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Today in Biofuels Opinion: “Debt markets remain closed and skeptical of new technologies”

July 11, 2008

Robert Vierhout, Secretary-General, Eurpean Bioethanol Fuel Association: “The  application  of  a   higher  import  duty  on  Brazilian ethanol  and the use  of more EU  produced ethanol  would go  some  way  to  tackling  the  sustainability  concerns   raised  by   the  Gallagher  report.  In  2007  the   UK  consumed  a  total  of  152.8  million  litres  of  ethanol  of   which  only   20  million  litres  came from British soil. The only UK produced ethanol  came from British Sugar  with  a  GHG  saving  of over  60%  based  on  the calculation model as  proposed by  the European Commission.”

Martin Tobias, former CEO, Imperium Renewables and angel investor: “The primary problem of biofuels today is oversupply relative to RFS mandates causing refined biofuel prices to significantly lag refined petroleum products. More biofuels actually makes the problem worse. Political will supporting biofuels has weakened measurably over the last year. Liquid fuel distribution infrastructure has remained largely stangnant for over 30 years. Most mid and downstream assets are owned by companies with capital structures optimized for cash dividends as opposed to investment for growth. High blends of ethanol requires new distribution infrastructure all the way up and down the chain. Debt markets remain closed and skeptical of new technologies.”

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    Written by Jim Lane · Filed Under Opinion 

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