Despite high oil prices, biodiesel still cannot compete in price terms with mineral diesel. The use of biodiesel is therefore conditional upon a reduction in duties or demands for an obligatory admixture percentage.
In May 2009 a Danish bill regarding obligatory admixture of 5,75 percent Biodiesel in the transport area is expected to be introduced. The law is expected 1st of January 2010 in force. Funding has, however, been set aside for limited testing of biodiesel in a number of areas in the 2006–2008 Appropriation Act.
Funding has also been set aside for the development of second generation production plants designed to employ by-products rather than foodstuffs as the raw material in biodiesel. The Danish government is not interested in supporting the use of foodstuffs as a raw material in the production of biofuel, but wishes instead to focus on the development of new technology designed to utilise by-products. Daka’s production is based on by-products and it is a second generation production plant.
Despite the present regulations governing the transport sector, the use of pure biodiesel for heating purposes is subject to duty exemptions. It may seem somewhat paradoxical for duty exemptions to have been given in an area where many other alternatives are available, while no reductions have been granted in the transport area, where alternatives to fossil fuels are few and far between. | 
