Germany and France Seek to Retain Gasoline and Diesel Cars

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The European Commission has presented a new Strategic Framework for strengthening the European bioeconomy. This plan aims to promote green growth, competitiveness, and resilience across the continent. The strategy focuses on the use of renewable biological resources from land and sea. It also emphasizes the development of alternatives to critical raw materials. The goal is to build a more circular and decarbonized economy. This should reduce Europe’s dependence on fossil fuel imports and support sustainable development. Download the press release: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_2819

Concerned about their automotive industrial bases, jobs, and growing competition from China, the heads of government of Germany and France issued a joint statement on October 16. New gasoline and diesel-powered cars could potentially still be found in European showrooms after 2035. Germany and France have reached a political agreement aimed at easing emissions regulations while simultaneously fostering European production. Both governments state that they remain committed to climate goals, while also seeking to safeguard Europe’s automotive manufacturing capacity. For the time being, the agreement does not alter EU law, but it does bring the bloc’s two largest economies closer together.

This would allow for the continued sale of certain internal combustion engine and hybrid models, provided that manufacturers meet a specific average threshold. This percentage does not imply that every individual car must emit 90% fewer pollutants, nor does it mean that exactly 10% of all cars are permitted to be equipped with an internal combustion engine. Germany has long advocated for this flexibility—a point I previously addressed in my article regarding Berlin’s demands concerning the sale of internal combustion engine vehicles beyond 2035.

France is gaining support for vehicles manufactured within Europe. In return, Germany is backing “Made in Europe” criteria for subsidies and public procurement. The objective is to ensure that public funds support European production and local suppliers—in a market where Chinese manufacturers are increasingly capturing market share, including in the hybrid vehicle segment.

Another point of contention fits into this context: the emissions scandal surrounding plug-in hybrids continues. The gap between the official CO₂ figures for plug-in hybrids and their actual emissions during real-world driving is widening. This undermines claims regarding their climate benefits and misleads consumers. On average, the real-world emissions of plug-in hybrid vehicles (PHEVs) registered in 2024 are nearly six times higher than the official figures. Furthermore, the problem is intensifying: the actual emissions of PHEVs are now only 14% lower than those of conventional gasoline or diesel vehicles—even though official test results promise an 83% reduction. What does this mean for drivers? Operating a plug-in hybrid (PHEV) costs users up to 680 euros more per year than the manufacturers’ figures suggest. Given the ongoing crisis in fuel prices, this is far from good news.

The EU can address the discrepancy between official figures and real-world emissions by adjusting the so-called “utility factor” for PHEVs. This factor determines what proportion of the total distance driven is considered to be covered in all-electric mode for the purpose of calculating emissions. EU member states are currently debating whether to align the official calculation method more closely with actual emissions—thereby encouraging genuine technical improvements—or whether to continue allowing manufacturers to obscure the true environmental impact of their vehicles. The T&E chart (see attachment) provides a detailed look at the latest data, illustrates how adjusting the utility factor has already improved the efficiency of PHEVs in the past, and explains how the taxation of PHEVs should be structured to create incentives for optimal technical performance.

With the 17th edition, “Biodiesel & Co. 2025/2026,” the Union for the Promotion of Oil and Protein Plants (UFOP) continues its annual publication series. This reference work (attached) provides an overview of the key legislative measures adopted at both the European and national levels during the reporting period to promote biofuels. In this context, the UFOP examines the energy and fiscal policies of the German federal government, which faces the challenge of having to invest substantial funds into defense capabilities within the framework of NATO.

