Biofuel in Sweden

Sweden has achieved the largest E85 flexible-fuel vehicle fleet in Europe, with a sharp growth from 717 vehicles in 2001 to 116,695 by July 2008.cite web | url=http://www.ethanolproducer.com/article.jsp?article_id=4463 | title=FFVs flourish in Sweden | author=Eric Kroh | publisher=Ethanol Producer Magazine | date=August 2008 | accessdate=2008-08-22 |language= ] cite web | url= http://www.baff.info/english/ | title= Bought ethanol cars | author=BAFF | publisher= BioAlcohol Fuel Foundation | date= | accessdate=2008-08-22 |language= ] The recent and accelerated growth of the Swedish fleet of E85 flexifuel vehicles is the result of the National Climate Policy in Global Cooperation Bill passed in 2005, which not only ratified the Kyoto Protocol but also sought to meet the 2003 EU Biofuels Directive regarding targets for use of biofuels, and also let to the 2006 government's commitment to eliminate oil imports by 2020,cite web | url=http://www.iadb.org/biofuels/ | title=A Blueprint for Green Energy in the Americas | author=Garten Rothkopf | publisher= Inter-American Development Bank | date=2007 | accessdate=2008-08-22 |language= "See sections or chapters on Brazil (Chp 1), the US (3.3), Europe (Chp 4), and Sweden (4.11)"] with the support of BIL Sweden, the national association for the automobile industry.

In order to achieve these goals several government incentives were implemented. Biofuels were exempted of both, the CO₂ and energy taxes until 2009, resulting in a 30% price reduction at the pump of E85 fuel over gasoline and 40% for biodiesel. Furthermore, other demand side incentives for flexifuel vehicle owners include a USD 1,800 bonus to buyers of FFVs, exemption from the Stockholm congestion tax, up to 20% discount on auto insurance, free parking spaces in most of the largest cities, ower annual registration taxes, and a 20% tax reduction for flexifuel company cars. Also, a part of the program, the Swedish Government ruled that 25% of their vehicle purchases (excluding police, fire and ambulance vehicles) must be alternative fuel vehicles.cite web | url=http://www.ford.co.uk/ns7/environment/environment/env_euro_projects/-/-/-/- | title= Projects across Europe: The Swedish example | author=Ford U.K | publisher= Ford Motor Company | date=2008 | accessdate=2008-08-22 |language= ] By the first months of 2008, this package of incentives resulted in sales of flexible-fuel cars representing 25% of new car sales.

On the supply side, since 2005 the gasoline fulling stations selling more than 3 million liters of fuel a year are required to sell at least one type of biofuel, resulting in more than 1,200 gas stations selling E85 by August 2008. Despite all the sharp growth of E85 flexifuel cars, by 2007 they represented just 2% of the 4 million Swedish vehicle fleet.cite web | url=http://www.ethanol-producer.com/article.jsp?article_id=3935 | title=Ethanol use increases in Sweden | author=Brian Warshaw | publisher=Ethanol Producer Magazine | date=April 2008 | accessdate=2008-08-22 |language= ] In addition, this law also mandated all new filling stations to offer alternative fuels, and stations with an annual volume of more than 1 million liters are required to have an alternative fuel pump by 31 December 2009. Therefore, the number of E85 pumps is expected to reach by 2009 nearly 60% of Sweden’s 4,000 filling stations.

History

Flexible-fuel vehicles were introduced in Sweden as a demonstration test in 1994, when three Ford Taurus were imported to show the technology existed. Because of the existing interest, a project was started in 1995 with 50 Ford Taurus E85 flexifuel in different parts of Sweden: Umea, Örnsköldsvik, Härnösand, Stockholm, Karlstad, Linköping, and Växjö. Between 1997 to 1998 an additional 300 Taurus were imported, and the number of E85 fueling grew to 40. [Cite web| url=http://www.baff.info/english/vehicles_FFV_cars.cfm | author=BAFF | publisher= BioAlcohol Fuel Foundation |title= FFV-Vehicles: Environmental class 1 | date= | accessdate=2008-08-14 | language= ] Then in 1998 the city of Stockholm placed an order for 2,000 of FFVs for any car manufacturer willing to produce them. The objective was to jump-start the FFV industry in Sweden. The two domestic car makers Volvo Group and Saab AB refused to participate arguing there were not in place any ethanol filling stations. However, Ford Motor Company took the offer and began importing the flexifuel version of its Focus model, delivering the first cars in 2001, and selling more than 15,000 FFV Focus by 2005, then representing an 80% market share of the flexifuel market. In 2005 both Volvo and Saab introduced to the Sweden market their flexifuel models.

Current situation

Most ethanol fuel in Sweden is imported, mainly from Italy and Brazil. During 2004 the government passed a law that said all bigger Swedish fuel stations were required to provide an alternative fuel option. From 2009 all small gas stations, that sell more than 1 000 000 L per year, have to provide this as well. The lower cost of building a station for ethanol compared with a station for petroleum makes it very common to see gas stations that sell ethanol.

One fifth of cars in Stockholm can run on alternative fuels, mostly ethanol fuel. [http://www.progressive.org/mag_johansen0707 Scandinavia Gets Serious on Global Warming] , "The Progressive", July 2007.] As of December 2007, carmakers that offer ethanol-powered vehicles in Sweden are SAAB, Volvo, VW, Koenigsegg, Skoda, Seat, Citroen, Peugeot, Renault and Ford.Fact|date=October 2008

Stockholm will introduce a fleet of Swedish-made hybrid electric buses in its public transport system on a trial basis in 2008. These buses will use ethanol-powered internal combustion engines and electric motors.

ee also

* Flexible-fuel vehicle
* Wind power in Sweden
*List of renewable energy topics by country
* [http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTWDRS/EXTWDR2008/0,,contentMDK:21501336~pagePK:64167689~piPK:64167673~theSitePK:2795143,00.html World Bank, Biofuels: The Promise and the Risks. World Development Report 2008: Agriculture for Development]

References