Biofuel groups have claimed that dodgy deals in certain member states are undercutting companies elsewhere in Europe.

The European Biodiesel Board (EBB), which represents firms in 21 member states, has told the EU and authorities in member states that action by Polish exporters is distorting the EU internal market and undercutting sellers in other member states.

Last week, the Board alleged that some operators in Poland are exporting biodiesel to other European states which should be consumed within the country, taking advantage of discounts granted by the Polish national biofuels law, and passing off diesel as blended fuel for sale in Poland. EU regulations state that diesel must contain an amount of biodiesel to meet renewables targets. This means the fuel would be registered twice - once fraudulently in domestic fuel and again after the biodiesel is exported and mixed.

The strategy for meeting emissions targets has been criticised by those who claim that reliance on first generation biofuels is leading farmers to use land for lucrative biofuel crops instead of food crops. This week, researchers in the US suggested that ‘food vs fuel’ competition is increasing, and could have serious consequences as the world’s population continues to grow.

On Thursday, EBB announced it would open an inquiry into the practice, which would break EU laws if it is occuring. EBB said 20-25,000 tonnes of unfairly produced fuel could be being exported each month, and claimed the biofuel is being sold in Romania,  the Netherlands, Belgium, Italy and, once blended at biodiesel hubs, (ARA, Barcelona) potentially in France.

Poland is one of the EU’s biggest producers of biofuels, with production estimated at around 30 million litres per month.

EBB’s President, Alain Brinon commented, “The  EBB is  deeply  concerned  by  such  a  flagrant breach  of  the  EU  law  and  principles… We will actively strive to identify the source of the problem, as well as find effective solutions that will  keep  the  EU  internal  market  for  biodiesel  united  and  functioning at  a  level playing  field  again”.

This week, the EU Commission confirmed to the BBC that it had received a complaint, and is analysing the information which was passed on. EBB has also alerted OLAF (Anti-Fraud  office  of  the  European  Commission)  and  the  main  voluntary  schemes  operating  in  the  continent.