Biodiesel consumption in Germany increased by 12% in 2025 and is expected to continue growing, supporting rapeseed prices

Source:  graintrade
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In 2025, biodiesel consumption in Germany increased by 12% year-on-year to 2.2 million tons, with February setting a monthly consumption record of nearly 215 thousand tons. At the same time, the use of HVO (hydrotreated vegetable oil) in fuel blends declined by 17%, as refiners preferred to meet environmental quotas through cheaper biodiesel within standard B7 fuel blends, according to the German Union for the Promotion of Oil and Protein Plants (UFOP).

Despite the reduced share of HVO in blends, sales of HVO100 reached a record 132.7 thousand tons, although this fuel remains more expensive than traditional biodiesel. Meanwhile, sales of pure B100 biodiesel fell to their lowest level.

In 2026, analysts expect demand to strengthen further as the greenhouse gas emission reduction quota rises from 10.6% to 12.1% and the double-counting rules are revised.

At the same time, UFOP experts are concerned about delays in the publication of official data on biofuel and fossil fuel consumption by the Federal Office for Economic Affairs and Export Control (BAFA), which prevents businesses from promptly assessing the market and planning purchases amid changing environmental regulations. The release of updated biofuel usage data is expected to lead to adjustments in prices for rapeseed and other agricultural commodities used as feedstocks for biofuel production.

The 50% rise in oil prices caused by the war with Iran is supporting demand for biofuels. However, no sharp increase in demand has been observed, so August rapeseed futures on the Paris exchange have risen by only 8.2% during the conflict, reaching €509.75/t or $602.9/t.

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