The biodiesel driven out of the oil crisis – New Technology

     “I’m fucking pissed. If you should choose to drive environmentally friendly so they will not add taxes on it, “said Jorgen Emanuelsson, president of Emanuelssons Transport in Motala, who after New Year’s thoughts rapeseed oil biodiesel in 13 of the company’s trucks. Carbon dioxide emissions are reduced by 930 tonnes / year but the company may pay half a million dollars in higher taxes in 2015. On the right, David Varverud from Energy plant. Photo: Motala Photographic Images AB
     

The low oil price starts beating hard against the biodiesel. At the same time hit the renewable fuel at the turn of the increase in energy taxation.
– It’s very serious, not only for us, says David Varverud Power plant.

Since January, Energy Factory sales of rapeseed oil diesel to bus companies, trucking companies and other vehicle owners declined by a third. And since the use of biodiesel reduces carbon dioxide emissions by about 60 percent (compared to fossil diesel) affect the orders climate.

– I am convinced that what is happening now is contrary to what the Swedish citizens expect of policy, says partner David Varverud, whose company sells and distributes biodiesel throughout Sweden.

Behind the shift is dramatic falling crude oil prices that lately we have fossil diesel is cheaper. Liter price has fallen by around two crowns since last summer.

But also the increased energy tax on biodiesel introduced on 1 January hitting the biodiesel . It now costs just over a penny more per liter at höginblandning, and 1.40 more per liter at low admixture of fossil fuel, according to the Treasury Department.

Lars Lind, Managing Director of Perstorp Bioproducts, which annually produces approximately 130,000 tonnes of rapeseed oil biodiesel, RME, in Sweden:

– We have seen strong growth in recent years, but now sees an uncertainty in the market. It affects perhaps not as much bus company in collective liner with strong environmental ambitions, as smaller truck with a tough economy.

Such is Ruddammens haulage in Örebro. Last year, started to walk over to refuel 100 percent biodiesel in the company’s timber trucks, which together consume 420,000 liters of fuel per year. But since the turn drive on regular diesel again.

– We do not have the margins that we can run on RME given that it is expensive and involves more hassle, says the haulage firm owner Patrik Larsson.

With the fuss he means denser fuel filter replacements and service intervals. He continues:

– But I think it is so wrong that governments hitting the legs out from all who want to drive environmentally friendly.

At the same time points out Ulric Långberg, an expert at the Swedish Road Haulage Companies, many carriers have contracts which involve allowing the transport buyer pay separately for diesel fuel. And therefore are not extremely price sensitive.

But the clause does not apply to biodiesel, says Patrik Larsson.

– Will it be more expensive, I pay.

Agitation in the biodiesel industry is fueled by that one believes that the tax rests on the erroneous calculations from the Swedish Energy Agency. The estimates from 2013 is now the basis for the EU Commission considers the tax exemption for biodiesel type Fame, with rapeseed oil biodiesel included, been too big, with reference to state aid rules.

Therefore, Parliament chose to raise the tax on Fame biodiesel from January this year. At the same time the tax was liberated HVO, a more processed and more expensive biodiesel.

– We think the government handled this very badly and that it combats climate ambitions , says Lars Lind at Perstorp Bioproducts.

Charlotte Svensson, State Secretary of Finance Magdalena Andersson, emphasizes that Sweden must have the European Commission approval to provide state aid and that biofuels should not be over-compensated.

– But we understand that this is not a long-term and good system . What we do now is to investigate the feasibility of introducing a quota obligation system to cost-effectively reward biofuels, says Charlotte Smith.

The February 26 may Treasury new estimates from the Energy Agency – which compares fuels production costs – but what the political outcome could be she does not know.

What is the Government that the sharp decline in oil prices could also affect other renewable forms of energy from sun and wind?

– We think there is a problem, and examines how we can make sure to reward renewable energy. Proposals will in the autumn budget.

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