CropEnergies CEO slams EC’s revised RED proposals

German bioethanol producer CropEnergies has criticised the European Commission’s (EC) revised renewable energy directive (RED) proposals.

In the company’s third quarter forecast, CropEnergies chief executive Joachim Lutz said the EC could impair further progress, warning proposals to cut the amount of biofuels made from crops make no sense when it wants to increase alternative fuels’ market share.

He said: “The European Council decided greenhouse gas emissions have to be reduced by 40% by 2030.

“However, this target can hardly be reached with the package of policy measures presented by the European Commission in November.

“In the last few years, the European bioethanol industry was able to increase greenhouse gas savings of ethanol from crops.

“But, instead of building on this, the draft of the European Commission proposes decreasing the share of biofuels made from crops from seven per cent in 2021 to a maximum of 3.8% in 2030.

“There is reason to fear the draft would not lead to a decrease in the use of highly-efficient biofuels, which are already on the market.

“A development of alternative fuels can only be achieved in addition to – not instead of – established biofuel made from crops.”

This year these proposals will be negotiated in the Council and in the Parliament.

CropEnergies has recently restarted the production of its bioethanol plant in Wilton, UK, by which CropEnergies increased bioethanol production from 618,000 to 735,000 cubic meters in the third quarter reporting period.

In fact, the company said its revenues had increased by n the first nine months of its financial year to €565 million, compared to €558 million last year, with third quarter earnings alone rising from €215 million from €165 million the previous year.

This story was written by Liz Gyekye, editor of Bioenergy Insight.