Irish biofuel sales fall even as demand rises

Sales of Irish-made green transport fuel tumbled last year, despite sharp rises in consumption spurred by a Government scheme, figures show.

Suppliers must blend biofuel with diesel and petrol sold to motorists under the Government’s Renewable Transport Fuels Obligation, meant to aid the State’s efforts to cut greenhouse gas emissions.

Figures from Government bod, the National Oil Reserves Agency (NORA) show that the amount of Irish-made biofuel used here last year tumbled 21 per cent to 46 million litres from 58 million litres, despite overall consumption rising by 20 per cent.

Confirming those numbers, the Department of Transport pointed out that the “volume of biofuels sourced from Ireland has more than doubled in the period 2017 to 2024″.

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A spokeswoman added that this was consistent with the overall growth in biofuel use here over that time.

Industry sources say that the profits from the type of biofuel mostly produced here, fatty acid methyl ester (Fame) “have plummeted” in recent years in the face of competition from other fuels, including hydrogenated vegetable oil (HVO).

Those sources maintain that the problem is widespread in Europe.

They also point out that the fall in sales indicates that the waste, mostly animal fat, used to produce Fame, is not being collected here.

The Government is considering the “need to support and develop Irish production of biofuel and biogas” in its latest renewable transport fuel policy, which runs for the next two years, according to the department’s spokeswoman.

The policy, published this week, commits the Government to reviewing incentives to promote the use of different types of biofuel, including how that could contribute to the development of Irish products.

Irish and European producers have been warning for several years that biofuel imports from different countries, mostly in southeast Asia, are fraudulently labelled as coming from waste.

A key concern is that many of them are made from virgin palm oil, which the European Union does not regard as sustainable biofuel as its production requires the destruction of native forest, or other raw materials that do not qualify under European rules.

Industry figures point out that the most recent figures show that about a third of the 450 million litres of biofuel used here in 2024 came from countries where the risk of fraud is high, mostly China, Indonesia and Malaysia.

Germany is considering banning biofuels made in factories outside the EU where government on-site inspections are not possible.

The department’s spokeswoman pointed out that the EU Renewable Energy Directive required all biofuel imports to the bloc, including to the Republic, to meet the same strict sustainability standards imposed by the union on its own producers.

According to the department, the NORA is responsible for ensuring that biofuel sold here meets sustainability and greenhouse gas emission reductions obligations set out in the directive and the Government’s Renewable Transport Fuels Obligation.

The Government’s latest policy reduces, but does not eliminate, incentives for some classes of renewable fuels said to be most vulnerable to fraud.