Press releases

EU directives for biofuels and bioliquids will be completed in phases


The EU’s decision to mitigate climate change has resulted in a number of directives and incentives that govern the operation of Member States. The increasing use of renewable energy recourses is one of the EU’s climate chance mitigation objectives. This is carried out, inter alia, by the RES directive, which in Finland is implemented by The Law on biofuels and bioliquids, that came into force first of July 2013.

There is also two other directives that are related to the same entity as RES directive: ILUC Directive and Biomass Directive for sustainability criteria for solid biomass. ILUC Directive is on a draft phase and going for the Council of Europe for processing. The Biomass Directive is yet to be drafted.

RES defines the raw material origin criteria
RES directive and the Law on biofuels and bioliquids set the criteria for the origin of raw materials used in energy production. For Finland the most important are the origin criteria for forest biomass that are related to biodiversity, land-use chance and appropriate traceability systems that prove sustainability.

The Law limits the primeval forests and protected areas outside of sustainable raw material sources. Also biologically-rich grasslands are included in the definition of the criterion.

Voluntary forest certification systems such as PEFC and FSC are partially suitable for the demonstration of sustainability. They meet the main points in raw material procurement and monitoring of origin.

Biorefining company Green Fuel Nordic Oy welcomes the criteria ensuring the sustainable origin of biofuels and bioliquids prepared by Energiamarkkinavirasto (Energy Market Authority). The Company’s core business is the production of second-generation biofuel, in which ensured sustainability of raw material is essential.

Concern about food supply is driving ILUC-directive
Increasing global demand for biofuels might lead to turning forests and wetlands into fields. The resulting effects on soil and vegetation carbon balance can significantly reduce or even reverse the climate benefits of biofuels.

The big concern is that existing food crop production areas will shift to the production of biofuel raw materials. It would lead to the clearing of new agricultural areas for food production. This phenomenon is called Indirect Land Use Chance (ILUC) due to increased production of biofuels.

The purpose of the European Comission’s proposal is to limit green house gas emissions caused by increasing use of biofuels and resulting indirect land use chances. According to the proposal this can be achieved, among other things, by limiting the share of traditional, ILUC emission risk causing – first generation – biofuels and bioliquids. The proposal also aims to promote the entry of advanced biofuels into the market.

The forest-based raw material utilized by Green Fuel Nordic Oy is not part of the food chain, and does not cause indirect land use chances. Thus, Green Fuel Nordic’s end-product is a genuine second-generation liquid fuel.

”We agree with the ILUC report approved by the European Parliament. The report limits the usage of first-generation biofuels in the future, as the raw material or farming of it competes with food chain”, says Green Fuel Nordic Oy’s CEO Timo Saarelainen.

The preparing of Biomass Directive is still being prepared
The third single entity related Directive is the so-called Biomass-Directive, which is being drafted by the EU.

Green Fuel Nordic’s opinion is that all the fractions obtained from the forest, such as chips, pellets, pulp wood and saw logs, should fall within the same scope of criteria of sustainability. This would automatically lead different fractions to the highest possible degree of processing path.

Additional information

CEO Timo Saarelainen
tel. +358 40 7076640

Green Fuel Nordic Oy on biojalostusyhtiö, joka liiketoiminta-ajatus on jo kaupallisessa käytössä olevan RTPTM-teknologian hyödyntäminen toisen sukupolven bioöljyn tuotannossa. Valitun teknologian avulla uusiutuvasta metsäbiomassasta voidaan valmistaa nestemäistä, rikitöntä bioöljyä, joka sellaisenaan korvaa fossiilista polttoöljyä. Green Fuel Nordic Oy aikoo rakentaa Suomeen lähitulevaisuudessa useita biojalostamoita. Lokakuussa 2011 perustetun yhtiön kotipaikka on Kuopio.

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