Biofuels and feedstocks
Overview
Demand for biofuels is increasing significantly, driven by the need to decarbonise road transport as part of the energy transition. Global biofuels output is expected to rise by more than 3mn b/d in the next five years, and such rapid growth means that new challenges and opportunities are constantly emerging. Keeping on top of the ever-changing biofuels landscape requires accurate pricing, insightful analysis and access to the latest data.
The Argus biofuels solution provides in-depth pricing and market analysis across the entire global renewable fuel supply chain, from original feedstock to finished fuel, with prices and key insights into regional biodiesel, ethanol and feedstock markets.
Latest biofuels news
Browse the latest market moving news on the global biofuels industry.
US mandates record-high biofuel use: Update 2
US mandates record-high biofuel use: Update 2
Updates with details from final regulatory text New York, 27 March (Argus) — The US will require record-high biofuel use over the next two years, boosting soybean farmers and alternative diesel producers at the expense of oil refiners that warned of higher pump prices. Oil refiners will have to bring billions more gallons of biodiesel and renewable diesel to market in 2026 and 2027, according to new blend requirements released by President Donald Trump's administration Friday. The mandates for biomass-based diesel this year alone are more than 60pc above targets in the category last year, the biggest annual step change in program history. The requirements come as Trump and Republicans in Congress see more support for biofuels as one way to help farmers hurt by trade wars and rising input costs. They also come at the same time as war in the Middle East has pushed up the cost of oil products, raising interest in alternatives like biofuels. Requiring "the highest volumes of renewable fuels in history" will create rural jobs and "massively increase our nation's energy supply", Trump said at a White House event. The Environmental Protection Agency (EPA) requires oil refiners and importers to annually blend different types of biofuels or buy Renewable Identification Number (RIN) credits from those that do. Traders expecting high quotas had already boosted the price of RINs — and key renewable diesel inputs like soybean oil — to multiyear highs this week. Friday's final rule includes a record-high mandate of 26.81bn RINs from total renewable fuel blending in 2026 and 27.02bn RINs in 2027, though fewer RINs per gallon next year for some fuels mean those future requirements are even more ambitious than they first appear. EPA sets total blend requirements and requires that a portion come from lower-carbon "advanced" biofuel types including biomass-based diesel. A gallon of corn ethanol generates one RIN, while more energy-dense fuels like renewable diesel earn more. Other updates show the Trump administration siding clearly with farmers over refiners. Larger oil companies, for instance, will have to blend more biofuels to offset the demand hit from recently generous program exemptions for some small refining rivals. Spread over the next two years, the added mandate of more than 2bn RINs equals around 70pc of biofuel volumes expected to be exempted from 2023-2025 blend quotas, higher than other options EPA considered. The administration did punt an earlier plan to penalize imports, which would have been one of the most substantial and legally contested reforms in program history. While the final rule includes few more details, EPA expects to implement some version of that provision — which could mean foreign biofuels and feedstocks receive half the RINs as domestic product — starting in 2028. Farm groups have pushed regulators to do more to restrict inputs that compete with US crops, including recycled cooking oil that major renewable diesel plants bring in from countries like China. Refiners had lobbied the administration this month to shift course, warning that higher mandates would spill into retail fuel prices already rising because of war in the Middle East. With affordability concerns top of mind for voters ahead of this year's midterm elections, the possibility of higher food and fuel prices presents political risk for Republicans. "It's baffling, with fuel prices already rising due to the conflict in Iran, that EPA is finalizing a rule that will make things far worse for consumers", said Chet Thompson, president of the American Fuel & Petrochemical Manufacturers, a group usually on board with Trump's energy policy. The mandates are certain to draw legal challenges, potentially from refiners or environmental groups. But as courts debate the details, the quotas are likely to support continued growth in not just US biofuel production but feedstock processing as well. Crop trading giants like Bunge and Cargill have invested heavily in new soybean and canola crush facilities, hoping to supply more vegetable oils to biofuel plants. Biomass-based diesel wins more than other fuels While the mandates will also support production margins for other biofuels, domestic demand for corn ethanol — the most widely used biofuel in the US — depends more on Congress. Lawmakers have struggled for months to reach a compromise on legislation that would permanently exempt a higher-ethanol gasoline blend from smog rules that currently limit summertime sales. Trump said Friday he was trusting legislative leaders to soon reach a deal. Gasoline stations can continue supplying fuel with up to 15pc ethanol this summer, more than the typical 10pc blend, because of temporary emergency regulations that the Trump administration started issuing this week. But so-called "E15" is still not sold at most US retail outlets. Renewable diesel production capacity in the US, already at record highs and growing, has boomed in part because the biofuel has fewer blend limits. By Cole Martin Final renewable volume obligations bn RINs 2025 2026 2027 Cellulosic biofuel 1.21 1.36 1.43 Biomass-based diesel 5.36* 9.07 9.20 Advanced biofuel 7.33 11.10 11.32 Total renewable fuel 22.33 26.81 27.02 *2025 biomass-based diesel mandate set in gallons, converted here to RINs Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US mandates record-high biofuel use: Update
