More biodiesel consumed in the first half of 2022

According to investigations conducted by Agrarmarkt Informations-Gesellschaft (mbH), demand for diesel increased 1.6 per cent to 15.15 million tonnes in this period. The average biodiesel/HVO incorporation rate between January and June 2022 was 7.5 per cent. The use of bioethanol amounted to 573,520 tonnes and thus exceeded the previous year’s volume by just about 12 per cent. During the same period, consumption of petrol (E 5 / E 10) increased a good 7 per cent.

In June 2022, consumption of biodiesel declined 5 per cent on the previous month to 195,000 tonnes. This translates to a sharp decline of 8.7 per cent in the year-on-year comparison. The consumption of diesel reached 2.7 million tonnes in June 2022. This was up 14 per cent on the previous month, but nevertheless fell 6 per cent short of the previous year’s volume. As a result, the incorporation rate dipped significantly to 6.7 per cent, a level below the half-year average and clearly below the rate of 8 per cent recorded in June 2021. The use of bioethanol continued to decline in June 2022. At 90,910 tonnes, consumption was down 3.4 per cent on the previous month. The use of bioethanol in blends decreased 5.6 per cent, but remained 2.8 per cent above the level seen in June 2021. On the other hand, the use in ETBE rose 18.3 per cent on the previous month. Nevertheless, it fell 31 per cent short of the previous year’s volume.

The Union zur Förderung von Oel- und Proteinpflanzen e. V. (UFOP) has pegged total sales of biodiesel and HVO at approximately 2.5 million tonnes in 2022. This corresponds to approximately 55 per cent of previous diesel fuel imports from Russia of approximately 4.5 million tonnes. The association expects demand for rapeseed oil-based biodiesel/HVO to increase in the fourth quarter, which would have a stabilising effect on prices. In the northern EU countries, rapeseed oil methyl ester is added to diesel in the winter half year to meet quality requirements for winter fuel. Also, from the beginning of 2023, palm oil-based biofuels (biodiesel/HVO) will no longer be credited towards GHG-quota obligations in Germany. Other member states, such as France, Sweden, Portugal, Belgium and the Netherlands, have also excluded palm oil from being counted towards quota obligations. This gap in demand will have to be closed with rapeseed oil, among other biofuel feedstock.