IRELAND’S FOREMOST expert in energy crops, Barry Caslin, has welcomed the decision of the EU to increase tariffs on the import of cheap subsidised biofuel from the US which has been causing havoc to the development of the sector in Europe.
He said the imposition of import and anti-dumping duties on biodiesel from the US would help stimulate interest in growing fuel crops.
“But we are not at the stage where it is possible to grow fuel crops profitably. We had to import rapeseed from abroad in 2008 because of the bad weather which meant we could only get 2,000 hectares of it grown when we needed 6,000 hectares of it to meet our requirements,” said Mr Caslin, who is the top expert in the area in Teagasc.
“The import of this biofuel was not helping us get the industry off the ground here, and it was a major barrier because it was not only subsidised at the rate of 20 cent per litre by US subsidies, but also benefited from the 37 cent per litre excise relief here,” he said.
He said in order to meet our EU commitments and targets the amount of biomass needed to meet the heating/electricity targets far exceeded current availability, so production of energy crops needed to expand rapidly.
He also said that the Biofuels Obligation Scheme and the National Action Plan need to take account of indigenous biofuel producers.
On Tuesday last a meeting of EU trade officials took the first step to address one of the industry’s main concerns, the import of cheap, subsidised biofuels from the US which has caused devastation to the EU’s attempt to grow a real biofuels and biomass industry.
From March 13th, US firms exporting biodiesel into the EU will have to pay tariffs for an initial six months, ranging from €26 ($32.88) to €41 per 100kg.
Many companies across the EU have abandoned or halted biofuel projects because of the low price of oil and the import of “B99” subsidised biofuel from the US which nearly doubled last year. The import of what is called “B99” – biodiesel blended with small amounts of mineral diesel in the US – has led to the cancellation of plans at France’s biggest biofuel plant to open two new units.
In Germany, Europe’s largest biodiesel maker, after promoting pure biodiesel with generous tax breaks, the government reversed its policy, throwing the sector into turmoil.
Ireland has four pure plant oil units operating and a major biodiesel plant in New Ross, Co Wexford. There has been a steady growth in wood pellet, elephant grass and willow production and the Irish Farmers’ Association has said 10,000 rural jobs could be created in the sector if it received full Government backing.