Europe’s biodiesel industry in crisis while Monbiot calls for a moratorium

by frog

Planet Ark reports that Europe’s biodiesel industry is facing trying times with over-capacity, falling retail sales and a new biofuel tax to be implemented in Germany. Germany, the EU’s largest biodiesel producer is facing a crisis with sales at petrol pumps currently down by about 30 to 40 percent compared to December 2006, and Petra Sprick, CEO of biofuels industry association VDB says “If the government further raises taxes on biodiesel in 2008 as it plans, the whole industry will close down.” German production is being cut and the first biodiesel refinery, BioWerk Kleisthohe, has actually stopped production at its 6,500 tonne a year plant. Meanwhile in the UK , Britain’s largest biodiesel producer Biofuels Corp plc announced earlier this month that due to unfavourable market conditions it had restricted production to 25 percent of capacity in January and February and output would remain low for the immediate future.

In New Zealand, starting in April 2008, the government will require 3.4 per cent of the total fuel sold by oil companies to be biofuels by 2012 through varying mixes of bioethanol and biodiesel. UK climate activist George Monbiot, is calling for a 5 year freeze on all targets and incentives for biofuels, until a second generation of fuels can be produced for less than it costs to make fuel from palm oil or sugar cane. On his recent blog posting he writes:

Already we know that biofuel is worse for the planet than petroleum. The UN has just published a report suggesting that 98% of the natural rainforest in Indonesia will be degraded or gone by 2022. Just five years ago, the same agencies predicted that this wouldn’t happen until 2032. But they reckoned without the planting of palm oil to turn into biodiesel for the European market. This is now the main cause of deforestation there and it is likely soon to become responsible for the extinction of the orang-utan in the wild.

frog says

Published in Environment & Resource Management by frog on Wed, March 28th, 2007   

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