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Petrotec Suspends Biodiesel Production

10.23.07

German biodiesel producer Petrotec has temporarily stopping biodiesel production because market conditions do not permit the company to cover production costs.

The company cited the German government's decision to start taxing biodiesel in August 2006 as a prime factor. Germany's renewable fuels trade association estimates that plants in the country are operating at only 40% to 50% of capacity because the tax has removed biodiesel's price advantage over fossil diesel.

Petrotec said it would suspend biodiesel output until the end of 2007, but meet all existing delivery contracts. A further biodiesel tax increase is scheduled in Germany for January 1, 2008.



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