Proportion of bio-components in diesel at a record high in 2020

An openness to employing technology is a prerequisite for fulfilling the increasing quota demands

Berlin, 13 January 2022 – at around 3.45 million tonnes, the quantity of biofuel added to diesel in quota year 2020 was approximately 1 million tonnes higher than the previous record value from 2019. For the Union zur Förderung von Oel- und Proteinpflanzen e.V. (Union for the Promotion of Oil and Protein Plants, UFOP), this outcome makes it clear that the greenhouse gas (GHG) reduction obligation, increased on 1 January 2022 to 7% and rising to 25% by 2030, is achievable.
 
In order to fulfil the GHG reduction obligations by 2030 – which present a particular challenge for the transport industry – in accordance with climate protection law, an approach which is willing to employ technology in the production and application of biofuels and synthetic fuels made from renewable energy will be and remain essential.
 
In light of the insufficient expansion of production capacities for renewable energy, the e-mobility sector will not be able to handle climate change and climate goals. UFOP is therefore appealing to the new German government to show solidarity with all options for the good of evolutionary development, as opposed to showing one-sided privileged treatment. Against the backdrop of the very varied requirements and strategical approaches in the EU member states, Germany’s introduction of the GHG quota obligation has paved the way for fulfilling the climate protection goals in the transport industry. These goals could now be achieved on a competitive basis, UFOP believes, emphasising the essential meaning behind the national regulation. It is therefore regrettable that the EU Commission still refuses to allow biofuels and synthetic fuels to count towards the CO2 fleet limits. The paraffinic fuel HVO took the lead in quota year 2020 with a proportion of more than 1 million tonnes. The UFOP urges politicians to recognise not only the possibilities but also the limitations of physics in the face of differing power requirements, and in particular, the problem of a large number of existing vehicles.
 
In the coming years, biofuels made from a range of raw materials will have to take on a leading role in the replacement of fossil fuels. In quota year 2020 in Germany, around 10% of diesel consumption was replaced with biofuels. The 2020 Experience and Evaluation Report published by the Federal Office for Agriculture and Food (BLE), published mid-December 2021, further highlighted that the requirements under EU law for the proof of the origin of raw materials, cultivated area, and the necessary GHG reduction – that is to say, sustainability – are exemplary, and could also be implemented with the commercial enterprises concerned for other raw material flows which are critically discussed. In the opinion of UFOP, the accompanying transparency and documented proof of sustainability are necessary for acceptance, both within politics and with the general public.
 
For 2021, UFOP is expecting around 2.6 million tonnes in sales of biodiesel/HVO. The reason for this lower demand is the recurring possibility to be able to fulfil the quota requirement by trading or transferring quotas. In this respect, UFOP expects that any unfulfilled quota volumes from 2019 will be transferred into 2021. UFOP shall continue to follow the trade of greenhouse gases promoted by the e-mobility sector with great interest. A dynamic branch of this sector has developed quickly, such as for users of charging stations.