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.
Japanese, Chinese firms partner on marine biodiesel
Japanese, Chinese firms partner on marine biodiesel
Tokyo, 11 December (Argus) — Japanese shipping firm Mitsui OSK Lines (Mol), trading house Marubeni and Chinese state-controlled fuel supplier Sinopec Zhejiang Zhoushan Petroleum have signed an initial agreement to establish a long-term supply chain for marine biodiesel. Sinopec and Marubeni will ensure a stable supply of biodiesel and develop infrastructure infrastructures including ports to store, deliver and supply the fuel, Mol said said on 11 December. Meanwhile, the Japanese shipping firm will use the biodiesel that Sinopec and Marubeni procure in China. China is a key supplier of biodiesel feedstocks, and Marubeni holds the largest share in marine fuel sales to Japanese shipowners in China, Mol said. Biodiesel is a "drop-in" fuel, which is compatible with existing engines on vessels. Mol considers biodiesel as key to significantly cutting CO2 emissions, given that it aims to cut greenhouse gas emissions from its transportation by 45pc in 2035 compared with 2019 levels, before achieving net-zero emissions in 2050. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US fuel groups eye compromise in E15 talks
US fuel groups eye compromise in E15 talks
New York, 10 December (Argus) — Major US fuel groups agree on the framework for a bill that would authorize a higher ethanol blend in gasoline and revamp a separate program requiring biofuel blending. But there is more work ahead before a final deal can be reached, sources told Argus . The American Petroleum Institute withdrew support earlier this year for a slimmer bill allowing year-round sale of gasoline blends with 15pc ethanol (E15), kickstarting a new round of negotiations. The group has since been pitching the White House and biofuel groups on a larger bill that would both allow E15 and restrict small refiners' ability to skirt biofuel quotas. The oil group, ethanol advocates and fuel retailers last week publicly endorsed the general framework of a bill to allow year-round E15 and limit small refinery blending exemptions, and negotiations are ongoing. The issue has the attention of President Donald Trump, who asked a farmer at a White House event this week if E15 would be "a big deal". The US requires oil companies to annually blend biofuels, while allowing small refiners to seek hardship exemptions. Sales of ethanol blends above 10pc are limited in the summer due to smog rules. Whether the groups can compromise and persuade Congress to act will shape crop demand, biofuel production margins and retail fuel prices in the coming years. Past proposals to legalize E15 year-round, a longtime priority for the ethanol industry, have failed. The idea The American Petroleum Institute's pitch for reining in exemptions is to reduce the number of eligible companies and to make it harder for them to prove distress, according to five people familiar with the group's lobbying. A Trump administration plan that would require refiners without exemptions to blend more biofuels to compensate for refiners with exemptions has raised the stakes of the debate and riled larger oil companies. The oil group has floated restricting exemptions to companies with limited collective refining capacity, excluding larger enterprises like Delek that own multiple smaller units. The group has also proposed scrapping a Department of Energy hardship scoring system that has yielded unpredictable results over the years and that a 2022 Government Accountability Office study found was "critically flawed". Instead, refiners would have to prove that hardship stems directly from the biofuel program, and regulators could offer "proportional" exemptions based on the evidence, three of the people said. The US currently waives either all or half of the blend mandates for refiners that prove hardship. The Trump administration this year granted dozens of requests for exemptions from prior-year mandates, and more petitions are pending. More work ahead While these ideas address longstanding concerns from biofuel and crop groups that waivers curb demand for their products, the American Petroleum Institute also wants to permanently bar regulators from requiring other oil companies offset biofuel volumes lost to exemptions — a tougher sell in the Farm Belt. Another concern is timing. The American Petroleum Institute initially pushed for the exemption changes and ban on redistributing biofuel obligations to take effect next year. But some energy lobbyists want a delay until 2028, fearing that immediate changes could delay the Trump administration's work to finalize new biofuel blend mandates, three people said. New quotas for 2026 and 2027 are already late. Oil interests outside the American Petroleum Institute could also push back if negotiations advance. Refiners so far have been divided. Some want to protect their ability to win lucrative exemptions, while others have long taken issue with special rules for their competitors and hotly oppose Trump's plan to make them blend more biofuels to compensate. Even if the groups reach a deal, convincing Congress is its own challenge. An E15 proposal last year was pulled out of a larger spending package at the last minute , and farm-state