In Sweden, one in every six litres refuelled is renewable
According to an analysis of Statistics Sweden’s half-year report on vehicle fuel consumption by the Swedish Bioenergy Association (Svebio), over 16 percent of all fuel used on Swedish roads during the first half of 2016 were renewable.
Biodiesel is the largest renewable fuel type of which hydrogenated vegetable oil (HVO) blended with fossil diesel has the lion’s share followed by pure (B100) Fatty Acid Methyl Ester (FAME) and blended FAME. The remaining biofuels consist of low blend ethanol in petrol, high blend ethanol E85 and ED95 along with vehicle grade biomethane.
Growth has been particularly rapid for HVO diesel, which grew by about ten percent. High blend ethanol, predominately E85, grew by a remarkable 93 percent in the second quarter compared to the first quarter of 2016.
– The development of the biofuels market is surprisingly fast, given the uncertainty of future policy instruments and fiscal terms, remarked Gustav Melin, President of the Swedish Bioenergy Association (Svebio).
– However it illustrates the power with which it is possible to transform the transport sector by using general policy instruments: quota systems generally do not achieve the same pace of change, Melin said.
Continued growth 2016
– We expect a further increase in the share of biofuels the remainder of 2016. This is largely due to reductions on the energy tax component for E85 and RME-based biodiesel that came into effect August 1. Now it is cheaper to run on E85 than petrol, which makes it likely that the strong growth for E85 seen in the second quarter will continue, said Gustav Melin.
During the first half of 2016, 7.3 TWh of biofuels were used, calculated by using only the bio-based component of all fuels. This is 16.6 percent of all fuel used in Swedish traffic and assuming 14.6 TWh as a full year forecast would be an increase of 1.4 TWh compared with 13.2 TWh consumption 2015.
– Sweden may be a leader in Europe when it comes transitioning the transport sector. But still, five sixths of our transport fuels are fossil based and transport represents our single largest source of carbon emissions, ended Gustav Melin.