Biofuels primed to grow after 12 years of development

PARIS, France, 2004-07-21 (Refocus Weekly)

Production of biofuels in Europe rose 26% last year, to 1.7 million tons of ethanol and biodiesel.

Biofuels have been in “a significant phase of industrial development for the last 12 years” as a result of programs launched at the end of the 1970s to ease pressure on oil prices, says EurObserv’ER in its ‘2004 Biofuels Barometer.’ The European Union is the principal region in the world to have developed a biodiesel sector, and production has increased substantially to reach a production level of 1,434,000 tons in 2003.

Biodiesel comprises 82% of the biofuel sector in Europe, with ethanol contributing another 309,500 tonnes. “Their success can be explained not only by the fact that they can be substituted for hydrocarbons, but also because of the environmental advantages offered by their consumption in the transportation sector,” the report explains.

Germany was the largest producer of biodiesel, at 715,000 tonnes in 2003, representing growth of 59% over 2002. France was next with 357,000 tonnes (2.5% reduction), Italy with 273,000 tonnes (up 30%), Denmark with 41,000 tonnes (the largest increase in the EU at 310%), Austria with 32,000 tonnes (28% increase), United Kingdom with 9,000 tonnes (200%), Spain with 6,000 tonnes and Sweden with 1,000 tonnes.

Ethanol is the biofuel that is most produced in the world, with a total of 18.3 million tonnes in 2003, with most coming from Brazil and the United States. In Europe, ethanol production last year amounted to 309,500 tonnes versus 317,300 in 2002, a decline of 2.5%.

Both the biodiesel and the ethanol sectors in Europe are oligopolies, the report explains, with the market controlled by large groups and big agricultural cooperatives of the sugar and alcohol industry.

“Even though the target of the ‘Campaign for Take Off’ was not reached (only 1.7 million tonnes versus the goal of 5 million) growth perspectives remain favourable,” it concludes. The European Biodiesel Board wants a “real political will and desire to develop biofuels in Europe” and the White Paper targets 18 million toe by 2010, but the report says current developments indicate that biofuel production will be 11 Mtoe in 2010.

“European efforts are going to have to be reinforced further in order to find the right growth rate if this target is going to be reached,” it adds. “The success of this objective
will require an optimal use of European fallow land zones” of 5.7 million hectares in 2003.

EurObserv’ER is a consortium of four European renewable energy groups in the European Union: Observ’ER, Eurec Agency, Eufores and O.Ö.Energiesparverband.


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