Germany plans long-term rise in biofuels blending

HAMBURG, Nov 21 (Reuters) - Germany said on Wednesday it planned a long-term increase in biofuel blending to counter global warming, but the finance ministry said it would continue to raise taxes on biofuels which are reducing their usage.

Presenting a joint biofuels strategy agreed between the government, the automobile industry, oil companies and the farming sector, Environment Minister Sigmar Gabriel said Germany planned to raise the level of biofuels blended into fossil diesel and gasoline to 10 percent from 5 percent now by 2010.

By 2020, it was hoped biofuels levels would reach 20 percent, partly through use of new generations of biofuels which would permit more blending.