EBB calls for use of bio-fuel in public transport

"The EU Biomass and Bio-fuels Action Plan proposed by the European Commission is definitely another step in the right direction in respect of the popularisation of Biodiesel," Pippo Psaila, commercial director of EORC said, commenting on the action plan. "The action plan confirms the Commission's belief that the way forward towards a cleaner air lies also in the judicious use of alternative fuels."

The European Commission's initiative to issue an action plan as a concrete step towards the achievement of the EU goal of doubling the share of renewable energy from six per cent to 12 per cent by 2010 was also welcomed by the European Biodiesel Board (EBB). While approving many of the measures proposed by the European Commission, the EBB however indicated some issues they believe need a more prudent approach. One of several observations refers to the fact that 25 per cent of public bodies procurement for clean energy vehicles may be helpful but does not tackle the main obstacle for bio-fuels use in public transport and taxis.

They stated that in many member states public transport's benefit of an aid calculated as a reimbursement of the excise duty paid for fuels. The EBB claimed that this constitutes an indirect but strong disincentive to use bio-diesel or bio-diesel blends, which, due to their tax exemption or reduction, would automatically lower the amount of the aid perceived as an excise duty reimbursement.

The EU strategy in favour of bio-fuels defined with the adoption of Directive 2003/30 and of the fiscal rules of Directive 2003/96, has set ambitious targets for the short and medium term market penetration of bio-fuels. As a result of this strategy the EU is today the world leader in bio-diesel production.

With an expected outlet of more than 2.5 million tonnes in 2005, the EU bio-diesel industry is a well established and fast growing sector. Investments in new projects are planned to double the current EU production capacity bringing it close to seven million tonnes in the next two years. High mineral oil prices together with EU petrol surpluses and diesel shortages are also triggering bio-diesel expansion.

In Malta recent statistics show that local consumption of EORC bio-diesel has reached an unprecedented record with the sales for the year 2005 exceeding 1.5 million litres.

EORC-produced bio-diesel is a clean burning alternative fuel, produced from domestic, renewable resources (used cooking oils) that can be used in compression-ignition (diesel) engines with little or no modification. More significantly, bio-diesel reduces emissions that threaten human health. Bio-diesel can also be used in existing engines and fuel injection equipment.

The European Bio-diesel Board said that it is also worth highlighting that the guarantee of a stable supply of EU agricultural raw materials represents a crucial issue for both the future of the EU bio-diesel industry and the success of the EU bio-fuels strategy. In this perspective, they believe that EU policies for non-food crops and for bio-fuels must be consistent.

The European Biodiesel Board (EBB) is the European federation of bio-diesel-producing companies, it represents the large majority of EU biodiesel producers, accounting for more than 80 per cent of EU biodiesel production. Today the EBB includes 31 full and associate members. Website: www.ebb-eu.org