Government support will quadruple European biodiesel industry by 2008

Renewable Fuel News, October, 2006 by Ngo, Peter

If the swell of government support for the biodiesel industry were to vanish overnight, the price of oil would in turn have to reach $110 a barrel for biodiesel to remain attractive, analysts at a venerable Wall Street securities firm concluded last week.

Goldman Sachs Group analysts Mariano Alarco, Jason Channell and Stephen Benson said in an October 23 report that biodiesel is simply not competitive without subsidies, government support programs being the main driver of the industry's growth.

Furthermore, European biodiesel prices will fall nearly 20% because compulsory fuel blending will quadruple production over the next four years, the Goldman analysts said.

Global biodiesel production is forecast to grow 35%, led by Europe, where half of new cars sold...

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