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German Biodiesel Sales Strong as Oil Prices Rise |
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Written by Robert
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Thursday, 01 September 2005 |
from Planet Ark and the REUTERS NEWS SERVICE...
German Biodiesel Sales
Strong as Oil Prices
Rise
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GERMANY:
August 19, 2005
HAMBURG - German demand for biodiesel fuel made from
rapeseed is rising as
soaring oil prices make vehicle operators seek
alternatives, Germany's
biodiesel industry association said on
Thursday.
"Biodiesel demand has significantly increased in the past
few months as oil
prices rose so high," said Karin Retzlaff, of the
association of German
biodiesel producers VDB.
There are no official sales
statistics. "We have the impression sales are
growing especially in the
trucking sector which is facing the double impact
of Germany's new road toll
and higher diesel prices," Retzlaff said.
"Trucking companies are under
very heavy cost pressure and are looking for
quick methods of saving
money."
Biodiesel is 15 to 20 euro cents cheaper than conventional
diesel, largely
because of special tax breaks granted by Germany's government
to help the
industry. The price difference has risen by about five euro cents
in past
months as conventional fuel prices rose but biodiesel remained
unchanged.
German consumption this year was likely to rise to around 1.5
million tonnes
against 1.1 million tonnes in 2004 and only 720,000 tonnes in
2003,
association chairman Arnd von Wissel estimated.
Overall
consumption was difficult to estimate as strong demand was sucking
in imports
from neighbouring countries and could be higher.
"If you are running
fleets of thousands of trucks, savings of millions can
be made with
biodiesel," von Wissel said.
Farmers have also been turning to biodiesel
following the loss of special
tax breaks for agricultural diesel.
But
it is difficult for the German public to buy the fuel.
Many car
manufacturers have technical doubts about the fuel, so it is not
sold in
petrol stations run by the multinational oil companies. Biodiesel
blocks some
exhaust dust filters, can break pipes and pumps while it can
freeze in
Germany's very cold winters.
The industry finds the technical objections
exaggerated. "But this does mean
that private car consumption of biodiesel
from petrol pumps will be
limited," Retzlaff said.
However, millions
of motorists are already using biodiesel without knowing
it. Since early
2004, Germany has permitted oil companies to mix biodiesel
with conventional
fuels up to a maximum five percent biodiesel content.
About half of
German biodiesel is for blending with conventional diesel, von
Wissel
estimated. Again no precise figures are available.
MORE EXPANSION
PLANNED
German production capacity was likely to rise to around two
million tonnes
annually in early 2006 against 1.2 million tonnes at the start
of 2005, von
Wissel said. The sector was currently working at full
capacity.
Most production plants are owned by agricultural cooperatives
seeking new
markets for rapeseed, and other small companies.
But
global agribusiness giants are also undertaking major biodiesel projects
in
Germany. US group Cargill recently announced construction of a
production
plant in Mainz in central Germany to be operational in
2006.
Archer Daniels Midland Co. of the US is doubling biodiesel
production
capacity at its Oelmuhle Hamburg plant by the end of
2005.
Story by Michael Hogan
REUTERS NEWS SERVICE
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Last Updated ( Monday, 05 September 2005 )
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