Ewaba Spain slams unilateral breaking of natural gas contracts with biodiesel industry

In Spain, Europa Press reports the National Association of Producers of Biodiesel from Waste (Ewaba Spain) has denounced on Tuesday that the unilateral breaking of contracts signed by the different gas suppliers with this industry “will lead the sector to the red, with the consequent danger closure and the reversal of commitments to reduce greenhouse gases”.

According to Ewaba Spain estimates, the unilateral breaking of contracts will mean that the energy cost of the sector will go from representing between 10% and 15% of the transformation cost to 40% or 50% of the total.

In addition, it points out that due to this situation, companies must go to the market to negotiate and contract supply for 2022 with the highest historical prices and in a position of “overwhelming inferiority that will affect the entire sector in Spain.”

The organization also denounces that the “high costs” to which the biodiesel industry in Spain is exposed as a result of this situation will endanger the supply of these energies due to the closure of companies, which implies “a mandatory return to use of common finite fuels from oil “within the framework of the transport decarbonization process taking place in the European Union.

Ewaba Spain has asked the Government to adopt different measures to address this problem, among which are a reduction in VAT and Hydrocarbons tax, as well as more flexibility in the flow contracted in the industries, “as stated carried out during the confinement and that served to alleviate the production costs of the industry “, adds the association.