NGO study on biofuels ‘flawed’

A new study has shown that biofuels are expected to cost EU consumers about €126 billion at the pump between now and 2020.

The report, which was commissioned by NGOs Friends of the Earth and ActionAid, has been criticised by the ethanol association ePURE as being flawed as the body says it is full of factual errors.

According to ePure, analysts F.O. Licht’s looked at the report and say: ‘There are inherent difficulties in calculating the differences in the cost of producing fossil fuels on the one hand and biofuels on the other. Even the study authors warn that it should be noted that these projections are extremely uncertain, and thus the results derived are indicative.’

The analysis also claims the figures the authors of the report use were given by the UK’s Department of Transport which are currently under revision. Because of this, F.O. Licht’s claims that the calculations are not reliable.

‘There is no historical evidence that the introduction of biofuels has resulted in higher fuel prices at the pump. Why would this trend change? Most likely petrol prices will increase if biofuels were removed from the petrol mix. A 2008 Merrill Lynch report found that oil values at that time would have been about $20 (€15) barrel higher without the use of biofuels,’ says Rob Vierhout, secretary general of ePURE. ‘Contrary to what is frequently said in public, petrol blended with 10% ethanol as opposed to a 5% blend does not increase fuel consumption.’

The report says sustainability certification will mean higher prices but ePure insists that this has not been the case for ethanol.

The European Commission says if biofuels consumption was to rise to 14% of fuel consumption then it would reduce the price of fossil oil by 3%.

However, ethanol is creating new jobs and also putting pressure on the gas and oil industry.

‘Must we conclude from these studies that Friends of the Earth and ActionAid would actually prefer tar sands over fuel ethanol?’ adds Vierhout.