Sweden, Spain urge doubling of EU ethanol cap in gasoline to 10%

Sweden, Spain urge doubling of EU ethanol cap in gasoline to 10%

London (Platts)--23Jun2005


Sweden and Spain are urging the European Commission to double the existing
maximum blending level for ethanol in European gasoline to 10% to allow member
states to meet the EU's target for the use of transport biofuels. In a joint
letter to the commission Wednesday, Swedish environment minister Lena
Sommestad and her Spanish counterpart Cristina Narbona Ruiz say the current
ethanol blending limit of 5% makes achieving the EU's target penetration
levels for biofuels "practically impossible." 

The EU's biofuels directive sets an indicative target for the sale of biofuels
in the region's fuel mix at 5.75% in 2010. The commission is currently in
ongoing consultations with the oil industry and other stake-holders over
revisions to EU's existing road fuel quality specifications. The commission
plans to propose a package of revisions to its existing fuel quality directive
by year-end.

"Ethanol is, at least in the short-term, the most cost-effective biofuel that
can be produced in sufficiently large quantities," the joint letter states.
"Ethanol blends result in reduced emissions of carbon monoxide, hydrocarbons,
particulate matter and certain known carcinogens." The ministers go on to say
that the use of ethanol blending of up to 10% in gasoline does not require
engine modifications. Bioethanol is produced from the fermentation of sugars
found in carbohydrate-rich crops like sugar beet and cereals. It can either be
blended directly into gasoline, as in Brazil, or converted into the octane
enhancer ETBE. 

In Europe, France, Spain and Holland all have bioethanol industries where the
end product is ETBE. Among the fuel specifications being reviewed by the
commission is the Reid Vapor Pressure of gasoline this year, as adding
bioethanol to gasoline can increase RVP levels, raising its potential to
create damaging ozone.

This story was originally published in Platts Petrochemical Alert
http://petrochemcialalert.platts.com

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