Biodiesel Output in iTaly for 2011 is Dropped 32%

The Italian industry produced 211,234 tons of biodiesel in the 1st half a year of the current year and second-half output is predicted to be broadly similar, Maria Rosaria Di Somma, director general of the industry body Assocostieri-Unione Produttori Biocarburanti, told Reuters. "The situation is dramatic ... This year we'll produce about 500k tonnes, if everything goes well," Di Somma recounted in an interview on the margins of a green energy meeting, cutting her prior 2011 output prediction of six hundred thousand tonnes. Italian biodiesel makers, who use typically imported raw materials including palm oil and rapeseed, have been hit hard during the past two years by inexpensive imports which often cost significantly less than the components, industry leaders say. Italy produced 731,844 tons of biodiesel last year when it imported 639,684 tons of the fuel to meet a demand of roughly 1.3 million tonnes, according to info on the Assocostieri site. ( www.assocostieri.it ). Biodiesel imports are predicted to cover 2/3rds of Italy's 2011 biofuel demand predicted at roughly 1.5 million tonnes, with the less expensive imports coming principally from Argentina, Canada, Indonesia, Malaysia and the U. S. , Di Somma recounted. Many Italian biodiesel makers have postponed output waiting on an improvement of market conditions. Sector-wide capacity function is at present guestimated at 30-40 p.c, she claimed.

Italy's biodiesel capacity, including plants under assembly and idled plants, is about 2.4 million tonnes a year, the Assocostieri info showed. A considerable number of EU biodiesel refiners are probably going to close down in coming months under stress from imports, industry commentators say. Compulsory TARGETS Biofuels demand is decided by Italy's compulsory targets for its use in automobile fuel, part of the ECU struggle with global warming.

Biodiesel accounts for lion's share of biofuels use in Italy. The compulsory share of biofuels in auto fuel is 4.0 % for 2011 and will rise to 4.5 % in 2012 and 5.0 p.c by 2014. Italy has still to outline steps beyond 2014 to reach a ten p.c target for biofuels use set for 2020 by Brussels. Nor has it issued decrees critical to bring state rules in accordance with ECU ones, Di Somma recounted. "The situation is going to become worse from Jan first of 2012 when validation of ( biofuels ) supportability will become necessary," she announced. Italy lags behind many rival biofuel producers which have just set up nationwide authorization systems to meet ECU standards and that is probably going to boost inflows of imported biofuel into Italy next year, Di Somma declared. Biodiesel imports to Italy covered 51 % of the target-driven biofuels sales in 2010, up from thirty six p.c in 2009, the Assocostieri info showed.