Biodiesel market set to reach 25m euros

Eu fuel consumption norms will generate a 25 million-euro biodiesel market in the last six months of this year.
Imports will make up the largest part of the market, though, as most projects that have been announced are still on paper only.
So far, the total value of projects for investments in the segment of biodiesel production tops 250 million euros. Practically, the market will start shaping up as late as the second half of this year, when EU stipulations forcing petroleum companies to sell diesel oil with a 2% content of biodiesel come into effect.
According to a government decision draft drawn up by the Economy and Trade Ministry, starting July 1, 2007 diesel oil must have 2% biofuel content; on January 1, 2008 the percentage will climb to 3% and then to 4% in July 2008. At the same time, petrol must contain at least 2% biofuel starting January 1, 2009 and at least 4% one year later.
Major companies, such as Rompetrol or Lukoil, said they were interested in investing in their own “green petroleum” production facilities.
Petrom, the biggest Romanian company, stated it would buy biodiesel from domestic producers, as it did not plan to invest in a production facility.
Besides these companies, a series of players such as vegetable oil producers or major agricultural land owners, have spotted the opportunity created by EU norms and have announced investments worth tens of million euros.
Lukoil will start producing biodiesel in the first half of next year, according to company data. It is to invest 15 million dollars (12 million euros) this year in this department, say the company’s representatives. According to the above-quoted sources, a litre of biodiesel will have a lower price than the classical diesel oil, as this process is excise-free.
Portugal’s Martifer was the first to announce investment in a biodiesel plant domestically. MOL Romania says it will secure the necessary biodiesel volumes for the domestic market from domestic products and from imports. Other major projects include the one announced by Retter Projectmanagement, Dafore, Sibiu County Council and MAN Ferrostaal.
Ultex Tandarei has started producing biodiesel under Biodil brand, being the first vegetable oil processing plant to produce biodiesel domestically.
Argus Constanta announced it would invest around 10 million euros in biodiesel production.
Racova Com-Agro-Pan group of firms is to invest around 18 million euros this year to build a biodiesel plant in Vaslui.
Rompetrol last year announced it started a 16 million-euro investment programme for the construction of a biodiesel plant.
Expur Urziceni soybean oil will also invest 20m euros to build a biodiesel plant.