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Ethanol Europe

German ethanol producers urge expedited mandate hike

German ethanol producers’ are urging an expedited rise in the country’s road transport fuel greenhouse gas saving mandate, a year earlier than planned, amid signs that their increasingly efficient response to the mandate is harming sales, according to fresh first half data released by industry association BDBe.

First half consumption of ethanol dropped by 3.7% relative to a 5.2% rise in the country’s YoY output to 370,484t. First half rates of production if sustained would put German producers on track to beat last year’s record output of 726,881t. Sales of E5 gained 1.5% YoY, but sales of E10 slumped 11% to 1.25mn t to bring E10’s share of the market to 14.1%.

BLE figures put carbon savings from ethanol at 62%, up from 57% in the first quarter of 2014, BDBe said.

“The 3.7% fall in consumption of bioethanol in the first half of 2015 suggests that the introduction of a greenhouse gas reduction mandate has not led to higher greenhouse gas savings as planned. Instead, the high greenhouse gas savings from German bioethanol is used to reduce the actual blending and increase fossil fuel consumption in the road transport fuel sector,” said BDBe chief executive Dietrich Klein.

Germany should now raise its greenhouse gas saving mandate to 4% from the start of next year, a year earlier than planned, Klein said.

MS – 10/09/2015

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