Bio-fuel - millions to be invested despite great uncertainty

A directive passed by Brussels which directs Europe Union (EU) members to replace traditional fuels has created problems for many countries as they are not yet ready for bio-fuels. The directive counts with most euro-citizens no longer using pure petrol or diesel as of next year. Most refineries and petrol stations will have to sell a mixture of petrol and alcohol, or diesel and MERO. From 2007, bio-elements should comprise up to 5.75% of the energy content of diesel and petrol. The content of the bio-elements should be gradually increased to reach this figure - by the end of this year the required level will be 2%. For EU members, bio-fuels will create major problems and few advantages. Their share of car fuels will still be too low to have a major environmental effect or decrease dependency on oil imports. Reaching the prescribed percentage of bio-components in fuels will be expensive for the state. Exact figures are not yet available, but according to the National Program of Bio-Fuel Development this process will cost Slovakia over 500 mil Slovak crowns (Sk) (13.158 mil. Eur) in 2007 and by 2010 total state budget contributions will double. EC Directive 2003/30/EC creates business opportunities for certain business groups. But to benefit from this development they will have to act fast. In 2010, 29,000 ha. of maize and a greater acreage of grain will be needed for the production of the required volumes of bio-ethanol and so farmers have a chance to benefit from this situation. But farmers still do not have a clear view of what their cooperation with refineries will be like. In Slovakia, bio-alcohol will be produced from maize or grain. Its price is currently around 100 euro (4 000 Sk) per ton. To produce 1 ton of alcohol, 3 tons of grain are needed. A faster solution for Slovakia could be mixing diesel with MERO as in this area sufficient production capacity already exists, currently a part of production is exported to Germany, according to the head of Palma-Tumys, I. Beblavy. In his opinion, the current production volume of MERO is sufficient to cover Slovak's bio-fuel requirements