Global energy and commodity price reporting agency Argus has launched daily prices for German hydrotreated vegetable oil (HVO).

The four new Argus prices for Germany were assessed by collecting bids, offers and transactions in the pricing regions of north, west and southwest Germany, the company said on 17 January.

Prices were for HVO truck sales including energy tax and the value of greenhouse gas (GHG) emissions savings with calculated differentials to HVO Class II fob ARA barge prices also available, Argus said.

The German market for HVO is growing rapidly and with the government set to permit unrestricted HVO sales at filling stations this year further growth is expected, according to Argus.

With increasing requirements on companies to reduce emissions, HVO was growing in popularity, prompting large consuming companies to switch away from diesel, Argus said.

This was supported by the rising CO² tax and GHG savings mandates, which were set to increase the price of fossil diesel and lower the price of HVO. The GHG savings mandate in Germany is set to increase from 9.35% this year to 25% in 2030.

“As companies seek to reduce their GHG emissions, we expect HVO capacity and consumption to increase sharply over the next few years,” Argus Media chairman and chief executive Adrian Binks said.

“Our new German HVO prices have been launched in response to feedback from market participants across the industry and bring … transparency to this rapidly growing market. To operate efficiently, participants need clear and accurate pricing, based on real transactions and other indications of buying and selling interest.”

The service adds to the company’s existing range of hydro-processed biofuels prices including four classes of Argus wholesale HVO fob ARA prices, in addition to prices for Asian HVO and US renewable diesel.