In June, the average ethanol content of gasoline sold in the United States exceeded 11 percent for the second consecutive month. A large portion of the gasoline sold in the U.S. contains 10 percent ethanol—a blend known as E10—and new data from the EIA indicate that sales of mid-level blends, such as E15, and flex-fuel blends, such as E85, have increased this year. At the wholesale level, ethanol is priced at a discount of $1 per gallon or more compared to gasoline blends, and RIN credits—issued under the Renewable Fuel Standard—have provided additional value. https://ethanolrfa.org/media-and-news/category/news-releases/article/2026/09/ethanol-s-contribution-to-u-s-gasoline-supplies-is-at-record-high-helping-ease-pump-prices

Hebei Shoulang has been certified under the International Sustainability and Carbon Certification (ISCC) EU system as a producer of Recycled Carbon Fuel (RCF). The ISCC EU certification standard is recognized by the European Commission and meets the sustainability criteria set out in the Renewable Energy Directive (2018/2001/EU), which promotes the use of renewable energy sources. Hebei Shoulang is a wholly-owned subsidiary of Beijing Shougang LanzaTech Technology Co., Ltd. The facility employs a patented gas fermentation technology—licensed from LanzaTech—to convert waste gases from steel production into ethanol. As a result of this certification, the ethanol produced at the plant can be marketed as a Recycled Carbon Fuel, provided it meets the relevant requirements. https://ir.lanzatech.com/news-releases/news-release-details/hebei-shoulang-facility-using-lanzatech-technology-achieves

XCF Global has entered into a definitive agreement to acquire a renewable fuel production facility in Paramount, California. The acquisition is being executed through a newly formed XCF subsidiary, New Rise Renewables Paramount, LLC. The facility leverages existing infrastructure, technical expertise, and technologies designed to convert domestic agricultural waste into energy. Upon completion of the acquisition, XCF will retain the experienced team currently in Paramount; furthermore, the company plans to more than double the workforce over the next 9 to 12 months in order to resume operations. https://biomassmagazine.com/articles/xcf-global-announces-agreement-to-acquire-paramount-california-renewable-fuel-production-facility

The Supreme Court of India has rejected a petition that sought to mandate the labeling of ethanol content at gas stations and on fuel receipts. The petition also requested the creation of a vehicle-specific database detailing compatibility with various ethanol blends, a technical study on the impact of E20 fuel on vehicle fuel efficiency and longevity, and a transition plan for older or incompatible vehicles. A bench comprising Justices M.M. Sundresh and P.B. Varale dismissed the petition but directed the petitioner to approach the appropriate High Court; consequently, existing fuel labeling regulations remain unchanged. https://timesofindia.indiatimes.com/india/sc-dismisses-plea-seeking-mandatory-ethanol-content-disclosure-at-petrol-pumps-fuel-bills/articleshow/133643805.cms

OXCCU has produced initial samples of a synthetic blending component for the manufacture of sustainable aviation fuel (SAF). The fuel was tested against international standards by Intertek, a renowned chemical and fuel analysis firm. This marks another significant milestone in OXCCU’s journey toward the commercialization of cost-effective and scalable SAF. The successful test results confirm that OXCCU’s synthetic blending component—produced using a proprietary catalyst and a single-step process that converts CO₂ into fuel—meets the specifications of the ASTM D7566 standard (Annex A4) for “Fischer-Tropsch Synthesized Kerosine with Aromatics” (FT-SPK/A). https://www.oxccu.com/press-releases/oxccus-first-saf-blend-component-tested-and-verified-by-intertek

Ireland’s Renewable Gas Forum (RGFI), the Irish Bioenergy Association (IrBEA), and the Irish Composting and Anaerobic Digestion Association welcome the recent announcement that expressions of interest can now be submitted for the biomethane investment support scheme. The three organizations—which represent complementary areas within Ireland’s renewable gas, bioenergy, and anaerobic digestion sectors—strongly urge that projects already in the development phase not be excluded from receiving support. Furthermore, they call for the immediate publication of the legislative framework for the “Renewable Heat Obligation” (RHO). They also seek clarity regarding the scheme’s start date, its timeline, and its market design. Without the RHO, project developers continue to face uncertainty regarding the revenue streams necessary to finance new production facilities. https://www.renewablegasforum.com/biomethane-industry-representatives-jointly-welcome-progress-on-capital-grants/

