Biofuels to follow coal into liquid market – E.ON

PRAGUE, Oct 20 (Reuters) – Biofuels will follow coal and eventually mature into a liquid market with risk management tools as its consumption rises, a senior E.ON (EONGn.DE: Quote, Profile, Research, Stock Buzz) Trading official said on Monday.

“Many people accept coal is in many ways following the oil markets. I remember in the 1980s as an oil trader, people saying ‘what are all these banks doing here? They don’t even know why sweet crude is called sweet’, but they soon saw the banks brought liquidity and developed the market,” said Edward Sigar, E.ON Trading Director for Coal, Biofuels and Freight.

Speaking at the Coaltrans annual conference in Prague, Sigar said biofuel consumption will more than double over the next decade and as it does the market will develop and biofuels will become more tradeable in a standardised way.

Reuters