Yesterday, the oil price passed $100 per barrel. And, again discussions are trigged about sustainable alternatives.
Obviously, occasional high values, can not trigger major investments in bio fuels.But, last year the oil price increased by 58%, which is the highest increase since the 1990ties. Today the price seem to touch $100 per barrel a second time.
We believe that DME made from wastes from forestry will be competitive at $60 per barrel. DME is most likely the most competitive biofuel. It has the highest energy efficiency well-to-wheel. It is an excellent diesel fuel with high cetane number and emissions of NOx and PM can be kept low already during the combustion, by cost efficient measures.
Still we know that the cost for oil production in the Middle East is certainly below $10 per barrel. Which actors are prepared to take the risk to invest in biofuel production? The operators, our customers, need to take decisions that last for more than 10 years.
And, we see little political action to secure sustainable fuels in the long time perspective.