Dutch business opportunities in the Turkish biodiesel sector

To research possibilities for Dutch businesses to be involved in the Turkish biodiesel sector, a short literature study and unstructured interviews with sector stakeholders were performed. Turkey is interested to develop its biofuel sector particularly to improve its security of energy supply, more than climatic based reasons. Turkey is currently importing most of its energy needs. About 50% of oil is used for transportation. Biodiesel has been produced chiefly from imported oilseeds. However, the quantities of locally produced rapeseed and to a lesser extent safflower has increased strongly in the last few years. Biodiesel production grew from 2005 onwards but always remained under its capacity. In mid 2008 production was completely halted. Input prices were high and supporting policies were lacking. Mixing gasoline with biodiesel in Turkey is not mandatory. Economic reforms following the financial crisis in 2001 and a new direct foreign investment law has improved the investment climate for foreign investors. Current possibilities for the Dutch private sector to be involved in the Turkish biodiesel sector are however very limited. Local demand for biodiesel is low and a clear policy focus on biodiesel is still lacking.