Eni and PETRONAS have signed a Feasibility Agreement (FA) to explore the development of innovative, high-performance bio-gasoline. The initiative is based on the established Ecofining™ process, which Eni has used since 2014 to produce HVO (hydrotreated vegetable oil) biofuels from renewable feedstocks. The agreement aims to evaluate technical, market, and sustainability-related aspects, as well as the performance of new bio-gasoline products derived from renewable raw materials. These are intended for initial use in motorsport, with the findings subsequently informing the development of commercial products. This new agreement strengthens the collaboration between the two companies in the field of biofuels—a sector in which both partners already possess extensive technological and industrial experience—thereby supporting the gradual decarbonization of the transport sector. https://www.eni.com/en-IT/media/press-release/2026/09/eni-petronas-innovative-biofuel-solutions.html

In Greece, the start of test operations for the first facility producing compressed biomethane is imminent. The project is being developed by DEPA Trading in collaboration with CHITAS FARM at the latter’s site in Filippiada. The biomethane produced is intended for use as a fuel (bio-CNG), thereby expanding the availability of renewable fuels through DEPA Commercial’s “FISIKON” network of filling stations.

This development follows the granting of the country’s first permit for the construction of a biomethane production plant—in accordance with Law 5215/2025 and the regulations governing the installation and operation of such facilities. This marks a significant milestone in the implementation of the new institutional framework. https://www.depa.gr/depa-commercial-and-chitas-farm-greeces-first-compressed-biomethane-production-plant-enters-the-final-stretch/?lang=en

Miranda Water Inc. recently announced the successful completion of an industrial wastewater treatment pilot project at a site in Ontario, Canada. As part of a broader initiative by Kawartha Ethanol to recover substances from wastewater streams, the “MC200 Miracell®” system—a Rotating Biological Contactor (RBC) developed by Miranda—was deployed. Under the tested operating conditions, more than 98% of the targeted pollutants were removed. Based on these results, Kawartha Ethanol has decided to acquire the MC200 Miracell® system, along with additional treatment technologies from Miranda, to further optimize the entire purification process. The final solution combines biological treatment with further filtration and processing technologies from Miranda, specifically tailored to address the unique characteristics of Kawartha Ethanol’s industrial wastewater stream. https://www.einpresswire.com/article/949251104/miranda-water-technologies-completes-successful-industrial-wastewater-treatment-pilot-at-kawartha-ethanol

Researchers at the University of São Paulo have identified an enzyme derived from sugarcane that could improve the production of second-generation ethanol from agricultural waste. The enzyme, an α-L-arabinofuranosidase (ASD), helps break down the rigid cell wall structure of the plant. When the researchers added it to a commercial enzyme mixture, the release of sugars from sugarcane bagasse increased by up to sixfold. This discovery could enhance the economic viability of converting bagasse into fermentable sugars and biofuels, while simultaneously reducing reliance on microbial enzyme preparations. The researchers are currently investigating other plant-based enzymes with the goal of developing more effective—potentially even entirely plant-derived—enzyme cocktails. https://agencia.fapesp.br/enzyme-found-in-sugarcane-roots-increases-sugar-production-from-bagasse-sixfold/59431

BIOTECH ENERGY provides a technology that addresses the global challenges of environmental protection, climate protection and food security in one. The biotech company extracts renewable energy from biotechnological processes, thereby reducing greenhouse gas emissions. At the same time, it promotes sustainable food production and processing in order to meet the global demand for food.

BIOTECH ENERGY liefert eine Technologie, die die globalen Herausforderungen Umweltschutz, Klimaschonung und Ernährungssicherheit in hilft zulösen. Das Biotech-Unternehmen extrahiert erneuerbare Energie aus biotechnologischen Prozessen und reduziert damit Treibhausgasemissionen. Gleichzeitig fördert sie nachhaltige Lebensmittelproduktion und -verarbeitung, um die weltweite Nachfrage nach Nahrungsmitteln zu decken.

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