German Ethanol Production Jumps

German ethanol production has jumped following the closure of the lucrative "splash and dash" window.

The scam, which undermined the production of biofuel in the EU, involved shipping biodiesel from Europe to the US where a "splash" of mineral-derived diesel was added, thereby rendering the entire consignment eligible for a US subsidy.

Invariably the fuel was then shipped back here and sold below European prices.

Latest figures now show that ethanol production in Germany reached 637,000 m³ in July 2009 to Jan. 2010, the first seven months of marketing year 2009/10, which is 17% more than the 544,000 m³ produced in the same period in 2008/09.

The main feedstocks used were 358,000 MT of wheat, 109,000 MT of corn, 307,000 MT of rye, and 117,000 MT of barley.