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30/09/2010 | Paris, 30 September 2010

PSA Peugeot Citroën and French farmers’ union FNSEA support the EU’s 10% biofuel target

PSA Peugeot Citroën and the Fédération Nationale des Syndicats d’Exploitants Agricoles (FNSEA), France’s largest farmers’ union, have been engaged in ongoing discussions to jointly develop biofuels in line with the objectives of the European Union directive on renewable energies, which sets a target of sourcing at least 10% of land transport fuel from renewables by 2020.

The two partners today emphasised the positive role these renewable energy fuels can play in reducing carbon emissions and underlined the need to take sustainability criteria into account in developing products and the related industry segments. PSA Peugeot Citroën and FNSEA plan to work together to meet the 10% target for both bioethanol and biodiesel, while at the same time guaranteeing each fuel’s high performance.

Introducing new fuel blends with a 10% renewable energy component will would immediately reduce carbon emissions, as the vast majority of vehicles on the road can run on such blends. If all Peugeot and Citroën vehicles used 10% biofuel, the annual reduction in CO2 emissions would exceed 800,000 tonnes.

FNSEA confirmed that French and other European agricultural resources are sufficient to deploy biofuel solutions without disrupting food supplies for the domestic or export markets. Furthermore, producers have the necessary capacity to reach the 10% target.

For its part, PSA Peugeot Citroën reaffirmed its commitment to the responsible use of biofuels, which offer an additional strategic path in the Group’s approach to carbon-free vehicles. The Group also emphasised the importance of making B10 – a 10% biodiesel blend – available quickly. Because of the high percentage of diesels in Europe, the resulting positive impact on carbon emissions would be amplified.

PSA Peugeot Citroën already guarantees that all of its diesel engines are compatible with fuels comprising up to 30% biofuel. This guarantee applies to the new e-HDi micro-hybrid and HYbrid4 technologies currently being introduced to the market.

Similarly, all Peugeot and Citroën models manufactured since 2000 can run on SP95-E10, an unleaded gasoline mixture containing up to 10% ethanol. The Group is working actively to improve its engines’ compatibility with higher ethanol blends such as E15, which can contain up to 15% ethanol.

“Farmers are proud to be involved in developing a green energy source,” said Jean-Michel Lemétayer, Chairman of FNSEA. “Aside from the environmental advantages, it creates jobs, helps to revitalise the rural economy and contributes to our energy independence.”

“Internal combustion engines will still represent 85% of the market in 2020,” said Philippe Varin, Chairman of the PSA Peugeot Citroën Managing Board. “Biofuels, combined with the innovative technologies that we are developing, should help us to reach Europe’s ambitious objective of bringing CO2 emissions down to less than 95g/km by then.”

Press Contacts:
FNSEA: Arnaud Lemoine – Phone: +33 (0)1 53 83 48 83
PSA Peugeot Citroën: Sandrine Raphanaud – Phone: +33 (0)1 40 66 33 53

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