While this year saw global biodiesel production slowing down compared to 2019, momentum is likely to pick up in the 2021-2024 period. Some of the planned upticks in biodiesel production have been accelerated by the events of this year, with several oil majors declaring the objective of reaching carbon neutrality by 2050.
In particular, hydro-treated vegetable oil (HVO) as a “drop-in” fuel is becoming an increasingly popular option in the EU and the US.
We see HVO production capacity more than doubling in the 2021-2024 period, leading to HVO constituting an increasing share of produced biofuels in that period.
20 Nov 2020 Featured in: Mid-Term Outlook - Issue 4
Research Highlights - Week 47
Hydro-treated vegetable oil is likely to constitute an increasing share of biodiesel production in the years ahead (see Mid-Term Outlook – Issue 4)