NPRA '06: France to exploit biofuels boom

26 March 2006 22:47  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--France will turn from a net importer of diesel to a significant producer with the addition of major biodiesel capacities by 2015, a French industry expert said on Sunday.

 

"Developments in biofuels in France is in full boom now. By 2010 France will reach the level of 7% compared to the 5.75% set by Europe. In 2015, France wants to reach 10%," said Michel Girard, biofuels expert for Invest in France Agency.

 

If goals set by the government were achieved, biodiesel capacity in the country will increase to 10m tonne/year by 2015 from 6m tonne/year today, he added.

 

As the economy in Russia, the main exporter of diesel to France, continues to grow, the country could start using its fuels to meet domestic demand and cut down on exports. 

 

New projects in France will raise biofuels output to about 1m tonne in 2007, 4m tonne in 2009, 5m tonne in 2010 and 7m-8m tonne in 2015. In 2004 more than 400,000 tonne of biofuels were produced in France.

 

The French government has already launched a large-scale project for the production of biofuels.  

 

To help this development, the French government has in its initial draft for the 2006 budget taken further steps to bolster the research tax credit, which underpins its efforts to promote and support research and development in France.

 

The portion linked to total expenditures have been increased to 10% from 5%. The portion linked to the increase in spending has been set at 40%. The ceiling on the research tax credit has been raised to Euro10m from Euro6m, he added.

 

The industry now needs to move into the second tier of biofuels production, Girard said. "We need to go to the second generation [of biofuels]."

 

French oil and chemicals major signed an agreement to develop a new generation biofuels with Finland's Neste Oil last year. This will be based on Neste Oil's proprietary NExBTL technology in which high-quality biodiesel fuel is produced from renewable raw materials, such as vegetable oils and animal fats.

 

The next step would be to move to the next generation, tier three, and then to tier five, to enhance the quality of biodiesel and increase the usage of the fuel, possibly in the long-term to use for the production of downstream chemicals products.

 

This would include making biofuels from other natural resources, such as trees in the forests, Girard said on the sidelines of the

31st International Petrochemical Conference. 

 

"About 30% of the growth of the forests remain in the forest every year," he added.

 

By: Hilde Ovrebekk
+44 20 8652 3214

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