Biofuels have been discussed in the Vistula region for over two decades, and the impetus for their development is provided by the EU's climate policy. The growing share of biocomponents is primarily intended to green the transport sector, the full electrification of which is difficult to achieve. The National Indicative Target adopted in this year's amendment to the Biofuels Act, i.e. the minimum share of renewable energy in transport, is 9.2% in 2025 and will increase to 14.9% in five years. The current version of the Renewable Energy Directive sets us even higher goals in this area, which for 2030 gives Member States a choice between at least 29 percent share of renewable energy sources in final energy consumption in transport or reduction of greenhouse gas emissions in this sector by at least 14.5%. Separate goals were adopted, among others, for the so-called advanced biofuels (produced from non-food raw materials).
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Fuel with the same properties
Data from the National Support Center for Agriculture from March this year show 19 registered producers of biocomponentswho in 2024 produced approx. 1.01 million tons of methyl esterswhich are the main component of biodiesel (4% more than a year earlier), approx. 0.43 million tons of bioethanol (the year-on-year increase was 26 percent) and less 9.5 thousand tons of liquid biocarbons. Their production used, among others, vegetable oils and animal fats, including used cooking oils, corn, starch residues from wheat processing and beet molasses.
From an environmental point of view, the possibility of waste management is one of the key advantages of biofuels. – Biofuels use the energy potential of plant waste with appropriate calorific value. In the case of bio LPG, the possible effect is a reduction of CO2 emissions compared to fuel of fossil origin by up to 90% in the best cases, with the base level of approximately 80%. – says Mateusz Kędzierski, manager for regulations and external relations at Gaspol, which since last year has been the first entity in Poland to offer bio LPG gas to its customers.
Using the example of his own product, Kędzierski illustrates the specificity of liquid biofuels, which can replace fuels produced from oil or gas. — Bio LPG has the same physicochemical composition as liquid mine gas – it can be transported in the same ships and vehicles, stored in the same warehouses and used in the same boilers. Biopropane, i.e. bio LPG, works in the same way as its fossil counterpart in terms of energy efficiency and the amount of energy produced. Its use does not affect the life of installations such as boilers. Moving away from fossil fuels can therefore be relatively easy without the need for additional large investments in new infrastructure – he explains.
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Biopropane for heating
Bio LPG sold by Gaspol is produced in large refineries, and its main recipients are currently business customers. – Our clients come from various industries. These include, among others: HoReCa, where bio LPG is useful for heating purposes, but also industry, including one cement plant and a car roof rack factory. There, too, liquid gas of biological origin can be used to produce heat. As we develop, we want to expand the scope of our activities and enter new segments, says Kędzierski, emphasizing that the first year of commercial availability of bio LPG should be treated as “the stage of familiarizing the market with the product”.
In addition to its “pure”, 100% version, Gaspol also sells mixtures. – Since liquid biopropane has the same physicochemical properties regardless of the method of production, the fuel produced from plant waste can be combined with that produced by refining oil or natural gas. Customers can therefore buy mixtures where bio LPG constitutes, for example, 45%. whole. This or even a smaller share translates into lower emissions – points out our interlocutor.
Emissions will also become increasingly important for fuel-consuming smaller service and industrial companies which, like households, are to be covered by the ETS2 system. The use of biofuels can reduce the carbon footprint and therefore the costs of necessary permits. — Bio LPG should be an interesting proposition also for households that rely on individual heat sources; due to the imposition of fees on fossil fuels, it will become competitive in price. Potential reduction of CO2 emissions by 80%. can reduce emission costs by up to approx. 4/5 – this is important for business and households – argues Mateusz Kędzierski.
Subsidies instead of penalties?
According to a report by the international consulting company Kearney, biofuels, especially hydrotreated vegetable oil HVO, can play an important role in the decarbonization of heavy transport. The sector is responsible for 70 percent. fuel consumption in Poland, and its electrification is slower and more difficult than in passenger transport. However, in an interview with our editorial office, Michał Krawczyk, director in the Warsaw office of Kearney and leader of the energy practice, points out that the development of the Vistula biofuels market encounters limitations.
– We see them on both the demand and supply sides. The average consumer, but also a significant part of the transport industry, has limited awareness of the possibility of powering diesel engines with biofuels. In terms of production capacity, Poland lags behind Western Europe. Although Orlen is currently building an installation for the production of HVO, it is not expected to be ready until next year. Its production will amount to 300,000. tons per year, which is relatively little – says the expert.
He adds that the scale of import is also small – “de facto the only” company importing hydrorefined vegetable oil from abroad is Unimot. — Biofuels are still simply more expensive than emission-intensive fossil fuels. Their share in the total energy consumption in transport is therefore still marginal, notes Krawczyk.
In the opinion of our interlocutor, actual market stimulation can only be achieved by changing the prevailing rules of the game. — WITHFor biofuels to replace diesel – not only in heavy transport, but to some extent also in older passenger cars – they must first of all be affordable. However, this will not happen if regulations operate mainly on the basis of penalties – says. As he explains, the RED III directive on renewable energy sources, which has not yet been implemented in Poland, is intended to impose financial sanctions on fuel producers who do not meet the requirements regarding the growing share of renewable energy sources in their products.
— It's a vicious circle. Today, the refining industry must invest huge resources in the production of biofuels. Therefore, it needs subsidies and public aid, not penalizing the failure to achieve goals that it cannot achieve because it is unable to provide affordable renewable fuels – argues Michał Krawczyk
The introduction of the ETS2 system may increase the availability of biofuels – traditional fuels will be subject to increasing emission fees. Representative Kearney, however, warns against the associated costs that sellers will pass on to consumers. — Prices will inevitably rise. Additional burdens imposed on European fuels, which are already quite expensive on a global scale, do not seem to be an optimal mechanism for the economically competitive decarbonization of transport and economies in general, he reasons. He also reminds that the transport, forwarding and logistics industry is responsible for approximately 7%. Polish GDP.
