Q&A: Ewaba expects higher waste-feedstock demand

Argus spoke with Leonidas Kanonis, communications director at the European Waste-to-Advanced Biofuels Association (Ewaba), to discuss the development of the waste feedstocks market under the revised Renewable Energy Directive (RED II) and the potential impact of the European Commission's upcoming ReFuelEU legislative proposal.

What feedstocks from Annex XI part A of RED II do you think have the most potential to become more important in the market in the near future and why?

The Annex IX part A of REDII has a considerable potential to support biofuels production from biogenic sources. Demand for waste feedstocks will increase over the next decade and we welcome the upcoming introduction of additional feedstocks to Annex IX.

Already, palm oil mill effluent (Pome) is taking a greater market share, as well as tall oil and spent bleaching earth oils (SBEOs). Also, considerable feedstock supply could come from municipal sludge and industrial wastewater, oils extracted from waste food or even non-edible cereal residues from grain milling, all of which are already incentivised under RED II.

Do you think it is likely that the EU would revise the cap on waste-based biofuels in transport? If it is lifted how do you think it would affect the European biofuels market?

The new EU track and trace database for biofuels and bioliquids combined with stricter standards for certification schemes are major enablers for the complete elimination of the 1.7pc soft limitation part B of Annex IX (UCO and animal fats) in the REDII revision. The addition of new feedstocks in part B of Annex IX also makes this cap redundant.

Planned proposals by the European Commission in terms of traceability, certification as well as the addition of new feedstocks in Annex IX could ensure the long-term sustainability of the sector without the limitations that currently hinder further use of sustainable biofuels in the transport mix.

What is the latest update regarding this upcoming database for biofuels and bioliquids as part of the revision?

The European Commission is confident that by June there will be an EU database up and running. But there still seems to be uncertainty as to who will design the database and whether it is going to be solely run by the EC.

Do you expect higher biodiesel blends stemming out of the Fuel Quality Directive (FQD) revision later this year?

The waste-based biodiesel industry has been fighting to achieve higher biodiesel blends because this is a necessary step to increase the share of renewable energy in the transport sector and it achieves the highest GHG emissions savings. The B7 is a limit that has been in place for over a decade and establishes an artificially low blend wall for EU fuel suppliers which are being forced to use expensive alternatives to meet climate targets.

The main claim of those against higher blends is that of engine compatibility. But an ever-increasing number of brands of EU passenger cars are already officially compatible with a B10 biodiesel blend. Several case studies for blends up to B100 have been showcased across Europe, with wider fuel deployment for passenger and heavy-duty vehicles currently restrained by limited government incentives offered in the EU.

How do you foresee the upcoming ReFuelEU legislative proposal by the European Commission affecting the European waste feedstock market?

Ewaba supports the promotion of sustainable aviation fuels (SAFs) under the new mechanism, but a potential blending mandate currently envisaged by the European Commission will for the period 2025-2030 heavily rely on waste lipid feedstocks listed in Annex IX of the Renewable Energy Directive (RED).

Ewaba along with our German sister association MVaK have commissioned a study on UCO conversion efficiency to identify the performance of different technologies processing UCO. The study has shown that production of UCO-based HVO for aviation, known as Hefa, is a less efficient process and leads to 76pc GHG savings compared with fossil fuels, while waste-based biodiesel (Ucome) used in road and maritime transport achieves 90pc GHG savings.

An all-inclusive blending mandate for aviation, without a safeguard for waste lipids use in road and maritime transport, would leave waste-based biodiesel players exposed. A few SAF producers would be benefitting from public support and the difference in cold flow properties for aviation that lead to high SAF prices, this would allow them to outmatch any buyers when purchasing feedstock.

And a blending mandate heavily relying on Hefa fuels from waste lipids would send the wrong signal to investors who should focus on developing technologies using feedstocks with greater availability. The German, Danish and British approaches to SAF — which excludes waste lipids and focuses on e-fuels and scalable novel advanced biofuels — are the way forward.

Is the EU shipping industry ready to introduce a mandate for the long-term decarbonisation of the sector following the International Maritime Organisation's (IMO) sulphur cap that was implemented last year? And are biofuels producers well equipped to supply the maritime industry with low-carbon fuels?

As part of FuelEU Maritime initiative, the European Commission aims to introduce a policy to reduce emissions from maritime transport by accelerating the uptake of sustainable alternative fuels, although a mandate may not be a priority for the European Commission.

There are some structural problems with the decarbonisation of marine fuels, with a key one being the 25-30 years life-cycle of ships.

The number of sustainable alternative fuels and technologies currently available in the maritime sector is limited. But liquid biofuels can be used on long, intercontinental voyages and are compatible with existing ship engines.

The European inland waterway industry already uses EN590 (REDII compatible) and has an ambition to be emission free by 2050. Around 20pc of the total Dutch inland waterway industry is using blends of B7 and some ship operators use B20 successfully although no official mandates are in place.

By Daniel Mackay

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