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Sep 13, 2011

BIOFUEL DEBATE WORLDWIDE * USA - Supply issues could cripple biofuel use

Report: Only government regulations mandating the use of biofuels such as ethanol and biodiesel are going to spur demand in the near future

(Photo: Biodiesel tanks SM)
Houston,TX,USA -Fleet Owner, by Sean Kilcarr -Sep 12, 2011: -- A new report by global consulting firm Hart Energy finds that only government regulations mandating the use of biofuels such as ethanol and biodiesel are going to spur demand in the near future, as both fuels remain far costlier than their petroleum-derived opponents... That eventually means not enough supply may be available by the end of the decade to meet the amount of biofuel required to meet government mandates – especially in biodiesel’s case...   “There’s really no economic factor in the foreseeable future that will encourage biofuel production beyond the minimum needed to meet mandates,” Paul Niznik, Hart’s biofuels manager, told Fleet Owner, “The only things that might change this would be an increase in tax credits to $2 or $3/gal. – not likely in this political climate – or a technological change that lowers the cost of producing biofuel. But any such technological change is at least 10 years off in the future” ...


* Europe - EU biofuels legislation may be delayed


 Brussels,Belgium -gain.fas.usda.gov (Washington,DC,USA) -September 12, 2011: --   The EU’s energy and climate change commissioners, Günther Öttinger and Connie Hedegaard, were reported by Reuters on 9 September to have agreed on 13 July to delay by up to seven years rules...  The Renewable Energy Directive (RED), published on April 23, 2009, because they must be transposed into national legislation by December 5, 2010. Still most of the EU Membe States will not be able to meet the deadline...  The RED requires the EU to have:
 • A 20 percent reduction in green house gas (GHG) emissions by 2020 compared to 1990.
A 20 percent improvement in energy efficiency compared to forecasts for 2020.
A 20 percent share for renewable energy in the EU total energy mix. Part of this 20 percent share is a 10 percent minimum target for renewable energy consumed in transport to be achieved by all MS...  The goal for 20 percent renewable energy in total energy consumption is an overall EU goal...  There are currently three ways for a biofuel to get certification: Voluntary Certification schemes, Member State Competent authority criteria, or bilateral agreements between the EU and third countries...  There are important differences in how MS are approach transposition. Germany is the one that progressed the most, while some of the countries are just starting the process. What is clear is that most MS do not have a plan in place if the Commission act based on MS non-compliance...

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