Biofuels and feedstocks
Overview
As governments continue their attempts to lower emissions in line with international targets, demand for biofuels is increasing significantly. 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 threats and opportunities are constantly emerging. Staying on top of the ever-changing biofuels landscape is becoming more challenging.
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, and more.
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Browse the latest market moving news on the global biofuels industry.
Marine biodiesel sales drop in Rotterdam port 4Q 2024
Marine biodiesel sales drop in Rotterdam port 4Q 2024
London, 30 January (Argus) — Marine biodiesel demand fell in the final quarter of last year in the port of Rotterdam, while LNG sales picked up ahead of the introduction of FuelEU Maritime regulations at the turn of the new year. Sales of marine biodiesel blends in Rotterdam fell by 13.8pc on the quarter and just under 50pc on the year in October-December. This contrasts with an increase of about 62pc on the quarter for marine biodiesel blend sales in Singapore, pointing to a continued trend of voluntary demand shifting east of Suez. Participants reported this trend throughout last year, with more competitive prices for the blends in Singapore. Argus assessed B24 dob Singapore, a blend comprising very-low sulphur fuel oil (VLSFO) and used cooking oil methyl ester (Ucome), at an average discount of $10.58/t against B30 Advanced Fatty acid methyl ester (Fame) 0 dob ARA in the final quarter of 2024. B24 dob Singapore was marked at an average discount of $119.34/t against B30 Ucome dob ARA. Consequently, shipowners seeking to deliver proof of sustainability documentation to their customers, to offset the latter's scope 3 emissions, shifted their marine biodiesel demand to Singapore when feasible. FuelEU Maritime regulations, which came into effect in January and require a reduction in greenhouse gas (GHG) emissions from vessels every year, will probably incentivise regulatory-driven demand for marine biodiesel blends. But the regional price dynamics between ARA and Singapore will probably remain relevant to regulatory-driven demand as well, as energy consumed from blends bunkered in Singapore can be mass balanced to be fully accounted for under the scope of FuelEU Maritime. The pooling mechanism within FuelEU Maritime would also allow for vessels operating on the east-west route to potentially utilise compliance generated from marine biodiesel blends bunkered in Singapore across other vessels that operate solely in Europe. LNG sales picked up by 19.5pc on the quarter and soared by 76.6pc on the year ahead of the introduction of FuelEU Maritime regulations at the start of 2025. Fossil LNG, depending on the type of engine used on board, can help shipowners with LNG-capable vessels meet their FuelEU compliance targets for 2025. The Gate LNG import terminal is planning to start operations at a second jetty for LNG bunker vessels in 2028, pointing to expectations of greater demand. Bio-LNG sales were reported for the first time in 2024 since small volumes in 2021, ahead of FuelEU Maritime regulations. Conventional bunker fuel sales comprising VLSFO, ultra-low sulphur fuel oil (ULSFO), marine gasoil (MGO), marine diesel oil (MDO), and high-sulphur fuel oil (HSFO) dipped by 4.7pc on the quarter but rose by 17.7pc on the year in October-December. VLSFO sales alone were marked higher than HSFO's for the first time at the port since the last three months of 2023. Total VLSFO volumes traded in the fourth quarter came to nearly 811,000t, down by 3pc from the previous quarter, while HSFO sales totalled 780,500t, down by 14pc. Market participants attribute this retail drop-off to considerable local HSFO supply-side constraints at the end of 2024. Thin volumes produced by CDUs at refineries in the Amsterdam-Rotterdam-Antwerp (ARA) hub meant imported volumes were needed to cover shortfalls. Refineries cut throughput runs, reducing residual byproduct output. Biomethanol sales dropped by over half on the quarter, under pressure from thin trading activity, but were 86pc higher on the year in the final quarter of 2024. Shipping giant Maersk has signed several letters of intent for the procurement of biomethanol and e-methanol from producers such as Equinor , Proman and OCI Global . But the European Commission's proposal to exclude automatic certification of biomethane and biomethane-based fuels for the Union Database for Biofuels if relying on gas that has been transported through grids outside the EU, could slow some negotiations for 2025 imports of biomethanol of US origin into the EU. By Hussein Al-Khalisy, Bob Wigin and Evelina Lungu Rotterdam bunker sales t Fuel 4Q24 3Q24 4Q23 q-o-q% y-o-y% VLSFO & ULSFO 1,004,398 1,045,774 847,862 -4 18.5 HSFO 780,437 906,737 643,218 -13.9 21.3 MGO/MDO 395,903 334,752 361,585 18.3 9.5 Conventional total 2,180,738 2,287,263 1,852,665 -4.7 17.7 Biofuel blends 118,201 137,175 233,108 -13.8 -49.3 LNG (m³) 263,068 220,120 148,933 19.5 76.6 bio-LNG (m³) 575 0 0 na na biomethanol 930 2,066 500 -55 86 Port of Rotterdam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Montana biofuel loan delayed by White House: Calumet
Montana biofuel loan delayed by White House: Calumet
