Biodiesel incorporation rate in diesel fuel increased further

In Germany, UFOP reports that the incorporation rate of biodiesel in diesel fuel rose even higher in August. At 9.6 percent, it surpassed the previous 9.1 percent peak seen in May 2020.

In August 2020, 282,600 tonnes of biodiesel were used for blending, which was down 2.2 per cent from the previous month. At the same time, diesel consumption declined 9.5 per cent to 2.67 million tonnes. Total consumption of diesel and biodiesel fell 8.8 per cent to 2.95 million tonnes, whereas the share of biodiesel in total consumption increased to 9.6 per cent. Compared to the same month the previous year (218,400 tonnes), biodiesel consumption rose 23 per cent. At that time, the incorporation rate was only 6.7 per cent.

The Union zur Förderung von Oel- und Proteinpflanzen (UFOP) has pointed out that Federal Office for Economic Affairs and Export Control (BAFA) statistics also include the blended amounts of hydrotreated vegetable oil (HVO) in the figures for biodiesel. The diesel fuel standard DIN EN 590 limits the incorporation of biodiesel or fatty acid methyl ester to 7 per cent by volume. The difference is the amount of HVO that is blended with diesel. UFOP has emphasised that it is not known whether and in what amounts petroleum refineries co-process vegetable oils and fats when producing fuels. According to the existing statutory regulations, this option to meet the greenhouse gas emission reduction quota (GHG quota) will cease to exist at the end of 2020.

UFOP sees its July 2020 consumption estimate – of 2.6 million tonnes of biodiesel (including HVO) – basically confirmed. The association has said that the quota year 2020 is confirming that even a GHG quota that was raised from 2 per cent to 6 per cent is met, despite the fact that quotas cannot be carried over to the obligation year 2020. UFOP has stressed that openness to technology is paramount and must be brought forward now.

Therefore, the association has repeated its call for a gradual raise of GHG quota obligations to 16 per cent between 2020 and 2030. In other words, it once again clearly rejects the draft bill on the future development of the GHG quota presented by the Federal Ministry for the Environment (BMU). UFOP has argued that the draft provides for a freeze of the 6 per cent obligation until 2025. A raise (to 7.25 per cent) is not planned until 2026. According to UFOP, the BMU fails to recognise the acute need to mobilise all options existing already today to make it possible to reach the climate protection targets in the transport sector in 2030.

It is not easily comprehensible that the BMU freezes the de-carbonisation of the transport sector in the existing vehicle fleets at a time when the EU Commission and the European Parliament are discussing a 55 to 60 per cent reduction in greenhouse gas emissions. UFOP has said that it is irresponsible for the BMU to let five years go by unused for climate protection. UFOP has strongly criticised that the ministry also ignores the fuel industry’s will to accept the challenge, fully in line with the BMU’s Coalition for Climate Protection.

An approach that is open to technology and takes into account the sustainably available biomass from agriculture is the basis on which, even today, an effective contribution to protecting the climate can be made. At the same time, the urgently needed value added potential – and consequently earnings potential for farmers and rural areas as a whole – can be raised. UFOP has urged the BMU to finally adopt a course that would connect these two challenges.