High rape oil cost mothballs Sweden biodiesel plant

02 November 2007 17:12  [Source: ICIS news]

STOCKHOLM (ICIS news)--Swedish agro company Lantmannen is mothballing a biodiesel plant because rapeseed oil prices are too high, it said on Friday. 

 

"It is impossible to maintain production,” Kenneth Werling, head of Lantmannen’s biofuels business, said in Swedish.   

 

Production is now running at a loss of 10 cents/litre ($0.15/litre).
 

The 45m litre/year facility, at Karlshamn in the south of the country, started up in May last year but the price of biodiesel failed to increase at the same pace as rapeseed oil.

"There are too many biodiesel industries coming on stream, combined with a mediocre rapeseed harvest,” said Werling.

 

"There are also low-cost imports of biodiesel from the US, where the production is subsidised to a greater extent than in Europe,” he added.

 

The company was aiming to halt production from 1 January and it would resume when price conditions became more favourable, it said.

 

By: Staff Reporter
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