US biodiesel to remain an export - industry

28 June 2007 23:19  [Source: ICIS news]

HOUSTON (ICIS news)--US biodiesel is likely to remain an export product due to the need for the product in Europe, industry leaders said on Thursday.

“Europe is net short on energy and net short in agricultural land,” a biodiesel producer said when asked about strong US biodiesel exports to Europe. Producers were attending the Platt’s Biodiesel conference in Houston.

Conference attendees also agreed that the “splash and dash” version of exporting biodiesel to the US was wrong for everyone concerned.

“Splash and dash” is the industry’s term for foreign biodiesel shipped to the US  for the purpose of claiming the $1/gal federal tax credit. The product is then exported out of the US for a profit.

The US and Europe have questioned such use of the tax credit.

The US is considering legislation that would close the loophole. The legislation is supported by the US industry and the National Biodiesel Board (NBB).

By: Judith Taylor
+1 713 525 2653

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