Uncertain future for first generation European biofuel industry:
European Biofuels Industry at fortnight of shake out?
Monday, 05 May 2008 — PRESS RELEASE –
The third international Biofuels SUMMIT and EXPO, held last week in Madrid, Spain, concluded with a rather pessimistic scenario for first generation Biofuels producers in Europe. Not so much because of the perverse and absurd manipulation of media, which seem to be easy victims in the hands of some interested parties who want consumers to believe the complete nonsense that Biofuels are now the worst of all evils, but because of the fact that this young industry does not seem able to set up an organised defence of their own interests and thus is doomed to disappear in the turbulences of the moment. Fact is that almost none of the existing Biofuels producers did show up at the Conference, letting the floor thus to the second generation of producers of Biofuels, which are the leading (renewable) energy suppliers and some of their closest allies. The good news about this apparent squeeze out is that Biofuels are here to stay.
As it seems, the first generation of Biofuels producers, several hundred independent entrepreneurs who were attracted by the shine of this apparently silver bullet called “Biofuels”, are now squeezed out of this business due to a number of coinciding circumstances of which some say they might be an organized attempt to restructure this industry. Fact is that at this moment most of the existing European producers are not producing at all or working under minimum occupational levels. Fact is also that some major new biofuel plants are under construction and that those new production sites hold no relation at all with the first generation producers but is already an integrated part of the existing supply chains of the petroleum industry. Fact is also that EC does not seem to have any hurry in defending the existing producers as they tolerate dumping of bio diesel from US States on the European market, helping thus to speed up the squeeze out of those producers. Fact is further more that even renowned and respected media are tempted to tell only half of the story of Biofuels. Spanish News Agency EFE, for example, picked up only two out of the
30 speakers on the conference and of course the 2 who where speaking against Biofuels (Unilever and Greenpeace). Not a single word about those speakers who gave an in depth analysis based on provable facts on the nonsense of victimising Biofuels for half of the worlds problems.
Latest example was this weeks World Wide news diarrhea on the price increases of rice which of course was also to blame on Biofuels. Fact is however that Biofuels are not made out of rice, nor rice fields are used for it. You can make sake out of it, but that’s as far as it goes. Nevertheless, media are so much conditioned now that they automatically link food price increases with Biofuels and that definitely does not help readers to get a better understanding of the real problems and solutions.
But does that matter at this stage of the play?
The new reality is that the first generation producers seem doomed to disappear and that the established industries will take over this field. Orchestrated or not, it seems inevitable. Interesting will be to observe how the second generation producers will avoid falling into the same traps as soon Biofuels need to be declared “green” again. As seen during the third SUMMIT on sustainable Biofuels, the keyword is indeed sustainable and first generation producers missed completely that point. For sure future generations of Biofuels producers will only focus on big scale production, guaranteeing product quality and above all sustainability of their products, both from an environmental point of view as from social behaviour of the whole supply chain, going back as far as the crop production and even land preparation and use as long as Biofuels will be made out of biomass which compete with the food supply chain. So we can expect very soon some kind of a European Biofuels Certification Standard which will handle those aspects and thus turning Biofuels “green” again and by the way stop dumping practices, setting the basis for a long term development of this new industry with the same old players.
Guess is that this will all happen within a very tight timeframe but by then, most of the existing producers will have closed their doors. That will be the last Act of this play which will integrate the production of Biofuels into the existing energy power structures in Europe and soon we will all drive around on (bio)fuel blends of all kind without even knowing. End of the story.
If you want to see another Play about Biofuels with other players, be welcome to the 4th International Sustainable Biofuels SUMMIT & EXPO in Buenos Aires, Argentina, 22 to 24 of October next.(www.biofuelsummit.info). Recommendable especially for al those European producers who are looking for a replay.
The SUMMIT & EXPO will take place in the wider context of R.energy, International Trade show for renewable energy and energy saving (www.r.energy.info)
For more information, call +34 902 364 149