Renewable ethanol sector calls for EU support
© Photofusion/REX EU policy must be more supportive of the fledgling renewable ethanol sector, the industry’s trade association has said.
ePure used its first state of the industry report to call for long-term policies to boost investor confidence, binding targets for biofuel in transport and action to stop cheap imports flooding into Europe.
The EU is the third biggest ethanol producer in the world, with 8.8bn litres of capacity across 99 plants and a turnover just under €8bn (£6.39bn).
The report claims ethanol, mixed with petrol in cars and used in industrial manufacturing, is currently the most taxed fuel in the EU but could generate 1,500 new jobs for every 100m litres of capacity.
“Realising the potential of renewable ethanol will require a more supportive European Union policy framework; one that creates a level playing field and better nurtures the industry,” said ePure secretary-general Rob Vierhout.
“But this will only happen if we, the industry, and the broader stakeholder community that has an interest in our success, work together to transform the awareness and understanding of renewable ethanol in Europe.”
See also: Cheap US ethanol imports threaten EU industry
In 2013-14, 1.9m ha of EU land was used to grow crops for ethanol – about 0.7% of the agricultural area.
The industry used 7.83m tonnes of grain in 2013 and 1.5m tonnes of sugar.
About 3.7m tonnes of animal feed was also created as a byproduct of the production process.
ePure wants the EU to encourage investment in second generation ethanol production that uses farming waste like straw or crop stalks by setting stricter targets for the use of renewables fuels.
It also wants the European ethanol industry to be sheltered from global competition while it develops, having only launched in 2003.
Tariffs on imports from non-EU are in place but ePure complained earlier in this year that cheaper US ethanol was entering Europe duty-free via Norway.