(Bloomberg) — China is flooding the United States with used cooking oil that the biofuel industry fears may be contaminated, hurting U.S. farmers and President Joe Biden’s efforts to promote climate-friendly energy.
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U.S. imports of used cooking oil, an ingredient used to make renewable diesel, more than tripled in 2023 from the previous year, with more than 50% coming from China, according to the U.S. International Trade Commission. U.S. industry groups and biofuel executives are increasingly concerned that much of these supplies are fraudulent and are urging the government to tighten import controls.
The heightened suspicions come after Europe’s biofuel industry expressed similar concerns last year about cooking oil from China. Used cooking oil has a better carbon intensity score than largely U.S.-produced raw materials, like fresh soybean oil, so any potentially contaminated imports benefit from Biden’s carbon incentives. renewable energy to the detriment of American farmers.
Read more: Asia floods Europe with green fuel suspected of being fraudulent
“We’re putting more pressure on the U.S. government to say what we’re actually importing,” said Todd Becker, CEO of Green Plains Inc., which through its ethanol production sells distillers corn, also a green ingredient in diesel. “Someone needs to understand that this is not all cooking oil the Chinese use.”
Used and contaminated cooking oil would make a difficult situation worse for farmers and agricultural businesses. Companies such as Bunge Global SA and Archer-Daniels-Midland Co. are counting on growing demand for crop-based green diesel feedstock, but competition from foreign imports is eating into their profits and jeopardizing their ambitious expansion plans. . More broadly, there is a risk that illegal shipments could escalate trade tensions between China and the United States.
Imports of used cooking oil, or UCO, amounted to 1.4 million metric tons (3.1 billion pounds) in 2023, equivalent to the oil extracted from more than 6% of the seeds American soybeans crushed to make soybean oil last season. In addition to having a more favorable carbon intensity score, UCO is also sold for about a third less than refined soybean oil.
Read more: Skyrocketing Imports of Green Diesel Feedstock Disrupts US Soybean Market
One of the biggest concerns is that Chinese shippers are adding UCOs to fresh palm oil. Palm oil, the world’s most widely used vegetable oil, is a scourge for environmentalists and many countries because the industry is a key driver of deforestation in countries like Indonesia and is also linked to abuse work.
China’s Commerce Ministry did not respond to a faxed request for comment.
The Environmental Protection Agency has held discussions with industry stakeholders, including the National Oilseed Processors Association, about concerns about increased imports of UCO and other food waste, according to the spokesperson of the agency, Nick Conger. He said the EPA is aware of the increase in imports and…
