E.Europe biofuel producers face big challenges

Consumption of biofuels in eastern Europe is rising but local producers face growing external competition and also suffer a lack of government support, industry officials said on Thursday.

“I see rising consumption (of biofuels in eastern Europe). I think also the eastern European biofuel sector will have to cope with imports from… Brazil, Argentina, the United States,” said Claus Keller, commodity analyst at F.O.Licht.
“We expect a rise in production, but we also see a threat from imports and not all biofuel producers (will reach full capacity),” he said.

Keller, speaking on the sidelines of a conference in Warsaw on biofuels in central and eastern Europe, gave no figures.

Poland and other countries in the region want to encourage investment in biofuels to diversify energy sources from Russia, counter rising oil prices and boost farm incomes as well as to limit carbon emissions.

EU leaders agreed last year to increase the proportion of biofuels used in petrol- and diesel-consuming land transport to 10 percent by 2020.

Reuters