The enormous damage over done by “splash-and-dash” imports of American

The enormous damage over done by “splash-and-dash” imports of American biodiesel was highlighted yesterday when one of the UK’s boss operators, D1 Oils, noted it was remaining down all its modification operations in britain abutting running up a 46m annual loss.

The company, which is listed on the London Stock Exchange, said in destiny substantive would concentrate on developing jatropha planting in other parts of the world in cooperation with the grease group BP, and said it had raised 15m of new money to implant the financial side of the business.

Nearly 90 staff in Middlesbrough and Bromborough, Merseyside, may lose their jobs as the newly built biodiesel refineries and research laboratories are shut down. D1 commit hope to supply the sites and equipment but said the economics of the dash have been now forasmuch as poor that it would be fortunate to make much on their disposal.

Elliott Mannis, the D1 sans pareil executive, said positive was “extremely frustrating” that the company had been compelled to fawn out of refining because nothingness had been accomplished to eliminate the deluge of B99 biodiesel – biodiesel with 1% petroleum diesel – from the US. “It’s an unbelievable situation and there is no reach in sight,” he added.

The biofuels foremost said the “upstream” side of the business, by contrast, had very good prospects as demand for biodiesel was rising all the time. The company insists that its jatropha planting on 192,000 hectares of sleep in India and Africa is fully sustainable and is not competing with food crops.

Some environmentalists opposed D1’s strategy, confrontation jatropha was not always naturalised on marginal land adverse for food crops. But Mannis denied this: “We encourage farmers to ripe jatropha on their disapproved land and do not assist planting on arable land.” He referred to the first usable jatropha would be ready this year.

City analysts specific disappointment at D1’s annual losses, which compare stash a deficit of 12.6m leverage 2006, and united that the US subsidy regime had wrecked refining margins. “The withdrawal from refining comes as no surprise given that refining biodiesel in Europe is not going to betoken viable until the ‘splash-and-dash’ double subsidy is ended and significant amounts of cheaper feedstock (such whereas jatropha) come on stream,” said a research note from the stockbroker Ambrian Partners.

Splash and dash is where biodiesel is shipped to the US (sometimes from Europe) to add a leapfrogging of commonplace diesel and take advantage of government subsidies on part refining done in the US.

The European Biodiesel Board of producers will formally report on these issues to the European commission also hopes it can base pressure on capitol to end the practice.

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