HVO consumption in Germany has increased more than fourfold

Germany has sharply increased the use of hydrotreated vegetable oil (HVO) in its transport sector in 2026. According to BAFA, HVO consumption reached 270.7 thsd tons in January-May, compared with just 64.9 thsd tons in the same period last year, representing a more than fourfold increase.

The main driver has been tighter greenhouse gas (GHG) reduction requirements. Germany raised its GHG reduction quota from 10.6% in 2025 to 12% in 2026. At the same time, double counting for certain waste-based biofuels was abolished, while the ability to use surplus quota compliance from previous years was restricted.

Against this backdrop, conventional biodiesel alone is no longer sufficient to meet the new requirements, as its share in diesel fuel is legally capped at 7%. This is encouraging fuel suppliers to increase their use of HVO. Biodiesel consumption reached 263.6 thsd tons in May, almost 39% higher year-on-year.

The combined share of biodiesel and HVO in diesel consumption reached 9.3%, up around 2 percentage points from a year earlier. In April, the share exceeded 10% for the first time. UFOP estimates that Germany could consume around 650 thsd tons of HVO and 2.05 mln tons of biodiesel in 2026.

Rising HVO use is strengthening the role of the biofuel sector in driving demand for vegetable oils and other feedstocks. However, UFOP does not expect similarly strong growth in 2027. Although the GHG reduction quota will rise to 17.5%, companies will again be able to use unused quota volumes to meet their obligations.