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August 28, 2007 | Jim Lane | Comments 0

European Union to turn unsold European wines into ethanol

In a tender offer announced by the European Union, 1.8 million gallons of wine from France, Spain, Italy and Greece will be offered for ethanol production.  The EU has used “crisis distillation” in several instances in the past to eliminate supply imbalances in the wine industry, but typically has distilled into industrial alcohol. The practice has been criticized in the past as a form of subsidized wine production, and because it forestalls reforms in the European wine industry which critics say are long overdue.

The ethanol initiative represents another step toward “second generation” biofuels, which utilize waste products, although fans of fine French wines may be aghast at the idea of Peugeots motoring along using Burgundy or Bordeaux for fuel.

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