What are the prospects for development in Switzerland?
The development of E85 in Switzerland is heavily dependent on certain key factors, such as:
· A guarantee of the sustainability of ethanol: today, ethanol’s image has been tarnished by bad press about it increasing the cost of foodstuffs and competing for arable land. Today, we know how to produce sustainable ethanol, and implementation of the new law on tax exemption (which imposes strict environmental and social criteria) ensures the promotion and distribution of sustainable biofuels in Switzerland.
· The price difference between tax-exempt ethanol and taxed petrol. This point is important for distributors, who have to allocate one of their tanks and a pump to E85. So the financial incentive plays a considerable role.
· A range of attractive flexi-fuel vehicles. For the moment, four car manufacturers are selling flexi-fuel vehicles in Switzerland: Saab, Volvo Ford and Renault. However, this number should increase since all manufacturers have the available technology. The demand is very strong in countries like Brazil, the United States, Sweden and Germany.
The country's first service station to sell E85 was opened in summer 2006, in Winterthur. Petrol distributor Agrola is playing a pioneering role, but other distributors are joining the fray. Companies and government administrations have already shown strong interest.
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