We are responsible to our customers
PKN ORLEN is prepared to implement the provisions of the Biofuels Act. However, we believe that the priority is to solve the question of quality standards for the fuels with bioadditives and the fuels' strict quality control.
The Biofuels Act, effective since January 1st 2004, is changing the Polish fuels market by requiring the producers to add to gasolines and Diesel fuels specific quantities of biocomponents. However, secondary legislation has not been enacted yet (e.g. there is no directive on the bioadditives quality standards and quality control), which is a source of concern for both fuel producers and customers. The lack of the necessary regulations and the resulting absence of any controls may lead to a situation where fuels of dubitable quality are traded with no major consequences to those involved.
From the very outset of work on the Biofuels Act began, PKN ORLEN carefully looked at the proposed regulations and analysed the proposed solutions in terms of their feasibility, always using its own experience and the experience of other European countries.
PKN ORLEN produced first batches of fuel with bioadditives at its Plock refinery in 1990s, when ethanol was added to gasoline with a view to eliminating lead. In March 2001, the Pock plant began to blend in bioadditives on a regular basis. PKN ORLEN used then a safer variety of additives, namely ether produced on the basis of bioethanol. The entire programme was monitored by the ORLEN laboratories. Our experience demonstrates that the process of introducing biocomponents into fuel production should be gradual, closely monitored and carried out using state-of-the-art technology. At the time when the Biofuels Act came into force, PKN ORLEN was adding about 5% of ether to approximately 60% of the gasolines it produced.
According to the Act, the biocomponent to be added to gasoline may be either bioethanol, obtained in the process of dehydration of raw spirit, or ethyl tert-butyl ether (ETBE). ETBE is an additive made from bioethanol but free of its faults (it can be transported by pipelines). It is broadly used as an additive to gasolines in Europe, i.e. in Spain or France, where it is contained in gasolines at the average amount of ca. 0.7%. ETBE has been proven in laboratory research to be the best oxygen component on the basis of ethyl alcohol, safe for gasoline engines; it is also preferred by car producers. However, the current legal regulations, in particular the Directive of the Minister of Finance on excise tax, dated December 23rd 2003, clearly favours ethanol despite all the qualities of ETBE. Coupled with a lack of directive regulating quality requirements and the methodology of research on biocomponents, this seems dangerous for the fuel market and potentially detrimental to car engines.
The biocomponent added to Diesel fuel will be methyl ester of higher fatty acids, obtained in processing of oilseed rape. The minimum amount of esters required under the Directive of the Council of Ministers in the fourth quarter of 2004 will be 0.11%. However, no professional plant for the production of this ester, compliant with the European standard EN 14214, has been created thus far. The plant in Rafineria Trzebinia, to start operation in early October this year, will probably be the first such operation in Poland.
According to Robert Gmyrek, Head of PKN ORLEN's Biofuels Office, to ensure an optimum quality of biodiesel an organisation should be established that would issue quality certificates and monitor the product quality, similar to the German AGQM.
PKN ORLEN has already begun quality research testing methyl esters under working conditions, in cooperation with the municipal public transport company in Kielce. Fourteen buses, running on special fuel since November 2003, have been used in the tests: 10 vehicles fuelled with the test fuel (diesel fuel + esters), two - with pure methyl ester and two - with diesel fuel only). The tests have confirmed the fears that in low temperatures pure esters do not maintain specific technical parameters; as a result ignition becomes impossible and the vehicles are immobilised.
As for the implementation of the provisions of the Biofuels Act, a material challenge to PKN ORLEN arises from the need to ensure sufficient volumes of biocomponents supplies, to satisfy the requirements of the Biofuels Act and of the European Directive 2003/30/EC, whereby by 2005 biofuels are to represent 3.2% of all the fuels sold in Poland. For this reason, PKN ORLEN has commenced the construction of the biodiesel production plant at Rafineria Trzebinia and is considering an equity participation in a bioethanol production venture that would ensure stable long-term supplies.
Press Office
PKN ORLEN SA
