UNCTAD discusses the state of biofuel markets at Platts Biofuels Conference

​Business leaders, strategy consultancies and policy makers gathered in Geneva for the 5th Annual EU Biofuels Seminar organized by Platts.  In this year's event which took place in Geneva, practitioners in the industry, as well as media and international organization representatives discussed the latest developments in the biofuels industry. Special emphasis was put on how to meet goals set out in major regions for renewables in transport, such as in the European Union.
A representative from one large European Biorefinnary (Borregaard) mentioned that bioeconomy policy should be crafted primarily to convert low-value feedstock to high-value end products (not limited to energy), but in practice this direction of conversion is not promoted by the current policies in Europe and elsewhere, which according to the representative give incentives to the conversion of high-value feedstocks into lower-value-added end products such as thermal and liquid energy.
Industry leaders mentioned the need to reduce risks in four key areas of the bioenergy industry, namely quantities produced, quality, price and sustainability regulations.  Representatives from various parts of the value chain offered their views on how to tackle those dimensions in the specific sector they operate.  One of the suggestions was for the industry to work together with policymakers at the European level since the scale necessaries for the efficient development of cellulosic fuels requires an European scale for learning curves to advance in this novel industry.  Another suggestion involved stronger cooperation between bioeconomy industries, by means of better coordination between biomaterials and bioenergy industries to approach policymakers with harmonized positions.
Low oil prices have also impacted the industry, and together with high production costs have kept the share of renewable energy  in EU transport at 5.94% (4.1% were biofuels) out of a target of 10% for 2020. While there have been calls for a E20 blend across Europe, market data suggests that even meeting the current cap for conventional biofuels by 2020 (7%) is unlikely. An European Commission representative discussed ideas and suggestions on how bioenergy policy in the continent could be adjusted to ensure European goals for renewable energy and decarbonization in transport are met. Two dimensions were specifically mentioned as being prone to adjustments, in special the level of support (especially to 2G biofuels) and how to provide support. 
During the event UNCTAD was invited by Platts to present its study on 2nd Generation Biofuel technologies, comparing surveyed figures on deployed capacity for 2G fuel production with industry estimates, which appeared aligned.  A total of about 1.4 billion litres of installed capacity for 2G ethanol existed as of 2015. This generated debate with the audience on whether this capacity can be fully utilized in face of slow demand growth in European markets, as well as uncertainties in oil price developments on the near future.