French Producer Resumes Running Biodiesel Plants at Full CapacityThursday, August 30, 2018
After limiting production earlier in the year, French biodiesel producer Avril has returned to running its plants at full capacity due to high petroleum oil prices and increasing demand, Oils & Fats International reported earlier this month. The plants had been operating at full capacity since June, but continuing biodiesel imports from Argentina could still force the company to limit production, the report said citing Reuters.
Avril cut production at its oilseed processing unit Saipol for six months in March, citing the large influx of Argentine imports after the EU’s 2017 removal of import taxes as the reason. EU producers were hoping that the EU Commission would impose new tariffs on Argentina in September, based on new allegations that the country was unfairly subsidising its biofuel industry.
As a positive turn, crude oil prices had climbed in the past months, mostly due to fears about possible US sanctions on Iran limiting oil supplies. European buyers had also begun stockpiling biodiesel for the next year, anticipating higher prices following a new EU tax, said Reuters.