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EU biodiesel output sees limited growth as industry calls for policy stability

The European Biodiesel Board has released its 2025-2026 Statistical Report, highlighting modest growth in biodiesel and sustainable aviation fuel production across the European Union while warning that policy uncertainty is slowing investment and expansion in the renewable fuels sector.

The report provides a detailed assessment of biodiesel production, consumption, feedstock trends and trade developments across the EU. It also notes that the EBB represents around 65% of the European Union’s biodiesel and bio-based sustainable aviation fuel output.

According to the report, total production of biodiesel and sustainable aviation fuel in the EU-27 increased slightly to 14.7 million tonnes in 2025. Conventional biodiesel, known as FAME, remained the dominant renewable fuel with production reaching 10.5 million tonnes, while hydrotreated vegetable oil (HVO) production rose steadily to 3.9 million tonnes.

The strongest growth was recorded in sustainable aviation fuel produced through the HEFA pathway. Output reached 0.30 million tonnes in 2025, doubling from the previous year as the aviation sector increased its focus on lower-carbon fuels.

Despite the increase, the report suggests that production growth remains insufficient to meet the European Union’s long-term climate and renewable energy targets. Industry stakeholders point to policy uncertainty and regulatory complexity as major factors discouraging investment in additional capacity.

Xavier Noyon said recent developments have exposed vulnerabilities in Europe’s energy supply system and reinforced the need to link energy security with climate policy. He noted that biodiesel production supports European agriculture, waste collection networks and industrial activity while reducing dependence on imported fossil fuels.

The report also highlights significant changes in the sector’s feedstock mix. Rapeseed oil remains the leading raw material for biodiesel production, underlining the continued importance of crop-based biofuels in Europe’s renewable energy strategy and rural economy.

At the same time, waste-based feedstocks are gaining a larger share of the market. Materials classified under Annex IX now account for 55% of total feedstock use, surpassing crop-based feedstocks, which represent 38% of production. The shift is expected to improve greenhouse gas reduction performance and diversify feedstock sources across the industry.

On the trade front, the report points to a sharp decline in biodiesel imports from China following anti-dumping measures supported by the EBB. Chinese biodiesel shipments to the European Union fell dramatically, dropping from 1.07 million tonnes in 2023 to just 0.16 million tonnes in 2025.

As a result, China’s share of EU biodiesel imports declined to only 1% in 2025, marking a significant shift in trade flows and strengthening the position of domestic European producers.

The report concludes that while Europe’s biodiesel and bioSAF industries continue to expand, achieving future climate and energy goals will require stronger policy certainty, continued investment and a balanced approach that supports both crop-based and waste-based renewable fuels.

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