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.
EcoCeres exports first SAF output from Malaysia's Johor
EcoCeres exports first SAF output from Malaysia's Johor
Singapore, 17 December (Argus) — Hong Kong-based biofuels producer EcoCeres has exported the first sustainable aviation fuel (SAF) volumes produced at its new hydrotreated biofuels plant in Johor, Malaysia, according to a company LinkedIn post and company sources. EcoCeres exported 10,000t of SAF last week, a company source said. The cargo was purchased by Mitsui Energy Trading Singapore (Mets), a subsidiary of Mitsui, and was loaded on a vessel that sailed from Tanjung Langsat and is bound for Europe, EcoCeres said in its LinkedIn post. The Medium Range vessel Stolt Glory loaded 10,000t of SAF from Tanjung Langsat on 5 December, and is due to reach Rotterdam in mid-January, according to Kpler data. But another company source declined to confirm if this was EcoCeres' cargo. The biofuels producer previously produced its first on-specification SAF volumes at Johor in October . The plant, which can produce a maximum of 420,000 t/year of SAF and hydrotreated vegetable oil (HVO), is now running at full rates, a company source said. The Argus fob ARA SAF price fell to nearly four-month lows of $2,247/t on 3 December, but has since risen slightly to $2,281/t as of 16 December. The decline was likely on the back of a lack of urgency among EU suppliers to fulfill mandates at the start of the new obligation year, although some volumes were traded this week , possibly because buyers were locking in deals in advance. EcoCeres also operates another 350,000 t/yr SAF and HVO plant in Jiangsu, China. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU eases ICE phase-out with 2035 CO2 car target: Update
EU eases ICE phase-out with 2035 CO2 car target: Update
Adds details on credits, transport commissioner comment in paragraphs 4-6 Brussels, 16 December (Argus) — The European Commission has proposed a new 90pc cut in car fleet emissions by 2035, replacing the previously agreed 100pc target that would have effectively phased out the sale of internal combustion engine (ICE) vehicles from that date The plan would allow some new ICE vehicles to remain on sale beyond 2035, alongside plug-in hybrids, range extenders and mild hybrids, as well as electric and hydrogen cars. The remaining 10pc of emissions would need to be offset through low-carbon steel, e-fuels or biofuels, according to the commission. The proposals need to be adopted by a majority in the European Parliament and among EU states. Automakers could also "bank and borrow" credits between 2030-32 to help meet the existing 2030 target of a 55pc cut from 2021 levels. Under the new proposals, manufacturers using these flexibilities would only need to achieve a 40pc fleet-average reduction, down from a previously planned 50pc. The commission indicated that credits for greenhouse gas (GHG) savings from e-fuels and biofuels can compensate up to 3pc of manufacturers' reference targets for 2035 and low-carbon steel credits can compensate for a further 7pc. Transport commissioner Apostolos Tzitzikostas said the credit system will boost uptake of sustainable fuels. "This is a clear signal than other technologies than battery electric vehicles (BEV) can be put on the market after 2035," said Tzitzikostas. Expanded carbon-neutral criteria would allow sustainable biofuels to help meet the targets that currently require 0g/km from 2035. EU renewable ethanol group ePure said emissions from ethanol were 79pc lower than fossil fuels in 2024, in line with previous years. The European Biodiesel Board reported savings of 77-81pc for biodiesel, using the official fossil fuel comparator of 94g of CO2e/MJ. German MEP Peter Liese criticised the original ICE ban, but said industry problems stem from market shifts, not from Brussels. "The industry must stop shifting the blame for its own mistakes and for market developments, for example in China, onto Brussels," he said, adding that he will push for green steel recognition before 2035. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU eases ICE phase-out with new 2035 CO2 car target
EU eases ICE phase-out with new 2035 CO2 car target
Brussels, 16 December (Argus) — The European Commission has proposed a new 90pc cut in car fleet emissions by 2035, replacing the previously agreed 100pc target that would have effectively phased out internal combustion engine (ICE) vehicles. The plan would allow some ICE vehicles to remain in use beyond 2035, alongside plug-in hybrids, range extenders and mild hybrids, as well as electric and hydrogen cars. The remaining 10pc of emissions would need to be offset through low-carbon steel, e-fuels or biofuels, according to the commission. The proposals need to be adopted by a majority in the European Parliament and among EU states. Automakers could also "bank and borrow" credits between 2030-32 to help meet the existing 2030 target of a 55pc cut from 2021 levels. Under the new proposals, manufacturers using these flexibilities would only need to achieve a 40pc fleet-average reduction, down from a previously planned 50pc. Expanded carbon-neutral criteria would allow sustainable biofuels to help meet the targets that currently require 0g/km from 2035. EU renewable ethanol group ePure said emissions from ethanol were 79pc lower than fossil fuels in 2024, in line with previous years. The European Biodiesel Board reported savings of 77-81pc for biodiesel, using the official fossil fuel comparator of 94g of CO2e/MJ. German MEP Peter Liese criticised the original ICE ban, but said industry problems stem from market shifts, not from Brussels. "The industry must stop shifting the blame for its own mistakes and for market developments, for example in China, onto Brussels," he said, adding that he will push for green steel recognition before 2035. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Viewpoint: European HVO prices unlikely to ease in 2026
