Top 10 Biodiesel Trends 2018: what’s up with the world’s favorite advanced biofuel?
#2 Supply & Demand
As controversy simmers in the US over market access and mandates, worldwide demand reports are strong
National Biodiesel Board submits FOIA request to understand small refiner exemptions
In April, we reported that the National Biodiesel Board submitted a Freedom of Information Act Request aimed at shedding light on small refiner exemptions requested and issued under the Renewable Fuel Standard.
“The EPA’s decision to grant upwards of 25 exemptions, with at least one significant waiver in the dark of night to a large and profitable refiner, raises urgent questions as to what else might be going on behind closed doors,” said Kurt Kovarik, NBB’s vice president of federal affairs. “Transparency and certainty are key to maintaining a competitive market for biodiesel, and it is critical we understand the impact any waivers could have on the industry and fuel choice for consumers.”
National Biodiesel Board submits FOIA request to understand small refiner exemptions
UK February biodiesel consumption grew faster than fossil diesel
In March, we reported that biodiesel consumption growth outpaced fossil diesel consumption in February with a 27.5% increase of biodiesel demand over January compared to just a 15% increase for its fossil counterpart, which in and of itself was nearly 4% lower on the year. The demand shift pushed the blending by volume to 3.35% compared to just 1.86% in February 2017. It was also up from the 3.03% blending volume reached the month prior.
UK February biodiesel consumption grew faster than fossil diesel
Thai biodiesel industry wants B10 to start in 2018 to soak up excess palm oil
In April, we reported that the biodiesel producers association wants the government to boost biodiesel blending to 10% in an effort to sop up excess palm oil supplies. B10 is anticipated for 2019, up from the current 7% blending mandate, but industry wants the government to move that timetable forward in order to absorb another 500,000 metric tons of palm oil. This year’s surplus is seen at around 540,000 tons compared to typical years where the surplus is between 320,000 and 350,000 tons.
Thai biodiesel industry wants B10 to start in 2018 to soak up excess palm oil
Indonesian biodiesel production seen jumping to 3.5 million tons this year
In March, we reported that Indonesian biodiesel production will reach 3.5 million metric tons this year, as much as 600,000 tons more than last year. The national oil palm estate fund raised $147 million in January and February alone for subsidizing domestic consumption of biodiesel through a levy on palm oil exports. Neighboring Malaysia could see production rise to 1 million tons on the back of its potential blending mandate increase to 10% for industrial vehicles and 7% for passenger vehicles.
Indonesian biodiesel production seen jumping to 3.5 million tons this year
UFOP sees dreary future for European rapeseed in the wake of Argentine and Indonesian biodiesel imports
In April, we reported that German trade assoiation UFOP views the prospects of European rapeseed cultivation as being acutely jeopardized. “The dumping imports from Argentina and Indonesia are becoming a question of survival for European rapeseed producers”, said the Chairman of UFOP, Wolfgang Vogel. The shutdowns and production cutbacks carried out by European biodiesel producers will continue to increase the pressure on the volume and pricing on the market for rapeseed oil and rapeseed.
The UFOP Chairman stressed that the oil percentage of more than 40% in rapeseed is the most important factor for producer pricing, and recently costs EUR640 per tons, which is around EUR100 per ton below the previous year’s levels. With an average of 6 million tons from a total of around 12 million tons, rapeseed oil is the most important raw material in the European biodiesel industry. This roughly corresponds to an area of 4 million hectares of a total of around 6.5 million hectares for rapeseed cultivation within the EU’s 28 member countries. The decline in the demand for the biodiesel industry is due to the use of oil mills in agricultural trading and ultimately among producers, stressed UFOP’s Chairman.
UFOP sees dreary future European rapeseed following Argentine and Indonesian biodiesel imports
Brazilian March biodiesel production breaks 10-year record
In May, we reported that the country broke a 10-year biodiesel record in March with a whopping 452 million liters, bringing the total for the quarter 1.13 billion liters, up nearly a third on the year thanks to the higher B10 mandate brought in ahead of time. Roughly two-thirds of the production during Q1 came from soybean oil, with the key soy-growing region of the Midwest producing the largest share of the total of about 42%, closely followed by the south with 40%.
Category: Top Stories
