The Ministry of Agriculture plans to support biofuel production with €90 million

The Ministry of Agriculture (MAA) plans to allocate €90 million to support the development of biofuel production, but some organisations are opposed to this and propose changes to the regulatory framework.

A survey launched by the Ministry of Agriculture on Monday to get the views and suggestions of citizens, non-governmental organisations and associations on funding for the development of biofuel production ended on Monday.

„Taking into account the results of the survey (BNS), the aim will be to adapt the financing conditions in order to avoid negative effects on competition, to use the funds more efficiently, to promote the development of green energy and to take decisions based on real needs, “, the ministry's statement said. 

According to the MoA, the aim is to continue providing support to companies after the expiry of the State aid scheme for the development of biofuel production at the end of 2023. Support for the production of rapeseed methyl (ethyl) ester and dehydrated ethanol will be financed from the state budget.

For his part, Domantas Tracevičius, head of the public institution "Circular Economy" and a member of the Consumer Alliance Council, says he does not support this support, which, according to him, is a "waste of public funds". 

„The use of biofuels not only has a negative impact on the environment and the climate, but, as a false solution, contributes to a less rapid electrification. Moreover, the mandatory blending of such biofuel additives costs consumers hundreds of millions of euros,“ the organisations said in a statement released on Monday.

They propose changes to the Alternative Fuels Act because biofuels are destroying permanent grasslands, biofuels produced from rapeseed are contributing more to climate change than petroleum fuels, and rapeseed fields are contributing to the loss of agroecosystems.