quality level required for the final use of the product). b) Establishments and plants which process the liquid or gaseous biomass up to the quality level required for final use (e.g. oil mills, esterification plants, eth-

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Evaluation and Progress Report 2015

anol plants, hydrogenatioin plants or biogas processing plants).

Establishments which require certification along the production and supply chain within the framework of the certification systems are called interfaces. In this con- text, first gathering points and gatherers are referred to as first interfaces while con- version operations which process the biomass up to the required quality level are referred to as final interfaces.

Supplier and/ or trader within the value chain Suppliers are economic operators located between the first gathering point and the conversion operation or between the last interface and the distributor of biofuels and/ or the installation operator who supplies energy generated from biofuels. Where sup- pliers downstreram of the final interface are not subject to customs supervision they must be participants in a DE certification system or in a voluntary system approved by the EU.

Installation operator Anyone who, irrespective of ownership, uses the installation to generate electricity from renewable energy.

Party obliged to provid proof Parties obliged to provide proof are economic operators who, pursuant to Art. 37 a) Federal Immission Control Act shall, during a calendar year, reduce the greenhouse gas emissions of the total amount of biofuels they declared for taxation by a certain minimum share. To that effect, they may distribute sustainable biofuels. Anyone who applies for tax relief for biofuels pursuant to the Energy Tax Act is also considered as a party obliged to provide proof.

Figure 1: Control system

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3.4.1 System participants having been notified to the BLE

Within the framework of the sustainability ordinances, voluntary national or interna- tional systems which have laid down standards for the production of biomass products are considered as informally recognised by Germany, alongside the BLE-recognised certification systems, as long and as far as they are recognised by the European Com- mission. The same applies to national systems of other Member States.

The registraton of participants in BLE-recognised certification systems (DE-systems) is mandatory. Within the voluntary and the national systems only those participants are considered, who have been notified to the BLE because the biofuels or bioliquids they produce or trade are or could become relevant for the German market and they will need access to Nabisy in such cases. Most of the participants are now part of a voluntary system recognised by the EU.

By 31.12.2015, 3.723 participants (3.757 in 2014) who produced or traded biofuels and/ or bioliquids were registered with the BLE along the value chain.

The overall figures result from all participants having been notified to the BLE. If a company acts in more than one role, e.g. as a producer of biofuel and a supplier downstream of the last interface and/or if it participates in several certification sys- tems, this will entail multiple counting.

In 2015, again, DE systems had less participants while, at the same time, the number of participants in voluntary systems rises. The total number of participants slightly decreased.

System participants notified to the BLE

voluntary systems: 2,097 (year before: 1,875)

DE systems: 1,459 (year before: 1,729) national systems: 167 (year before: 153)

Total number of economic operators : 3,723 (status 31.12.2015) Diagram 1: Systemteilnehmer, die der BLE gemeldet wurden

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Evaluation and Progress Report 2015

3.4.2 Suppliers subject to supervision by German customs offices

Where suppliers downstream of the last interface are subject to customs supervision within the meaning of Art. 17 (3) Number 2 Biofuel SusO, they need not necessarily be part of a DE system or of a voluntary system recognised by the European Commission. To benefit from this exemption, the supplier’s mass balance system must regularly be subjected to controls by the main customs offices for reasons of taxation pursuant to the Energy Tax Act or for the purpose of monitoring the biofuel quota obligation under the Federal Immission Control Act, and the suppliers must document having received and and forwarded the biofuels in the electronic database Nabisy, including the respective place and date as well as information stated on the proof of sustainability.

During the application process for access to Nabisy the BLE asks the main customs of- fice responsible for the supplier’s place of business to confirm that the applicant is in- deed subject to customs supervision. Once this confirmation is provided the economic operator will obtain access to the database.

By 31.12.2015, 345 suppliers subject to customs supervision were registered in Nabisy (376 the year before).

3.4.3 Participants in national systems of other Member States

Some of the participants registered in Nabisy are part of national systems of other Member States. By 31.12.2015, a total of 167 participants (previous year: 153 ) in the national systems of Austria, Hungary, Slovenia and Slovakia were notified to the BLE. The relatively small number of reports does not mean that biofuels, bioliq- uids or their source materials from these Member States are of limited relevance for the German market (see chapter 6.1, Diagram 9). It might rather be due to the fact that some Member States transposed Directive 2009/28/EC at a later date. Conse- quently, economic operators from other Member States who were interested at an early stage mostly joined the DE systems or the voluntary systems recognised by the European Commission.

Page 19 of 78 Chapter 4 | 20

4. Certification bodies

Certification bodies are independent natural or legal persons who issue certificates to economic operators along the supply chain and who monitor their compliance with the requirements laid down in the Renewable Energies Directive and in national legislation adopted for its implementation , as well as other requirements of the system used. Cer- tificates certify that the specific requirements of the Renewable Energies Directive for the production of sustainable biofuels or bioliquids are met. In Germany, the BLE is responsible for the recognition and supervision of certification bodies within the scope of sustainable biomass production. This applies irrespective of whether the certification bodies become active in connection with the certification systems recognised by the BLE or with voluntary schemes as the monitoring task of the BLE refers to all certifica- tion bodies located in Germany.

Pursuant to Art. 42 Nos. 1 and 2 as well as Art. 43 in connection with Art. 56 Bio- EnSusO and/or Biofuel SusO, the following number of applications for the recogni- tion of certificatin bodies were lodged with the BLE by 31.12.2015:

Table 3: Applications for the recognition of certification bodies Total number of applications 50 rejected 6 recognised 44 Recognition withdrawn or void due to inactivity of the certification 18 body/ bodies Number of certification bodies permanently recognised by 26 31.12.2015

During the application procedure certification bodies will first obtain a provisional recognition which will allow them to start certification activities. Only after the the cer- tification body has undergone an office audit by the BLE control services can the provi- sional recognition be replaced by a permanent one.

Certification bodies currently recognised are listed here: http://www.ble.de/Biomasse.

Across the globe, BLE assessors and auditors accompany the certification audits of the certification bodies where respective states have the BLE permission to carry out these so-called Witness Audits on their territory. Audits concern controls pursuant to the prerequisites of both the DE systems and the voluntary systems. In 2015, the BLE accompanied 146 certification audits carried out by the certification bodies. 78 of these audits were carried out in Germany while the remaining 68 of them took place across the globe, in countries both within and outside of the European Union.

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Evaluation and Progress Report 2015

Table 4: Recognised certification bodies Recognised certification bodies Permanently recognised on SGS Germany GmbH, Germany 23.08.2010 DQS CFS GmbH, Germany 23.08.2010 TÜV SÜD GmbH, Germany 23.08.2010 GUT Certifizierungsgesellschaft mbH, Germany 23.08.2010 Global-Creative-Energy GmbH, Germany 30.08.2010 Peterson Control Union Deutschland GmbH, Germany 30.08.2010 Agrizert Zertifizierungs GmbH, Germany 29.09.2010 IFTA AG, Germany 01.12.2010 DEKRA Certification GmbH, Germany 01.12.2010 ABCERT AG, Germany 09.12.2010 LACON GmbH, Germany 15.12.2010 ÖHMI Euro Cert GmbH, Germany 20.12.2010 QAL Umweltgutachter GmbH, Germany 20.12.2010 Agro Vet GmbH, Austria 21.12.2010 ASG cert GmbH, Germany 14.03.2011 Bureau Veritas Certification Germany GmbH, Germany 14.03.2011 LKS Landwirtschaftliche Kommunikations- und Servicegesellschaft mbH, 21.04.2011 Germany TÜV Thüringen e. V., Germany 21.04.2011 TÜV Nord Cert GmbH, Germany 25.09.2011 proTerra GmbH, Germany 27.09.2011 Intertek Certification GmbH, Germany 13.02.2013 ELUcert GmbH, Germany 17.04.2013 SC@PE international ltd., Germany 05.06.2014 BSI Group Deutschland GmbH, Germany 13.11.2014 DIN CERTCO Gesellschaft für Konformitäts- 04.02.2015 bewertung mbH, Germany SicZert Zertifizierungen GmbH, Germany 26.03.2015

Page 21 of 78 Chapter 4 | 22

4.1 Global certifications under DE system requirements

In Germany, the transposition of Directive 2009/28/EC into national law provides for a compulsory certification of the so-called interfaces, certain economic operators along the supply chain for the production of biofuels or bioliquids. These interfaces include the first gathering points/gatherers as well as all conversion operations. In addition, as- sessments of conformity and random controls required by law are carried out along the production and supply chain.

The certification bodies acting according to the requirements of the certification sys- tems recognised by the BLE (REDcert-DE and ISCC-DE) mainly carried out certifi- cations in Germany and within the European Union.

The number of DE certifications carried out continues to decline sharply. While in 2014 about 60 % less certifications were carried out in comparison to the previous year, the decline in 2015 amounts to 65 % as compared to 2014.

