RENEWABLE AND ALTERNATIVE FUELS

The European Union’s strategy for its energy transition to a zero-carbon economy in 2050 also includes the obligation of Member States to submit National Energy and Climate Plans (NECPs) to the European Commission.

The Greek NECP is a revision of the previous Plan prepared in 2019 with projections for 2030, and now covers the entire period, from now until 2050. It combines the objectives of the climate law, the objectives within the framework of the European Union policy (REPowerEU and Fit-for-55 in the context of the Green Deal) and the final European directives on RES, energy efficiency and others.  Through its ambitious goals, it aims to attract investment in clean technologies, infrastructure and innovations while focusing on combating energy poverty.

The strategy of the NECP is based, inter alia, on the following axes:

The target for renewables in the transport sector is set at 29% for 2030, significantly higher than in the previous NECP. Electromobility contributes to the achievement of the RES target in the transport sector in proportion to electricity production from RES, biofuels, and renewable fuels of non-biological origin. The oil industry has an essential role to play in achieving the targets and has already recently made significant investments both in the participation of biofuels in the motor fuel mix and in the production of cleaner gasolines and diesel, including the possibility of applying new technologies to clean engines and improve their operational efficiency.

Petroleum Marketing Companies are an important link in the new supply chain, which is called upon to ensure the smooth supply of the country with a mixture of conventional, alternative and renewable fuels.

Alternative fuels are LPG, Natural Gas, Hydrogen and Methanol – the latter two when it does not come from renewable sources.

Renewable fuels are conventional liquid biofuels (biodiesel and first generation bioethanol), advanced liquid biofuels (Biofuels from waste, paraffinic renewable fuels (BTL, HVO) and renewable fuels  of non-biological origin (RFNBO) (e-fuels such as e-methanol, waste/recycled carbon fuels), hydrogen and ammonia – the latter two when derived from renewable sources. 

LIQUIFIED PETROLEUΜ GAS (LPG)

LPG is produced during the extraction phase of natural gas and oil, but also from oil refining. LPG in its natural state is in gaseous form and is liquefied by increasing the pressure for its transportation, storage/management.

LPG is systematically included in the Alternative fuels in the European Union Directives, always aiming to improve air quality, due to its contribution to the reduction of greenhouse gas emissions and energy saving.

LPG is a legal and legitimate alternative fuel, promoted by the European Union with Directive 2003/30/EC of the European Parliament of 8 May 2003, with the dual objective of:

  1. meeting Europe’s energy needs and
  2. improving the quality of the environment.

NATURAL GAS

Natural Gas is a gaseous mixture of saturated hydrocarbons. It is extracted from underground cavities and is considered an ecological fuel due to its high calorific value, reduced environmental impact and efficient combustion. The main component of natural gas is methane, but significant quantities of other gases coexist in it.

Natural Gas is mainly used for electricity production to replace lignite, for heating homes, heat production in industries and for use in engines, either as Compressed Natural Gas (CNG), mainly in light and medium duty vehicles, or as Liquefied Natural Gas (LNG), mainly in heavy duty vehicles or for ship propulsion. The use of Natural Gas as a motor fuel requires significant investments in infrastructure, but international legislation on environmental protection and its adequacy – also due to the production of Shale Gas – lead to the examination of their development, in combination with other available or under development types of fuel. It is considered bridge fuel since it is gradually planned to be replaced with Biogas.

LOW CARBON FOOTPRINT FUELS

Low carbon footprint (or low-carbon) fuels refer to fuels that, when burned, provide thermal energy with fewer greenhouse gas emissions than fossil fuels. These fuels are sustainably produced from municipal or organic waste, sustainable biomass, renewable energy and recycled CO2.  They emit no or very little extra CO2 during their production and use.  They have a strategic role to play in the transition to a climate-neutral economy.

BIOFUELS

Biofuels are defined as fuels produced from renewable energy sources (mainly from energy crops, but also from other organic materials). Providing many advantages for the transport industry, these fuels can help reduce the carbon dioxide emissions of transport modes. Biofuels reduce dependence on oil in the transport sector, thus contributing to the security of energy supply. They also provide alternative sources of income to farmers in the European Union.

Biofuels fall into two main categories:

  1. Conventional liquid biofuels (biodiesel and first-generation bioethanol), for which the upper limit as a share of transport fuels remains at 1.7% throughout the energy transition.
  2. Advanced liquid biofuels (Biofuels from waste, paraffinic renewable fuels (BTL, HVO): The share of advanced biofuels will reach 2.4% of transport fuels by 2030 and 17% by 2040.

Conventional biofuels

The world’s most used biofuels, produced from agricultural crops, vegetable oils or food waste such as palm, soybean, rapeseed or sunflower oil.

