French biodiesel production target unreachable, concludes Ministry of Agriculture

February 8, 2008

In France, researchers at the French Ministry of Agriculture said that a 10 percent biofuels target could only be achieved if wheat and sugar experts are eliminated to clear land for biofuel cultivation. The report also says that, while ethanol production can be covered by domestic French cultivation, maximum vegetable oil production for France is 3.1 MT, compared to the 4.3 MT required by 20125 to meet a 10 percent biodiesel target.

The French government is reportedly considering a reversal of its biofuels policy because of protests from environmental and food-related groups. The government is reported to have asked the French energy agency, ADEME, to review French policy in light of protests and advances in second-generation biofuels.

France had previously set a policy that 7 percent of all fuels must come from renewable sources by 2010, and 10 percent by 2015 — ahead of the requirements of new EU laws.

Last November, the French Government began withdrawing support for ethanol when it floated a plan to wind down ethanol subsidies. France had offered a lower tax on ethanol-blended fuel, which makes it competitive with gasoline.

In a related move, the European Union reduced subsidies late last year for biofuel crop cultivation after production reached the 2 million hectare threshold. Under the EU program, farmers may receive up to 45 euros per hectare devoted to biofuel cultivation, up to a total of 2 million acres, and 31.5 euros for additional hectares.

Despite the waning support from government, Ernst & Youngâ€™s Biofuels Country Attractiveness Indices for 2007 ranked France second for biodiesel and fourth for ethanol. Initiatives such as the Grenelle de lâ€™environment scheme, which sets a CO2 reduction goals, were credited with helping to create an attractive investment environment.

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Written by Jim Lane · Filed Under International, Policy, Producer News