Companies that are in the early stages of producing biofuel for aviation are critical of the government's investigators.

– The proposal itself does lead to increased production of biofuel, but not in Sweden, says Gustav Melin, CEO of the Swedish Bioenergy Association.

The production of biofuel for aviation is still in its infancy. Only 0.1 percent of all jet fuel refueled is biofuel, according to the International Energy Agency (IEA). 
But attempts are underway around Sweden to produce biofuel from Swedish raw materials, mainly from forest residues, such as twigs and sawdust.

Government investigator Maria Wetterstrand proposed this spring that a so-called reduction obligation be introduced for aviation. This means that those who sell fuel will be required to reduce emissions by a certain percentage, by mixing in biofuel. In this way, it is also hoped that the Swedish production of so-called biojet fuel will get going.

The consultation period for the investigation recently ended and the vast majority – including the airlines – are positive about the proposal for a reduction obligation. However, several companies, organizations and municipalities believe that Swedish production of biojet fuel will be limited.

There are no requirements for the type of biofuel to be used. This means that airlines will probably choose imported biofuel made from palm oil, for example, says Gustav Melin.

– Today it is cheaper to produce the fuel from vegetable oil. If it is on the market, it will be sold first.

The government's investigators agree that there is a risk that investments in Swedish biofuel plants will not materialize, but that according to the law, it is not permitted to provide state support to the industry at the same time as introducing a reduction obligation. Requiring that biofuel be Swedish-made is in turn contrary to EU competition rules.

Source: swedishradio.se

– It's a catch-22. If no one orders biojet fuel, you can't build a factory for production, says Gustav Melin.