Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Tuesday, July 1
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Commodities»Commodities giant ADM exploits green fuel loophole, UK producers say
    Commodities

    Commodities giant ADM exploits green fuel loophole, UK producers say

    May 29, 20254 Mins Read


    Unlock the Editor’s Digest for free

    Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

    Global commodities trader Archer Daniels Midland is exploiting a loophole in UK green regulations to claim a double subsidy on the production of biofuels as a surge in imports threatens to wipe out the domestic ethanol industry, according to its British competitors.

    Ethanol suppliers can claim a credit on every litre produced under a UK scheme that seeks to cut harmful emissions from transport and promote greener fuels.

    But ethanol made from waste products is eligible for a double credit as an incentive for producers to prioritise that production. ADM — the A in the so-called ABCD of international agribusinesses that play a pivotal role in global food supplies — took advantage of this to claim double credit on its fuel sold in the UK that is made from a byproduct of corn processing.

    However rivals have argued in submissions to the UK government that the byproduct — known as unrefined liquid dextrose ultrafiltration retentate, or Uldur — should not be classified as waste as it has several well-established uses. They argued that doing so undermined UK environmental objectives by enabling fuel suppliers to meet renewable fuel obligations using fewer litres of biofuel.

    “This isn’t about using genuine waste,” one industry executive told the Financial Times. “It’s about finding clever ways to maximise financial returns through regulatory loopholes.”

    Chicago-based ADM has expanded its biofuels business, including making ethanol from corn, to serve a growing market for low-carbon fuels. Industry experts estimate that the UK double credit may have allowed ADM to generate up to £100mn in revenue last year. ADM declined to comment.

    The row comes as Britain’s small domestic ethanol industry grapples with the implications of the recent UK-US trade deal that removed tariffs on American ethanol imports. This granted US producers a 1.4bn-litre quota of tariff-free access — roughly equivalent to the UK’s entire annual demand.

    The UK transport department this year sent out a call for evidence to establish whether Uldur — a byproduct of processing corn into sweeteners such as corn syrup — should continue to qualify for the double counting it was awarded in 2022.

    Rival UK biofuel producers noted in submissions seen by the FT how the product had historically been put back into ethanol production or used as animal feed.

    Matthew Sharp, of law firm Brown Rudnick, which advises companies on environmental regulatory issues, said the “sheer volume of supply” may have led the government to ask: “Is it actually waste product that’s being used?”

    Imports of ethanol derived from Uldur — which is not classified as waste in Germany or the Netherlands — rose from zero in 2022 to 377mn litres last year, according to UK government figures.

    Associated British Foods, an ethanol producer whose fuel is derived from wheat, has warned that it may be forced to halt production at its Vivergo plant, one of only two in the UK, citing the threat from cheaper imported biofuels.

    “If the government wants to subsidise imported bioethanol, then we can’t compete against that,” chief executive George Weston told investors in April.

    Adam Bell, director of policy at Stonehaven and a former head of energy strategy at the UK energy department, agreed that domestic producers could not match the Uldur-derived bioethanol that now dominated the market if the byproduct continued to be counted as waste.

    “It can always be sold cheaper, while still making cash just because of double counting,” he said.

    Vivergo said the double subsidy on Uldur had “seriously weakened our business”, while the UK-US trade deal had only “intensified regulatory problems” that already favoured overseas producers.

    The UK government said all fuel supplied under its Renewable Transport Fuel Obligation had to meet “strict sustainability standards”. The UK transport department said it was working with producers to understand their concerns and explore options for support.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleBitcoin glisse en dessous de 106 000 $; L’analyste voit une rupture éther imminente
    Next Article Le PDG Paolo Ardoino a déclaré: « Tether sera le plus grand mineur Bitcoin du monde »

    Related Posts

    Commodities

    Indonesia relaxes import rules for 10 commodities, including footwear

    June 30, 2025
    Commodities

    Gold Price Prediction: Yellow metal at 1-month low, but downside looks cushioned. Analysts weigh in

    June 30, 2025
    Commodities

    Indonesia eases import rules ahead of US tariff deadline

    June 29, 2025
    Leave A Reply Cancel Reply

    Top Posts

    Action Ganglong China Property Group Limited | Cours 6968 Bourse Hong Kong S.E.

    July 31, 2007

    les fondamentaux de l’or restent bons

    September 4, 2007

    les fondamentaux de l’or restent bons

    September 4, 2007
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Bitcoin

    American Bitcoin, la start-up soutenue par les fils de Donald Trump, bientôt cotée à Wall Street

    May 12, 2025
    Investing

    Your Questions Answered: I want to invest in mutual funds tracking NASDAQ 100. Please elaborate its pros and cons

    August 20, 2024
    Finance

    Kazakhstan Showcases Investment Potential at First Finance Forum in New York

    October 30, 2024
    What's Hot

    Treasury sanctions Russian hackers that breached US water utilities

    July 19, 2024

    Stock Market Today: Dow down 100 points, trimming loss ahead of Nvidia earnings

    August 28, 2024

    2 Financial Steps I Wish I’d Taken Sooner

    July 11, 2024
    Most Popular

    L’auteur « Rich Dad Poor Dad » appelle Bitcoin une réponse à une question fondamentale

    February 23, 2025

    Chipotle’s Stock Split Is Complete. Here’s What to Expect for the Rest of 2024.

    July 13, 2024

    London Stock Exchange Group Plc: Actionnaires Dirigeants et Profil Société | LSEG | GB00B0SWJX34

    May 8, 2025
    Editor's Picks

    Bitcoin Hits 6-Week High After Trump’s Pro-Crypto Comments

    July 29, 2024

    Brazil finance chief says he suggested new cenbank head be picked by September

    August 27, 2024

    Sensex Today | Stock Market Highlights: Nifty closes with 1.1% decline, markets close with major cuts

    May 9, 2025
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2025 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.