The UK’s fledgling biofuels industry is under threat from
unfairly subsidised fuels from the United States, according to the
operator of one of Europe’s largest biodiesel plants.
Sean Sutcliffe, chief executive of troubled Teesside-based
biodiesel producer
Biofuels Corporation,
said biofuel production subsidies in the US were “severely
damaging” the industry in both the UK and the rest of Europe.
'Unfair subsidy'
European producers were left unable to compete with US imports
which were being sold below the cost of production, Mr Sutcliffe
said.
"It is damaging for biofuel producers but also for people
looking to put land to use for biofuel"
Sean Sutcliffe, Biofuels Corporation |
|---|
“This has led to what was a growing market for UK producers turning
into one where 75% of the market appears to be supplied from the
US.
“That’s an unfair subsidy. It is damaging for biofuel producers but
also for people looking to put land to use for biofuel.”
Restructuring
Mr Sutcliffe’s comments come after Biofuels Corporation approved a
restructuring plan allowing
Barclays bank to reduce
the company’s £100m debts.
At a board meeting on Monday (23 July) the company agreed to cancel
its
AIM
listing from 2 August and reregister as a private company under the
name Earls Nook Limited.
The firm has been
operating at 25% capacity since January, but at full capacity
the plant should use a 250,000 tonne blend of oil seed rape, palm
oil and jatropha, sourced from UK and European farmers.
| "When the market turns around we will return to full
capacity" |
|---|
'Loophole'
“We are running as normal, and when the market turns around we will
return to full capacity,” Mr Sutcliffe said.
“The issue in America is having a huge impact on the company. The
benefit US producers are receiving from the production subsidies
and the duty differential in Europe is not deliberate, but it’s
having a very real effect.
“We have been asking for the US government to sort out this
loophole and we have approached the
European Commission to help us set a level playing field. The
problem is this could take a long time.”
Related links:
Biodiesel firm in talks over £100m debt