As a resultat, in 2015 only 121 certifications according to DE prerequisites were car- ried out. Two of these certificates were withdrawn by the certification body before their expiration.

It can be assumed that the remaining 121 system participants certified are mostly companies that operate on the German market exclusively and therefor do not neces- sarily need a certification accordign to the prerequisites of a voluntary system.

Table 5: Number of DE certifications Number of operations certified and recerti- fied under DE requirements in 2013 in 2014 in 2015 total 857 341 121 in Germany 479 160 91 within the EU, excluding Germany 340 161 29 in third countries 38 20 1

Page 22 of 78 23 | Chapter 4

Evaluation and Progress Report 2015

Global certifications carried out according to DE system requirements

500

450 479

400

350 340 300

250

200

150 160 161 100 91 50 1 38 29 20 0 in Germany EU without Germany in third countries

Total number of DE certifications carried out in 2013: 857 Year 2013 Total number of DE certifications carried out in 2014: 341 Year 2014 Year 2015 Total number of DE certifications carried out in 2015: 121 Year 2013

Diagram 2: Nach DE-Systemvorgaben durchgeführte Zertifizierungen weltweit

4.2 Certifications under voluntary system requirements

The BLE is responsible for the recognition and supervision of certification bodies based in or operating a branch in Germany.

Wherever these certification bodies carry out certifications according to the require- ments of voluntary systems and where the certification decision is taken in Germany, they are also subject to BLE supervision. Therefore, these certificates are to be transmitted to the BLE as well. During the reporting year, 2.342 certifications and recertifications of operations according to voluntary system requirements were noti- fied to the BLE.

Page 23 of 78 Chapter 5 | 24

5. The government database Nabisy and sustainability certificates

5.1 Sustainable biomass system (Nabisy)

According to Commission Decision 2011/13/EU of 12th January 2011, economic opera- tors have to submit certain kinds of information on the sustainability of every consign- ment of biofuels and bioliquids to the Member States, where these consignments can become relevant for the respective market.

In Germany, this is done electronically. The economic operators must enter this infor- mation into the web-based public database Nabisy for every supply of biofuels or bi- oliquids. Certificates of sustainability or partial certificates of sustainability contain the data regarding compliance with the sustainability criteria entered into Nabisy and are to be handed on along the supply chain.

In the reporting year, 1,539 accounts were used by economic operators. Only operators from the final interface were involved as this is where the Nabisy system commences. The largest share is accounted for by plant operators using liquid biomass for the gener- ation of electricity. Nabisy accounts used 668 700 641

600

500

400 357 313 316 300 221 199 197 200

100 38 51 5 1 0 Network operators Network Installation operators Installation Participants in DE system Participants in national systems national in Participants Participants in voluntary systems voluntary in Participants Under customs office supervision office customs Under

Total number of Nabisy accounts used in 2014: 1,539 Total number of Nabisy accounts used in 2015: 1,468 Year 2014 Year 2015 Diagram 3: Genutzte Nabisy-Konten

Page 24 of 78 25 | Chapter 5

Evaluation and Progress Report 2015

Depending on their function, economic operators with an account in Nabisy can create proofs of sustainability (final interfaces), can transfer, split or combine proofs of sus- tainability and partial proofs of sustainability (suppliers/ installation operators) and can indicate uses (network operators). Economic operators may apply to the BLE for a needs-based number of accesses to their accounts.

Since the reporting year 2015, installation operators subject to compulsory emissions trading and aircraft operators may prove their compliance with the sustainability re- quirements to the German Emissionshandelsstelle, DEHSt (German Emissions Trading Body) via the Nabisy database. To date, twelve accesses were granted for these opera- tors.

The overview below shows the number of accesses established by 31.12.2015.

Accesses to Nabisy established for economic operators 2.500 2035 2.000 1.673

1.500 1.062 1084 1.000 800 804

465 465 400 500 389 15 15 12 0 Network operators Network Installation operators Installation Participants in DE system DEHSt-Installation operators DEHSt-Installation Participants in national systems national in Participants Participants in voluntary systems voluntary in Participants Under customs office supervision office customs Under

Total number of accesses to Nabisy in 2014: 4,404 Total number of accesses to Nabisy in 2015: 4,815 Year 2014 Year 2015 Diagram 4: Nabisy-Zugänge, die für Wirtschaftsbeteiligte angelegt waren

5.2 Proofs

Only producers of consignments of biofuel or bioliquids may issue a proof of sustaina- bility. They are the so-called final interface. By issuing the certificate in Nabisy, they ensure that the consignment can be used on the German market. If a party downstream of the supply chain, e.g. a supplier, decides that the goods are to be used outside Ger- many, they shall retire the respective proof to the retirement account of the state where the final use takes place. Page 25 of 78 Chapter 5 | 26

The presentation of proofs of sustainability or partial proofs of sustainability to the customs authority is a prerequisite for biofuels to be counted towards the distributor’s obligation to reduce greenhouse gas emissions. Installation operators can only claim remuneration for electricity produced from biomass and fed into the grid pursuant to the Renewable Energy Sources Act and, where applicable, the renewable resources bonus if they provide proofs of sustainability or partial proofs of sustainability.

Partial proofs of sustainability are issued by those certified economic operators who process the liquid or gaseous biomass up to the quality level required for the use as biofuel or who produce biofuels from the biomass used (issuing bodies). While the sustainability ordinances refer to such economic operators as the final interface, the voluntary systems do not use this term. This report therefore generally refers to the economic operator who issues the proof of sustainability.

A proof of sustainability identifies a certain quantity of biofuel or bioliquid as being sustainable. Where biofuels ands/or bioliquids are traded on to the party obliged to provide proof or to the installation operator in the supply chain, the respective quan- tities shall be split or combined as required.

To document this accordingly, a proof of sustainability needs to be split a proof of sustainability or to combine it with other proofs of sustainability. In that process, but also by simply transferring a proof to the customer, partial proof of sustainability are generated.

Nabisy processes proofs of sustainability (basic proofs to be issued by producers only) and partial proofs of sustainability (subsequent proofs which are generated by any kind of action carried out by suppliers: transferring, splitting, combining).

In 2015 producers around the globe entered 16,943 proofs of sustainability into Nabisy.

Table 6: Proofs of sustainability issued Number of proofs of sus- Producer location Number of producers tainability issued Germany 151 9,561 European Union 93 7,215 Third countries 31 167 Total 275 16,943

Samples of a proof of sustainability (basic proof) and a partial proof of sustainability (subsequent proof) are shown below.

Page 26 of 78 27 | Chapter 5

Evaluation and Progress Report 2015

Page 27 of 78 Chapter 5 | 28

Partial Proof of Sustainability For...,.._,..._,,fDMs. f5et_,,,.ot,,.8-aeleclricly•rt " ~Clldil.-(8ig1R•~ ,...,,~ (BioSINKltV)}, arlor,,.,,.,.,..._,,IDMs. f5et_,,,.ot,,_,... e ··~anm-(Bi*'.. R Hi.:NIJ"g' ..._..... ,.,.,..-N.:IJV)} ...... or._ ,.tm pnlof of sumii__,_ DE-B-BLE~M-38-213-10000057-NTNw- 1 000 1 !1G!i ...... or._ praaf thidld intD ,.tm proofs: DE-IMl..E-8M-30-2 1 ~1000DD57-M'Nw-11D11!iD3

...... BlE

Interface: Certification system:

D E-B-BLE-BM-31>-SSt-00000[)57 Nabisy-Test-System. nul. DE-S-BLE·BM-39

1. General information on biomass I biofuels:

Type, paten:iar 100 .00% Pftanzeniil ~ fA a.tl'iallort I COl:ltry or AT par:&: ~•• a r: Quantity (t'kWhi'm3): 25 m• Energy content (MJ): 850,000

The bioliquids I biofuel s have been produced from residuelr A cts, with by-products not arisi ng from agriculture, forestry, fisheries or aquacuhu.re. \,I I D yes ~ no

2. Sustainable production of biomass and/or sui I uction of biofuels pursuant to Arts. 4-7 BioSt-NachV/ Biokraft-NachV: The banass colllflies with the re

3. Greenhouse gas savings pursuant to Art. 8 Bi""' Biokraft-NachV:

00 The g:reenhouse gas emissions savings potential has - d with as follows: - Greenhouse gas emisSJOnS (g C02~'MJ ): 36.0 T parator for fossil fuels (g C02eq.'MJ): n.o

- CClmpl:oance wi1h 1he sawigs potential Iii fer ell!Clncity generation 00 as fuels when used ll!] for heat generati on

- Ccrnpfiance w'1h the greenhouse gas savings when used in the following countriesln!gions (e.g. Germany; EU):

D The biomass orig:inates from a n exemption granted interface pu:rsuant to Art. B para. 2 BioSt-NachV and Art.8 par. 2 Biokr aft-NachV respectively . The proof of sustamabillty is valid without signature. The intl!Iface is responsi ble for accuracy of the proof. ldenlification of the proof lakes place by means of its non-

Delivery/shipment based on a mass balance system pursuant to Art. 17 BioSt-NachV/ Biokr3ft-NachV": 00 Delivery/shipment has been documented in a mass balance system. 00 Documen1ation has been carried 'out by means of the database of the BLE: D Documentation has been carried out accorditg 1D the reqi*ernents of the following certifica6on system:

D Oocumen1ation is earned out pursuant to Art. 17 para. 3 BX>kra!t-'NachV. D Documentation has been carried out by means of the followilig electronic database:

Las t su pplier (nam e. address): Olk, Fulda

Page 28 of 78 29 | Chapter 6

Evaluation and Progress Report 2015

6. Biofuels

The following illustrates the energetic quantities (TJ) of biofuels distributed in Ger- many for which applications for - counting towards the GHG reduction quota or - a tax relief were lodged.

