Spanish biofuel industry faces oversupply of biodiesel; ethanol supply, demand in balance

In Spain, local biofuels producers say that they will have no problem meeting the 3.4 percent ethanol targets set by the national government for 2009, but said that the biodiesel supply was still facing massive potential surpluses due to an influx of imports from Argentina and the US. The ethanol mandate, which will rise to 5.83 percent, will require only 689,000 tonnes of ethanol because many Spanish drivers have switched over to diesel fueled cars. production capacity for biodiesel will be, by contrast, 3.3 million tonnes with local demand estimated at 1.1 million tonnes.

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