Biodiesel - European Union

Pollution conscious and energy dependent European Union is a pioneer of the biofuel market; it has been developing biodiesel industry since 1990s. The members' drive to consume biofuels has only solidified after EU states ratified Kyoto protocol in which they agreed to reach a goal of using 5.75 percent of biodiesel and ethanol in all transportation fuel by 2010. To attain these levels of consumption, the EU members with Germany and France in the lead have adopted legislations to offer incentives for biodiesel production and sales. Since then crude oil prices have been skyrocketing, resulting in better environment for the biodiesel industry.

Early in 2007 Germany has started phasing out tax incentives signaling to the market that biodiesel industry becomes self sustainable. This is a great sign for producers as we are approaching a point when clean renewable biodiesel can compete on cost basis with polluting non-renewable diesel fuel.

While some member states like Germany and France have been directly involved in biodiesel production for quite a long time, recent entrants like Poland, Romania, Lithuania, Latvia, and Czech Republic have usually been perceived mainly as feedstock producing countries. However, now that they are part of the EU they will have to meet the same standards of the EU biofuels directive adopted in May 2003 and build their own capacities. We already see the positive trends toward achieving this goal.

SE Corp forecasts greatest increase in capacity and production in Poland and Romania as these two countries have sufficient territory and agricultural arm to support the expansion. We will act upon these developments.

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