The feasibility of 5.75% biofuels by 2010: potential and main constraints
In 2006 the Dutch government passed legislation decreeing that in 2007 2% of the transport fuels sold by oil companies must consist of biofuels, with this percentage rising to 5.75% in 2010. The Netherlands Environmental Assessment Agency MNP asked CE Delft to assess the feasibility of the oil companies honouring the 2010 obligation and identify any societal constraints that might stand in the way.
The report concludes that the 5.75% target will be hard to achieve, but not impossible. Although there is set to be a major increase in biomass and biofuel production capacity over the next few years, biomass supplies and production capacity will both remain tight, which is likely to drive up the cost of biofuels in the years ahead. Secondly, sales of this proportion of biofuels will be hampered by current fuel specifications. Finally, the vehicle fleet in the Netherlands is not yet equipped to handle this target of 5.75%. To remove these constraints, there will have to be a number of policy changes in the years ahead.