Biofuel trade groups express concern that fall in demand could shut down plants
A group of European biofuel trade groups have dispatched a letter to the European Union to voice their concerns that countries could cut back on blending commitments as the virus pandemic continues to spread.
The letter was sent to Frans Timmermans, the executive vice president for the European Trade Deal at the European Commission, at the end of last month.
The group said: “The production of the European biofuels value chain is severely affected by the strong drop in fuel consumption and the corresponding reduction for the demand for our products, accentuated by the drop in fuel prices.
“This puts a further strain on the availability of EU produced protein supplies for livestock and hence impacts the animal production chains.”
The letter added: “In spite of the inevitable restrictions put in place, all of our members and employees are working hard to ensure the proper production and supply of current market demands, both for biofuels and their byproducts.”
The letter expressed concerns that some EU countries were considering derogations to their blending operations.
The group said: “If implemented, such derogations would exacerbate the negative effects already experienced by our sectors.
“The resulting reduction in demand would cause the shutdown of biofuel plants. It would also jeopardise the supply of products needed to produce hand sanitiser products, impact the proper function of the EU internal market for fuels and reduce the supply of animal feed. In addition, European renewable energy and climate commitments would be jeopardised.
“The production of the European biofuels value chain is severely affected by the strong drop in fuel consumption and the corresponding reduction for the demand for our products, accentuated by the drop in fuel prices,” the group said. “This puts a further strain on the availability of EU produced protein supplies for livestock and hence impacts the animal production chains.
“In spite of the inevitable restrictions put in place, all of our members and employees are working hard to ensure the proper production and supply of current market demands, both for biofuels and their byproducts,” the groups continued, noting that ethanol producers and biodiesel producers are helping to ensure the supply of necessary materials to make hand sanitizer.”
Among the seven trade groups that signed the letter included ePURE , the European renewable ethanol associations and the European Biodiesel Board.
The letter was sent to Frans Timmermans, the executive vice president for the European Trade Deal at the European Commission, at the end of last month.
The group said: “The production of the European biofuels value chain is severely affected by the strong drop in fuel consumption and the corresponding reduction for the demand for our products, accentuated by the drop in fuel prices.
“This puts a further strain on the availability of EU produced protein supplies for livestock and hence impacts the animal production chains.”
The letter added: “In spite of the inevitable restrictions put in place, all of our members and employees are working hard to ensure the proper production and supply of current market demands, both for biofuels and their byproducts.”
The letter expressed concerns that some EU countries were considering derogations to their blending operations.
The group said: “If implemented, such derogations would exacerbate the negative effects already experienced by our sectors.
“The resulting reduction in demand would cause the shutdown of biofuel plants. It would also jeopardise the supply of products needed to produce hand sanitiser products, impact the proper function of the EU internal market for fuels and reduce the supply of animal feed. In addition, European renewable energy and climate commitments would be jeopardised.
“The production of the European biofuels value chain is severely affected by the strong drop in fuel consumption and the corresponding reduction for the demand for our products, accentuated by the drop in fuel prices,” the group said. “This puts a further strain on the availability of EU produced protein supplies for livestock and hence impacts the animal production chains.
“In spite of the inevitable restrictions put in place, all of our members and employees are working hard to ensure the proper production and supply of current market demands, both for biofuels and their byproducts,” the groups continued, noting that ethanol producers and biodiesel producers are helping to ensure the supply of necessary materials to make hand sanitizer.”
Among the seven trade groups that signed the letter included ePURE , the European renewable ethanol associations and the European Biodiesel Board.
Loading ...
