German biodiesel market ‘dead’ – industry group

11 January 2008 15:51  [Source: ICIS news]

TORONTO (ICIS news)--Many German biodiesel producers are facing bankruptcy following a tax hike on biodiesel effective 1 January, industry association Verband der Deutschen Biokraftstoffindustrie (VDB) said on Friday.

 

“Only two weeks after the tax was hiked by 6 euro cents to 15 cents [a litre], our predictions came true: the market for B100 [100% biodiesel] is dead,” said VDB president Arnd von Wissel, adding that B100 accounted for about 60% of Germany's biodiesel market.

 

Coming at a time of sharply higher raw material costs, the tax hike was threatening the existence of the biodiesel industry - in particular smaller producers - and raised the spectre of thousands of job losses, Wissel said.

 

Wissel blamed in particular federal finance minister Peer Steinbruck who had pushed through the tax increase against strong opposition from the economics and agricultural ministers.

 

The tax hike was not rational as it was destroying an industry that federal and state governments had been promoting over past years, he said. 

 

Producers had made big investments to set up capacities, trusting that governments would maintain their support, said Wissel.

 

"I call on Steinbruck to immediately cancel the tax hike and rescue the industry," he added.

 

($1 = €0.68)

By: Stefan Baumgarten
+1 713 525 2653

< previous article(ICIS Chemical Business podcast November 2, 2009)

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