Germany scraps 10% biofuels blending target

04 April 2008 14:11  [Source: ICIS news]

TORONTO (ICIS news)--Germany’s federal environment minister decided on Friday not to raise biofuels blending to 10% on a volume basis, citing the large number of existing cars unsuitable for the higher blends.

 

In a statement, minister Sigmar Gabriel said that recent data by a German car importers' group indicated that some 3m cars would not be able to take the higher biofuels blending ratio.

 

This compares with earlier estimates of only 375,000 cars, he said.

 

However, the decision would not affect the government’s overall greenhouse gas reduction targets and Gabriel reiterated its commitment to biofuels use.

 

“The automobile industry will have to reach the target of 120g of carbon dioxide (CO2) per kilometre with other means," said Gabriel.

 

At the same time, biofuels would continue to play a big part in the government’s strategies, Gabriel said.

 

Germany would stick with E5 blending for gasoline and B7 for biodiesel, he said.

 

“Despite the decision not to introduce E10, the use of biofuels is not in question,” said Gabriel, adding that biofuels policies needed to be reviewed in terms of environmental sustainability.

 

The ministry also announced an additional €30m ($47m) in funding for a biomass research centre in Leipzig.

 

ADAC, a powerful drivers lobby group, welcomed the government’s reversal.

 

“What needs to happen now is that politicians, carmakers and the oil industry come together and work out a viable strategy to cut CO2,” said ADAC president Peter Mayer.

 

ADAC was supporting biofuels, but only if their use was environmentally sustainable and did not result in higher fuel costs for drivers, he added

 

($1 = €0.64)

By: Stefan Baumgarten
+1 713 525 2653

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