Biofuels association Ewaba calls for B10 standard

The European Commission should replace B7 diesel blends with a higher B10 diesel standard grade across Europe to support the EU's climate mitigation policies, the European waste-to-advanced biofuels association (Ewaba) said.

The European Commission's 2030 Climate target plan published today emphasizes the importance of biomass wastes, residues and waste-based biodiesel for the decarbonisation of the transport sector and their contribution to significantly lower emissions from combustion engine passenger cars and heavy-duty vehicles.

But higher blends such as B10 should be introduced as part of the revisions for the Renewable Energy Directive (RED) II and Fuel Quality Directive (FQD) — planned for mid-2021 — and prior to its official deployment in member states, the association said. "Any diesel car circulating on EU roads can function perfectly well with a higher sustainable biodiesel blend," Ewaba said.

The association also highlighted the need for the European Commission to remove the cap for waste-based biofuels deriving from feedstocks in part B of Annex IX — currently under a 1.7pc cap on the RED II — as the original rationale behind it "is flawed". The Commission plans changes next year in terms of traceability, certification and addition of new feedstocks in Annex IX that could ensure the long-term sustainability of the sector.

Used cooking oil methyl ester (Ucome) and tallow methyl ester (TME) are eligible for double counting against domestic blending mandates in most European member states and enjoy a price premium over crop-based biodiesel blends as a result of their higher greenhouse gas (GHG) savings emissions.

Ucome and used cooking oil (UCO) supply shortages following an extended period of lockdown measures in Europe led to sharp gains for waste biodiesel prices last month. On 7 August, Ucome fob ARA surpassed $1,380/t while the TME fob ARA settled just over $1,370/t.

Prices have declined since then amid uncertainty around biodiesel demand for the fourth quarter and a rise in covid-19 related cases around Europe, but market participants expect demand to remain supported by higher blending mandates across the EU in 2020, with EU member states looking to meet their targets for biodiesel consumption under RED and FQD.

By Leonidas Kanonis