Higher German Biofuel Blend Will Raise Imports

from Guardian (UK) Unlimited:

Reuters
Thursday November 22 2007
By Michael Hogan

HAMBURG, Nov 22 (Reuters) - Germany's new plan to raise biofuel blending levels in fossil fuels will not help the country's crisis-hit biodiesel industry and will probably increase biofuel imports, an industry leader said on Thursday.

Germany's government said on Wednesday it plans a long term increase in biofuel blending to counter global warming. By 2010 it is planned to raise the level of biofuels blended into fossil diesel and gasoline from five percent now to ten percent, rising to 20 percent by 2020.

"This new plan will only generate huge imports of biodiesel for blending," Peter Schrum, head of German renewable fuels industry association BBK, told Reuters.

Schrum said that if the government wanted to increase biofuel use it should drop plans for biodiesel tax increases.

"An increase in the blending levels will have no affect on the German biodiesel industry because experience shows that the vast majority of blended biodiesel is imported," Schrum said, adding that the biodiesel used for blending so far this year has virtually all been imported.

"I estimate about one million tonnes of imported biodiesel will be blended this year in Germany. The only people who would benefit from higher blending would be subsidised producers in the U.S., Argentina and elsewhere."

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