Market overview

Worldwide, the long-term trend in the transport sector is characterised by a high and strongly growing energy demand. However, only about 3.6 % of the global energy demand in this sector is substituted by renewable energy sources such as biofuels. Approximately 3,800 PJ of mainly bioethanol, biodiesel (FAME) and HVO diesel were brought into the transport sector in 2020 [1].

The following figure shows the development of global biofuel production volumes: globally produced bioethanol rose to 85 million m³/a by 2010 and then to about 110 million m³/a by 2019. In 2020, production decreased by about 10 % compared to the previous year due to COVID-19, and in 2022, at 107 million m³/a, a volume of bioethanol as a fuel comparable to that in 2019 is expected [2]. Since 2006, a relevant share of the biofuels used worldwide has also been provided in the form of biodiesel (FAME). After continuous growth, the volume produced was around 40 million tonnes of FAME in 2019 and is expected to be 36.3 million tonnes in 2022 [3]. Since 2007, HVO/HEFA has also been produced as a paraffinic diesel substitute in large-scale plants. This quantity increased to about 6 million t/a worldwide by 2019 and, despite the COVID-19 pandemic, will experience another massive increase to 10.4 million tonnes by 2022 [3].

The development of biofuel production and use in Germany is dominated by constantly changing legal framework conditions. In the years up to 2007, due to reduced tax rates, it was mainly pure fuels in the form of FAME and vegetable oil that were used. Between 2004 and 2007 in particular, their quantities rose sharply, but in the following years they quickly fell again due to decreasing tax concessions. The majority of biofuels are now used as blends with the fossil fuels petrol and diesel.

With the increase in the greenhouse gas quota from previously 4 % to 6 % in 2020, the amount of biofuel used has also increased significantly. In 2020, of about 2,210 PJ of energy used in road transport, about 168 PJ were from renewable sources, which corresponds to a share of 7.5 %. In addition to almost constant volumes of 89 PJ of FAME and 30 PJ of ethanol, the amount of HVO diesel used increased significantly, from 2 PJ in the previous year 2019 to 44 PJ. In the GHG quota, biomethane (2.6 PJ), electricity (0.4 PJ) and hydrogen (0.01 PJ) continue to be of minor, though increasing, importance. In 2021, the share of energy carriers counted towards the quota has fallen to 140 PJ or 6.4 % (shares in 2021 of FAME: 85 PJ, HVO: 20 PJ, ethanol: 31 PJ, biomethane: 3.5 PJ, electricity: 0.7 PJ and hydrogen: 0.02 PJ) [4,5].

[1] IEA (2022), Energy Statistics Data Browser, IEA, Paris, Available online at iea.org, last checked on 11.01.2023.

[2] IHS Markit (2021k): World Ethanol & Biofuels Report. Food & Agricultural Commodities Economics. In: IHS Markit 19 (18)

[3] IHS Markit (2021k): World Ethanol & Biofuels Report. Food & Agricultural Commodities Economics. In: IHS Markit 20 (17)

[4] Naumann K, Müller-Langer F, Schröder J, Meisel, K, Cyffka K-F (2022): Hintergrundpapier zur Quote zur Treibhausgasminderung bei Kraftstoffen. Leipzig: DBFZ. 11/2022

[5] BLE (2022): Hintergrunddaten zum Evaluations- und Erfahrungsbericht für das Jahr 2021. Hg. v. Bundesanstalt für Landwirtschaft und Ernährung. Available online at ble.de, last checked on 11.01.2023.