Italy is one of the key producers of biodiesel in the EU. However the nation's output capacity has been hurt due to a rise in the importation of cheaper biodiesel.

The biofuel is most commonly made from palm oil and rapeseed oil in Italy, however it is thought that the imported fuel can cost less than these feedstocks.

In the first nine months of 2010, 410,000 tonnes of biodiesel were made in Italy, compared with 795,118 tonnes in the whole of 2009.

According to Maria Rosaria Di Somma, director general of Assocostieri-Unione Productori Biocarburanti, 'I think it's difficult to have produced 300,000 tonnes in the last three months (of 2010 to match output)'.

And while the country's imports stood at 463,000 tonnes in 2009, this figure rose to 540,000 tonnes during the first nine months of last year.

It is now feared that this trend could continue in 2011 unless the government takes control of biodiesel imports. However, with the EU's renewable energy directive, it is thought that domestic production may increase again. The nation is required to blend 4% biofuels with conventional vehicle fuel this year. This will increase to 5% in 2013 and 5.5% in 2014.

biofuels-news.com