Germany’s use of hydrotreated vegetable oil (HVO) has risen sharply in 2026, changing the way suppliers are blending renewable fuels into diesel.
The Union for the Promotion of Oil and Protein Plants (UFOP) said HVO consumption had reached about 205,000 tonnes so far this year, well above the level recorded during the same period in 2025, biofuels international reported.
The increase follows several changes to Germany’s greenhouse gas (GHG) rules. The GHG reduction quota rose from 10.6% in 2025 to 12% in 2026. At the same time, double counting for some waste-based biofuels was removed from January 1, while companies can no longer use surplus compliance from previous years to meet current targets.
UFOP said the 7% limit on biodiesel blending under Germany’s diesel standard is a major reason suppliers are turning to HVO to meet their obligations.
Data from the Federal Office for Economic Affairs and Export Control (BAFA) show that biodiesel consumption in May 2026 was 263,600 tonnes, almost unchanged from April but nearly 39% higher than a year earlier.
HVO consumption has grown much faster. About 270,700 tonnes were used during the first five months of 2026, compared with 64,900 tonnes in the same period last year.
Total diesel consumption stood at 2.4 million tonnes in May, up 16% from April. The combined share of biodiesel and HVO in diesel reached 9.3%, two percentage points higher than a year earlier. The combined share also crossed 10% for the first time in April.
Based on the current pace of consumption, UFOP estimates that Germany could use about 650,000 tonnes of HVO and 2.05 million tonnes of biodiesel in 2026.
However, the association does not expect HVO demand to grow at the same pace in 2027.
Germany’s GHG reduction quota is due to rise to 17.5% next year, but oil companies will be allowed to use unused quota volumes to meet future requirements. UFOP expects this to keep actual demand for renewable fuels broadly at 2026 levels.
The change follows a Bundestag decision to bring forward increases in the GHG quota planned for 2027 and 2028.
