A lifeline for European distilleries amid market collapse
April 2, 2025 – Brussels – Facing a major price collapse in the wine by-product ethanol sector, the European Commission has stepped in to clarify the regulatory framework, offering crucial relief to producers.
Following an appeal by WiDEN, a European association representing wine distilleries in Portugal, Spain, Italy, France, and Hungary, the Commission has confirmed that ethanol from lees and pomace is eligible for “double counting” under Annex IX of the RED 2023/2413 directive.
In an official response dated March 31, 2025, Kitty Nyitrai, Director of DG Energy C2, specified that only raw materials explicitly listed in Annex IX, such as lees and pomace, qualify for this benefit. Materials not listed in the annexes – including Annex IV of Implementing Regulation 2022/996 – do not qualify.
This clarification excludes first-generation ethanol and imported products, such as those from Brazil, from benefitting from advanced biofuel incentives reserved for Annex IX materials.
Strategic clarity for the sector
WiDEN welcomed the statement as a protective move against price dumping and unfair competition. Ethanol from lees and pomace contributes both environmental benefits and economic value, especially by converting problematic wine residues into sustainable biofuels.
Without this support, these by-products could turn into costly waste, undermining both the wine and ethanol industries. The Commission’s confirmation underscores the strategic role of distilleries in the circular economy and agricultural sustainability.
By reaffirming double counting, the EU provides market stability and recognizes the long-term value of wine-based ethanol – a win for both the climate and European producers.
