Tax breaks ‘wrong way’ to transform bio markets: exec

12 September 2013 23:16  [Source: ICIS news]

HOUSTON (ICIS)--Government tax incentives may be the wrong way to transform markets, the CEO of the Pine Chemicals Association said on Thursday.

Nearing the beginning of the association’s annual international conference, CEO Charles Morris said combining tax incentives with mandates is likely not the best way to transform the fuel markets to include biofuel products.

“If the biofuel application is a better model [for the use of certain feedstocks], fine, but with the distribution of tax incentives it is the wrong way to transform industries,” Morris said.

Through recently commissioned studies, the Pine Chemicals Association is seeking to determine if the use of feedstocks such as crude tall oil (CTO) to make biofuels actually results in a reduction of the carbon dioxide (CO2) emissions into the atmosphere.

The pine chemicals industry is scrambling to demonstrate its findings on CO2 to legislators in the US in order to try to stem the migration of pine-derived resources such as CTO into mainstream use as a biofuel feedstock.

“We’re working with the American Chemistry Council (ACC) and finding that federal and state legislators want to be sure not to negatively impact industries,” Morris said.

The pine chemical industry is a little-known industry compared with petrochemicals and the upstream oil and gas fuel markets.

“We are not lobbyists,” Morris said.

“But this is a matter of education,” he added.

Pine chemicals are key components in adhesives, paper making, printing inks, synthetic rubber production, flavours and fragrances, and many other applications.

The Pine Chemicals Association is holding its 2013 annual international conference 15-17 September in Barcelona, Spain.

The organization represents a global association of companies engaged in producing and processing chemicals derived from pine trees.

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By: Judith Taylor
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