Successful learning process

The biodiesel unit is a development based on an existing, yet fully converted unit. Any start-up of a new unit is a learning process with its traditional teething troubles. The same is true for Proviron. Nevertheless, we did meet the agreed contracts for the Belgian market.

Working with natural feedstock always brings unpredictable challenges such as the varying quality. We have started a debottlenecking programme to modify the unit in some crucial areas, possibly enhancing nameplate capacity. This offers opportunities to compete for quota of some other European markets, which would also spread our fixed costs. Our customers will obviously continue to be able to count on the self-evident Proviron quality and service.

Strong arguments

Biodiesel offers strong social arguments as well as plusses for the company. The so-called competition with conventional food crops doesn’t make sense in Europe and certainly not in Belgium. Only about three percent of vegetable oils are used globally for the production of bio fuels. True, basic oils derived from palm, rape and soy became scarcer which raised prices, but that was because of an increased demand from growth countries (especially India and China) and worldwide crop failures. Until recently, our government subsidised farmers to leave productive land fallow! Moreover, biodiesel does have a favourable CO2 balance in comparison with petroleum. The European Commission has confirmed its approval of adding bio fuels to traditional fuels. In any case, bio fuels are not the main cause of raised food prices.

Biodiesel is not an end in itself for Proviron. It opens new doors to know-how, expertise and renewed product lines. It is leverage to both new forms of cooperation with the global agricultural sector as well as expanding our business portfolio of renewable materials. The market and the consumer are ready.

Furthermore, biodiesel unit spin-offs are interesting. Certain by-products are environmentally friendly and directly useful in applications such as slurry processing and soil remediation. We are also investigating other derived molecules, which will the basis of innovative chemicals. Thus, biodiesel will get its own “R&D pipe line”.

Legislation

The pricing mechanism and detaxation for customers as it was established a few years ago, may have been realistic then but is no longer workable. Because of raised oil prices there are fewer incentives for customers – both producers and distributors - to add biodiesel. We therefore argue in favour of the French system which imposes fines on companies failing to add biodiesel.