France aims to lift maximum biodiesel blend level

PARIS (Reuters) - France will probably raise the maximum level of biodiesel that can be blended with standard diesel within a few months, a move key to reaching the country's ambitious biofuel targets, a farm ministry official said.

"We are working on a rise of the blending ceiling. If we raise it to seven percent we should be able to meet the 5.75 percent target," Bernard Chaud, biofuel specialist at the farm ministry, told Reuters.

France, the second biggest European producer of biodiesel after Germany, has set a goal for biofuels to account for 5.75 percent of calorific value of fall fuels sold in the country by the end of next year and seven percent in 2010.

Biofuel industry players have praised the objective, which goes beyond targets set by the European Commission. But they have said a strong obstacle is presented by current EU legislation that limits to five percent the volume of biofuel that can be directly blended with fuels.

Because biofuels have less calorific value than fossil fuels, the volume of biofuel sold will need to amount to 6.6 percent of all fuels -- above the current ceiling -- in order to reach 5.75 percent in calorific value, biodiesel makers said.

Made from plants, bioethanol and biodiesel emit fewer greenhouse gases than fossil fuels and have been hailed as an answer to both climate change and energy insecurity.

France has already notified the European Commission of its intention to raise the maximum blending level of biofuels in the country. At that time it suggested raising the level to 10 percent both for biodiesel and ethanol.

"The EU's answer was neutral to unfavorable concerning biodiesel but strongly unfavorable concerning ethanol, notably because of the difficulties in compatibility with existing cars," Chaud said.

As a result France focused on biodiesel and suggested raising the blending level from five to seven percent instead.

"Between five and seven percent we thought there was not a lot of difference. This is why we are now thinking of allowing the blending of biodiesel up to seven percent," Chaud said, stressing, however, that the decision would be taken by the industry minister.

A spokeswoman at the industry ministry said a decree to increase the maximum blend of biodiesel was in the pipeline but she declined to give a release date.

Industry and ministry sources said the measure would likely be taken before the upcoming elections. The first round of the presidential elections will take place on April 22.

Diesel currently sold in gas stations contains nearly four percent biodiesel by volume, often without consumers being aware of this. All biodiesel sold in France is directly blended with standard diesel, a fuel used by around 70 percent of cars.