European biodiesel industry slammed by soaring costs, loss of green group support, production glut, loss of tax breaks and US competition

The Wall Street Journal provides coverage of problems in the European biodiesel industry, including a production glut, soaring costs, loss of support from green groups over the use of Malaysian and Indonesian palm oil, the cancellation of tax breaks by national governments, competition from subsidized US biodiesel, and a B5 blend wall.

European biodiesel now costs $4.80 to produce, compared to $2.80 per gallon for conventional diesel. European observers say that the problem is producing a commodity in the high-cost European zone, and that Europe ultimately must import its biodiesel.

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