Think tank Chatham House has warned that the UK's adoption of a
new EU directive to offer gasoline containing 10% ethanol, or E10, for sale at
forecourts could raise fuel prices by lowering fuel efficiency
Additionally, the UK Department for Transport has raised
concerns about possible damage to 8.6 million vehicle engines
that may not be compatible with the new fuel. Super E10 fuel is
already in use throughout Germany.
News organization PetrolPlaza reports, "The EU's Renewable Fuel
Transport Obligation requires 5% of the fuel supply of member
states to be renewable by 2014. This is due to increase in the
next seven years under the EU's Renewable Energy Directive,
which requires 10% of transport energy from renewable sources
by 2020. Oil companies have decided to use ethanol as this renewable source.
Most ethanol comes from the US, where it
is made from corn, while some comes from Brazil's sugar cane
and a small amount from British sugar beet."
Further information on the EU's use of E10 can be found in