27 November 2007 13:48 [Source: ICIS news]
STOCKHOLM (ICIS news)--Swedish agro company Lantmannen said on Tuesday that there had been a "small improvement" in pricing which has given the firm respite of about a month from its plan to mothball its biodiesel plant.
An undisclosed customer has offered a better price for the firm's biodiesel output.
“The price of rapeseed oil is far from stable. The price of biodiesel must come up a bit more for reasonable margins,” said Per Erlandsson, plant manager at Lantmannen’s Karlshamn plant.
The price of the by-product glycerine has also risen considerably in recent months.
Lantmannen said in early November it would mothball its biodiesel plant from 1 January 2008 due to high rapeseed oil prices that could not be passed on to end users.
“The threat of closure is still there. We will make a decision in December. If the trend of better prices continues, then maybe we will cancel the mothballing,” he added.
Bookmark Simon Robinson's Big Biofuels Blog for some independent thinking on biofuels
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