After several years of skyrocketing oil prices, ‘think outside the box’ phrase gave place to a ‘think outside the barrel’ formula. Oil reserves dwindle, paralleled by unprecedented oil consumption growth, when a consumption milestone of 1000 barrels per second is not a very distant prospect. Thus, the question is not whether biofuels account for a significant share of the energy market but when it will actually happen.
The International Energy Agency (IEA) forecasts that global biofuel output will grow from 40 million tonnes of oil equivalent (Mtoe) in 2006 to 150 Mtoe in 2030 (annual output growth rate: 7-9%). Further, the share of biofuels in global road transport will reach 7% in 2030 compared with 1% today. The IEA assumes that only first generation biofuels (bioethanol, biodiesel) are economically viable by 2030, while more potential rests with bioethanol since its production costs will fall quicker than those of biodiesel.
Europe sticks to the plan of bringing the share of biofuels to 5.75% by 2010 (1.4% in 2005). The consumption of bioethanol- and biodiesel-based car fuel in Europe will grow from 7 million tonnes in 2005 to 15 million tonnes in 2010. Investors will spend over $4 bln to have 40 biodiesel and 60 bioethanol facilities put on stream.
The implementation of biofuels in Eastern Europe gains momentum, though impeded by various factors, such as economic barriers, lack of legislative framework and poor infrastructure. Mentality also changes as more people start to recognize economic viability and potential of biofuels. Ukraine made a law fostering production of petrols blended with bioethanol additives (reformulated gasoline), while the excise tax for this type of fuel was reduced from 60 euros per tonne to 30 euros per tonne. Currently, zero rate excise tax is imposed for bioethanol fuels produced by Ukrainian plants.
In November 2007, the then Russian President and current Prime Minister Vladimir Putin stressed the necessity to invigorate biofuel production by creating business conditions for launching bioethanol units in Russia, which might be viewed as a prospective investment into the real sector of the Russian economy.
The ‘Ethanol & Biofuels Perspectives in Eastern Europe’ Conference is designed for representatives of the biofuel sector, car/oil industries, agriculture, science and government. Leading ethanol fuel experts will cover an exceedingly diverse range of topics: general industry overview (from feedstock issues to biofuel sales), world ethanol market analysis (incl. markets for secondary products), technologies for the production and implementation of first/second generation bioethanol (incl. new fermentation technologies), biofuel promotion policies and regulatory measures, bioethanol application practices demonstrated by automotive and petroleum companies, project-financing strategies, scenarios required by wheat producers to originate profits from bioethanol-related activities.
