EU Will Miss 2% Biofuels Target In 2005 - 1.5% More Likely - Reuters

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LONDON - "Europe will not succeed in its goal of having two percent of all transport fuels derived from biofuels by the end of 2005 but is making great strides in that direction, an EU official said on Wednesday.

The 25-member bloc is trying to promote biofuel use, notably biodiesel derived from vegetable oils, and ethanol, which can be produced from grains, sugar or biomass, as a "green" alternative to petroleum-based products.

"The EU directive sets a two percent target for end-2005, but we're not going to reach that. It may well reach 1.4 or 1.5 percent," Paul Hodson, an official at the EU Commission's energy and transport unit, said.

Speaking to delegates at Agra Europe's Outlook 2005 conference in London, Hodson said despite the projected shortfall, output of the greener fuel had risen sharply in recent years, largely because of tax breaks on fuel duties in top producing countries like Germany."

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