EU Non-Food Biofuels Target Needs New Investment -Shell Unit
(Reuters) * EU shift away from food-based biofuels will need big investment
* EU will need millions of tonnes of non-food biofuels to meet targets
* Investment incentives currently not enough
Large new investment incentives will be needed to promote the development of alternative biofuels after the European Union’s move to curb the use of fuel derived from food crops, a unit of Royal Dutch Shell Plc said on Tuesday.
…In a biofuels study presented on Tuesday, Deutsche Shell said companies would need help with the costs of developing and producing new second-generation biofuels to meet that goal.
“Existing incentives are currently not sufficient to simulate the extensive and strategic new investment for the large-scale technical introduction of second-generation biofuels,” Deutsche Shell said.
…The EU’s new proposals, however, envisage the remaining 5 percent of biofuel output to reach the 2020 target will come from biofuels derived from waste products, grasses, the inedible parts of plants or a range of other non-food feedstocks including algae.
“There will be possibilities to increase the use of second-generation fuels, however these targets are ambitious,” said Joerg Adolf, chief economist of Deutsche Shell. READ MORE