EU biodiesel 2009: ups and downs
On the surface it all seems good news for Europe’s biodiesel industry with capacity growth at 16.6%, but a worrying number of idled plants put its true potential at bay.
The total production figure of 9 million tonnes is overshadowed by the EU27’s two-thirds idle capacity, said to be due in part to unfair trade practices on the global biodiesel market.
The European Biodiesel Board (EBB) says the region's biodiesel production capacity grew by 5 million tonnes to 21 million tonnes despite the closure of some smaller plants.
In 2008, Europe produced 7.75 million tonnes of biodiesel from a capacity base of 16 million tonnes, putting idle capacity levels at 51%.
The profitability of biodiesel producers continues to be hit by the circumvention of EU anti-dumping duties on subsidised US B99 biodiesel, shrinking domestic tax breaks and cheap imports from Argentina, EBB states.
The EU duties, imposed in March 2009, are being avoided by the trans-shipment of US biodiesel via non-EU destinations such as Canada, the EBB says.
It said differential export taxes in Argentina have also fuelled a boom in exports from the South American biodiesel producer, which reached 850,000 tonnes in 2009.
Biodiesel blending in regular diesel is still limited at 7%, strongly constraining the supply perspectives for EU biodiesel producers.
‘The EU will not reap the full benefits of its biodiesel industry if standardisation of higher biodiesel blends is not completed as a matter priority,’ EBB says.
European biodiesel production growth slowed last year from a 35% increase in production registered in 2008. Germany remained Europe's biggest biodiesel producer despite output slipping from 2.82 million tonnes to 2.54 million tonnes in 2009.
The EU remains the leading biodiesel-producing region worldwide, representing about 65% of worldwide output. In 2009, biodiesel represented about 75% of biofuels produced in Europe with ethanol production last year at 3 million tonnes.
The total production figure of 9 million tonnes is overshadowed by the EU27’s two-thirds idle capacity, said to be due in part to unfair trade practices on the global biodiesel market.
The European Biodiesel Board (EBB) says the region's biodiesel production capacity grew by 5 million tonnes to 21 million tonnes despite the closure of some smaller plants.
In 2008, Europe produced 7.75 million tonnes of biodiesel from a capacity base of 16 million tonnes, putting idle capacity levels at 51%.
The profitability of biodiesel producers continues to be hit by the circumvention of EU anti-dumping duties on subsidised US B99 biodiesel, shrinking domestic tax breaks and cheap imports from Argentina, EBB states.
The EU duties, imposed in March 2009, are being avoided by the trans-shipment of US biodiesel via non-EU destinations such as Canada, the EBB says.
It said differential export taxes in Argentina have also fuelled a boom in exports from the South American biodiesel producer, which reached 850,000 tonnes in 2009.
Biodiesel blending in regular diesel is still limited at 7%, strongly constraining the supply perspectives for EU biodiesel producers.
‘The EU will not reap the full benefits of its biodiesel industry if standardisation of higher biodiesel blends is not completed as a matter priority,’ EBB says.
European biodiesel production growth slowed last year from a 35% increase in production registered in 2008. Germany remained Europe's biggest biodiesel producer despite output slipping from 2.82 million tonnes to 2.54 million tonnes in 2009.
The EU remains the leading biodiesel-producing region worldwide, representing about 65% of worldwide output. In 2009, biodiesel represented about 75% of biofuels produced in Europe with ethanol production last year at 3 million tonnes.
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