Czech Setuza to invest Koruna1bn in biodiesel ROME

23 June 2005 13:29  [Source: ICIS news]

PRAGUE (CNI)--Czech chemicals and foodstuffs producer Setuza announced Thursday that it is to invest almost Koruna1bn ($40.8m/Euro35.4m) in trebling its production of biodiesel component rape-oil methyl ester (ROME).

 

The company announced the plan after welcoming recent news that the Czech government is to renew its biodiesel subsidy of around Koruna7,000/tonne of ROME.

 

Setuza spokeswoman Marie Logrova told CNI that the company is now lobbying the government for legislation that will require diesel fuel to have a biodiesel content of at least 5%.

 

“Of course there are other lobbies pressing for as low as 2%. But we hope for the higher figure before mid-2007, when our increased capacity - 160,000 tonne/year compared to the current 50,000 tonne/year - should be in full production,” she said.

 

The government ceased state support for ROME after it was found to be out of line with European Union (EU) regulations. But, with the EU pushing for all fuels in the country to contain at least 5.75% of bio-components by 2010, it has moved to modify and restore the subsidy system.

 

The cancellation of the system was a significant contributory factor in the record Koruna700m loss suffered by Setuza in 2004.

 

Logrova said the firm currently exports most of its ROME, largely to Germany. Competing ROME output comes from the Czech Republic’s Agropodnik Jihlava at a rate of 50,000-60,000 tonne/year, she added.

By: Will Conroy
+44 20 8652 3214

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