German plans to end crop-based biofuels would hit farmers, cut rapeseed output

HAMBURG, Jan 25 (Reuters) - Any German government plansto stop crop-based biofuel production would severely hit farmersand cut rapeseed output, Thomas Mielke, CEO of Hamburg-basedoilseeds analysts Oil World said on Wednesday.

Smaller crushings of oilseeds in Germany would lead to awidening of the domestic protein deficit for animal feed andmean increased imports of soybeans and soymeal, Mielke said.

German environment minister Steffi Lemke is proposing an endto production of crop-based biofuels in stages by 2030.

The country's programme to cut greenhouse gases includes theuse of blending biofuels including biodiesel and bioethanol withfossil diesel and gasoline to reduce road vehicles emissions.

Oil companies have a greenhouse gas reduction target whichthey can partly fulfil with biodiesel, which is often made fromrapeseed oil or waste vegetable oils and bioethanol oftenproduced from grains.

About half of Germany's rapeseed crop, which in 2022totalled 3.7 million tonnes, is used to produce biodiesel.

About 3 million tonnes of biodiesel is blended with fossildiesel in Germany each year, with the animal feed rapeseed mealalso produced from rapeseed crushings.

"This proposal could generate changes in trade flows withmore German rapeseed oil going for export," Mielke said. "Therewould also be a reduction in rapeseed cultivation by farmers."

"Such a drastic policy change would of course also reduceimport demand, intensify the competition with producers in theexporting countries and reduce prices," he said.

Lemke, a member of the Green party in Germany's rulingcoalition, said she wants to intensify the use of biofuelsproduced from garbage, wastes and used edible oil.

"I do not think that it is possible to replace crop-basedbiofuels in this way because there is not enough waste availableto produce the volumes needed," Mielke said.(Reporting by Michael Hogan, editing by Alexander Smith)

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