EU efforts to increase the use environmentally friendly fuel led to the creation of an industry China which collects, processes and extracts waste, such as, for example, waste vegetable oil. As a result, however, Europe has been flooded with biofuels, putting European producers at a disadvantage and also raising concerns about whether biofuels are truly sustainable and acceptable in their composition.

European biofuel producers are concerned that Asian companies are putting them at a disadvantage by mixing the fuel with cheap food feedstock and passing it off as biofuel. Their goal, of course, is to take advantage of the benefits offered by the EU. to switch to renewable energy sources. Worries are mounting as biodiesel exports from China to the EU have skyrocketed. China has a huge industry that produces and exports to the EU biofuels that are registered as recycled for food production, certified as sustainable and end up on the Old Continent.

At the same time, imports of used palm oil from Indonesia and Malaysia are recorded as too high, raising concerns that their shipments may contain other ingredients. Worries have intensified since the end of last year, when biofuel imports from China soared. Industry officials fear that there is some link between this growth and imports from Indonesia and Malaysia. Ships bound for China and large shipments of used palm oil depart from these two countries.

Given the incentives that have been offered around the world, the demand for biofuels for vehicle and aircraft engines has increased.

The problem with the European biofuel industry is that all these EU imports are putting downward pressure on biofuel prices and cutting profit margins for local producers, forcing some to shut down production. In general, trade in biofuels in the EU is attractive. thanks to the incentives that come with it. Waste-derived fuel sells for higher prices than clean-harvest fuel and is considered more environmentally friendly. The problem, however, is that it is difficult to determine the composition of biofuels.

As Javier Noyon, Secretary General of the European Biofuels Council (EBB), points out, “when it comes to a chemically processed product that turned it into a biofuel, it is impossible to know what raw materials were used to produce it.” own production.” And all this rampant biofuel imports into the EU. they probably come from other kinds of ingredients. EBB represents 70% of the market and is made up of Cargill Inc., Bunge Ltd and Neste Oyj, all of which have voiced serious concerns about growing biofuel imports in Europe. A flood of imports has caused some European producers to halt production, and according to the European Advanced Biofuels Association (EWABA), there is a risk of a wave of bankruptcies in the industry.

Given the incentives that have been offered around the world, the demand for biofuels for vehicle and aircraft engines has increased. Opportunities and challenges are thus created throughout the relevant supply chain, while at the same time the debate is intensifying over whether food or fuel production should be given priority. And the reason is that raw materials such as vegetable oils, animal fats and waste are not enough to increase production.