The European Biodiesel Board said on Wednesday (April 26) that output rose by 65 per cent to 3.2 million tonnes in 2005, making the bloc by far the world's largest producer of the green fuel.

The EBB says the trend is set to continue this year with capacity expected to rise to 6.07 million tonnes in the 25-member bloc, the Brussels-based EBB said in a statement.

"Both in terms of biodiesel production and capacities, the European Union continues to excel itself as the worldwide leader in biodiesel production," the EBB said.

In the United States, the world's second biggest biodiesel maker, production reached 250,000 tonnes last year.

Biofuels are split between biodiesel, largely made from oilseeds and then blended with diesel, and ethanol, made from sugar beet or cereals and then blended with gasoline.

Within the European Union, Germany remained the top biodiesel maker by far, with output of 1.6 million tonnes last year, followed by France (492,000 tonnes) and Italy (396,000).

Among new member states the Czech Republic produced 133,000 tonnes and Poland 100,000.

The EU, struggling to reduce its dependence on imported energy and seeking to cut damaging exhaust emissions, has set targets for biofuels to make up 2 per cent of transport fuels in each member state by 2005 and 5.75 per cent by 2010.

"Given that biodiesel makes up around 80 per cent of EU biofuel production -- ethanol being the other major biofuel, these figures confirm that the 2 pe rcent global biofuels target for 2005 has not yet been met," the EBB concluded