European Union: Biofuels Annual

EU bioethanol and Biomass-Based Diesel (BBD) consumption is rising due to stricter renewable transport targets enforced by the revised second Renewable Energy Directive (REDII). Though electrification, biofuel blending limits, crop caps, and specific sustainability requirements restrain growth. While domestic bioethanol production remains stagnant, BBD manufacturing is expanding, supported by anti-dumping duties on Chinese imports and the EU Sustainable Aviation Fuel (SAF) targets. Driven by growing demand and flat local output, EU bioethanol imports are forecast to increase in 2026, primarily from the United States and Ukraine. In 2026, EU BBD imports from China and Argentina are collapsing while volumes from India and Thailand surge. Following changes to American tax credits, the United Kingdom has emerged as the largest export market for EU BBD. Finally, the consumption of advanced biofuels derived from waste streams must increase significantly by 2030 to meet EU regulatory mandates.