Germany eases biofuel-blend rule

Germany plans to require fuelmakers starting in 2009 to blend at least 5.25 percent biofuel into petroleum.

The announcement this week represented a rollback from the more stringent 6.25 percent blend planned, but now delayed until 2010. Biogas from biomethane is now expected to be included in Germany's requirements.

The government plans to revisit the blend requirements in 2011.

Germany has the largest biodiesel industry in Europe. It's also one of several countries in Europe to revisit their biofuel mandates because of the connection to rising global food prices, although the government has also cited potential harm to engines of older cars.

Meanwhile, the EU and India have taken measures to ensure biofuel requirements are met by non-food crops (see India, EU affirm new biofuels). The EU’s Industry Committee said it will require 5 percent biofuel blends by 2015 and 10 percent by 2020, with no more than 4 percent of the target from today’s crop-based biofuels.

India plans a 20-percent biofuel blend by 2017 from non-edible sources grown on non-farming land. The country also called for the elimination of tax and duties on biodiesel.

Germany's cabinet decided to increase taxes on biodiesel starting in January by €0.18, instead of the proposed €0.21. The industry has said tax increases on biodiesel have significantly cut sales.

Biofuels are expected to comprise 10 percent to 15 percent of the fuel supply in the next 10 to 20 years if the industry can overcome challenges with distribution, infrastructure and government policy, as well as the food-or-fuel debate, according to a report from Accenture in September (see Global biofuels market faces challenges).