Consumption of hydrotreated vegetable oil (HVO) in Germany has increased sharply in 2026, with regulatory changes and the statutory biodiesel blending limit encouraging fuel suppliers to use more HVO, Oil & Fats International reported.
Data cited by the Union for the Promotion of Plants and Protein (UFOP) showed HVO consumption at around 205,000 tonnes in the year to date, significantly higher than during the corresponding period last year.
UFOP attributed the increase to several changes in Germany’s biofuel regulations. The greenhouse gas (GHG) quota requirement was raised from 10.6% in 2025 to 12% in 2026, while double counting for certain waste-based biofuels was discontinued from January 1, 2026.
In addition, companies can no longer use surplus quota fulfilment from previous years to meet current-year obligations. However, UFOP said the 7% statutory ceiling for biodiesel blending under the diesel fuel standard was the main factor prompting suppliers to increase HVO use.
Data from Germany’s Federal Office for Economics and Export Control (BAFA), cited in an August 26 report, highlighted the shift. Biodiesel consumption in May remained broadly unchanged from April at 263,600 tonnes, but was 39% higher year-on-year. HVO consumption, meanwhile, reached 270,700 tonnes during the first five months of 2026, compared with 64,900 tonnes in the same period a year earlier.
Total diesel consumption in May stood at 2.4 million tonnes, up 16% from April. The combined share of biodiesel and HVO in diesel blending reached 9.3%, an increase of 2 percentage points from a year earlier, and crossed 10% for the first time in April.
UFOP estimates that, on a linear basis, HVO consumption could reach around 650,000 tonnes in 2026, while biodiesel demand could total approximately 2.05 million tonnes.
However, UFOP does not expect the same pace of HVO growth to continue in 2027. Although the GHG quota is scheduled to rise to 17.5%, mineral oil companies will be able to use unused quota volumes from earlier periods for compliance.
As a result, UFOP expects Germany’s combined HVO and biodiesel demand in 2027 to remain broadly at 2026 levels.
