The Government has rejected a recommendation from the Trade Remedies Authority (TRA) to impose anti-subsidy measures on hydrotreated vegetable oil (HVO) biodiesel imported from the United States. Following its investigation, the TRA concluded that US HVO imports were subsidised and had caused injury to UK industry, recommending a fixed duty of between £258.10 and £266.68 per tonne.
However, as part of its assessment, the TRA also concluded that applying the measure would not be in the UK’s economic interests.
After considering the TRA recommendation and wider public-interest factors, the Secretary of State decided not to impose the duties. The decision took effect from 11 September, with HMRC also ceasing the registration of the HVO imports concerned.
The Renewable Transport Fuel Association (RTFA), which represents businesses involved in producing and supplying renewable transport fuels in the UK, has raised concerns over the longer-term impact on domestic production. The association argues that continued competition from subsidised imports could put UK biodiesel manufacturing capacity and skilled employment under pressure, while increasing reliance on overseas fuel supplies.
Domestic production impact
Alex Wolfe, chief executive of the RTFA, said: “The issue here is much bigger than the price of a tonne of biodiesel today. It is about what sort of renewable fuels industry we want the United Kingdom to have in five, ten or twenty years. We need more clean fuel production capacity, not less.
“The RTFA is not asking Government to shield UK producers from competition. We are asking for a level playing field.”
The RTFA has called on Government to consider the longer-term value of retaining domestic renewable fuel production, investment, skilled jobs and supply-chain resilience alongside the immediate economic impact of imported fuel.
The TRA investigation covered HVO biodiesel originating in the US, including renewable or green diesel, but excluded synthetic paraffinic kerosene used as sustainable aviation fuel.
While the UK does not currently have dedicated HVO production, it has an established FAME biodiesel manufacturing sector using waste and other renewable feedstocks. The TRA investigation considered whether imports of subsidised US HVO were causing injury to that domestic industry.
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