In Spain, national energy regulator CNE is recommending cuts in biofuel targets for some regions of the country, placing further pressure on Spanish biofuel producers already suffering from overcapacity and cheap imports. CNE said the autonomous cities of Melilla and Ceuta, which lie on the North African mainland, as well as the Canary Islands, should have targets for biodiesel and bioethanol consumption reduced.
The recommendation does not help Spanish biofuel producers who are already under pressure from a combination of overexpansion of the sector and more competitively priced imports from Argentina and Indonesia. The country’s 105,000 barrels per day biofuel capacity is still far more than demand estimates from Spanish state body IDAE. IDAE predicted up to 41,000 barrels per day of biofuel demand in Spanish transport fuels for 2011.
More background on the story from the Digest