Biofuel use declining in German road traffic

Biodiesel and bioethanol use is declining in the German oil industry, according to official mineral oil data published by the Federal Office of Economics and Export Control for the first quarter of 2017.

Even though German diesel consumption rose by 7.4% to 9.3 million tonnes by March, the share of biodiesel fell by 7% to around 500,000 tonnes. The bioethanol share also fell by 4.4% compared with the previous year while petrol sales rose by 2% to 4.3 million tonnes.

"The Federal Ministry of the Environment's limited refusal to adjust the amount of greenhouse gas reduction required by the law to the realities of the fuel market reduces climate protection in road traffic and harms the German biofuels industry," said Elmar Baumann, Managing Director of the German Biofuels Industry Association (VDB).

The VDB believes that Germany’s Federal Ministry of the Environment is slowing down the energy demand in transport by limiting the market share of biofuels to around 5%. VDB claims in a statement that the Ministry is planning a further restriction on renewable energies in the transport sector by allowing the oil industry to report emissions reductions in upstream oil production towards the targets for renewable energy in the transport sector. 

"The Federal Environment Ministry actively ensures a market share of fossil fuels of about 95 percent. It thus prevents the use of electromobility and biofuels at the expense of climate protection, "said Baumann.

From 2020 the German petroleum industry will be obliged to lower greenhouse gas (GHG) emissions of its fuels by 6% compared to 2010. The current draft of the Upstream Emissions Reduction legislation means oil companies can meet 1.75% of this target through UER measures, with the remaining 4.25% coming through low-emission fuels and propulsion such as e-mobility, biofuels, hydrogen and natural gas.

The VDR claims that a lack of increase for renewables in the GHG quota is causing a decline in the market share for renewable energy.