Changes in the legislation on biocomponents and biofuels

21 July 2010

Wojciech Jagnieza

The Polish Council of Ministers has provided assumptions to the draft amendments to the Act on Monitoring and Controlling the Quality of Fuels and the Act on Liquid Biofuels and Biocomponents, made by the Minister of the Economy.

Incorporation of the directive

The assumptions provide for the incorporation into Polish law of certain solutions of the 2009/30/WE Community directive, which took effect in the first half of 2009.

The directive allows a bigger amount of biocomponents in liquid fuels than previously. It also introduces quality requirements for gasoline containing up to 10% of bioethanol and for diesel fuel containing up to 7% of methyl ester. At the same time, due to the need to ensure the supply of gasoline for vehicles with engines unsuitable for gasoline containing more than 5% of bioethanol, the directive requires the introduction to the market (during the transitional period – 2013) of petrol with a maximum oxygen content of 2.7% and a maximum ethanol content of 5%.

New legislation

The new legislation also proposes a solution that will help implement the National Indicative Aim (NIA) - a minimum proportion of biofuels and other renewable fuels in the total amount of fuel consumed and liquid biofuels in transport during the calendar year. Introducing the possibility of adding up to 7% of esters to diesel fuel will lower the cost of carrying out the NIA in 2010 by about PLN 153 million.

Impact on the producers of biocomponents

Under the new legislation, the contractual term for the supply of agricultural raw materials for use as biocomponents will be extended from one to three years. It is estimated that this would help to ensure stable conditions for farmers involved in the production of biomass for use as biocomponents.

In the opinion of the Minister of the Economy the new legislation will have a positive impact on the development of the biocomponents and liquid biofuels market in Poland, as well as on the agricultural market. The new legislation should come into force in autumn 2010.