British biodiesel firm close to collapse

British company Biofuels Corporation has been hit hard by the rising price of vegetable oil that they use to produce biodiesel. They recently had a £100million loss because of the cost of rapeseed, palm and soy oil prices that are climbing due to increased food demand. Soy demand in China rose between 22 and 29 percent in 2006. Biofuels CEO Sean Sutcliffe has complained that US subsidies for biofuel producers could threaten the entire European biofuel industry.

[Source: AutoExpress]