US biodiesel mandate does little to offset anti-dumping duties

09 December 2009 23:00  [Source: ICIS news]

(adds detail in paragraph 6 to add clarity)

MIAMI (ICIS news)--The US biodiesel mandate will offer only partial relief to the industry, which has been crippled with duties levied by its former primary market, the EU, a government economist said on Wednesday.

Before levying anti-dumping duties, the EU accounted for 95% of the exports from the US biodiesel industry, said Michael Dwyer, chief economist and director of global trade and biofuels analysis at the Foreign Agricultural Service, part of the US Department of Agriculture (USDA).

Dwyer was speaking to the CMAI World Methanol Conference.

The US mandate stipulates that 870m gal (3.29bn litres) of biodiesel must be in use by 2010, yet the US industry has the capacity to produce more than 2.5bn gal.

The effect of the EU duties have caused US production to fall from roughly 800m gal to less than 500m gal. Bankruptcy filings have become an almost daily occurrence in the US biodiesel industry, Dwyer said.

In addition to the duties, the recent EU renewable energy directive favours other biodiesel varieties over soy-based types, he said.

Doris de Guzman examines alternative processing, new technology, R&D and other sustainability initiatives in Green Chemistry
To discuss issues facing the chemical industry go to ICIS connect


By: Ross Yeo
+44 208 652 3214



AddThis Social Bookmark Button

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

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index