The production and use of bio-fuel for Malta : a feasibility study

Abstract

Malta is very limited in terms of domestic energy sources having an absence of crude oil and petroleum. Malta must ensure the availability of oil stocks so as to safeguard energy supply. With decreasing oil supply and increasing oil prices, it may become too expensive to retain the present consumption. According to the Nathon report (2008), there are various alternative energies such as wind, solar, bio fuels and geothermal. Sustainable energy production is one major challenge currently being implemented in Malta. But this is mainly aimed at electricity production hence it will not replace oil consumption by the transport sector. From a study by The Malta Intelligent Energy Management Agency it emerged that Malta is dependent for 99.5% fossil fuel. This research provides a feasibility study on bio-fuel production and use for Malta for consumption within the transport sector in Malta, which mainly revolves around two options. The first option is an investment in a local bio-refinery plant to produce bio-fuel from biomass. The second option is an investment in Jatropha curcas plantations in Tunisia in order to produce bio-fuel for Malta. Both options will generate second generation bio-fuels. This will further increase the island’s possibility of reaching the EU 2020 targets in terms of reducing greenhouse gas emissions, raising energy consumption produced from renewable resources to 10% within the transport sector and improving energy efficiency. The purpose of this research is to assess the feasibility of both projects with two main objectives being that of investigating the issues involved in investing in bio-fuel production and that of putting forward recommendations to highlight sustainability and best practice. The study has shown that both projects are financially feasible. However, if the investment is done outside Malta, the country will be losing in terms of economic and technological factors. Furthermore, Malta is considered as more favourable since risk investments are lower than in Tunisia. Moreover, the end product is to be used locally. Whilst bio-diesel blending is an already practiced procedure in Malta, local bio-ethanol blending is non-existent due to lack of infrastructure. Consequently, the Jatropha curcas option scores higher than the biomass bio-refinery within the context of production for local consumption. However, technological blending solutions and shifting the national annex from Class A to Class B will put the bio-refinery option in parallel with the Jatropha curcas option within this same context. After conducting the research, it is believed that the biomass bio-refinery project will satisfy the need for production and use of bio-fuel in Malta.