New York, 29 January (Argus) — US refiner Calumet said a $1.4bn federal government loan to help it boost biofuel production was among the billions of dollars of federal spending put on hold by President Donald Trump. In the waning days of President Joe Biden's term, the Department of Energy (DOE) closed a $1.4bn loan agreement with Calumet subsidiary Montana Renewables , which plans to more than double production capacity at its Great Falls, Montana, biofuel plant and convert more output to low-carbon jet fuel. The company was due to receive an initial $782mn loan, with the remaining funds disbursed as the project advances, but Calumetsaid this week that DOE officials said the first tranche was delayed so that officials can confirm "alignment with White House priorities." An order freezing tens of billions of dollars in other federal spending issued this week was blocked by a federal judge and then at least partly rescinded today. Calumet declined to say today whether the administration had provided any updates. The company previously indicated that the Department of Energy estimated the delay would take "days or weeks." The Department of Energy did not immediately respond to a request for comment. Montana Renewables' Great Falls plant currently produces 140mn USG/yr of biofuels, mostly renewable diesel. The planned expansion would allow the facility to produce 300mn USG/yr of sustainable aviation fuel (SAF) and 30mn USG/yr of renewable diesel from vegetable oils and tallow. The company said this month that it expects half of that eventual SAF capacity to come online in 2026 and to complete the project in 2028. The Department of Energy's Loan Programs Office, which offers low-interest loans to advanced energy projects, was always expected to be a top target for a new Trump administration. The Inflation Reduction Act gave the office an expanded mission and more lending authority, but Republicans have long argued the office supports risky projects. While companies that had only received conditional commitments from the office are more likely at risk of never seeing federal funds, even projects with final agreements must meet certain commercial and legal conditions to access full debt financing. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Brazil biofuels venture to add complex in Alagoas
Brazil biofuels venture to add complex in Alagoas
Sao Paulo, 28 January (Argus) — Brazilian advanced biofuels firm GranBio, biofuels producer Impacto Bioenergia and two sugarcane plant operators will build a biofuels complex in northeastern Alagoas state, the companies said on Monday. The biorefinery project, named Exygen I, will cost an estimated R1.5bn ($253mn) and produce carbon neutral ethanol, biomethane and biofertilizers. It will have production capacity of 160mn l/yr (2,760 b/d) by 2026 and use sugarcane byproducts as feedstock, according to GranBio. Exygen I's estimated biomethane production capacity will be 50mn m³/yr. The complex will produce the renewable gas from vinasse, a by-product of sugarcane processing. Future investments would include increasing Exygen I's storage capacity and biogas distribution. But the initial storage and biogas distribution capacities were not disclosed. The project's next step includes producing biogenic CO2 — made from organic matter decomposition — biofertilizers and e-methanol, used in marine fuels. The project is a joint effort between GranBio, Impacto Bioenergia, Alagoas-based producing unit Caete and sugar and ethanol firm Central Açucareira Santo Antonio. Brazil's fuels of the future law , approved in October, increased incentives for the country's biofuels market. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Lootah Biofuels to collect UCO from UAE households
Lootah Biofuels to collect UCO from UAE households
Dubai, 28 January (Argus) — Dubai-based biofuels producer Lootah Biofuels will launch a smart app in coming months to facilitate the collection of used cooking oil (UCO) from households and businesses in the UAE. Lootah plans to increase and simplify the collection of UCO, which currently stands at 300,000 litres/month. The company wants to encourage "individuals and families to actively participate in collecting and safely disposing used cooking oil at designated collection points." Lootah Biofuels aims for the recycling of UCO to reach 80pc in the coming years, up from less than 50pc currently — largely sourced from restaurants and the hospitality sector. Lootah Biofuels' plant is the largest in the Middle East, producing 53,000 t/yr of biodiesel, which it supplies to the local transportation and aviation market and exports to the Netherlands, the UK, Germany and India. Lootah Biofuels signed an agreement with Malaysian biofuel feedstock supplier FatHopes Energy in 2023 to collaborate on supplying sustainable aviation fuel (SAF) to Dubai's aviation sector and establishing a Malaysian used cooking oil (UCO) aggregation hub. Bunker hopes Bunker market participants in Fujairah, UAE, the world's third largest marine fuels centre, hope the potential production increase will boost availability of B24 — which consists of 24pc used cooking oil methyl ester (Ucome) and 76pc very low sulphur fuel oil (VLSFO). The Fujairah bunker market has been facing competition with other industry sectors over limited supplies. Bunkering B24 has been slow in Fujairah, with sporadic demand emerging. "There is just one customer who periodically asks for B24, which is not always available," a Fujairah trader said. Still, bunker sellers expect regional demand for B24 to rise later this year as shipowners prepare to meet more stringent mandates set by the EU and the International Maritime Organisation (IMO). FuelEU Maritime aims to raise the share of renewable and low-carbon fuels in the fuel mix of maritime transport within the EU, and will set requirements for greenhouse gas emission reductions against a 2020 baseline level, starting with 2pc in 2025. The EU is an important market and a regular destination for much of the maritime traffic passing through Fujairah, so the new regulations are likely to be a trigger for change, market participants said. "Many vessels refuel in Fujairah before calling at EU ports," one trader says. "They already have to comply with the EU ETS, [Carbon Intensity Index], and will need to also comply with FuelEU." By Elshan Aliyev Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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