France to request bids for four biofuels production units

French Prime Minister Jean-Pierre-Raffarin plans to launch bids before Spring 2005 for construction of four 200,000-tonne biofuels production units to be built by 2007. They would treble France's annual biofuels production capacity to more than 1 billion tonnes, he said.

Sept. 13, 2004

2 min read

Doris Leblond
OGJ Correspondent

PARIS, Sept. 13 -- French Prime Minister Jean-Pierre-Raffarin plans to launch bids before Spring 2005 for construction of four 200,000-tonne biofuels production units to be built by 2007. They would treble France's annual biofuels production capacity to more than 1 billion tonnes, he said.

The Kyoto protocol and European directives mandate that the share of biofuels in France jump to 5.75% from 1% of the 42 million tonnes/year of motor fuels currently consumed. By 2005 a 2% share should be attained.

The prime minister indicated that the biofuels plan would boost agriculture, decrease CO2 emissions by 3 million tonnes by 2007, and "reduce France's energy dependence." Production costs, while much higher than those of ordinary fuels, would be "less than 1 centime of a euro/liter," he said. Currently biofuels also enjoy tax rebates.

The four units, expected to cost 8 million euros, will complement eight existing facilities that produce primarily diester, a mix of 30% rapeseed or sunflower oil derivative and 7O% diesel oil. Ethanol also is being considered.

Total AS, the only company in France that produces ethyl tertiary butyl ether, manufactures 219,000 tonnes/year of ETBE. At Total's midyear press conference Thursday, Chairman and CEO Thierry Desmarest said he would accept the biofuels plan only if diester were chosen to boost diesel production in France while there is gasoline overcapacity, and if the tax breaks were stable and lasting.

Desmarest said Total would maintain its hydrocarbon production growth at an average of 4%/year during 2003-08 and also plans to increase LNG production by 8%/year to 2008.