Exhibit EU-10 · The EU's biodiesel industry is led by Germany and France, both major producers of...

8
Exhibit EU-10 Ref. Ares(2015)209673 - 19/01/2015

Transcript of Exhibit EU-10 · The EU's biodiesel industry is led by Germany and France, both major producers of...

Page 1: Exhibit EU-10 · The EU's biodiesel industry is led by Germany and France, both major producers of rapeseed, which can be used to make the renewable fuel. They are followed by Spain

Exhibit EU-10

Ref. Ares(2015)209673 - 19/01/2015

Page 2: Exhibit EU-10 · The EU's biodiesel industry is led by Germany and France, both major producers of rapeseed, which can be used to make the renewable fuel. They are followed by Spain

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http://www.biodieselspain.com/2013/05/16/las-importaciones-desleales-copan-ya-el-76-del-mercado-del-biodiesel/

Page 3: Exhibit EU-10 · The EU's biodiesel industry is led by Germany and France, both major producers of rapeseed, which can be used to make the renewable fuel. They are followed by Spain

Mon Feb 6, 2012 11:13am EST

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Further plant closures seen in EUbiodiesel sector

* Cheap imports hit production in Italy, Spain

* Tight vegetable oil supplies add to industry woe

* Capacity utilization in EU below 50 percent

By Nigel Hunt

LONDON, Feb 6 (Reuters) - More plants are likely to be shuttered in the European Union'sbiodiesel industry this year as cheap imports pose a threat, input costs are high and politicalsupport wavers in the face of doubts about its environmental credentials.

Many plants were idled in 2011 as production fell back after a decade of rapid expansion,and further consolidation in the industry is expected this year.

"The challenges we have seen last year still exist in 2012," F.O. Licht analyst Claus Kellersaid.

A tight global vegetable oil market has kept the cost of inputs high, and many plants havebeen shut down, pushing capacity utilization across the EU below 50 percent, Keller added.

Rabobank analyst Susan Hansen cited overcapacity and cheap imports from Argentina andIndonesia among the key threats to the EU industry in 2012.

"The capacity consolidation will continue since the import of biodiesel from Argentina andIndonesia has grown as much as it did last year," she said.

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Page 4: Exhibit EU-10 · The EU's biodiesel industry is led by Germany and France, both major producers of rapeseed, which can be used to make the renewable fuel. They are followed by Spain

The EU's biodiesel industry is led by Germany and France, both major producers ofrapeseed, which can be used to make the renewable fuel.

They are followed by Spain and Italy, both countries where costs can be higher because theyrely heavily on imports of raw materials such as rapeseed and palm oil for their feedstocks.

"Some of the big plants in Germany and France owned by established agribusinesscompanies are running at a high capacity. Smaller facilities in Germany, which used to servethe B-100 (fuel that is pure biodiesel) segment, are offline for years," Keller said.

"However, in Italy and Spain it is much more catastrophic because they are hit bysubsidised imports of biodiesel from Argentina and Indonesia," he added.

CHEAPER IMPORTS

Biodiesel output in Italy dropped 29 percent last year, hit by surging inflows of cheapimports, and the outlook for 2012 is clouded by expected strong import inflows and weakdemand after a hike in car fuel duties.

In Spain, operators of at least 40 percent of the country's 4.3 million tonne-per-yearcapacity admit their plants are lying idle, and industry sources say the total may be as highas 85 percent.

Industry group APPA has repeatedly protested that producers cannot compete againstimports from Indonesia and Argentina, which they say enjoy unfair tax breaks.

Biodiesel is generally made from vegetable oils such as rapeseed oil, palm oil and soybeanoil but can also be produced from waste products such as used cooking oil.

Production has grown rapidly in recent years, led by the EU. The region's output climbed toa peak of 9.6 million tonnes in 2010 from barely more than 1 million a decade ago,according to European Biodiesel Board figures.

Government support for the expansion, which has included tax incentives and mandatoryblending requirements, was driven by a desire to reduce use of fossil fuels and cut emissionsof the greenhouse gases that contribute to climate change.

Such backing has waned, however, as a draft EU study has shown that the cultivation ofrapeseed to make transport fuels is worse for the climate than using conventional diesel, afinding challenged by the industry.

MOOD TENSE

Germany's biodiesel industry may shrink more this year as it faces poor sales growth, thechief executive of industry association VDB told Reuters in late January.

Two German biodiesel producers declared insolvency in 2011, and about half of thecountry's 49 biodiesel plants have either stopped production or are insolvent, the VDB hassaid.

