Prospects for biodiesel market in Europe

A new study of the European Biodiesel market by Frost & Sullivan forecasts that two new initiatives of the European Union (2001/0265/COD, 2001/0266/CNS) will help increase the biodiesel market from the 2000 value of $504million to $2.4billion by 2007 giving a compound annual growth rate of 25% over the forecast period. The directive proposals were published in November 2001 together with an action plan to encourage increased use of biofuels in the transport sector.

The first directive calls for the establishment of a minimum level of biofuels as a proportion of fuels sold from 2005, starting at 2% and reaching 5.75% of fuels sold in 2010. Whether the targets of the first directive will be indicative or mandatory is still to be decided.