In the development and setting up an effective and powerful bioethanol industry, CropEnergies is profiting from internal EU policies. The major target is an increase in the long-term reliability of supply by harnessing domestic sources of energy, reducing emissions of greenhouse gases and the development of a new sector of industry.

The EU only created the political framework for the establishment of a bioethanol industry in the year 2003.  It issued two EU directives for the promotion of biofuels for the traffic sector.

Biofuel Directive (2003/30/EC) (PDF, 119.2 KB) This declares that the member states should ensure that the proportion of biofuels in EU vehicle fuel consumption - measured by energy content - reaches 5.75% by the year 2010. Energy Tax Directive (2003/96/EC) (PDF, 193.07 KB) This enables the EU member states to exempt biofuels from mineral oil or energy taxes by up to 100%.

The European Commission is presently working on a revision of the Biofuel Directive (2003/30/EC), which has now been in force since 2003. As a result of the Commission's proposals which were adopted by the Council of Ministers in March 2007, the draft of the Renewable Energies Directive provides for a minimum proportion of 10% biofuel to be used in the traffic sector in 2020 which is mandatory for all member states. To ensure that biofuel used in Europe contributes to the reduction of green house gas emissions, the EU intents to introduce sustainability criteria which include a minimum for green house gas savings of 35%. The European Commission is thus being consistent in implementing its climate, energy and agricultural policies.

Download:
Biofuel Directive 2003/30/EC (PDF, 119.2 KB)

Since January 1, 2007 mandatory blending has replaced the tax exemption for biofuels in Germany. As from 2007, all petrol was required to be blended with 1.2% of bioethanol. The bioethanol proportion will be increased each year by 0.8%. 

This so-called biofuel quota law lays down minimum proportions of biodiesel and bioethanol in conventional fuels, which each relate to the energy content. The reasons for altering the system were for one the reduced tax revenues as a consequence of the tax exemption. The other was the fact that despite the tax exemption, not enough bioethanol was being used.

Quota for petrol substitute
For biofuels which are able to replace petrol (e.g. bioethanol), since 1 January 2008 a quota of 2.0% of the consumption of petrol applies, which is to be increased annually until 2010 to a level of 3.6%. If the minimum quantities are not achieved, the fuel company concerned must make penalty payments. Furthermore, total quotas for biofuels for 2009 and 2010 have been set at 6.25% and 6.75%, which will be increased annually until 2015 by an amount of 0.25% to 8%.

Demand triples
If we accept the forecasts of the mineral oil economic association on the consumption of petrol in Germany as a basis, the demand for bioethanol in Germany will increase by the year 2010 to around 1.5 million m³ merely by fulfilling the quotas laid down for mandatory blending. Compared with the total sales of bioethanol in Germany in the year 2007 (approx. 580.000 m³), this means almost a three-fold increase.

Long-term prospects assured
The foundation for long-term use of biofuels was laid in the comprehensive package of laws and directives presented on 5 December 2007 by the Federal Cabinet on the eve of the Bali climate conference.

Thus the government's draft amendment to the biofuels quota law provides that the proportion of biofuels in the overall consumption of fuels shall be increased from the present 8% in the year 2015 to 17% in the year 2020. In Germany exists a draft of a sustainability directive which sets standards for a sustainable production of biofuels. However, this draft can only be implemented when the corresponding EU framework has been passed.