Agri-business specialist Clonbio challenges European Union aviation fuel law

Agri-business specialist Clonbio is joining forces with a European industry group to legally challenge an EU law barring some biofuels from use in air travel.

The Irish group and industry lobby Epure want to overturn a regulation passed in October which bans the use of ethanol made from crops as sustainable aviation fuel, because it is unjustified and will hinder the bloc’s efforts to cut greenhouse gas emissions.

Clonbio confirmed on Tuesday that its Hungarian subsidiary, Pannonia, and Epure, of which the Irish business is not a member, are challenging Regulation (EU) 2023/2405 on Ensuring a Level Playing Field for Sustainable Air Transport in the European courts on several grounds.

The company maintains there is no justification for excluding crop ethanol from use as a sustainable aviation fuel, particularly since the EU already allows it for road transport, as it is an effective way of cutting carbon emissions with no adverse impacts.

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It notes that there was no legislative process leading to the decision to exclude crop biofuel from the aviation regulation.

James Cogan, Clonbio’s industry and policy adviser, argued that the alternatives to crop ethanol were used cooking oil or hydrogen produced using green electricity.

He noted that there were questions over the origin of used cooking oil imported into the EU, which is investigating whether some of it is mislabelled to avoid taxes.

There are also concerns that increasing amounts of imported used cooking oil are palm oil, whose production involves rainforest destruction. Those fears stem from the fact that many exporting nations are rapidly stepping up waste cooking oil output while certifying bodies cannot establish the product’s sources in some cases.

Mr Cogan also noted that the renewable electricity system is years off producing hydrogen as it has yet to meet demands for sustainable household and business consumption, transport and economic growth.

“Crop biofuels don’t have the kerb appeal of fuels made from ‘waste’ or electricity, but they get the job done in a controlled way, without unexpected issues,” he said.

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Clonbio argues the policy will leave the EU with no hope of meeting sustainable aviation goals while competing against other parts of the world and that the most effective way of producing biofuel is from crops.

The EU regulation bars “feed and food crop-based aviation biofuels” as it says their production could displace traditional crops, putting extra pressure on available land.

However, Clonbion chief executive Mark Turley said the group produced food. The company processes grain by taking out the sugars and carbohydrates, and turning them into fuel and other products, while it returns valuable commodities such as proteins into food production.

“We are not taking food out of the system; if anything, we’re making the food chain more robust,” he said.

Clonbio and Epure are also challenging a rule blocking crop ethanol’s use in maritime transport.

Commenting on that move recently, Mr Turley told online trade publication Quantum Commodity Intelligence that EU rules were prompting groups such as his to switch investment to the US.

He warned that the bloc’s approach would mean it ends up a climate laggard when maritime and aviation markets harmonise around biofuels whose use EU regulations rule out.

Pannonia is one of Europe’s biggest bioethanol producers.