Lack of agreement on sustainability criteria in the EU slows biofuel development

The Danish newspaper, Børsen, on Thursday 30 August wrote the article EU-fnidder bremser bioeventyr, which focuses on a situation which is of great importance for the EU production of biofuel in general, as well as for hveiti’s future production. The journalist, Jakob Klock, has interviewed Svend Brandstrup, CEO of hveiti, who says:

It would be easier for us if politicians stopped the many ambiguous statements, and put the rules on the table. Insecurity is the worst thing we know.

When is has proven hard to come to an agreement, it is both because of political conflicts of interest and the complexity of the subject. ILUC covers both the direct and indirect local and global effects by using farmland for the production of biofuels. The aim of ILUC is to reflect the effect of the use of land for the production of energy, and where the food that potentially could have been cultivated on that land is cultivated instead (does it e.g. cause forests to be cleared to make room for the cultivation of food).

According to Claus Felby, professor at the Faculty of Science at the University of Copenhagen, it is a considerable problem – in relation to the complexity of the subject – that theoretical models have been chosen as control system. He believes that the way forward is a more hands-on approach with clear rules on what is allowed for the individual kinds of biofuel.

hveiti welcomes ILUC

At hveiti, clear agreement on a common line of direction has been long awaited. When you as today only look at the direct effects of the land use, focus is only on the bioethanol product and not on the value of the co-products from the same production. This is an aspect that hveiti is very aware of, and Svend Brandstrup says:

In the process of biorefining winter wheat, a high-value protein product, which can replace soya in animal feed, is also produced. Soya is typically produced in South America in an unsustainable manner, and a phase out will contribute to a positive ILUC effect.

Hesitation in EU causes hesitation in corporate life

The majority of the bioethanol used in the EU today is – despite the huge European potential – imported. Kåre Riis Nielsen, manager of Novozymes’ European office, explains:

The problem is that we in the economic life are afraid of investing in Europe, before we know for certain what consequences the new requirements will have. 

Novozymes is the world’s leading supplier of enzymes, and they clearly see the effect of the lack of political results in the EU. In the US, China and Brazil where the conditions are in order, there is a huge development within biofuels. 

According to the article in Børsen, EU Climate Commissioner, Connie Hedegaard, has promised a nearby compromise proposal, and thereafter a final proposal some time during the fall.