Biodiesel

Biodiesel is the trade name of fatty acid methyl esters (FAME), produced mainly from oilseeds (sunflower, rapeseed, soybeans), as well as from animal fats or reused cooking oils. Biodiesel replaces fossil diesel as such or in mixtures.

Bioethanol

Sugary, cellulosic and starchy plants (wheat, corn, sorghum, beets, etc.) can be used as raw material for the production of Bioethanol. The main method of its production is the fermentation of starchy – sugary ingredients for the production of ethanol and its separation from the other ingredients by distillation. Bioethanol is either mixed as such with gasoline or first converted into an anti-knock additive (ETBE).

Advanced Biofuels

Characterization refers to alcohols from ligni-cellulosic compounds or biofuels produced from gasified biomass (Biomass to Liquid) or from the process of animal waste and cooking oil waste with very low CO2 emissions during the life cycle analysis of the fuel (HVO – hydrotreated vegetable oil). They are often referred to as second-generation biofuels.

RENEWABLE FUELS OF NON-BIOLOGICAL ORIGIN (RFNBOs)

The term Renewable Fuels of Non-Biological Origin is an umbrella term for all gaseous and liquid renewable fuels that are not based on biomass. The main technology for the production of RFNBO is the use of electrolysis powered by renewable electricity to produce hydrogen. This hydrogen can be combined e.g. with nitrogen to produce ammonia or with carbon to produce various synthetic hydrocarbons (e.g. e-methanol, e-kerosene, e-diesel and e-gasoline). They can also be produced by other methods from waste carbon, such as pyrolysis of plastic waste.

The main advantage of RFNBOs is that scaling them up will use much less land and water compared to biofuels. RFNBOs will target those sectors of the economy where direct electrification is not feasible. For the transport sector, their use is expected to spread to deep-sea maritime transport and aviation, due to their higher energy density compared to batteries.

Their share in EU transport fuels is projected to reach 1% by 2030 and 23% by 2040.

European Directive on the use of renewable energy sources (Renewable Energy Directive – RED).

In May 2003, the European Commission adopted Directive 2003/30/EC [EC, 2003] on the promotion of the use of biofuels or other renewable fuels for transport. The Directive set a specific minimum percentage of biofuels to replace diesel and gasoline, which has been in force since 2005. A standard has been established for biodiesel (EN 14214), while the diesel standard (EN 590) has been amended to allow blending. Similarly, a standard for Bioethanol (EN 15376) has been established, while the standard for Gasoline (EN 228) has been amended. There has been a rapid growth in the production and use of biofuels in the EU as a consequence of the Directive.

The support of biofuels and Renewable Energy Sources continued with the adoption by the European Commission Directives 28/2009 on renewable energy sources (Renewable Energy Directive) -which replaced Directive 30/2003- and 30/2009, which replaced 70/98 on fuel quality (Fuel Quality Directive). These Directives define sustainability criteria for biofuels, target rates for substitution of conventional fuels and corresponding reduction rates for greenhouse gases (GHG) emitted from fuels supplied in the EU.

The formation of the above legislative framework dictates the use of advanced biofuels. Directive 28/2009 stipulated that by 2020, 20% of energy consumed in the EU, but also 10% of energy consumption in transport – i.e. 10% of gasoline and diesel – should come from renewable energy sources.

Directive 30/2009 changes the specifications for diesel (EN590) so that a 7% biodiesel blend (B7) can be distributed and sets corresponding specifications for gasoline in terms of vapour pressure.

Directive 2018/2001 on the use of RES for the decade 2021-2030 provides for at least 14% of energy content from RES in transport in 2030 (from 10%). This includes, in addition to biofuels, recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin.

The Directive also provides for a gradually increasing use of second-generation biofuels and for 2030 at least 3.5%, and the possibility of double counting of second-generation biofuels as well as biofuels produced from cooking oil, which may not exceed 1.7%.

Given the need to accelerate the EU’s clean energy transition, the revised EU/2023/2413 Renewable Energy Directive entered into force on 20 November 2023. It sets an overall renewable energy target of at least 42.5% binding at EU level by 2030 – but with a target of 45%.

LEGAL FRAMEWORK IN GREECE FOR THE PROMOTION OF BIOFUELS

In Greece, a legal framework for biofuels has been established. Within this framework, Law 3054/2002 has been amended to cover biofuels, European standards have been adopted and Law 3423/2005 incorporated Directive 30/2003. At the same time, there is an annual program for the allocation of quantities of biodiesel, which Refineries and fuel importers are obliged to receive, mix with conventional diesel and forward to Petroleum Marketing Companies. Law 3653/2008 also adds Bioethanol in Law 3423/2005. Directives 28/2009 and 30/2009 were incorporated with an amendment to Law 3054/2002. From 1/1/2019 it became mandatory to blend bioethanol or bio ethers in gasoline. Regulation (EU) 2023/1805 of 13 September 2023 addressed the issue of the use of renewable and low-carbon fuels in maritime transport.

