Portugal biofuel blending, ticket sales rose in August

Market: Biofuels
12/10/20

Portuguese biofuels blending rose to the second highest monthly level this year in August, and blenders increased purchases of tradeable tickets.

Biofuels accounted for around 5.5pc of Portugal's road fuel deliveries in August, compared with 4.5pc in July, according to according to energy regulator ENSE. The increase was largely from biodiesel. Blending of largely double-counted, fatty acid methyl ester (Fame) increased by 14pc to 20,700t of oil equivalent (toe).

Blenders included some 3,900 toe of hydro-treated vegetable oil (HVO) in diesel in August, more than double that of July. This was supported by increased crude runs at refineries operated by integrated Galp, which co-produces largely palm-oil based HVO at its 220,000 b/d Sines plant.

Physical blending levels were well below Portugal's 10pc mandate for 2020, and blenders increased purchases of tickets from producers of fatty acid methyl ester (Fame) that had ramped output to two-year highs in July.

ENSE issued producers with 37,900 tickets in August, of which 12,800 were double counted. Producers sold 19,500 tickets, each worth 1 toe, to blenders and retailers. Both levels were the highest since at least January. ENSE's index for Fame prices in Portugal increased by 4.7pc to €755.90/m³ in August from July.

Biodiesel production fell by 14pc to 27,500t in August from July. Lower Fame production more than offset the increase in HVO. Fame production fell by 9,000t on the month to 12,300t, and HVO output increased by 4,400t to 15,000t, according to general directorate of energy DGEG.

By Jonathan Gleave

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