Biodiesel blending in Germany rose considerably in June

By Ron Kotrba | September 09, 2016

The relatively low purchase prices for biodiesel in Germany have stimulated demand, according to Germany’s Union for the Promotion of Oil and Protein Plants (UFOP). The biodiesel content in diesel fuel blends rose to 6.22 percent in June, the highest level since the beginning of the year.

From May to June, total diesel fuel consumption in Germany increased by nearly 5 percent, to 3.3 million metric tons, bringing overall diesel consumption for the first six months of the year to 18.6 million tons, a 7 percent rise year-on-year.

Increased diesel fuel consumption in the first half of the year drove up biodiesel blending by 1 percent, to 1.1 million tons (330.2 million gallons). According to UFOP, the volume of biodiesel in blends remained below 6 percent most of the year until June, when it rose considerably.

The Federal Office for Economic Affairs and Export Control (BAFA) reported that biodiesel demand for blending amounted to 203,223 tons (61 million gallons) in June, the largest monthly quantity in more than a year. If demand for diesel continues to rise, this could likely support biodiesel sales. According to Agrarmarkt Informations-Gesellschaft mbH (AMI), biodiesel prices have continuously increased over the past few weeks compared to diesel, which may adversely affect biodiesel sales despite whether diesel demand continues to rise.

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