Er, Did the EU Really Just Abandon Biofuels?
by Jim Lane (Biofuels Digest) As reported elsewhere in the Digest today and throughout this week, In Brussels, a draft proposal is under consideration in the EU to eliminate food-crop subsidies for biofuels production by 2020, and cap crop-based biofuels to 5 percent of EU transportation fuels
At present, biofuels represent 4.5% of the EU’s transportation fuel consumption, with essentially all of this coming from food crops – so, essentially, food crop-based fuels would be capped at not much above existing levels – not much room for growth. …
1. Will this proposal become law?
We believe this is a “yes”, but with modifications to carefully define crop-based feedstock. …
2. What is the impact on EU biofuels targets, pegged by statute at 10 percent by 2020?
The targets are law, and law as hard to unwind as it is to pass in the first place. We think the targets will not be altered – but, rather, we’ll see fuzzy math employed. …
3. What’s the impact for advanced biofuels, utilizing non-food feedstocks?
First of all, let’s refer to #2 – depends on the extent to which the EU doubles, triples, or quadruples the value of advanced biofuels – and the extent to which the EU will tolerate non-food feedstocks grown, for example, on the same land once used for food-crops. …
4. What’s the impact for food crops?
It’s not all bad – look for a shift from biofuels to higher-value biobased products and renewable chemicals, which are generally unsubsidized and un-mandated anyway, and offer good returns on investment for selected crops, such as maize.
5. What’s the impact for biofuels producers and their existing plants?
To the extent that they can support different feedstocks, such as renewable sugars made from waste, or waste-based fats, oils and greases, not much of a change. READ MORE and MORE (Biofuels Digest) and MORE (Agra-net)
