New EU biodiesel GHG calculations increase market uncertainty

September 2, 2017 |

In Europe, new biodiesel greenhouse gas calculations took effect on September 1st with new rules requiring all biodiesel that contains methanol to have reduced GHG savings. Producers now have to recalculate their GHG savings which is resulting in market uncertainty and impacted paper and physical trading.

For countries like Germany, this is having an even larger impact as they calculate biofuel usage on a GHG savings basis, not a volumetric basis. Demand for biodiesel is expected to climb, however, as more biodiesel will need to be blended in to reach the GHG savings mandates, but producers predict that biodiesel prices will also go up as a result of the increased demand. UCOME prices have also skyrocketed in the last few weeks since its high GHG savings is making it more valuable now with the new GHG calculation changes for biodiesel.

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Category: Fuels

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