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.
On June 30th, British Prime Minister Tony Blair went from a visit to a children's hospice to the official opening of the £45 million Teesside 1, the first biodiesel production plant operated by Biofuels Corporation PLC. Teesside also the largest biodiesel plant in the UK and, according to the company, has the "capacity to provide a quarter of the UK's Renewable Transport Fuel Obligation 2010 target for diesel." The plant was in operation before the official opening, and the Biofuels Corpor