Ekonomist Bd V1 (Eng)


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  • Ekonomist Bd V1 (Eng)

    1. 1. CONFERENCE “Renewable Fuels – The Road to Energy Independence” May 8 th , 2007. Hyatt Regency Hotel, Belgr ade , Serbia THE FIRST BIODIESEL PLANT IN SERBIA <ul><ul><li>Veroslav Jankovic, B.Sc.EE VICTORIA GROUP, Novi Sad Technical & Development Dept. Executive Manager </li></ul></ul>
    2. 2. TOPICS FOR PRESENTATION <ul><li>Who will attend the Conference? </li></ul><ul><ul><li>Representatives of regional governments and state institutions, together with non-government sector </li></ul></ul><ul><ul><li>Potential users of Biodiesel </li></ul></ul><ul><ul><li>Representatives of investment funds and potential competitors </li></ul></ul><ul><ul><li>Others interested in this field – car industry, agriculture, ecology, domestic and foreign experts </li></ul></ul><ul><li>Target – to give answers and to initiate discussion </li></ul><ul><li>What is Biodiesel, Why Victoria Group, Potentials, Marketing strategy, Legislative problems, Presentation of the factory </li></ul>
    3. 3. IDEA <ul><li>First, we have vision – we want to create the leading agricultural complex in the country. </li></ul><ul><li>Second, we have the strategy – we have made such a system where we united production of pesticides, seeds, fertilizers, as well as silos, dryers, processing plants, finalization, up to final consumers and farms. </li></ul><ul><li>Third, we know how to make profit and to reinvest it in the development. </li></ul><ul><li>That is a reason why the mission of Victoria group is the leadership in Serbian agro business, and the group slogan – “ One step ahead ” – is a symbol of our business philosophy. </li></ul>
    4. 4. INVESTMENTS <ul><li>In order to realize the permanent process of development, each enterprise has to invest, to put in its own or borrowed funds, to postpone the possible expenditure today, thus being able to invest TOMOROW. </li></ul><ul><li>The most crucial is to select the PROPER investment; to realize it in optimal period of time, with optimal costs; to choose and to educate personnel and finely, to establish the organization of work </li></ul>
    5. 5. PLANS <ul><li>To close the circuit: </li></ul>PR OCESSING FINALIZA TION ROW MATERIALS SERVICES
    6. 6. WHAT IS BIODIESEL? <ul><li>Biodiesel is a liquid biofuel, produced from oilseeds and used cooking oils and fats; </li></ul><ul><li>Rape seed, soybean and sunflower seed are the most frequently used row materials; </li></ul><ul><li>Biodiesel is renewable energy resource – it is exploited with the same speed as it renews; </li></ul><ul><li>According to chemical composition, Biodiesel is a mixture of Fatty Acids Methyl Esters (FAME); </li></ul><ul><li>From technical aspect, Biodiesel is an alternative fuel for conventional diesel combustion engines, usable pure or mixed in any ratio with fossil diesel fuel, no diesel engine modifications are required. </li></ul>
    8. 8. WHY VICTORIA GROUP? <ul><li>We posses our own source of raw materials and processing facilities; </li></ul><ul><li>In “Sojaprotein” factory approximately  250,000 Mt of soybeans per year are being processed into 40,000 Mt crude soybean oil; </li></ul><ul><li>Oil Mill in Šid with processing capacity of sunflower and rapeseed of 200,000 Mt per year can provide additional 80,000 Mt crude vegetable oil; </li></ul><ul><li>The production of oilseeds on over 150,000 ha is organized by our Row Material Department. </li></ul>
    10. 10. POTENTIALS IN SERBIA <ul><li>According to data obtained from Serbian Association for Industrial Crops, 196,208 Mt of crude oil was produced in Serbia during 2006; </li></ul><ul><li>100,000 Mt of oil is used in F ood Industry per year (per capita:12 l); </li></ul><ul><li>Sowing plans for this year are as follows: </li></ul><ul><ul><li>Soybean: 178,000 ha, equivalent to 60,000 Mt of oil </li></ul></ul><ul><ul><li>Sunflower: 233,880 ha, equivalent to 150,000 Mt of oil </li></ul></ul><ul><ul><li>Rapeseed: 25,000 ha. equivalent to 15,000 Mt of oil; </li></ul></ul><ul><li>Potentials for sowing exceed 600,000 ha (20% of biological maximum); </li></ul><ul><li>Used cooking oils, fatty acids and animal fats could be also used as row materials; </li></ul><ul><li>The total surplus of various types of oils which could be processed into Biodiesel is approx. 200,000 Mt, not including import oils. </li></ul>
