Chapter1

ExecutiveSummary

Introduction1-1

MarketOverview1-1

HistoryandDefinitions1-1

EndUsersofBioethanol1-1

ConversiontoETBE1-2

RawMaterialsandBasicProcessOverview1-2

By-productsofProduction1-3

PhysicalProperties1-3

SummaryofKeyFindings1-3

EuropeanBioethanolMarketFindings1-3

MarketDrivers1-5

MarketRestraints1-6

FeedstockAnalysisFindings1-6

CerealFeedstocks1-6

SugarFeedstocks1-7

Conclusions1-8

Frost&Sullivan'sResearchProposition1-8

OurResearchProposition1-8

Chapter2

EuropeanLegislationandMarketDynamics

GlobalandEuropeanCommissionLegislation2-1

GlobalLegislation2-1

EuropeanUnionLegislation2-1

BiofuelDirectives2-1

EuropeanUnionImportPolicy2-2

EuropeanUnionImportDuties2-3

IncentivisationModels2-4

TaxRelief(withQuotaSystem)2-4

RenewableTransportFuelObligation(RTFO)2-4

BlendingMandate2-5

OptionalBuyOutsandFines2-5

FurtherModelsandTrends2-5

BiofuelsLegislationbyCountry2-6

AustrianLegislation2-6

TaxLegislation2-6

Gasoline2-6

Diesel2-7

Biofuels2-7

BelgianLegislation2-7

AgriculturalGrants2-8

CypriotLegislation2-8

CapitalCostSupport2-9

LocalSupport2-9

CzechRepublicLegislation2-9

AgriculturalIncentives2-10

DanishLegislation2-10

InvestmentProjects2-11

EstonianLegislation2-11

FinnishLegislation2-11

FrenchLegislation2-12

GermanLegislation2-13

GreekLegislation2-15

HungarianLegislation2-15

CropIncentives2-16

IrishLegislation2-16

LocalIncentives2-18

ItalianLegislation2-18

LatvianLegislation2-19

LithuanianLegislation2-20

CropSubsidies2-20

LuxembourgLegislation2-20

MalteseLegislation2-21

TheNetherlandsLegislation2-21

PolishLegislation2-22

PortugueseLegislation2-23

SlovakianLegislation2-24

SlovenianLegislation2-25

SpanishLegislation2-26

SwedishLegislation2-26

UnitedKingdomLegislation2-28

OtherIncentives2-29

TotalBiofuelMarketDriversandRestraints2-29

TotalBiofuelMarketDrivers2-29

LowerEnvironmentalPollutantsDrivesFavourableLegislation2-30

BiofuelsProvideGreaterDomesticEnergySelfSufficiency2-30

LegislationSpecificallyPromotestheIncreasedUseofBiofuels2-31

HighMineralOilPriceMakesBiofuelsaProfitableEnterprise2-31

UseofExistingInfrastructureandVehicleTechnologyMakesRapidMarketPenetrationPossible2-31

TotalBiofuelMarketRestraints2-31

BiofuelsCannotCompetewithFossilFuelsWithoutTaxRelief2-32

LackofLongTermLegislationMeansPlayersareReluctanttoInvestinProductionPlants2-32

LackofConsumerAwarenessLimitsGrowthRate2-32

Chapter3

IndustryChallenges

ChallengesFacingtheEuropeanBiofuelsIndustry3-1

IndustryChallenges3-1

CommodityPriceChangesMakeProfitMarginsUnpredictable3-2

ProcurementofFeedstockataCompetitivePriceisHardtoAchieve3-2

BrazilianEthanolImportsareVeryCompetitivelyPriced3-3

OilMajorParticipationNeedstobeMorePositive3-3

ReducingProductionCosts3-3

SecuringPoliticalSupportandLongTermTaxRelief3-4

DevelopmentofaEuropeanMarketforE85Fuel3-4

PoliticalChangesImpactBusinessModelsandMarkets3-5

FoodversusFuelDebateisBecomingaMoralIssueWhichMaySwayPublic

OpinionNegativelyTowardsBiofuels3-5

Chapter4

EuropeanBioethanolMarket

TotalEuropeanBioethanolMarket4-1

MarketOverview4-1

HistoryandDefinitions4-1

EndUsersofBioethanol4-1

ConversiontoETBE4-2

RawMaterialsandBasicProcessOverview4-2

By-productsofProduction4-2

PhysicalProperties4-3

MarketEngineeringMeasurements4-3

MarketDrivers4-4

BlendsofBioethanolandETBECanbeProducedWithGasolineandLow

LevelBlendsUsedWithNoNeedforEngineModifications4-5

ExistingFuelSpecificationsAllowBlendingofBioethanolandETBEinGasoline4-6

EuropeanBioethanolIndustrySupportsFailingIndustrialSectors4-6

PublicConcernofMTBEOpenstheWayforBioethanolandBio-ETBE4-7

FeedstockPotentialisVeryDiverseAllowingProductioninAllClimates4-7

BroadRangeofFeedstocksMeansSupplyisPlentifulandCostsareKeptLow4-7

ETBECanbeProducedUsingExistingInfrastructure4-7

Flexi-fuelCarsGiveEndUserstheOptiontoUseBioethanolWithoutHavingto

CommitFullytoaSpecificFuel4-8

IncreasedPowerOutputofBioethanolBlendsCanbeUsedtoMarkettheFuel4-8

MarketRestraints4-8

BioethanolandBlendsofBioethanolRequireCarefulStorageandHandling4-9

LowBlendsofBioethanolRaisetheVapourPressureofGasolineMakingthePassingofEmissionsSpecifications

