Germany reports decline in biodiesel use.
In the first half of 2024, biodiesel consumption declined sharply compared to the previous year. Bioethanol use increased during the same period.
According to the Federal Office of Economics and Export Control (BAFA), consumption of biodiesel fell by 3% to 197,700 tonnes in June compared to the previous month.
In the year-on-year comparison, the decline amounts to as much as 14.6 per cent. Consumption of diesel reached a volume of 2.5 million tonnes in June 2024, up 4.7 per cent on the previous month, while remaining 3.6 per cent below the previous year’s volume. As a result, the incorporation rate dipped significantly to 7.4 per cent, a level below the half-year average and clearly below the rate of 8.3 per cent recorded in June 2023. In the first half of 2024, the use of biodiesel for blending amounted to around 1.2 million tonnes, down 7.0 per cent from the same period in 2023. Consumption of B7 diesel fuel reached just over 14.2 million tonnes, falling almost 5 per cent short of the previous year’s volume. Consequently, according to research by Agrarmarkt Informations-Gesellschaft (mbH), the average incorporation in blends dropped 0.2 percentage points to 7.7 per cent compared to the year-earlier period.
The use of bioethanol also declined in June 2024. At 105,800 tonnes, consumption was down 2.1 per cent on the previous month. Bioethanol use in blends decreased 3.3 per cent, although it remained 3.0 per cent above the level recorded in June 2023. On the other hand, the use in ETBE rose 14.5 per cent month-on-month, while falling 40.4 per cent compared to June 2023. Overall, the use of bioethanol in the first half of the year totalled 636,400 tonnes, exceeding the previous year’s volume by just about 8.3 per cent. During the same period, petrol consumption rose 0.7 per cent. As a consequence, the incorporation rate increased 0.5 percentage points to 7.4 per cent.
In light of these trends, the Union zur Förderung von Oel- und Proteinpflanzen e. V. (UFOP) expects sales of biodiesel and HVO in Germany to continue their downward trajectory. The association has projected overall demand for 2024 at 2.4 million tonnes, equivalent to the biodiesel and HVO sales volume in 2019. That year, legislation stipulated a greenhouse gas quota obligation of 4.0 per cent (2024: 9.35 per cent), but it did not allow for the option to double or triple count biofuels from specific waste oils and for e-mobility purposes. Nor was it possible to offset UER certificates, which are suspected of being fraudulent.
Making reference to the planned revision of greenhouse gas quota obligation legislation and redefinition of the annually increasing quota requirements, the UFOP has called for an ambitious increase of the greenhouse gas quota obligation to compensate for multiple crediting and the necessary increase in the proportional share of e-mobility in transport performance. Since the diesel fuel standard caps the incorporation of biodiesel at 7 per cent by volume and the market for B10 is not accessed through public petrol stations, the forthcoming amendment of legislation should go along with the development of a fuel strategy that, in particular, starts off the use of biodiesel in heavy goods vehicles. Without such strategy, the UFOP fears that German biodiesel producers may have to export more of their output, giving away greenhouse gas emission reduction potential to other member states. The UFOP therefore regards Federal Minister of Transportation Volker Wissing’s one-eyed focus on paraffinic fuels as inappropriate. Emphasising the bridging function of biofuels from cultivated biomass in particular, the UFOP has stressed the need for a comprehensive strategic approach that includes all compliance options.
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Germany reports decline in biodiesel use. source
