Biofuels development gaining pace in Norway

Tue 29 May 2007 View all news

Norway's revised national budget for 2007 targets a rise in the use of biofuels. Proposed new measures would demand that biofuels make up a minimum of 2% (volume) of road fuels next year, increasing to 5% in 2009, with a figure of 7% being considered for 2010, according to the country's Environment Minister.  Car-buyers choosing vehicles able to handle high-ethanol fuel would earn a rebate of NKr10,000 (€1,224) on one-off car registration taxes.

 In a further boost to the biofuel industry in Norway, the country's transport ministry commissioned a report which has found that biofuels produced from Norwegian wood could account for 30% of Norway's road transport fuel demands within 20 years. 10,000 jobs would be created along the way.

As investment in second-generation biofuels is promoted in Norway, the domestic biofuel industry could produce over 20 terawatt hours of biofuel energy per year, costing as little as NKr0.2 (€0.02) per kilowatt hour. Production on this scale could begin in 4-6 years. The scheme's potential, if borne to fruition, would dwarf the EU target of 10 per cent biofuel use by 2020.

Related Links

• ENDS article (21/05/07) - 'Biofuels Bonanza from Norwegian Wood'
• Norwegian government press release on wood-biofuel industry (in Norwegian)
• Norwegian government press release on budget proposals (in Norwegian)

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