German biodiesel blending hits 10 month high in August at 8.3%

In Germany, the percentage of biodiesel contained in diesel fuels rose to 8.3 per cent in August, the highest level in ten months.

In August 2021, 266,710 metric tons of biodiesel were used for blending, which was up 15 per cent on the previous month. Since at the same time, consumption of diesel increased only 2 per cent to 2.9 million tons, the incorporation rate rose to 8.3 per cent. Consequently, total consumption of diesel and biodiesel amounted to 3.2 million tons in August, which was down 1.6 per cent compared to August 2020. In the period from January to August 2021, consumption of biodiesel totalled 1.6 million tons, whereas the incorporation rate averaged 7.3 per cent, comparing to 8.8 per cent in the same period last year.

The Union zur Förderung von Oel- und Proteinpflanzen (UFOP) has pointed out that the standard for diesel fuel, DIN EN 590, places a cap on the percentage of biodiesel at 7 per cent by volume. The blending percentage exceeding this limit is hydrotreated vegetable oil (HVO). The association has contended that these volumes are still not listed by the Federal Office for Economic Affairs and Export (BAFA).

The UFOP estimates biodiesel/HVO demand at approximately 2.5 million tons for the calendar year. In other words, sales are seen to decline approximately 0.5 million tons on the extreme year 2020. According to European Fuel Quality Directive regulations, EU member states had to reduce emissions by 6 per cent the previous year without being permitted to carry over quotas. This meant they had to meet GHG quota obligations mainly by means of physical material. The carryover option to meet climate protection targets has only been reintroduced in 2021. Another reason for the decline was the continuous decrease in demand for diesel and energy due to the growth of e-mobility and the superior energy efficiency associated with this type of powertrain.