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Foreword
The EU is pushing ahead with
plans to impose anti-dumping duties, after soaring biodiesel imports from China
doubled within the past two years. The imports reached close to 1.5 million
tonnes, just before the 14-month investigation period started in December 2023,
from around half a million tonnes in early 2022. S&P Global have acknowledged
that ‘China's market share increased from 5.4% in 2022 to 8% during the 2024
investigation period, while the EU's domestic industry ceded some 10% of its
market share’. The union has therefore decided to move ahead with provisional
measures which apply from mid-August and impose a 36.4% duty on biodiesel and
hydrotreated vegetable oil (HVO) from Chinese producers. Around 40 companies
that assisted in the probe will benefit from a lower 23.7% duty. Additionally,
two extra Chinese producers will also be granted lower duties; EcoCeres Group
and Zhuoyue Group will see 12.8% and 25.4% duties applied to their imports,
respectively. These preliminary duties are anticipated to be replaced with
final measures from February 2025. Sustainable aviation fuel (SAF) imports are currently
exempt from the tariffs.
Exports to the EU reportedly
represented 90% of all Chinese biodiesel during 2023. The Netherlands was the
top importer in 2023, absorbing in 84% of China's biodiesel shipments to the
EU, followed by Belgium and Spain, Chinese customs figures revealed. However,
following the news of the probe investigation and in anticipation of the tariffs,
the shipments progressively shrank reaching just over 50,000 tonnes in June
2023. Further, traders stocked up on used cooking oil (UCO), pushing prices of
the feedstock up, while prices of biodiesel dropped in expectation of declining
demand for the Chinese supply. News agency Reuters reports that Chinese
biodiesel producers are now seeking new outlets in Asian markets for their
biodiesel exports such as Australia, Japan, South Korea and Southeast Asia.
Reuters states in their report that many smaller plants, which converted
from producing soaps and leather processing to manufacturing biodiesel during
the boom, are expected to stop production indefinitely. With lower prices,
biodiesel plants have cut their operations to a record low of under 20% of their
capacity on average this past July, which is down from a peak of 50% last seen
in early 2023...
Other news this month includes:
Policy
- American
Biogas council issues statement on proposed changes to California’s Low Carbon
Fuel Standard
- Biden-Harris
administration invests in domestic biofuels and clean energy as part of President
Biden’s investing in America agenda
Markets
- Latest renewable fuel
statistics
- Trafigura
completes acquisition of Greenergy
- More...
Research and Development
- New discovery boosts
bioethanol production efficiency and profits
- Study finds high fuel
quality in biodiesel supply chain
- More...
Bioethanol
- TruAlt
Bioenergy secures major order for 1G bioethanol from OMCs
- Telangana: Swacch Bio to invest Rs 1,000 crore to
establish 2G bioethanol plant
Biodiesel
- DB Cargo UK delivers HVO-powered
services for Drax
- Firefly wins Innovation of the Year award
- More...
Aviation and Shipping Biofuel
- OXCCU opens first-of-its-kind SAF
demonstration plant at Oxford Airport
- PETRONAS, Enilive
and Euglena reach final investment decision to construct a biorefinery in Malaysia
- More...
Price Information
Events