    11. 11. NAPHT H A vs. BIODIESEL <ul><li>Annual processing of naphtha in Serbia is approx. 4 millions Mt; </li></ul><ul><li>Annual consumption of diesel fuel is about 1 million Mt; </li></ul><ul><li>Realization of proclaimed targets in EU of 5.75%, even 10% of total diesel fuel consumption is guarantied , due to the existing potentials in Serbia, </li></ul><ul><li>There are possibilities for export, also. </li></ul>
    12. 12. WHY BIODIESEL? <ul><li>The need for higher supply security in liquid fuels for transportation sector and agriculture by renewable resource; </li></ul><ul><li>The need to use it as a fuel in diesel engines that less pollutes the environment, and in the same time no changes on engines are necessary and it can be mixed with fossil diesel; </li></ul><ul><li>To consumer it provides reliable fuel with lower price; </li></ul><ul><li>Solution of the problem: reduced gas emission (especially CO2), which is one of greenhouse gases and their influence on global warming; </li></ul><ul><li>By ratification of Kyoto-protocol, EU has obligation to reduce gas emission for 8% until 2012. compared to the level in 1990. </li></ul>
    13. 13. PRICE ANALYSIS The difference in prices is increasing in EU Vegetable oils prices
    14. 14. PREDICTIONS Vegetable oils and crude naphtha prices trends – predictions
    15. 15. MARKETING STRATEGY <ul><li>Market segmentation: </li></ul><ul><ul><li>Agriculture </li></ul></ul><ul><ul><li>Public transportation </li></ul></ul><ul><ul><li>Transport companies </li></ul></ul><ul><ul><li>Fuels stations (retail trade) </li></ul></ul><ul><ul><li>Blending </li></ul></ul><ul><li>The price will be formed in complex way: </li></ul><ul><ul><li>Stock exchange price of crude oils </li></ul></ul><ul><ul><li>Stock exchange price of crude naphtha </li></ul></ul><ul><ul><li>Subvention policy </li></ul></ul><ul><li>Organization/Disorganization of Energetic Sector </li></ul><ul><li>Technical support </li></ul>
    16. 16. ENVIRONMENT <ul><li>At least , three interests for development of such projects were recognized whole over the world: </li></ul><ul><ul><li>Economical </li></ul></ul><ul><ul><li>Ecological </li></ul></ul><ul><ul><li>Energetic </li></ul></ul><ul><li>Application of Biodiesel and other renewable energy resources contributes to the development of agriculture, new employments... </li></ul>
    17. 17. LEADERS <ul><li>Brazil </li></ul><ul><li>USA </li></ul><ul><li>European Union </li></ul>
    18. 18. EUROPE
    19. 19. EU POLICIES CONCERNING BIODIESEL From 1 st of Jan., 2004. all bio components were deliberated from taxes (accises and ecological taxes were reduced from 47 to 44.7 Euro cent /l for B5. ) Taxes Legislations in Germany, as a consequence of introduction of directives in EU 2004. Permits addition of Biodiesel up to 5%, without labeling European Automobile Diesel Standard DIN EN 590 2004. The main objective is to replace 2% of all fuels by biofuels and until 2010. even 5,75%. Define the quality of Biodiesel, as an alternative fuel, thus establishing the B100 as a brand (specified characteristics and methods of analyzing) European Directive for the Promotion of the use of Biofuels, EU 2003/30/EG Standard for Biodiesel DIN EN 14 21 4 2003. 2003. With regard to the supply-side, development of options, leading to a change towards less carbon-intensive technological solutions, is a crucial priority, given to the constraints imposed by the fight against global worming. The Green Paper “Towards an European Strategy for the Security of Energy Supply” 2000. The main objective envisaged is to double (from 6% to 12%) the share of renewable energy resources in the total energy consumption by 2010. The White Paper for Renewable Energy Resources Ratification of Kyoto Protocol adopted by EU members 1997. 1998. To reduce overall greenhouse emissions as a part of a strategy to reduce global worming Kyoto Protocol 1997. Agricultural Policy Reform Blair House Agreement 1992. Target / Initiative Regulative Period