"The mood in the sector remains tense. The consolidation among biodiesel producers is notyet at an end," VDB Chief Executive Elmar Baumann said.

French biodiesel giant Diester Industrie, which makes fuel from vegetable oil, reducedoutput by 15 percent last year, mainly due to a local system that favours biodiesel that comesfrom recycled oil, the company's chief executive said.

Diester hopes a recent French ruling that is likely to limit the use of recyled oils in makingbiodiesel would brighten the outlook for 2012.

"It (French biodiesel output) will rise, but I think it will remain below 2009 and possibly2010 and it will remain below German output," Licht analyst Keller s aid.

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Page 5: Exhibit EU-10 · The EU's biodiesel industry is led by Germany and France, both major producers of rapeseed, which can be used to make the renewable fuel. They are followed by Spain

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Double-counting rules were introduced to reflect the greater potential for greenhouse gassavings from the use of waste products compared with the use of virgin (unused) vegetableoils.

Double counting has encouraged UK biodiesel producers such as Greenergy to almostcompletely switch to waste products such as used cooking oil.

Greenergy's biodiesel plant at Immingham in eastern England was built to use vegetableoils, but in the last couple of years the company has built units to pre-treat and post-treatproduction to allow use of waste such as used cooking oil. (Additional reporting by MichaelHogan in Hamburg, Sybille de La Hamaide in Paris, Ivana Sekularac in Amsterdam,Svetlana Kovalyova in Milan and Martin Roberts in Madrid, editing by Jane Baird)

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Page 6: Exhibit EU-10 · The EU's biodiesel industry is led by Germany and France, both major producers of rapeseed, which can be used to make the renewable fuel. They are followed by Spain

US Cargill confirms closure ofGermany biodiesel plant14 November 2012 14:5314 November 2012 14:53 Source: ICIS NewsICIS News

LONDON (ICIS)--Cargill will close its German joint-venture biodiesel(/energy/biodiesel/) plant near Berlin, but the company’s biodiesel plantsat Frankfurt and at Ghent, Belgium, continue to operate, it said onWednesday.

The US-based agribusiness firm was confirming German press reports(/resources/news/2012/11/07/9611994/us-cargill-closes-germany-biodiesel-plant-looks-for-buyer-reports/) that the 120,000 tonne/year plant inWittenberge, west of Berlin, would be closed amid weak demand(/resources/news/2012/11/08/9612424/european-biodiesel-demand-low-as-uncertainty-rules-market/) and oversupply on the European market.

The plant, known as Bio-Diesel Wittenberge (http://www.biodiesel-wittenberge.de/), is a joint venture between Cargill and Germanagricultural cooperative Agravis Raiffeisen(http://www.agravis.de/hauptnavigation_agravis_de/home/hompage_start.html).It produces biodiesel for the European market.

In a statement to IC ISIC IS, Cargill said it had already agreed a “social plan” totake care of the 28 workers losing their jobs at Wittenberge. Cargill did notsay when exactly the plant would be closed.

Cargill (http://www.cargill.com/) added that Bio-Diesel Wittenberge is intalks with a potential investor to acquire the site.

Meanwhile, Cargill's wholly-owned 300,000 tonne/year biodiesel plant atthe Frankfurt-Hoechst chemical and industrial park, and its 250,000tonne/year joint-venture biodiesel plant at Ghent, Belgium, continued tooperate normally, the company said.

The European biodiesel industry is facing uncertainty from a EuropeanCommission proposal (/resources/news/2012/10/17/9604836/eu-publishes-proposals-to-cap-use-of-food-crop-based-biofuels/) to limit the productionof biodiesel from food crops.

Additional reporting by Kate Wilcock

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Page 7: Exhibit EU-10 · The EU's biodiesel industry is led by Germany and France, both major producers of rapeseed, which can be used to make the renewable fuel. They are followed by Spain

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By Stefan BaumgartenStefan Baumgarten (mailto:[email protected]) (mailto:[email protected])

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Germany (/resources/news/2013/05/09/9666905/podcast-report-from-

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09 April 2013 20:49 US Cargill Q3 earnings fall 42% year on year on drought,

economy (/resources/news/2013/04/09/9656852/us-cargill-q3-earnings-

fall-42-year-on-year-on-drought-economy/)

09 January 2013 17:57 US Bunge receives EU clearance for Europe biodiesel

deals (/resources/news/2013/01/09/9630404/us-bunge-receives-eu-

clearance-for-europe-biodiesel-deals/)

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