Contrary to common belief, grain has been used to produce the alcohol-based fuel ethanol for much longer in France than in the USA, but annual ethanol consumption in France is currently only 1.1 million hectolitres as opposed to 4 or 5 million in the 1930s and 1940s. In the USA, production in 2003 reached 114 million hectolitres, i.e. 28 times more than the 15-member European Union!
Europe — moving into Biofuel
In 2003, confronted with problems of energy dependence and Kyoto commitments to reduce greenhouse gas emissions, the European Union took a stand on biofuels and adopted two directives: - the first set the European framework for tax concessions on biofuels; each member State was free to go as far as total tax exemption (the option chosen by Germany, Sweden and Spain; France has cut taxes by 64%) - the second directive urges Member States to add 2% biofuel to petrol (gasoline) by 2005, and 5.75% by 2010, by introducing appropriate measures. This is an obligation of diligence, not strict liability to perform.
This prospect is promising as it will open up a new outlet for grain producers and, if the 5.75% target is reached by 2010, it will be equivalent to farming 3.5 million hectares, or producing 28 million tonnes in the 25-member EU. But this should be seen in the context of the 15-member EU where producers have to set aside 10% of their land, i.e. 6 million hectares, and in the light of the Commission forecast for the 2010 harvest estimating an increase of 26 million tonnes for the 25-member EU.
France must act
With legislation on energy and the climate plan, the government has shown its intention to comply with the European directive on biofuel blended into petrol. There are currently three or four plans to build grain-based bioethanol production plants in France, with a capacity of 1.25 to 2.5 million hectolitres, and they only need government approval to start. It usually takes about one year to process these submissions, before the foundations can be laid, and then it takes another year to build the plant. The goal of a 5.75% ethanol-petrol blend would require 20 million hectolitres of ethanol, i.e. 9 million more than is currently produced.
Maize to produce ethanol in France – a real prospect!
AGPM, with 5 companies collecting maize in the South-West, plus Aquitaine Industries Innovation and Abengoa Bioenergy (the largest bioethanol producer in Europe and number 5 in the USA), have been working on a plan to set up a plant with production capacity of 1.25 million hectolitres, requiring 300 000 tonnes of maize and an investment of approximately 70 million euros. The future of this project, and of other such projects, will depend on commitments from the government and the willingness of the oil industry to blend ethanol into the petrol they produce and sell. A certain amount of reluctance, for both political and economic reasons, needs to be overcome.
Europe — moving into Biofuel