08 October 2008 18:18 [Source: ICIS news]
TORONTO (ICIS news)--Germany’s decision to reduce biofuels quotas could force producers to idle some 600,000 tonnes of capacity, equivalent to six plants, next year, the country’s biofuels industry group Verband der Deutschen Biokraftstoffindustrie (VDB) said on Wednesday.
Germany's federal government cabinet decided this week to reduce biofuels quotas to 5.25% from 6.25% for 2009 and to freeze quotas at 6.25% from 2010 onward.
The cut came as critics in ?xml:namespace>
“This decision was unreasonable, there is no reason to reduce quotas,” said VDB general manager Johannes Lackmann, adding that the higher quota levels would have been technically feasible without any problems.
But with the reduction in quotas producers would be forced to close plants and lay off workers, Lackman said. The only winners were oil refiners, while biofuels producers and the environment were losing out, he added.
According to VDB, capacity utilisation in
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