ELECTRIFICATION

Electromobility is also being promoted significantly to meet emission reduction targets. It is considered a particularly clean solution, since it does not emit pollutants in the already burdened cities, but also economical solution. The main obstacles to its development are the low range of electric vehicles, the long recharging time and the lack of public charging spaces. The technology is mainly driven by the development of batteries, so that electric vehicles can approach the performance of vehicles running on conventional fuels.

In Greece today there is a number of pure electric vehicles (EV), even though there is a clear trend to plug-in hybrid vehicles (PHEV) and mild-hybrid vehicles, due to their enhanced autonomy. In 2022, the total registrations of battery electric vehicles, including imports of used vehicles, even those that are not yet represented in our country, amount to 6353.  Total battery electric vehicles in Greece, in the period 2014 to 2022, amount 11925. The legislation provides incentives to boost electromobility, such as exemption from registration tax and reduced or zero road tax. With a target of one in three cars put on the market to be electric by 2030, in June 2020 the government presented a series of incentives for the purchase of electric and hybrid vehicles in both cars and taxis and buses.

The electric car can be charged in the private parking lots with a simple electrical installation. However, this charge is slow and requires 7 to 8 hours. For faster charging, a special installation (fast chargers) is required. Law 4277/2014 now allows the resale of electricity for charging electric cars, allowing the installation of non-domestic chargers and the development of charging networks. The charger facilities are hosted at gas stations, but also in private and public parking lots.

HYDROGEN

Renewable (green) hydrogen produced with renewable energy can contribute to decarbonisation in several sectors, including long-distance transport, chemicalproducts, and iron and steel, where it has proven difficult to reduce emissions. Hydrogen-powered vehicles will improve air quality and promote energy security. Hydrogen can also support the integration of renewables into the electricity system, as it is one of the few options for medium to long-term energy storage. In transport, it can be burned as such, consumed in fuel cells to produce electricity, or converted into other renewable fuels such as ammonium or methanol.

Alternative Fuel Infrastructure

Regulation (EU) 2023/1804 lays down mandatory national targets leading to the deployment of a sufficient number of alternative fuels infrastructure in the Union for road vehicles, trains, vessels and stationary aircraft and provides for common technical specifications and requirements on user information, data sharing and payment requirements for alternative fuels infrastructure.

Protection of the environment

Because environmental protection is one of the most critical problems of modern times, the Member Companies of SEEPE systematically and continuously try to apply methods and ways that will minimize the environmental impact of products and their operation.

Through a systematic approach, the Companies have managed to establish environmental sensitivity in all areas of activity, so that environmental concerns are taken seriously into account in every business decision and action.

Particular importance is given to environmental education, both of employees and associates, contractors, tanker truck drivers, etc. in order to make everyone aware that care for the natural environment is an integral element of business activities, but also a duty of everyone who participates in them.

Member companies of SEEPE participate, through the collaborations they have in this field with environmental organizations, known for their action in the fields of protection of wild fauna and flora of our country.

Moreover, the Companies, in addition to the continuous training of their staff and partners, for the immediate treatment and reduction of pollution in cases of accidents, have been equipped with all the necessary means to eliminate any impacts.

It is characteristic that the Companies have equipped all fuel installations, service stations and fuel transport and distribution tankers with vapor recovery systems (Stage I- and Stage II, where required), so that the total storage and transportation of fuels takes place in a closed circuit at all stages, in order to reduce risks and not to emit pollutants into the atmosphere.

The Member Companies of SEEPE have undertaken an obligation to reduce final energy consumption by participating as obligated parties in the Energy Efficiency Obligation Scheme, under Directive 2012/27/EU on Energy Efficiency. During the period 2017-2020, the Companies invested in behavioral and technical energy saving measures, undertaking approximately 60% of the total obligation of the schemes, resulting in energy savings of more than 4,500 GWh.

Law No. 4843/2021 incorporated the new Directive (EU) 2018/2002 on Energy Efficiency, which will cover the period 2021-2030. The new Directive establishes a national cumulative end-use energy savings target for the period from 1 January 2021 to 31 December 2030. The Energy Efficiency Obligation Scheme of Article 8 is imposed on objective criteria on obligated parties including energy distributors, retail energy sales companies, distributors of fuels used in transport and retail companies of fuels used in transport, operating in the Greek territory. The fulfilment of the obligation shall be achieved by the obligated parties through energy saving measures to final customers or through certified energy savings achieved by other parties.