The Danish Fuels Industry Association published a detailed energy report for the year 2017. The figures describing the biodiesel feedstock mix show that rapeseed has gained a massive market share compared to palm, the report even mentioning a “phase-out” of the Asian feedstock.
In 2016, Denmark had seen a serious flow of palm and PFAD-based HVO hitting the market with a total quantity estimated at 72 KT. This scenario was not repeated in 2017 as only 12 KT of palm-PFAD-based biofuels have been reported by the Danish Fuels Industry Association’s report. Instead, RME imports have increased to 90 KT (+1893% vs 2016) to add to the 70 KT local production, putting the Danish RME market at a big 160 KT in 2017. The push of the rapeseed quality has also been done at the expense of TME, whose use proved to be shy last year (19 KT, down from 35 KT in 2016). The trade data highlighted a strong increase of the exports (we believe constituted mostly of TME) from 19 KT in 2016 to 44 KT in 2017. The local TME producer has found a better business abroad, with 19 KT sent to Italy and 21 KT to Spain, the latest destination being likely a transiting one before the product was sent to Italy. There is no official discussion about a ban of palm in Denmark but it looks like blenders have chosen to voluntarily rely more on rapeseed than on palm. The document mentions that “from 2016 to 2017, the use of palm oil has almost ceased. From 30% of the biofuels mix in 2014, palm oil (including PFAD) accounted for less than 5% in 2017. As a result of palm oil being largely phased out, Asia’s share (in the feedstock mix) has fallen accordingly.” The price premium on HVO compared to RME may have also finally been considered by local blenders.