Evonik lifts its sodium methylate force majeure

German chemical firm Evonik has lifted the force majeure it issued for its production of sodium methylate solution — used as a catalyst for biodiesel production — it told Argus today.

Evonik "may continue to run at reduced production… for a certain period of time", it said. It will gradually return to former output levels.

Evonik implemented the force majeure on 9 September after technical issues "severely impacted" sodium methylate production at its plant in Niederkassel-Lulsdorf, Germany. The firm has solved these issues, it said.

The halt in Evonik's supply came just a month after German chemicals producer BASF issued a force majeure on catalysts including sodium methylate and potassium methylate. BASF is working to restore its catalyst output by the second quarter of 2022.

Recent short supply of catalysts has further boosted prices — already at historic highs — for finished biodiesel in Europe. The spread between biodiesel and various feedstocks has widened significantly since the beginning of September, despite raw material costs also holding near record highs.

Argus assessments for rapeseed methyl ester (RME), fatty acid methyl ester (Fame) and used cooking oil methyl ester (Ucome) have hit repeated fresh records in recent weeks. RME has risen most rapidly, on a combination of high demand for the winter grade and tight supply exacerbated by the catalyst shortage. The prompt Argus fob ARA range RME outright assessment hit an all-time high of $2,497/t on 8 October, up by 44pc since 1 September.

By Georgia Gratton