06 December 2012 16:26 [Source: ICIS news]
LONDON (ICIS)--Verbio is halting its investment plans because of an uncertain regulatory environment for biofuels in ?xml:namespace>
Verbio added that it would stop investing in new biomethane plants in eastern Europe, and it would seek to cut costs and reduce jobs. It did not say how many jobs may be affected.
“At the moment we do not have any underlying foundation on which we could realise our investment plans reliably,“ CEO Claus Sauter said.
“The current situation shows that there is no reliable framework in
Sauter said that Verbio was responding to “ongoing, massive competitive distortions” in the German biofuel market caused by the import of subsidised palm oil-based biodiesel from
Another factor were “disproportionately large volumes of biodiesel based on waste cooking oil that are produced by dubious sources from all over the world and are counted twice in meeting biofuel quotas,” he said.
As a result, Verbio experienced a considerable downturn in its plant capacity utilisation during the summer months, in particular for biodiesel, he said.
Sauter acknowledged the EU’s trade proceedings against
The same was true for measures taken by the German government to tighten control mechanisms for biodiesel based on waste cooking oil, he said.
Verbio, for its part, would now be concentrating on its existing business, with a focus on optimising internal structures to ensure profitability, the CEO said.
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