Step this way to get your daily fix of green news, eco product launches and videos delivered by email.
The biodiesel industry in Germany is nearing a state of collapse because of a tax increase that kicked in at the beginning of the year, claims a Reuters report.
Biodiesel refiners in Germany are only producing at 10 per cent capacity, according to the report -- down from 20 per cent the year before. As a result of the downturn, some biodiesel manufacturers are taking apart their factories and selling the equipment to manufacturers in the US and Canada.
The problem? Like solar energy, biofuels still largely depend upon government support and subsidies. Biodiesel costs more than regular diesel; you don't have to dig deep wells in the ground to get at it, but making it requires growing crops and harvesting plant oils -- including waste vegetable oil and animal fat, but there's not nearly as much of that around as you'd think.
In the US, to make biodiesel competitive refiners are awarded subsidies. However, in Germany the government taxes biodiesel. The taxes began in 2006, reducing the competitiveness of biodiesel (which provides around 11 per cent less energy than regular diesel).
Ironically, the EU is currently implementing numerous green technology initiatives to reduce greenhouse gas emissions, and sales of biodiesel in Europe so far exceed those in the US. It’s just a shame refiners aren't offered more encouragement from a financial perspective.
Please note: Your email address must be entered but will not be displayed
Please note: All submitted content becomes the sole property of CNET Networks UK and may be used, edited or rejected at CNET Networks UK's sole discretion. You acknowledge that you, not CNET Networks UK, are responsible for the contents of your submission.
Step this way to get your daily fix of green news, eco product launches and videos delivered by email.
