Sweden hydrotreated vegetable oil sales hit record in Q3 as other biofuels drop: Svebio

24.11.2017

Third quarter sales of HVO (hydrotreated vegetable oil) diesel in Sweden increased by 24% on the year, the Swedish Bioenergy Association (Svebio) said Thursday.

This was at the expense of other biofuels used for transport, with consumption for B100 FAME falling by 32% and E85 and ED95 ethanol blends falling by 16%.

Biodiesel is sold in Sweden both as pure biodiesel fuel, HVO100 and B100, and also blended into diesel. HVO100 is Sweden's second most consumed biofuel after blended HVO.

HVO100 demonstrated the biggest increase in sales in Q3, up by 111%, with September showing record monthly sales of 52,592 cubic meters, according to preliminary data from Statistics Sweden (SCB) analyzed by Svebio. This volume is greater than all ethanol, FAME and biomethane consumption combined.

Renewable fuel represented 20.1% on an energy basis of the Swedish fuel mix in Q3, up from 18.5% the year before. The share of biodiesel in the diesel mix amounted to 26.4% in energy terms.

HVO is manufactured from a variety of waste products, such as tall oil from the forest industry, as well as recycled vegetables, animal oils and fats. The FAME blend in Sweden consists almost exclusively of RME, a rapeseed-based biodiesel, as the oilseed is widely grown in the region.

Svebio stressed the need for clarity around policy and the long-term tax framework for biofuels in order to support further investment in the sector.

Uncertainty surrounds the Swedish biodiesel market, with the future mandate potentially moving to a greenhouse gas savings basis from the current fiscal incentive. This could drive greater consumption of HVO, which offers far larger GHG savings than first- or second-generation biodiesel.


platts

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