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Jul 2017

FAME Demand Decreased In 2016

The Dutch Emissions Authority (NEA) has just published the annual report for the biofuels use in the country last year. For the first time in three years, the total volume of Fame/HVO used dropped compared to the previous year, despite the increase of the mandate.

The report confirms that obligated parties blended less physical biofuels than last year, despite the increase of the mandate from 6.25% to 7% e.c. The main explanation relies on the growing reliance on double counted material from 56 to 66%, mainly through the use of 100% waste-based diesel bio substitutes. The sharp reduction of road diesel consumption (-5.2% for the second consecutive year) was also a driver for a weaker Fame/HVO demand.

For the first time, the use of veg oil-based Fame was completely ignored by Dutch distributors. They instead relied on UCOME (263 KT, + 25%) and TME (30 KT, -18%), making the Fame DC segment jump by 16% to 303 KT. They also blended stable quantities of uco and spent bleach earth based HVO (5 KT). Ethanol consumption proved to be stable. The fact that more waste-based material was blended resulted in the increase of the FQD compliance from 2.5% in 2015 to 2.7% in 2016. There is, however, still a long way to go until the 6% target is reached in 2020. Let’s note finally that renewable electricity on the road segment generated significantly more certificates in 2016 (equivalent to 38.1 TJ) than in 2015 (2.1 TJ).