67% of US biodiesel production goes to Europe

Politics of WVO, legal aspects, emissions

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67% of US biodiesel production goes to Europe

Postby SunWizard » Fri Mar 14, 2008 2:34 pm

This makes me mad, I had no idea that 67%: 300m out of 450 million/year of US bio production is going to Europe. And US taxpayers are subsidizing them at $1/gallon:

US Bio goes to Europe
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Postby John Galt » Fri Mar 14, 2008 5:38 pm

U.S. biodiesel plants are struggling to stay in business and operating at well below the industry's capacity. The price of soybean oil, the traditional feedstock for biodiesel, shot from 28 cents to 45 cents a pound during 2007, according to U.S. Department of Agriculture data. On Thursday, the price of soybean oil for May delivery was about 63 cents a pound on the Chicago Board of Trade.

A newly passed energy law sets mandates for annual biodiesel use, but they don't kick in until 2009. The annual targets start at 500 million gallons next year and reach 1 billion gallons by 2012.


This is clearly an artificial problem. Individual states could provide incentives to any fuel distributors who began adding biodiesel now.

Americans won't pay enough for diesel fuel to cover the production costs of making biodiesel, but Europeans will. That's just global economics.

It's cheaper to make diesel fuel from coal, than growing soybeans to make biodiesel. Biodiesel is only cost effective if the oil is first used to cook some product, then reclaimed for fuel.

The govt could always claw back the subsidy $ from any exports.
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Postby BMW Fan » Fri Mar 14, 2008 7:01 pm

Plain and simple:
Europe PAYS more than the local US market It is the US producer who gains and that is a fact.
Like it or not.
Canada gives his tar sand away to the US for peanuts. In Nova Scotia we pay more for our own gas then the US customer in Maine and elsewere.
Our pipelines are going strait to the US.
I don't hear any complains from the US buyers.
Something to think about.
David versus Goliath.

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Postby John Galt » Fri Mar 14, 2008 7:17 pm

Oilberta Canada is owned and operated by US oil companies. Canada provides the labor force and land, and the oil companies pay the govt. enough to keep the labor force in line. It's an economic colony.
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Postby BMW Fan » Fri Mar 14, 2008 8:20 pm

I got to be careful being a foreigner.
IMHO the owner of a product should gain at least a little.
The US Biodiesel producer gain a lot by selling to Europe.
The Canadians gain nothing but laughs.
The only intelligent guy was the NF Premier.
He kicked the oil companies in the butt and they came back crawling.
Albertas workers may make lots of money compared to Nova Scotia but can not afford to pay the rent for their families.
AAAAAAAAhhhhhhhhhhh………. :x
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Postby John Galt » Fri Mar 14, 2008 9:00 pm

Newfoundland & Labrador is not owned by the oil companies, so the Premier could tell them to pay royalties or fµck off. The Oilberta govt IS a puppet govt run by the oil companies, big difference. It's as different as Louisiana and Maine.
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Postby SunWizard » Wed May 21, 2008 8:57 pm

Here's another twist on US bio going to Europe: they buy bio in europe, indonesia and malaysia, ship it to the US, add 1% diesel to qualify for the $1/gallon subisidy, then ship it back to europe!
Europe threatens trade war over US biodiesel subsidies
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Postby mixelpix » Mon Dec 15, 2008 11:38 am

John Galt wrote:This is clearly an artificial problem. Individual states could provide incentives to any fuel distributors who began adding biodiesel now.

Americans won't pay enough for diesel fuel to cover the production costs of making biodiesel, but Europeans will. That's just global economics.

It's cheaper to make diesel fuel from coal, than growing soybeans to make biodiesel. Biodiesel is only cost effective if the oil is first used to cook some product, then reclaimed for fuel.

The govt could always claw back the subsidy $ from any exports.


I disagree with your future predictions about what us Americans will be willing to pay.

How would you suggest that the U.S. transition it's economy from the Cold War models of economic attrition - specifically I am referring to the legacy of grain subsidizing and exporting which has also led to the preponderance of corn related products on the mass markets like high fructose corn syrup and other junk which has escalated in step with the American suburb, mass automobile manufacture and the trajectory of incidence of morbid obesity within said populace?

It's gonna take a while before this country changes radically, imho. Fortunately our electoral college was smart enough to vote in the same guy who won the populairty contest. I mean vote.

Best,
-Patrick Kennedy

p.s. not a huge fan of the electoral college, but am an enormous fan of representative republicanism. I just wish, kind of like Canadia, we had some sort of "minority party" representation based on the popular vote for the Executive branch.
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