BP is directing its investments in advanced biofuels to the U.S. and South America due to uncertainty about the European Union’s future regulatory environment, Phil New, head of BP Biofuels, told Reuters.
The executive said that the company was not contemplating investing in second-generation cellulosic (ethanol) in Europe because there was not enough certainty on what the market conditions would be like.
According to the article, the European Union had initially set a target that by 2020, 10 % of all fuels used in transportation should come from renewable sources. However, environmental issues have been raised in the bloc and the support has wavered. The debate created uncertainty about future regulation in the EU and stalled investment in first generation biofuels and also in advanced or cellulosic ones.