French gasoline rebound takes ethanol demand to record
A strong rebound in French gasoline demand in July has sent road ethanol consumption to record highs, after Covid-19 movement restrictions were eased.
French demand for ethanol and oxygenate ETBE rose for the third consecutive month in July. Data from French fuel ethanol federation SNPAA and oil industry federation CPDP showed combined ethanol and ETBE demand at just over 95,000t in July, up from close to 80,000t in June. It had dropped to 25,000t in April.
July demand was up by 6.7pc on the year. Argus estimated the calorific share of ethanol and ETBE in French gasoline stayed at 7.3pc in July, flat on the month and up from 7pc in July last year. The blend rate typically rises in winter, and hit a record high of 7.6pc in February.
Consumption in July was supported by record sales of the three gasoline grades which carry the most ethanol, E85, SP95-E10 and SP98. The E85 blend posted sales of 30,000t in July, up from 25,000t in June and up by 18pc on the year. E85 took a 3.5pc share of all French gasoline sales, short of the record 3.9pc in January and February.
Demand is also being aided by SP98 consumption which only takes 1pc ethanol, but up to 15pc of ETBE. ETBE can have a maximum quota of 47pc ethanol. SP98 demand was 205,000t in July, up by 10pc on the year.
The 10pc ethanol gasoline grade E10 posted a rise to over 410,000t in July from 320,000t in June, up by 3.8pc on the year. The share of E10 in French gasoline sales hit its highest in eight years 50pc in February, but was just under 48pc in July.
Provisional data from the CPDP suggest August ethanol consumption may stay at similar levels, but longer-term support for ethanol remains strong. Diesel car sales are continuing to decline, according to car manufacturers association the CCFA (see chart). And sales of gasoline-hybrid vehicles increased to 105,000 units in January-July from under 70,000 a year earlier, despite Covid-19 movement restrictions.
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