MARKET DEVELOPMENT
09-09-2002
European refining industry cautious of biofuel req
9/16/2002 (Oxy-Fuel News ) - Europe's plan to reduce carbon dioxide (CO2)emissions includes the increased use of biofuels, and that is somethingthe industry needs to remember, Peter Vis, principal administrator withthe climate change unit of the European Commission's environmental grouptold attendees at the Hart World Fuels Conference in Brussels. Butbiofuels aren't exactly a popular method of CO2 reduction among therefining industry, including Europe's number one industry voice, Europia."Europia's view is that biofuels have the potential to complement autofuels, providing that we remain within the [biofuels] directivespecifications,"said Europia Deputy Secretary General Valerie Callaud."The problem with biofuels is their cost."Biofuels enjoy neutrality of treatment among consumers because of taxationdirectives, but since the public pays for that cost anyway, "theircontribution is rather low compared to cost," Callaud said.What's more, the biofuels mandate is unfair because some European Unionmember states don't have enough crops to produce enough biofuel to blendsat 5.5%, as the biofuels directive calls for, she said. Some only haveenough to use 2.2% biofuel blends and will have to import for theremainder, Callaud noted. Therefore, "biofuels should not be mandated,"she said. Any biofuels mandate should be left up to individual memberstates, she stressed.However, Andrew Owens with Greenergy, pointed out that 'biofuels' don'tall come from the agricultural sector, noting that his company producesbiofuels from waste products.The point, to Owens, is: "Some [biofuels] are worthwhile, and some are,frankly, hopeless, but they should not all be discounted because of thehopelessness."We have to move away from this averaging mentality and that's where a lotof the arguments against biofuels fall down, because on average, they maybe bad, or they may be unacceptable, or they may be expensive, but thereare some gems there," he continued.
