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Dutch government plans to lower biofuel multipliers

  • Market: Biofuels
  • 02/11/22

The Dutch government has suggested reducing the multipliers currently applied for certain biofuels, electricity and other renewable fuels within its domestic renewable fuel units (HBE) scheme.

In a draft law aimed at amending its energy transport regulation, the Dutch ministry of infrastructure and water management has proposed lowering the multiplier for biofuels produced from feedstocks listed in Annex IX Part A and B of the EU's Renewable Energy Directive (RED II) to 1.6 from 2. It also proposes cutting the multiplier for electricity used to charge electric vehicles to 3.2 from 4. And suppliers of any liquid or gaseous renewable fuels such as methanol, jet fuel or LNG that have been greened using guarantees of origins (GOs) for renewable energy would be able to multiply the energy content by 2 instead of 2.5 under the draft law.

By lowering the multipliers, the government aims to reduce the country's dependence on Russian oil and to combat tight diesel supply, while at the same time increasing the share of physical bio- and renewable fuels in transport, which will be key to reaching the higher renewables targets in RED III that are currently being negotiated within the EU. The draft follows amendments to the Dutch biofuels law introduced earlier this month. Public consultations end on 8 November.

Each gigajoule of renewable energy that companies physically deliver to the Dutch transport sector generates one HBE, or two if a multiplier of two can be applied. Fuel suppliers can then trade to help achieve their annual obligations.

Market participants say an increasing amount of HBE-G supply has been coming from advanced biofuels used in shipping in recent months, keeping the HBE market well-supplied and discouraging physical blending of road fuels.


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