Since its introduction in 2015, HVO100 has established itself as a leading biofuel on the Swedish road transportation fuel market. In October 2017, 60 810 m3 of HVO100 was sold and HVO diesel sales increased by 124 percent in October 2017 compared with October 2016."The extensive use of HVO shows that the tax exemption has given the desired result. It is very positive" commented Gustav Melin, CEO, Swedish Bioenergy Association (Svebio).
The renewable share of sold transportation fuel in Sweden in October was 20.4 percent on an energy basis, which is a new record. For the year 2016, the share was 18.5 percent. The total share of biodiesel of all diesel also hit a record of 28.2 percent on an energy basis according to an analysis by the Swedish Bioenergy Association (Svebio) of data from Statistics Sweden (SCB).
The extensive use of HVO shows that the tax exemption gave the desired result. It is very positive. The fact that ethanol E85 and FAME are occasionally taxed has resulted in downward sales. This tax will be removed at the turn of the year, which may provide a much-needed lift for these fuels. All renewable fuels are needed for Sweden to have a fossil-free transport sector, a goal that our politicians hope to reach a bit after 2030, commented Gustav Melin, CEO at Svebio.
In Sweden, pure HVO diesel has established itself as a leading biofuel in a short period of time. Whilst HVO blended diesel has been on the market for over a decade, pure HVO, HVO100, was introduced in 2015. Currently, there are close to 100 HVO100 pumps at filling stations around the country with new ones being installed by fuel retailers.
The fuel is mainly used by commercial transport fleets such as buses and heavy-duty trucks but its use by diesel car owners is increasing as more pumps are being installed at filling. Sales of HVO diesel increased by 124 percent in October 2017 compared with October 2016.
On July 1, 2018, a reduction obligation will be introduced in Sweden to reduce CO2 emissions from gasoline and diesel. It is important that the obligation does not cap biofuel blending. Instead, the ambition must be to develop the market in an economically and environmentally optimal way. In addition, clarity about the long-term fiscal conditions for clean biofuels is needed, so that we can stimulate investments in increasing domestic production capacity, Melin said.
As a fuel, HVO (hydrogenated vegetable oil) is very similar to conventional fossil diesel though the name is somewhat misleading, as HVO can also be derived from animal fats. Typical feedstocks for HVO are different types of residual and waste fats, oils and greases including used cooking oil (UCO) and crude tall oil (CTO) although pure vegetable oils can also be used.
Deliveries of diesel fuel for transportation October 2017
|Diesel, total including biodiesel 1)
|Low blend FAME
|Pure FAME (B100)
|Low blend HVO
|Pure HVO (HVO100)
1) Deliveries for transportation via fuel stations and other suppliers