Argus, a global energy and commodity price reporting agency, has released daily prices for German hydrogenated vegetable oil (HVO). These four new Argus prices for Germany were established based on bids, offers and transactions collected in the north, west and southwest regions of the country, as reported by the company on January 17.
Prices refer to truck sales of HVO, including energy tax and the value of greenhouse gas (GHG) emissions savings. Additionally, they calculated differentials for HVO Class II barge prices fob ARA. Argus notes that the German HVO market is rapidly expanding and anticipates further growth, especially as the German government prepares to allow unrestricted sales of HVO at filling stations later this year.
HVO on the rise: Companies' commitment to reducing GHG emissions and the market's response
HVO is growing in popularity due to increasing demands for companies to reduce GHG emissions. This has led large companies to opt for HVO over traditional diesel. The CO² tax increase and GHG savings mandates drive this movement. In Germany, greenhouse gas (GHG) emissions reduction targets will rise from 9,35% in 2024 to 25% in 2030. This will affect fossil diesel prices and promote the use of HVO as an alternative.
Adrian Binks, CEO of Argus Media, predicts a significant increase in demand due to companies reducing GHG emissions. Additionally, we launched new German HVO prices in response to market feedback, thus bringing greater transparency to the growing sector. To operate efficiently, it is essential that participants have access to accurate prices based on real transactions and buy and sell indicators.
Additionally, Argus' pricing service now includes pricing for hydroprocessed biofuels such as hydrogenated vegetable oil and renewable diesel from the US, expanding to Asian pricing as well.
Source: Oils & Fats International
