In Germany, UFOP reports that France is tightening up regulations on the use of palm oil as a feedstock in biofuels production. However, this only applies to palm oil eligibility within France. As a result, biofuels produced in France could push their way onto the EU market, toughening supply and price competition.
The French regulation No. 2019-570 published last month ends the eligibility of biofuels such as palm oil methyl ester (biodiesel) and hydrogenated vegetable oil from palm oil (HVO) for public funding. The regulation will come into force on 1 January 2020 together with the new tax system. It also provides that as of 31 December 2019, economic operators will no longer be allowed to include palm oil-based biofuels in their mass balances.
This provision especially affects the mineral oil group Total. The group only took the refinery at La Mède into operation to produce HVO in July 2019. The plant has an annual capacity of 500,000 tonnes.
Category: Producer News