HVO flexibly buffers biofuel demand

Hydrotreated vegetable oil (HVO) is used to meet greenhouse gas reduction obligations, although the cap of 7% by volume in fossil diesel fuel is insufficient to fulfill the requirements. The Union zur Förderung von Oel- und Proteinpflanzen (UFOP) has highlighted this issue and renewed its call on the Federal Ministry of Economics and the Federal Office of Economics and Export Control (BAFA) to include HVO shares in future official statistics to enhance transparency.
The association has underlined its position by pointing to the expansion of European HVO production capacity to approximately 5 million tonnes and the larger number of fuel traders and importers.
With the introduction of the sustainable aviation fuel (SAF) mandate introduced in 2025, demand for HVO is expected to rise further, potentially leading to additional price increases for HVO – even in the fuel market.