European Union: Biofuels Annual

With the lifting of the pandemic lockdowns during 2021 and 2022, EU consumption of both bioethanol and biodiesel is picking up. Russia’s invasion of Ukraine led to surges in prices of the transport fuel blends. The skyrocketing gasoline prices have increased the competitiveness of the bioethanol component, driving sales of both the lower and higher blends. In contrast, EU consumption of biodiesel, both fatty acid methyl ester (FAME) and hydrogenation-derived renewable diesel (HDRD), is forecast to stagnate in 2022 as greater use of biodiesels with higher greenhouse gas (GHG) reduction values means that less physical volumes are needed to fulfill the mandates. EU production of bioethanol is forecast to increase, with higher volumes of sugar beets being used. EU biodiesel production is forecast to stagnate, and palm oil will partly be replaced by used cooking oil (UCO) and rapeseed oil. EU and MS policy impacts all aspects of the market, and new HDRD production plants continue to come online to meet the demand.