German biodiesel-blend rate hits all-time low

Germany’s Union for the Promotion of Oil and Protein Plants (UFOP) announced March 4 that, in November, the blending of biodiesel with diesel fuel reached a historic low of 3.9 percent in Germany since the introduction of the blending obligation in 2009.

According to statistics recently published by the German Federal Office of Economics and Export Control (BAFA), the quantity physically blended was only 106,900 metric tons.

Total consumption of biodiesel and renewable diesel fell below 2 million tons for the first time in the period of January to November.

In the 2024 quota year, the maximum blending level of 8.5 percent was reached in March.

As the diesel fuel standard EN 590 limits the biodiesel content to a maximum of 7 percent by volume (B7), the proportion above this is hydrogenated vegetable oil (HVO), which can be blended with B7 up to an additional 26 percent.

A 3.9 percent blending in November therefore corresponds to 106,900 tons of biodiesel that was physically blended, compared to 204,400 tons in March.

UFOP said it also expects lower blending in December, estimating that the total consumption of biodiesel and HVO will fall to around 2.20 million tons in 2024—down from 2.62 million tons the previous year—despite an increase in the greenhouse-gas (GHG) quota-reduction obligation from 8 percent to 9.35 percent.

The organization once again stated that this is a consequence of the double-counting of biodiesel or HVO from certain waste categories towards the quota obligation and the existing surplus of GHG quotas.

The double-counting, according to UFOP, must therefore be abolished.

“There will be an opportunity to do so in the course of the draft amendment to the federal emission control act to be presented by the new federal government in spring 2025, which is intended to transpose the amended Renewable Energy Directive (RED III) into national law,” UFOP stated. “UFOP is calling for the basis for image-damaging fraud to be removed and stricter requirements for accompanying goods inspections to be introduced.”

UFOP added that it welcomes the federal environment ministry’s approach of linking market access to confirmation of authorization for on-site inspections.

“This regulation must be introduced throughout Europe in view of the EU Union Database (UDB) currently in preparation,” UFOP stated. “The entire supply chain—from the first gathering point to the biofuel producer—must register in the UDB. The certification requirements for the annual audit and for the on-site inspection must be expanded for this purpose—disaudits must be ruled out. The extended requirements are the basis for official follow-up inspections. It should be emphasized that additional certification costs are incurred by the manufacturer—the verification audits can be carried out by the competent authorities of the member states in the EU or in third countries in accordance with the risk assessment or in specific cases of suspicion, initiated by the EU Commission.”

UFOP also expressed concerns over the possible changes in U.S. customs and subsidization policy for biofuels.

“These could significantly increase supply pressure in the EU for used edible oils and fats,” UFOP stated. “Market observers see the international biofuels industry facing new critical challenges as the U.S. government has introduced the announced tariffs of 25 percent on nonenergy imports from Canada and Mexico as well as 10 percent on Canadian energy imports and an additional 10 percent on Chinese goods. These disruptions to trade could also lead to the diversion of UCO exports from the U.S. to the EU. They should therefore be monitored accordingly. At the same time, UFOP sees a need for action in the tracking, tracing and verification of UCO goods flows in Europe. The issue of a possible redeclaration and raw-material testing by biofuel producers has not yet been clarified between the EU Commission and the member states. These gaps in evidence must also be closed. This is another reason why the confirmation of on-site inspections is an important additional measure.”