FRANCE: November 21, 2005


PARIS - French Industry Minister Francois Loos wants the European Union to raise limits on the use of biofuels, a cleaner-burning fuel alternative, in petrol and diesel, according to an interview to be published on Monday.

As traditional fuel prices have rocketed, France, the biggest agricultural producer in Europe, aims to be the region's leading biofuel maker by 2010, when all fuels should contain seven percent of biofuel. "For my part, I am ready to modify the French limits on diestar (biodiesel) in gas oil. And I will go to Brussels to ask for a modification of the
European levels (of biofuels) in petrol," Loos said in the La Tribune newspaper.

Biofuels in France are divided between biodiesel largely made from rapeseed which is then blended with diesel and ethanol, a combustible fuel made from beet or cereals which can be blended with conventional fuel.

Loos and Agriculture Minister Dominique Bussereau will meet with the biofuel industry on Monday to discuss plans to double production with 1.8 million tonnes of new biofuel capacity in order to reach its 2008 production target.

This will add 1.3 million tonnes of biodiesel and 500,000 tonnes of ethanol, which will create savings in oil of some 30,000 tonnes of oil equivalent and cut carbon dioxide emissions by at least 4 million tonnes.

Source: REUTERS NEWS SERVICE