The European Landscape for Biofuels in the Transport Sector

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
• ANALYSIS
  • Alongside support from the EU, governments in Germanyand Sweden have long been strong proponents of biofuels
    • The EU' s Biofuels Directive has been the principalsupranational driver for the uptake of biodiesel and bioethanol
    • The EU' s Energy Crop Premium has helped spur thecultivation of crops for the production of biofuels
    • Strong political support for the use of biofuels has ledto the highest uptake in Sweden and Germany
      • Germany' s socialist/green coalition was a key factor inmaking it Europe' s largest consumer of biofuels
      • Multi-faceted support for the use of biofuels in Swedenhas led to high penetration
      • Political commitment and partnerships with agriculturehave made France a leading consumer of biofuels
      • Poor implementation of targets for biofuels in Spain andItaly has led to limited uptake
      • The UK government' s scepticism of biofuels hasrestrained consumption
    • In member states obligations on fuel retailers to sellbiofuels will be a significant market driver going forward
    • In member states obligations on fuel retailers to sellbiofuels will be a significant market driver going forward
  • The biofuels market in Germany has been aided by astrong production base, filling station network and vehicle availability
    • The capacity to produce biofuels is strongest in Franceand Germany
      • Germany has the largest production base for biofuels inEurope, but is having to reduce output
      • Sweden' s high level of biofuels utilization is heavilyreliant on imports
      • In France, enthusiasm from agriculture and industry hascreated a strong production base for biofuels
      • The UK' s production base is small and is suffering fromovercapacity
      • Italy and Spain are significant producers of biofuelsdespite limited consumption at the national level
    • The retail network for high blended biofuels isstrongest in Germany and Sweden
      • Ethanol is widely blended into regular fuels in Sweden
      • Availability of biofuels in France and Germany isamongst the highest in Europe
      • The network for biofuels is set to grow rapidly in Spainand Italy
      • Biodiesel and bioethanol are only available at aminority of UK service stations
    • Swedish car manufacturers are the most enthusiasticsupporters of biofuels
      • Swedish and French car manufacturers have been the mostsupportive of biofuels
      • German car manufacturers have shown mixed enthusiasm forbiofuels
  • Tax rebates and increasing environmental concern havebeen key in boosting demand for biofuels in Germany and Sweden
    • The adoption of biofuels has been most successful incountries with generous fiscal incentives such as Sweden
      • Users of biofuels in Sweden, Italy and Spain benefitfrom the highest levels of tax relief
      • Consumers in Germany, the UK and France benefit frompartial tax rebates on biofuels
    • The high level of importance placed on environmentalissues in Germany and Sweden have influenced biofuel sales
• APPENDIX
  • Definitions
  • Sources
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Figures
  • Figure 1: Germany put 0.65% of its non-fallow farmlandunder the Energy Crop premium scheme in 2004
  • Figure 2: Germany consumed more than 2,000 millionlitres of biodiesel in 2005
  • Figure 3: 98% of the biofuel used in Sweden in 2005was bioethanol
  • Figure 4: France consumes almost equal amounts ofbiodiesel and bioethanol
  • Figure 5: The UK only used 120 million litres ofbiofuel in 2005
  • Figure 6: Biofuel obligations
  • Figure 7: Germany' s biodiesel production grew by over60% between 2004 and 2005
  • Figure 8: Sweden produced 122,000 tonnes of bioethanolin 2005
  • Figure 9: France produced 492,000 tonnes of biodieselin 2005
  • Figure 10: The UK produced 51,000 tonnes of biodieselin 2005
  • Figure 11: OKQ8 has 214 sites retailing E85 in Sweden
  • Figure 12: Total UK has 331 sites retailing biodieselin the UK
  • Figure 13: Saab, Volvo and Citroen are strongsupporters of biofuels
  • Figure 14: Selected German car brands havedemonstrated enthusiasm for biofuels
  • Figure 15: Opting for green energy is one behaviouralaspect of rising environmental attitudes