RTFA warns Government decision on subsidised US HVO puts UK biodiesel production at risk

The Renewable Transport Fuel Association (RTFA) has expressed deep concern following the Government’s decision not to implement the Trade Remedies Authority’s recommended anti-subsidy measures on imports of Hydrotreated Vegetable Oil (HVO) from the United States. Following an extensive investigation, the Trade Remedies Authority (TRA) concluded that imports of US HVO were subsidised and had caused injury to the UK domestic biodiesel industry.
The TRA recommended an anti-subsidy duty of approximately £260 (£303) per tonne to level the playing field.
Despite the TRA’s findings on subsidy and injury, and its recommendation that a trade remedy should be imposed, the Secretary of State, Jonathan Reynolds, has decided not to implement the measure, concluding it was not in the wider economic and public interest.
The RTFA believes the decision risks creating two serious long-term consequences for the United Kingdom.
Dickon Posnett, director of corporate affairs, Argent Energy, said: “As a company that has, in good faith and in response to government stated wishes, invested in UK manufacturing to use UK wastes and offset dependence on foreign imports of fuels, we are shocked by the government’s decision to put foreign imports ahead of UK manufacturing.
The Secretary of State’s announcement has made it clear that he believes it is in the country’s economic interest to accept long-term harm to, and quite possibly the loss of, renewable fuel investments in UK, and rather to encourage the short-term reliance on imports from the USA that in turn rely on heavy government grants.
This is a resounding message from the government and one that will not be received well by anyone considering investment in manufacturing.”
Alex Wolfe, chief executive of the Renewable Transport Fuel Association, said: “The issue here is much bigger than the price of a tonne of biodiesel today. It is about what sort of renewable fuels industry we want the United Kingdom to have in five, 10 or 20 years. We need more clean fuel production capacity, not less.”