Europe Biofuel Market

Europe Biofuel Market Analysis

The Europe Biofuel Market is expected to register a CAGR of greater than 5.5% during the forecast period.

Due to regional lockdowns and a decline in the demand for biofuels, the COVID-19 outbreak had a negative effect on the market.Currently, the market has reached pre-pandemic levels.

• Factors such as concerns about the environment, peak oil, energy security, fuel diversity, and sustainability are likely to drive the biofuel market in the region.
• However, the initial cost of providing energy through biofuel is much higher than that of fossil fuels, which may act as a restraint on the market.
• Some countries, like Germany, the UK, the Netherlands, and Sweden, want to blend biodiesel with other fuels to get pure biodiesel, which can be used as fuel in diesel engines.This is likely to give the biofuel market a lot of chances in the near future.
• Germany has been the largest market for biofuel for the last three years, and it is the largest consumer of biofuel in the European Union.

Europe Biofuel Market Trends

Biodiesel is Likely to Dominate the Market

• Biodiesel is a clean-burning alternative fuel produced from domestic and renewable resources. This biofuel is made from vegetable oils, animal fats, or recycled greases. Biodiesel is non-toxic and can be the source of fuel for diesel-powered vehicles.
• Europe makes the most biofuels, such as biodiesel and ethanol, than any other place.In 2020, the region produced 302 million barrels (mbbl) of biofuel, which was higher compared to 260 mbbl of biofuel in 2015.
• Moreover, due to limited fuel switching, biodiesel is the primary fuel used in heavy-duty vehicles, agriculture, construction, mining, and other heavy industries. With improved engine efficiency, this offsets the increased demand tied to economic growth.
• In March 2022, BioEnergy International GmBH built a cutting-edge biodiesel production facility in Hungary that was believed to fuel 70,000 cars and save 150,000 tons of carbon dioxide. The new facility will significantly help Hungary meet its goals to create 55% fewer greenhouse gases by 2030 and achieve climate neutrality by 2050.
• Because of these changes, the biodiesel market is expected to grow during the forecast period.

Germany is Expected to Dominate the Market

• Germany is one of the largest producers of biofuel in the world. The country is encouraging the usage of biofuel in the road transportation sector to reduce greenhouse gas emissions.
• In 2021, the country produced 54 thousand barrels of oil equivalent per day of biofuel, which is equivalent to 4% of the world's biofuel production.
• In February 2022, BDI-BioEnergy International GmbH announced a contract with Renewable Energy Group to upgrade two biodiesel plants in Germany by installing feedstock pre-treatment technology to process fats and oils. The project is expected to be commissioned by the second half of 2023.
• By 2030, Germany's Ministry of Agriculture plans to phase out the use of biofuels made from food and feed crops like sunflower and soy oils. This is mostly because of supply chain disruptions brought on by Russia's invasion of Ukraine and rising feedstock costs. The 200,000 metric tons per month of sunflower oil shipments to the European Union have been stopped since March 2022 as a result of Russia's invasion of Ukraine. Since 35% to 45% of the sunflower oil used in EU refineries comes from Ukraine, the region's supply is thought to last four to six weeks. With Ukraine and Russia accounting for about 80% of global exports of sunflower oil, Russia's invasion of Ukraine has left importers such as the European Union looking for alternatives. Thus, such instances are likely to restrain the demand for feed and food crops for biodiesel production in Germany.
• In May 2021, the German government introduced a new biofuel law. As per the new law, obligated oil companies will have to significantly increase the use of biodiesel, bioethanol, and biomethane in the transportation sector to reduce carbon emissions.
• This is likely to boost the biofuel market in the country, which is expected to support the growth of the European biofuel market during the forecast period.

Europe Biofuel Industry Overview

The European biofuel market is fragmented. Some of the key players in this market (in no particular order) include UPM-Kymmene Oyj, Green Fuel Nordic Oy, Svenska Cellulosa AB, Preem AB, SunPine AB, Galp Energia, SGPS SA, Biomethanol Chemie Nederland BV, Beta Renewables SpA, Borregaard ASA, and others.

Europe Biofuel Market Leaders

Europe Biofuel Market News

• March 2022: Rossi Biofuel Zrt, a subsidiary of the ENVIEN Group, inaugurated a new biodiesel plant in Hungary. This plant was built by BDI-BioEnergy International GmbH. The facility is a multi-feedstock plant in Komárom, Hungary. The new plant has a capacity of 60,000 tons per annum, and thus, the total biodiesel production capacity of the company has increased from 150,000 to 210,000 tons per annum.
• January 2022: Liebherr, a German-Swiss multinational equipment manufacturer, announced its plan to increase its use of Neste MY Renewable Diesel in its plant in Kirchdorf, Germany. The company develops and manufactures approximately 2,500 machines, which include hydraulic excavators and material handling machines.
• January 2022: Repsol SA selected Honeywell Technologies to supply an integrated control and safety system (ICSS) for the first advanced biofuel production plant to be built in Spain.