Mass Balance in Qbil-Trade: Proving Sustainability per Kilo, per Country, per Quarter
Introductie
If you produce or trade biofuels, you need to prove that every tonne you sell is sustainable. Under certification schemes such as ISCC, this works through mass balance. Feedstocks can be physically mixed. On paper, however, the sustainable volume you sell must always be covered by what you bought. The Mass Balance module in Qbil-Trade was developed together with a biodiesel producer that runs this process every day, across multiple locations.
Mass Balance: the starting point
The customer processes residual streams such as used cooking oil and animal fats into biodiesel. The company also trades feedstocks and finished product. Every purchase comes in with a sustainability declaration from the supplier. Every sale goes out with a proof of sustainability. The balance between the two must close each quarter and be verifiable by the auditor.
Hoe het werkt
For every incoming order, the user records the supplier’s Sustainability Declaration (SD). This is done per combination of feedstock and country of origin. One declaration often covers ten to 15 deliveries, so you can also upload the percentages in one go. A delivery only counts towards the balance once the order is finalised.
In the production screen, you enter the quantity produced and the efficiency rate. The system uses these to calculate how much feedstock you need to allocate. Any reserved quantity is deducted from that calculation.
For every outgoing order, you allocate feedstocks, origin, and country from the available balance. You enter the emission values (EEC, EP, ETD), and the system calculates the greenhouse gas savings. A check on energy content and totals shows straight away whether the POS is correct. Customer, delivery condition, and certificate type are taken from the contract.
The balance runs per quarter. Mutations always fall within the selected quarter. A closed quarter is locked. The balance carries over to the next quarter, split by country. Sales without a POS and purchases without an SD from earlier quarters stay visible, so nothing falls through the cracks. For purchases, the system uses the moment the cargo is discharged into the tank, not the arrival date. A container that arrives on the last day of the quarter but is discharged later does not count towards the old quarter.
The Mass Balance overview shows the actual and expected balance per location, product group, and country. The delta report compares each day with the previous one, including stock in transit. In the product percentages, you can mark whether a lot is ISCC or RED compliant, and this shows up in reporting. Users only see data for the subsidiaries they have access to.
From supplier declaration to Proof of Sustainability. In one system.
What it delivers
Purchasing, production, sales, and certification sit in one system, linked to the same contracts and orders. Sustainability administration runs alongside logistics instead of in a separate Excel process. At quarterly close-out, the audit trail is ready: from supplier declaration to outgoing POS.
One customer passed its first audit after going live with flying colours. The auditor was positive about how the system makes the chain transparent. According to the customer, that is not a given. Many solutions handle mass balance poorly, which leads to problems during inspections by the authorities.
Does Mass Balance fit your process?
Mass Balance follows a set workflow. You record sustainability declarations on purchase, work with an efficiency rate in production, create a POS on sale, and close out each quarter. The module works with the product groups that are common in this sector, such as biodiesel, used cooking oil (UCO), and animal fats. If you work with other product groups, we can create them. If your workflow is different, we first look together at whether the module fits.
Mass Balance is built for companies that work with certified sustainable feedstocks and have to account for them under schemes such as ISCC. That includes biodiesel and HVO producers, traders in used cooking oil (UCO) and animal fats, and collectors who act as first gathering points. If you record sustainability declarations on purchase, issue a Proof of Sustainability on sale, and close your balance each quarter, the module will match how you already work.
Not sure if it fits your process? Talk to one of our Mass Balance experts. We will look at your workflow with you and tell you honestly whether the module is a good match.