Some biofuel firms enjoy ‘unfair advantage’

ONE of the country’s biggest petrol retailers is calling on the Government to continue an excise relief scheme for the sale of biofuels, describing the current market as an unfair playing field.

Motorists should start seeing greater availability of eco fuels at Irish forecourts next year as petrol retailers work toward an end-of-year deadline before which 2% of their annual sales must be from biofuels.

However, Chevron, owner of the Texaco brand, has said that other biofuel companies are operating at an unfair advantage with some having been granted extended excise relief licences, which will remain in place until 2010.

Texaco sought such a licence but wasn’t successful. But it is still obliged to have 2% biofuel sale by the beginning of 2009. Texaco intends arguing this point during a consultation process with the Department of Communications, Energy and Natural Resources in the run up to 2009 obligation. The company sells biofuel in the Netherlands and is due to start selling bio-diesel in Britain next year.

Topaz Energy, Shell and Statoil Distribution are due to enter the green market here next year, while Exxon Esso spokesman Dave Eglinton remained tight-lipped on his expected company’s foray into the biofuel market saying it “hadn’t made any announcement in that area”.

Maxol has been selling biofuel in this country for more than two years and has reported a 1,300% increase in sales — albeit from a small base.

Ireland is the third-best selling market for cars that run on biofuel — after Sweden and France. Car retailers expect this figure to grow year-on-year as fuel availability improves and as the new Vehicle Registration Tax and motor tax regimes make eco cars like Flexible Fuel Vehicles (FFVs) more attractive.

The Department of Energy’s Energy Policy White Paper sets down the obligation that all fuel retailers must sell 2% biofuel by end of next year, 5.75% by the end of 2009 and 10% by the end of 2020.

The biofuels obligation builds on the mineral oil tax relief schemes which saw 18 projects being awarded excise relief on biofuel production between 2005 and 2010.

According to Maxol marketing and retail general manager Brian Donaldson, the growth of the biofuels market depends on the growth of FFV cars.