Evonik catalyst FM a concern for EU biodiesel output

German chemical firm Evonik last week declared force majeure on deliveries of sodium methylate solution — a catalyst used to produce biodiesel — adding to market concerns about the fuel's availability in Europe.

Evonik told customers in a letter that "unexpected technical issues" at its production site in Niederkassel-Lülsdorf in Germany had severely affected production of sodium methylate solution.

The force majeure "may result in delays in delivery and/or a reduction in delivered volumes of sodium methylate", the company said. Evonik said it would not comment "due to the exceptional market situation".

The catalyst is a key component in biodiesel production, and the force majeure announcement added to market concerns about its availability in Europe, in what is an already tight biodiesel market.

The force majeure at Evonik follows a similar announcement made by chemical company BASF after a fire at its Ludwigshafen plant in August.

BASF and Evonik are key producers of alcoholates supplying around 80pc of the European market, according to participants.

Waste- and crop-based prompt biodiesel prices soared in recent sessions amid increased demand and tighter supply in Europe. The Argus RED used cooking oil methyl ester (Ucome) and rapeseed oil methyl ester (RME) fob ARA range outright spot prices yesterday hit a new record high of $1,898.03/t and $1,873/t, respectively.

By Sophie Barthel