Warsaw (Puls Biznesu) – Producers welcome the adoption of the bio fuel law by the Polish government. They would change it a little bit, however.
After the government had approved of the bio fuel law, shares of fuel producers grew. Skotan was rising even 15 percent during the day while Elstar Oils 7 percent. Producers were less optimistic than investors.
“The government it trying to conciliate all parties involved”, Marcin Buczkowski, the deputy CEO of Pulawy azote plant said.
ZA Pulawy plans to produce 100,000 tons of methyl esters annually.
The new law may be implemented on January 1 2007 if the Parliament approves of it and unless the President vetoes it or someone files a suit at the Constitutional Tribunal.
The law allows farmers to produce bio fuel for themselves. They are not allowed to sell the fuel.
“Fuel stations may be launched to deliver to the local market. They will deprive the state budget of funds and adversely affect the quality of bio fuels”, Wieslaw Kaczmarek, Brasco CEO and the former Minister of the Treasure said.
Moreover, the entrepreneurs do not know the financial conditions, which are to be stated in a separate law.
“We are waiting for the provisions concerning the excise duty. They will determine how profitable the projects will be. The most important is that taxes give incentives to develop this branch”, Marcin Buczkowski said.
The Polish government decided last Tuesday that till the year 2010 the minimum quantity of bio components in the fuel is to amount to 5.75 percent.
Elstar Oils is the only Polish company to have a full production chain for bio components. It is increasing capacity. Skotan said it was building two installations to produce 300,000 tons of bio diesel annually. PKN Orlen fuel giant owns Rafineria Trzebinia, which has been producing esters since 2004 and is the leader today. PKN Orlen will present its strategy concerning bio fuels in upcoming weeks. Grupa Lotos fuel company has already signed PLN 71m (EUR 17.5m) agreement to build installation producing bio components. Pulawy azote plants said at the beginning of the year it was considering building an installation producing 100,000 tons of bio components. The bio fuel law history dates back to the year 2003.
(PLN 1 = EUR 0.246)