1. Investing in polish bio-fuels sector
the characteristics of the business
environment
Wirtschaftuniversitaet - Wien
Doing business in C.E.E. Henry Sichel

2. 1. The business sector
Front-runners products for climate change issue
Bio-ethanol – substitute of gasoline
Bio-diesel - blended with mineral fuel
The bio-fuels generations…
First generations – food-crops derived
Second generation – non-food crops;
better environmental potential
100 agricultural refineries and few big players, but lack of incentives
Huge fossil fuel competition, but interesting growth
Doing business in C.E.E. Henry Sichel

3. 2. Why investing here?
Liberalization of energy market
Large agricultural surface for specifical energy crops
Kyoto Protocol and European engagement (10% in 2020)
Biofuel Promotion Plan, 2007
Availability of projects and market attractiveness
Confusing government decisions and enforcement of law
Possibility to export profits
Grants for investments and training and Special Economic Zones
Easy termination of employment
Doing business in C.E.E. Henry Sichel

4. 3. The market environment
• Pattern equally split between bio-diesel and bio-ethanol
Production • Potential plenty of raw materials
• Distribution problems (blending)
• Bio-fuels are not competitive
• Bio-fule Promo Program 2008/14: excise exemption;
Prices • -19% surplus costs over the production of fossil fuels
• 45€/ha. of subsidization for farmers
• Fines for below-the-bar blended fuels producers
• German market
• Poland: bio-ethanol ¼ gasoline share,
Consumers bio-diesel 1/9 diesel one
• Lack of awareness
• Opposition of car manufacturers
• 400 SMEs interested in producing biocomponents
Players
• few big players with high capacity and investment plans

5. 4. The non-market environment
• D. 2003/96/EC (excise exemptions are accepted)
Europe
• An E.U. strategy for Bio-fuel (mandatory bio-fuel targets)
• supportive measure for plants producing equipment for the
generation of bio-fuels/bio-components
National
legislation • Bio-fuel Support Program 2008-14
• Bio-components and Liquid Biofuels Act (2006)
• National private and public
Financing
• International private and public (E.U. structural cohesion fund)
Popularity • Of low environmental pollution solutions
Fossil fules • The variable of fossil fuels prices and availability
NIMC • Not-In-My-Car syndrome
Land-use • Natural, food or bio-fuel destination
Doing business in C.E.E. Henry Sichel

6. 5. Economic culture of polish managers and workers
Hierarchy, authority, formalities
Polarization between We (workers) and They (managers)
Hofstede index
High Power Distance: weak work ethic, no ask for suggestions,
temptation to «fight against the common enemy»
High Uncertainty Avoidance: lack of control about personal destiny
Low Individualism: engagement is important, but leadership is accepted
High Masculinity: personal success is not always welcome
Doing business in C.E.E. Henry Sichel

7. 6. Main problems and perspectives
Main problems:
• Bio-fuels are expensive;
• Confusing regulation and many «stops-and-go»
• Technical barriers (specially for second generation bio-fuels)
• R&D barriers (needs for improvement in ethanol production
techs)
• Distortive role of personal connections
Prospects
• Perspectives are interesting, because of European and national
interest;
• The game will be played on the field of different crops varieties,
increased productivity and consisten policy-making
Doing business in C.E.E. Henry Sichel