Biofuel chain development in Germany: Organisation, opportunities, and challenges

Increasing production activities have been observed in many EU member states since the EU Commission sent a clear signal establishing and supporting the bioenergy industry. This article discusses current sector developments and therewith evolving biofuel value chain activities and management requirements by means of two German biofuel processing firms. Usually, the processing company can be regarded as the initiator of the regional value chains. In order to safeguard the high initial investments and secure efficient supply, the processing company relies on contract farming or profit participation rights rather than spot market interactions. In addition to discussing that point, this paper also explores opportunities and threats for the suppliers of raw materials as well as for the processors. (C) 2007 Elsevier Ltd. All rights reserved.