Chinese biodiesel producers are actively searching for new markets in Asia and exploring other biofuels as their primary export destination, the European Union, faces restrictions due to upcoming anti-dumping tariffs, according to biofuel industry experts.
Starting Friday, the EU will impose provisional anti-dumping duties ranging from 12.8% to 36.4% on Chinese biodiesel. This will impact more than 40 companies, including major producers such as Zhejiang Jiaao, Henan Junheng, and Longyan Zhuoyue Group. Last year, the industry was valued at $2.3 billion.
In response to these tariffs, some larger producers are turning their attention to the marine fuel market in China and Singapore, a key hub for marine fuel, as they try to compensate for the decline in biodiesel exports to the EU.
Exports to the EU have plummeted significantly since mid-2023 due to ongoing investigations. Data from Chinese customs indicates that exports in the first half of this year dropped by 51% compared to the previous year, totaling 567,440 tons. June shipments fell to just over 50,000 tons, the lowest level since mid-2019.
In 2023, exports to the EU hit a record 1.8 million tons, which constituted 90% of all Chinese biodiesel exports that year. The Netherlands was the leading importer, receiving 84% of these shipments, followed by Belgium and Spain.
Chinese biodiesel producers have seen substantial profits in recent years, benefiting from the EU’s green energy policies that offer subsidies for biodiesel used as a sustainable transport fuel, including for companies like Repsol, Shell, and Neste. Many of these producers operate small, privately-run plants that process waste oil collected from numerous Chinese restaurants. Before the biodiesel boom, these plants mainly produced lower-value items such as soaps and processed leather products.
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