Biofuel production increases 26% in Europe

PARIS, France, June 22, 2005 (Refocus Weekly)

Production of biofuel in the European Union reached 2.4 million tons last year, up 26% over the 1.9 million tons produced in 2003.

Growth prospects for this year are “even more optimistic” with the first EU directive imposing a minimum of 2% biofuels by the end of 2005, according to the latest biofuel barometer prepared by Observ’ER, but it is likely that the target of 5.75% from biofuels in the transportation sector by 2010 will not be achieved if current trends continue. The Joint Research Centre of the European Commission estimates the biofuel consumption necessary to meet the directive at 5.9 million tons of oil equivalent (Mtoe) in 2005 and 18.2 Mtoe in 2010 (very near to the White Paper objectives), but the paper estimates biofuel production at 2.8 Mtoe in 2005 and 9.4 Mtoe in 2010.

“Nevertheless, the situation can evolve very rapidly,” and the implementation of biofuel sectors in EU countries can make it possible for Europe to reach its objectives. “The potential is there and exists, the biofuel industry is ready and able, and the rest is a question of political will,” it concludes.

Bioethanol is obtained from distilling the sugar extracted from beets or cereals such as wheat, barley or corn, while biodiesel is produced from oleaginous plants such as canola or sunflowers. Biodiesel represents the biggest share of biofuels produced in the EU, with 80% market share and biodiesel providing the balance of 491,040 tons. Other biofuels such as biogas, vegetal oils, bio-methanol, bio-MTBE, synthetic fuels and bio-hydrogen have been “only little developed or not yet developed,” it notes.

The EU is the world’s leading region in terms of development of a biodiesel with eleven producer countries, and the rise of the fuel’s importance over the past decade accelerated last year with production at 2 million tons compared with 1.5 million tons in 2003. Production is still “far below current production capacities” which the European Biodiesel Board estimates at 2.4 million tons.

“The direct admission of ethanol in petrol is also indispensable for the development of biofuels in Europe, since ETBE production is limited by the production of isobutylene which is supplied by the oil industry,” the report notes. “The political will of numerous other member countries to respect the biofuels directive is not well defined as yet.”

In March, the European Commission gave notice to nine member states which had not communicated their objectives concerning 2005 market share, as provided by legislation.

The biofuels barometer was prepared under the EurObserv’ER project which involves Observ’ER, Eurec Agency, Erec, Jozef Stefan Institute, Eufores and Systèmes Solaires, with the financial support of the Ademe and DG Tren.

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