Czech Environment Minister announces $18 million next-gen biofuel project; first biofuel project proposed by Green Party member since food-vs-fuel controversy

In the Czech Republic, Environment Minister Martin Bursik of the Green Party announced an $18 million second generation biofuel project in Lovosice, in Bohemia that would be completed by 2012. The plant would be developed by state oil company Cepro and would be financed by the government, sales of the heat by-product, and EU subsidies. The plant, the minister said, would use environmentally-certified feedstock and meet the EU standard of a minimum 35 percent reduction in greenhouse gas emissions.

The mandatory blending of biofuels in the Czech Republic, scheduled for January 1, was delayed because the controlling legislation on air emissions has not yet been passed by the national legislature.

Although companies such as Ceska rafinerska and the state-run Cepro could implement the 2 percent biofuels mandate on a voluntary basis, they have said that reporting and accounting procedures have not yet been established to support compliance.

Earlier this year, the Czech Republic announced to a B2 mandate using canola oil as a feedstock, with E2 in force in 2008, and E3.5 and B4.5 in 2009, and E5.75 and B5.75 to meet an EU mandate. An article on the changeover indicates that carmakers are not honoring any warranty which uses a fuel mix outside vehicle operating manual specifications.

The Czech Republic is estimated to consume 675 million gallons of gasoline. The mandate will create a potential Czech market of more than 30 million gallons this decade.

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