Biorefineries boost rural economies

Biorefineries can deliver a major boost to the economies of rural areas, attracting capital investment and creating industry led employment, according to a new research report.

Through 2016, the Hungarian Academy of Sciences conducted a pioneering research project to explore the socio-economic impact of a fully operation biorefinery on a rural community within the EU.

The study, conducted at the Pannonia Ethanol biorefinery at Dunafoldvar in Hungary and titled ‘Sustainable Rural Renaissance: The Case of a Biorefinery’, was presented on 12 May at a conference in Brussels hosted by EurActiv

According to a EurActiv statement, the results of the report are clear. “It shows that biorefineries can be a key instrument in reviving disadvantaged rural communities across the EU.” 

The study claims that the presence of biorefineries in rural communities can reduce the rate of migration away from rural areas.

“The establishment and operation of the Pannonia Ethanol plant has clearly benefited its host town because, thanks to higher revenues from business tax, the town’s budget has more room for manoeuvre.” The report states. “Relying on such an increase in revenues, the town of Dunaföldvár has managed to improve the standard of public services and develop its basic transport infrastructure, thus improving the quality of life of its residents.”

Local maize farmers have also benefitted from the presence of the biorefinery, with the long term business relationships they’ve forged with the company giving them a predictable demand at a time when climate change has created uncertainty in the industry.

Speaking at the EurActiv conference, Eric Sievers, director of Investment for the biorefinery’s parent company, Ethanol Europe Renewables, said: “Generating investment and employment in remote areas is a major challenge. There are few industries that can attract capital investment to rural areas, create jobs, support farming, mitigate outmigration to cities and enhance community welfare. Biorefining is one such industry that can be a powerful tool for rural renaissance and convergence of regions. This is precisely the kind of project that leads to the Fair Jobs and Growth that are central to President Juncker’s vision for a ‘more social Europe’ “.

“This research shows an important pathway to reviving disadvantaged rural communities. It is a whole lot easier to create jobs in urban environments.  Doing it further away from business centres is much more challenging. Conventional biorefineries provide an attractive future in rural environments, and at the same time contribute to climate change mitigation and energy independence. They can be an engine for sustainable growth and rural development in the EU”

 

This article was written by Daryl Worthington, assistant editor at Biofuels International