EU bioethanol production slump

BIOETHANOL production slumped in the EU last year as high feedstock prices forced buyers to look outside of Europe for their fuel.

Production increased by 11 per cent in 2007 compared to growth rates of over 70 per cent in both previous years.

France is the biggest EU producer, outstripping UK production 30 times over but high commodity prices have forced fuel companies to source more renewables from third countries.

The slowdown rubs against new European regulation that obligates member states to add 5 per cent renewable fuel to all transport fuel by 2010.

A spike of imports from third countries has prompted a call from the European Environment Agency to scrap EU plans to increase the renewable target to 10 per cent by 2020.

The Agency, who act as an advisory to the European Commission, recommend a comprehensive review of the risks and benefits of biofuels, before higher targets are set in place.

“The 10 per cent target will require large amounts of additional imports of biofuels. The accelerated destruction of rain forests due to increasing biofuel production can already be witnessed in some developing countries. Sustainable production outside Europe is difficult to achieve and to monitor,” said the Agency.

The Commission’s own Joint Research Centre has joined the EEA in its criticism of the 10 per cent target: “The costs will almost certainly outweigh the benefits,” said the JRC.

European Parliament members in charge of fuel and renewable energy proposals have further ramped up the pressure in a letter that asks Commission president Jose Manuel Barroso to reconsider the 10 per cent proposals.