The tip of the Speculators Iceberg(I.E. It ain't just "Bio" they're manipulating)
[For speculators you may substitute:Oil Company executives+stockholders,
Elected Officials,Anyone in the usual group of un-indicted co-conspirators]

The Guardian today 4/1/2008

The EU is being urged to take action to stop a biofuel trading scam that exploits US agricultural subsidies and undermines the fight against global warming.

Up to 10% of biofuel exports from the US to Europe are believed to be part of the rogue scheme reaping big profits for agricultural trading firms.

The "splash and dash" scam involves shipping biodiesel from Europe to the US where a dash of fuel is added, allowing traders to claim 11p a litre of US subsidy for the entire cargo. It is then shipped back and sold below domestic prices, undercutting Europe's biofuel industry.

The trade is not illegal, but flouts the spirit of producing green fuel by transporting it needlessly across the Atlantic at a time when campaigners are voicing concern about emissions from global shipping.

The producers' body, the European Biodiesel Board, has uncovered the trade as part of its investigation into why British, German and Spanish producers are in financial trouble at a time when biodiesel prices remain high. The board will call for retaliatory action against the US over subsidies for its leading biofuel.

Biofuels are plant-based oils from crops such as soy and corn. They are expensive to produce but have become relatively cheaper as the price of crude oil has risen to more than $100 a barrel. It is estimated that 10% of the 1m tonnes of biodiesel exported from the US to Europe is part of the splash and dash trade.

Doug Ward, director of a Scottish biofuel company and British representative on the board, said a full report on the impact of US fuels would be finalised within days. It is expected to recommend that the European commission initiate an anti-dumping action against Washington for the subsidy. "We could have sold our product cheaper if we took it over to the US and brought it back," he said. "No one is doing anything illegal, but environmentally it's a disaster," he said. The cheap cost of shipping makes the trade profitable for those involved.

Ian Waller, a biofuel consultant at the firm FiveBarGate said he visited the southern states of the US last October and spoke to firms about splash and dash.

"You get the subsidy for the act of blending, so people are bringing boats of soy or palm-based biodiesel from Europe and then mixing it with a bit of local biodiesel - or even fossil-fuel diesel - and then shipping it back," he said. US producers worried about the trade also call it the U-boat trade because vessels arrive and then almost immediately return, he said.

Andrew Owens, chief executive of Greenergy, a biofuel supplier part-owned by Tesco, said his company was doing all it could to eliminate the rogue practice. "We are rigorous about our supply chain and careful about where we source bioethanol and biodiesel, but it can always sneak in if we have to buy a one-off cargo in Rotterdam to fill a gap ... We try and avoid splash and dash at all costs," he said.

The European Biodiesel Board has been encouraged to act against subsidised US exports of biofuel because Britain and other European countries have complained that their industries are being destroyed. Producers are concerned the US is flooding the market with subsidised fuel when facilities are standing empty in Germany. D1 Oils, a Teesside-based biofuel business, is considering halving its workforce due to the problems caused by US imports.

A competitor, Biofuels Corporation, was taken off the stock market after suffering its own problems, but BP said it was pressing ahead with a biobutanol plant at Hull in cooperation with Associated British Foods.

In a fortnight Britain will introduce demands that 2.5% of all petrol and diesel is made up of non-carbon fuels. The rules will require companies to provide information about sourcing their biodiesel, potentially cutting out splash and dash.

__________________
'84 300SD sold
124.128

Where is the original link to this?

BTW this is the first, hopefully this is true however and leads some insight into why b100 is 5.85 at the local wholesalers.

__________________
http://superturbodiesel.com/images/sig.04.10.jpg
1995 E420 Schwarz
1995 E300 Weiss
#1987 300D Sturmmachine
#1991 300D Nearly Perfect
#1994 E320 Cabriolet
#1995 E320 Touring
#1985 300D Sedan
OBK #42

Here's the WSJ version of the story:

http://blogs.wsj.com/environmentalcapital/2008/04/01/us-biofuels-subsidies-not-for-farmers-but-for-europeans/?mod=WSJBlog

Wow, what a creative way to make some nice profits.

__________________
1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

That's what happens when governments try to micro-manage business, lots of unintended consequences.

I know but I just love it when people figure out how to manipulate them.

__________________
1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

It's not that hard, because governments aren't usually very bright.

http://www.guardian.co.uk/environment/2008/apr/01/biofuels.energy

winmutt,

What was the outcome of your visit with the local shop that is licensed for:
http://www.extrudehone.com/diesel/

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'84 300SD sold
124.128

government subsidies, is there any problem theyre NOT a cause of? I wonder if domestic producers of BioD get the $1 per gallon for adding a little petro Diesel. Is that why B99 is more common than B100?

__________________
1991 300 D 2.5 Turbo, 220k
also in the family:
1981 240 D 185k
1991 350 SD 185k
2006 S 500
2005 SLK 350

Congress killed-off splash and dash with the energy bill. As much as 50% of US biodiesel was/is heading overseas.

Some Euro bidiesel tankers were coming into US ports, blending with minimal (<1%) of diesel, taking the $1/gallon tax credit, and heading back to the EU. The round trip cost less than $1 in shipping.

__________________
1991 350SD (updated rods)
Biodiesel B100 when I can find it.
Dino when really cold outside

I love it! The stupid government overtaxes everyone, so I figure if we can screw them out of a little money here and their our real tax level will drop.

Screwing the government=tax refund.

__________________
1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

This is exactly why I do like John McCain's position of letting the free market decide if and what the future will be for alternatives, including fuels! This free market practise of NOT subsidising anything with our tax dollars caused the businesses here in Arizona to keep their business affairs in Arizona and to hire locally. This enabled us to sell our products for alternatives to other states on the open market!

Barrack Obama and hillary clinton will do the exact opposite and require subsidies for everything. Between the two, Barrack Obama will be worse, much worse! His plans for subsidies will cause us to only be able to pay the interest on the National debt by 2027! This doesn't even begin to address the sheer amount of corruption that will be involved and this debt does not even allow us a military, a skeletal police force, socialised health care and who will be paying for all this?

We will, with money borrowed from China! And if we cannot afford a military, how long will the soveriegn status of this nation last?

Screwing the government+getting caught=jail.
Do not pass go. Do not collect $200.

Please don't get caught.

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DJ


84 300D Turbodiesel 190K with 4 speed manual sold in 03/2012

Well the trick is not getting caught, or stealing enough so you don't give a damn.

Like that guy my age who stole probably $100m from the defence department. The DOD was calling his "company" to find out why crappy ammo was getting sent to Afghanistan, and found out that the new owner...was sweeping the floors 2 weeks ago.

$100m in a Swiss bank account would spend real nice, I'd be on a Jet for Europe before the feds got wise, or called the janiter I mean CEO of my company. I hear Germany is a nice place to live...

__________________
1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Ja, Ja!

__________________
DJ


84 300D Turbodiesel 190K with 4 speed manual sold in 03/2012