DifficultandPutsBioethanolOutofFavourWithFuelProducersandVehicleManufacturers4-10

OilMajorsDoNotWanttoBlendEthanolDuetoLosingaShareoftheFuelMarket4-10

FuelSpecificationCaponEthanolPutsaLimitontheMarket4-11

UseofHighBlendsofBioethanolRequiresEngineAlterationsorFlexi-fuelCars4-11

MarketStructure4-11

PricingAnalysisandPlantCosts4-13

BrazilianEthanolInfluenceandEuropeanUnionPricingAnalysis4-13

PricingAnalysis4-13

PlantCostingModel4-13

SupplyAnalysis4-14

DemandAnalysis4-17

BelgianBioethanolMarketAnalysis4-19

SupplyAnalysis4-19

DemandAnalysis4-21

FrenchBioethanolMarketAnalysis4-23

SupplyAnalysis4-23

DemandAnalysis4-26

GermanBioethanolMarketAnalysis4-30

SupplyAnalysis4-30

DemandAnalysis4-32

ETBEMarketPotentialandDemand4-32

E85MarketPotential4-33

TotalMarketPotential4-33

HungarianBioethanolMarketAnalysis4-35

SupplyAnalysis4-35

DemandAnalysis4-37

ItalianBioethanolMarketAnalysis4-40

SupplyAnalysis4-40

DemandAnalysis4-41

TheNetherlandsBioethanolMarketAnalysis4-45

SupplyAnalysis4-45

DemandAnalysis4-46

PolishBioethanolMarketAnalysis4-49

SupplyAnalysis4-49

DemandAnalysis4-50

SpanishBioethanolMarketAnalysis4-53

SupplyAnalysis4-53

DemandAnalysis4-55

SwedishBioethanolMarketAnalysis4-58

SupplyAnalysis4-58

DemandAnalysis4-60

UnitedKingdomBioethanolMarketAnalysis4-63

SupplyAnalysis4-63

GreenergyFuelsLtd4-64

HarvestEnergy4-65

DemandAnalysis4-66

DevelopingBioethanolMarketAnalysis4-71

AustrianBioethanolMarketAnalysis4-71

SupplyAnalysis4-71

DemandAnalysis4-72

CypriotBioethanolMarketAnalysis4-74

SupplyAnalysis4-74

DemandAnalysis4-74

CzechRepublicBioethanolMarketAnalysis4-75

SupplyAnalysis4-75

DemandAnalysis4-76

DanishBioethanolMarketAnalysis4-78

SupplyAnalysis4-78

DemandAnalysis4-79

EstonianBioethanolMarketAnalysis4-82

SupplyAnalysis4-82

DemandAnalysis4-82

FinnishBioethanolMarketAnalysis4-85

SupplyAnalysis4-85

DemandAnalysis4-86

GreekBioethanolMarketAnalysis4-89

SupplyAnalysis4-89

DemandAnalysis4-90

IrishBioethanolMarketAnalysis4-92

SupplyAnalysis4-92

DemandAnalysis4-93

LatvianBioethanolMarketAnalysis4-96

SupplyAnalysis4-96

DemandAnalysis4-97

LithuanianBioethanolMarketAnalysis4-99

SupplyAnalysis4-99

DemandAnalysis4-99

LuxembourgBioethanolMarketAnalysis4-101

SupplyAnalysis4-101

DemandAnalysis4-102

MalteseBioethanolMarketAnalysis4-104

SupplyAnalysis4-104

DemandAnalysis4-104

PortugueseBioethanolMarketAnalysis4-106

SupplyAnalysis4-106

DemandAnalysis4-107

SlovakianBioethanolMarketAnalysis4-109

SupplyAnalysis4-109

DemandAnalysis4-109

SlovenianBioethanolMarketAnalysis4-111

SupplyAnalysis4-111

DemandAnalysis4-112

Chapter5

BioethanolFeedstockAnalysis

IntroductiontoFeedstocks5-1

FeedstockOverview5-1

StarchSources5-1

SugarSources5-2

LignocellulosicSources5-2

WheatvsBeet5-3

LegislationandInscentives5-4

SugarRegimeReview5-4

EnergyCropSubsidies5-6

SinglePaymentScheme(SPS)5-6

SingleAreaPaymentScheme(SAPS)5-7

FarmingAnalysis5-7

FarmingOverviewandDecisionProcesses5-7

AgriculturalDecisionMakingDrivers5-8

TheImportanceofFarmCashflowandStorage5-9

TheRoleofMerchants5-10

CerealProductionandEuropeanUnionLandAvailability5-11

EuropeanUnionLandArea5-11

EuropeanUnionCerealProduction5-11

GlobalWheatProduction5-13

SugarProduction5-14

SugarBeetYields5-17

MarketDynamicsandPricingAnalysis5-18

FeedstockDemandbySector5-18

FutureScenarios5-20

PricingStructure5-21

Chapter6

StrategicRecommendations

RecommendationsforMarketParticipants6-1

MarketRecommendations6-1

SeparateBusinessActivitieswithWhichtoLeverageBiofuelBusiness6-1

EconomiesofScale6-1

GreenCarbonFootprint6-2

FeedstockCostAdvantage6-2

BiofuelsMarketConclusions6-2

Chapter7

DatabaseofKeyIndustryParticipants

KeyMarketParticipants7-1

BioethanolProducers7-1

RetailersandDistributors7-4

IndustryandGovernmentOrganisations7-5

TechnologyandPlantSuppliers7-7

Chapter8

Appendix

Abbreviations8-1

ListofAbbreviationsandAcronyms8-1