Biofuels Won't Fix Energy Proglems: Europia

Diesel Fuel News, Nov 26, 2001 by Jack Peckham

The European Commission's proposed 5.75% substitution of gasoline and diesel with "biofuels" by 2010 won't solve Europe's shortage of diesel fuel and would fail to deliver a net environmental improvement, according to Europia, the oil trade association.

"Biofuels are not cost-competitive and application should not be mandated," Europia says in a position paper.

"The substitution of [oil] imports by locally-produced biofuels would be marginal, a few percent at best," the refiner group points out. "The overall energy balance of biofuels means that increases in the volume of biofuels would not produce a proportional decrease in volumes of petroleum products for transportation.

"Also, with potentially cheaper supplies of the raw materials for biofuel production, particularly of ethanol, outside of Europe, a portion of the biofuel market could well be met by imports which could receive EU tax support." This is ironic given Europe's growing surplus of gasoline, much of which is exported to the U.S.

--Dubious [CO.sub.2] Claims

"Biofuel" net [CO.sub.2] benefits are likewise disputed by Europe's "green" groups as well as Germany's UBA (equivalent to U.S. EPA). What's more, "the cost of [CO.sub.2] avoidance through the use of biofuels is recognized by the Commission as being high and well above the range of cost-effectiveness of measures to meet the EU commitment during the first Kyoto period," Europia points out.

Even if these obstacles somehow were overcome, other costs would have to be borne for bio-fuels blending and distribution, along with further studies on engine/vehicle impact, the trade group said.