European production of fatty acid methyl ester (FAME) and hydrotreated vegetable oil (HVO) is stagnating, according to a report by the European Biodiesel Board (EBB), a non-profit organisation whose members represent about 70% of biodiesel production in the European Union (EU).
Published in July, the EBB’s 2024 Statistical Report gives an overview of biodiesel production, consumption, feedstock use and trade developments across the European Union (EU).
At a time when renewable fuel volumes were needed to scale up significantly to meet the EU’s 2030 climate targets, the EBB said the bloc’s production of biodiesel (FAME and HVO) was stagnating, with a hesitancy to invest in expansion, policy uncertainty and regulatory complexity playing key roles.
“Particularly, crop-based feedstocks face political scrutiny, constraining growth even though they remain the main volume contributors. There is also the aspect of fraud, and the urgent need to reform the verification system. Stronger verification will provide the credibility and predictability needed to drive long-term growth,” the EBB said.
In terms of market share, FAME continued to dominate (9.8M tonnes) and there had been moderate but consistent growth in HVO volumes, increasing from about 4.5M tonnes in 2019 to around 5.6M tonnes by 2024.
The use of hydrotreated esters and fatty acids (HEFA) in sustainable aviation fuel (SAF) was also taking off and was rapidly becoming the main pathway for decarbonisation of the aviation sector, although only produced in small volumes (0.26M tonnes) in the EU.
The report also reaffirmed the continued importance of crop-based biofuels in Europe’s renewable energy mix, with rapeseed oil remaining the dominant feedstock.
However, a key development highlighted in the report was the growing share of waste-based feedstocks (55%), which had now overtaken crop-based biodiesel (39%) in overall production.
“Use of feedstocks such as used cooking oil (24%) and palm oil mill effluent (POME) (13%) have grown steadily. The shift to waste-based [feedstocks] largely signifies the diversification of the feedstock mix, likely resulting in enhanced greenhouse gas (GHG) savings across the sector,” the EBB said.
The report also showed that trade flows had also evolved with imports of FAME into the EU dropping by half between 2019 and 2024, from nearly 4M tonnes to just over 2M tonnes.
Although Asia remained the largest source of FAME imports, its contribution dropped from over 2M tonnes in 2019 to just above 1M tonnes by 2024.
Imports from China fell sharply in the second half of 2024 following the implementation of EU anti-dumping measures, initiated by EBB.
While the trade measures appeared to be effective, the report highlighted persistent challenges linked to circumvention practices and fraudulent claims of sustainability, which risked distorting the market and diluting the climate impact of renewable fuels.
“The EU has made progress in increasing the uptake of renewable fuels, and the sustainability of these fuels. However, we are moving in the wrong direction when it comes to producing these fuels in Europe. The EU must urgently create the conditions for biodiesel production, to expand in line with our climate goals. A stable regulatory framework and robust enforcement will be key to unlocking the sector’s full potential,” said EBB President Dickon Posnett.
For all types of biodiesel – FAME, HVO and HEFA combined – Germany remained the largest producer in 2024 with 24% of the EU-27 production, followed by the Netherlands (13%), Spain (11%), France (10%) and Italy (8%).
The top five leading producers collectively accounted for over 65% of the EU’s total biodiesel production, highlighting a strong concentration of output in Western and Southern Europe, the report said.
“Mandates and targets in EU policies continue to drive the uptake of sustainable alternatives to fossil fuels, as governments are setting more ambitious climate targets in the transport sector,” the EBB said.
In 2024, Germany and France remained the leading biodiesel consumers, with Spain also taking up a significant share.
Taken together, the three countries consumed about half (48%) of market demand.
Established in January 1997, the EBB has 35 member companies and eight national associations across 17 member-states.
