GAIN Report on Biofuels in the EU 2013

Biodiesel is the main biofuel for transport used in the EU and accounted for about 70 percent of the biofuels market on volume basis in 2012. Bioethanol had a 28 percent market share. The EU Member States' mandates for blending spurred an increase in the domestic use of biofuels, creating a demand for imports. These competitive imports pressed domestic production of both biodiesel and bioethanol. Production of biodiesel [FAME] is also limited by the production of HVO (hydrotreated vegetable oils) and the double counting of biodiesel produced from waste materials.

During 2009 - 2012, the major part of the bioethanol shipped to the EU was imported as E90, subject to a lower import tariff. On from April 3, 2012, the EU closed this popular loophole in the tariff regime. On February 23, 2013, the EC also imposed an anti-dumping duty on bioethanol imports from the United States. Despite these trade barriers, the EU is expected continue to attract bioethanol from foreign markets.About 350 million liters of ethanol is expected to be supplied through preferential trade measures, mainly used by Guatemala, Peru and Pakistan. The other likely source is Brazil. EU imports from the United States are unlikely due to anti dumping duties.

Since the enforcement of countervailing and anti-dumping duties on imports of biodiesel from the United States in March 2009, U.S. supplied-biodiesel has been largely replaced by biodiesel from Argentina and Indonesia. In an attempt to curb imports from these origins, the EC enforced anti dumping duties starting May 29, 2013. The enforced duties could open up opportunities for biodiesel from other origins.Imports are likely to increase from Malaysia. Feedstock for the anticipated biofuels production in 2013 is estimated at about 10.6 MMT of cereals, about 9.5 MMT of sugar beets, and about 9.3 MMT of vegetable oils and animal fats. In 2012, the production of byproducts from bioethanol and biodiesel production is forecast to reach 3.3 MMT of DDG and about 9.6 MMT of oil meals, respectively.