Data are based on the notations of the Federal Revenue Administration in Nabisy.

Please note that the information given only concerns the quantities applied for and respective energy contents. The available data allow no statements as to whether all of the quantities and energy contents presented here were actually granted tax relief or were counted towards the quota obligation.

The data regarding the biofuel quota obligation and tax relief are presented together.

Diagram 5 gives an overview of the amounts for which applications were submitted towards the biofuel quota obligation for 2013, 2014 and 2015 in comparison. The share(s) of quantities subject to a proof of double-weighting are indicated for 2013 and 2014.

In 2015, due to the switch from the energetic quota to the greenhouse gas reduction quota, the option of double-weighting has been suspended. Yet, at minus 8,6% in the quota year 2015, the amount of biofuels has cleary declined in comparison to the year before. This situation might, among other things, be attributed to the fact that the GHG reduction of 3.5% required in 2015 and in 2016 through the distribution of biofuels with the highest possible reduction potential can be achieved by a smaller amount of biofuel.

Annual comparison of all biofuels [TJ]

160.000 123.696 124.582 140.000 113.884 120.000 13,5 % 16,9 % 100.000 80.000

60.000 86,5 % 83,1 % 40.000 20.000 0 Reference year 2013 Reference year 2014 Reference year 2015

with double counting proof Diagram 5: Jahresvergleich aller Biokraftstoffe

Page 29 of 78 Chapter 6 | 30

Although, during the reporting year, double-weighting of biofuels produced from wastes and residues was no longer possible, this has not affected these source materi- als’ sales prospects. In 2015, the share of wastes and residues, known to bear high GHG savings potential, has risen by 2.1 percentage points as compared to the previ- ous year.

Annual comparison of all biofuels (TJ)

160.000

140.000 123.696 124.582 113.884 120.000 14,6 % 17,4 % 100.000 19,5 %

80.000

Cultivated 60.000 Cultivated Cultivated biomass biomass biomass 85,4 % 80,5 % 40.000 82,6 %

20.000

0 2013 2014 2015

Waste/residual materials Diagram 6: Jahresvergleich aller Biokraftstoffe (inkl. Abfall/Reststoff)

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Evaluation and Progress Report 2015

6.1 Origin of the source materials

For the first time during the reporting year it was possible to evaluate the biofuel amounts by directly linking raw materials and their origins.

Biofuels with source materials originating in Europe continued to make up the larg- est share of the total amount by far. Compared to the decline of the the total amount (-8,6 %) they only declined by 1.5 %.

By contrast, the quantity of biofuels produced from source materials originating in Asia declined sharply, by 28.5 %. This decrease concerns mainly hydrotreated vege- table oil (see diagram 22).

Global origin of source materials for biofuels [TJ] 100.000

90.000 97.490 96.038 80.000 86.074 70.000

60.000

50.000

40.000

30.000

20.000 27.598 20.573

10.000 4.721 2.845 2.695 2.439 1.929 1.438 1.211 924 233 485 265 253 106 75 62 14.709 0 Africa Asia Australia Europe Central North South America America America

Biofuels 2013: 123,696 TJ Reference year 2013 Biofuels 2014: 124,582 TJ Reference year 2014 Biofuels 2015: 113,884 TJ Reference year 2015 Diagram 7: Herkunft der Ausgangsstoffe weltweit

Page 31 of 78 Chapter 6 | 32

The share of biofuels produced from source materials originating in Germany rose by 22.3% as compared to the previous year, while the share from other EU Member States fell by 15.3 %.

This has led to the fact that the share originating in Germany exceeds that from the rest of the European Union.

Origin of the source materials from Europe Biofuels [TJ]

60.000

57.047 54.250 50.000 47.712 45.956 40.000 38.998

30.000

26.907

20.000

10.000

4.242 2.121 0 2.371 Germany European third countries EU without DE

Biofuels 2013: 86,074 TJ Reference year 2013 Biofuels 2014: 97,490 TJ Reference year 2014 Biofuels 2015: 96,038 TJ Reference year 2015 Diagram 8: Herkunft der Ausgangsstoffe aus Europa

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Evaluation and Progress Report 2015

For biofuels whose source materials originate from EU Member States, the share of finished products produced from raw materials originating in Germany amounts to 50.9 %, followed by France (8.3 %), the Czech Republic (8.0 %), Poland (7.6 %) and Hungary (6.2 %).

The remaining quantity (18.9 %) originated in a total of twenty-two countries whose shares amounted to less than 5,000 TJ each.

Origin of source materials in 2015 within the EU Biofuels [TJ]

Czech Republic France 7.456 7.812 Poland 7.144

Hungary 5.846

The Netherlands 4.425

Belgium 3.523

Austria Germany 2.581 47.712 Sweden 2.382

Vereinigtes Königreich 1.506 16 Länder zusammengefasst Slowakia mit jeweils unter 1.111 Eintausend TJ 2.171 Biofuels 2015: 93,669 TJ Diagram 9: Herkunft der Ausgangsstoffe 2015 innerhalb der EU The shares of the sixteen countries combined here amount to the following:

Spain 722 Rumania 515 Bulgaria 367 Latvia 158 Denmark 127 Lithuania 106 Italy 52 Luxembourg 47 Ireland 29 Finland 27 European Union 7 Portugal 5 Slovenia 5 Cyprus 2 Greece 1 Estonia 1

Page 33 of 78 Chapter 6 | 34

Source materials from European third countries originate mostly in Ukraine (93.2 %).

Origin of source materials 2015 from EU third countries Biofuels [TJ]

Norway Belarus 30 40

Ukraine Others Serbia 2.210 161 Bosnia and 41 Switzerland Herzegovina 46 4

Biofuels 2015: 2,371 TJ Diagram 10: Herkunft der Ausgangsstoffe 2015 aus europäischen Drittstaaten

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Evaluation and Progress Report 2015

6.2 Source materials according to origin and type

Source materials from Africa were mainly waste and residue. In comparison to 2013 the quantity has more than quadrupled. The largest share of these wastes and residues (63.2 %) originated in the Republic of South Africa and consisted exclusively of bio- diesel from used cooking oils of vegetable origin.

Biofuels from sugar originating in Africa were registered to be counted towards the greenhouse gas reduction quota for the first time. The sugar cane was grown in the West African Republic of Sierra Leone.

Source materials for biofuels [TJ] originating in Africa

200

191 150

100

75 74 50 41 22 0 Waste/residual materials Rapeseed Sugar cane

Biofuels 2013: 62 TJ Reference year 2013 Biofuels 2014: 75 TJ Reference year 2014 Biofuels 2015: 265 TJ Reference year 2015 Diagram 11: Ausgangsstoffe für Biokraftstoff - Herkunft Afrika

Page 35 of 78 Chapter 6 | 36

In 2015, the decline in biofuels whose source materials originate in Asia has contin- ued from last year. While the share of wastes and residues increased slightly, that of palm oil fell by 33.5 %.

45.6 % of wastes and residues originated in Malaysia and consist mainly of used cooking oils and fats of vegetable origin.

Palm oil originated in Indonesia (69 %) and in Malaysia (31 %).

Source materials for biofuels [TJ] originating in Asia

30.000 26.316

25.000

20.000 17.916

15.000 11.907

10.000

5.000 2.403 2.755 887 255 45 347 47 2 0 Waste/residual Maize Palm oil Rapeseed Sugar cane materials

Biofuels 2013: 27,598 TJ Reference year 2013 Biofuels 2014: 20,573 TJ Reference year 2014 Biofuels 2015: 14,709 TJ Reference year 2015 Diagram 12: Ausgangsstoffe für Biokraftstoff - Herkunft Asien

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Evaluation and Progress Report 2015

The amount of biofuels whose source materials originated in Australia fell to less than a quarter of last year’s quantity.

