Reuters noted a biodiesel industry expert as saying that Germany could easily reach the target of 10% biofuels usage by 2020, by using pure biodiesel, but taxation of pure biodiesel has all but destroyed the industry.
The German biofuel industry is reportedly working at below-par production levels, with actual capacity utilization of only 10-20%, primarily due to the biofuel tax hike that was implemented in January 2008.
Peter Schrum, president of the German renewable fuels industry association BBK, said: Pure biodiesel sales in the B100 petrol station market are absolutely dead because of the tax increase. Yet only a couple of years ago before the tax, pure biodiesel was used by millions of trucks with no technical difficulties.
Mr Schrum also noted that the German biofuel industry was facing imminent closure at such low-capacity utilization levels and that the government needed to repeal the tax to ensure that biofuel producers remain viable.
