The European Biodiesel Board (EBB) has called on the European Commission (EC) to take urgent action against Chinese biodiesel imports as the biofuel sector pauses projects and furloughs staff.
In a statement on 9 July, the EBB, which had brought a trade case before the institution, said it remained confident anti-dumping measures would be announced.
“However, the devastating effects of the situation are clearly shown throughout Europe … Chevron Renewable Energy Group has furloughed German workers, Shell paused the construction of a biodiesel plant in the Netherlands, BP is pausing a biofuel project in Germany and Argent Energy … closed a biorefinery,” the EBB said.
“While Chinese imports are not the only reason for these decisions, the biodiesel dumping has contributed to the difficulties producers face.”
As a frontrunner in climate ambitions, the European Union (EU) had created a regulatory environment and market for biofuels, the EBB said.
“While demand in Europe is only set to increase due to legislative initiatives in the Fit for 55 Package, the biofuels to supply this demand may not come from Europe. The effects in scaling down or even halting production in FAME (Fatty Acid Methyl Esters) and HVO (hydro treated vegetable oil) will be felt throughout the transport [sector] compromising Europe’s ability to produce the mandated fuel.”
Meanwhile, the Chinese biodiesel industry had developed over the past few years to almost exclusively target the EU market, the EBB said.
Against this backdrop, the association said some European producers that had continued to operate were selling their product outside the EU.
“Customers in countries like the USA, that have successfully shielded their industry from Chinese biofuels dumping, can offer more competitive prices. The EU remains the largest importer of biofuels in the world, while its domestic producers are forced to export,” the EBB said.
“The Fit for 55 Package will require a huge uptake for all renewable fuels and precisely when they are needed, business cases for investment have collapsed. The Commission has the tools to restore the level playing field,” EBB secretary general Xavier Noyon said.
An association for the EU biodiesel sector, the EBB represents producers using all feedstocks: food/feed crops, waste, residues, and other biogenic materials.