Global Bioenergies (Euronext Growth: ALGBE) welcomes the French deputies’ vote for the country’s 2019 finance bill, which stipulates an increase in the minimum amount of biofuels to be incorporated into motor vehicle fuel. This minimum will rise from 7.5% in 2018 to 7.9% in 2019 and then 8.2% in 2020. France’s roadmap provides for an incorporation rate of 15% by 2030, giving priority to local feedstocks. Biofuel players will thus be able to continue building plants and creating jobs in rural environments while reducing greenhouse gas emissions from transportation.
Last December, the French National Assembly passed the 2019 finance bill, which stipulates an increase in the proportion of biofuels in road transport. The minimum incorporation rate of biofuels, which in 2018 was 7.5% in energy density (corresponding to around 10% in ethanol volume in gasoline), increases to 7.9% in 2019 and 8.2% in 2020. The bill includes heavy incentives to encourage distributors to effectively incorporate the legal minimum amount of biofuels.
Lawmakers also give priority to local feedstock used to manufacture these biofuels. Additional provisions have been adopted in support of biofuels that come from residual or lignocellulosic matter; a specific segment that will represent 0.2 point in 2019 and then 0.4 point in 2020 is reserved for non-extractible sugars.
Bernard Chaud, Head of Industrial Strategy at Global Bioenergies, said: “This ambitious, sustainable progression will enable a continual increase in the consumption of biofuels in France. Over the course of this ramp-up, when the time comes, distributors will incorporate increasing volumes of high-performance biofuels blendable at a high proportion into gasoline, such as those produced by Global Bioenergies.”
Marc Delcourt, CEO of Global Bioenergies, said, “France has chosen the incorporation of sustainable biofuels as one of the main ways to accomplish its energy and environmental transition. Other European countries are adopting the same approach, in some cases even more intensively: for example, Finland is promising an incorporation rate of 40% in 2030, and Norway has decided to implement the first worldwide mandate of biofuel incorporation into jet fuel, in an amount of 0.5% in 2020. Our technology for producing renewable and sustainable hydrocarbons for the road and air transport sectors will be needed to continue this transition at the sustained pace environed in Europe.”