23 June 2006 12:56 [Source: ICIS news]
PRAGUE (ICIS news)--Poland’s government hopes to introduce a biofuels law effective from the start of 2007 allowing for up to 5.75% of transport fuel to be made up of bio-components, the Polish cabinet office said on Friday.
Parliament would soon vote on the legislation, it added, which would also permit diesel and petrol with higher bio-component percentages and pure biodiesel to be sold from separate pumps at filling stations.
The government intended to support the use of biofuels with an excise tax allowance levied directly at the pump, said a cabinet office spokesman. Details on the level of the allowance were not yet available. However, KBC Securities in Warsaw said it should make biodiesel, at least 5-10% cheaper than standard diesel.
KBC also noted that the law would allow farmers to produce up to 100 litres of biofuels per hectare per year for their own use.
The cabinet office said if adopted the legislation should enable Poland to meet a European Union (EU) directive which states that EU countries are compelled to take initiatives to ensure 5.75% biofuel content in transport fuels by 2010.
The directive has already led to substantial investment in new biodiesel and bioethanol plants. On Thursday, Skotan signed contracts for the construction of two 150,000 tonnes/year biodiesel component plants in Poland.
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