The investment will span over a seven-year period. Speaking about the investment, the minister of natural resources Christian Paradis said: ‘By investing in this project we are helping to create and sustain local jobs and economic opportunities while creating a healthier environment for all Canadians.’

 The Biocardel Quebec plant will use animal fat and waste cooking oil to manufacture around 40 million litres a year of biodiesel, which will then be sold to Quebec-based diesel producers, in addition to producers located in the US. ‘We are very pleased with the government of Canada’s support. It will help to secure the future of our biodiesel production,’ commented Biocardel Quebec’s president Rene Delarus.

‘Biocardel’s production of biodiesel and our R&D work in algal biofuels and recovery of by-products will help to reduce greenhouse has emissions while promoting a sustainable environment.’ This CA$18.79 million investment is part of a $1.5 billion investment by the Canadian government that will take place over a total of nine years.

SOURCE: BIOFUELS NEWS

In justifying its stance the EBB explained that Argentine exports to EU had increased dramatically from less than 5,000 tons in July 2008 to almost 100,000 tons per month in July 2009, a twenty-fold increase. For the whole of 2009, Argentine exports are expected to exceed the 1 million metric tons threshold, as compared to only 70 000 tons the previous year.

This surge in Argentine biodiesel exports to EU is, claims the EBB, driven by a regime of differentiated export taxes (known as DETs). A system which, it says, creates a clear distortion, in the market, and one which needs rebalancing.

The differential between the 32% export tax on soybean oil and the 20% export tax on biodiesel creates a clear financial incentive to process soybean oil into biodiesel rather than exporting it, argues the EBB. This incentive is already substantial on paper, but is even higher in practice. The EBB says it has received indications that the tax differential between soybean oil and biodiesel is in reality in the range of 20% due to a number of ad hoc implementing rules. This information proved difficult to obtain despite EBB repeated contacts with Argentinean authorities and stakeholders.

The EBB is keen to stress that it has always been in favour of an open EU biodiesel market considering the EU’s objective of 10% renewable energy in transport by 2020. However, it is also keen to highlight the discrepancy in the market where Argentine biodiesel enjoys duty-free access to the EU biodiesel market, whereas Argentina levies a 14% customs duty on biodiesel from Europe and other countries.

The EBB is clear that it has to oppose any trade practices that distort competition between European and foreign producers. “EBB takes very seriously the challenge of Argentine biodiesel exports to EU. We stand ready to defend our interests, as we already did successfully against subsidised imports from the United States”, said Raffaello Garofalo, EBB Secretary-General.

In the view of EBB, it would be appropriate for Argentinean authorities to withdraw at the earliest opportunity the DETs regime currently applied on soybean products and biodiesel. The continuation of this trade distorting measure would call for an appropriate reaction from EU biodiesel producers.

Written by Giles Clark, London

Source: Biofuel Review