Quantities of biofuels produced from rapeseed fell by 76 % in 2015, while th shares produced from waste and residue rose to more than twice the amounts of the year before. Quantities produced from palm oil were used for the first time, whose small amounts in relation to the total quantity are insignificant, however. Biodiesel pro- duced from soy was not distributed this year.

Source materials for biofuel [TJ] originating in Australia

3.000 2.635

2.500

1.865 2.000

1.500

1.000

448 500 53 16 36 1 8 48 0 Waste/residual Palm oil Rapeseed Soya materials

Biofuels 2013: 2,695 TJ Reference year 2013 Biofuels 2014: 1,929 TJ Reference year 2014 Biofuels 2015: 485 TJ Reference year 2015 Diagram 13: Ausgangsstoffe für Biokraftstoff - Herkunft Australien

Page 37 of 78 Chapter 6 | 38

Despite a decrease of about 4.3 %, rapeseed made up the largest share of all source materials originating in Europe. About two thirds of this share were grown in Ger- many. About 11 % originated in the Czech Republic, 9 % in France and about 7 % in Poland. The share produced from wastes and residues almost stagnated in compari- son to the year before. Here, too, the biggest share originated in Germany (39 %), followed by the Netherlands (25 %). In 2015, wheat only increased slightly. The share of sugarbeet declined by 40 %, while that of corn rose by almost 22 %.

Source materials for biofuels [TJ] originating in Europe

0 10.000 20.000 30.000 40.000 50.000 60.000

15.855 Waste/residual 17.357 materials 17.711

1.100 1.082 1.353

9.577 Maize 8.464 10.313

40.719 Rapeseed 50.240 48.097 3.534 Rye 3.231 2.292

14 Soya 24

Sunflowers 139 352 Triticale 1.094 2.717

6.911 Wheat 9.010 9.240

8.013 Sugar beets 6.987 4.177

Biofuels 2013: 86,074 TJ Reference year 2013 Biofuels 2014: 97,490 TJ Reference year 2014 Biofuels 2015: 96,038 TJ Reference year 2015 Diagram 14: Ausgangsstoffe für Biokraftstoff - Herkunft Europa

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Evaluation and Progress Report 2015

Source materials for the production of biofuels Central America represented the smallest share, with regard to the overall amount. In 2015, was the only source material used for the production of bioethanol. Guatemala is the biggest pro- ducing country with a share of 86.6 %. The remaining quantity originated in Cos- ta Rica (10.4 %) and Nicaragua (3.0 %). Source materials for biofuels [TJ] originating in Central America

300,0 250,0 253 200,0 229 150,0 100,0 106 50,0 0,4 3 2 0,0 Waste/residual materials Wheat Sugar cane Biofuels 2013: 106 TJ Reference year 2013 Biofuels 2014: 233 TJ Reference year 2014 Biofuels 2015: 253 TJ Reference year 2015 Diagram 15: Ausgangsstoffe für Biokraftstoff - Herkunft Mittelamerika The total volume of source materials originating in North America continued to decline. As the share of corn steadily decreased, no quantity accounted for biofuel production in 2015. Also, soy has become irrelevant in the reporting year. Only bio- fuels from wastes and residues were used, albeit at a reduced rate of 27.8 %. The most significant quantities originated in the USA.

Source materials for biofuels [TJ] originating in North America

2.000 1.678

1.500 1.290 1.146 1.211 1.146

1.000

500 3 21 0 Waste/residual materials Maize Soya

Biofuels 2013: 2,439 TJ Reference year 2013 Biofuels 2014: 2,845 TJ Reference year 2014 Biofuels 2015: 1,198 TJ Reference year 2015 Diagram 16: Ausgangsstoffe für Biokraftstoff - Herkunft Nordamerika

Page 39 of 78 Chapter 6 | 40

In 2015, there was a sharp decline in quantities of biofuels produced from source materials originating in South America. All types of biomass cultivated experienced significant reductions. The small share palm oil used to account for, disappeared completely. Significant reductions ap- peared were soy (77.5 %) and rapeseed (98.5 %) were concerned as source materials. The share of sugarcane (18.9 %) fell less sharply. Even though wheat had not been registered for two consecutive years prior to the reporting year, a small quantityof biofuels produced from wheat could be registered in 2015.

By contrast, the quantity produced from waste and residue rose sharply by 67.2 %.

Source materials for biofuels [TJ] originating in South America

3.500 3.367

3.000

2.500

2.000

1.500 1.182

1.000 730 398 500 167 279 323 136 164 155 87 84 6 2 0

Biofuels 2013: 4,721 TJ Reference year 2013 Biofuels 2014: 1,438 TJ Reference year 2014 Biofuels 2015: 923 TJ Reference year 2015 Diagram 17: Ausgangsstoffe für Biokraftstoff - Herkunft Südamerika

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Evaluation and Progress Report 2015

6.3 Types of Biofuel

Among the biofuels registered for being counted towards the biofuel quota or for tax relief, FAME held the largest share by far, followed by bioethanol and HVO at a considerable distance. The share of other types of biofuel amounts to less than one percent. UCO, as pure fuel however, is irrelevant as a source material for the produc- tion of biodiesel.

Types of biofuel [TJ]

0 20.000 40.000 60.000 80.000

32.638 Bioethanol 32.400 31.053

1.750 Biomethan 1.630 1.251

28 Biomethanol 0,04

68.330 FAME 75.750 73.878

20.559 HVO 14.652 7.359

368 Vegetable oil 151 343

23 UCO

Biofuels 2013: 123,696 TJ Anrechnungsjahr 2013 Biofuels 2014: 124,582 TJ Anrechnungsjahr 2014 Biofuels 2015: 113,884 TJ Anrechnungsjahr 2015 Diagram 18: Biokraftstoffarten

Page 41 of 78 Chapter 6 | 42

The following diagram shows the percentages of biofuel types in 2015. Biomethane, biomethanol and vegetable oils are combined under “Others“.

Diagram 19: Biokraftstoffarten 2015

Types of biofuel 2015

Bioethanol 27% FAME 65%

HVO 7%

Other 1%

Biofuels 2015: 113,884 TJ

Page 42 of 78 43 | Chapter 6

Evaluation and Progress Report 2015

As in previous years, maize, wheat and sugarbeet were again the main source materi- als for the production of bioethanol. While the shares of maize and wheat increased slightly, that of sugarbeet decreased sharply by 40.2 %. Compared to last year, the share of sugarcane slightly rose. With the exception of rye, the share of which de- creased by 29.1 %, the remaining types of cereal saw an increase, with that of Triti- cale being especially significant at a massive increase of 148.3 %.

Source Materials Bioethanol [TJ]

0 2.000 4.000 6.000 8.000 10.000 12.000

677 davon 475 TJ mit Doppelgewichtungsnachweis Waste/residual 791 davon 757 TJ mit Doppelgewichtungsnachweis materials 156

1.100 Barley 1.082 1.353

10.761 Maize 9.576 10.313

3.534 Rye 3.231 2.292

352 Triticale 1.094 2.717

6.911 Wheat 9.012 9.395

1.290 Sugar Cane 627 650

8.013 Sugar beets 6.987 4.177

Bioethanol 2013: 32,638 TJ Reference year 2013 Bioethanol 2014: 32,400 TJ Reference year 2014 Bioethanol 2015: 31,053 TJ Reference year 2015 Diagram 20: Ausgangsstoffe Bioethanol

Page 43 of 78 Chapter 6 | 44

FAME (biodiesel) was mainly produced frome rapeseed, like before, although its share decreased by 7.8 %. About two thirds of the rapeseed used were grown in Germany. Onlyl 1.4 % originated in countries outside the European Union. The share of wastes and residues rose again. Also, more palm oil was used to produce FAME than the year before.

Source Materials FAME [TJ]

0 10.000 20.000 30.000 40.000 50.000 60.000

15.740 davon 14.598 TJ mit Doppelgewichtungsnachweis

Waste/residual 19.311 davon 18.760 TJ mit Doppelgewichtungsnachweis materials 20.549

5.757

Palm oil 3.276 4.776

43.442 Rapeseed 52.339 48.251

3.392

Soya 824 164

Sunflowers 139

FAME 2013: 68,330 TJ Reference year 2013 FAME 2014: 75,750 TJ Reference year2014 FAME 2015: 73,878 TJ Reference year 2015 Diagram 21: Ausgangsstoffe FAME

Page 44 of 78 45 | Chapter 6

Evaluation and Progress Report 2015

Hydrogenated vegetable oils (HVO) are produced mainly from palm oil. This year, the quantity produced amounted to about half that of last year. The amount of wastes and residues increased significantly and originated mostly in the United Kindgom (57.7 %).

