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June sales of E10 gasoline in France set fresh record high at 393,000 cu m

June sales of E10, a gasoline blend with 10% ethanol, in France set a new all-time high at 393,000 cu m, according to the National Association of Agricultural Alcohol Producers (SNPAA).

This represents an increase of 1.3% from the previous record in May and of 12.6% on the year.

French gasoline demand was also on an upward trend as it reached 949,440 cu m, up 0.9% on the month and 4.7% from June 2017, bringing the E10 market share to 41.4%, slightly up from 41.2% the previous month and above 38.5% a year ago.

Consumption of E85 declined 0.4% on the month but jumped 40.7% on the year to 14,764 cu m.

On a cumulative basis, E10 sales in the first half of the year totaled 2.112 million cu m, up 13.4% on the year.

A more competitive price at the pump due to tax breaks and the renewal of the car fleet, which increases the amount of vehicles compatible with E10, are some factors behind the surge in E10 consumption.

Moreover, since the beginning of the year, 217 more filling stations are now offering E10, bringing the total to 6,068, according to SNPAA.

In the first six months of the year, gasoline demand reached 5.052 million cu m, up 4.3% from the same period in 2017. This took the E10 market share to 41.8% from 38.5% a year earlier. Demand for E85 surged 40.7% on the year to 75,304 cu m.

As a result, French ethanol consumption in 2018 is expected to reach 1.075 billion liters, up from 965 million liters estimated for 2017, due to growing E10 and gasoline markets.

The French case has long been seen as the success story of E10 adoption and at a time of challenging market conditions, many consider widespread roll-out of E10 as the solution to excess production capacity in Europe.

On Friday, the UK government launched a consultation until September 16 on the subject and producers are hoping for implementation as early as possible. By the end of the year, there could also be some news regarding E10 in the Netherlands.

Post 2020, Europe will be faced with a crop cap for biofuels, set at the 2020 level, with a maximum of 7%. As a result, E10 adoption across Europe could help maximize ethanol consumption, therefore keeping that cap as high as possible up to 2030.

Fuente : - Chrysa Glystra -- Edited by Jeremy Lovell

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