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Tuesday 6th of December, 2005

Future of Biofuels in Europe Hinges on State Aid

Planet Ark

With sugar production in th EU likely to drop as subsidies are taken away, Analysts say the least efficient sugar factories in Europe could be converted into ethanol plants, using sugar beet or grains as inputs, to serve a growing biofuels market as crude oil prices soar. An EU directive aims for 5.75 percent biofuel use by 2010.

The article discusses the viability of the changes and several sources are quoted as saying that incentives will be necessary to make the switch viable.

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