Source materials HVO [TJ]

25.000 20.559 20.000 14.646 15.000

10.000 7.132

5.000 7 227 7 0 Waste/residual materials Palm oil Rapeseed HVO 2013: 20,559 TJ Reference year 2013 HVO 2014: 14,659 TJ Reference year 2014 HVO 2015: 7,359 TJ Reference year 2015 Diagram 22: Ausgangsstoffe HVO

In the reporting year, biomethane, as biofuel, was exclusively produced from wastes and residues, the major share of which originated in Germany. A very small amount only was generated in Hungary as the country of origin.

Source materials biomethane [TJ]

thereof 1.578 TJ with thereof 1.593 TJ 2.000 double counting with proof double counting proof 1.500 1.598 1.596

1.251 1.000

500 152 33

0 Waste/residual materials Maize Biomethane 2013: 1,750 TJ Reference year 2013 Biomethane 2014: 1,630 TJ Reference year 2014 Biomethane 2015: 1,251 TJ Reference year 2015 Diagram 23: Ausgangsstoffe Biomethan

Page 45 of 78 Chapter 6 | 46

Vegetable oil as biofuel contributes a share of 0.3 % to the total volume and thus the second lowest share following biomethanol (0.3 ‰). Since 2014 rapeseed was used exclusively as source material. The registered quantity has more than double again during the reporting year.

Source material vegetable oil [TJ]

400

350 367 343 300

250

200

150 151 100

50 1 0,03 0 Palm oil Rapeseed Soya

Vegetable oil 2013: 368 TJ Reference year 2013 Vegetable oil 2014: 151 TJ Reference year 2014 Vegetable oil 2015: 343 TJ Reference year 2015 Diagram 24: Ausgangsstoffe Pflanzenöl

Page 46 of 78 47 | Chapter 6

Evaluation and Progress Report 2015

6.4 Greenhouse gas emissions and savings

The Reduction of greenhouse gas emissions is one of the aims to be achieved by the Renewable Energies Directive. Data regarding emissions must be stated on the proofs of sustainability, pursuant to Articles 18 of both the BioEn SusO [BioSt-NachV] and/ or the Biofuel SusO [Biokraft-NachV] for each product. Only so-called old installations were, until 30.03.2013, not required to prove any greenhouse gas reduction. Since the switch to the greenhouse gas quota as of 2015, GHG emissions must necessarily be stat- ed on the proofs of sustainability. As of that date, eventually remaining proofs of sus- tainability from old installations will no longer be countable towards the greenhouse gas quota. Reference values emission calculations were based on in 2013 and 2014 are listed in Table 7.

Table 7: Reference values for the calculation of biofuel emissions Indications No indica- No indica- re. emissi- tions re. tions re. total ons [TJ] emissions emissions [TJ] [TJ] [%] Allocation Year 2013 123,696 120,128 3,568 2.88% Allocation Year 2014 124,582 124,553 29 0.02% Allocation Year 2015 113,884 113,884 0 0.00%

The emission calculation includes the total amount of emissions generated during the entire production process for the final product and concerning the greenhouse gases stated in the Renewable Energies Directive, namely carbon dioxide (CO2), laughing gas (N2O) and methane (CH4), expressed in CO2 equivalent per unit of energy.

The following diagrams show the biofuel emissions for which an application for counting towards the biofuel quota or for tax relief was lodged.

For the calculation of the emission savings, the total amount of emissions generated during the entire biofuel production process were compared with the reference value of 83,8 g CO2eq/MJ for fossil fuel.

It should be noted that the emission savings presented here are based on the compari- son of pure biofuels and pure fossil fuels. A biofuel is considered sustainable at a proven savings value of 35% (50% as of 01.01.2018) compared to fossil fuel. The total savings in case of blended fuels in Germany would be calculated on the basis of the sum total of emissions from biogenic and fossil fuels.

Page 47 of 78 Chapter 6 | 48

The diagram below illustrates the amount of emissions that would have been gener- ated if, instead of a quantity of biofuels, fossil fuels had been used exclusively. I.e. the use of biofuels saved ca. 6,700,000 tonnes of CO2 equivalents.

Emissions and savings of biofuels [tCO2eq]

12.000.000

10.000.000

8.000.000 5.361.391 5.105.930

6.000.000 6.698.506

4.000.000

4.960.786 5.076.112 2.000.000 2.845.005

0 Year 2013 Year 2014 Year 2015

Saved emissions compared to fossil fuels Emissions generated

Diagram 25: Emissionen und Einsparungen der Biokraftstoffe

Page 48 of 78 49 | Chapter 6

Evaluation and Progress Report 2015

In 2015, an average of 24.98 tonnes of CO2eq were generated per terajoule of biofuel, i.e. 38.7 % less than the year before.

Emissions generated by biofuels [tCO2eq/TJ]

50,00 45,00 40,00 41,30 40,75 35,00 30,00 25,00 24,98 20,00 15,00 10,00 5,00 0,00

Year 2013 Year 2014 Year 2015

Diagram 26: Entstandene Emissionen der Biokraftstoffe While total emission savings in previous years could only be improved in small increments, a significant upward trend was notable in 2015. Better savings results might have been achieved last year already. Yet, in view of the greenhouse gas reduction quota having been introduced by 01.01.2015, distributors probably decided to count biofuels with relatively low savings potentials towards the quota year of 2014.

Emission savings of biofuels

74,00%

69,00% 70,19%

64,00%

59,00%

54,00% 51,36% 49,00% 50,72%

44,00%

Savings 2013 Savings 2014 Savings 2015

Diagram 27: Emissionseinsparung der Biokraftstoffe

Page 49 of 78 Chapter 6 | 50

In the reporting year of 2015, vegetable oils generated the largest average amount of emissions. However, the quantity of vegetable oils applied for in 2015 amounted to just 0.3 % of the total quantity of biofuels. Biomethane generated the lowest average amount of emissions, albeit at a small share of 1.1 % in the total quantity only.

Emissions of biofuels according to biofuel type [tCO2eq/TJ]

50,00

45,00 45,87

40,00 42,78 41,36 39,94 39,97

35,00 38,06 36,15 36,03 35,70

30,00 32,03

25,00 26,98 24,62 24,93 24,53

20,00 22,60 20,66

15,00

10,00 13,17

5,00

0,00 Bioethanol Biomethane Biomethanol FAME HVO Vegetable oil

Year 2013 Year 2014 Year 2015 Diagram 28: Emissionen der Biokraftstoffe nach Kraftstoffart

Page 50 of 78 51 | Chapter 6

Evaluation and Progress Report 2015

Individual types of biofuel were able to achieve a significant improvement of their average greenhouse gas performance. In contrast, greenhouse gas savings of vegetable oils improved only slightly. After savings of hydrogenated vegetable oils (HVO) decreased from 2013 to 2014, they were able to improve significantly in 2015. Emission savings of biofuels according to biofuel type

90,00%

80,00% 84,28%

70,00% 75,34% 73,03% 70,73% 70,62% 70,25%

60,00% 67,81% 61,78% 57,40% 57,00%

50,00% 56,86% 54,58% 52,34% 52,30% 50,65% 48,95% 40,00% 45,26%

30,00%

20,00%

10,00%

0,00% Bioethanol Biomethane Biomethanol FAME HVO Vegetable oil

Savings 2013 Savings 2014 Savings 2015

Diagram 29: Emissionseinsparung der Biokraftstoffe nach Kraftstoffart

Page 51 of 78 Chapter 6 | 52

In the reporting year, one half of the source materials for bioethanol was able to achieve savings of above 70 %, or even above 80 %. These were waste/ residue, wheat, sugarcane and maize. Emission savings of the other half were lower but still amounted to well over 50 %.

Emission savings bioethanol 2015

90,00%

80,00%

70,00% 82,47% 77,40% 60,00% 76,68% 72,71% 67,17% 50,00% 67,13% 61,59% 57,98% 40,00%

30,00%

20,00%

10,00%

0,00%

Energy content 2015: 31,053 TJ Diagram 30: Emissionseinsparung Bioethanol 2015

Page 52 of 78 53 | Chapter 6

Evaluation and Progress Report 2015

FAME from waste and residual materials even achieved an average savings value of over 91 %. Palm oil as source material achieved the second best value, followed by sunflowers, rapeseed and soy.

Emission savings FAME 2015

100,00% 90,00% 80,00%

70,00% 91,03% 60,00%

50,00% 70,82% 63,12% 61,97%

40,00% 57,68% 30,00% 20,00% 10,00% 0,00%

Energy content 2015: 7,878 TJ Diagram 31: Emissionseinsparung FA ME 2015

The following section 6.5 shows the efforts made by the value chain to improve emission savings of FAME, bioethanol, vegetable oil and biomethane. It contains tables to illustrate emission savings of individual biofuels, broken down by their (main) source materials with quantities and shares expressed in percent and, where applicable, by their origin(s) and in increments of 5% starting from a minimum 35%.

