The Energy Agency’s annual report was finally published, highlighting a temporary reduction of HVO consumption, mainly due to the HVO100 setback. Fame demand was up 23%.
A total of 1.34 million mt of HVO* have been absorbed by the Swedish market in 2019, down 8% compared to 2018. This is actually the second year in a row with a negative ratio. This evolution is mainly due to the abrupt stop of HVO100 development. In 2019, only 301 Kcum of renewable diesel was used in its pure form, down 33% from 2018. For the blending sector, the increase of the GHG mandate to 20% stimulated slightly the use of HVO by 3% to 1.04 million mt.
The volumes of Fame blended under the GHG mandate also grew by the same 3% ratio to 324 Kcum. As reported in our publications before, the B100 sector was extremely supportive in 2019 with a 82% growth recorded at 200 Kcum. This evolution contributed to limit the erosion of the pure segment, recorded at 501 Kcum (vs 560 Kcum in 2017 and 2018).
We believe that the low growth reported on the blending sector was due to the evolution of the feedstock mix. Animal fats accounted for 42% (=563 Kcum), most of it being C3 or uncategorized tallow. PFA-based HVO saw its market share tumbling from 46% in 2018 to 36% in 2019 (=482). Tall oil also increased its market share to 14% (=188) from 10% in 2018 and so did palm oil (presumably for the HVO100 outlet) to 8% (=107). The use of HVO processed from Technical Corn oil, rapeseed and other feedstocks completely disappeared in 2019.
As we anticipated, some UCOME volumes were recorded for the first time in Sweden: 46 kcum, or 9% of the mix, were used (or reported as such through Proofs of Sustainability). The rest of the Fame mix was dominated by rapeseed (85% – 430 Kcum) and other feedstocks (6% – 30 Kcum).
Unfortunately, the average GHG emissions per type of biofuel and feedstock was not published in the report.
