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Is Germany Taxing Biodiesel to Death?
Speigle on line via Business Week ^ | 7/30/07 | Charles Hawley

Posted on 07/30/2007 8:36:50 AM PDT by null and void

The smell seems out of place here in Piesteritz. Once a major hub of East Germany's powerful chemical industry with fully 20,000 workers, the site is now enveloped in a pungent odor more reminiscent of a brewery than the sulfuric acid and ammonia locals were used to whiffing during the Cold War. "You smell that?" plant manager Rainer Mahn shouts over the roaring machinery. "That's the smell of money." In fact -- to be painfully accurate -- it's the smell of rapeseed oil, crushed from truckloads of fresh rapeseed brought from farms throughout the region. By the time the translucent gold liquid reaches the other end of the factory it will be a viable fuel. This brand-new factory built by Neckermann Renewables can produce 220,000 tons of biodiesel per year. Germany's biodiesel market -- the world's largest -- is in upheaval. Last autumn, the infant industry lost its tax-free status, meaning that every liter of biodiesel produced here became nine euro cents more expensive. The results were instant: stock prices plunged; trucking companies that had been filling their tanks with climate-friendly biodiesel switched back to fossil fuels; and a number of smaller biofuel refineries had to close their doors.

(Excerpt) Read more at businessweek.com ...


TOPICS: Business/Economy; Foreign Affairs; Germany
KEYWORDS: energy; environment; govwatch; taxes; transportation
See tagline...
1 posted on 07/30/2007 8:36:53 AM PDT by null and void
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To: null and void

Tagline, I say!


2 posted on 07/30/2007 8:37:25 AM PDT by null and void (Whale oil: The carbon neutral, renewable petroleum alternative)
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To: null and void

your tagline stinks ;-)


3 posted on 07/30/2007 8:45:34 AM PDT by Rummenigge (there's people willing to blow out the light because it casts a shadow)
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To: Rummenigge
*blush* Thank yew...
4 posted on 07/30/2007 8:51:05 AM PDT by null and void (Whale oil: The carbon neutral, renewable petroleum alternative)
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To: null and void
220,000 tons. This would be about 68.6 million gallons, I think.
5 posted on 07/30/2007 9:34:21 AM PDT by Eric in the Ozarks (BTUs are my Beat.)
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To: Eric in the Ozarks
". This would be about 68.6 million gallons, I think"

Its more like 9.85 trillion BTU's.

6 posted on 07/30/2007 9:52:57 AM PDT by norwaypinesavage (Planting trees to offset carbon emissions is like drinking water to offset rising ocean levels)
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To: norwaypinesavage

Are you estimating 130,000 BTUs/gallon ? Rapeseed oil can’t be much more than that.


7 posted on 07/30/2007 9:58:23 AM PDT by Eric in the Ozarks (BTUs are my Beat.)
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To: null and void

The whole biofuels issue is a pretty bad idea, IMO. (A little off topic) The use of ethanol, for example, has put a huge crunch on the availability of corn and driven the price of corn up without providing much value. Here in the southwest, there are corn crops dying in the field due to the excessive amount of rainfall, something that will likely affect the overall price of gasoline that will have a negative impact on the price of gas - again, another law of unintended consequences kind of thing.

Apparently, it is more important for our political elites to give the appearance of doing something rather than actually doing something!!!


8 posted on 07/30/2007 10:36:33 AM PDT by DustyMoment (FloriDUH - proud inventors of pregnant/hanging chads and judicide!!)
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To: DustyMoment
Corn based ethanol is a particularly bad idea:

Ethanol boom may fuel shortage of tequila

Mexican farmers switching to corn could create tequila shortage

This time, it really is Bush's fault...

9 posted on 07/30/2007 10:41:11 AM PDT by null and void (Whale oil: The carbon neutral, renewable petroleum alternative)
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To: Eric in the Ozarks
I believe I used 140000 BTU per gallon. It was my estimate, based on no data. I believe that Rapeseed based bio-diesel would have more BTU’s per gallon than the base oil, since the glycerin is removed.
10 posted on 07/30/2007 10:49:18 AM PDT by norwaypinesavage (Planting trees to offset carbon emissions is like drinking water to offset rising ocean levels)
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To: norwaypinesavage

Probably pretty close. Reclaimed motor oil is about the same API, so you could get 138-140,000.


11 posted on 07/30/2007 2:37:08 PM PDT by Eric in the Ozarks (BTUs are my Beat.)
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