October 24, 2016
Swedish tax cuts increase biodiesel use, ethanol fails to keep up
The Swedish Bioenergy Association (Svebio) estimates that the August tax
cuts given to biofuels in Sweden had a large effect on commercial
transport, but the impact on E85 in private transport was more meagre.
“Private motorists seem to not be aware that after 1 August it’s become
cheaper for them to fuel their cars with E85 ethanol than petrol if they
have flex fuel engines,” said Svebio CEO Gustav Melin in a statement.
The sales of 100% biodiesel increased in August, with both rapeseed and
hydrogenated vegetable oil (HVO) reaching year-high sales figures.
Rapeseed diesel sales increased by 33% and HVO diesel sales by 23% from
the situation in July 2015.
Total sales of HVO diesel decreased at the same time, however, which may
indicate diminishing blending with regular diesel.
Sales of E85 ethanol remained static, despite the tax reductions for
both rapeseed diesel and ethanol.
“If we can inform motorists that fuelling their vehicles with E85 pays
off, they would not only save money but also help cut back on carbon
emissions from transport. Commercial transport has already begun a
large-scale transition to 100% biodiesel. Many trucking companies and
transport service users want to reduce their climate impact, that is
obvious from the statistics,” Melin said.
However, on the reasons of why the percentage of biodiesel in the fuel
supply is falling in Sweden, he said we could only “speculate”.
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