A lab worker shows examples of unprocessed raw gutter oil and the biodiesel fuel it can become after treatment. File Photo: VCG

Chinese biodiesel producers said they have zero tolerance for fraud in biodiesel exports and have pledged to improve compliance and regulation, days after a European industry association called for action to stem "potentially fraudulent" shipments.

"We will work with the Chinese biodiesel industry to take effective measures to establish and improve relevant management systems, and to strengthen self-discipline and supervision with China's advanced biodiesel enterprises to curb the occurrence of such phenomena to the greatest extent," the China Association for Promotion of Private Sci-Tech Enterprise Bioenergy Branch (CPTPAB) said in an open letter on Monday.

The remarks came after the European Waste-Based & Advanced Biofuels Association (EWAMBA) said on June 1 that surging Chinese biofuel shipments were threatening local suppliers by depressing prices. European producers say Chinese exporters may be mixing fuels with cheaper feedstocks and mislabeling them to qualify for EU incentives. The European Commission and the Dutch and German governments must take action, the association said.

The EWAMBA said the surge in Chinese exports is hitting European biodiesel producers. At least 11 plants have halted output, while another 10 have curbed production.

Recently, the consumption of road diesel around the world, including the European Union, has declined to varying degrees, and the demand for advanced biodiesel has weakened. At the same time, due to the abundant supply of rapeseed oil in the world, the price has fallen sharply, which has caused the profit of advanced biodiesel plants to be severely compressed, the Chinese association said in the letter.

The CPTPAB said although the recent entry of some suspected "fraudulent" advanced biodiesel in China into the EU market may have a certain impact on the market, it believes that this is only one of the objective conditions that led to the shutdown of some advanced biodiesel plants in the EU or lower than normal production levels.

The Chinese group said China's advanced biodiesel industry, especially the advantages of UCOME products made in China, are strongly complementary to the EU market. Moreover, China has abundant waste oil resources and advanced waste oil raw material treatment technology, which can provide the EU with high-quality, economical and advanced biodiesel products, and play an important role in the EU's carbon emission reduction goals.

The CPTPAB said it shares the same mission and responsibility with the EWAMBA, which is to promote and advocate sustainable, environmentally friendly and economically beneficial bioenergy R&D and production and applications, promote the healthy development of the industry, and contribute to global energy security, environmental protection, and economic prosperity.

China's exports to the EU of methyl ester, a feedstock for biodiesel that's made from used cooking oil, rose by almost 40 percent to 1.79 million tons in 2022. Production capacity is expected to increase to 3 million tons this year, according to a report by Bloomberg.

Global Times