Page 53 of 78 6.5 Emission savings of individual types of biofuel according to GHG reduction levels

Table 8: Emission savings of bioethanol according to source material and GHG reduction level – shares in %

GHG savings compared to 83.8 Waste/ Bioethanol gCO2eq/MJ Residue Barley Maize Rye Triticale Wheat Sugarcane Sugarbeet total [%] (156 TJ) (1,353 TJ) (10,313 TJ) (2,292 TJ) (2,717 TJ) (9,395 TJ) (650 TJ) (4,177 TJ) (31,053 TJ) >35-40 1.02 4.44 1.08 0.20 0.49 >40-45 0.08 0.07 0.01 0.07 0.03 >45-50 0.46 0.65 0.10 0.46 0.51 0.83 0.55 >50-55 23.82 3.40 0.04 1.18 46.92 8.84 >55-60 0.64 1.00 1.82 1.47 1.13 1.43 1.13 1.15 >60-65 0.36 29.49 88.75 26.48 13.70 48.44 29.33 >65-70 50.01 16.48 3.42 61.36 26.10 0.10 21.18 >70-75 36.99 18.57 10.43 1.37 4.18 58.34 2.51 7.39 >75-80 10.77 9.78 18.74 16.06 9.31 >80-85 34.25 7.43 1.38 1.29 3.09 >85-90 8.22 7.61 5.03 >90-95 9.98 5.25 22.89 5.38 >95 16.97 6.14 3.14 9.08 20.01 8.25 Sum total 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % Chapter Chapter 6 |54

Page 54 of 78 55 | Chapter 6

Evaluation and Progress Report 2015

70 10 74 01 20 01 51 18 13 18 38 61 25

.

0. 0. 0. 1. 1. 4. 1. 7. 5. 13. 26 18. 20. 100 % 100

heat W

395 TJ) 395 total (9, Bioethanol from

00

100 % 100 100. Countries (155 TJ) (155

Third at

e

h 05 30 25 76 21 01 56 26 02 91 64 04 97 W

0. 0. 0. 1. 1. 4. 1. 9. 3.

11. 20. 22. 23. 100 % 100 an shares in % shares 913) – (7, Germany Europe Union w/o

08 74 12 27 79 90 33 77

0. 0. 0. 1. 0. 1. 31. 63. 100 % 100 reduction level 327 TJ) 327 , Germany (1 HG G

49 48 43 65 40 00 78 43 22 98 14

0. 3. 1. 9. 7. 8. 9. 3. 29. 16. 10. 100 % 100

aize M origin a nd

313 TJ) , total (10, Bioethanol from

34 87 68 02 12 19 10 72 25 71

3. 0. 0. 7. 9. 2. 10. 19. 28. 18. 100 % 100 046 TJ) 046 , (2

Third Countries ze

Mai 24 71 49 01 82 50 17 42 12 11 10 31

0. 0. 3. 1. 7. 7. 3. 8. 3. 37. 17. 10. 100 % 100

EU 108 TJ) 108 , (8

source material to source of b ioethanolaccording 16 48 25 40 75 87 01 07

0. 2. 2. 8. 5. 2. 12. 66. 100 % 100 s aving s (158 TJ) (158 Germany

78

s ed

of

/MJ 8 : Emission 9 : total to 2eq 40 45 50 55 60 65 70 75 80 85 90 95 55 [%] ------

83. GHG aving s compar gCO >35 >40 >45 >50 >55 >60 >65 >70 >75 >80 >85 >90 >95 Sum Table Page Table 10: Emission savings FAME according to source material and GHG reduction level – shares in %

GHG savings compared to 83.8 Waste/ FAME gCO2eq/MJ Residue Palm Oil Rapeseed Soy Sunflowers total [%] (20,549 TJ) (4,776 TJ) (48,251 TJ) (164 TJ) (139 TJ) (73,878 TJ) >35-40 0.12 2.58 13.57 1.72 >40-45 0.51 0.10 0.10 >45-50 0.94 0.16 0.17 >50-55 3.49 1.88 8.94 1.47 >55-60 5.87 15.41 10.44 >60-65 12.75 62.72 77.48 81.64 42.11 >65-70 10.18 14.39 18.36 10.09 >70-75 0.01 26.35 0.18 1.82 >75-80 1.41 37.35 1.81 3.99 >80-85 4.58 2.42 0.10 1.49 >85-90 30.73 0.02 0.59 8.93 >90-95 55.78 0.09 15.57 >95 7.49 2.08 Sum total 100 % 100 % 100 % 100 % 100 % 100 % Chapter Chapter 6 |56

Page 56 of 78 57 | Chapter 6

Evaluation and Progress Report 2015

41 72 39 58 10 16 88 18 81 10 59 09

.

2 0. 0. 1. 0. 1. 0. 0. 0.

15. 62. 14.

100 % 100

eed 250 TJ) total from FAME Rapes (48,

62 17 75 35 49 53 24 85 9. 1. 2. 1. 1. 1.

10. 71. 100 % 100 (670 TJ) (670

Third Countries

eed

es 18 32 92 68 19 30 42 29 59 21 81 09

Rap 3. 0. 0. 3. 0. 3. 0. 0. 0. 12. 53. 21. 100 % 100 358 TJ) Germany European Union w/o (15,

Anteile in % Anteile

79 45 07 91 03 10 97 13 97 04 45 09

1. 0. 0. 0. 0. 0. 0. 0. 0. 15. 68. 11. 100 % 100 222 TJ) Germany (32,

Minderungsstufe – Minderungsstufe - 73 78 01 41 58 49

0. 1. 4. 7.

30. 55.

100 % 100

549 TJ) and total from FAME Waste Residu e (20,

37 42 25 21 76

0. 1. 1. 49. 47. 100 % 100

524 TJ) 524 (4, idue Third Countries

e/Res 28 80 43 41 08

1. 6. 1. 22. 68. 100 % 100 an Wast w/o 378 TJ) Germany Europe Union (10,

32 55 88 02 03 30 90

0. 0. 2. 3. 31. 38. 23. 100 % 100 647 TJ) 647 Germany (5,

Emissionseinsparung FAME nach Ausgangsstoff, und THG Herkunft nach FAME Emissionseinsparung

78

: s ed

of

/M

8 11

J 2eq 40 45 50 55 60 65 70 75 80 85 90 95 57 to ------

[%] 83. GHG aving s gCO compar >35 >40 >45 >50 >55 >60 >65 >70 >75 >80 >85 >90 >95 Sum total Table Page Chapter 6 | 58

Table 12: Emission savings vegetable oils according to source material and GHG reduction level – shares in %

GHG savings compared to 83.8 gCO2eq/MJ Rapeseed [%] [343 TJ] >35-40 0.31 >55-60 96.04 >60-65 0.96 >65-70 0.49 >70-75 2.20 Sum total 100 %

Table 13: Emission savings of biomethane according to source material and GHG reduction level – shares in %

GHG savings compared to 83.8 Waste/ gCO2eq/MJ Residue [%] [1,251 TJ] >70-75 11.82 >75-80 0.68 >80-85 5.83 >85-90 81.68 Sum total 100 %

Page 58 of 78 59 | Chapter 7

Evaluation and Progress Report 2015

7. Bioliquids

The total amount of bioliquids registered for electricity production and feed-in pur- suant to the Renewable Energies Act cotinued to increase during the reference years. Annual comparison of all bioliquids [TJ]

35.000 32.994 30.000 29.559 30.792 25.000

20.000

15.000

10.000

5.000

0 2013 2014 2015

Diagram 32: Jahresvergleich aller Biobrennstoffe

7.1 Types of Bioliquid

Every year, the most important type of bioliquid by far was bioliquid from the pulp industry (thick liquor). The amount of vegetable oil used rose by almost 27 %.

Types of bioliquid [TJ]

30.000 25.000 28.981 27.568 20.000 26.686 15.000 10.000 3.967 3.125 5.000 2.810 1 62 22 8 76 36 0 From pulp industry FAME Vegetable oil UCO

Bioliquids 2013: 29,559 TJ Bioliquids 2014: 30,792 TJ 2013 2014 2015 Bioliquids 2015: 32,994 TJ Diagram 33: Biobrennstoffarten

Page 59 of 78 Chapter 7 | 60

7.2 Source materials and origins of vegetable oils used as bioliquids

Contrary to the decreasing use of palm oil for fuels, its use in the field of bioliquids increased by 24 %. were no longer used. Source materials vegetable oil [TJ]

3.500 3.069

3.000 2.329 2.500 2.279

2.000

1.500

1.000 898 797 500 531 0,54 0,06 0 Palm oil Rapeseed Soya Bioliquids 2013: 2,810 TJ Bioliquids 2014: 3,125 TJ 2013 2014 2015 Bioliquids 2015: 3,967 TJ Diagram 34: Ausgangsstoffe Pflanzenöl

In the field of vegetable oils, the share of palm oil originating in Malaysia increased by almost 85 %.

