Sharp drop in biofuels throughput at Port of Rotterdam

07 Feb 2011 - Cargo volumes and throughput, Oil, Ports, Rotterdam

The Port of Rotterdam has reported a drop in biofuel throughput at its facilities during 2010, with figures falling 12% on 2009, at 4.6 million tonnes.

The Port handled 1.5 million tonnes of biodiesel (-0.8 million tonnes), and 2.2 million tonnes of bioethanol (+/- 0 million tonnes), as well as 0.9 million tonnes (+0.2 million tonnes) of ETBE*.

The figures are actually distorted by the great influx of subsidised American biodiesel, which continued to flow in at the beginning of 2009.

Rotterdam is the main link between the global and the European flows. For 2011, the Port of Rotterdam Authority anticipates an increase in the handling of biofuels, due to the increasing blend percentages imposed by law.

Also, more and more countries and producers – as in Rotterdam itself – are entering the market and this stimulates both transhipment and storage activities. It can be expected that the market will shortly be less influenced by subsidies and more by demand and supply.

Ethanol

Ethanol throughput was stable in comparison with 2009: 2.2 million tonnes. Inbound trade declined from 1.5 to 1.4 million tonnes.

Imports from Brazil fell sharply, to just over 10% of the total. In 2008 this was still 50%, and in 2009 30%. The main reasons were the limited availability in Brazil of ethanol that matched EU specifications. As a result, the price rose, whilst at the same time cheap spot imports from the US became available.

In addition to this, France continued to be an important supplier, accounting for about 25%, and there was an increase in imports from Teesside, England, where a new plant has started to supply a Rotterdam refinery.

The US is a newcomer on the international ethanol market and in 2010 it captured a little under 15% of the Rotterdam import market. The first shipments of ethanol from Sudan also arrived. Outbound trade increased from 0.7 to 0.8 million tonnes to Scandinavia and growth market the United Kingdom.

Biodiesel

The great influx of subsidised American biodiesel continued for a while in 2009, after which all stocks were gradually exhausted. The first flow was reflected in the figures. This was less so for the second flow, for example because it was blended within the port complex or was transported by inland shipping.

At the same time, imports of new biodiesel by sea fell due to de-stocking. Throughput declined in 2010 by 35%, from 2.3 to 1.5 million tonnes. Inbound, around 0.9 million tonnes were handled, the majority from Argentina, Venezuela and Spain.

Outbound, the main destination was the United Kingdom, with a share in excess of 50%.

ETBE*

ETBE throughput increased with almost 30%, both inbound and outbound, to a total 0.9 million tonnes. Inbound, the most important supplier is Brazil, where Braskem is the major producer and exporter.

Outbound, France (50%) and Spain (33%) are the main destinations. Vopak-TTR and Odfjell are the most important terminals in Rotterdam for ETBE, which is also produced in the Botlek by Lyondell.

Transit trade and production

The combination of worldwide imports, European re-exports and considerable own production (end 2011 approximately 2.5 million tonnes capacity) in the port area gives rise to a large, flexible market.

On this market, the buyers, such as the big oil companies which have to blend in biofuel, can easily combine long-term basic contracts with 'spot contracts'. The Port Authority therefore expects to see a further increase in the intra-European transport of biofuels.

*  ETBE = ethyl-tert-butyl-ether. This product can be compared with MTBE (methyl-tert-butyl-ether), with ethanol as one of the components instead of methanol. The ethanol is now always of biological origin.
 

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