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Biofuels industry calls for EU support on higher blends

  • Mercados: Biofuels, Oil products
  • 02/10/25

Industry participants at the B+ Summit in Vienna this week called for stronger EU support for higher biofuel blends, citing the need to unlock investment and accelerate decarbonisation in road transport.

The summit, held on 1–2 October and focused on scaling up renewable fuels in European transport, brought together consultants, trade groups and technology providers who highlighted the role of national tax incentives, blend mandates and vehicle approvals in enabling wider uptake of pure biodiesel (B100) and pure hydrotreated vegetable oil (HVO100).

The EU's recast Renewable Energy Directive (RED III) requires at least 14pc of energy used in transport to come from renewable sources by 2030. But the rollout of higher blends remains uneven across the bloc.

Some member states have offered tax exemptions for high blends. Austria, for example, fully exempts B100 from mineral oil taxes. Others prioritise electrification or low-level blends such as B7 — diesel with an up to 7pc biodiesel blend.

"We see three effective legislative frameworks enabling HVO100 or B100 market penetration," said Arezki Djelouadji, partner at biofuels consultancy and brokerage Greenea. "Full or partial diesel tax exemptions, such as in Germany and Sweden, creating favourable price parity or advantage; dedicated high-blend mandates without competition from other solutions, as implemented in Italy; and separation of mandates for diesel and gasoline pools, which strengthens quota market pricing, notably in France."

Each model, he added, supports demand signals and infrastructure uptake in different regulatory contexts.

Xavier Noyon, secretary-general of the European Biodiesel Board (EBB), said increased uptake of higher blends is essential to decarbonise road transport.

"At this B+ Summit, we saw once again in our discussions with end-users and fleet managers that the decarbonisation of transport will require wider adoption of higher Fame and HVO blends," he said.

Regulatory and technical barriers

Current EU fuel standards — particularly the Fuel Quality Directive (FQD), which limits bio-based diesel content to 10pc — have constrained the use of higher blends such as B20, B30 or B100. B7 remains the most widely available grade at the pump, while B100 is typically restricted to fleet use or direct delivery.

HVO100 is gaining popularity across the EU, as this fuel is accepted for use in all vehicles. By contrast, B100 remains more limited, since it requires dedicated engines and entails higher maintenance and consumption levels — factors that corporations may accept only if the price is sufficiently attractive. In France, for example, B100 is around 25pc cheaper. However, adoption is further constrained by the fact that only a few manufacturers — such as Renault, MAN, Scania, and Volvo — support it, making it less accessible in countries with older vehicle fleets, according to Greenea.

Jannes Gehl of biodiesel quality assurance group AGQM said that while manufacturer approvals for higher blends often come with increased maintenance requirements, real-world use has shown broader feasibility.

"Even blends not officially approved can frequently be used without technical issues or major adaptations," he told Argus. AGQM's B10 Fleet Project shows that B10 could be used in modern passenger cars not yet certified for the blend, while its B30 White Paper found higher blends is "not only practical but also straightforward to implement in shipping", Gehl said.

Fuel chemistry

"The challenge isn't price — it's chemistry," said Adriano Cordisco, chief executive of sustainable technology firm ReFuel Solutions.

"HVO mirrors diesel's molecular structure, enabling drop-in compatibility. B100's different chemistry requires fuel system adaptations. Bottom line: we can't make B100 drop-in compatible, but we can make fleets B100-ready. That's how we build the volumes needed for real market security."

Cordisco said B100's chemistry delivers benefits such as superior particulate reduction, better lubricity and lower cost — and that the need for adaptation is not a drawback, but the reason those advantages exist.

"These fuels complement, not compete," he added. "B100 excels where emissions impact people directly."

Argus assessed the average 2025 fob ARA price for HVO Class II at $2,007/t, compared with $1,444/t for Ucome biodiesel.

In some EU countries, B100 has remained under-utilised due to limited infrastructure and awareness. But France has seen stronger uptake of biodiesel blends than HVO, driven by tax incentives and separate targets for diesel and gasoline pools.

"It's remarkable how many different initiatives are already successfully underway in different countries, despite regulatory hurdles," said Angel Alvarez Alberdi, secretary-general of the European Waste-based and Advanced Biofuels Association (EWABA).

"I leave Vienna very optimistic about the future of higher blends of biodiesel."


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