German biodiesel industry, at 60 percent of capacity, faces more shutdowns as biofuel taxes are hiked

In Germany, increased biodiesel taxes have already reduced German production down to 3 million tons annually, out of a total capacity of five million tons. The German biofuels industry association VDB, said that higher taxes and a roll-baclk of a proposed biodiesel blending increase will put many small and medium size plants out of business. The industry is in a period of confusion, because of delayed federal legislation.

Last year, the government agreed to reduce a scheduled six-cent biodiesel tax increase to three cents, but the authorizing legislation has not passed and the six-cent increase went into effect January 1.

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