Fuelling the biofuels debate

The increasingly acrimonious spat between the EU and the USA over the dumping of subsidised diesel on to the European market, will do neither party, or for that matter the biodiesel industry, any good in the long run.

For those of you who have, so far, missed this particular piece of nonsense let me bring you up to speed. Early last year the effect of a piece of US Federal legislation, enacted in 2004, started to be felt in Europe. The legislation, designed to support the US biodiesel industry, effectively gave a subsidy of about $300/tonne, in the form of tax credits, to a B99.9 blend biodiesel. In other words, a drop of mineral diesel in the tonne of biodiesel produced a huge subsidy.

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