    20. 20. THE CANDIDATE COUNTRIES <ul><li>They are working intensively on coordination of internal regulations and standards with EU directives, as well as with directives regarding renewable energy resources and Biodiesel; </li></ul><ul><li>The production facilities have been already existed in all countries, except Macedonia, where the activities on first factory are in progress. </li></ul>
    21. 21. O THER COUNTRIES <ul><li>Renewable energy resources potentials in Serbia are significant and they could be used for centralized or decentralized (local, autonomous) production and application. Their research and use in our country started in ’70 s, after the Energetic Crisis, reaching the maximum of development at the end of ’80 s , when we became one of the leaders of biomass use in Europe. At that time, SFRJ had biogas production, driers on biogas and the early beginning of Biodiesel production. Further researches and applications were stopped by well-known events. Recently, the new progress in this field was obvious, particularly after adoption of National programme for energetic efficiency with its “Application of alternative and renewable energy resources”. The investment trends in Serbia slowly start, there are a lot of stories about biogas facilities, small hydroelectric power station, trash incinerators and the first large-scale Biodiesel production facilities is under construction, with annual capacity of 100,000 Mt. The Ministries of Energy, Science and Technology and Environment Protection support and receive warmly such projects. </li></ul>
    22. 22. SUMMARY - SERBIA <ul><li>All that has been done until now is not enough, yet. The National Programme was adopted, the Energetic Union Agreement was signed and the standards JUS EN 14214 and JUS En 590 were issued. The adoption and use of other EU directives, initiation of guarantied minimal tariff for energy produced from renewable energy resources and deliberation or reducing from taxes, custom fees and other payments during construction of facility and energy production could be the first real steps in creation of an attractive ambient for their intensive use. </li></ul>
    23. 23. General road map for implementation of Directive 2003/30/EC <ul><li>1. A comprehensive analysis of : </li></ul><ul><ul><li>realisable potentials and corresponding costs of biofuels for different time frames 2010, 2020 </li></ul></ul><ul><ul><li>Assessment of optimised biomass allocation between the sectors of RES-E, RES-H and RES-T </li></ul></ul><ul><ul><li>costs and benefits of different strategies for the Serbian economy </li></ul></ul><ul><li>2. Reach a well informed decision on a future target for biofuels until 2010 and 2020 – is the EU target of 5.75% until 2010 a reasonable target for Serbia? </li></ul><ul><li>3. Formation of an inter-ministerial steering group to clarify responsibilities and competences with respect to the legal framework </li></ul>
    24. 24. General road map for implementation of Directive 2003/30/EC <ul><li>4. Formulation and adoption of an incentive mechanism for biofuels </li></ul><ul><ul><li>Either a biofuel obligation on the mineral oil sector </li></ul></ul><ul><ul><li>Tax exemption on biofuels </li></ul></ul><ul><li>5. Appointment of an authority responsible for </li></ul><ul><ul><li>Monitoring of the amounts of biofuels consumed in the Serbian market </li></ul></ul><ul><ul><li>Formulation of fuel standards for blended biofuels with clear definition of the responsibilities for refineries </li></ul></ul><ul><ul><li>Enforcing quality control of blended fuels according to the fuel standards EN 228 and EN 590 – under the responsibility of the Ministry of Trade </li></ul></ul>* Either as annex to the energy law or as separate law
    25. 25. General road map for implementation of Directive 2003/30/EC <ul><ul><li>Introduction of a labeling system for fuels with more than 5% biofuel content </li></ul></ul><ul><ul><li>Implementing a mechanism to monitor the effect of the use of biofuels in diesel blends above 5 % by non-adapted vehicles and where appropriate, take measures to ensure compliance with the relevant Community legislation on emission standards. </li></ul></ul>
    26. 26. WE ARE GOING FURTHER ON...