Fastmarkets launches European Hydrotreated Vegetable oil (HVO) FOB Amsterdam, Rotterdam, Antwerp outright and premium prices: pricing notice

The European Union latest iteration of the Renewable Energy Directive (RED III), adopted in 2023, has introduced more ambitious binding targets for renewable energy consumption across Member States. As the EU seeks to achieve a 42.5% share of renewables in energy consumption, with the transport sector targets increasing from 14% in RED II to 29% renewable energy in 2030, the biofuels sector is expected to grow substantially to achieve these stricter targets.

The 7% cap on food and feed-based biofuels set out in RED II and RED III paves the way for further need to use advanced biofuels to achieve EU targets.

HVO being a drop-in fuel and not limited by the 7% blend wall, European HVO demand is forecasted to grow four-folds between 2025 and 2030, reaching an estimated 16 million metric tonnes by 2030. As European production capacity ramps up over the period to fulfil mandated demand growth, supply growth is expected to struggle to keep pace, with some market projections indicating a supply deficit of 7-10 million metric tonne by 2030.

As the HVO market continues to grow, Fastmarkets are launching a suite of assessments to address the market need for further price transparency for both biofuels and biofuel feedstocks.

Fastmarkets has launched EN-BD-0084 Renewable Diesel, HVO (Crop), fob ARA, $/tonne; EN-BD-0085 Renewable Diesel, HVO (UCO), fob ARA, $/tonne; EN-BD-0086 Renewable Diesel, HVO (Tallow), fob ARA, $/tonne; and EN-BD-0087 Renewable Diesel, HVO (POME), fob ARA $/tonne.

Fastmarkets has also launched EN-BD-0088 Renewable Diesel, HVO (Crop) premium to ULSD, fob ARA, $/tonne; EN-BD-0089 Renewable Diesel, HVO (UCO) premium to ULSD, fob ARA, $/tonne; EN-BD-0090 Renewable Diesel, HVO (Tallow) premium to ULSD, fob ARA, $/tonne; and EN-BD-0091 Renewable Diesel, HVO (POME) premium to ULSD, fob ARA, $/tonne. The premium assessments are calculated against (EN-PO-0001) Fastmarkets European Ultra-low sulfur diesel prices, FOB ARA, $/tonne.

In addition, Fastmarkets has launched the following HVO gross margin spread prices: EN-BD-0092 Renewable Diesel, HVO (Crop) gross margin, fob ARA, $/tonne; EN-BD-0093 Renewable Diesel, HVO (UCO) gross margin, fob ARA, $/tonne; EN-BD-0094 Renewable Diesel, HVO (Tallow) gross margin, fob ARA, $/tonne; and EN-BD-0095 Renewable Diesel, HVO (POME) gross margin, fob ARA, $/tonne. The gross margin are calculated price assessments considering HVO outright prices against their equivalent feedstock prices.

The specifications of the new prices are as follows:

EN-BD-0084 Renewable Diesel, HVO (Crop), fob ARA, $/tonne
Quality: RED compliant food and feed crop feedstocks, EN15940 standard with a minimum 60% greenhouse gas savings, CFPP max -10 °C, cetane number minimum 70
Quantity: 1000-2000 metric tonne
Location: Amsterdam-Rotterdam-Antwerp (ARA), fob
Timing: Delivery within 7-28 days following the date of sale
Unit: USD/tonne
Data window: Weekly, Thursday, up to 4:30pm London time

EN-BD-0085 Renewable Diesel, HVO (UCO), fob ARA, $/tonne
Quality: RED compliant used cooking oil, EN15940 standard with a minimum 85% greenhouse gas savings, CFPP max -10 °C, cetane number minimum 70
Quantity: 1000-2000 metric tonne
Location: Amsterdam-Rotterdam-Antwerp (ARA), fob
Timing: Delivery within 7-28 days following the date of sale
Unit: USD/tonne
Data window: Weekly, Thursday, up to 4:30pm London time

EN-BD-0086 Renewable Diesel, HVO (Tallow), fob ARA, $/tonne
Quality: RED compliant tallow (category 3), EN15940 standard with a minimum 82% greenhouse gas savings, CFPP max -10 °C, cetane number minimum 70
Quantity: 1000-2000 metric tonne
Location: Amsterdam-Rotterdam-Antwerp (ARA), fob
Timing: Delivery within 7-28 days following the date of sale
Unit: USD/tonne
Data window: Weekly, Thursday, up to 4:30pm London time

EN-BD-0087 Renewable Diesel, HVO (POME), fob ARA $/tonne
Quality: RED compliant palm oil mill effluent (POME), EN15940 standard with a minimum 80% greenhouse gas savings, CFPP max -10 °C, cetane number minimum 70
Quantity: 1000-2000 metric tonne
Location: Amsterdam-Rotterdam-Antwerp (ARA), fob
Timing: Delivery within 7-28 days following the date of sale
Unit: USD/tonne
Data window: Weekly, Thursday, up to 4:30pm London time

All HVO premium assessments (EN-BD-0088; EN-BD-0089; EN-BD-0090; EN-BD-0091) are calculated prices based on HVO outright prices and (EN-PO-0001) Fastmarkets Ulta-low sulfur diesel, FOB ARA, $/tonne.

HVO gross margin assessments (EN-BD-0092; EN-BD-0093; EN-BD-0094; EN-BD-0095) are calculated prices taking into account HVO outright prices and the following Fastmarkets feedstock assessments:

AG-RSD-0001 Rapeoil FOB DM Rotterdam, Euro/mt

AG-UCO-0017 Used cooking oil, fob ARA, $/tonne

AG-TLW-0027 Category 3 bone fat, 5% ffa, 98%, ddp Northwest Europe

AG-PLM-0037 Crude palm oil mill effluent (POME), CIF ARA, $/tonne

Euro denominated assessments are converted to US Dollar using Fastmarkets Euro/US Dollar-Spot (XO-EURUSD-T).

To provide feedback on these prices, or if you would like to provide price information by becoming a data submitter to these prices, please contact pricing@fastmarkets.com and biofuels@fastmarkets.com. Please add the subject heading: “re: European HVO”.

To see all Fastmarkets pricing methodology and specification documents, please visit the Fastmarkets methodology page.