Europe is expected to become the potential market for Russia’s biofuel industry as it has abundant biofuel resources to meet the growing demand in the continent.
Pyotr Kanygin, CEO, Russia’s Biotechnology Corp., noted that Europe could prove to be a big market for Russia’s biofuel industry, as reported by rian.ru.
The Corporation reveals that Russia is capable of exporting a total estimated volume of nearly 40 Million Tons biofuel per annum. Upto 36 Million Tons waste can be utilized to generate approx. 7 Million Tons biofuel after the processing of the Russian timber. “We could transport liquid biofuels, in particular, butanol, via already existing pipelines designed, for example, to pump gasoline, and there will be no need to build new transport networks,” said the Corporation.
For Europe, Biofuels are one of the highly promising projects. Sufficient assistance from Russia will give a boost to the project which, in turn, will drive the development of this sector.
Kanygin added that the Biotechnology Corporation has proposed amendments in Russia’s Forestry Code in order to ensure the timber processing companies dispose of as well as process the timber waste. The plan to develop biotechnology comprises of setting up 30 biotechnological companies, thereby creating 120,000 jobs in the Far East and Siberia, and to produce 2 Million Tons of motor fuel additives per year.
While biofuels are primarily used to supplement the conventional petroleum-based transportation fuels, heat and electricity could also be generated using these fuels. As an alternative to fossil fuels, biofuels can be used in existing vehicles with very little or no modification in engine.
Although they release carbon dioxide when burned in internal combustion engine, biofuels helps in reducing the net emission of carbon dioxide.
Previously, the complaints made by the European Biodiesel Board about the US biodiesel causing damage to the European biodiesel industry led the European Commission to impose temporary anti-subsidy and anti-dumping tariffs on the biofuel produced in the US.
According to a Research Analyst at RNCOS, “Europe may emerge as the potential market for the Russian biofuels. Moreover, Russia has better chances to export biofuels to Europe as biofuel resources are abundant in the country. Moreover, taxes imposed on the US biofuel export to the European nations have also simplified the way for the Russian biofuel industry.”
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