EU seen imposing duties on US biodiesel

LONDON (Reuters) - The European Union is likely to impose countervailing duties on U.S. biodiesel imports this year, the head of a major UK biodiesel company said on Monday.

"I think there is a fairly strong momentum towards this happening but I wouldn't expect to see it until Q2 or Q3," Andy Hunter, chief executive officer of Argent Energy told the Reuters Global Agriculture and Biofuel Summit from London.

The profitability of many EU biofuels producers has been devastated by a rapid expansion in shipments from the United States which benefit from substantial subsidies if they are blended with mineral diesel in the U.S.

The European Biodiesel Board (EBB) announced in December its intention to lodge an anti-dumping and anti-subsidy complaint with the European Commission and Hunter said he expected a filing would be made in February or March.

Hunter said EU Trade Commissioner Peter Mandelson could announce around June or July he is "minded" to impose countervailing duties which would have an immediate impact on shipments as any duty could be backdated to that date.