Europe biodiesel urges EC to curb US B99 imports

17 October 2007 22:46  [Source: ICIS news]

HOUSTON (ICIS news)--The European Biodiesel Board (EBB) has urged the European Commission to resist imports of B99 (1% petro-diesel; 99% biodiesel) from the US, the biofuels organisation said on Wednesday.

Massive exports of subsidised US biodiesel are becoming an growing course of concern for the European biodiesel industry, the European Biodiesel Board (EBB) said in a statement released to ICIS news.

According to the EBB, the quantities of biodiesel coming into Europe from the US and the fact that those quantities are subsidised by the US government pose unfair practices and a potential threat to the health of the Europe biodiesel industry.

The EBB estimates about 700,000 tonnes of US methyl ester have entered the EU since January 2007, compared to 90,000 tonnes during 2006

Legislation is being pursued in Congress to eliminate a so-called “splash and dash” loophole in which foreign producers take advantage of a US biodiesel tax credit before shipping their commodities to Europe.

However, the EBB said “splash and dash” B99 represents less than 10% of  the shipments coming into Europe from the US.

“The most part of B99 is coming from US producers, using US agricultural raw material,” the EBB said.

The EBB said EU biodiesel producers are experiencing dumping competition from the B99 blends, while US biodiesel producers and farmers are enjoying the benefits of strong political supports.

By: Judith Taylor
+1 713 525 2653

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