Breaking Europe’s Addiction to Oil

Brazil, European Union (EU), Funding/Financing/Investing, Green Jobs, Marketing/Market Forces and Sales, Nigeria, Opinions, Policy, Russia, Saudi Arabia, Sustainability, Ukraine

February 23, 2016

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by Anders Fogh Rasmussen and Peder Holk Nielsen (Novozymes) Former Secretary General of NATO Anders Fogh Rasmussen and Novozymes’ CEO take steps to highlight Europe’s problematic addiction to oil – and what can be done about it — … Europe is addicted to oil. We live in a fossil-fuel-driven economy, and we depend highly on unstable states to fuel it. Other regions have been in this situation before us, and have dealt with it. As things stand now, Europe is not dealing with it at all.

Energy security is vital for stability and prosperity in Europe – and advanced biofuels can help us get there. Advanced biofuels are produced from sustainable sources such as waste and agricultural residues. The technology is ready. Using it would be good for energy security, the environment, and for jobs in rural areas. But to use it, we need a clear and unambiguous EU policy.

The European Commission’s recent “State of the Energy Union” did not contain a serious attempt to wean Europe off imported oil and encourage large-scale investment in alternatives.

The Energy Union was inspired by the new, political reality facing the EU – with an assertive Russia, conflict in Ukraine and continued instability in the Middle East. This is very likely a reality that is here to stay.

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Clear political guidance has spurred investments in alternative fuel plants and biofuels have become a mainstream product in the United States. Renewable fuel mandates have helped to reduce foreign oil imports by 25% while saving the American consumer an average of €0.25 a litre. Advanced biofuels such as cellulosic ethanol from waste and residues represent reductions in lifecycle CO2 emissions of between 88% and 108%. Production is on the increase and although still a drop in the ocean of the country’s oil use, the direction is clear and – importantly – inspires the confidence of investors.

Brazil, too, provides a compelling example, having worked since the oil crises of the 1970s to reduce its reliance on imported energy. Today, Brazil is a net oil exporter and the world’s second-largest producer of bioethanol, which has replaced more than one-quarter of the gasoline once used in the country.

The contrast to Europe is stark. The EU remains overwhelmingly reliant on foreign oil: for each 100 litres consumed in the bloc, 90 litres are imported – and the situation will, according to the IEA, only get worse. EU member states spent a staggering €271 billion on imported oil in 2014 – more than the GDP of Denmark. The EU is heavily dependent on oil imports with around half coming from Russia, Saudi Arabia and Nigeria – making the European Union extremely vulnerable to unpredictable geopolitical tensions and conflicts.

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Stepping up production of advanced biofuels can supplement and gradually replace oil imports. Already by 2030, it could displace up to 16% of road transport fuel, according to the International Council on Clean Transportation (ICCT).

Today, the advanced biofuels are readily available. The technology is being demonstrated on a commercial scale on the European market. Advanced biofuels allow ample room for growth.

Of course, the advantages of a thriving advanced European biofuels industry extend far beyond energy security and politics. By 2020, the U.S. advanced biofuels market is expected to create hundreds of thousands of jobs in addition to the approximately 400,000 jobs already created. There is no reason Europe cannot repeat this economic success story. This will create an estimated 300,000 jobs, principally in rural areas and significantly lower greenhouse gas emissions from cars in Europe. READ MORE and MORE (Reuters)

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