Vegetable oils from palm oil according to origin [TJ]

2.500

2.000 2.202 1.500

1.000 1.136 1.366 1.193 912 867 500 1 0 Malaysia Indonesia without indication Vegetable oils 2013: 2,279 TJ Vegetable oils 2014: 2,329 TJ 2013 2014 2015 Vegetable oils 2015: 3,069 TJ Diagram 35: Pflanzenöle aus Palmöl nach Herkunft

Page 60 of 78 61 | Chapter 7

Evaluation and Progress Report 2015

7.3 Emissions and savings

For the calculation of emission savings, the total amount of emissions generated during the production of the bioliquid were compared to the reference value of 91 g CO2eq/MJ for fossil fuels used for electricity production.

The reference values emission calculations were based on are listed in Table 14.

Table 14: Reference values used to calculate emissions of bioliquids including data no data re. no data re. total re. emissions emissions emissions [TJ] [TJ] [TJ] [%] Jahr 2013 29,559 29,440 119 0.40 Jahr 2014 30,792 30,791 1 0.003 Jahr 2015 32,994 32,994 0 0

Due to the large share of thick liquor from the pulp industry, with very very low emission rates, the total savings in the area of bioliquids are quite high. In sum, however, more emissions were generated as the amount of source materials used did increase.

The use of bioliquids for electricity/energy productin allowed savings of ca. 2,800,000 tonnes of CO2 equivalents.

Emissions and savings of bioliquids [tCO2eq]

3.500.000

3.000.000

2.500.000

2.000.000

2.808.315 1.500.000 2.631.056 2.518.164 1.000.000

500.000

160.907 194.093 0 170.886 Year 2013 Year 2014 Year 2015 Saved emissions compared to fossil fuels Emissions generated Diagram 36: Emissionen und Einsparungen der Biobrennstoffe

Page 61 of 78 Chapter 7 | 62

Compared to last year, the generated amount of CO2eq per TJ increased by 6 %.

Emissions generated by bioliquids [tCO2eq/TJ]

6,00

5,80 5,88 5,60

5,40 5,55 5,47 5,20

5,00

Year 2013 Year 2014 Year 2015

Diagram 37: Entstandene Emissionen der Biobrennstoffe

Consequently, emission savings decreased.

Total savings of bioliquids

94,00% 93,99% 93,90% 93,80%

93,60% 93,54% 93,40%

93,20%

93,00%

Saving 2013 Saving 2014 Saving 2015

Diagram 38: Gesamteinsparung der Biobrennstoffe

Page 62 of 78 63 | Chapter 7

Evaluation and Progress Report 2015

Again, in the reporting year, bioliquids from the pulp industry as well as vegetable oils and UCO showed an improvement. Only FAME‘s greenhouse gas performance worsened.

Emissions generated by various types of bioliquid [tCO2eq/TJ]

50,00

40,00 46,47

30,00 37,56 37,19 36,26 36,00 36,90 35,44

20,00

10,00 19,31 2,23 14,00 1,58 1,87 0,00 aus Zellstoffind. FAME Pflanzenöl UCO

Jahr 2013 Jahr 2014 Jahr 2015

Diagram 39: Entstandene Emissionen der Biobrennstoffarten

Emission savings of various types of bioliquids

100,00%

80,00% 97,94% 97,55% 98,26% 84,62%

60,00% 78,78% 61,06% 60,44% 60,16% 59,45% 59,13% 40,00% 58,72% 48,93% 20,00%

0,00% From pulp industry FAME Vegetable oil UCO

Savings 2013 Savings 2014 Savings 2015

Diagram 40: Emissionseinsparung der Biobrennstoffearten

Page 63 of 78 Chapter 8 | 64

8. Retirement accounts

Biofuels and bioliquids which are registered in the Nabisy database and will be exported to other countries must be retired to the respective state’s account, in Nabisy and by the economic operators. This way, 89,892 terajoules of biofuel and bioliquids were trans- ferred to accounts of states within and outside of the European Union during the report- ing year. Last year’s quantity amounted to 52,644 TJ. Almost hlaf of this quantity con- sisted of FAME. The largest shares thereof went to France, Austria and Belgium.

Retirements in Member States and third countries 2015 according to type of biofuel/bioliquid [TJ]

43.308 45.000

40.000

35.000

30.000 25.933

25.000

20.000 13.570 15.000

10.000 6.189

5.000 890 1

0

Total withdrawal amount 2015: 89.892 TJ

Diagram 41 Ausbuchung in Mitgliedstaaten und Drittstaaten 2015

Page 64 of 78 65 | Chapter 8

Evaluation and Progress Report 2015

The following diagram shows that the emission savings potential of quantities retired to state accounts was inferior to that of quantities which were counted towards the German GHG reduction quota. Average emissions of the former are 10% higher. The value of 83,8 g CO2eq/MJ for biofuels was used as a benchmark to calculate the emis- sion savings of quantities that were retired.

Emission savings of quantities retired in Member States and in third countries compared to savings of quantities counted

90,00%

80,00% 84,28% 70,00% 75,15% 70,73% 60,00% 70,62%

50,00% 61,78% 59,91% 57,40% 55,50% 40,00% 52,70% 49,56%

30,00%

20,00%

10,00%

0,00% Bioethanol Biomethane FAME HVO Vegetable oil

Based on biofuels Debit to country accounts Diagram 42: Emissionseinsparungen im Vergleich

The largest share of retired biofuels and bioliquids went to Sweden’s account (21.4%) and has almost quadrupled, compared to last year. Large shares also went to the Netherlands (16.2 %) and to France (15.5%).

The following diagram only shows country accounts which quantities of over 1,000 TJ were retired to in at least one reference year. Table 15 on page 70 gives a complete overview of retired quantities.

Page 65 of 78 Chapter 8 | 66

Retirement in Member States and third countries [TJ]

0 5.000 10.000 15.000 20.000 25.000

2.564 Belgium 3.271 7.178 445 1.152 Bulgaria 638 24.235,68 Denmark 1.078 1.655 7.370 3.355 France 13.931 5.955 Italy 2.986 2.332 5.190 9.985 Netherland 14.551 52 Norway 224 1.139 19.346 Austria 9.094 9.400 1.619 Poland 1.866 4.889 1.458 Rumania 733 1.178 5.072 Schweden 5.207 19.251 118 1.261 Switzerland 175 1.297 Spain 1.361 1.156 925 Czech Republik 447 1.700 6.216 United Kingdom 7.918 7.356

2013 2014 2015 Diagram 43: Ausbuchung in Mitgliedstaaten und Drittstaaten

Page 66 of 78 67 | Chapter 8

Evaluation and Progress Report 2015 6 4 12 24 38 931 551 251 892 178 638 655 341 315 332 675 139 400 889 384 178 175 736 156 700 830 356 , 4, 7, 1, 2, 1, 9, 4, 1, 1, 1, 7, 13, 1 19, 89 al t To 5 2 4 9 9 1 28 10 74 27 46 29 19 711 300 522 737 139 169 618 120 547 126 , , - 1 5 r ga et u e S b 3 28 28 12 - 163 199 307 486 225 , r 1 2, ga u S cane 3 1 7 6 2 11 69 76 71 30 60 81 113 220 138 728 853 626 165 258 332 144 426 421 at 1, 5, e h W 1 4 2 50 21 90 17 249 435 Triticale 1 46 47 - n u S flowers 1 7 92 83 175 286 264 175 202 284 , y 1, 2 So 1 2 2 3 1 5 74 13 93 115 354 662 e y R 7 37 23 e 305 446 493 477 899 636 131 661 813 982 371 190 214 485 496 347 597 5, 6, 1, 6, 2, 1, 29, Rap Seed ountries [TJ] 6 Oil 964 590 272 848 380 170 131 145 507 , 2, 1, 3, 9 hird C Palm in T 3 1 5 9 26 92 62 10 50 28 27 ze 496 152 817 164 690 242 350 450 729 925 153 223 480 181 a nd 4, 1, 11, Mai 2 2 26 15 32 21 98 Barley 1 3 Member States 37 37 78 15 672 599 470 087 483 241 435 570 472 , , , in / 3, 1 3 3 1 23, idue Waste Res Retirement 78 s urg of o a a a y 15 : i nia a ni d e ay erland 67 um a a h Republic dom erland c z eni n t al y a vi land ngar nmark hu land ec t t ng e i e roati a weden wi Table Retirement Account Belgi Bulgaria D Fin Fran Ir Ital C L Lit Luxemb Neth Norw Austria Pol Portugal Ruma S S Slovak Slov Spain Cz Hu United K Cyprus To Page Chapter 8 | 68

Apart from the option to retire quantities to country accounts, the electronic data- base Nabisy offers additional options for quantities subject to proof, which are or were not used to produce energy/ electricity in Germany. The following diagram shows the development of these three additional accounts.

