International Effort Takes Critical Steps To Accelerate Growth Of Global Biofuels Market

The governments of the United States, Brazil and the European Union (EU)-the world's major producers of biofuels released an analysis of current biofuel specifications with the goal of facilitating expanded trade of these renewable energy sources. Spurred by increased market demands, this report was solicited by the U.S. and Brazilian governments and the European Commission (EC) on behalf of the EU, with the work conducted by an international group of fuel standards experts.

Biofuels-derived from biological materials such as plants, plant oils, animal fat and microbial byproducts-are gaining popularity worldwide as both energy producers and users seek ways to reduce greenhouse gas emissions, move away from dependence on fossil fuels and invigorate economies through increased use of agricultural products. As a result, biofuels are becoming an increasingly important commodity in the global marketplace.

One potential obstacle to achieving greater efficiency in the global biofuels market is confusion over differing-and sometimes conflicting-standards for characterizing the make-up and properties of biofuels. To clarify the current situation and identify potential roadblocks to improved compatibility, the U.S. and Brazilian governments and the EC convened a task force of experts from standards developing organizations (SDOs) to compare critical specifications in existing standards used globally (factors such as content, physical characteristics and contaminant levels that govern a fuel's quality) for pure bioethanol and biodiesel, two key biofuels. The White Paper published today identifies where key specifications in the standards are:

- similar (and can be considered compatible);
- different, but could be reconciled in a short period; or
- irreconcilably different as they stand.

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