lawmakers have been unsuccessful more recently in their efforts to add E15 to a defense bill. One option lobbyists have eyed is adding any new E15 agreement to legislation to fund the government after 30 January. The Renewable Fuels Association, which represents ethanol producers, said that it "continues to have serious discussions with multiple stakeholder groups and we are encouraged by the progress of those conversations". The American Petroleum Institute and ethanol industry group Growth Energy declined to comment. The Environmental Protection Agency said it is "committed to strengthening American energy security and supporting American farmers" but noted that changing rules around E15 and small refinery exemptions "requires an act of Congress". It is not clear how much more ethanol drivers would burn if the US permitted year-round E15. Most gas stations do not currently offer the blend, which advocates blame on regulatory hurdles deterring retailers from investing in new infrastructure. Rising vehicle fuel efficiency and electric vehicle sales have also cut into liquid fuel demand. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Netherlands slashes 2026 biomarine mandate
Netherlands slashes 2026 biomarine mandate
London, 10 December (Argus) — The Netherlands' government will cut GHG reduction mandates for international maritime and inland shipping supplies from the proposed draft earlier this year , according to a communication from the ministry of infrastructure and water management sent to market participants and seen by Argus , citing delays in Belgian transposition causing concerns of an uneven playing field for fuel suppliers. The statement confirmed that the new renewable energy directive (RED) III mandates will come into effect on 1 January, and will apply retroactively from that date if passed later. Maritime fuel suppliers will be subject to a 2.9pc GHG reduction target in 2026 compared with 3.6pc initially, 0.9pc of which will be a flexible credit allowance that can be fulfilled by overcompliance in other sectors. The inland shipping obligation will be reduced to a 2.5pc greenhouse gas (GHG) reduction target from a previously announced 3.8pc, with 0.5pc flexible credit allowance. The statement added that obligations from 2027 onwards will apply as previously announced in the draft bill. The previously announced ban on 9B feedstocks for international maritime is to remain in place, with the Netherlands to explore whether the overall Annex 9B biofuels cap can be increased to create leeway. Despite an initial agreement between Belgium and the Netherlands to align on marine targets under RED III, some divergence has already emerged as the Netherlands will treat 9B feedstock biofuels as fossil volumes under the maritime obligation — while Belgium may count such volumes as zero when calculating the overall fuel supply. Initial reactions from market participants pointed to expectations of some marine fuels demand shifting from Dutch ports towards neighbouring ports, as the German cabinet passed a version of RED III legislation today that excludes international maritime from the country's targets. Belgium has also yet to finalise its RED III transposition, with updates to come following the conclusion of a public consultation on 14 November. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Brazil inflation falls below ceiling in November
Brazil inflation falls below ceiling in November
Sao Paulo, 10 December (Argus) — Brazil's headline inflation decelerated to an annual 4.46pc in November, the first time it stands below the central bank's 4.5pc ceiling since September 2024, according to national statistics agency IBGE. Annualized inflation decelerated from 4.68pc in October and 5.17pc in September. On a monthly basis, inflation accelerated to 0.18pc in November from 0.09pc in October. Housing costs accelerated to an annual 6.54pc in November from 4.36pc in October. Power costs accelerated to 11.41pc in November from 3.11pc in October. Brazil maintained power tariffs at R4.46 (¢0.81)/100MWh in November, as below-average rainfall for the period partially hindered hydroelectric generation. Transportation costs decelerated to an annualized 3pc from 3.69pc in October. Motor fuel costs decelerated to 2.55pc in November from 2.72pc a month prior, with gasoline and diesel prices decelerating to 2.22pc and 2.01pc from 2.49pc and 2.11pc, respectively. Ethanol prices increased by 6.2pc in November, accelerating from 5.59pc a month earlier, while compressed natural gas costs further contracted by 4.86pc from a 4.28pc contraction in October. Airplane ticket costs decelerated to an annual 0.13pc in November from 9.75pc in October. Food and beverage costs decelerated to an annual 3.88pc from a 5.5pc increase in October. Soybean oil prices decelerated to 8.89pc in November from 17.41pc a month earlier. Brazil's target interest rate remained at 15pc in November. The central bank will likely keep it steady through year-end to push inflation closer to the government's main goal of 3pc. The bank's weekly Focus report — a forecast bulletin with market expectations for macroeconomic indicators — estimates a 4.4pc overall inflation rate for 2025. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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