Is the EU Waking Up to the Strategic Importance of Ethanol?
David Carpintero, Director General, ePURE, the European Renewable Ethanol Association
August 17, 2023
BY David Carpintero
The role of sustainable biofuels in the transition from a fossil-based economy to carbon neutrality has been the subject of intense and often misinformed debate over the last few years. Lately, however, there has been cause for optimism that Europe could move to a more constructive discussion. Consider a couple of recent signs that European policymakers are waking up to what their counterparts around the world already know: that renewable ethanol offers strategic advantages for energy independence, food security, and the fight against climate change.
One such development is a declaration by the G7 group of leading economic nations—a statement co-signed by EU leaders—asserting that sustainable biofuels have a vital role to play in transport decarbonization. This was a welcome turnaround from recent efforts to downplay the proven ability of biofuels to reduce GHG emissions in transport.
Another positive signal was a European Court of Auditors report calling into question the current EU strategy of betting everything on electric vehicles as the way to decarbonize road transport—and phasing out all other options. The EU’s main auditing institution found that Europe’s ambitions to rely on electric vehicles for road transport leave it vulnerable to long-term dependency on China and the U.S. for battery technology, and threaten its ability to meet goals for reducing CO2 emissions from cars. In other words, the consequences of banning new sales of internal combustion engine cars after 2035, without making allowances for cars that could run on carbon-neutral liquid fuels, are potentially serious.
To be sure, there are still problems with the EU’s political approach to biofuels. Some EU countries, most recently Sweden, have decided to curtail biofuels blending obligations in a misguided effort to reduce fuel prices and, thus, risk missing their climate targets. More generally troubling is the EU’s inconsistent approach to biofuels among various pieces of climate change legislation: the so-called Fit for 55 package. While the Renewable Energy Directive revision confirms that sustainable crop-based biofuels have a role to play, other legislation on energy taxation, aviation and maritime actively discourage their use.
Advertisement
The solution for the EU, of course, is to be more inclusive and technology-open on all of these fronts. This is especially true considering the strategic importance of EU renewable ethanol production, for producing more than just fuel. Ethanol biorefineries across the EU contribute to several European strategic objectives, including:
• Climate change mitigation: Biofuels continue to be the main renewable energy in transport and a proven solution for reducing emissions from cars. According to the latest data, renewable ethanol produced by ePURE members reduced GHG emissions by more than 78% compared to fossil fuel—and is getting closer to carbon-neutrality every year.
• Energy independence: Domestic production of renewable ethanol helps reduce the EU’s dependence on imported fossil fuel. EU policies that unfairly hamper the use of sustainable biofuels such as ethanol are, by definition, opening the door to more fossil oil.
• Food security: The “food vs. fuel” argument reared its head again in 2022, but once again has been shown to be a complete myth. In fact, EU biorefineries produced more food and animal feed than fuel in 2022, helping reduce the EU’s need to import protein.
• Strategic autonomy: Domestic ethanol production also creates other beneficial products, including biogenic CO2 that is essential to ensure supply.
Advertisement
It’s clear Europe still needs more than one solution to achieve meaningful transport de-fossilization. Sticking to a one-size-fits-all EV strategy is destined to disappoint. Let’s hope European policymakers recognize this reality and take a more inclusive approach.
Author: David Carpintero
Director General, ePURE,
the European Renewable
Ethanol Association
carpintero@epure.org
Published in the 2023 September issue of Ethanol Producer Magazine
Related Stories
The World Trade Organization’s Dispute Settlement Body on Nov. 27 agreed to a request submitted by Indonesia to establish a dispute panel to review countervailing duties imposed by the European Union on imports of biodiesel from Indoenesia.
Council of the European Union adopts ReFuelEU regulations
By Erin Voegele
November 28, 2023
The Council of the European Union on Oct. 9 adopted regulations for the ReFuelEU initiative. The new law aims to boost both the demand for and supply of sustainable aviation fuel (SAF) within the European Union.
Aemetis Inc. announced that its Universal Biofuels subsidiary in India, owner and operator of a 60 MMgy biodiesel plant, was selected by India’s three government-controlled oil marketing companies to supply an estimated $150 million of biodiesel.
The U.S. exported 77,877.3 metric tons of biodiesel and biodiesel blends of B30 or greater in August, according to data released by the USDA FAS on Oct. 5. Imports of biodiesel and biodiesel blends of B30 and greater were at 139,738.4 metric tons.
UNICA, the Brazilian sugarcane industry association, has announced sugarcane processing and ethanol production were both up during the second half of August. Ethanol sales for the full month were up more than 9 percent from last year.
Upcoming Events
