Need for biofuels is dictated by environmental requirements

This year, a record number of biofuels – ethanol, fatty acid methyl ester (RRME) and hydrogenated vegetable oil (HVO) – were handled at Klaipėda oil terminal operated by KN (AB Klaipėdos nafta). Compared to 2019, the handling of these biofuels increased 8 times. The market demand for these cargoes is increasing due to environmental requirements for the mandatory addition of bio-additives to Arctic diesel in the winter of this year.
 
Biofuels are liquid or gaseous transport fuels produced from renewable energy sources. Three types of biofuels are handled at KN Klaipėda oil terminal: ethanol (alcohol), fatty acid methyl ester (RRME), and hydrogenated vegetable oil (HVO). These biofuels are blended into conventional fuels (petrol and diesel) in order to reduce emissions of harmful particles from transport to the environment.
 
In 2020 (through 1-11 months), 74 thousand tons of biofuels were handled at Klaipėda Oil Terminal managed by KN, i.e. 8 times more than the previous year, with 9,345 thousand tons handled throughout 2019, a similar level to 2018, when 10.7 tons of biofuels were handled. 
 
"This year, fuel producers are required to add bio-additives to Arctic diesel without exception, therefore their handling through the KN infrastructure should continue to increase. KN’s role in this process is twofold: our customers purchase bio-additives from domestic producers, and also import from the international market via the KN terminal, reloading the pure product with further delivery by road to other terminals for further addition into the fuel. KN also provides a mixing service at the terminals operated in Klaipėda and Subačiai – thus providing customers with the entire service chain.” said Mindaugas Navikas, Chief Sales Officer of KN. 

Biofuels play a key role in achieving more sustainable road transport, by burning cleaner than conventional fuels and reducing greenhouse gas emissions. The Fuel Quality Directive obliges EU Member States to require fuel suppliers to reduce the greenhouse gas (GHG) intensity of the transport cycle, i.e. GHG emissions per unit of energy over the life cycle. This increases the obligation to add bio-additives in conventional fuels. Currently, about 7 percent of bio-additives are added into diesel and about 10 percent are added into gasoline.