LONDON (Dow Jones)--Ethanol output in the European Union continues to rise, but is down from the exceptionally high growth seen in recent years, data
issued by the European Bioethanol Fuel Association showed Monday.
E.U. ethanol output rose 11% in 2007 to 1.77 billion liters, which follows a 70% growth rate seen in each of the previous two calendar years.
Raw material costs rose to unprofitable levels and historically high imports from Brazil were historically cheap, said e-BIO on the slowdown in growth.
"A number of companies decided either to stop operating or delayed the start up of a new plant," said e-BIO. "Also construction of new installations were delayed and some projects were scrapped."
The move behind the higher output was mostly due a 97% surge in production in France. This in turn was partially offset by a reduction in seven out of the 13 producing member states.
With 578 million liters, France was the largest producing member in 2007, pushing the 2006 leader Germany down to the number 2 spot. Germany's output was reduced by nearly 9% on the year to 394 million liters.
The largest decline was in Sweden, which halved its ethanol production to 70 million liters.
In 2007 production went on-stream for the first time in Slovakia and the U.K.
E.U. ethanol consumption was estimated at nearly 2.7 billion liters, with imports accounting for about 37% of that total.
"The imported ethanol originated from Brazil and was consumed mainly in Sweden, the U.K. and the Netherlands," said e-BIO.
Source: Lisa Kallal, Dow Jones Newswires; (4420) 7842 9415; lisa.kallal@dowjones.com