Spanish Olive Oil Industry Looks to Biodiesel to Ease Supply PressuresThursday, March 5, 2020
Spanish farmers unions are proposing that low quality lampante olive oil should be used as feedstock for biodiesel rather than paying for it to be stored until the market improves, Oils & Fats International reported citing Olive Oil Times.
The global olive oil market had been disrupted by exceptionally high initial stocks of oil including last year’s huge yield in Spain, when 1.79 million tons was produced. In response, the EU launched a scheme for the private storage of olive oil by providing subsidies to operators. The unions argue, however, that paying for storage would simply prolong the oversupply problem while using it in biodiesel would solve it. The proposal is to use 600,000 tons of olive oil this way.
The Association of Renewable Energy Companies of Spain confirmed the plan’s feasibility provided the process covered the difference in price between olive oil and other oils including soya and palm oil currently used to produce biodiesel.