Cropenergies acquires Ryssen Alcool from Sudzucker; will expand French ethanol production

In France, Cropenergies announced the purchase of Ryssen Alcools and said that it would increase ethanol production by nearly 30 Mgy in France. The company said that it will produce a total of 185 Mgy in 2008/09.

France background

The European Bioethanol Fuel Association reported earlier this year that ethanol production in the EU rose 11 percent in 2007 to 468 million gallons. The increase follows 70 percent growth rates the previous two years.

Output in France grew 97 percent to 152 Mgy, Germany was down 9 percent to 104 Mgy, while Sweden production dropped 50 percent to 19 Mgy. Overall consumption for 2007 was reported at 714 Mgy.

However, 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

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