Callanan fires green debate in Europe's heartland

A North-east politician is leading the drive to promote the region's capabilities in home-grown bio-fuel production.

The voisce of the North-east is reverberating around Europe's political heartland, thanks to Euro MP Martin Callanan. Along with Labour MEP Stephen Hughes and Liberal Democrat MEP

Fiona Hall, Martin is flying the flag for the region and influencing major policy decisions in the corridors of Brussels.

Martin, who became the first ever Conservative MEP for the North-east when he was elected in June 1999, has been pushing the region's credentials in the production of home-grown bio-fuel - a drive led by Ensus, the Yarm firm behind the fast-emerging £250m bio-ethanol plant at Wilton.

Splash and Dash

Martin has led the campaign against the 'splash and dash' policy that allows millions of gallons of cut price biofuels to be dumped in Britain.

'Splash and dash' refers to biodiesel shipped to the US, often from Europe, and mixed with a tiny amount of ordinary diesel to take advantage of US government subsidies for US-based refining.

It is then shipped back to Europe where it undercuts British and European producers.

Martin says: "The biofuels industry on Teesside has already been severely damaged by what is clearly unfair competition.

I just hope that this matter can be resolved quickly so that the major biodiesel investments that have been made on Teesside will not be in vain."

Convenient Scapegoat

"Teesside can compete with the rest of the world on quality and price if there's a level playing field.

"It should be clear to the EU and the Government that biofuels have a role to play in our country's energy mix.

"We should be doing all we can to support the biodiesel industry in Britain, not standing idly by while US firms drive our own companies out of business."

Martin, who was re-elected as Tory MEP in 2004, is also bending policymakers' ears on the long-running food versus fuel debate, claiming the biodiesel industry must not be used as a scapegoat for spiraling world food prices.

He says: "The increase we've seen in the global price of food is essentially down to the greatly increased cost of oil and rampant demand from the growing economies of China and India.

"Biodiesel can seem a convenient scapegoat, but if we are to lessen our dependence on oil and develop cleaner alternatives, then it's obvious to me that biofuels must play a part."

He warned that ongoing negative publicity would continue to squeeze the industry, leading to more trouble or the North-east's hard-hit biodiesel companies.

The region has already seen their first casualty - D1 Oils pulled out of Middlesbrough, claiming locally-grown bio-fuel offered little commercial incentive - while potential investors in the biofuels feed chain have become increasingly wary.