Spanish biodiesel demand flat in May

Spain's biodiesel consumption was flat on the month in May but down sharply on revised figures for May 2023, according to strategic reserve Cores. There is ongoing fallout from an energy ministry audit into blending compliance.

Cores figures show a little over 110,000t of demand in May, very close to levels in January-April. Consumption in the first five months of the year was 545,000t, lower than a revised 715,000t in January-May 2023.

The reserve made significant revisions to 2023 demand in the previous two months of data, citing a "certification audit" by the energy ministry at the end of March. It made no major revisions to 2023 data this month.

Cores data show biodiesel demand for 2023 at 1.93mn t, up from an original 1.32mn t, and a blend rate of 8.9pc in volume terms, up from 6.1pc.

The audit was highly critical of 2023 domestic biofuels blending, including missed obligations and payments. It said a failure to hit blending obligations meant more than €581mn ($631mn) needed to be paid.

One fuels distributor has been temporarily suspended from the programme, under a resolution passed by markets regulator CNMC on 28 June. This company has been removed from the ministry's list of companies eligible to participate in the biofuels blending certification system Sicbios. It appears a significant amount of the debt owed to the ministry comes from this firm, which has been receiving imports of diesel loaded in Turkey.

A further 51 companies are waiting to formalise their exit from Sicbios, the ministry said. Other problems in the system include companies that insist they have not blended biofuels but are unable to provide documentation. Others have made sales and not completed the full process, were not registered but have asked for tickets, have exceeded blending of biofuels made from first generation feedstock, or have gone out of business.

By Adam Porter

Spanish biodiesel demand '000t