GHG quota law strengthens demand for rapeseed
The demand for rapeseed is set to get a boost after the German Bundestag passed a law to increase the GHG reduction obligation from 6% today to 25% in 2030 last month.
Existing biodiesel plants are expected to switch to rapeseed according to the Union for the Promotion of Oil and Protein Plants (UFOP).
In the short term, the demand for rapeseed oil for biofuel production will increase, and not only in Germany.
With the Act on the Further Development of the GHG Quota, which was passed the German government has implemented the new version of the Renewable Energies Directive (REDII) into national law.
The central component is the ambitious increase in the GHG reduction obligation from 6% today to 7% in 2022 and finally to 25% in 2030.
At the same time, the exclusion of biofuels from palm oil provided for by EU law has been brought forward to 2023. For 2022, the share of biofuels from palm oil will be limited to 0.9%. This will strengthen the demand for rapeseed oil.
In 2020, about 3 million tons of biodiesel and hydrogenated vegetable oil (HVO) were needed in Germany to meet the GHG quota.
Of this, an estimated 1 million t of biodiesel was produced from waste oils.
However, with the implementation of RED II in all member states, blending quotas for bio-kerosene (HVO-based) from waste oils will also be introduced.
Existing biodiesel plants, however, will have to rely on rapeseed oil, according to UFOP's expectations. In the short term, therefore, the demand for rapeseed oil for biofuel production will increase, and not only in Germany.
The increase in the penalty payment from €460 to €600/t CO2 will also significantly increase the pressure on market participants to act and comply
Existing biodiesel plants are expected to switch to rapeseed according to the Union for the Promotion of Oil and Protein Plants (UFOP).
In the short term, the demand for rapeseed oil for biofuel production will increase, and not only in Germany.
With the Act on the Further Development of the GHG Quota, which was passed the German government has implemented the new version of the Renewable Energies Directive (REDII) into national law.
The central component is the ambitious increase in the GHG reduction obligation from 6% today to 7% in 2022 and finally to 25% in 2030.
At the same time, the exclusion of biofuels from palm oil provided for by EU law has been brought forward to 2023. For 2022, the share of biofuels from palm oil will be limited to 0.9%. This will strengthen the demand for rapeseed oil.
In 2020, about 3 million tons of biodiesel and hydrogenated vegetable oil (HVO) were needed in Germany to meet the GHG quota.
Of this, an estimated 1 million t of biodiesel was produced from waste oils.
However, with the implementation of RED II in all member states, blending quotas for bio-kerosene (HVO-based) from waste oils will also be introduced.
Existing biodiesel plants, however, will have to rely on rapeseed oil, according to UFOP's expectations. In the short term, therefore, the demand for rapeseed oil for biofuel production will increase, and not only in Germany.
The increase in the penalty payment from €460 to €600/t CO2 will also significantly increase the pressure on market participants to act and comply
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