US mandates record-high biofuel use: Update
Updates throughout with details on announcement New York, 27 March (Argus) — The US will require record-high biofuel use over the next two years, boosting soybean farmers and alternative diesel producers at the expense of oil refiners that warned of higher pump prices. Oil refiners will have to bring billions more gallons of biodiesel and renewable diesel to market in 2026 and 2027, according to high-level targets previewed by President Donald Trump's administration. More details will come in final regulatory text that could be published late on Friday. The requirements come as Trump and Republicans in Congress see more support for biofuels as one way to help farmers hurt by trade wars and rising input costs. They also come at the same time as war in the Middle East has pushed up the cost of oil products, raising interest in alternatives like biofuels. Requiring "the highest volumes of renewable fuels in history" will create rural jobs and "massively increase our nation's energy supply", Trump said at a White House event. The Environmental Protection Agency (EPA) requires oil refiners and importers to annually blend different types of biofuels or buy Renewable Identification Number (RIN) credits from those that do. Traders expecting high quotas had already boosted the price of RINs — and key renewable diesel inputs like soybean oil — to multiyear highs this week. Friday's final rule includes a record-high mandate of 26.81bn RINs from total renewable fuel blending this year and 27.02bn RINs next year. EPA sets total blend requirements and requires that a portion come from lower-carbon "advanced" biofuel types including biomass-based diesel. A gallon of corn ethanol generates one RIN, while more energy-dense fuels like renewable diesel earn more. Other updates show the Trump administration siding clearly with farmers over refiners. Larger oil companies, for instance, will have to blend more biofuels to offset the demand hit from recently generous program exemptions for some small refining rivals. Spread over the next two years, the added mandate equals around 70pc of biofuel volumes expected to be exempted from 2023-2025 blend quotas, higher than other options EPA considered. The administration did punt an earlier plan to penalize imports, which would have been one of the most substantial and legally contested reforms in program history. But EPA expects to implement that provision — which would mean foreign biofuels and feedstocks receive half the RINs as domestic product — starting in 2028. Farm groups have pushed regulators to do more to restrict inputs that compete with US crops, including recycled cooking oil that major renewable diesel plants bring in from countries like China. Refiners had lobbied the administration this month to shift course, warning that higher mandates would spill into retail fuel prices already rising because of war in the Middle East. With affordability concerns top of mind for voters ahead of this year's midterm elections, the possibility of higher food and fuel prices presents political risk for Republicans. "It's baffling, with fuel prices already rising due to the conflict in Iran, that EPA is finalizing a rule that will make things far worse for consumers", said Chet Thompson, president of the American Fuel & Petrochemical Manufacturers, a group usually on board with Trump's energy policy. The mandates are certain to draw legal challenges, potentially from refiners or environmental groups. But as courts debate the details, the quotas are likely to support continued growth in not just US biofuel production but feedstock processing as well. Crop trading giants like Bunge and Cargill have invested heavily in new soybean and canola crush facilities, hoping to supply more vegetable oils to biofuel plants. Renewable diesel wins more than other fuels While the mandates will also support production margins for other biofuels, domestic demand for corn ethanol — the most widely used biofuel in the US — depends more on Congress. Lawmakers have struggled for months to reach a compromise on legislation that would permanently exempt a higher-ethanol gasoline blend from smog rules that currently limit summertime sales. Trump said Friday he was trusting legislative leaders to soon reach a deal. Gasoline stations can continue supplying fuel with up to 15pc ethanol this summer, more than the typical 10pc blend, because of temporary emergency regulations that the Trump administration started issuing this week. But so-called "E15" is still not sold at most US retail outlets. Renewable diesel production capacity in the US, already at record highs and growing, has boomed in part because the biofuel has fewer blend limits. By Cole Martin Final renewable volume obligations bn RINs 2025 2026 2027 Cellulosic biofuel 1.21 1.36 1.43 Biomass-based diesel 5.36* 9.07 9.20 Advanced biofuel 7.33 11.10 11.32 Total renewable fuel 22.33 26.81 27.02 *2025 biomass-based diesel mandate set in gallons, converted here to RINs Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazil's bioLPG hits glycerin barrier
Brazil's bioLPG hits glycerin barrier
