Biodiesel in Finland
Tommi Väisänen 283505
Edited: Tuomas Mauno
Biodiesel is a fuel which is made from organic biomass. Biodiesel is typically made by chemically reacting lipids like vegetable oil, soybean oil, animal fat with an alcohol producing fatty acid esters (Bioste). Other sources can be like wood-based biomass, organic waste and seaweed. There are many kinds of biodiesel depending about the company who manufacture it and from which raw material they are using. Some of the biodiesels can be used on it's own (as 100 %) and some of them can be mixed up with the regular diesel. In Finland UPM and Neste are producing biodiesel and Neste is the world’s biggest biodiesel producer. In 2015 Neste produced 2,267 million tons of biodiesel (Kauppalehti 2016). Neste uses over ten different raw material when producing renewable diesel (Cleantech Finland 2015). Neste is owned by Finnish government.
In Finland bio-economies goal is to increase the use of renewable materials up to 50% in the producing of fuel by 2030 (Report from VTT&VATT 2015). Business Finland (before it was Tekes) is owned by Finnish government and it supports also researchers from universities, but it supports companies research and development. From beginning of 2000 Tekes has been supported Finnish biodiesel production development with over ten million euros (Yle 2015).
Description of the market and policy
At the moment, markets want more biodiesel than before. EU’s goal to biofuels is 10 % market share and in Finland that is 20 % from market share (Bioenergia). Same time Finnish government goals are giving up using coal and halve the import of oil (Työ- ja elinkeinoministeriö).
Figure 1. Share of diesel cars from whole car situation in Finland (Autoalan tiedotuskeskus).
In figure 1 is share of diesel cars from whole car situation in Finland. It tells that first-time registration of cars are decreasing but second-hand cars which imports from abroad are increasing and so share of diesel cars are increasing smoothly. In Finland car field regenerate very slowly so we need diesel for a long time. Also, Finnish government is using CO2-emissions based taxation. The lower your CO2-emissions are in your car, the lower is amount of taxes what you must pay it. According to Veronmaksajat.fi, 2020 the taxes will come lower than in 2019 in cars where CO2-emissions are lower than 200 g/km. So, it seems that Finnish government is supporting everything what reduces CO2-emissions.
Neste is marketing their Neste MY renewable diesel with -90 % lower greenhouse emissions, it fits in every diesel car and it is price is 0.19 € more expensive than regular diesel (Neste).
So far, Finnish government has been quite eager follower about EU’s regulations and many times Finnish governments has set more strict and ambitious goals for Finnish people. Like I said before, EU’s goal to biofuels is 10 % market share and in Finland that is 20 % from market share (Bioenergia). Till 2030 there are too many X-factors for an accurate prediction about comes traffic costs. The most important X-factors are price of oil, price of biofuels raw materials and their price development, price development of electric cars, development of energy consumption and taxation and pricing of CO2-emissions (Report from VTT&VATT 2015).
In my opinion, Finland needs private cars. It can’t get rid of them because we have quite long country and we still have people in countryside. Beside that, many cases Finnish public transportation companies cannot afford to have extensive public transportation net so in many cases people just need private cars. Other fact is that Finnish car field regenerate very slowly and if we want to achieve goals what Finnish government has set us, we need more biofuels. How that will happen? How we can ensure that people are buying biofuels like biodiesel? Maybe by advertising how good biofuels are for nature and against global warming but the most important thing what hits people is money. With right taxation and pricing people will use more biofuels.
Autoalan tiedotuskeskus. Saatavissa: http://www.aut.fi/tilastot/autokannan_kehitys/dieselautojen_osuus_henkiloautojen_ensirekisteroinneista_ja_henkiloautokannasta [Viitattu 23.1.2019]
Bioenergia. Saatavissa: http://www.bioenergia.fi/default.asp?sivuId=30308 [Viitattu 23.1.2019]
Bioste. Saatavissa: http://bioste.fi/bioenergia/biodiesel/ [Viitattu 23.1.2019]
CleantechFinlanf. Saatavissa: http://www.cleantechfinland.com/-/neste-now-world-s-largest-producer-of-renewable-fuels-from-waste-and-residues [Viitattu 23.1.2019]
Neste. Saatavissa: https://www.neste.fi/artikkeli/neste-my-uusiutuva-dieseltm-sinun-panoksesi-ilmastotalkoisiin [Viitattu 23.1.2019]
Työ- ja elinkeinoministeriö. Saatavissa: https://tem.fi/energia-ja-ilmastotavoitteet [Viitattu 23.1.2019]
Uusisuomi. Saatavissa: https://www.uusisuomi.fi/raha/187713-neste-puhuu-jo-lapimurrosta-tuleeko-uuden-suomi-hitin-raja-vastaan-liian-pian [Viitattu 23.1.2019]
Veronmaksajat. Saatavissa: https://www.veronmaksajat.fi/Asunto-ja-auto/Ajoneuvovero/ [Viitattu 23.1.2019]
VTT&VATT yhdessä tekemä tutkimus. Saatavissa: http://www.transsmart.fi/files/430/Tieliikenteen_40_hiilidioksidipaastojen_vahentaminen_vuoteen_2030_Vuoden_2016_paivitys_VTT-R-00741-17.pdf [Viitattu 23.1.2019]
YLE. Saatavissa: https://yle.fi/uutiset/3-7974300 [Viitattu 23.1.2019]