European Union: Biofuels Annual

With the gradual lifting of the lockdowns, and recovering economies, consumption of bioethanol and biobased diesel (BBD) are estimated to have increased by respectively 6.1 percent and 0.6 percent in 2022. For both biofuels, the achieved level in 2022 is above the pre-COVID level of 2019, and a new record. Reinforced by the policy support measures of the second Renewable Energy Directive (REDII), both bioethanol and BBD consumption are forecast to increase by about two percent in 2023. Despite expanding demand, EU bioethanol production is anticipated to decline this year due to falling sugar beet supplies. EU BBD production is forecast to increase only marginally with lower biodiesel (fatty acid methyl esters (FAME)) production compensated by further expanding production of hydrogenation derived renewable diesels (HDRD). Based on expanding consumption and stagnating domestic production, EU imports of both bioethanol and BBD are forecast to increase more than ten percent this year.