Industrial Scale Biodiesel Production and European Union Economics

The industrial scale biodiesel production started back in 1992, as a result of the policies and stimulation actions originated by the competent institutions of the European Union. The promotion of the production and of the use of biofuels is regulated, within the European Union States, by the European Union Directive 2003/30/CE. It stipulates the use of biofuels and of other renewable fuels, for transport mainly, as part of the European Union policy on the decrease of the reliance on energy import and on the diminishing of gas release that generates the greenhouse effect. The total production capacity was of 22.120.000 tonnes of biodiesel in 2011, a value that places Europe on the first rank globally. Despite the data, the production capacity of biodiesel in the European Union followed a descendent trend. This decrease is due to the fact that many production plants on the territory of these states have ceased production and were put on standby, due to very low or inexistent sales. The fact that the price of imported biodiesel was more competitive has determined fuel sellers to make this choice. Thus, there are deep consequences for the whole European Union economy.