Retirement to other accounts [TJ]

35.000 30.178 30.000

25.000

20.000

15.000 9.290 10.000 4.883 5.000 2.288 1 136 1.3065.754 553

0 Cancellation Cancellation of Shortfall on the /Depreciation in case PoS/PPoS – further reporting day of non-use of biogas conversion in the fuel sector 2013 2014 2015 Diagram 44: Ausbuchung auf sonstige Konten

Page 68 of 78 69 | Chapter 9

Evaluation and Progress Report 2015

9. Outlook

Parties obliged to provide proof who have brought fuels into circulation in Germany as of 01.01.2015, must save at least 3.5% of greenhouse gas emissions compared to their individual reference value.

As expected, the greenhouse gas reduction quota recently introduced in Germany en- courages all parties involved to keep emissions as low as possible along the entire value chain. Because on the German market there is a high demand for emission prevention to cost as little as possible and for economically viable biofuels with high levels of green- house gas emission savings.

This, in turn, leads to a significant increase in individual greenhouse gas calculations and away from default values, especially at production level. It increases the necessary effort for certification bodies which verify the individual greenhouse gas balances. Only verifications adapted to each individual greenhouse gas calculation can justify the fact that the market trusts in the correctness of the certified emission values indicated. This also requires detailed verification requirements within the systems to make sure that certificates are uniform.

Germany’s first year with the greenhouse gas reduction quota also shows that product quantities which were retired to accounts of other Member States – and were thus not used in Germany – regularly achieve lower emission savings levels.

As of 2018, biofuels shall only be considered sustainable if they achieve savings of at least 50% compared to the fossil reference value. By then, if not earlier, the demand for these sustainable biofuels will rise across Europe.

Already in 2017, biofuels from new installations will only be considered as sustainable, if they save at least 60% of emissions, compared to the fossil reference value. In order to implement this rule the BLE shall, in the future, ask system participants for the date of an installation’s becoming operational.

In the field of biofuels it remains to be seen whether the negative trend regarding the use of palm oil that was certified as sustainable will continue in the years ahead.

Page 69 of 78 Chapter 10 | 70

3 23 23 2013 UCO

l 343 343

2015

46 151 151 .

2014

p

1 Diagram 24 03 Vegetable Oi Vegetable . 367 368 0

2013

227 132 359 , , 7 7 2015

9 7

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Diagram 22

559 559 , , 2013 20 20

549 776 251 164 139 878 , , , 4 20, 48 73 2015

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2013

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Evaluation and Progress Report 2015

1 1

4 2013 UCO

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2 279 164 155 323 924

a 2015

c

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Evaluation and Progress Report 2015

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e y Differences in sum totals to rounding are due in sum Differences ource unflowers Table S Waste Barley Maize Palm Oil Rapes Ry So S Triticale Wheat Sugarcane Sugarbeet Total 1 Page 75 | Chapter 10

Evaluation and Progress Report 2015

73 28 03 62 78 40 19 26 93 45 62 54

5 5 70. 84. 73. 70. 61. 57. 98. 48. 59. 84. 70. 93.

201 201

[%] [%]

62 49 Savings Savings . . p p , ,

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201 201

nd nd nd a [%] [%] a

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40

30 25 81 95 34 00 72 55 72 16 44 99

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201 201 [%] [%] Savings Savings

53 17 60 62 03 70 98 47 90 00 58 88 5 5

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/TJ /TJ 2eq 2eq

power generation CO CO 49 62

for . . [t [t p p , , Emissions Emissions

06 66 36 87 15 75 44 19 31 87 55 4 4

3 1. 5. , ] ] 1 38. 20. 41. 45. 36. 35. 37. 19. 40. Diagram 26 Diagram 37 201 201

/TJ /TJ s nd nd nd 2 2eq 2eq , a a

1 liquids CO CO 50 63

. . [t [t p p , , Emission Emissions

Savings

3 3 97 93 98 78 94 03 30 56 26 00 23 47

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Diagram 28 Diagram 39 /TJ /TJ s avings ofS avings Bio as the reference lue theva reference as for fossil fuel 2eq 2eq Emission CO CO

/MJ a nd [t [t /MJ as the reference value for fossil bioliquids value reference fossil for the /MJ as 2eq s Emissions Emission

2eq

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average of Biofuel Emission Biofuel

78

Type

of

21 : Emission 22 : ethanol

thanol 75 fuel m liquid Type fuels liquids io io Differences in sum totals to rounding are due in sum Differences 83 to compared Savings CO 91 g to compared Savings Bio Bioe Biomethan Bio FAME HVO Vegetable Oil UCO Weighted b Bio from the pulp FAME Vegetable Oil UCO Weighted average of all b Table Table 1 2 3 Page Chapter 10 | 76

Table 23: Types of Bioliquid [TJ]1

Diagram 33, p. 59 Bioliquid type 2013 2014 2015 from the pulp industry 26,686 27,568 28,981 FAME 62 76 36 Vegetable Oil 2,810 3,125 3,967 UCO 1 22 8 Total Diagram 32, p. 59 29,559 30,792 32,994

Table 24: Bioliquid Vegetable Oil TJ – Source Materials1 Diagram 34, p. 60 Source Material 2013 2014 2015 Palm Oil 2,279 2,329 3,069 Rapeseed 531 797 898 Soy 1 0.06 Total 2,810 3,125 3,967

Table 25: Vegetable Oils from Palm Oil according to Origin (Bioliquid) [TJ]1 Diagram 35, p. 60 Origin 2013 2014 2015 Malaysia 1.366 1.193 2.202 Indonesia 912 1.136 867 no indication 1 Total 2.279 2.329 3.069

1 Differences in sum totals are due to rounding.

Page 76 of 78 77 | Chapter 11

Evaluation and Progress Report 2015

11. Conversion Tables, Abbreviations and Definitions

Conversion of Energy Units

Energy Unit Megajoule Kilowatt Terajoule Petajoule [PJ] [MJ] Hour [TJ] [kWh] 1 Megajoule [MJ] 1 0.28 0.000001 0.000000001 1 Kilowatt Hour [kWh] 3.60 1 0.0000036 0.0000000036 1 Terajoule [TJ] 1,000,000 280,000 1 0.001 1 Petajoule [PJ] 1,000,000,000 280,000,000 1,000 1

Density Biofuel Type Tonne per Cubic Megajoule Metre [t/m³] per Kilogram [MJ/t] Bioliquid from the 1.32 7,000 Pulp Industry Bioethanol 0.79 27,000 Biomethane 0.00072 50,000 Biomethanol 0.80 20,000 FAME 0.883 37,000 HVO 0.78 44,000 Vegetable Oil 0.92 37,000 UCO 0,92 37.000

Page 77 of 78 Chapter 11 | 78

Abbreviations and Definitions

Abbreviation Meaning 36. BImSchV 36th Ordinance for the implementation of the Federal Immission Control Act (Verordnung zur Durchfüh- rung des Bundes-Immissionsschutzgesetzes) BHKW Combined heat and power plant Biokraft-NachV Biofuel Sustainability Ordinance (Biokraftstoff- Nachhaltigkeitsverordnung, Biokraft-NachV) BioSt-NachV Biomass Electricity Sustainability Ordinance (Bio- massestrom-Nachhaltigkeitsverordnung, BioSt- NachV) DE-System Certification system recognised by the BLE pursuant to Art. 33 Nos. 1 and 2 BioSt-NachV and/or Bio- kraft-NachV EEG Erneuerbare-Energien-Gesetz [Renewable Energies Act] EU-System Voluntary System pursuant to Art. 32 No. 3 BioSt- NachV and/or Biokraft-NachV FAME Fatty Acid Methyl Ester (Biodiesel) HVO Hydrogenated Vegetable Oils (Hydrierte Pflanzen- öle) Terms Meaning THG Treibhausgas Bioliquids from Energy- and lignin-rich by-products of cellulose pro- UCO Used (Altspeisefette und -öle) the pulp industry duction in the paper industry Bioethanol is derived from renewable raw materials by distilla- (Ethyl alcohol) tion after alcoholic fermentation or by comparable biochemical methods Biomethane Biogas results from biomass fermentation as a me- thane-rich gas. Biomethanol Like BTL fuel, methanol can be produced via synthe- sis gas and from a wide range of biomass types. It can also be produced by converting crude glycerin. FAME Fatty acid methyl ester, called biodiesel, is generated during the chemical conversion of fats and oils by means of methanol. HVO Hydrogenated vegetable oil is converted to hydrocar- bon chains by means of a chemical reaction with hydrogen in a hydrogenation plant. Vegetable Oil Vegetable oil fuel can be produced from oilseed rape or from other oil plants while, in contrast, to bio- diesel no chemical conversion takes place. UCO Used cooking oils or fats can be used as pure fuels or as components of FAME.

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