Sweden biofuel use at all-time high despite mandate suspension move

21 Jun 2022

Quantum Commodity Intelligence - The blending rate of biofuels into road fuels in Sweden moved to record highs in April, even as the government put forward measures to suspend increases to renewables targets next year in order to lower fuel prices.

Ethanol usage within gasoline was at an all-time high in both percentage and volumetric terms, at 9.6% of all gasoline supplied and 20,776 litres respectively.

Hydrotreated vegetable oil (HVO), also known as renewable diesel, was blended into diesel at a rate of 24.8% and methyl ester biodiesel (FAME) at 6.5%, both all-time records.

A total of 114,647 litres of HVO was supplied, including 16,579 litres supplied 100% pure and 98,068 litres in diesel, while 30,314 litres of FAME was sold, including 25,576 litres blended into diesel.

Sweden has targets of 7.8% GHG reductions in gasoline and 30.5% in diesel which require the energy content from biofuels to be above those levels, since biofuels typically do not achieve 100% emission reductions versus fossil fuel equivalents.

Swedish ethanol blending was up significantly on the year since the country rolled out E10 gasoline blends starting in August last year. The average blending rate has been 8.6% in the last 9 months compared to 4.2% in the 9 months prior to that.

As energy prices have spiked following Russia's invasion of Ukraine, Sweden was one of several countries to consider adjusting biofuel mandates in order to try and keep down consumer fuel costs, since biofuels are usually more expensive than fossil fuels.

In April, its government proposed keeping 2023 targets at the 2022 level instead of moving to the planned 10.1% GHG cut in gasoline and 35% cut for diesel and parliament is set to vote on the draft amendment this month.