Global demand for advanced feedstocks from sustainable sources is already outstripping the supply, with hydrotreated vegetable oil (HVO) demand expected to increase substantially over the next decade.
There is a clear gap between current and HVO production capacity under construction and the availability of advanced waste-based feedstocks.
As a reflection of this bottleneck, refiners in Europe are currently building three times more HVO production capacity than what can be supported by readily available feedstocks.
In the US, a 10-fold overcapacity is estimated, meaning worldwide HVO refiners might face largescale short supply.
Controversial palm oil
As corporates are turning their backs on palm oil in energy applications for sustainability reasons and with the EU looking to gradually limit the imports of palm oil mill effluent (POME), the need for an amplified range of advanced feedstock streams is bigger than ever.
This is in light of the EU’s accelerated transport sector decarbonisation trajectory with Renewable Energy Directive (RED II) through the 2030s. By 2030, 14% of Europe’s road transport fuels should come...
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