EU increases imports of Argentine biodiesel, soy oil on heels of US tariffs

The European Union has always been the primary market for Argentine biodiesel and will continue to be so for the foreseeable future now that EU tariffs have stopped the flow of methyl ester imports from the United States. In addition, a spokesperson for the Argentine Renewable Energies Chamber said the EU has established stringent biofuels mandates, and can’t grow enough rapeseed/canola for its targets. Therefore, it needs to import either soy oil or biodiesel from countries such as Argentina—the world’s largest exporter of soy oil and the fourth largest producer of biodiesel. “Biodiesel appears to be going to Holland because Rotterdam is the primary entry point for biofuels,” said Carlos St. James, president of the AREC. “It then gets shipped throughout the continent.” The increased cost of U.S. biodiesel due to the tariffs has opened a window of opportunity for the Argentine industry, as the country’s total production reached 1.07 million tons (320 million gallons) in 2008, with sales in excess of $1.3 billion.