Verbio biodiesel production falls 18 percent; company says German demand has collapsed on high feedstock costs, low diesel prices and higher taxes

In Germany, Verbio said that its biodiesel production has fallen from 93,907 in the first quarter of 2009 to 78,866 tonnes in Q1 2009, compared to a production capacity of 112,000 tonnes per quarter. The company said that high feedstock prices and falling prices for fossil diesel have combined with rising German taxes on biodiesel to nearly kill off demand for biodiesel in Germany.

Rapeseed oil prices have increased by 100 euros per tonne this year. Germany recently announced that biodiesel blends would be limited by mandate to 5.25 percent of total diesel sales, instead of the 6.25 percent announced in the past as a 2009 target.

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