Sustainability of Biofuels in Germany - PowerPoint PPT Presentation

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Sustainability of Biofuels in Germany

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  1. Sustainability of Biofuels in Germany By: Clark Dolch, Jared Achen

  2. At First- Biofuels Great Idea Now- How Great are They? Introduction

  3. Started in 1991 • Expansion of the biofuel industry started in 1993 • Set aside program in Germany • Another big boost in biofuels was in 1999 • High price of diesel • Low price of vegetable oil History of Biofuels in germany

  4. Biodiesel Production

  5. Germany on of the first • Biofuel plants • Exempt from $ .47 a liter tax • Farmers • Paid a 45 euro/hectare subsidy • Roughly $27/acre Tax incentives

  6. June 2006 tax incentive was reexamined • Went to partial tax on pure biofuels • Partial blending did not receive tax breaks • Some mandatory blending • Dampened expansion of biofuel industry Tax Incentive

  7. Mandates Mandates stated below refer to percent based on energy content not on volume, the difference between the specific and the overall mandates can be filled with any approved biofuel to the liking of the trader. Mandates apply to everybody who sells fuels, not just gas stations. (USDA)

  8. Being exempt from taxes is what makes biofuel plants make a profit TAX MAKING BIOFUELS Profitable

  9. Government Subsidy • Subsidies do not help environment • Just wasting money? • Impact on environment • Decline greenhouse gas emissions? Environmental Issues

  10. Biofuel’s increase food & beer prices • Biofuel causes increase in food and beer prices • Barley fields transferred to biofuel production crops • Angered Germans and Bavarians

  11. Germany compared to america

  12. Biofuel industry not sustainable • Without exemptions there would be no industry • New criteria • If producers can prove their product helps the environment, it is sustainable because it does help the environment • Harder for producers to make a profit with the new criteria Conclusion