The UK government has officially enacted new anti-dumping measures on Chinese biodiesel, levying immediate duties of up to 54.64% to protect domestic producers from unfair competition.
Effective from November 25, 2025, the Secretary of State accepted the final recommendation from the Trade Remedies Authority (TRA). The ruling confirms that dumped Chinese biodiesel imports have caused “material injury” to British manufacturers, specifically naming industry leaders Argent Energy and Olleco as victims of the price undercutting.
Key Takeaways
- Massive Tariffs: A general duty rate of 54.64% applies to most exporters, with a reduced rate of 14.79% for the Zhuoyue Group.
- SAF Exemption: Sustainable Aviation Fuel (SAF) is explicitly excluded from the new Chinese biodiesel duties to protect the aviation decarbonization roadmap.
- Scope of Duty: The tariffs cover both FAME and HVO (Hydrotreated Vegetable Oil) but exempt pure SAF.
- Immediate Effect: The measures are legally binding as of Tuesday, 25 November 2025.
Breakdown of the New Chinese Biodiesel Duties
The implementation of these tariffs follows an extensive investigation by the TRA, which analyzed the “Statement of Essential Facts.” The authority concluded that intervention was necessary to preserve the UK’s economic interest.
The duty structure is designed to penalize non-cooperating exporters heavily while setting a baseline for others:
- 54.64% Ad Valorem Duty: Applied to “all other exporters” of Chinese biodiesel.
- 14.79% Ad Valorem Duty: Applied specifically to the Zhuoyue Group and other non-sampled cooperating exporters.
These duties apply to a broad range of renewable fuels, including fatty-acid mono-alkylesters (FAME) and paraffinic gasoils obtained from synthesis or hydrotreatment (HVO), whether in pure form or blended.
Protecting UK Producers: Argent Energy and Olleco
The core driver of this policy is the “material injury” sustained by UK assets. The influx of low-cost Chinese biodiesel has severely compressed margins for European and British producers over the last two years.
By confirming that dumping has occurred, the TRA is attempting to level the playing field for companies like Argent Energy and Olleco. These producers rely on waste-based feedstocks (such as Used Cooking Oil) and have struggled to compete against Chinese volumes that were often suspected of mislabeling or aggressive subsidies. The new duties aim to restore fair pricing, ensuring that domestic infrastructure remains commercially viable.
The SAF Exclusion: A Strategic Decision
Notably, the Trade Remedies Authority excluded Sustainable Aviation Fuel (SAF) from the Chinese biodiesel anti-dumping measures.
This distinction is critical for the “Bioenergy Business” audience. While FAME and HVO for road transport are now heavily tariffed, the UK government is signaling that it cannot afford to restrict the supply of SAF. With mandates looming and domestic SAF production still in its infancy, blocking Chinese SAF could derail the airline industry’s ability to meet carbon reduction targets. This creates a clear bifurcation in the market: protectionism for road fuels, but open borders for aviation fuels.
Bioenergy Business Analysis: Market Implications
For investors and plant managers, this ruling fundamentally alters the UK fuel supply chain.
- HVO Price Spike: We expect an immediate tightening of HVO supply in the UK, leading to a price increase. This will be bullish for non-Chinese importers (e.g., from the US or Europe) and domestic producers.
- Feedstock Shifts: With Chinese biodiesel effectively priced out of the road market (at a 54% markup), UK blenders will scramble to secure alternative volumes.
- Asset Valuation: Domestic plants owned by Argent and Olleco effectively just received a regulatory moat. Their production is now significantly more competitive against the primary source of low-cost imports.
