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Palm Oil Controversy, red targets will share 2019 EU biodiesel market 

Biofuel quotas at EU member state level and the growing diesel market translate into around 20 mln tonnes of biodiesel in 2018 and 21 mln this year. Not all of this is physical product.

The double counting (DC) provisions in several member state legislations, among them Italy, the United Kingdom, Denmark, and the Netherlands, mean that several million tonnes of biodiesel used will be counted twice which lowers physical demand. Due to DC, fatty acid methyl esters (FAME) and hydro-treated vegetable oils (HVO) made from waste feedstock like used cooking oil (UCO), tallow, palm fatty acid distillates (PFAD) have become very competitive and are often preferred over crop-based biodiesel by refiners.

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Last year’s drought in parts of Europe tightened biodiesel feedstock supplies. Additionally, there is uncertainty over future import taxes on biodiesel from Indonesia and the size of the arrivals from Argentina, after the recent deal between the European Commission and Argentine producers. These developments coincide with rising biofuels consumption due to higher quotas and growing diesel consumption in member states. Click below to find out more about how the EU biodiesel sector’s feedstock deficit will be covered this year, and what the sector can expect from the future.

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