Further German biodiesel plants to fall in 2009
The decision by the German government to raise taxes on biofuels and to reduce blending rates in fossil fuels will mean more biodiesel plants in the country will face closure, a German biofuels industry association says.
Europe’s largest biodiesel industry has been operating at under 60% of its 5 million tonne a year capacity, Johannes Lackmann, CEO of German biofuels industry association VDB, comments.
‘Many medium and small size plants will have little chance of survival this year,’ he warns. ‘Some larger biodiesel plants will seek to export more to the European Union and east Europe, but a large number of smaller plants do not have the ability to do this.’
A tax rise of €0.06 a litre had been in the statute books for 1 January 2009, but the government agreed in late 2008 to cut this to a €0.03 rise after biofuel industry protests that the rise was making biofuels too expensive compared to fossil fuels.
The tax change however is yet to come into law and technically the €0.06 rise still applies. ‘As this change has not come into force we do not know what tax level we have,’ Lackmann says.
In October 2008 the government said oil refineries will have to mix 5.25% biofuels in fossil fuels from January 2009 instead of 6.25% previously planned.
The VDB estimates the change will reduce 2009 biodiesel demand by about 600,000 tonnes, reflecting output cuts from six biodiesel plants and more refinery closures were on the cards.
This change has also not been implemented meaning January's blending levels are also unclear.
Europe’s largest biodiesel industry has been operating at under 60% of its 5 million tonne a year capacity, Johannes Lackmann, CEO of German biofuels industry association VDB, comments.
‘Many medium and small size plants will have little chance of survival this year,’ he warns. ‘Some larger biodiesel plants will seek to export more to the European Union and east Europe, but a large number of smaller plants do not have the ability to do this.’
A tax rise of €0.06 a litre had been in the statute books for 1 January 2009, but the government agreed in late 2008 to cut this to a €0.03 rise after biofuel industry protests that the rise was making biofuels too expensive compared to fossil fuels.
The tax change however is yet to come into law and technically the €0.06 rise still applies. ‘As this change has not come into force we do not know what tax level we have,’ Lackmann says.
In October 2008 the government said oil refineries will have to mix 5.25% biofuels in fossil fuels from January 2009 instead of 6.25% previously planned.
The VDB estimates the change will reduce 2009 biodiesel demand by about 600,000 tonnes, reflecting output cuts from six biodiesel plants and more refinery closures were on the cards.
This change has also not been implemented meaning January's blending levels are also unclear.
Loading ...
