Germany’s biofuels industry loses its edge - association

10 February 2009 19:10  [Source: ICIS news]

TORONTO (ICIS news)--Germany’s biofuels industry is losing its competitive lead because of a drastic reversal in the country's government policies, trade group Verband der Deutschen Biokraftstoffindustrie (VDB) said on Tuesday.

After supporting the sector and encouraging firms to invest in new capacities, legislators were now poised to cut biofuels quotas to 5.25%, from 6.25%, and to increase taxes on biodiesel, VDB said.

“First, [Germany’s] politicians promote biofuels and help create a world-leading technology edge,” Stephan Reimelt, board member of plant builder MAN Ferrostaal, said in a joint statement with VDB.

“Then, after only two years, misdirected legislation leads to an investment disaster costing several hundreds of millions of euros,” he said.

Reimelt and VDB general manager Johannes Lackmann called on legislators not to change the law, in order to ensure continued stable operating conditions for the industry.

Lackmann added that 20% of VDB’s 32 member companies had already stopped production while others had introduced short-time working hours because of the uncertainties associated with the proposed legislation.

However, Germany’s oil refining industry said it supported the government’s move as a first step towards a responsible biofuels strategy.

Biofuels blending was one of the most expensive climate protection options, a fact that the government had to bear in mind when setting quotas, especially in light of the tough economic conditions, the Mineralolwirtschaftsverband (MWV) said.

Refiners also supported the government’s efforts to quickly find a consensus on the regulation and certification of the environmental sustainability of biofuels.

Increasing biofuels use and rising import volumes underlined the need for a comprehensive certification of sustainability, regardless of source country or production process, MWV said.

To discuss issues facing the chemical industry go to ICIS connect
Bookmark Simon Robinson’s Big Biofuels Blog for some independent thinking on biofuels

By: Stefan Baumgarten
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly