Spanish biodiesel production has been boosted by the arrival of foreign firms restarting previously idled plants. Much of new output is destined for export, as both imports and domestic demand are close to flat compared with last year.
Provisional data compiled by Argus from Spanish energy and markets regulator the CNMC, and strategic reserve Cores and its national customs bureau, shows biodiesel production of 140,000 tonnes (33,690 b/d) in May, its highest on record and up by 50pc against the same month a year ago.
Over the first five months of the year, biodiesel production of around 400,000t was up by 39pc compared with the same period last year — a rate close to the previous high point for the same period, in 2011.
Rising Spanish production has followed the first-quarter restart of the country's largest biodiesel plant, the 600,000 t/yr Infinita unit at the Mediterranean port of Castellon. Plant operator Indonesian palm oil and biodiesel producer Musim Mas has struck deals to buy or operate 1.1mn t/yr of Spanish biodiesel production capacity and avoided the EU's 2013 Europe-wide tariffs on biodiesel imports from Indonesia and Argentina, under anti-dumping legislation.
Instead, Musim importing and refining palm oil at Castellon to supply domestic demand, as well as eyeing exports.
And other foreign firms are buying cheap Spanish biodiesel capacity. Singapore based producer Ennovor has taken over a 60,000 t/yr facility at Huesca, north of Zaragoza. The company specialises biodiesel production from used cooking oil and waste animal fats.
Rising production has led to record biodiesel export licences, according to CNMC. Export licences in May for 111,000t were up by 54pc against May 2013, and the second-highest monthly exports on record — just behind 115,000t licensed for export in March. In the first five months of this year Spain has licensed 488,000t of biodiesel for export, up by 80pc from the 271,000t shipped the same period last year.
Not all the biodiesel licensed for export by the Spanish authorities is shipped out — some volumes are held in storage before being re-sold to a Spanish blender, while Some volumes may also be stored for some months before being physically exported from Spain, market participants said.
EU tariffs imposed on Argentinian and Indonesian imports have provided great impetus behind rising production: imports from the two countries had dropped to zero in the first five months of this year, from 177,000t and 64,000t, respectively, in 2013.
In contrast, the start-up of Spain's quota system — with only certain biodiesel producers allowed to sell to the domestic market — has seen imports rise, the CNMC said. Imports of 424,000t in the first five months were up by 8pc year on year. Producers licensed to sell in the Spanish market include companies from the Netherlands, Portugal and Germany starting selling into the Spanish market.
Send comments to feedback@argusmedia.com
If you would like to review other ArgusMedia.com content options, request more information about Argus' energy news, data and analysis services.
Copyright © 2014 Argus Media Ltd - www.ArgusMedia.com - All rights reserved.
