BACKGROUND TO THE PRODUCTION AND USE OF BIOETHANOL AS FUEL IN HUNGARY

In Hungary difficulties in the utilisation of bio-fuels are mainly caused by problems of economy and not by technical problems. Currently, the key factor in development – according to the authors of this article – would be a new version of the relevant legal provisions, which would allow MOL (the Hungarian Gas and Oil Company) and other big consumers (like transport companies BKV, DKV), to mix bio-fuels in a higher proportion than 5% with 0% excise tax. Environmental, technical, and rural development aspects support such a change in the law. Moreover the 0% excise tax on bio-fuels is used in many other countries as well without significant deficit in the national finances. This would have a positive effect on the production and utilisation of bio-fuels, even in the present agricultural situation. Moreover, this would provide a sound economic basis for future developments and a perspective for other bio-fuel producers