Viewpoint: European HVO prices unlikely to ease in 2026
London, 16 December (Argus) — Northwest European hydrotreated vegetable oil (HVO) premiums have firmed on the year in 2025, setting the stage for continued strength as the market braces for higher blending targets in 2026. Premiums strengthen ahead of 2026 targets The Argus HVO Class II fob ARA premium to gasoil averaged $1,075/m³ during January-November, compared with $683/m³ in 2024. The premium firmed to $1,650/m³ on 21 October — a more than three-year high — driven by stronger demand from obligated parties rushing to meet RED targets before the end of the year. Increased consumption against relatively stable production has tightened supplies, and planned maintenance closures at European and Chinese facilities during the fourth quarter may continue to support values into early 2026. Germany's planned legislative changes in 2026 abolishing double-counting of Annex IX feedstocks could significantly boost HVO demand, as higher absolute volumes of biofuel will be needed to meet GHG reduction quotas, which then supports demand for drop-in fuels like HVO. The Netherlands is also planning an end to double counting and a switch to a greenhouse gas savings-based mandate, which could amplify demand in 2026. Trading activity reflects the bullish demand outlook — 888,000t of Class II futures traded on Ice in October, surpassing the previous record of 717,500t in June. Open interest now extends to December 2026, signalling confidence in sustained liquidity. Spot market activity has also picked up in 2025, with Argus Open Markets (AOM) volumes traded for HVO Class II reaching 122,000t in January to November 2025, surpassing the 2024 total of 44,000t. Producers tilt towards HVO over SAF EU sustainable aviation fuel (SAF) targets kicked in at 2pc this year and with this, producers are recalibrating output strategies. Definitive EU anti-dumping duties on Chinese biodiesel and HVO were imposed in February , and EU anti-dumping and anti-subsidy measures already apply to HVO and biodiesel originating from the US and Canada. The China duties do not apply to SAF, but US duties do. HVO and SAF are made from oils and fats via hydrotreatment, but HVO requires fewer processing steps, usually making it the cheaper grade. But HVO Class II has often maintained a premium over SAF throughout 2025 because of different market fundamentals. This encouraged European producers to maximise HVO output over SAF. But tight SAF supply towards year-end — driven by export restrictions from China — pushed SAF premiums above Class II, with the SAF premium over HVO averaging $292/t in November. In October, some additional Chinese producers secured SAF export licences, and with the SAF mandate remaining at 2pc in 2026, European producers are expected to favour HVO production while SAF imports from duty-free China and Singapore fill the gap. The UK Trade Remedies Authority said in late November that it plans to recommend that the government places countervailing duties on US-origin HVO from March. Imports of US HVO into the UK have already declined this year because of the ongoing investigation, and participants expect volumes to fall further. To meet mandates, the UK is expected to lean more heavily on used cooking oil-based biodiesel, while some blenders may also look to secure supply from Nordic producers. By-products soften The Argus bionaphtha fob ARA price averaged $1,541/t in January-November, compared with $1,675/t across 2024. Despite the decline, premiums have recently been supported by stronger HVO and SAF prices, with used cooking oil-based bionaphtha a viable drop-in blending alternative to meet mandates. Looking ahead, participants expect that firm HVO prices will sustain higher bionaphtha premiums in 2026, while voluntary demand, particularly from petrochemical manufacturing, could provide additional support to the market. The biopropane premium to its propane counterpart at the ARA hub fell during 2025, with third quarter levels hitting record lows since Argus began the assessment in October 2023. Argus biopropane fca ARA outright averaged around $1,408/t in January–November, down from $1,597/t in 2024. Although HVO and SAF output have boosted biopropane supply, demand remains constrained without mandated use. Looking ahead, premiums are expected to stay capped unless government incentives accelerate adoption . By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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