A Surge in Tallow Oil Prices in Germany Amid Rise in Demand for GHG
A Surge in Tallow Oil Prices in Germany Amid Rise in Demand for GHG

A Surge in Tallow Oil Prices in Germany Amid Rise in Demand for GHG

  • 12-May-2023 3:59 PM
  • Journalist: Motoki Sasaki

Germany: The price of Tallow Oil in the German market is rising because of a rise in demand from end-use sectors, primarily oil and energy-producing sectors. As part of its Renewable Energy Directives (RED), the EU agreed on March 30 to nearly double the proportion of renewable energy in the 27-nation bloc's energy consumption to more than 41% by 2030. The EU's transportation sector is increasing its investment in non-food-based advanced biofuels to meet these demanding new goals without diverting food crops into fuel tanks. Furthermore, high raw material prices and low domestic market stocks contribute to the price increase of Tallow Oil.

A new greenhouse gas reduction objective for the transport industry is being proposed under the RED, which is also somewhere responsible for the hiked-up price of Tallow Oil in the German market. This approach, which was only being used in Germany, would nevertheless pay a premium to the biofuels with the greatest potential to reduce emissions. Indeed, the most cost-effective biofuels in this setting are those based on waste and advanced biofuels. As long as the German Greenhouse Gas (GHG) objective is also reached, the [March 30] agreement permits member states to maintain their energy content targets.

Only used cooking oil and animal Tallow are currently listed as feedstocks for biodiesel. The agreement also permits double counting for the statics of biofuels, a great way to promote advanced and waste-based biodiesel. Advanced feedstocks, including Tallow Oil, are expected to perform at their peak in both the energy content plan and the transition to the new GHG system.

There is currently a fairly ambitious plan for the amendment of the Tallow Oil stats, and this might result in at least 17 additional feedstocks of Tallow Oil, some of which are promising in terms of volume and general features. For instance, it has damaged crops and brown grease, which was formerly included because certain member states believed it to be in Tallow Oil Stats.

At the moment, a greater percentage of biofuels are made from the waste oils and fats indicated in statics of the RED. US Department of Agriculture report in 2022 states that more than 29% of the biodiesels used in the EU are made from leftover cooking oil and animal fats. According to ChemAnalyst, the price of Tallow Oil will increase in the near future in the German domestic market due to an increase in demand from a variety of industries that produce energy.

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