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US Biofuels Business Threatened by Suspicious Chinese Frying Oil Imports
The biofuel industry in the United States is facing a major challenge as China is flooding the country with used cooking oil that may be tainted. The imports of this oil, which is used to make renewable diesel, have more than tripled in 2023, with over 50% coming from China. American industry groups and biofuel executives are concerned that a significant portion of these supplies may be fraudulent, and are urging the government to tighten scrutiny on the imports.
The suspicions have been heightened after similar concerns were expressed by the European biofuel industry last year. The potentially tainted imports are benefiting from President Joe Biden’s renewables incentives, which is hurting American farmers. The situation is also jeopardizing the expansion plans of agriculture companies and could worsen trade tensions between China and the US.
One of the biggest concerns is that China shippers are adding used cooking oil to fresh palm oil, which is a key driver of deforestation and labor abuses. The Environmental Protection Agency has had discussions with industry stakeholders about these concerns and is aware of the increased imports. The surge in used cooking oil imports is a top issue for the trade group representing US seed processing industries, and there are suspicions that this is one of the worst-kept secrets out there.
The biofuel industry is calling on the government to address this issue quickly to prevent it from undermining the integrity of the Renewable Fuel Standard. The surge in used cooking oil imports is a top issue for the industry, and there is a lot of suspicion and anecdotal evidence that this is happening.
