Partner Article

Biofuels cap is 'too tight' - experts

Experts are warning a landmark Euro vote to limit the use of traditional biofuels will have an adverse impact on the industry.

MEPs supported a cap of 6 per cent for first-generation biofuels - the kind that Ensus produces - in transport fuel by 2020, down from the current 10 per cent target.

The news comes as Germany company CropEnergies plan a £50m upgrade of the Ensus plant at Wilton, Teesside, which employs 100 people but is currently offline.

The Renewable Energy Association (REA) says the new cap is too tight.

Head of renewable transport at REA Clare Wenner said: “Future investments are likely to remain on hold following the voting in Strasbourg, which introduces a whole new level of procedural complexity into the policy situation.

“As well as helping to fight climate change and reducing our dependence on animal feed imports, investment in UK biofuels generates skilled jobs and green growth in regions of previous industrial decline, such as Humberside and the North-east.

“The 6 per cent overall cap is too tight and the REA continues to oppose the introduction of ILUC [indirect land use change] factors until there is convincing scientific evidence that biofuels should be singled out in this way.”

The European renewable ethanol industry association, ePURE, said the vote had put the future of jobs and growth for the European ethanol industry under pressure.

The association’s Rob Vierhout said: “Decisions made by MEPs will also discourage the ambition of greening Europe’s transport system.

“It is disappointing to see that the European Parliament has decided to significantly reduce the market for conventional biofuels in Europe.

“At a time when we need to boost our economy it is difficult to see why MEPs agree to curtail jobs and investment in a sector that helps Europe to grow the production of clean and sustainable fuels.”

Fiona Hall, Lib Dem MEP for the North East, said the vote was necessary to prevent unlimited expansion of crop-based biofuels, which can conflict with food production.

She added: “Setting the cap at 6 per cent will give the industry a fair chance to adapt to policy changes, whilst a sub-target of 2.5 per cent will incentivise investments into advanced ‘second-generation’ biofuel.

“Different kinds of biofuel have different social and environmental impacts. Ensus, for example, is a highly efficient and sustainable plant. It will benefit from a separate 7.5 per cent target for bioethanol.”

This was posted in Bdaily's Members' News section by Martin Walker .