Argus launches new German renewable diesel service to improve transparency for downstream users
Prices for fossil and renewable diesel supported by industry stakeholders, including Siemens
HAMBURG, Germany, March 4, 2025 /PRNewswire/ — Global energy and commodity price reporting agency Argus has launched a new online service to publish monthly average prices for German HVO – hydrotreated vegetable oil, otherwise known as renewable diesel, alongside fossil diesel prices. The free site aims to improve market transparency for downstream and upstream transportation users, including distribution and logistics companies as well as shippers
Companies in road transport are required to reduce their CO2 emissions and one option is to use HVO in place of fossil diesel. They have typically sought to understand the value of HVO in relation to conventional fossil diesel, but the prices for the two fuels are driven by different market fundamentals, which can mean the price difference between them varies considerably. In 2024, for instance, the premium for HVO to fossil diesel ranged from just €5/100 litres to €40/100 litres.
HVO is made using waste materials such as used cooking oil or from so-called “tall oil” derived from wood pulp. Price changes for these feedstocks alter the price of HVO, but not that of diesel, which is refined from crude oil.
Germany’s greenhouse gas (GHG) quota rules also impact the relative price of fuels. If the price of GHG certificates increases, diesel becomes more expensive and HVO becomes cheaper, and vice-versa. This is because diesel “consumes” GHG certificates whereas HVO “produces” them.
Argus Media chairman and chief executive Adrian Binks said:
We have worked in close consultation with downstream transport companies in Germany to create new monthly average prices which provide much-needed transparency in these complex markets.
“Understanding the different feedstock price drivers helps market participants make informed decisions as the transportation sector transitions to lower-carbon fuels.”
Dirk Grund, Global Commodity Manager for Ground Transportation at Siemens said:
We are pleased that Argus has developed this new open service which gives us and our service providers a much better understanding of the real market value of HVO based on its actual fundamentals rather than relying on an assumed price correlation towards fossil diesel.
“Our strategic goal is to lower carbon emissions throughout our transport operation and accurate pricing of the relevant fuels is key to achieve this.”
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Argus launches new German renewable diesel service to improve transparency for downstream users, source
