Moving to revive the national energy sector, the central government is seeking to revive Kazulian ethanol in a major way. Having
been plagued by Market by Mandate policies . The Renewable Energies Standards (RES) sets the volumes of biofuels that can be
blended into the national fuel supply. Gasoline blenders mainly meet their quotas by blending ethanol. Refiners have opposed the
entire concept of being forced to blend ethanol, and for being penalised if they don't. Refiners have spent billions of krona
complying with the ethanol mandates. That cost to the refiners is essentially a transfer of wealth to the ethanol industry.
Scholars have noted that the early stages of the first time development of the Kazulian ethanol industry, it had been heavily
reliant on subsidies and tariffs designed to keep foreign ethanol out of the national fuel supply. Whilst the subsidy collapse at
the turning of the 4500's, the RES remained. Despite the increase in mandated ethanol entering the national fuel supply, it has
never been able to be as prosperous as the government had intended for it to be. Whilst there have been calls for the government
to collapse the RES and to divest from Kazulian Ethanol, a report by the Department of Energy and Energy Affairs concluded that
the sudden collapse of the RES would trigger the immediate collapse of Kazulian ethanol, thus lobbyist for major ethanol
corporations have been continuously pushing for the government to inject emergency capital into the industry to keep it afloat.
On the backdrop of this development, Minister for Energy and Energy Affairs, Bjørn Hartmann has stated that he intends on
transforming Kazulia into an ethanol producing giant. At present, Kazulia particularly the County of Flindar has the potential to
produce around 1.1 billion gallons of ethanol, which account for around 30% of the national total. This is due to major
agricultural programme initiatives launched in the province decades prior to rehabilitate the county's fertile soil. Kazulia
concurrently maintains a energy strategy whereby it will satisfy its own domestic needs before selling the excess as exports.
This is the same strategy used in the ethanol and natural gas industries. The Minister has stated that he intends on introducing
a significant shift in this energy policy. He stated that he wants for Kazulia to produce the products and sell the vast majority
of the product as exports. Gasoline consumption in Flindar ranks the county in the lowest quarters, with statistics from the
National Institute for Energy Policy ranking the states by fuel consumption as follows: Kelvon, Dreton, Agatha, Hent and Flindar.
According to the NIEP, Flindar consumes around 1.5 billion gallons of gasoline per year. According to the NIEP, gasoline blended
with ethanol account for around 90% of the fuel supply. Apart from this, as mentioned prior, Kelvon consumes around 10-20% of the
ethanol it produces, selling the remainder as both a contribution to the national ethanol supply and as exports through a
fraction amount set by the government.
Flindar, due to the fact that it sells off the majority of its produced ethanol to other counties, companies and nations, must
import gasoline and other fuels to meet its energy needs. As mentioned prior, the county produces around 1.1 billion gallons of
ethanol, this could equate to potential self-sufficiency, if it uses the ethanol it produces. Minister Hartmann stated that he
had spoken with Findlar's County Mayor Arnstein Heimark on the potential nationalisation of the county's ethanol industry.
Currently around eight companies operate ethanol producing subsidiaries in the county, and Hartmann has stated that he intends on
pushing the agenda of nationalisation to Prime Minister Kenneth Sivertsen and Trade and Industry Minister Jeanett Caspersen. It
has been proposed that the County Government nationalise the Flindar Ethanol and Chemicals Corporation and transform the company
into a wholly-county owned company known as Flindar Ethanol. Currently, the largest ethanol producer in Kazulia is the PierPont
Chemical Corporation whole centres its ethanol production in Flindar and Hent with significant contributions from plants in
Lourenne and Northern Dovani.