Hungary and biofuels: a snapshot

The Czech Business Weekly has a useful piece scoping out the size of the biofuels markets in that country and the way foreign investors are driving it Those of us who like numbers, will find this passage about import levels useful, if you bear in mind that Mol is the country’s incumbent gasoline supplier…

Mol’s latest target for 2007 is in the neighborhood of 50,000 metric tons for both biodiesel and bioethanol, with incremental annual increases averaging 10,000 metric tons through 2014.

Growing at about 20% year from the current level based on demand which falls some way short of the EU’s target amount for biofuel consumption. Quoting again from Jacob Doyle’s piece

As far as some local investors are concerned, Mol’s current schedule for blending biofuel into conventional fuels can be considered an accurate measurement of domestic biofuel demand. “We only deal with projects based on Mol purchase agreements,” said András Gereben, a corporate finance manager at Equilor Investment, which arranges secure financing for such projects.

That seems to be to be a sensible way of proceeding. The article contains good thoughts about taxation and the availability of local feedstocks.

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