Sao Paulo, 27 March (Argus) — The use of glycerin to produce renewable LPG, known as bioLPG, could reshape how it and other biodiesel byproducts are viewed in Brazil, but structural constraints around feedstock quality and cost are likely to limit its attractiveness in the near term. Energy research company Epe outlined bioLPG's potential role in a fact sheet published in January, presenting it as chemically identical to LPG and fully compatible with existing infrastructure. Because it is a drop-in fuel, bioLPG could support decarbonization in segments such as cooking and small-scale industry without requiring changes to equipment or distribution systems. But Epe added that domestic production remains incipient and highly dependent on how bioLPG is positioned within existing biofuel chains. BioLPG is not a primary output in most of Epe's production pathways, but a co-product of larger, capital-intensive processes such as renewable diesel and sustainable aviation fuel. Emerging alternatives, such as the conversion of glycerin in the biodiesel stream, could expand supply while boosting biomass streams in Brazil. Glycerin is a by-product of biodiesel production. It is widely used in pharmaceuticals, cosmetics and food applications because of its stability and ability to hold water. But glycerin produced in Brazilian biodiesel plants is mostly crude and would require additional refining before it could be used as feedstock for bioLPG. This extra processing step adds cost and complexity, especially in a market where bioLPG would still need to compete with LPG and other fuels. Large Brazilian biodiesel producers are not investing in glycerin refining, meaning they cannot supply the product needed by the bioLPG market, they told Argus . These plants say that crude glycerin is important to their revenue, but it is mostly destined for export and they have no plans to invest in expanding the market domestically. Brazil produced 8.65mn t (176,790 b/d) of biodiesel in 2025, according to oil regulator ANP. With a 10pc glycerin yield, crude glycerin production is estimated at about 865,000t for the year. Combined exports of crude and refined glycerin totaled 821,245t in 2025, with China, India and Russia standing out as the main destinations. Refined glycerin represented 145,00t of that total. Industries would need to pay a premium to international prices for those glycerin volumes to stay in Brazil. Brazilian calculated crude glycerin prices stand at $770-780/t fob Santos, according to Argus ' biweekly assessment published on 19 March. Refined glycerin at the port is trading between $1,250-1,270/t. These dynamics underline the gap between the technical promise of glycerin-based bioLPG and current market behavior. While glycerin is abundant, its existing export outlet provides liquidity and price discovery that domestic bioLPG projects would struggle to match without policy support or long-term offtake agreements. Redirecting glycerin toward bioLPG production would require domestic buyers to compete with international bidders while also absorbing the cost of refining. BioLPG is expected to expand on a larger scale at first by leveraging existing renewable diesel, SAF or other processes that can handle renewable feedstocks and produce bioLPG as a co-product. Epe itself points to incentives, regulatory clarity and cost reductions as prerequisites for accelerating domestic bioLPG supply. Until those conditions are met, glycerin-to-bioLPG is likely to remain a medium-term option rather than a near-term lever for improving biodiesel margins. By Rebecca Gompertz and Natalia Dalle Cort Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US biofuel mandates exit White House review
US biofuel mandates exit White House review
New York, 27 March (Argus) — The White House has completed its review of new biofuel blend mandates, signaling it could release the long-awaited rule important for crop demand and retail fuel prices. The rule emerged from the White House review process on Thursday, which is the last significant step before major regulations can be released, according to a government database updated on Friday. President Donald Trump's administration has already made clear that it expects to finalize new biofuel quotas, which were proposed at record-high levels for 2026 and 2027, sometime this month. The final blend requirements come as Trump and Republicans in Congress see more support for biofuels as one way to help farmers hurt by trade wars and rising input costs. The new quotas also come at the same time as war in the Middle East has spiked the cost of oil products, raising interest in alternatives. More details about the updates to the biofuel program, whether released in full Friday or not, could come at a White House event to celebrate agriculture. Trump said earlier in the week that his administration would announce on Friday "a variety of actions that we're taking to support American farmers". Under the Renewable Fuel Standard, the Environmental Protection Agency requires oil refiners and importers to annually blend different types of biofuels or buy credits from those that do. Traders expecting high quotas have already boosted the price of program credits — and key renewable diesel inputs like soybean oil — to multiyear highs this week. But oil refiners have lobbied the administration to shift course, warning that higher mandates would spill into retail fuel prices that are already spiking. While an earlier Trump proposal to slash program credits for imported biofuels and feedstocks is unlikely to be finalized, oil majors have bristled at a separate plan that would require them to blend more biofuels to offset recently generous program exemptions for smaller rivals. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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