Poland turns to bio-power

As of January 1, 2007 it will be legal to sell biodiesel in Poland. The new laws encompass biodiesel composed entirely out of methyl esters, and diesel oil containing 20 percent added esters.  Biofuel producers will also be able to sell mixes tailored to the needs of transportation companies. The fuels industry has hailed the new regulations and a number of companies are planning to start production of rapeseed oil methyl esters.

Getting going

"We have been producing methyl esters for a month. Until now the legal regulations didn't allow  their sale in the country and all our production was sent to Germany," says Janusz Szostek, CEO of Solvent Dwory. He forecasts that production will amount to 50,000 tonnes by the end of the year and wants to reach the capacity of 100,000 tonnes in 2007.

WSE-listed Skotan, solely a tannery until recently, will also produce methyl esters. "Currently, we have construction plans for two plants with a total capacity of 300,000 tonnes of esters per year," says CEO Jacek Kostrzewa. At the moment, the company is conducting a public offering to raise the money for these investments from the bourse.

Doschem, which started as a fertilizer distributor, has applied for a building permit for a biofuel installation. "We are planning to launch production in June-July next year. The basic production level should amount to 50,000 tonnes of methyl esters," says Doschem's CEO, Andrzej Karpiński. The company also wants to sell tailor-made biofuels.

A million tonnes

Methyl-ester production should amount to 200,000-300,000 tonnes in 2007. But according to the National Biofuel Chamber (KIB), the sector's production capacity should amount to 600,000 tonnes of methyl esters per year by the end of 2007, as several installations may open during the year. It is estimated that more than one million tonnes of methyl esters will be produced by 2010.

Other companies which plan to launch methyl ester production soon are: J&S (two plants with 150,000 tonnes each), Becco (150,000 tonnes), Brasco (150,000 tonnes), Elstar Oils (100,000 tonnes), Kenro (50,000 tonnes),

Pawtrans (50,000 tonnes), Petroestry (30,000 tonnes) and Biopal (20,000 tonnes).

Big energy companies are also taking up biofuel production. Lotos' installation in Czechowice, which should start operating in February 2008, will produce 100,000 tonnes of methyl ester annually, while its Trzebinia refinery wants to increase production from 100,000 tonnes per year to 200,000 tonnes by 2008.

More to do

According to KIB the new regulations should satisfy the sector and should give birth to a biofuel market in Poland. However, KIB points out that excise-tax exemptions for biocomponents and biofuels should also be introduced.