European groups call for ban on imported B99 from US

Europe’s Renewable Energy Association is asking the UK’s Department for Business Enterprise and Regulatory Reform and the European Union to ban cheap imported B99 biodiesel coming from the US. The groups say that B99 in the US is benefiting from a $1.00 per gallon subsidy and a $1.80 per gallon excise tax rebate from the UK on imported biofuel. As a result, US-made B99 is available for $860 per tonne, vs the $1,114 price of raw rapeseed oil.

US groups such as the National Biodiesel Board have supported these efforts, but lawmakers may take up to a year to reverse the subsidies.

Biofuels Digest first reported on September 3rd that European biodiesel producers were complaining about a US tax loophole. Traders have been importing Malaysian biodiesel, adding 0.1% petroleum diesel to make it a “blend” and exporting the resulting fuel to Europe, capturing a $1 blending tax credit.
The tax credit was intended to stimulate blending in the B5 to B20 range, but distributors are instead creating a B99.9 “blend” by adding one gallons of petroleum diesel per shipment of 1,000 gallons of biodiesel from Malaysia, and capturing the blending credit.

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