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The Low Carbon Economy Ltd

20 Jan 2009 04:01:07

EU to examine US biodiesel exports

EU to examine US biodiesel exports
Surging imports of US biodiesel into Europe have prompted an investigation by the EU Anti-Dumping Committee.

According to the European Biodiesel Board, which requested the investigation, there was an increase of 40 per cent in the volume of US B99 biodiesel exported towards Europe.

That amounts to exports of over 1.5 million tonnes in 2008 compared to 1.05 million tonnes the year before.

US B99 biodiesel receives subsidies of about $300 a tonne (£216) by adding a "drop" of mineral diesel to biodiesel.

It can then be exported to Europe where it qualifies for subsidies and can be sold at a discount as a "pure biodiesel" giving it an advantage over EU biodiesel at market.

The EBB said: "The European biodiesel industry is more and more hit by the catastrophic consequences of B99 unfair exports and it will be necessary to ensure a strong reaction in the short-term to ensure the future viability of the EU biodiesel industry."

Last year the EU established that renewable sources must account for ten per cent of transportation fuels, with biofuels, electricity and hydrogen allowed to count towards the quota.



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