Germany poised to block subsidized biodiesel imports soon

Platts ^ | 19 Jan 2009 | Platts European Marketscan

[thackney]

US-subsidized biodiesel exports which have overshadowed growth in the European biodiesel industry could be blocked by Europe's biggest fuel market in the next few months, according to industry sources.

The German government proposed a bill in October to turn away biofuels manufactured from imported soybean oil (SME) and palm (PME) and which benefit from foreign tax relief.

Soya-based biodiesel imports from the US are the subject of formal EU anti-dumping and anti-subsidy investigation after European biofuel makers said last year they were hurting Europe's fast-growing biofuel industry.

But in Germany a timeframe has been adopted towards completion of proposed alterations to new laws which govern changes and subsidies in biodiesel, sources said.

A second reading of the implementation of the new German laws will be pushed to an earliest date of March 5-6 or April 30, 2009. With a discussion in the Upper House of Parliament on March 16-20 or April 27-30 the bill will be finally submitted to the vote on April 3 or May 15.

"The bill is waiting to be passed through government. It's against the WTO rules to impose a ban on SME/PME, however, they could bypass the WTO on account of sustainability," Luciana Tomozei, project manager at the European Biodiesel Board said late last week.

While soybean oil and palm oil could still be imported, German consumers are concerned that retroactive tax levies could be introduced with some companies rejecting biodiesel cargoes manufactured from the so-called B99 blend of SME and PME as a result.

A decision from the EU on its anti-dumping investigation into B99 biodiesel could precede the German move, however, as Brussels is expected to come to a conclusion before March 12, when it could impose countervailing duties on EU imports of B99 biodiesel.

European imports of mostly US-sourced B99 biodiesel jumped to "well over" 1.5 million mt last year, 43% higher than the volumes imported during 2008, as importers continue to exploit US tax credits on the renewable fuel, the European Biodiesel Board said in a statement Thursday.

German demand for B99 biodiesel slowed recently with imports of B99 SME reduced to around 60,000 mt through October-November, but traders say imports have picked up to 100,000-150,000 mt in December. B99 imports are expected to remain at this level in January as sellers force cargoes to Europe with a majority of the product said to be unsold, as sellers "float and hope" to place the biodiesel when it arrives, one trading source said.

[Eric in the Ozarks]

Suggest the Germans have a look at Minnesota’s winter time experience with this stuff.

[EagleUSA]

The “green fringe” in the US continues to throw our money away and for what???? Your government in action. And we wonder why our debt and spending are TOTALLY OUT OF CONTROL.

[wolf78]

Suggest the Germans have a look at Minnesota’s winter time experience with this stuff.

Biodiesel is less problematic than straight vegetable oil. It has been chemically treated, so it doesn't congeal as easily.