Blending levels and biofuels

BP and the German biofuel group Verband der Deutschen Biokraftstoffindustrie (VDB) have fallen out over the level of blending and the type of biodisel to be blended in Germany, according to a report on ICIS news

(Disclosure: I work for ICIS. About ICIS)

BP says the level is too high –and that car engine makers agree — and pointed out the impact that first generation biofuels are having on food supplies. (Separately I notice the BBC has a story about rising wheat prices being passed through to customers of Cornish Pasties ).
Instead BP, which has interests in Jatropha, says that hydro treated oils should be used instead.

The VDB’s reaction is pretty predictable, saying there’s enough capacity in Germany and anyway that the BP position would imply greater imports of palm oil and that could harm German biofuel makers.

Well excuse me. Shouldn’t the consumer get the cheapest biofuel irrespective of the source, subject to ethical standards in production being met? Why should German consumers be forced to buy expensive uneconomic biofuel if it can be made elsewhere, shipped to Germany and sold at the pumps for less than locally produced biofuel? I think that the WTO should look at the subsisides, and trade barriers that exist between the rich north and the poor south in all forms of biofuels.

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