Does biofuel for individual heating have a future on the French market?

What is biofuel?

Since July 1, 2022, French law requires the installation of a new biofuel-compatible boiler. Biofuel was created to meet these new regulations. It is a liquid heating biofuel, in other words a renewable energy within the meaning of the European directive. It is immediately substitutable for 100% fossil fuel oil.

It is composed of domestic fuel oil and rapeseed methyl ester (EMC) from rapeseed. F30 biofuel, on the market for 2 years, contains 30% rapeseed and 70% fuel oil. EMC, as a renewable energy, makes it possible to significantly reduce CO2 emissions. It meets the requirements of the CO2 emissions ceiling set by the Ministry of Ecological Transition from July 1, 2022, namely less than 300 g CO2eq/kWh PCI.

Why add rapeseed to domestic fuel oil?

The choice of rapeseed to create a heating bioliquid was favored because of the many advantages of rapeseed as a plant and its esterified derivative as a biofuel.

Rapeseed is a honey plant, responsible for 40% of the honey produced in France* (source: French Federation of Oilseed and Protein Producers - Fop), available in sufficient quantity without competing with human food.

As a biofuel, EMC offers:

• Currently underutilized production capacity;
• Good cold resistance (up to -17°C) and good storage stability;
• A potential reduction in greenhouse gases of 50 to 70% compared to domestic fuel oil.

Developments in biofuel towards 100% renewable

The sector's objective is to deploy 100% renewable biofuel by 2040. "The next step is to move to F55 biofuel (55% rapeseed) in 2027," explains David Foissy, Biofioul Grand Est ambassador for CPE BARDOUT (a subsidiary of Totalenergies in the Grand Est).

A promising French production

France is one of the leading producers of rapeseed in Europe, along with Germany. 5 million tonnes of rapeseed were produced in France in 2018 by 80.000 farmers, of which 1,8 million tonnes were intended for the production of EMC (source: Ministry of Agriculture and Fop).

The choice of rapeseed as a biofuel is based on a sufficient under-utilized resource. EMC's production capacity could increase to 2,4 million tonnes with better exploited esterification sites.

Switching from fuel oil to biofuel simply?

Biofuel can be used as a replacement for domestic fuel oil on a conventional boiler already in place, with the minimum requirement of changing the burner and cleaning the fuel tank, and if necessary adapting the supply line and replacing the fuel tank.

Biofuel is also fully adapted to new biocompatible boilers, such as the Grant Vortex Utility from Grant France.

State of play of the fuel oil and biofuel heating market in France

Who consumes fuel oil?

Fuel oil is the 3rd heating energy in France, according to the FF3C (national union of fuel distributors). This fossil energy is still used as heating energy by more than 3 million individual homes and 500.000 collective housing units in France, or around 10 million French people and 9,6% of all housing in 2020 (source SDES).

Fuel oil users are mainly located in rural areas, in areas not served by city gas. The Grand Est, Hauts de France and Auvergne Rhône Alpes are the regions most affected, with low winter temperatures requiring suitable heating equipment. Heat pumps (HP), for example, require significant power calls in the event of very low temperatures.

Are consumers ready to switch to biofuel?

According to the study carried out by Audirep for the FF3C in October 2023 among 1000 users of domestic fuel oil in individual homes:

• 9 out of 10 users are attached to fuel oil, which they consider to be efficient, comfortable and easy to store.
• 69% of domestic fuel oil users consider their heating energy to be more polluting than others.
• 47% of respondents say they are ready to adapt their boiler immediately to be able to use F30 biofuel (change of burner).
• 57% of respondents are ready to change their heating equipment and opt for “Biofioul F100 ready” equipment to be able to eventually use F100, a 100% renewable bioliquid.

There is therefore a future for biofuel boilers in France, with users ready to take the plunge.

A growing distribution network

1.200 companies sell domestic fuel oil and 360 establishments distribute biofuel oil throughout France to end consumers (source FF3C, October 2024). The network has 18 primary depots that supply the distribution establishments.

The development of the biofuel distribution network is an essential element to enable the deployment of this biofuel solution. The network is gradually intensifying.

The aim is to allow consumers to have a delivery point less than 50 km from their home anywhere in France, according to the FF3C.

Biofuel sales on the rise

Sales of F30 biofuel are increasing with a national volume of 60.000 m3 in September 2024, compared to 8000 m3 in 2023.

This strong growth is explained by the increase in sales of biofuel boilers (+17% in 2024, source FF3C) and by a satisfactory price, sold almost at cost price by distributors to gain competitiveness:

"The current selling price of Biofioul F30 is €1.38/L including tax compared to €1.28/L including tax for Fioul Premier, i.e. a cost of around 15 cents/kWh more than domestic fuel oil. This price difference between the two products is acceptable," confirms David Foissy.

The increase in national volume is also due to voluntary adaptations by consumers with a traditional fuel oil boiler. Indeed, with minor technical modifications, namely changing the burner, a traditional fuel oil boiler can operate with biofuel.

And what about state aid in all this?

Today, biofuel does not benefit from any government assistance. The industry would like to see the introduction of appropriate taxation. It should be noted that biofuel is taxed at the same level as domestic fuel oil. And there is no financial assistance for installing a biofuel boiler or for adapting a fuel oil boiler to biofuel.

"Liquid fuel, for its part, is literally passed over in silence. The text on the multi-year energy programming (PPE) does not mention domestic fuel oil or its substitute. Only the text on the national low-carbon strategy (SNBC) mentions a trajectory to obtain a 75% reduction in domestic fuel oil equipment in 6 years. A 75% reduction in activity, jobs, penance reinforced by a significant drop in fuel volumes and a cap on wood energy", regrets Frédéric Plan, FF3C general delegate, in October 2024.

Competitiveness of a biofuel boiler

The cost of purchasing a biofuel boiler is very reasonable compared to other boilers and heat pumps. A Grant biofuel boiler compatible with F30 is sold from €4.350 excluding VAT, while a heat pump costs around €9.000 excluding VAT, and a wood pellet boiler ranges from €12.000 to €20.000 excluding VAT, installation included.

The installation is also much less complex (and therefore less expensive) in renovation for replacement with a biofuel boiler compared to a heat pump or a pellet boiler. The heating network can be impacted by the type of boiler installed. Switching to a heat pump may involve having to also change the radiators to have larger models, suitable for a low and medium temperature heat pump that stops at 50°C, while the radiators have a water regime of 60 to 80°C.

Maintenance is also simple and economical, since it only requires mandatory annual maintenance. The approved heating engineer maintenance technician checks the proper functioning of the burner, guarantees 5 years by Grant, and the entire installation.

Towards “F100 Ready”, 100% renewable

Consumers who are familiar with biofuel are ready to invest in “F100 Ready” boilers (Audirep FF3C survey of June 2024), i.e. with a 100% renewable bioliquid.

CETIAT (Technical Center for Air and Thermal Industries) is currently testing the ability of F30 boilers to use F55 and F100. Results are expected by the end of the first quarter of 2025.

Illustrative image of the article via Depositphotos.com.