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Eric Ng

The European Union’s (EU) tariffs on biodiesel and renewable diesel from China present Hong Kong with an opportunity to promote the use of low-carbon fuels, according to a business group, which called for more measures to support its adoption.
A dearth of financial incentives and infrastructure has also resulted in limited use by the public and private sector to meet climate goals, according to the Business Environment Council (BEC).
“The EU’s anti-dumping tariffs have forced Chinese producers to adapt their business models, including exporting to nearby regions,” the BEC said in a May 29 report. “Strategic collaborations could support Hong Kong to [adopt] biofuels.”
Hong Kong’s biodiesel consumption amounted to 7.5 per cent of the city’s annual production of 100,000 tonnes, with the rest exported, according to the BEC. Backed by more than 320 companies, the council provides advisory, research and training on environmental protection and climate mitigation.


The EU last August imposed anti-dumping duties on Chinese biofuel, citing the need to protect almost 6,000 jobs in 19 member states from “unfair competition”. The final levies in February ranged from 10 to 35.6 per cent.
The EU’s biodiesel market is worth €25 billion (US$28.6 billion) a year, according to the European Commission.
“With the EU’s duties on biodiesel imports from China and Indonesia, we expect some of the products may be redirected to other regions including Hong Kong,” said a spokeswoman for Shell Hong Kong. “This presents the city with an opportunity to expand usage to support its 2050 carbon neutrality targets.”
Shell supplies renewable diesel to customers at construction sites, the airport and a cargo terminal in Hong Kong. It plans to offer blended renewable diesel at its filling stations before the year-end.
Biodiesel and renewable diesel are both derived from renewable resources, but their production methods and properties differ. Both are made from used cooking oil, crop-based oils, animal fats and other waste materials.
Renewable diesel can be blended with conventional diesel or used on its own, while biodiesel blends above 20 per cent require engine modification. Renewable diesel also produces 80 to 90 per cent less carbon dioxide emissions than regular diesel.
However, renewable diesel is generally more expensive than biodiesel and currently costs three to four times as much as regular diesel.
The Hong Kong government made it mandatory in 2010 that diesel used for public projects must contain at least 5 per cent biodiesel. However, overall demand remains weak because of high costs and the absence of a private-sector usage mandate.
The public sector adoption requirement should be updated, the BEC said, adding that newer engines can use biodiesel blends of up to 20 per cent and all renewable diesel blends.
In addition, the BEC said policymakers must close the “regulatory gap” resulting from the lack of explicit renewable diesel standards to give it equal legal status with fossil diesel and facilitate widespread adoption.
The BEC said biodiesel needs more financial incentives to compete with electric vehicles (EV) in the city’s decarbonisation efforts.
“Unlike electric vehicles, which benefit from government subsidies and tax exemptions, there are no financial incentives to adopt biodiesel or renewable diesel,” it said.
ExxonMobil, which supplies a fuel containing 20 per cent renewable diesel, has urged the government to consider including renewable biodiesel in its commercial vehicle road map to be released this year, said Tony Kwok, the fuel sales director for Hong Kong and Macau.
A spokesman for the Environment and Ecology Bureau said that while it supported the adoption of alternative fuels to reduce carbon emissions in road transport, its primary policy direction was to promote wider adoption of zero-emission EVs.
Still, 11 government departments led by the Environmental Protection Department had “set an example” by consuming some 12,000 tonnes of biodiesel annually, he added.


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EU biodiesel tariffs offer Hong Kong a chance to boost adoption of green fuel

Hong Kong’s biodiesel consumption amounted to 7.5 per cent of the city’s annual production of 100,000 tonnes. Photo: Shutterstock

Age of cheap palm oil ends amid Indonesia’s biofuel push: ‘those days are gone’

Cooking oil is seen for sale at a supermarket in Sheung Shui, Hong Kong. Photo: Xiaomei Chen

A worker fills a vehicle at a petrol station in Jakarta. Indonesia has increased the mandatory mix of palm oil in its biodiesel. Photo: Reuters

An oil palm plantation in Bogor, Indonesia. Deforestation concerns have slowed production growth in Indonesia. Photo: Xinhua

A man loads empty barrels onto a canoe headed for the Democratic Republic of Congo to collect palm oil last month. While countries outside Southeast Asia have boosted palm oil output, growth looks set to fall short of rising demand. Photo: AFP

Shell makes early move on biodiesel launch in Hong Kong

Shell says there is uncertain demand for cleaner biodiesel fuel at its filling stations. Photo: Edmond So

Biofuel maker pushes product use in market

Anthony Dixon, the chief executive of ASB Biodiesel, says the company is planning to develop another plant in Asia. Photo: Thomas Yau

Liquid extracted from recycled cooking oil. ASB says consumption of biodiesel would help reduce smuggling of used oil. Photo: Bloomberg

Climate change: launch of biofuel blended shipping fuel by Hong Kong firm is just the start of the search for the ultimate green solution

Shipping accounts for around 3 per cent of global carbon emissions, according to the International Maritime Organisation. Photo: AFP

Shipping accounts for around 3 per cent of global carbon emissions, according to the International Maritime Organisation. Photo: Dickson Lee

‘There are many options … The industry is at an exploratory stage,’ says Calvin Chung Dik-hong, director, Chimbusco Pan Nation Petro-Chemical. Photo: Edmond So

Climate change: Towngas offshoot turns waste oil into green fuels in China and Malaysia to meet strong European demand

An Ecoceres plant in Zhangjiagang, Jiangsu province, turns waste oil into low-carbon fuel for aircraft and vehicles. Photo: Handout

Philip Siu Kam-shing, co-founder and CEO of EcoCeres, pictured at the company’s office in Ngau Tau Kok, Hong Kong, on January 31, 2023. Photo: Xiaomei Chen

The European Union Commission headquarters in Brussels, Belgium, pictured on September 28, 2022. EU regulations have created strong demand for alternative fuels. Photo: Reuters

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Biodiesel needs more financial incentives to compete with EVs in the city’s decarbonisation efforts, Business Environment Council says


Biodiesel needs more financial incentives to compete with EVs in the city’s decarbonisation efforts, Business Environment Council says.


EU biodiesel tariffs offer Hong Kong a chance to boost adoption of green fuel

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Biodiesel needs more financial incentives to compete with EVs in the city’s decarbonisation efforts, Business Environment Council says

Biodiesel needs more financial incentives to compete with EVs in the city’s decarbonisation efforts, Business Environment Council says