Posted on 10/31/2006 9:55:26 AM PST by Red Badger
LONDON (Reuters) - Europe's market for biodiesel is expected to more than double in value to about eight billion euros (5.35 billion pounds) a year by 2010, investment bank Goldman Sachs (GS.N: Quote, Profile, Research) said on Monday.
Concerns about the security of oil supplies and climate change will drive output of the clean fuel up 35 percent by 2010 as companies spend up to three billion euros on production facilities, the bank said in a research note.
"We believe biofuels are here to stay as they represent a road to a cleaner transport sector that currently lacks significant alternatives," Goldman Sach said.
Biodiesel, the main market for which is Europe, is a clean fuel additive made mainly from vegetable oils.
Goldman's report came as former World Bank chief economist Nicholas Stern released a report on Monday saying failing to tackle global warming could push world temperatures up by five degrees Celsius over the next century.
The growth of biodiesel is being underpinned by a European Union target on increasing the use of the clean fuel by 2010, Goldman said. The target has encouraged EU governments to support the biodiesel industry with tax breaks.
The bank said production of bioethanol, a biofuel made from grains or sugar and sold mainly in the United States and Brazil, is expected to grow by 13 percent by 2010.
Goldman said political support for the farming sector's new focus on feedstock for biofuels production was also a driver of growth.
"Both the European Union and the United States, and indeed emerging market governments, see the increased revenues to farmers as a political benefit placating the strong farming lobby," Goldman said.
Diesel Ping List
If you want on or off the DIESEL "KNOCK" LIST just FReepmail me........
Check Indiana too. New plants going up. Might want to check Iowa and Illinois too.
See next NEWS/Activism post on MO..........
"The target has encouraged EU governments to support the biodiesel industry with tax breaks."
I bet it's not just tax breaks. Although with the EU's high tax rates, that could be a big chunk of money.
I don't know. Rush Limbaugh just said there is no future in it. :)
Are you serious?.......He knows better.........
He must want to "talk it down" so he can get in on the ground floor all by himself............not that there's anything wrong with that......
Biodiesel - another fuel that utilises the mystical power of subsidy.
You don't call the a U.S. Fleet in the Persian Gulf a subsidy. You don't call the Gulf War , where we protected Suadi's A$$ES, and recovered Kuwaiti fields a subsidy.
Let's call a spade a spade.
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