Industry group calls on EU to review ethanol regulations
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Stormy [2011-05-20]
The recently formed Industrial Ethanol Association issued a statement on Tuesday calling on the European Commission to "carry out an in-depth analysis of the market to ensure a secure regulatory environment and level playing field for European operators."
The IEA, which came into being August 28, has three members, all ethanol producers: UK-based INEOS, Netherlands-based PetroSA Europe and Sasol Solvents Germany.
The association claimed in its press release that there is a loophole in European regulations that "some companies are legally exploiting" to import ethanol into Europe under Chapter 38 of customs regulations rather than under Chapter 22.
Product imported into Europe under Chapter 38 is "subject to no controls and much lower import duty" than product brought in under Chapter 22, the IEA claims.
IEA Chairman Ian Kersey said "this lack of coherence in EU policy-making not only threatens the European ethanol sector but makes a mockery of EU energy, health and development policies."
Besides its goal of ensuring "fairness in trade and customs" in the ethanol industry, the IEA also aims to provide information on synthetic (made from petrochemical sources) ethanol, promote the industry in Europe and ensure that supplies of bioethanol are available for fuel blending.
Platts only assesses European fuel grade ethanol that has been derived from agricultural, not petrochemical, sources.