German biodiesel use edges higher despite falling fuel demand

Germany’s biodiesel incorporation rate continued to rise in early 2026 even as overall diesel consumption fell sharply, according to the latest market update from UFOP. The association reports that biodiesel use reached 602,365 tonnes in the first quarter, only marginally below the previous year’s level, while diesel demand dropped nearly 10 per cent year‑on‑year to 6.6 million tonnes. As a result, biodiesel’s share in the diesel pool increased from 7.7 per cent to 8.4 per cent.

March provided a notable boost, with biodiesel consumption climbing 7.7 per cent to 226,029 tonnes compared with the same month in 2025. UFOP highlights the rapid expansion of HVO, which reached 133,900 tonnes in Q1 – almost triple the previous year’s figure. This shift reflects growing interest in renewable diesel as Germany prepares for tighter greenhouse gas quota obligations under RED III.

Bioethanol also saw a modest rise in its blending share. Although total bioethanol use in Q1 fell to 273,400 tonnes, down from 317,800 tonnes a year earlier, the incorporation rate increased to 7.1 per cent in March as petrol consumption dropped 15 per cent year‑on‑year.

On the pricing side, biodiesel weakened over June, sliding to 179 ct/litre at wholesale level as crude oil retreated amid easing geopolitical tensions. UFOP notes that “biodiesel will probably lose some of its competitive advantage” if fossil prices continue to soften.

Despite mixed market signals, Germany’s biofuels sector remains resilient, supported by stable demand, expanding HVO uptake and tightening climate policy. The latest data suggests biofuels are playing an increasingly important role in offsetting declining fossil fuel use.